Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q2 2023 Earnings Presentation
24 slides from Shenandoah Telecommunications's earnings presentation, Aug 2, 2023
Slide 1: Q2 2023 Earnings Conference Call
Q2 2023 Earnings Conference Call August 2, 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our business strategy, our prospects and our financial position. These statements can be
Slide 3: Chris French, President and CEO
Chris French President and CEO 3
Slide 4: Accelerating Pace of Construction and Sales
Accelerating Pace of Construction and Sales Glo Fiber Passings Released to Sales Glo Fiber Ending Data Subscribers 63% 92% 4
Slide 5: Jim Volk, SVP of Finance and CFO
Jim Volk SVP of Finance and CFO 5
Slide 6: Broadband Highlights - Second Quarter Results
Broadband Highlights - Second Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) 18.4% 8.6% 35.8% 39.1% margin margin 6
Slide 7: Tower Highlights - Second Quarter Results
Tower Highlights - Second Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) 1.1% 3.7% 62.1% 63.6% margin margin 7
Slide 8: Consolidated Highlights - Second Quarter Results
Consolidated Highlights - Second Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) 21.1% 8.1% Consolidated revenue includes elimination of intercompany activity. 8
Slide 9: Liquidity & Free Cash Flow
Liquidity & Free Cash Flow Liquidity (in millions) Free Cash Flow (in millions) 9
Slide 10: Debt Maturity
Debt Maturity Debt Maturity (in millions) 10
Slide 11: Ed McKay, EVP and COO
XG a Ed McKay EVP and COO
Slide 12: Integrated Fiber and Cable Broadband Network
Integrated Fiber and Cable Broadband Network 12
Slide 13: Broadband - Fiber Construction Metrics
Broadband - Fiber Construction Metrics Glo Fiber Franchise Approved Passings Fiber Passings Released to Sales Government Grant Approved Fiber Passings1 Total Fiber Construction Backlog Passings 1 Q1'23 and Q2'23 grant approved fiber passings exclude 3,000 additional passings to be constructed using
Slide 14: Broadband - Glo Fiber Operating Metrics
Broadband - Glo Fiber Operating Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 14
Slide 15: Vintage Glo Fiber Penetration
Vintage Glo Fiber Penetration Vintage Glo Fiber Penetration1 Avg. Terminal Penetration 38% Passings released 21 17 16 18 19 18 14 14 12 6 6 9 8 4 2 to sales (000's) Quarter launched 1 Homes passed and penetration rates as of 6/30/2023, excluding vacant lots. 15
Slide 16: Broadband - Cable Markets Metrics
Broadband - Cable Markets Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 16
Slide 17: Broadband - Commercial Fiber Metrics
Broadband - Commercial Fiber Metrics MRR & MAR Sales Bookings Installed MRR & MAR1, 2 Backhaul Connections Monthly Compression and Disconnect Churn2 1. MRR = Monthly Recurring Revenue; MAR = Monthly Amortized Revenue 2. Excludes impact of T-Mobile network rationalization 17
Slide 18: Tower - Metrics
Tower - Metrics Towers Tenants 18
Slide 19: Capital Expenditures
Capital Expenditures Capex Spending ($ in millions) $260 - $300 $35 - $45 $170 - $190 $13 - $18 $40 - $45 *2023 Guidance figures are not presented in-scale with Q2'22 and Q2'23 actual figures. 19
Slide 20: Q&A
Q&A AXSHENTEL
Slide 21: Appendix
HENTEL Appendix
Slide 22: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Included in this presentation are certain non-GAAP financial measures that are not determined in accordance with U.S. generally accepted accounting principles. These financial performance measures are not indicative of cash provided or used by operating activities
Slide 23: Adjusted EBITDA by Segment - Quarterly Results
Adjusted EBITDA by Segment - Quarterly Results Three Months Ended June 30, 2023 Corporate & (in thousands) Broadband Tower Eliminations Consolidated Net income (loss) $ 9,613 $ 2,487 $ (10,310) $ 1,790 Depreciation and amortization 15,490 538 341 16,369 Impairment expense 836 — — 836 Other expense (
Slide 24: Broadband - Average Revenue per User (ARPU)
Broadband - Average Revenue per User (ARPU) For the second quarter ended, 2022 2023 Residential & SMB Revenue (000's) Broadband $ 29,568 $ 34,152 Cable Markets $ 26,123 $ 27,172 Glo Fiber Markets $ 3,445 $ 6,980 Video $ 15,210 $ 14,411 Voice $ 2,994 $ 3,054 Discounts, Adjustments, and Other $ 127 $
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