Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q2 2010 Earnings Presentation
26 slides from Shenandoah Telecommunications's earnings presentation, Aug 5, 2010
Slide 1: 2Q 2010 Earnings Conference Call
2Q 2010 Earnings Conference Call August 5, 2010 Exhibit 99.1
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, among other things, our business strategy, our prospects and our financial position. Th
Slide 3: 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 US generally accepted accounting principles. These financial performance measures are not indicative of cash provided or used by operating activities an
Slide 4: Chris French, CEO and President
Chris French CEO and President
Slide 5: 2Q '10 Highlights
2Q ‘10 Highlights q Cable u Acquisitions - Acquisition of Jet Broadband; closed on July 30 th u Sales Momentum - 2Q 2010 net RGU additions of 1,873; RGU growth of 7% u Triple Play - High Speed data now available to 59% and voice to 40% of video homes passed q Wireless u Prepaid - purchased the right
Slide 6: Net Income and Net Income from Continuing Operations
Net Income (in millions) Net Income from Continuing Operations (in millions) 2Q ‘10 Highlights q Net Income - Net income of $4.6 million q Operating results - Net income from continuing operations of $4.5 million q Cost of Pension Closing/Curtailment - $3.8 million before tax and $2.2 million after
Slide 7: 2Q '10 Wireless Highlights
PCS Postpaid Customers (000s) 2Q ’10 Wireless Highlights n Steady Wireless growth - customers up 5% in the last year n Quarterly churn improves - Q2 ‘10 churn of 1.7% compared to 2.1% for Q2 ‘09 and 1.9% for Q1 ’10
Slide 8: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance
Slide 9: Earnings per Share from Continuing Operations
Earnings per Share from Continuing Operations EPS n Solid Earnings- EPS of $.19 in 2Q ’10, the pension impact was $.09
Slide 10: Adjusted OIBDA for the Quarter
Adjusted OIBDA for the Quarter ($ millions) Profitability
Slide 11: OIBDA by segment: Wireless, Wireline, Cable
0” SHENTEL Wireless Wireline Cable 2Q'09 2Q'10 2Q'09 2Q'10 2Q'09 2Q'10 Operating Income $112 $99 $28 $ 26 $ (1.4) $ (3.7) Depreciation and Amortization 5.0 5.3 2.2 19 0.9 11 OIBDA 16.2 15.2 5.0 45 (0.5) (2.6) Share Based Compensation 0.1 0.1 - - - 0.1 Pension settlements/curtailments - 1.0 2.0 0.6 A
Slide 12: New Debt Facility
New Debt Facility n Floating Rate Term Loan Ø Facility size - $189.8 million Ø Interest Rate - Floating at LIBOR + 3.5%, initially; no LIBOR floor Ø Repayment - 5% per annum beginning 4Q’10, increasing to 10% per annum 4Q’11 Ø Covenants - Maintenance n Revolver - $50 million, with $30 million availa
Slide 13: Earle MacKenzie, EVP and COO
Earle MacKenzie EVP and COO
Slide 14: PCS Postpaid Customers
PCS Postpaid Customers (000s) Key Operational Results - Wireless
Slide 15: Gross Additions and Net Additions
Gross Additions Net Additions Key Operational Results - Wireless n Decrease in churn from 2.1% in Q2 ’09 to 1.7% in Q2 ’10 n Small decrease in net adds
Slide 16: Gross Billed Revenue per User - Data & Voice
Gross Billed Revenue per User - Data & Voice 1 Key Operational Results - PCS 1 - Before Service credits, bad debt, Sprint Nextel fees. See reconciliation of Non-GAAP financial measures on slide 24
Slide 17: Gross Billed Revenues
Gross Billed Revenues ($ millions) PCS Revenues $36.0 $37.1 *-Please note the Net Service Fee percentage increased from 8.8% to 12% effective 6/1/10
Slide 18: PCS Customers Top Picks Q2 2010
PCS Customers Top Picks Q2 2010 n Top Service Plans - 55% of Gross Adds u Everything Data Family 1500 - 40% u Everything Messaging Family 1500 - 8% u Everything 450 - 7% n Top Devices - Shentel Controlled Channels u Blackberry 8530 - 16% u Samsung Seek - 9% u Sanyo 2700 - 8% u LG Rumor 2 - 8% u Sams
Slide 19: Number of Cell Sites
Number of Cell Sites Meeting PCS Customer Needs n Reaching end of major expansion in sites and EVDO n Expanded data offering u Over 95% POP’s with EVDO coverage n Future investments success based or maintenance related
Slide 20: Access Lines and Internet Customers
Access lines (000s) Internet Customers (000s) Key Operational Results - Wireline n Modest access line loss n Improved broadband penetration to 49% n 11% growth in DSL customers since 6/30/09
Slide 21: Cable Segment Net RGU Growth
Cable Segment Net RGU Growth* Key Operational Results - Cable n Upgrades continue to result in substantial RGU growth n HSD now available to 82% of homes passed in acquired markets n Voice service launched in Q1, available to 69% of homes passed in acquired markets *- Net RGU Growth excludes 1,754 R
Slide 22: Key Operational Results - Cable
12/31/08 6/30/09 12/31/09 6/30/10 Video Homes Passed 64,365 64,365 56,268 56,395 Penetration 38.9% 38.5% 40.5% 41.2% High-speed Internet Available Homes 19,405 19,405 25,748 33,301 Penetration 5.80% 6.7% 8.10% 11.5% Voice Available Homes - - - 27,914 Penetration n/a n/a n/a 2.9% Key Operational Resu
Slide 23: Capex Spending: Investing in the Future
Capex Spending Investing in the Future n Wireless expansion slows to success- based coverage & capacity adds in n Complete program to increase broadband speeds to 10 MB+ in LEC area n Increased miles and capacity of fiber n Complete upgrade of existing cable systems to 2-way to provide triple play o
Slide 24: Shentel
<” SHENTEL
Slide 25: Shentel
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Slide 26: Non-GAAP Financial Measure - Billed Revenue per Subscriber
Dollars in thousands (except subscribers and revenue per subscriber) 2Q '09 2Q '10 Gross billed revenue Wireless segment total operating revenues $29,060 $30,031 Equipment revenue (1,169) (1,287) Other revenue (2,190) (2,480) Wireless service revenue 25,701 26,264 Service credits 3,310 3,714 Write-o
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