Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — FBR Capital Markets 2009 Fall Investor Conference
35 slides from Shenandoah Telecommunications's conference presentation, Dec 1, 2009
Slide 1: FBR Capital Markets 2009 Fall Investor Conference
FBR Capital Markets 2009 Fall Investor Conference December 1, 2009
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 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 activiti
Slide 4: Agenda
Agenda Introduction and Shentel Overview - Earle MacKenzie - EVP/COO Overview of Wireless Overview of Wireline Overview of Cable Financials - Adele Skolits - CFO 3
Slide 5: Shenandoah Telecommunications Company
Shenandoah Telecommunications Company Wireless Entities Cable Entities Shenandoah Telecommunications Wireline Entities Company Allocation Subsidiary Shenandoah Personal Shenandoah Mobile Shentel Management Shenandoah Cable Shentel Cable Communications Company Company Television Company Company Compa
Slide 6: Business Overview
Business Overview ■ Public company with 4,400+ shareholders u ≈ 70% individual / 30% institutional ■ Sprint PCS Affiliate of Sprint Nextel ■ Profitable ■ Strong growth ■ Healthy balance sheet ■ Continuity of ownership & management ■ Focused business plan 5
Slide 7: Growth Strategy - Capitalize on Core Competencies
Growth Strategy Capitalize on Core Competencies ■ Wireless u Increase penetration in existing PCS footprint u Look for new wireless opportunities in surrounding geographic areas ■ Cable u Focus on smaller less competitive markets u Build clusters to gain operating efficiencies u Upgrade networks t
Slide 8: Segment Overview
Segment Overview 12 Months Ending September 30, 2009 Operating Income Before Depreciation & Revenue by Segment Amortization ﴾OIBDA﴿ by Segment Total External Revenues = $157.5 million 7
Slide 9: Agenda
Agenda Introduction and Shentel Overview Overview of Wireless Overview of Wireline Overview of Cable Financials 8
Slide 10: PCS Overview
PCS Overview ■ One of 2 remaining Sprint Nextel affiliates ■ 2.3 million licensed POPs ■ 2.0 million covered POPs ■ 219k total subscribers u 11.0% penetration of covered POPs ■ 448 CDMA base stations ■ 306 EVDO enabled cell sites u 94% EVDO covered POPs ■ $41,000 Estimated Average household income 9
Slide 11: Key Operational Metrics - PCS
Key Operational Metrics - PCS Period Ending Retail Subscribers ﴾000s﴿ Number of Cell Sites EVDO Sites Non-EVDO Sites Churn ﴾%﴿ 10
Slide 12: Attractive Service Revenue Growth - PCS
Attractive Service Revenue Growth - PCS 12 Months Ending Gross Billed PCS Revenue ﴾$ millions﴿ 1 15.6% CAGR 1 Before credits and fees 11
Slide 13: PCS Revenues
PCS Revenues 12 Months Ending Billed Revenue ﴾$ millions﴿ Up 10.7% Bad Debt Management Fee Service Fee Service Credits Net Revenue 12
Slide 14: PCS Revenue per Subscriber
PCS Revenue per Subscriber Period Ending Gross Billed Revenue per Subscriber 1 Voice Data 1 Before credits and fees 13
Slide 15: Wireless Segment
Wireless Segment 12 Months Ending Reported Revenue ﴾$ millions﴿ OIBDA ﴾$ millions﴿ 16.8% CAGR 14
Slide 16: Capital Expenditures - Wireless
Capital Expenditures - Wireless 12 Months Ending Capital Expenditures by Category ﴾$ millions﴿ Coverage Other Capacity EVDO Mobile (Towers) # Cell Sites 332 346 411 475 % Covered POPs 77% 79% 85% 88% # EVDO Sites 0 52 211 336 % POPs Covered N/A 27% 86% 94% 15
Slide 17: Agenda
Agenda Introduction and Shentel Overview Overview of Wireless Overview of Wireline Overview of Cable Financials 16
Slide 18: Wireline Customers
Wireline Customers 12 Months Ending September 30, 2009 ■ 23.5k LEC access lines ■ One FTTH community in service outside of LEC area ■ Acquisition of North River Telephone closed November ■ Fiber Network 2nd u Route miles: 784 u 1.0k access lines ■ 10.5k DSL subscribers ■ 3.8k dialup Internet subscr
Slide 19: Wireline Customers
Wireline Customers 12 Months Ending Access lines ﴾000s﴿ Internet Customers ﴾000s﴿ 1 2 2.5% CAGR 1 DSL only available within LEC area 2 Dial-up offered inside and outside the LEC area 18
Slide 20: Wireline Overview
Wireline Overview 12 Months Ending Revenue ﴾$ millions﴿ OIBDA ﴾$ millions﴿ 19
Slide 21: Agenda
Agenda Introduction and Shentel Overview Overview of PCS Overview of Wireline Overview of Cable Financials 20
Slide 22: Cable TV Overview
Cable TV Overview ■ Complimentary ﴾with LEC business﴿ u 15k Homes Passed u 7.9k Video Subscribers ■ Offensive positioning ﴾Outside ILEC﴿ u 44k Homes Passed u 16.2k Video and 1.6k Internet Subscribers ■ All twoway by mid 2010 21
Slide 23: Cable TV
Cable TV 12 Months Ending RGUs ﴾000s﴿ Revenue ﴾$ millions﴿ Internet 2 Basic Digital 1 OIBDA ﴾$ millions﴿ 1 1 1 Includes Rapid Communications acquisition - December 2008 2 Only includes internet for areas outside ILEC service area 22
Slide 24: Agenda
Agenda Introduction and Shentel Overview Overview of PCS Overview of Wireline Overview of Cable Financials - Adele Skolits - CFO 23
Slide 25: Key Financial Results - Continuing Operations
Key Financial Results - Continuing Operations1 12 Months Ending Net Income from Continuing Operations Revenue ﴾$ millions﴿ ﴾$ millions﴿ Wireless Cable Wireline 10.7% CAGR 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated. 24
Slide 26: Key Financial Results - Continuing Operations
Key Financial Results - Continuing Operations1 12 Months Ending Operating Income Before Depreciation & Operating Income ﴾$ millions﴿ Amortization ﴾$ millions﴿ 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated. 25
Slide 27: Key Financial Results - Consolidated
Key Financial Results - Consolidated 12 Months Ending Earnings Per Share Earnings Per Share Continuing Operations 1 Net Income 2 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated. 2 Includes $10.7 million write down of Converged Service Bu
Slide 28: Total Capex
Total Capex 12 Months Ending Capital Expenditures by Segment ﴾$ millions﴿ Cable Wireline Wireless 27
Slide 29: Q&A
<” SHENTEL Q&A 28
Slide 30: Appendix
<” SHENTEL Appendix
Slide 31: Non-GAAP Financial Measure - Billed Revenue per Subscriber
Non NonGAAP Financial Measure Billed Revenue per Subscriber Period Ending 30
Slide 32: Non-GAAP Financial Measure - OIBDA (9/30/2009)
Non NonGAAP Financial Measure OIBDA 12 Months Ended 9/30/2009 Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $39,724 $12,758 ($4,296) ($4,130) $43,876 Depreciation and amortization 19,669 8,502 2,979 332 31,482 OIBDA $59,393 $21,080 ($1,317) ($3,798) $75,358 31
Slide 33: Non-GAAP Financial Measure - OIBDA (9/30/2008)
Non NonGAAP Financial Measure OIBDA 12 Months Ended 9/30/2008 Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $34,834 $14,121 ($1,045) ($5,130) $42,780 Depreciation and amortization 17,184 6,988 1,042 299 25,513 OIBDA $52,018 $21,109 ($3) ($4,831) $68,293 32
Slide 34: Non-GAAP Financial Measure - OIBDA (9/30/2007)
Non NonGAAP Financial Measure OIBDA 12 Months Ended 9/30/2007 Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $27,384 $14,291 ($1,497) ($5,247) $34,931 Depreciation and amortization 16,188 6,030 1,060 240 23,518 OIBDA $43,572 $20,321 ($437) ($5,007) $58,449 33
Slide 35: FBR Capital Markets 2009 Fall Investor Conference
FBR Capital Markets 2009 Fall Investor Conference December 1, 2009
Shenandoah Telecommunications Company — FBR Capital Markets 2009 Fall Investor Conference on 6ix