Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q2 2011 Earnings Presentation
28 slides from Shenandoah Telecommunications's earnings presentation, Aug 8, 2011
Slide 1: 2Q 2011 Earnings Conference Call
2Q 2011 Earnings Conference Call August 8, 2011 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: Wireless Highlights
PCS Customers (000s) Wireless Highlights q Prepaid - Q2’11 net additions of 11,089 and 91,332 prepaid subs at q Postpaid Churn improves - Q2’11 churn of 1.6% compared to 1.7% for Q2’10 and 1.8% for Q1’11
Slide 6: Cable Highlights
Cable Highlights q Growth u Total Cable RGUs 131 thousand at end of Q2 2011 q Triple Play u Gains in digital video, high-speed Internet, and voice services q Cable Upgrades u Former JetBroadband markets are approximately 10% complete q Sales Momentum u 2Q 2011 net RGU additions of 310, net of tempor
Slide 7: 2011 Financial Highlights
Net Income (in millions) Net Income from Continuing Operations (in millions) 2011 Financial Highlights q 2010 Pension Expense - 2Q’10 is net of $2.1 million of after-tax pension settlement q Depreciation and Amortization Expense - Increased $3.4 million, after tax, due to cable and prepaid sub acqui
Slide 8: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance
Slide 9: Profitability: Adjusted OIBDA
Adjusted OIBDA ($ millions) Profitability
Slide 10: Adjusted OIBDA by Segment
0 SHENTEL Operating Income Depreciation and Amortization OIBDA Share Based Compensation Pension settlements/curtailments Acquisition Costs Adjusted OIBDA Wireless Cable Wireline Q210 Q2'11, Q2'10 Q2'11 Q2'10 Q2'11 $ 9.9 $104 $(37) $(49) $ 26 $ 34 5.3 6.1 1.2 6.1 19 2.2 15.2 16.5 (2.5) 12 45 5.6 0.1
Slide 11: Wireless Segment - Change in Adjusted OIBDA Q2'10 vs. Q2'11
Wireless Segment - Change in Adjusted OIBDA Q2’10 vs. Q2’11
Slide 12: Cable Segment - Change in Adjusted OIBDA Q2'10 vs. Q2'11
Cable Segment - Change in Adjusted OIBDA Q2’10 vs. Q2’11
Slide 13: Wireline Segment - Change in Adjusted OIBDA Q2'10 vs. Q2'11
Wireline Segment - Change in Adjusted OIBDA Q2’10 vs. Q2’11
Slide 14: Earle MacKenzie, EVP and COO
Earle MacKenzie EVP and COO
Slide 15: PCS Postpaid Customers (000s)
PCS Postpaid Customers (000s) Key Operational Results - Wireless
Slide 16: Gross Additions - Postpaid, Net Additions - Postpaid
Gross Additions - Postpaid Net Additions - Postpaid Key Operational Results - Wireless n Q2 2011 net adds of 3,037, a 4% increase over Q2 2010 n Q2 2011 churn of 1.6% improved from 1.7% in Q2
Slide 17: Gross Billed Revenue per Postpaid User - Data & Voice
Gross Billed Revenue per Postpaid User - Data & Voice 1 Key Operational Results - PCS 1 - Before Service credits, bad debt, Sprint Nextel fees.
Slide 18: Gross Billed Revenues - Postpaid ($ millions)
Gross Billed Revenues - Postpaid ($ millions) PCS Revenues $37.2 $41.0 *-The Net Service Fee percentage increased from 8.8% to 12% effective 6/1/10
Slide 19: Postpaid PCS Customers Top Picks Q2 2011
Postpaid PCS Customers Top Picks Q2 2011 n Top Service Plans - 75% of Gross Adds u Everything Data Family 1500 - 52% u Everything 450 - 17% u Everything Messaging Family 1500 - 6% n Top Devices - New Activations - All Channels u LG Optimus 22% u HTC EVO 4G 15% u LG Rumor Touch 9% u Sanyo Vero 7% u S
Slide 20: PCS Prepaid Statistics: Gross Additions and Cumulative Customers
Gross Additions (000s) Cumulative Customers PCS Prepaid Statistics 6/30/11 91,332 3/31/11 80,243 12/31/10 66,956 9/30/10 56,181 7/1/10 49,885
Slide 21: PCS Prepaid Statistics: Churn and Average Gross Billed Revenue
Churn % Average Gross Billed Revenue PCS Prepaid Statistics
Slide 22: Key Operational Results - Wireline
Access lines (000s) Internet Customers (000s) Key Operational Results - Wireline n Modest access line loss of 2% in past 12 months n Continued broadband penetration in LEC area to 52% n 5% growth in DSL customers since 6/30/10, offsetting access line losses to keep total connections at 35.7 thousand
Slide 23: Cable Customers and RGUs per Customer
120,000 131,010 100,000 80,000 60,000 40,000 87,080| September 2010 70,430 Customers RGU's/Customer 170 December 2010 74,178 1B March 2011 74,657 175 June 2011 73,930 17 = Voice m High Speed Internet ™ Video
Slide 24: Key Operational Results - Cable
Key Operational Results - Cable Note : Video homes passed includes 16K homes located in Shenandoah County, VA, where internet and voice services are not available from the cable company.
Slide 25: Capex Spending - Investing in the Future
Capex Spending $13.5 Investing in the Future n Increased planned Wireless spending for 2011 EVDO growth n Upgrade of Jet Network is approximately 10% complete n All Virginia systems upgrades projected to be completed in n West Virginia and Maryland systems upgrades to be completed in 2012
Slide 26: Shentel
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Slide 27: Shentel
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Slide 28: Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber
Dollars in thousands (except subscribers and revenue per subscriber) 2Q 2010 2Q 2011 Gross billed revenue Wireless segment total operating revenues $ 30,031 $ 37,534 Equipment revenue (1,287) (1,059) Tower Lease Revenue (2,006) (2,198) Prepaid Net Service Revenues (5,304) Other revenue (474) (470) W
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