Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Investor Presentation (March 2022)
23 slides from Shenandoah Telecommunications's investor presentation, March 2022
Slide 1: Shenandoah Telecommunications Company March 2022
NASDAQ: SHEN Shenandoah Telecommunications Company March 2022
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: Experienced team leading successful innovation
Experienced team leading successful innovation REVENUE BY SERVICE OF F ERING S HE NTE L 4. 0 (~ 2026) DUA L I NCUM B E NT CA B L E / T E L CO / O T HE R I NCUM B E NT CA B L E CO M M E RCI A L FI B E R 3% T O WE RS 38% FT T H (G L O FI B E R) 4% WI RE L E S S * 12% S HE NTE L 3. 0 (2020) 43% SHENTE
Slide 4: Integrated fiber, cable and fixed wireless broadband network
Integrated fiber, cable and fixed wireless broadband network 4
Slide 5: Unique network platform with high growth potential
Unique network platform with high growth potential Government Grant Opportunities Greenfield fiber overbuilder Greenfield fixed wireless Greenfield hybrid fiber / Shentel position Incumbent cable broadband overbuilder fixed wireless provider Higher density tier III / IV Market type Mostly rural Low
Slide 6: Broadband network rapidly becoming fiber dominant
Broadband network rapidly becoming fiber dominant Broadband Data Homes and Businesses Passed 6
Slide 7: Strong broadband data net additions
Strong broadband data net additions Broadband Data Net Additions 7
Slide 8: Glo Fiber metrics consistent with investment thesis
Glo Fiber metrics consistent with investment thesis Revenue Generating Units (RGUs in 000s) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 8
Slide 9: Vintage Glo Fiber penetration
Vintage Glo Fiber penetration Vintage Glo Fiber Penetration 32.2%1 23.7%1 21.6% 1 13.7%1 6.4%1 Passings released to sales 15,377 10,848 5,828 8,434 1,777 Q uarter launched # of months after quarte r launched 1 month 7 months 13 months 19 months 25 months 1 Penetration rates as of 2/4/2022 9
Slide 10: Key Incumbent Cable metrics trending well
Key Incumbent Cable metrics trending well Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 10
Slide 11: High growth diversified commercial fiber business
High growth diversified commercial fiber business P RODUCT OV ERV I EW (% OF COMMERCI AL FI BER REV ENUE) ANNUAL REV ENUE ($m ) • Ethernet • Wave 88% • DIA • Dark Fiber • SIP • Switched 10% • VoIP LD • Managed • Bulk-Video 2% Services • Other MRR BY CUSTOMER TYPE MID-MA RK E T/ E NTE RP RIS E 36% 24
Slide 12: Broadband financial highlights
Broadband financial highlights Revenue (in millions) Adjusted EBITDA (in millions) * 39.4% 36.6% margin margin * Results include Glo/Beam Adj. EBITDA of ($3M) in 2019, ($5M) in 2020 and ($7M) in 2021. 12
Slide 13: Tower financial highlights
Tower financial highlights Revenue (in millions) Adjusted EBITDA (in millions) margin margin margin 13
Slide 14: Proven track record of strong growth
Proven track record of strong growth Revenue (in millions) Adjusted EBITDA (in millions) Consolidated revenue includes elimination of intercompany activity. 14
Slide 15: Investing for a Fiber First future
Investing for a Fiber First future Capex Spending ($ in millions) $165 - $175 $13 - $18 $40 - $45 15
Slide 16: Strong liquidity & balance sheet
Strong liquidity & balance sheet Liquidity (in millions) • No outstanding debt currently • Will start to draw on delay draw term loans in 2022 • Expect peak net leverage of 2.9x in 2024 • Significant financial flexibility for upsizing the Glo Fiber expansion or M&A 16
Slide 17: Well Positioned for Industry Leading Growth
Well Positioned for Industry Leading Growth LEADING REGIONAL INCUMBENT CABLE PROVIDER P ROV E N GREENFIELD FTTH E XP A NS ION PLATFORM UNDER LEVERED W ITH STRONG LIQUIDITY LARGE, UNTA PPED COMMERCI AL FI BER OP P ORTUNITY S IGNIFICA NT LONG TE RM GROW TH P OTE NTIA L EXPERI ENCED MANAGEMENT TE A M 1
Slide 18: Q&A
AXSHENTEL Q&A
Slide 19: Appendix
AXSHENTEL Appendix
Slide 20: 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 21: 2021 & 2020 Adjusted EBITDA by Segment
2021 & 2020 Adjusted EBITDA by Segment 21
Slide 22: 2019 Adjusted EBITDA by Segment
2019 Adjusted EBITDA by Segment Year Ended December 31, 2019 Corporate & (in thousands) Broadband Tower Eliminations Consolidated Net Income $ 41,797 $ 6,295 $ (46,160) $ 1,932 D&A 38,566 1,976 6,244 46,786 Other expense (income), net 177 0 (3,457) (3,280) Income tax expense (benefit) 0 0 6 6 EBITDA
Slide 23: Broadband Average Revenue per User (ARPU)
Broadband Average Revenue per User (ARPU) Incumbent Cable 2019 2020 2021 Data Residential & SMB Revenue ($000’s) $75,604 $85,127 $97,848 Average Revenue Generating Units 80,035 90,983 103,216 Average Revenue per User (ARPU) $78.72 $77.97 $79.00 Glo Fiber 2020 2021 Data Residential & SMB Revenue ($00
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