Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Shareholder Meeting (April 2025)
31 slides from Shenandoah Telecommunications's shareholder meeting presentation, Apr 24, 2025
Slide 1: 2025 Shareholder Meeting April 22, 2025
2025 Shareholder Meeting April 22, 2025
Slide 2: Board of Directors
2 Principal Occupation Director Since Age Name Executive Coach and Consultant 2022 60 Victor C. Barnes SVP, GC and Secretary of American Public Education, Inc. 2018 57 Thomas A. Beckett Partner, Energy Capital Partners (ECP) 2024 41 Matthew S. DeNichilo Managing Director, GCM Grosvenor 2024 38 James
Slide 3: Proposals
3 Proposals Election of directors 1. To elect Victor C. Barnes, James F. DiMola and Christopher E. French for a three - year term that will expire at the annual meeting of shareholders in 2028, Matthew S. DeNichilo for a one - year term that will expire in 2026 and Michael A. Rhymes for a two - year
Slide 4: Forward-looking statements
4 This presentation includes “forward - looking statements” within the meaning of Section 27 A of the Securities Act and Section 21 E of the Securities Exchange Act of 1934 , as amended, regarding our business strategy, our prospects and our financial position . These statements can be identified by
Slide 5: Use of Non-GAAP Financial Measures
5 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 activ
Slide 6: Jim Volk, SVP of Finance and CFO
Jim Volk SVP of Finance and CFO
Slide 7: Acquisitions and Dispositions Update
7 Acquisitions and Dispositions Update • Closed on the sale of our Tower portfolio and business on March 28, 2024 • Closed on the acquisition of Horizon Telcom on April 1, 2024 • Completed integration of Horizon’ s six core back - office systems in nine months from closing • Upsized Horizon annual r
Slide 8: Consolidated Highlights - Full Year Results
8 Consolidated Highlights - Full Year Results Adjusted EBITDA (in millions) Revenue (in millions) 29.4% margin 28.8% margin 21.9% 19.7% $177.5 $57.9 $67.0 $42.1 $35.1 $176.9 $269.1 $328.1 29.4% margin 28.8% margin $79.0 $94.6 Residential & SMB – Incumbent Broadband Markets Residential & SMB – Glo Fi
Slide 9: Glo Fiber Revenue and Data RGUs
9 Glo Fiber Revenue (in millions) $57.9 135% CAGR $35.1 $18.3 $8.3 $1.9 2024 2023 2021 2022 2020 Glo Fiber Data RGUs 65,140 99% CAGR 41,710 24,286 11,377 4,158 2024 2023 2021 2022 2020 Glo Fiber Fueling Consolidated Revenue Growth 2024 includes 1,831 acquired Horizon RGUs and 9 months of Horizon Glo
Slide 10: Consolidated Highlights
10 Consolidated Highlights Adjusted EBITDA (in millions) Revenue (in millions) 9% CAGR 18% CAGR Consolidated revenue includes elimination of intercompany activity. 2020 - 2023 include Tower segment results and exclude Horizon results 2024 includes 9 months of Horizon results and exclude Tower segmen
Slide 11: Consolidated Financial Highlights
11 Consolidated Financial Highlights Net Income (Loss) Attributable to Common Shareholder Per Diluted Share Net Income (Loss) Attributable to Common Shareholders 2022 2023 2022 2023 $1 ($32) $7 $222 $8 $190 2023 2024 Discontinued Operations Continuing Operations ($0.59) $0.14 $0.02 $4.13 $0.16 $3.54
Slide 12: Regular Dividend History
12 Regular Dividend History (per Share, Split Adjusted) $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00
Slide 13: Ed McKay, EVP and COO
AXSHENTEL Always connected to you ee Ed McKay ~~ EVP and COO
Slide 14: Integrated Fiber and Broadband Network
14 Integrated Fiber and Broadband Network
Slide 15: Broadband Network: Rapidly Becoming Fiber-Dominant
15 211,120 212,050 215,763 239,041 250,000 75,189 147,479 233,872 346,299 550,000 286,309 359,529 449,635 585,340 800,000+ 2021 2022 2023 2024 2026 Projected Incumbent Broadband Markets Glo Fiber Expansion Markets Broadband Network: Rapidly Becoming Fiber - Dominant Broadband Data Homes and Business
Slide 16: Accelerating Pace of Construction and Sales
1 6 Glo Fiber Data Net Additions 21,599 17,424 52% CAGR 12,909 7,219 4,032 2024 2023 2021 2022 2020 Glo Fiber Passings Released to Sales 96,877 38% CAGR 86,393 72,290 46,537 26,899 2024 2023 2021 2022 2020 Accelerating Pace of Construction and Sales 2024 includes 9 months of Horizon net additions an
Slide 17: Glo Fiber: Metrics Consistent with Investment Thesis
17 Glo Fiber: Metrics Consistent with Investment Thesis Revenue Generating Units (RGUs in 000s) Data Penetration 24 42 65 6 7 31 51 78 2022 2023 2024 Data Video Voice Data Average Revenue per User (ARPU) $81 $76 $73 2024 2023 2022 16.5% 17.8% 18.8% 2022 2023 2024 Data Churn 1.0% 1.0% 1.1% 2024 2023
Slide 18: Vintage Glo Fiber Penetration
Vintage Glo Fiber Penetration Vintage Glo Fiber Penetration 1 launched Expected Average Terminal penetration: 37% 6 9 8 4 2 Passings released to sales (000's) Quarter Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 2020 2021 2022 2023 2024 22 22 25 31 20 21 17 16 18 19 18 14 14 12
Slide 19: Incumbent Broadband: Key Metrics Trending Well
19 Incumbent Broadband 1 : Key Metrics Trending Well Revenue Generating Units (RGUs in 000s) 183 38 36 37 34 39 43 111 110 110 2024 2023 2022 Data Video 190 Voice 184 Data Average Revenue per User (ARPU) $85 $83 $81 2024 2023 2022 Data Penetration 47% 51% 52% 2024 2023 2022 Data Churn 1.6% 1.7% 1.6%
Slide 20: Leader in Broadband Customer Growth among Public Peers
20 - 10% - 5% 0% 5% 10% 15% Source: Public filings for year - end 2024 broadband customers versus year - end 2023, excluding fixed or mobile wireless Excludes Shentel customers added as part of Horizon acquisition Leader in Broadband Customer Growth among Public Peers
Slide 21: Commercial Fiber Metrics
21 Commercial Fiber Metrics Monthly Compression and Churn 2 Installed MRR and MAR 1 MRR & MAR Sales Bookings MRR/MAR Backlog 1. MRR = Monthly Recurring Revenue; MAR = Monthly Amortized Revenue 2. Excludes impact of T - Mobile network rationalization
Slide 22: Investing for a Fiber-First Future
22 Investing for a Fiber - First Future Capex Spending 1 $175 - $190 $35 - $40 $40 - $50 $250 - $280 $299.8 $253.2 1 Net of government grant reimbursements $182.2 $193.7 $175 - $190 $35 - $40 $40 - $50 $57.0 $74.5 $30.3 Incumbent Broadband Markets Commercial Fiber Glo Fiber Expansion Markets
Slide 23: Capital Intensity expected to decline sharply
23 Capital Intensity 1 expected to decline sharply at the end of construction phase 20% - 25% 15% - 25% 20% - 30% 15% - 25% 94% 519% 33% 30% 91% 334% 45% 37% 2 2 2 Capital Intensity 1 1 Capital Intensity = Gross CapEx Less Government Subsidies / Revenue 2 Includes government - subsidized builds in 2
Slide 24: Giving Back to the Communities We Serve
24 Giving Back to the Communities We Serve
Slide 25: Chris French, President and CEO
Chris French President and CEO
Slide 26: Long-Term Growth in Value
1 original share of FMTS stock would have split to 2,880 shares in 2005 and 17,280 shares in 2025 26 Long - Term Growth in Value $114,739 $225,850 $372,643 $598,493 2005 Stock Value 2025 Cumulative Cash Dividends Value of One Original FMTS Share
Slide 27: Questions & Answers
AXSHENTEL Questions & Answers
Slide 28: 2025 Shareholder Meeting April 22, 2025
2025 Shareholder Meeting April 22, 2025
Slide 29: Appendix
Appendix AXSHENTEL
Slide 30: Adjusted EBITDA reconciliation - Full Year Results
30 2020 Year Ended December 31, (in thousands) 2021 2022 2023 2024 $ 1,576 $ 7,929 $ (8,379) $ 8,038 $ (28,357) Net income (loss) from continuing operations 48,703 55,206 68,899 65,471 98,453 Depreciation and amortization - 5,986 5,241 2,552 382 Impairment expense - - - - 15,897 Interest expense (3,
Slide 31: Broadband - Average Revenue per User (ARPU)
31 Broadband - Average Revenue per User (ARPU) Residential and SMB ARPU Year Ended December 31, 2023 2024 Residential and SMB Revenue: $ 139,102 $ 164,984 Broadband Data 108,822 112,852 Incumbent Broadband Markets 30,280 52,132 Glo Fiber Expansion Markets 56,924 58,029 Video 12,203 12,765 Voice 3,75
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