Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Investor Presentation (December 2022)
18 slides from Shenandoah Telecommunications's investor presentation, December 2022
Slide 1: Shenandoah Telecommunications Company December 2022
NASDAQ: SHEN Shenandoah Telecommunications Company December 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: Unique, High Growth Mid-Atlantic Broadband Provider
Unique, High Growth Mid-Atlantic Broadband Provider • Entering Year 2 of Five-Year Growth Plan following transformative sale of wireless segment • Rapidly growing greenfield Fiber-to-the-home (“FTTH”) platform ◦ 131,000 passings and 21,000 customers in 15 Tier 3 / 4 markets1 ◦ $20 million in annual
Slide 4: Integrated Fiber and Cable Broadband Network
Integrated Fiber and Cable Broadband Network 4
Slide 5: Network Evolution to be Fiber Centric
Network Evolution to be Fiber Centric Fiber overbuilder of Greenfield fiber overbuilder Greenfield fiber incumbent Shentel position Incumbent cable Shentel cable Higher density tier III / IV Market type Mostly rural Dense incumbent markets Unserved rural markets Target market dynamic Target Passing
Slide 6: Broadband network rapidly becoming fiber dominant
Broadband network rapidly becoming fiber dominant Broadband Data Homes and Businesses Passed 700,000 535,000 342,741 286,309 237,343 130,912 75,189 28,652 208,691 211,120 211,829 165,000 2020 2021 2022 2027 Projected Docsis HFC Fiber 6
Slide 7: 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) 27 $79 Data Video Voice 3 $74 $74 3 15 2 2 21 6 11 4 2020 2021 2022 YTD 2020 2021 2022 YTD Broadband Data Penetration Broadband Data Churn 16.1% 1.1% 1.1% 15.1%
Slide 8: Vintage Glo Fiber Penetration
Vintage Glo Fiber Penetration Vintage Glo Fiber Penetration1 Passings released 18,389 16,886 11,764 6,047 8,670 1,802 to sales Quarter launched # of months after 3 months 9 months 15 months 21 months 27 months 33 months quarter launched 1 Penetration rates as of 9/30/2022 8
Slide 9: Key Incumbent Cable metrics trending well
Key Incumbent Cable metrics trending well Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Data Video Voice $79 $81 $78 182 187 191 32 33 37 52 48 45 99 106 109 2020 2021 2022 YTD 2020 2021 2022 YTD Broadband Data Penetration Broadband Data Churn 50% 52% 1.6% 1.5% 1.6% 4
Slide 10: Proven track record of strong growth
Proven track record of strong growth Revenue (in millions) Adjusted EBITDA (in millions) 9% CAGR 15% CAGR $263 $73 $56 $66 $245 $19 $12 $11 $11 $221 $18 $17 $84 $87 $80 $245 $228 $204 ($29) ($26) ($35) 2020 2021 2022 YTD Annualized 1 2020 2021 2022 YTD Annualized 1 Broadband Tower Broadband Tower Co
Slide 11: Investing for a Fiber First future
Investing for a Fiber First future Capex Spending ($ in millions) $190 ‐ $210 $160 $14 $121 $145 - $155 $6 $82 $45 $13 $17 $10 - $15 $53 $42 $35 - $40 2020 2021 2022 Target Cable Commercial Fiber Glo/FTTH Beam Tower Corporate 11
Slide 12: Liquidity & Debt Maturities
Liquidity & Debt Maturities Liquidity (in millions) Debt Maturity (in millions) $484 $408 $400 $11.4 $11.9 $375 $84 $0.2 $0.6 $0.7 $0.1 $33 December 31, 2021 September 30, 2022 2023 2024 2025 2026 2027 2028 Cash & Cash Equivalents Available Credit Facility Term Loan A-2 Term Loan A-1 12
Slide 13: Q&A
A\SHENTEL Q&A
Slide 14: Appendix
A\SHENTEL Appendix
Slide 15: 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 16: 2022 Adjusted EBITDA by Segment
2022 Adjusted EBITDA by Segment 16
Slide 17: 2021 & 2020 Adjusted EBITDA by Segment
2021 & 2020 Adjusted EBITDA by Segment 17
Slide 18: Broadband Average Revenue per User (ARPU)
Broadband Average Revenue per User (ARPU) 2022 Q3 Incumbent Cable 2020 2021 YTD Data Residential & SMB Revenue ($000’s) $85,127 $97,848 $78,488 Average Revenue Generating Units 90,983 103,216 107,603 Average Revenue per User (ARPU) $77.97 $79.00 $81.05 2022 Q3 Glo Fiber 2020 2021 YTD Data Residentia
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