Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q1 2023 Earnings Presentation
25 slides from Shenandoah Telecommunications's earnings presentation, Apr 28, 2023
Slide 1: Q1 2023 Earnings Conference Call
Q1 2023 Earnings Conference Call April 28, 2023
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: Chris French, President and CEO
Chris French President and CEO 3
Slide 4: Record Quarter for Broadband Driven by Glo Fiber
Record Quarter for Broadband Driven by Glo Fiber Quarterly Glo Fiber Data Net Additions Quarterly Glo Fiber Revenue ($ in millions) Quarterly Broadband Revenue ($ in millions) Quarterly Broadband Adjusted EBITDA ($ in millions) 4
Slide 5: Accelerating Pace of Construction and Sales
Accelerating Pace of Construction and Sales Glo Fiber Passings Released to Sales Glo Fiber Ending Data Subscribers 76% 109% 5
Slide 6: Jim Volk, SVP of Finance and CFO
Jim Volk SVP of Finance and CFO 6
Slide 7: Broadband Highlights - First Quarter Results
Broadband Highlights - First Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) 25.0% 12.5% 35.3% 39.2% margin margin 7
Slide 8: Tower Highlights - First Quarter Results
Tower Highlights - First Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) (9.4)% (5.6)% 66.8% 64.1% margin margin 8
Slide 9: Consolidated Highlights - First Quarter Results
Consolidated Highlights - First Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) 28.6% 11.3% Consolidated revenue includes elimination of intercompany activity. 9
Slide 10: Liquidity & Free Cash Flow
Liquidity & Free Cash Flow Liquidity (in millions) Free Cash Flow (in millions) • $17 million in cash sale proceeds of certain spectrum assets likely to close by end of 3Q23 10
Slide 11: Debt Maturity & Other Liquidity Events
Debt Maturity & Other Liquidity Events Debt Maturity (in millions) 11
Slide 12: Ed McKay, EVP and COO
XG a Ed McKay EVP and COO
Slide 13: Integrated Fiber and Cable Broadband Network
Integrated Fiber and Cable Broadband Network 13
Slide 14: Broadband - Fiber Construction Metrics
Broadband - Fiber Construction Metrics Glo Fiber Franchise Approved Passings Fiber Passings Released to Sales Government Grant Approved Fiber Passings1 Total Fiber Construction Backlog Passings 1 Q4'22 and Q1'23 grant approved fiber passings exclude 3,000 additional passings to be constructed using
Slide 15: Broadband - Glo Fiber Operating Metrics
Broadband - Glo Fiber Operating Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 15
Slide 16: Vintage Glo Fiber Penetration
Vintage Glo Fiber Penetration Vintage Glo Fiber Penetration1 Avg. Terminal Penetration 38% Passings released 18 17 18 19 19 14 15 12 6 6 9 8 4 2 to sales (000's) Quarter launched 1 Penetration rates as of 3/31/2023 16
Slide 17: Broadband - Cable Markets Metrics
Broadband - Cable Markets Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 17
Slide 18: Broadband - Commercial Fiber Metrics
Broadband - Commercial Fiber Metrics MRR & MAR Sales Bookings Installed MRR & MAR1 Backhaul Connections Monthly Compression and Disconnect Churn2 1. MRR = Monthly Recurring Revenue; MAR = Monthly Amortized Revenue 2. Excludes impact of T-Mobile network rationalization 18
Slide 19: Tower - Metrics
Tower - Metrics Towers Tenants 19
Slide 20: Capital Expenditures
Capital Expenditures Capex Spending ($ in millions) $260 - $300 $35 - $45 $170 - $190 $13 - $18 $40 - $45 *2023 Guidance figures are not presented in-scale with Q1'22 and Q1'23 actual figures. 20
Slide 21: Q&A
Q&A AXSHENTEL
Slide 22: Appendix
HENTEL Appendix
Slide 23: 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 U.S. generally accepted accounting principles. These financial performance measures are not indicative of cash provided or used by operating activities
Slide 24: Adjusted EBITDA by Segment - Quarterly Results
Adjusted EBITDA by Segment - Quarterly Results Three Months Ended March 31, 2023 Corporate & (in thousands) Broadband Tower Eliminations Consolidated Net income (loss) $ 11,274 $ 2,421 $ (11,629) $ 2,066 Depreciation and amortization 14,867 513 402 15,782 Impairment expense — — — — Other expense (in
Slide 25: Broadband - Average Revenue per User (ARPU)
Broadband - Average Revenue per User (ARPU) For the first quarter ended, 2022 2023 Residential & SMB Revenue (000's) Broadband $ 28,649 $ 33,174 Cable Markets $ 25,863 $ 27,273 Glo Fiber Markets $ 2,786 $ 5,901 Video $ 15,341 $ 14,645 Voice $ 2,916 $ 3,030 Average Revenue Generating Units Broadband
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