Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Shareholder Meeting (April 2016)
38 slides from Shenandoah Telecommunications's shareholder meeting presentation, Apr 19, 2016
Slide 1: 2016 Shareholder Meeting
2016 Shareholder Meeting April 19, 2016
Slide 2: Management Reports: Chris French, President and CEO
Management Reports Chris French President and CEO
Slide 3: 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 4: 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 5: Record Financial Results
Record Financial Results x Revenue Net Income Earnings per Share Operating Income (Diluted) x 2013 2014 2015 x 5
Slide 6: Earnings Per Share (Diluted)
Earnings Per Share (Diluted) x x 6
Slide 7: Cash Dividend History (per Share, Split Adjusted)
Cash Dividend History (per Share, Split Adjusted) x x 7
Slide 8: Total Long Term Debt to Assets
Total Long Term Debt to Assets (in millions) Debt as % 42% 38% 41% 39% 36% 32% of Assets 8
Slide 9: Operating Income by Segment
Operating Income by Segment Wireless Wireline x x Cable 2013 2014 x2015 x 9
Slide 10: Cable Revenue Generating Units
Cable Revenue Generating Units (in thousands) (Year End) 10
Slide 11: Access, Local, and Fiber Lease Revenue
Access, Local, and Fiber Lease Revenue (in millions) 11
Slide 12: Wireless Highlights
Wireless Highlights PCS Customers (000s) 12
Slide 13: Wireless Expansion
Wireless Expansion A\SHENTEL’ Always connected to you [ielos Sprint >
Slide 14: Pro Forma Network Following nTelos Acquisition
Pro Forma Network Following nTelos Acquisition Shentel Cable Coverage Shentel Coverage Overlap Coverage NTELOS Coverage 14
Slide 15: Cumulative Total Shareholder Return
Cumulative Total Shareholder Return 2010 2011 2012 2013 2014 2015 Shenandoah Telecommunications Company $100 $ 58 $ 86 $147 $182 $253 NDAQ US $100 $118 $137 $183 $206 $207 NDAQ Telecom Stocks $100 $127 $152 $172 $177 $183 x 15
Slide 16: Split-Adjusted Stock Price and Value of Original Share
Split-Adjusted Stock Price and Value of Original Share x 16
Slide 17: Management Reports: Adele Skolits, VP of Finance and CFO
Management Reports Adele Skolits VP of Finance and CFO
Slide 18: Mix of External Revenues
1 Mix of External Revenues (in millions) 1. After elimination of affiliate revenues the total revenues for 2013, 2014, and 2015 were $308.9, 326.9, and $342.5, respectively. 18
Slide 19: Mix of Operating Expenses
Mix of Operating Expenses (in millions) 19
Slide 20: Operating Income
Operating Income (in millions) 20
Slide 21: Operating Income Improvement – 2015 vs. 2014
Operating Income Improvement – 2015 vs. 2014 (in millions) 21
Slide 22: Pro Forma External Revenues
Pro Forma External Revenues (in millions) Actual 2015 for Shentel and nTelos (Western Markets). For illustrative purposes only. Not indicative of future results. 22
Slide 23: Net Transaction Consideration
Net Transaction Consideration (in millions) Net Transaction Consideration nTelos Equity $208 Net Debt (1) 447 Total nTelos Enterprise Value 655 Less: Reduction in future fees, discounted 225 Accounts Receivable, discounted 57 Tax Expense (44) Net Payments 238 Net Consideration $417 2015 Cash Flow (2
Slide 24: Pro Forma Capitalization – As of 12/31/15
Pro Forma Capitalization – As of 12/31/15 (in millions) Assets Debt 24
Slide 25: Management Reports: Earle MacKenzie, EVP and COO
Management Reports Earle MacKenzie EVP and COO
Slide 26: PCS Postpaid Subscribers
PCS Postpaid Subscribers (in thousands) (Year End) 26
Slide 27: PCS Postpaid Gross Billed Revenue per User
PCS Postpaid Gross Billed Revenue per User 27
Slide 28: PCS Prepaid Subscribers
PCS Prepaid Subscribers (in thousands) (Year End) 28
Slide 29: PCS Prepaid Gross Billed Revenue per User
PCS Prepaid Gross Billed Revenue per User 29
Slide 30: How Does Shentel's Wireless Compare?
How Does Shentel’s Wireless Compare? 2015 Results (in thousands) Shentel Verizon AT&T US Sprint T-Mobile NTELOS PCS Wireless Mobile Cellular Covered POPS 2,224 307,000 321,000 N/A 31,967 304,000 3,100 2015 Net Adds / 22 3,956 8,059 (219) 116 8,264 20 (Loss) % Growth 5.2% 3.7% 6.9% (0.4%) 2.4% 15.0%
Slide 31: Cable Revenue Generating Units
Cable Revenue Generating Units (in thousands) (Year End) Customers 69,538 71,298 72,734 x 31
Slide 32: Cable Average Monthly Revenue per Customer
Cable Average Monthly Revenue per Customer 32
Slide 33: How Does Shentel Cable Compare?
How Does Shentel Cable Compare? (Year End) Peer 2011 2012 2013 2014 2015 Average * Video Homes Passed 166,114 168,475 170,470 171,589 172,538 Penetration 35% 33% 31% 30% 29% 28% High-speed Internet Available Homes 156,119 163,273 168,255 171,589 172,538 Penetration 24% 25% 27% 30% 32% 33% Voice Avai
Slide 34: Wireline Customers
Wireline Customers (Year End) 34
Slide 35: Investing in the Future
Investing in the Future (in millions) Capex Spending 2016 Plan 2015 Actual 2016 Planned Spending 56% Upgrades and Expansion of 2014 nTelos Network Actual 17% Network Expansion 11% Additional Network Capacity 2013 10% Network Maintenance Actual 6% Success-Based 35
Slide 36: Pro Forma Footprint
Pro Forma Footprint Shentel Cable Coverage Shentel Coverage Overlap Coverage NTELOS Coverage Shentel Fiber Routes Shentel Leased Routes Shentel Planned Routes Shentel Master Headend Shentel POP Planned Shentel POP Internet POP 36
Slide 37: Pro Forma Operating Statistics as of 12/31/15
Pro Forma Operating Statistics as of 12/31/15 1 2 SHENTEL Pro Forma Cell Sites 552 1,008 NA 1,411 4 Market POPs (000’s) 2,433 4,400 3 4,400 3 5,449 Covered POPs (000’s) 2,224 3,100 3 3,100 3 4,283 % Coverage 91% 70% 70% 79% Postpaid Subs (000’s) 313 233 190 736 Prepaid Subs (000’s) 143 69 88 300 Tot
Slide 38: 2016 Shareholder Meeting
2016 Shareholder Meeting April 19, 2016
Shenandoah Telecommunications Company — Shareholder Meeting (April 2016) on 6ix