Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q3 2011 Earnings Presentation
29 slides from Shenandoah Telecommunications's earnings presentation, Nov 7, 2011
Slide 1: 3Q 2011 Earnings Conference Call
3Q 2011 Earnings Conference Call November 7, 2011 Exhibit 99.1
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, among other things, our business strategy, our prospects and our financial position. Th
Slide 3: 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 4: Chris French, CEO and President
Chris French CEO and President
Slide 5: Wireless Highlights
PCS Customers (000s) Wireless Highlights q Prepaid Rapid Growth Q3’11 net additions of 6,940 and 98,272 prepaid subs at q Steady Postpaid growth Postpaid customers up 6% in the last year q Postpaid Churn improves Q3’11 churn of 1.85% compared to 1.88% for Q3’10 q Earnings Improve Q3’11 operating inc
Slide 6: Cable Highlights
Cable Highlights q Growth u Total Cable RGUs 136 thousand at end of Q3 2011, up 4,745 in Q3 q Triple Play u Gains in all services including video, high-speed Internet, and voice services q Cable Upgrades u Former JetBroadband markets are approximately 25% complete
Slide 7: 2011 Financial Highlights
Net Income (in millions) Net Income from Continuing Operations (in millions) 2011 Financial Highlights q Revenue Growth- Revenues grew by $9.4 million q Depreciation and Amortization Expense- Increased $1.6 million, after tax, due to investments in cable and wireless networks q Adjusted OBIDA Growth
Slide 8: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance
Slide 9: Adjusted OIBDA - Profitability
Adjusted OIBDA ($ thousands) Profitability
Slide 10: Adjusted OIBDA by segment (Shentel)
a” SHENTEL (in thousands) Operating Income Depreciation and Amortization OIBDA Less gain on sale of directory Less (gain) loss on asset sales Share Based Compensation Acquisition Costs Adjusted OIBDA Wireless Cable Wireline Q3'10 = Q3'11 Q3'10 = Q3'11 Q3'10 = Q3'11 $ 9.2 $129 $(63) $(64) $75 $ 35 6.
Slide 11: Wireless Segment - Change in Adjusted OIBDA Q3'10 vs. Q3'11
Wireless Segment - Change in Adjusted OIBDA Q3’10 vs. Q3’11
Slide 12: PCS Prepaid Statistics - Total Net Contribution
PCS Prepaid Statistics - Total Net Contribution
Slide 13: Cable Segment - Change in Adjusted OIBDA Q3'10 vs. Q3'11
Cable Segment - Change in Adjusted OIBDA Q3’10 vs. Q3’11
Slide 14: Wireline Segment - Change in Adjusted OIBDA Q3'10 vs. Q3'11
Wireline Segment - Change in Adjusted OIBDA Q3’10 vs. Q3’11
Slide 15: Earle MacKenzie, EVP and COO
Earle MacKenzie EVP and COO
Slide 16: PCS Postpaid Customers (000s)
PCS Postpaid Customers (000s) Key Operational Results - Wireless
Slide 17: Gross Additions - Postpaid Net Additions - Postpaid
Gross Additions - Postpaid Net Additions - Postpaid Key Operational Results - Wireless n Q3 2011 net adds of 2,686 versus 3,175 Q2 2010 net adds n Q3 2011 churn of 1.8% improved from 1.9% in Q3 n Shentel-controlled channels produced 50% of gross adds in Q3 2011 and 53% of gross adds in Q3
Slide 18: Gross Billed Revenue per Postpaid User - Data & Voice
Gross Billed Revenue per Postpaid User - Data & Voice 1 Key Operational Results - PCS 1 - Before Service credits, bad debt, Sprint Nextel fees.
Slide 19: Gross Billed Revenues - Postpaid ($ millions)
Gross Billed Revenues - Postpaid ($ millions) PCS Revenues $38.1 $41.8
Slide 20: Postpaid PCS Customers Top Picks Q3 2011
Postpaid PCS Customers Top Picks Q3 2011 n Top Service Plans - 76% of Gross Adds u Everything Data Family 1500 - 53% u Everything 450 - 18% u Everything Messaging Family 1500 - 5% n Top Devices - New Activations - All Channels u HTC EVO 4G 22% u LG Optimus S 14% u LG Rumor Touch 7% u HTC EVO Shift 4
Slide 21: PCS Prepaid Statistics
Gross Additions (000s) Cumulative Customers (000s) PCS Prepaid Statistics 9/30/11 98.3 6/30/11 91.3 3/31/11 80.2 12/31/10 67.0 9/30/10 56.2 7/1/10 50.0
Slide 22: PCS Prepaid Statistics - Churn and Average Gross Billed Revenue
Churn % Average Gross Billed Revenue PCS Prepaid Statistics
Slide 23: RGU Growth by Quarter - Cable
RGU Growth by Quarter - Cable Customers 70,430 74,178 74,657 73,930 75,131 RGU's/Customer 1.70 1.73 1.75 1.77 1.81
Slide 24: Key Operational Results - Cable
Key Operational Results - Cable Note : Video homes passed includes 16K homes located in Shenandoah County, VA, where internet and voice services are not available from the cable company.
Slide 25: Key Operational Results - Wireline
Access lines (000s) Internet Customers (000s) Key Operational Results - Wireline n Modest access line loss of 2% in past 12 months n Continued broadband penetration in LEC area to 53% n 4% growth in DSL customers since 9/30/10, partially offsetting access line losses, resulting in total connections
Slide 26: Capex Spending - Investing in the Future
Capex Spending Investing in the Future n Increased planned Wireless spending for 2011 EVDO growth. Increased capacity approximately 50% n Upgrade of Jet Network is approximately 25% complete n 52% of Virginia systems and 48% of WV systems upgrades projected to be completed in n All remaining systems
Slide 27: Shentel
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Slide 28: Shentel
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Slide 29: Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber
Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber
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