Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Shareholder Meeting (April 2021)
34 slides from Shenandoah Telecommunications's shareholder meeting presentation, Apr 22, 2021
Slide 1: 2021 Shareholder Meeting
April 20, 2021 2021 Shareholder Meeting
Slide 2: Board of Directors
2 Board of Directors Name Age Director Since Principal Occupation Thomas A. Beckett 53 2018 SVP, GC and Secretary of American Public Education, Inc. Tracy Fitzsimmons 54 2005 President of Shenandoah University John W. Flora 66 2008 Attorney and Shareholder of Flora Pettit PC Christopher E. French 63
Slide 3: Proposals
3 Proposals 1. Election of directors To elect Thomas A. Beckett, Richard L. Koontz, Jr. and Leigh Ann Schultz for a three - year term that will expire at the annual meeting of shareholders in 2024 2. Ratification of auditors To ratify the Audit Committee’s selection of KPMG LLP as the Company’s inde
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 US generally accepted accounting principles. These financial performance measures are not indicative of cash provided or used by operating activit
Slide 6: Jim Volk, Sr. VP of Finance and CFO
Jim Volk Sr. VP of Finance and CFO
Slide 7: Broadband Financial Highlights
7 Broadband Financial Highlights ($ in millions) See Appendix for reconciliation of Adjusted OIBDA to Operating Income 34% 38% 37% Revenue Adjusted OIBDA and margin % $130.7 $142.3 $155.0 $29.7 $30.4 $32.8 $22.7 $21.2 $16.6 $183.1 $193.9 $204.3 2018 2019 2020 Residential & SMB Commercial Fiber RLEC
Slide 8: Tower Financial Highlights
8 Tower Financial Highlights See Appendix for reconciliation of Adjusted OIBDA to Operating Income. 62% 60% 61% Revenue Adjusted OIBDA and margin % $12.2 $13.0 $17.1 2018 2019 2020 6% 31% $7.8 $8.3 $10.7 2018 2019 2020 64% 63% 6% 30% 64%
Slide 9: Consolidated Financial Highlights
9 $78.3 $81.2 $81.5 $90 - $94 $7.8 $8.3 $10.7 $10.5 - $11.5 ($39.9) ($40.0) ($35.0) $(31.1) - $(29.5) $46.2 $49.4 $57.2 $69 - $76 2018 2019 2020 2021 Guidance Broadband Tower Corporate $183.1 $193.9 $204.3 $224 - $230 $12.2 $13.0 $17.1 $17 - $18 $192.7 $206.9 $220.8 $241 - $248 2018 2019 2020 2021 G
Slide 10: Consolidated Financial Highlights: Net Income and Operating Income
10 $0.04 $0.05 $0.05 $0.89 $1.07 $2.48 $0.93 $1.12 $2.53 2018 2019 2020 Continuing Operations Discontinued Operations ($3.0) ($0.7) ($1.1) $7 - $14 2018 2019 2020 2021 Guidance Consolidated Financial Highlights x x Net Income Per Diluted Share Operating Income (in millions)
Slide 11: Cash Dividend History
11 Cash Dividend History (per Share, Split Adjusted) x x $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Regular Special
Slide 12: Adjusted OIBDA – CapEx and Debt & Liquidity
12 $697.9 $75.0 $195.4 $270.4 Total Debt Total Liquidity Cash & Cash Equivalents Available Revolving Line of Credit Total Debt Effective Interest R ate of 2.31% ($10.5) ($17.6) ($63.2) ($99) - ($81) 2018 2019 2020 2021 Guidance Adjusted OIBDA – CapEx and Debt & Liquidity Adjusted OIBDA – CapEx ($ in
Slide 13: Pending Transaction Sources and Uses
13 $1,950 $195 $700 $450 $930 Sources Uses Pending Transaction Sources and Uses Pending Transaction Cash Sources & Uses ($ in millions) $2,145 $2,080
Slide 14: Dave Heimbach, EVP and COO
AXSHENTEL Always connected to you Dave Heimbach ~ EVP and COO
Slide 15: Cable, Fiber, & Fixed Wireless Networks
15 Cable, Fiber, & Fixed Wireless Networks
Slide 16: Unique network platform with high growth potential
16 Incumbent Greenfield fiber overbuilder Greenfield fixed wireless broadband overbuilder Various, but mostly rural Higher density tier III / IV markets Low density rural 209,000 / 215,000 29,000 / 300,000 9,000 / 215,000 >95% low - speed Telco DSL or no competition Incumbent cable operator and low
Slide 17: Incumbent Cable metrics
17 Incumbent Cable m etrics REVENUE GENERATING UNITS (RGU S IN THOUSANDS ) BROADBAND DATA PENETRATION BROADBAND DATA AVG REVENUE PER USER (ARPU) BROADBAND DATA CHURN
Slide 18: Glo Fiber metrics
18 Glo Fiber m etrics REVENUE GENERATING UNITS (RGU) DATA AVERAGE REVENUE PER USER (ARPU) DATA PENETRATION DATA CHURN
Slide 19: Glo Fiber Market Update
19 Glo Fiber Market Update Passings Released to Sales Target Passings * Launch Date Penetration as of 12/31 /2020 Harrisonburg VA 9, 843 1 1,399 October 2019 1 8.6 % Staunton VA 9,856 9,895 February 2020 1 3.8 % Front Royal VA 4,237 4,933 March 2020 11.3 % Winchester VA 4,716 9, 957 March 2020 10.3
Slide 20: Beam extending broadband network reach
20 Beam extending broadband network reach Exclusively licensed mid - band spectrum – Deep 2.5/3.5 GHz spectrum holdings: between 30 - 90MHz per market Existing relationships — with tower owners and backhaul providers due to in - house wireless expertise Outdoor customer premise equipment – Eli
Slide 21: Towers
21 Towers 42% 48% 47% Towers Tenants 208 225 223 2018 2019 2020 8% 367 404 427 2018 2019 2020 10% 6%
Slide 22: Capital Expenditures
22 Capital Expenditures (in millions) *Broadband excludes capex for Glo Fiber and Fixed Wireless $43 $41 $58 $55 - $60 $19 $59 $100 - $105 $6 $2 $2 - $3 $8 $6 $57 $67 $120 $157 - $168 2018 2019 2020 2021 Guidance Broadband Glo & Beam Tower Other
Slide 23: Pending Wireless Sale and Use of Proceeds Update
23 Pending Wireless Sale and Use of Proceeds Update a T - Mobile exercised option to purchase Wireless assets operations a Sales price of $1.95 billion determined through appraisal process and agreement with T - Mobile Expected timeline: 1 Execute asset purchase agreement 1 Obtain required regulator
Slide 24: Chris French, President and CEO
Chris French President and CEO
Slide 25: Split-Adjusted Stock Price and Value of Original Share
25 Split - Adjusted Stock Price and Value of Original Share x $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 Value of One Original Share of FMTS Split Adjusted Price
Slide 26: Questions & Answers
26 Questions & Answers
Slide 27: 2021 Shareholder Meeting
April 20, 2021 2021 Shareholder Meeting
Slide 28: Shentel Appendix
28 Shentel Appendix
Slide 29: 2018 Adjusted OIBDA by Segment
29 2018 Adjusted OIBDA by Segment T welve Months Ended December 31, 2018 (in thousands) Broadband Tower Corporate & Eliminations Consolidated Operating income $ 42,294 $ 5,399 $ ( 50,662 ) $ (2,969 ) Depreciation 35,816 2,406 5,992 44,214 Amortization 176 176 OIBDA 78,286 7,805 ( 44,670 ) 41,421 Sha
Slide 30: 2019 Adjusted OIBDA by Segment
30 2019 Adjusted OIBDA by Segment T welve Months Ended December 31, 2019 (in thousands) Broadband Tower Corporate & Eliminations Consolidated Operating income $ 42,597 $ 6,295 $ ( 49,611 ) $ (719) Depreciation 38,093 1,976 6,244 46,313 Amortization 473 473 OIBDA 81,163 8,271 ( 43,367 ) 46,067 Share
Slide 31: 2020 Adjusted OIBDA by Segment
31 2020 Adjusted OIBDA by Segment Twelve Months Ended December 31, 2020 Corporate & (in thousands) Broadband Tower Eliminations Consolidated Operating income $ 40,360 $ 8,823 $ (50,330 ) $ (1,147 ) Depreciation 40,337 1,906 5,721 47,964 Amortization 739 — — 739 OIBDA 81,436 10,729 (44,609 ) 47,556 S
Slide 32: 2021 Adjusted OIBDA Guidance
32 2021 Adjusted OIBDA Guidance T welve Months Ended December 31, 20 21 ( $ in millions ) Low High Operating income $ 7 $ 14 Depreciation and amortization 55 55 OIBDA 62 69 Share - based compensation expense 6 6 Restructuring and other 1 1 Adjusted OIBDA $ 69 $ 76 Total revenue $ 241 $ 248 Adjusted
Slide 33: Adjusted OIBDA - CapEx
33 Adjusted OIBDA - CapEx *Excludes capital expenditures for Glo Fiber and Fixed Wireless ($ in thousands) 2018 2019 2020 2021 Guidance Adjusted OIBDA $ 46,166 $ 49,434 $ 57,243 $69,000 - $76,000 Less: Capital Expenditures* ( 56,631) (48,210) (61,321) (63,000) – (57,000) Adjusted OIBDA less incumben
Slide 34: Broadband Average Revenue Per User (ARPU)
34 Broadband Average Revenue Per User (ARPU) Incumbent Cable 2018 2019 2020 Data Residential & SMB Revenue ($000’s) $68,019 $75,604 $85,127 Average Revenue Generating Units 71,643 80,035 90,983 Average Revenue per User (ARPU) $79.12 $ 78.72 $77.97 Average Revenue Per User calculation = (Residential
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