Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q1 2010 Earnings Presentation
26 slides from Shenandoah Telecommunications's earnings presentation, May 6, 2010
Slide 1: 1Q 2010 Earnings Conference Call
1Q 2010 Earnings Conference Call May 6, 2010
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: 1Q '10 Highlights
Net Income (in millions) Net Income from Continuing Operations (in millions) 1Q ‘10 Highlights q Net Income - 1Q 2010 net income of $6.8 million q Operating results - Net income from continuing operations of $6.6 million up 7%, with wireless up 4% q Cable Loss - Net loss from the cable segment of $1
Slide 6: 1Q '10 Wireless Highlights
PCS Customers (000s) 1Q ’10 Wireless Highlights n Steady Wireless growth - customers up 5% in the last year, net adds up 7% this quarter n Quarterly churn improves - Q1 ‘10 churn of 1.91% compared to 1.99% for Q4 ‘09 and 2.15% for Q1 ’09 n Wireless upgrades completed - Capital Spending reduced as wi
Slide 7: 1Q '10 Other Highlights
DSL Customers (000s) 1Q ’10 Other Highlights n Cable Triple Play - 68% of acquired homes passed upgraded through March 31 n North River commitments delivered - DSL service available to 100% of North River customers, up from 50% at year end n Substantial DSL growth - DSL subs up 5% in Q1 2010 n Disco
Slide 8: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance
Slide 9: Earnings Per Share
Earnings Per Share Earnings per Share from Continuing Operations EPS n Solid Earnings- EPS from continuing operations of $.28 in 1Q ’10, up 8%
Slide 10: OIBDA for the Quarter Ended
OIBDA for the Quarter Ended ($ millions) Profitability
Slide 11: Change between 1Q'09 and 1Q'10
Change between 1Q’09and 1Q’10 OIBDA in thousands Wireless n Average customers and service revenues up 5% n Operating costs associated with PCS network upgrades Wireline n Service revenues up 3% Cable n Revenues up despite having sold 7% of the RGU’s n Increased costs associated with network upgrades
Slide 12: Cash Flows
Cash Flows ($ millions) Cash Flows n Operating cash flow - Lower due to timing of payments vendor, tax and Sprint payments n Capex - E xpenditures flat with Q1’09 and lower than previous quarters as Wireless network improvements slow n Cost of Capital will drop - The balance sheet will enable us to
Slide 13: Earle MacKenzie, EVP and COO
Earle MacKenzie EVP and COO
Slide 14: Key Operational Results - Wireless: PCS Customers
PCS Customers (000s) Key Operational Results - Wireless
Slide 15: Key Operational Results - Wireless: Gross and Net Additions
Gross Additions Net Additions Key Operational Results - Wireless n Decrease in churn from 2.15% in Q1 ‘09 and 1.99% in Q4 ‘09 to 1.91% in Q1 ’10 n Improvements in retention lead to a 7% increase in net adds n Bad Debt write-offs and credits are down 5% Q1’10 over Q1’09
Slide 16: Key Operational Results - PCS: Gross Billed Revenue per User
Gross Billed Revenue per User - Data & Voice 1 Key Operational Results - PCS 1 - Before Service credits, bad debt, Sprint Nextel fees. See reconciliation of Non-GAAP financial measures on slide 24
Slide 17: PCS Revenues: Gross Billed Revenues
Gross Billed Revenues ($ millions) PCS Revenues $36.0 $37.1
Slide 18: PCS Customers Top Picks Q1 2010
PCS Customers Top Picks Q1 2010 n Top Service Plans - 49% of Gross Adds u Everything Data Family u Everything Messaging Family 1500 u Everything 450 n Top Devices - Shentel Controlled Channels u Sanyo 3810 12% u Sanyo 2700 11% u Blackberry Curve 9% u Samsung Exclaim 9% u LG Rumor 2 9% u Mobile Data
Slide 19: Meeting PCS Customer Needs: Number of Cell Sites
Number of Cell Sites Meeting PCS Customer Needs n Growth in sites and EVDO coverage has slowed n Expanded data offering u Over 95% POP’s with EVDO coverage n Future investments success based or maintenance related
Slide 20: Key Operational Results - Wireline
Access lines (000s) Internet Customers (000s) Key Operational Results - Wireline n Modest access line loss n 46% overall broadband penetration n 12% growth in DSL customers since 3/31/09 1 DSL only available within LEC area 2 Dial-up offered inside and outside the LEC area
Slide 21: Key Operational Results - Cable: Net RGU Growth
Cable Segment Net RGU Growth Key Operational Results - Cable n Upgrades continue to result in substantial RGU growth n 68% of homes passed upgraded in acquired markets n Voice service launched
Slide 22: Key Operational Results - Cable
12/31/08 3/31/09 12/31/09 3/31/10 Video Homes Passed 64,365 64,365 56,268 56,268 Penetration 38.70% 38.50% 40.50% 41.30% High-speed Internet Available Homes 19,405 19,405 25,748 27,522 Penetration 5.80% 6.20% 8.10% 10.10% Voice Available Homes - - - 6,355 Penetration n/a n/a n/a 0.60% Key Operationa
Slide 23: Capex Spending: Investing in the Future
Capex Spending Investing in the Future n Wireless expansion slows to success-based coverage & capacity adds in 2010 n Complete program to increase broadband speeds to 10 MB+ in LEC area n Increased miles and capacity of fiber n Complete upgrade of existing cable systems to 2-way to provide triple pl
Slide 24: Shentel
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Slide 25: Shentel
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Slide 26: Non-GAAP Financial Measure - Billed Revenue per Subscriber
Dollars in thousands (except subscribers and revenue per subscriber) 1Q '09 1Q '10 Gross billed revenue Wireless segment total operating revenues $28,804 $30,233 Equipment revenue -1,270 -1,218 Other revenue -2,174 -2,488 Wireless service revenue 25,360 26,527 Service credits 3,764 3,756 Write-offs
Shenandoah Telecommunications — Q1 2010 Earnings Presentation on 6ix