Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q1 2013 Earnings Presentation
34 slides from Shenandoah Telecommunications's earnings presentation, May 3, 2013
Slide 1: 1Q 2013 Earnings Conference Call
May 3, 2013 1Q 2013 Earnings Conference Call 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.
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
Slide 4: Chris French, President and CEO
* Chris French President and CEO
Slide 5: Q1'13 Highlights
Q113 Highlights @ Net Income Growth = Increased 87% to $8.4 million @ Revenue Growth = Revenue grew 10.4% over Q1’12 to $76.0 million. = Customer Growth 3/31/12 3/31/13 Change Wireless 365,068 398,361 33,293 Cable (RGUs) 114,006 116,576 2,570 AXSHENTEL
Slide 6: Wireless Highlights
* Wireless Highlights PCS Customers (000s) Steady Postpaid growth Postpaid customers up 5.3% in the last year Rapid Prepaid Growth Q1’13 net additions of 6,227; 134k prepaid subs at 03/31 Operating Income Increase Improvement of $5.3 million, or over 50% Network Vision 70% of covered POPs have our 4
Slide 7: Cable Highlights
* Cable Highlights Cable Upgrades Final planned upgrade to markets acquired in mid-2010 is nearing substantial completion. RGU Growth Total RGU growth of 1.5% in Q1’13 116,576 RGUs at 3/31/2013
Slide 8: Adele Skolits, VP of Finance and CFO
* Adele Skolits VP of Finance and CFO
Slide 9: Profitability: Net Income and Earnings Per Share
* Profitability Net Income and Earnings Per Share ($ in thousands, except per share amounts)
Slide 10: Profitability: Adjusted OIBDA
* Profitability Adjusted OIBDA ($ thousands)
Slide 11: Adjusted OIBDA by Segment
* Adjusted OIBDA by Segment ($ millions)
Slide 12: Wireless Segment – Change in Adjusted OIBDA Q1'13 vs. Q1'12
* Wireless Segment – Change in Adjusted OIBDA Q1’13 vs. Q1’12 ($ millions)
Slide 13: Cable Segment – Change in Adjusted OIBDA Q1'13 vs. Q1'12
* Cable Segment – Change in Adjusted OIBDA Q1’13 vs. Q1’12 ($ millions)
Slide 14: Effective Tax Rate
* Effective Tax Rate Decrease in rate is the result of organizational changes undertaken in 2012 These changes resulted in savings of approximately $470k in Q1’13.
Slide 15: Earle MacKenzie, EVP and COO
Earle MacKenzie EVP and COO AXSHENTEL
Slide 16: Network Vision Scorecard
* Network Vision Scorecard – as of 4/29/13 To Date: Leasing & Zoning Complete 456 out of 521 sites Sites on air 328 out of 521 sites Sites with 4G LTE launched 276 out of 521 sites Number of sites on air has increased 45% since YE 2012 4G LTE currently available to 75% of covered POPs 4G LTE service
Slide 17: Key Operational Results – Wireless PCS Postpaid Customers
* Key Operational Results – Wireless PCS Postpaid Customers (000s)
Slide 18: Key Operational Results – Wireless Gross and Net Additions
* Key Operational Results – Wireless Gross Additions - Postpaid Net Additions - Postpaid Net adds of 1,065 in Q1 2013 versus 2,064 in Q1 2012 Q1 2013 churn of 1.87% up from 1.86% in Q1 2012 Shentel-controlled channels produced 45% of gross adds in Q1 2013 and 50% in Q1 2012
Slide 19: PCS Gross Billed Revenue per Postpaid User
* Key Operational Results – PCS Gross Billed Revenue per Postpaid User – Data & Voice 1 1 – Before Service credits, bad debt, Sprint Nextel fees.
Slide 20: PCS Revenues: Annual Gross Billed Revenues
* PCS Revenues Annual Gross Billed Revenues - Postpaid ($ millions)
Slide 21: Postpaid PCS Customers Top Picks
* Postpaid PCS Customers Top Picks Q1 2013 Smartphones made up 68% of the Postpaid base in Q1 2013, up from 65% in Q4 2012 and 57% in Q1 2012 Top Service Plans – 71% of Gross Adds Everything Data 1500 – 54% Everything Data 450 – 17% Top Devices – New Activations – All Channels iPhone 26% Samsung Gal
Slide 22: iPhone Statistics – Q1'13
* iPhone Statistics – Q1’13 26% of Q1 Gross Adds 34% of iPhones were sold or upgraded in Shentel-controlled channels 21.2% of 03/31/2013 Postpaid customers had the iPhone, up from 17.9% at 12/31/12 51% iPhone 4S 32% iPhone 4 17% iPhone 5
Slide 23: PCS Prepaid Statistics: Gross Additions and Customers
* PCS Prepaid Statistics Gross Additions (000s) Cumulative Customers (000s)
Slide 24: PCS Prepaid Statistics: Churn and Revenue
* PCS Prepaid Statistics Churn % Average Gross Billed Revenue
Slide 25: Cable – RGU Growth by Quarter
* Cable - RGU Growth by Quarter Customers 76,130 74,726 75,386 74,798 75,573 RGU's/Customer 1.50 1.51 1.52 1.54 1.54
Slide 26: Cable Statistics: Average Monthly Revenue
* Cable Statistics Average Monthly Revenue per RGU Average Monthly Revenue per Customer* *Average monthly revenue per video subscriber was $89.13 and $102.38 for Q1 2012 and Q1 2013, respectively.
Slide 27: 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 provided by the Wireline segment.
Slide 28: Key Operational Results – Wireline
* Key Operational Results - Wireline Access line loss of 2.6% in past 12 months Broadband penetration in LEC area at 57% 1.5% growth in DSL customers since 03/31/2012. Total connections at 03/31/13 of 34.9 thousand Access lines (000s) DSL Customers (000s)
Slide 29: Investing in the Future
* Investing in the Future Last Cable upgrade of 10,000 homes passed is underway and expected to be complete in 2013. Network Vision spend of $55M in 2012. Budget of $60M in 2013. Success-based spending is 23% of total 2013 budget. Capex Spending ($ millions) * Capex spending for 2012 included $24.7
Slide 30: Q&A
AXSHENTEL Q&A 30
Slide 31: Appendix
AXSHENTEL Appendix a
Slide 32: Non-GAAP Financial Measure – Billed Revenue per Postpaid Subscriber
* Non-GAAP Financial Measure – Billed Revenue per Postpaid Subscriber
Slide 33: Key Operational Results – Mobile Company
* Key Operational Results – Mobile Company Mobile Company Revenue ($ millions) Towers and Leases (in thousands) Q1'12 Q1'13 Operating Income $1,090 $1,288 Depreciation and Amortization 333 409 Share Based Compensation 4 5 Adjusted OIBDA $1,427 $1,702
Slide 34: Wireline Statistics – Fiber Sales and Lease Revenue
* Wireline Statistics – Fiber Sales ($ millions) Fiber Lease Revenue
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