Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Shareholder Meeting (April 2022)
29 slides from Shenandoah Telecommunications's shareholder meeting presentation, Apr 19, 2022
Slide 1: 2022 Shareholder Meeting
2022 Shareholder Meeting April 19, 2022
Slide 2: Board of Directors
Board of Directors Director Principal Name Age Since Occupation Victor C. Barnes 57 2022 Chief of Connected Planning for Anaplan, Inc. Thomas A. Beckett 54 2018 SVP, GC and Secretary of American Public Education, Inc. Tracy Fitzsimmons 55 2005 President of Shenandoah University John W. Flora 67 2008
Slide 3: Proposals
Proposals 1. Election of directors To elect Victor C. Barnes and Christopher E. French for a three-year term that will expire at the annual meeting of shareholders in 2025 2. Ratification of auditors To ratify the Audit Committee’s selection of RSM US LLP as the Company’s independent registered publ
Slide 4: 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 our business strategy, our prospects and our financial position. These statements can be
Slide 5: 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 6: Jim Volk, Sr. VP of Finance and CFO
Jim Volk Sr. VP of Finance and CFO
Slide 7: Broadband financial highlights
Broadband financial highlights Revenue (in millions) Adjusted EBITDA (in millions) * 39.4% 36.6% margin margin * Results include Glo/Beam Adj. EBITDA of ($3M) in 2019, ($5M) in 2020 and ($7M) in 2021. 7
Slide 8: Tower financial highlights
Tower financial highlights Revenue (in millions) Adjusted EBITDA (in millions) margin margin margin 8
Slide 9: Consolidated Financial Highlights
Consolidated Financial Highlights Revenue (in millions) Adjusted EBITDA (in millions) Consolidated revenue includes elimination of intercompany activity. 9
Slide 10: Consolidated Financial Highlights
Consolidated Financial Highlights Net Income (in millions) Net Income Per Diluted Share x 10
Slide 11: Regular Dividend History (per Share, Split Adjusted)
$0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 x 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 x 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Regular Dividend History (per Share, Split Adjusted) 2020 11
Slide 12: Strong liquidity & balance sheet
Strong liquidity & balance sheet Liquidity (in millions) • No outstanding debt currently • Will start to draw on delay draw term loans in 2022 • Expect peak net leverage of 2.9x in 2024 • Significant financial flexibility for upsizing the Glo Fiber expansion or M&A 12
Slide 13: Ed McKay, EVP and COO
A\SHENTEL Always connected to you >. Ed McKay ~ EVP and COO
Slide 14: Integrated fiber, cable and fixed wireless broadband network
Integrated fiber, cable and fixed wireless broadband network Government Grant Counties 14
Slide 15: Unique network platform with high growth potential
Unique network platform with high growth potential Government Grant Opportunities Greenfield fiber overbuilder Greenfield fixed wireless Greenfield hybrid fiber / Shentel position Incumbent cable broadband overbuilder fixed wireless provider Higher density tier III / IV Market type Mostly rural Low
Slide 16: Broadband network rapidly becoming fiber dominant
Broadband network rapidly becoming fiber dominant Broadband Data Homes and Businesses Passed 16
Slide 17: Vintage Glo Fiber penetration
Vintage Glo Fiber penetration Vintage Glo Fiber Penetration 32.2%1 23.7%1 21.6%1 13.7%1 6.4%1 Passings released 15,377 10,848 5,828 8,434 1,777 to sales Quarter launched # of months after 1 month 7 months 13 months 19 months 25 months quarter launched 1 Penetration rates as of 2/4/2022 17
Slide 18: Key Incumbent Cable metrics trending well
Key Incumbent Cable metrics trending well Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 18
Slide 19: Glo Fiber metrics consistent with investment thesis
Glo Fiber metrics consistent with investment thesis Revenue Generating Units (RGUs in 000s) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 19
Slide 20: Tower - Metrics
Tower - Metrics Towers Tenants Intercompany leases assumed by T-Mobile 7/1/2021 20
Slide 21: Investing for a Fiber First future
Investing for a Fiber First future Capex Spending ($ in millions) $165 - $175 $13 - $18 $40 - $45 21
Slide 22: Chris French, President and CEO
Chris French President and CEO
Slide 23: Split-Adjusted Stock Price and Value of Original Share
Split-Adjusted Stock Price and Value of Original Share 23
Slide 24: Questions & Answers
AXSHENTEL Questions & Answers 24
Slide 25: 2022 Shareholder Meeting
2022 Shareholder Meeting April 19, 2022
Slide 26: Appendix
Appendix AXSHENTEL
Slide 27: 2021 & 2020 Adjusted EBITDA by Segment
2021 & 2020 Adjusted EBITDA by Segment 27
Slide 28: 2019 Adjusted EBITDA by Segment
2019 Adjusted EBITDA by Segment Year Ended December 31, 2019 Corporate & (in thousands) Broadband Tower Eliminations Consolidated Net Income $ 41,797 $ 6,295 $ (46,160) $ 1,932 D&A 38,566 1,976 6,244 46,786 Other expense (income), net 177 0 (3,457) (3,280) Income tax expense (benefit) 0 0 6 6 EBITDA
Slide 29: Broadband Average Revenue per User (ARPU)
Broadband Average Revenue per User (ARPU) Incumbent Cable 2019 2020 2021 Data Residential & SMB Revenue ($000’s) $75,604 $85,127 $97,848 Average Revenue Generating Units 80,035 90,983 103,216 Average Revenue per User (ARPU) $78.72 $77.97 $79.00 Glo Fiber 2020 2021 Data Residential & SMB Revenue ($00
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