Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Shareholder Meeting (May 2009)
46 slides from Shenandoah Telecommunications's shareholder meeting presentation, May 5, 2009
Slide 1: Annual Shareholder Meeting
Annual Shareholder Meeting May 5, 2009 SHENANDOAH TELECOMMUNICATIONS COMPANY Exhibit 99.1
Slide 2: Annual Shareholder Meeting - Chris French, CEO
Annual Shareholder Meeting May 5, 2009 SHENANDOAH TELECOMMUNICATIONS COMPANY Chris French - CEO
Slide 3: Forward-Looking Statements
Forward-Looking Statements 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 positio
Slide 4: 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 5: Comparative Results
0.27 0.80 18.8 36.7 130.4 11.1 0.30 Cash Dividend Per Share 30.0 1.04 Earnings Per Share 29.8 24.4 Total Net Income 24.4 45.6 Operating Income 10.8 144.4 Revenues Percent Change Comparative Results (in millions, except per share amounts)
Slide 6: Converged Services Operating Losses
Converged Services Operating Losses in millions
Slide 7: Converged Services and the Triple Play
Converged Services and the Triple Play Business Case for Converged Services Bundled service provider focused on small/medium markets in the Mid-Atlantic and southeast Core competence of Triple Play offering: voice, video and data Differentiate service based on tailored offerings, service quality and
Slide 8: Wireless Capital Expenditures
Wireless Capital Expenditures in millions
Slide 9: North River Telephone Cooperative
North River Telephone Cooperative Proximity to Shentel LEC territory Existing Shentel fiber south of Harrisonburg 1,000 access lines Upgrade to offer DSL service to all customers
Slide 10: Long-Term Stock Performance
Long-Term Stock Performance December 2001 – April 2008
Slide 11: Long-Term Stock Performance
Long-Term Stock Performance December 2001 – April 2009
Slide 12: Shentel vs. NASDAQ Indexes
<0” SHENTEL 400 -@SHENANDOAH TELECOMMUNICATIONS COMPANY “-#ENASDAQ TELECOMMUNICATIONS INDEX “deNASDAQU.S.INDEX a 250 | see . 350 300 200 | 150 100 | iS 2003 «2004 «62005 = 2006 )3=— 2007S 2008
Slide 13: Annual Shareholder Meeting - Adele Skolits, CFO
Annual Shareholder Meeting May 5, 2009 SHENANDOAH TELECOMMUNICATIONS COMPANY Adele Skolits - CFO
Slide 14: Earnings Per Share – Net Income
$0.27 $0.50 Earnings Per Share – Net Income 1 EPS and Fully Diluted EPS include $0.27 per share as a result of the one time gain related to the liquidation of the Rural Telephone Bank
Slide 15: Earnings Per Share – Continuing Operations
$0.27 $0.62 Earnings Per Share – Continuing Operations 1 EPS and Fully Diluted EPS include $0.27 per share as a result of the one time gain related to the liquidation of the Rural Telephone Bank Up 26%
Slide 16: Key Financial Results – Dividends per Share
$0.09 $0.16 Key Financial Results – Dividends per Share Special
Slide 17: Annual Financial Results – Revenues
Annual Financial Results – Revenues in millions PCS Other
Slide 18: Annual Financial Results – Operating Expenses
Annual Financial Results – Operating Expenses in millions PCS Other
Slide 19: Key Financial Results – Operating Income
Key Financial Results – Operating Income in millions PCS Other
Slide 20: Cash Flows
Cash Flows in millions 2007 2008 Change Net Cash from Operations $43.7 $50.1 $6.4 Capital Expenditures ($29.1) ($65.5) ($36.4) Cable TV Acquisition ($10.9) ($10.9) Borrowings $23.7 $23.7 Debt Repayments ($4.1) ($4.2) ($0.1) Dividends ($5.8) ($6.5) ($0.7) Other ($0.9) $1.3 $2.2 Increase in Cash Balan
Slide 21: Annual Capex
Annual Capex Wireless – PCS/Mobile Wireline – Cable Wireline - Other
Slide 22: First Quarter 2009 – Revenues
First Quarter 2009 – Revenues in millions
Slide 23: First Quarter 2009 – Operating Income
First Quarter 2009 – Operating Income
Slide 24: First Quarter 2009 – Net Income
First Quarter 2009 – Net Income in millions
Slide 25: First Quarter 2009 – Earnings per Share
First Quarter 2009 – Earnings per Share
Slide 26: Annual Shareholder Meeting - Earle MacKenzie, COO
Annual Shareholder Meeting May 5, 2009 SHENANDOAH TELECOMMUNICATIONS COMPANY Earle MacKenzie - COO
Slide 27: Sale of Converged Services
Sale of Converged Services Change in competitive environment Regulatory issues Difficulty of reaching scale Shrinking video margins Increasing internet capacity demand and decreasing margins
Slide 28: Converged Services Users
Converged Services Users in thousands Data Video Voice
Slide 29: Converged Services Revenues
Converged Services Revenues in millions Data Video Voice
Slide 30: Shentel
<0” SHENTEL 211,462 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Slide 31: Customer Additions
Customer Additions in thousands
Slide 32: Gross Billed PCS Revenue
1 Before credits and fees 14.9% CAGR Gross Billed PCS Revenue 1 in millions
Slide 33: PCS Net Revenues
PCS Net Revenues in millions Up 19% Bad Debt Management Fee Service Credits Service Fee Net Revenue
Slide 34: PCS Gross Billed Revenue per Subscriber
PCS Gross Billed Revenue per Subscriber 1 1 Before credits and fees Voice Data
Slide 35: Tower Revenue
Tower Revenue in millions Towers Non-affiliate leases Non-affiliate Affiliate
Slide 36: Capital Expenditures – Wireless
Capital Expenditures – Wireless in millions # Cell Sites 411 478 % Covered POPs 77% 79% 85% 89% # EVDO Sites 211 318 EVDO % Covered POPs N/A 27% 86% 92% Other Capacity Coverage EVDO Mobile
Slide 37: Why Large Increase in Wireless Construction?
Why Large Increase in Wireless Construction? Keep ahead of capacity requirements Continue to roll out high speed data (EVDO) Coverage issues in Central PA
Slide 38: Sprint
Sprint Our relationship is still positive but affiliates not a priority Significant staff reductions Still losing customers but at a slower rate Improved customer service indexes Focusing on price advantage over Verizon and AT&T Playing defense rather than offense
Slide 39: Telephone Access Lines
Telephone Access Lines in thousands -0.7% CAGR
Slide 40: Telephone Revenues
Telephone Revenues 1 in millions 1 Includes internal revenues Local Subs Access Other
Slide 41: Internet Services Customers
Internet Services Customers in thousands 1 DSL only available within LEC area 2 Dial-up offered inside and outside the LEC area
Slide 42: Internet Services Revenues
Internet Services Revenues in millions DSL Dial-up 1 DSL only available within LEC area 2 Dial-up offered inside and outside the LEC area
Slide 43: Cable TV Subscribers
Cable TV Subscribers in thousands 1 Includes Rapid Communications acquisition – December 2008 Digital Basic
Slide 44: Rapid Cable Acquisition
Rapid Cable Acquisition December 2008 Alleghany County Virginia and throughout West Virginia 17,000 subscribers and 44,000 homes passed $10,000,000 purchase price or $590 per subscriber $25,000,000 system upgrades primarily in
Slide 45: Cable TV Overview
Cable TV Overview Complimentary (with LEC business) Offensive positioning (Outside ILEC) 60,000 homes passed One-way now, two-way in 2009/2010 Year end 2009 – HD, DVR, VOD, Internet, Voice
Slide 46: Annual Shareholder Meeting
Annual Shareholder Meeting May 5, 2009 SHENANDOAH TELECOMMUNICATIONS COMPANY
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