Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q3 2009 Earnings Presentation
24 slides from Shenandoah Telecommunications's earnings presentation, Nov 4, 2009
Slide 1: 3Q 2009 Earnings Conference Call
3Q 2009 Earnings Conference Call November 4, 2009 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. 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: 3Q '09 Highlights
Net Income (in millions) Net Income from Continuing Operations (in millions) 3Q ‘09 Highlights q Net Income - 3Q ‘09 net income of $6.3 million q Operating results - Net income from continuing operations of $6.3 million q Cable Loss - Net loss from the acquired cable operations of $.8 million
Slide 6: 3Q '09 & More Recent Highlights
Number of Cell Sites 3Q ’09 & More Recent Highlights n Cable Triple Play - 40% of acquired homes passed upgraded through Nov.1 n Investment in wireless for sustained growth - 16 additional cell sites and 28 additional EVDO sites n Discontinued Operations - Converged Services sale in progress n Acqui
Slide 7: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance
Slide 8: Earnings Per Share
Earnings Per Share Earnings per Share from Continuing Operations EPS n Solid Earnings- EPS from continuing operations and in total of $.27 in 3Q ’09
Slide 9: Segment Results - Operating Income
Segment Results - Operating Income Wireless n Average customers up 7% and service revenues up 4% n Operating costs associated with PCS network upgrades up $1.2 million in cost of goods sold and $.9 million in depreciation Wireline n Non-recurring income - 3Q ‘08 included adjustment of $.6 in retroac
Slide 10: Profitability - OIBDA for the Quarter
OIBDA for the Quarter Ended ($ millions) Profitability n Maintaining profitability while investing in growth - OIBDA margin of 47% for 3Q’09
Slide 11: Cash Flows
Cash Flows ($ millions) Cash Flows n Increased operating cash flow - Cash generated by operations 3 times Q3’08 n Capex Well Supported - Increased capital expenditures supported more than adequately by operating cash flow and debt facility n Positioned to deliver for shareholders - Ability to be opp
Slide 12: Earle MacKenzie, EVP and COO
Earle MacKenzie EVP and COO
Slide 13: Key Operational Results - PCS: Retail Subscribers
Retail Subscribers (000s) Key Operational Results - PCS
Slide 14: Key Operational Results - PCS: Gross and Net Additions
Gross Additions Net Additions Key Operational Results - PCS n Modest increase in churn from 2.07% in Q2 ‘09 to 2.17% in Q3 ‘09, an increase from 1.85% in Q3 ‘08 n Bad Debt write-offs in Q3‘09 of 5.3% of gross revenues versus 5.5% in Q3’08 n Credits and adjustments down from 11.6% of gross revenues i
Slide 15: Gross Billed Revenue per User - Data & Voice
Gross Billed Revenue per User - Data & Voice 1 Key Operational Results - PCS n Data revenues growth continues to grow 1 - Before Service credits, bad debt, Sprint Nextel fees. See reconciliation of Non-GAAP financial measures on slide
Slide 16: PCS Gross Billed Revenues
Gross Billed Revenues ($ millions) PCS Revenues $35.0 $36.4
Slide 17: PCS Customers Top Picks Q3 2009
PCS Customers Top Picks Q3 2009 n Top Service Plans - 49% of Gross Adds u Everything Messaging Family u Everything Data Family u Simply Everything n Top Devices - Shentel Controlled Channels u LG Rumor 2 19% u Sanyo 2700 12% u Samsung Exclaim 8% u Blackberry Curve 6% u Sanyo Katana LX 6% u Mobile Da
Slide 18: Meeting PCS Customer Needs
Number of Cell Sites Meeting PCS Customer Needs n On track to complete 2009 construction plans n Expanded data offering u Over 94% POP’s with EVDO coverage n PA coverage improved n Capacity increased
Slide 19: Key Operational Results - Wireline
Access lines (000s) Internet Customers (000s) Key Operational Results - Wireline n Modest access line loss n 45% broadband penetration n 2009 & 2010 Capex to increase broadband speeds to 10Mbps+ 1 DSL only available within LEC area 2 Dial-up offered inside and outside the LEC area
Slide 20: Key Operational Results - Cable
Revenue Generating Units(000’s) Key Operational Results - Cable n Integrating acquisition of 17,000 new customers n Converted acquired cable systems to our billing platform n Re-launch of 40% of the cable systems with 2 way video and internet n Upgrade underway to enable us to offer triple play to 5
Slide 21: Investing in the Future - Capex Spending
Capex Spending Investing in the Future n Expanding wireless coverage & capacity with 64 new cell sites and data with 125 EVDO sites in 2009 n Increasing broadband speeds to 10 MB in LEC area n Increased miles and capacity of fiber n Upgrade of cable systems to 2 -way to provide triple play of servic
Slide 22: Shentel
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Slide 23: Shentel
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Slide 24: Non-GAAP Financial Measure - Billed Revenue per Subscriber
Dollars in thousands (except subscribers and revenue per subscriber) 3Q ‘08 3Q ‘09 Gross billed revenue Wireless segment total operating revenues $27,526 $28,690 Equipment revenue (1,409) (1,046) Other revenue (1,877) (2,357) Wireless service revenue 24,240 25,287 Service credits 4,000 3,987 Write-o
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