23 slides from Shenandoah Telecommunications's earnings presentation, Jul 29, 2009
Slide 1: 2Q 2009 Earnings Conference Call
2Q 2009 Earnings Conference Call July 29, 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: 2Q '09 Highlights: Net Income
Net Income (in millions) Net Income from Continuing Operations (in millions) 2Q ‘09 Highlights q Net Income - 2Q ‘09 net income of $6.7 million q Discontinued Operations - Converged Services sale in progress q Operating results - Net income from continuing operations of $6.8 million
Slide 6: 2Q '09 Highlights: Cell Sites and Cable
Number of Cell Sites 2Q ‘09 Highlights n Cable Triple Play - Covington, VA upgrade of cable plant complete, upgrade of significant remaining markets in progress, billing systems transitioned n Investment in wireless for sustained growth - 41 additional EVDO sites and 13 additional cell sites 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 - Quarter over Quarter EPS n EPS - EPS of $.29 for 2Q ’09 n Delivering value for Shareholders - - EPS from continuing operations $.29 in 2Q ‘09
Slide 9: Segment Results - Operating Income
Segment Results - Operating Income Wireless n Average customers up 9% and Gross billings up 14% n Operating costs associated with PCS network upgrades of $.5 million n Non-recurring income - 2Q ‘08 included receipt of $1.1 in USF funds from Sprint for prior periods Wireline n Increased network and d
Slide 10: OIBDA for the Quarter Ended
OIBDA for the Quarter Ended ($ millions) Profitability Maintaining profitability while investing in growth
Slide 11: Cash Flows
Cash Flows ($ millions) Cash Flows n Strong operating cash flow - 92% growth in cash generated by operations n Capex Well Supported - Increased capital expenditures supported more than adequately by operating cash flow and debt facility n Future Cash Flows - New debt facility has equal amortization
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 decrease in churn from 2.15% in Q1 ‘09 to 2.07% in Q2 ‘09, but an increase from 1.74% in Q2 ‘08 n Lower bad debt in Q2 ‘09 compared to Q2 ’08 (from $1.8m to $1.6m)
Slide 15: Gross Billed Revenue per User - Data & Voice
Gross Billed Revenue per User - Data & Voice 1 Key Operational Results - PCS n Gross Billed revenue per subscriber continues to grow - - Data revenues growth continues 1 - Before Service credits, bad debt, Sprint Nextel fees. See reconciliation of Non-GAAP financial measures on slide 23. Prior to Ja
Slide 16: Gross Billed Revenues - PCS Revenues
Gross Billed Revenues ($ millions) PCS Revenues $32.6 $35.9
Slide 17: PCS Customers Top Picks Q2 2009
PCS Customers Top Picks Q2 2009 n Top Service Plans - 48% of Gross Adds u Everything Messaging Family u Everything Data Family u Simply Everything n Top Devices - Shentel Controlled Channels u LG Rumor 15% u Samsung Rant 10% u Mobile Data Cards 9% u Samsung HighNote 9% u LG Lotus 8% n 62% of Equipme
Slide 18: Key Operational Results - Telco
Access lines (000s) Internet Customers (000s) Key Operational Results - Telco n Modest access line loss n 43% data 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 19: Key Operational Results - Cable
Number of Customers (000’s) Key Operational Results - Cable n Integrating acquisition of 17,000 new customers n Converting acquired systems to our billing platform n Upgrade underway to enable us to offer triple play to 85% of acquired homes passed by year end 2009 n Re-launch of the first acquired
Slide 20: Capex Spending - Investing in the Future
Capex Spending Investing in the Future n Expanding wireless coverage & capacity with 21 new cell sites and data with 67 EVDO sites 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 services
Slide 21: Shentel
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Slide 22: Shentel
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Slide 23: Non-GAAP Financial Measure - Billed Revenue per Subscriber
Non-GAAP Financial Measure - Billed Revenue per Subscriber