Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q3 2022 Earnings Presentation
28 slides from Shenandoah Telecommunications's earnings presentation, Nov 2, 2022
Slide 1: Q3 2022 Earnings Conference Call
Q3 2022 Earnings Conference Call November 2, 2022
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 our business strategy, our prospects and our financial position. These statements can be
Slide 3: Chris French, President and CEO
Chris French President and CEO 3
Slide 4: Well Positioned in Current Environment
Well Positioned in Current Environment • Growing data subscribers and revenues • Winning market share against Cable • Strong momentum in expanding greenfield Fiber-to-the-home (“FTTH”) network • Ability to successfully execute growth plan ◦ Continuity in network leadership team since FTTH strategy l
Slide 5: Accelerating Glo Fiber Net Additions
Accelerating Glo Fiber Net Additions Glo Fiber Data Net Additions 5
Slide 6: Clear Visibility in Fiber Network Expansion
Clear Visibility in Fiber Network Expansion Fiber Network Home and Business Passings 480,000 457,000 *Q3'22 Franchise/Grant Passings and 2026 Target figures are not presented in-scale with Glo Fiber passings. (1)Represents 438,000 passings under Glo Fiber franchise agreements and 19,000 unserved hom
Slide 7: Jim Volk, SVP of Finance and CFO
Jim Volk SVP of Finance and CFO 7
Slide 8: Broadband Highlights - Third Quarter Results
Broadband Highlights - Third Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) (0.2)% 7.7% 38.5% 35.7% margin margin 8
Slide 9: Tower Highlights - Third Quarter Results
Tower Highlights - Third Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) 5.1% 15.1% 59.3% 64.9% margin margin 9
Slide 10: Consolidated Highlights - Third Quarter Results
Consolidated Highlights - Third Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) 7.5% 0.2% Consolidated revenue includes elimination of intercompany activity. 10
Slide 11: Liquidity & Free Cash Flow
Liquidity & Free Cash Flow Liquidity (in millions) Free Cash Flow (in millions) 11
Slide 12: Debt Maturity & Other Liquidity Events
Debt Maturity & Other Liquidity Events Debt Maturity (in millions) • $30 million in income tax refunds expected to be received in 4Q22 • $4 million refund of certain CBRS spectrum deposits expected in 4Q22 • $17 million in cash sale proceeds of certain spectrum assets likely to close in first half 2
Slide 13: Ed McKay, EVP and COO
XG a Ed McKay EVP and COO
Slide 14: Integrated Fiber and Cable Broadband Network
Integrated Fiber and Cable Broadband Network 14
Slide 15: Broadband - Fiber Construction Metrics
Broadband - Fiber Construction Metrics Glo Fiber Franchise Approved Passings Glo Fiber Passings Released to Sales Government Grant Approved Fiber Passings Total Fiber Construction Backlog Passings 15
Slide 16: Broadband - Glo Fiber Operating Metrics
Broadband - Glo Fiber Operating Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 16
Slide 17: Vintage Glo Fiber Penetration
Vintage Glo Fiber Penetration Vintage Glo Fiber Penetration1 Passings released 18,389 16,886 11,764 6,047 8,670 1,802 to sales Quarter launched # of months after 3 months 9 months 15 months 21 months 27 months 33 months quarter launched 1 Penetration rates as of 9/30/2022 17
Slide 18: Broadband - Incumbent Cable Metrics
Broadband - Incumbent Cable Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 18
Slide 19: Incumbent Cable Network Roadmap Highlights
Incumbent Cable Network Roadmap Highlights • $74 million investment in cable system upgrades over the next five years, including DOCSIS 4.0 and FTTH overbuilds. • ~ $350 per home passed • 24% of homes overbuilt with fiber with focus on dense markets • 76% of homes upgraded to high or mid splits • Ex
Slide 20: Network Evolution to be Fiber Centric
Network Evolution to be Fiber Centric Fiber overbuilder of Greenfield fiber overbuilder Shentel position Incumbent cable Greenfield fiber incumbent Shentel cable Higher density tier III / IV Market type Mostly rural Dense incumbent markets Unserved rural markets Target market dynamic Target Passing
Slide 21: Broadband - Commercial Fiber Metrics
Broadband - Commercial Fiber Metrics MRR & MAR Sales Bookings Installed MRR & MAR1 Backhaul Connections Monthly Compression and Disconnect Churn 1. MRR = Monthly Recurring Revenue; MAR = Monthly Amortized Revenue 21
Slide 22: Tower - Metrics
Tower - Metrics Towers Tenants 22
Slide 23: Capital Expenditures
Capital Expenditures Capex Spending ($ in millions) $190 - $210 $145 - $155 $10 - $15 $35 - $40 *2022 Target figures are not presented in-scale with Q3'21 and Q3'22 actual figures. 23
Slide 24: Q&A
Q&A AXSHENTEL
Slide 25: Appendix
HENTEL Appendix
Slide 26: 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 U.S. generally accepted accounting principles. These financial performance measures are not indicative of cash provided or used by operating activities
Slide 27: Adjusted EBITDA by Segment - Quarterly Results
Adjusted EBITDA by Segment - Quarterly Results Three Months Ended September 30, 2022 Corporate & (in thousands) Broadband Tower Eliminations Consolidated Net income (loss) from continuing operations $ 4,752 $ 2,590 $ (10,070) $ (2,728) Depreciation and amortization 16,791 445 637 17,873 Impairment e
Slide 28: Broadband - Average Revenue per User (ARPU)
Broadband - Average Revenue per User (ARPU) For the third quarter ended, 2021 2022 Residential & SMB Revenue (000's) Broadband $ 26,590 $ 30,670 Incumbent Cable $ 24,780 $ 26,502 Glo Fiber $ 1,810 $ 4,168 Video $ 15,391 $ 14,914 Voice $ 2,968 $ 3,041 Average Revenue Generating Units Broadband 112,33
Shenandoah Telecommunications Company — Q3 2022 Earnings Presentation on 6ix