Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q1 2024 Earnings Presentation
24 slides from Shenandoah Telecommunications's earnings presentation, May 3, 2024
Slide 1: Q1 2024 Earnings Conference Call
Q1 2024 Earnings Conference Call May 3, 2024
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: Transformative Transactions
Transformative Transactions • Announced and closed $310 million sale of our towers • Closed on $275 million credit facility upsizing • Closed on $81 million preferred equity financing • Closed on $385 million Horizon Telcom acquisition • Implemented leadership changes in Ohio markets; added Glenn Ly
Slide 5: Fiber First Strategy Update
Fiber First Strategy Update • Announced brand change to Glo Fiber and implemented new rate card in Ohio markets • Upsized annual run-rate Horizon expense synergy target to $10.6 million; Realized ~ 45% of synergy savings as we enter May; Expect to complete integration and realize full synergies in f
Slide 6: Super-Regional Commercial Fiber Network
Super-Regional Commercial Fiber Network 6
Slide 7: Integrated Fiber and Cable Broadband Network
Integrated Fiber and Cable Broadband Network 7
Slide 8: Jim Volk, SVP of Finance and CFO
Jim Volk SVP of Finance and CFO 8
Slide 9: Consolidated Highlights - Continuing Operations
Consolidated Highlights - Continuing Operations Revenue (in millions) Adjusted EBITDA (in millions) 3.1% 9
Slide 10: Pro-forma Liquidity
Pro-forma Liquidity Change in Cash (in millions) Liquidity (in millions) 10
Slide 11: Pro-forma Capital Structure
Pro-forma Capital Structure Pro-forma Net Debt 4/1/2024 (in millions) Pro-forma Fully Diluted O/S - 4/1/2024 (in millions) 11
Slide 12: 2024 (9 months) Horizon Financial Expectations & Key Metrics
2024 (9 months) Horizon Financial Expectations & Key Metrics Revenue and Adjusted EBITDA ($ in millions) Residential/SMB Fiber Passings @3/31/2024 $50 - $54 $12 - $16 Capital Expenditures ($ in millions) Commercial Fiber MRR/MAR Backlog @3/31/2024 $30 - $39 $17 - $23 $8 - $10 $5 - $6 12
Slide 13: Ed McKay, EVP and COO
Ed McKay EVP and COO 13
Slide 14: Broadband - Fiber Construction Metrics
Broadband - Fiber Construction Metrics Glo Fiber Franchise Approved Passings Fiber Passings Released to Sales Government Grant Approved Fiber Passings1 Total Fiber Construction Backlog Passings 1 Q4'23 and Q1'24 grant approved fiber passings exclude 3,500 and 3,500, respectively, additional passings
Slide 15: Broadband - Glo Fiber Operating Metrics
Broadband - Glo Fiber Operating Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 15
Slide 16: Vintage Glo Fiber Penetration
Vintage Glo Fiber Penetration Vintage Glo Fiber Penetration1 Expected Average Terminal Penetration 38% Passings released 25 31 20 21 17 16 18 19 18 14 14 12 6 6 9 8 4 2 to sales (000's) Quarter Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 launched 2024 2023 2022 2021 2020 2019 1 Homes passe
Slide 17: Broadband - Cable Markets Metrics
Broadband - Cable Markets Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 17
Slide 18: Broadband - Commercial Fiber Metrics
Broadband - Commercial Fiber Metrics MRR & MAR Sales Bookings1 Installed MRR & MAR1, 2 MRR/MAR Backlog Monthly Compression and Disconnect Churn 1. Excludes any voice, bulk residential, or small/medium business services sold to enterprise, wholesale, or government/education customers 2. MRR = Monthly
Slide 19: Capital Expenditures
Capital Expenditures Capex Spending ($ in millions) $30 - $34 $180 - $200 $10 - $12 $39 - $43 Note: 2024 Guidance not shown to scale 19
Slide 20: Q&A
Q&A AXSHENTEL
Slide 21: Appendix
HENTEL Appendix
Slide 22: 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 23: Adjusted EBITDA - Quarterly Results
Adjusted EBITDA - Quarterly Results Three Months Ended March 31, (in thousands) 2024 2023 (Loss) income from continuing operations $ (4,090) $ 741 Depreciation and amortization 17,443 15,269 Other expense (income), net 2,340 (1,117) Income tax (benefit) expense (1,026) 682 Stock-based compensation 3
Slide 24: Broadband - Average Revenue per User (ARPU)
Broadband - Average Revenue per User (ARPU) For the first quarter ended, 2023 2024 Residential & SMB Revenue (000's) Broadband $ 33,174 $ 38,581 Cable Markets $ 27,273 $ 27,798 Glo Fiber Markets $ 5,901 $ 10,783 Video $ 14,645 $ 14,394 Voice $ 3,030 $ 3,023 Discounts, Adjustments, and Other $ 910 $
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