Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Sidoti Emerging Growth Institutional Investor Forum (March 2010)
37 slides from Shenandoah Telecommunications's conference presentation, Mar 23, 2010
Slide 1: Sidoti Emerging Growth Institutional Investor Forum
March 23, 2010 Sidoti Emerging Growth Institutional Investor Forum
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: Agenda
Agenda Introduction and Shentel Overview - Earle MacKenzie - EVP/COO Overview of Wireless Overview of Cable Overview of Wireline Financials - Adele Skolits - CFO
Slide 5: Shenandoah Telecommunications Company structure
Allocation Subsidiary Wireline Entities Wireless Entities Shenandoah Telecommunications Company Shentel Cable Company Shentel Service Company Shenandoah Mobile Company Shenandoah Cable Television Company Shentel Management Company Shentel Communications Company Shenandoah Telephone Company Shenandoa
Slide 6: Business Overview
Business Overview n Public company with 4,400+ shareholders u ≈ 70% individual / 30% institutional n Sprint PCS Affiliate of Sprint Nextel n Profitable n Strong growth n Healthy balance sheet n Continuity of ownership & management n Focused business plan
Slide 7: Growth Strategy - Capitalize on Core Competencies
Growth Strategy - Capitalize on Core Competencies n Wireless u Increase penetration in existing PCS footprint u Look for new wireless opportunities in surrounding geographic areas n Cable u Focus on smaller less competitive markets u Build clusters to gain operating efficiencies u Upgrade networks t
Slide 8: Segment Overview
Segment Overview Year Ending December 31, 2009 Total External Revenues = $160.6 million Operating Income Before Depreciation & Amortization (OIBDA) by Segment Revenue by Segment
Slide 9: Agenda
Agenda Introduction and Shentel Overview Overview of Wireless Overview of Cable Overview of Wireline Financials
Slide 10: PCS Overview
PCS Overview n Only remaining public Sprint Nextel affiliate n 2.3 million licensed POPs n 2.0 million covered POPs n 223k total subscribers u 11.0% penetration of covered POPs n 476 CDMA base stations n 334 EVDO enabled cell sites u 95% EVDO covered POPs n $41,000 Estimated Average household income
Slide 11: Profile of the Sprint Nextel Relationship
Profile of the Sprint Nextel Relationship • Current contract through 2019 with two 10 year extensions • Upon expiration of contract - Shentel compensated based on enterprise value • Settlement simplification in place through contract unless amended by both parties Ø 8% of Revenue - Spectrum, Brand,
Slide 12: Key Operational Metrics - PCS
Retail Subscribers (000s) Number of Cell Sites Churn (%) Key Operational Metrics - PCS Periods Ending December 31 EVDO Sites Non-EVDO Sites
Slide 13: Attractive Service Revenue Growth - PCS
Gross Billed PCS Revenue ($ millions) 1 Attractive Service Revenue Growth - PCS 12 Months Ending 1 Before credits and fees 13 % CAGR
Slide 14: PCS Billed Revenue
Billed Revenue ($ millions) PCS Revenues 12 Months Ending Up 8% Bad Debt Management Fee Service Credits Service Fee Net Revenue
Slide 15: Gross Billed Revenue per Subscriber
Gross Billed Revenue per Subscriber 1 PCS Revenue per Subscriber Period Ending
Slide 16: Wireless Segment Revenue and OIBDA
Reported Revenue ($ millions) OIBDA ($ millions) Wireless Segment 12 Months Ending 13% CAGR
Slide 17: Capital Expenditures - Wireless
Capital Expenditures by Category ($ millions) Capital Expenditures - Wireless 12 Months Ending # Cell Sites 346 411 476 503 % Covered POPs 79% 85% 87% 88% # EVDO Sites 52 211 334 365 % POPs Covered 27% 86% 94% 95% Other Capacity Coverage EVDO Towers
Slide 18: Agenda
Agenda Introduction and Shentel Overview Overview of Wireless Overview of Cable Overview of Wireline Financials
Slide 19: Cable TV Overview
Cable TV Overview n Complimentary (with LEC business) u 15k Homes Passed u 8k Video Subscribers n Offensive positioning (Outside ILEC) u 36k Homes Passed u 15k Video and 2k Internet Subscribers n All two-way by Q3 2010
Slide 20: RGUs (000s)
RGUs (000s) Excludes markets sold in November 2009 for all periods shown and only includes internet for areas outside ILEC service area Digital Internet Basic
Slide 21: Cable TV Revenue and OIBDA
Revenue ($ millions) OIBDA ($ millions) Cable TV 12 Months Ending Includes Rapid Communications acquisition December 1, 2008
Slide 22: Agenda
Agenda Introduction and Shentel Overview Overview of PCS Overview of Cable Overview of Wireline Financials
Slide 23: Wireline Customers
Wireline Customers December 31, 2009 n 24.4k LEC access lines n Acquisition of North River Telephone closed November 2 nd u 0.9k access lines n 11.0k DSL subscribers u 45% Penetration of Access Lines n 3.4k dial-up Internet subscribers n 10.9k long distance subscribers n One FTTH community in servic
Slide 24: Access Lines and Internet Customers
Access lines (000s) Internet Customers (000s) -0.2% CAGR 1 DSL only available within LEC area 2 Dial-up offered inside and outside the LEC area Wireline Customers NRTC 0.9K access lines acquired 11/2/2009
Slide 25: Wireline Revenue and OIBDA
Revenue ($ millions) OIBDA ($ millions) Wireline Overview 12 Months Ending
Slide 26: Agenda
Agenda Introduction and Shentel Overview Overview of PCS Overview of Wireline Overview of Cable Financials - Adele Skolits - CFO
Slide 27: Net Income from Continuing Operations and Revenue
Net Income from Continuing Operations ($ millions) Revenue ($ millions) 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated. Wireless Wireline Cable
Slide 28: Operating Income and OIBDA
Operating Income ($ millions) Operating Income Before Depreciation & Amortization ($ millions) 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated.
Slide 29: Earnings Per Share - Key Financial Results
Earnings Per Share - Continuing Operations 1 Earnings Per Share - Net Income Key Financial Results - Consolidated 12 Months Ending 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated. 2 Includes $10.7 million write down of Converged Service Busi
Slide 30: Capital Expenditures by Segment
Capital Expenditures by Segment ($ millions) Total Capex 12 Months Ending
Slide 31: Shentel
” SHENTEL
Slide 32: Appendix
Appendix
Slide 33: Non-GAAP Financial Measure - Billed Revenue per Subscriber
Non-GAAP Financial Measure - Billed Revenue per Subscriber Period Ending
Slide 34: Non-GAAP Financial Measure - OIBDA 2009
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $40,175 $12,576 ($6,070) ($3,854) $42,827 Depreciation and amortization 20,293 8,317 3,700 320 32,630 OIBDA $60,468 $20,893 ($2,370) ($3,534) $75,457 Non-GAAP Financial Measure - OIBDA 12 Months Ended 12/31/2009
Slide 35: Non-GAAP Financial Measure - OIBDA 2008
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $35,877 $14,749 ($916) ($4,499) $45,211 Depreciation and amortization 17,450 7,666 1,250 304 26,670 OIBDA $53,327 $22,415 $334 ($4,195) $71,881 Non-GAAP Financial Measure - OIBDA 12 Months Ended 12/31/2008
Slide 36: Non-GAAP Financial Measure - OIBDA 2007
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $31,024 $12,428 ($1,813) ($5,365) $36,274 Depreciation and amortization 16,254 6,138 1,050 235 23,677 OIBDA $47,278 $18,566 ($763) ($5,130) $59,951 Non-GAAP Financial Measure - OIBDA 12 Months Ended 12/31/2007
Slide 37: Sidoti Emerging Growth Institutional Investor Forum
March 23, 2010 Sidoti Emerging Growth Institutional Investor Forum