Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q4 2012 Earnings Presentation
36 slides from Shenandoah Telecommunications's earnings presentation, Mar 1, 2013
Slide 1: 4Q 2012 Earnings Conference Call
March 1, 2013 4Q 2012 Earnings Conference Call
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: President and CEO
President and CEO
Slide 5: 4Q'12 Highlights
4Q’12 Highlights n 4G LTE Progress at 12/31/12 § 224 Sites upgraded to NV equipment § 200 with 4G LTE in service n Improved Returns from Prepaid § Q4 Update of Prepaid settlement rates with Sprint § $11.8M received, cost reduction covering July 2010 through September 2012
Slide 6: 2012 Financial Highlights
Revenue ($ millions) Adjusted OIBDA ($ millions) 2012 Financial Highlights
Slide 7: Wireless Highlights
PCS Customers (000s) Wireless Highlights q Steady Postpaid growth Postpaid customers up 5.7 % in the last year q Rapid Prepaid Growth Q4’12 net additions of 5,723 ; 128k prepaid subs at 12/31 q Churn improves § Postpaid churn 1.87% for 4Q’12, down from 1.89% for 4Q’11. § Prepaid Q4’12 churn of 3.71
Slide 8: Cable Highlights
Cable Highlights n RGU Growth n Total RGU growth of 2.7% during 2012 n 114,891 RGUs at 12/31/2012 n Cable Upgrades n Started the final planned upgrade to markets acquired in mid-2010. n Non-cash Impairment Charge n Result of annual testing; wrote off $11.0 million of goodwill
Slide 9: VP of Finance and CFO
VP of Finance and CFO
Slide 10: Profitability: Adjusted OIBDA
Adjusted OIBDA ($ thousands) Profitability
Slide 11: Growth in Adjusted OIBDA
Adjusted OIBDA Adjusted OIBDA Growth in Adjusted OIBDA ($ thousands)
Slide 12: Earnings per share from continuing operations
$0.65 $0.69 $0.57 2011 2012 m Earnings per share from continuing operations Adjusted earnings per share from continuing operations AXSHENTEL
Slide 13: Adjusted OIBDA by Segment
Adjusted OIBDA by Segment ($ millions)
Slide 14: Wireless Segment - Change in Adjusted OIBDA
Wireless Segment - Change in Adjusted OIBDA Q4’12 vs. Q4’11 ($ millions)
Slide 15: Key Operational Results - Mobile Company
Mobile Company Revenue ($ millions) Towers and Leases Key Operational Results - Mobile Company
Slide 16: Cable Segment - Change in Adjusted OIBDA
Cable Segment - Change in Adjusted OIBDA Q4’12 vs. Q4’11 ($ millions)
Slide 17: Earle MacKenzie
_— Earle MacKenzie AXSHENTEL
Slide 18: Network Vision Scorecard - as of 2/25/13
Network Vision Scorecard - as of 2/25/13 To Date: Leasing & Zoning Complete 413 out of 520 year-end sites Sites on air 267 out of 520 year-end sites Sites with 4G LTE launched 222 out of 520 year-end sites n Sites on air have more than tripled since end of Q3 2012 n 4G LTE currently available to 67%
Slide 19: PCS Postpaid Customers
PCS Postpaid Customers (000s) Key Operational Results - Wireless
Slide 20: Key Operational Results - Wireless
Annual Gross Additions - Postpaid Annual Net Additions - Postpaid Key Operational Results - Wireless n Net adds of 4,025 in Q4 2012 versus 5,072 in Q4 2011 n Q4 2012 churn of 1.87% down from 1.89% in Q4 2011 n Shentel-controlled channels produced 49% of gross adds in Q4 2012 and 55% in Q4 2011 n 201
Slide 21: Gross Billed Revenue per Postpaid User
Gross Billed Revenue per Postpaid User - Data & Voice 1 Key Operational Results - PCS 1 - Before Service credits, bad debt, Sprint Nextel fees.
Slide 22: PCS Revenues: Annual Gross Billed Revenues - Postpaid
Annual Gross Billed Revenues - Postpaid ($ millions) PCS Revenues
Slide 23: Postpaid PCS Customers Top Picks Q4 2012
Postpaid PCS Customers Top Picks Q4 2012 n Smartphones made up 65 % of the Postpaid base in Q4 2012, up from 53% in Q4 2011 and 61% in Q3 2012 n Top Service Plans - 72 % of Gross Adds ► Everything Data 1500 - 56% ► Everything Data 450 - 16% n Top Devices - New Activations - All Channels ► iPhone 24
Slide 24: iPhone Statistics - Q4'12
iPhone Statistics - Q4’12 n 24% of Q4 Gross Adds n 34% of iPhones were sold or upgraded in Shentel- controlled channels n 17.9% of 12/31/2012 Postpaid customers had the iPhone, up from 13.2% at 9/30/12 n 54% iPhone 4S n 33% iPhone 4 n 13% iPhone 5
Slide 25: PCS Prepaid Statistics
Gross Additions (000s) Cumulative Customers (000s) PCS Prepaid Statistics
Slide 26: PCS Prepaid Statistics: Churn and Revenue
Churn % Average Gross Billed Revenue PCS Prepaid Statistics
Slide 27: Cable - RGU Growth by Quarter
Customers 75,131 75,348 76,130 74,726 74,798 RGU's/Customer 1.49 1.51 1.48 1.54 1.54 Cable - RGU Growth by Quarter
Slide 28: Cable Statistics
Average Monthly Revenue per RGU Average Monthly Revenue per Customer* Cable Statistics *Average monthly revenue per video subscriber was $84.46 and $99.30 for Q4 2011 and Q4 2012, respectively.
Slide 29: Key Operational Results - Cable
Key Operational Results - Cable
Slide 30: Key Operational Results - Wireline
Access lines (000s) DSL Customers (000s) Key Operational Results - Wireline n Access line loss of 3.4 % in past 12 months n Broadband penetration in LEC area at 56 % n 1.7 % growth in DSL customers since 12/31/2011. n Total connections at 12/31/12 of 34.9 thousand
Slide 31: Wireline Statistics - Fiber Sales
Fiber Lease Revenue New External Fiber Lease Contracts * Wireline Statistics - Fiber Sales ($ millions) * Amounts shown represent the total contract value. Contract Terms range from 36 to 120 months.
Slide 32: Investing in the Future: Capex Spending
Capex Spending ($ millions) Investing in the Future n Last Cable upgrade of 10,000 homes passed is underway and expected to be complete in 2013. n Network Vision spend of $55M in 2012. Budget of $60M in 2013. n Success-based spending is 23% of total 2013 budget. * Capex spending for 2012 includes $2
Slide 33: Shentel
AXSHENTEL
Slide 34: Shentel
AXSHENTEL
Slide 35: Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber
Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber
Slide 36: Non-GAAP Financial Measure - Adjusted Earnings Per Share
Non-GAAP Financial Measure - Adjusted Earnings Per Share
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