27 slides from Shenandoah Telecommunications's earnings presentation, Mar 7, 2011
Slide 1: 4Q 2010 Earnings Conference Call
4Q 2010 Earnings Conference Call March 7, 2011 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: 4Q'10 Highlights
4Q’10 Highlights q Customer Growth u Total wireless customers 302,653 at end of year u Total Cable RGUs 104,440 at end of year q Cable Expansion u November 30 th closed on the purchase of Suddenlink properties; 7,000 homes passed, 3,900 RGUs q Wireless u Significant growth in prepaid business which
Slide 6: Cable Highlights
Cable Highlights q Cable Upgrades u Former Rapid Communication systems complete u Former Jet Broadband markets work underway q Triple Play u High Speed data available to 89% and voice to 73% of acquired video homes passed at 12/31/10 q Sales Momentum u 2010 net RGU additions of 9,972
Slide 7: PCS Postpaid Customers (000s) - Wireless Highlights
PCS Postpaid Customers (000s) Wireless Highlights q Prepaid - 2010 net additions of 17,071 and 66,956 prepaid subs at q Steady Wireless growth - Postpaid customers up 6% in the last year q Postpaid Churn improves - Annual churn of 1.9% compared to 2.1% for 2009
Slide 8: 2010 Financial Highlights
Net Income (in millions) Net Income from Continuing Operations (in millions) 2010 Financial Highlights q JetBroadBand acquisition- related transaction costs - $3.1 million before tax and $1.8 million after tax q Prepaid - Net loss $.6 million pre-tax, $.4 million after-tax q Closed DB Pension Plan -
Slide 9: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance
Slide 10: Adjusted OIBDA ($ millions) - Profitability
Adjusted OIBDA ($ millions) Profitability
Slide 11: Segment OIBDA and Adjusted OIBDA reconciliation
a” SHENTEL Wireless Wireline Cable 2009 2010 2009 2010 2009 2010 Operating Income $40.2 $383 $12.6 $17.0 $ (6.1) $ (15.4) Depreciation and Amortization 20.3 23.2 8.3 7.9 3.7 11.3 OIBDA 60.5 61.5 20.9 24.9 (2.4) (4.1) Share Based Compensation 0.2 0.2 0.2 0.2 0.1 0.2 Pension settlement/ curtailment ex
Slide 12: Wireless Segment - Change in Adjusted OIBDA 2010 vs. 2009
Wireless Segment - Change in Adjusted OIBDA 2010 vs. 2009
Slide 13: Cable Segment - Change in Adjusted OIBDA 2010 vs. 2009
Cable Segment - Change in Adjusted OIBDA 2010 vs. 2009
Slide 14: Earle MacKenzie, EVP and COO
Earle MacKenzie EVP and COO
Slide 15: Key Operational Results - Wireless
PCS Postpaid Customers (000s) Key Operational Results - Wireless
Slide 16: Gross Additions and Net Additions - Postpaid
Gross Additions - Postpaid Net Additions - Postpaid Key Operational Results - Wireless n Continued postpaid net growth n Q4 2010 net adds of 5,112, a 68% increase over Q4 2009 n Q4 2010 churn of 1.8% down from 2.0% in Q4 n Decrease in churn from 2.1% for 2009 to 1.9% for
Slide 17: Gross Billed Revenue per Postpaid User - Data & Voice
Gross Billed Revenue per Postpaid User - Data & Voice 1 Key Operational Results - PCS 1 - Before Service credits, bad debt, Sprint Nextel fees.
Slide 18: Gross Billed Revenues - Postpaid ($ millions)
Gross Billed Revenues - Postpaid ($ millions) PCS Revenues $144.8 $151.2 *-The Net Service Fee percentage increased from 8.8% to 12% effective 6/1/10
Slide 19: Postpaid PCS Customers Top Picks Q4 2010
Postpaid PCS Customers Top Picks Q4 2010 n Top Service Plans - 63% of Gross Adds u Everything Data Family 1500 - 47% u Everything Messaging Family 1500 - 8% u Everything 450 - 8% n Top Devices - New Activations - All Channels u LG Rumor Touch 17% u HTC EVO 4G 14% u Samsung Seek 7% u LG Optimus S 6%
Slide 20: PCS Prepaid Statistics
PCS Prepaid Statistics Ø Acquired 49,885 prepaid subscribers effective 7/1/10 § Paid $138 per sub Ø Gross adds of 19,199 in Q4 2010 and 33,488 since 7/1/10 Ø Net adds of 10,775 in Q4 2010 and 17,071 since 7/1/10 Ø Ending subscribers of 66,956 Ø Churn rate of 4.6% for Q4 2010 and 4.9% since 7/1/10 Ø
Slide 21: Key Operational Results - Wireline
Access lines (000s) Internet Customers (000s) Key Operational Results - Wireline n Modest access line loss n Improved broadband penetration to over 50% n 8% growth in DSL customers since 12/31/09
Slide 22: RGU Growth by Quarter - Cable
RGU Growth by Quarter - Cable Net RGU growth excludes 1,754 RGU’s sold Q4’09 and 65,338 acquired Q3’10 and 4,245 acquired in Q4’10
Slide 23: Key Operational Results - Cable
Key Operational Results - Cable Note : Video homes passed includes 16K homes located in Shenandoah County, VA, where internet and voice services are not available from the cable company.
Slide 24: Capex Spending - Investing in the Future
Capex Spending Investing in the Future n Completed upgrade of 2008 Rapid acquisition in Q4 2010 n Completed hardening of Jet Network in Q4 2010 n Began upgrade of Farmville system to be completed in Q2 n All Virginia systems upgrades projected to be completed in n West Virginia systems upgrades to b
Slide 25: Shentel
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Slide 26: Shentel
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Slide 27: Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber
Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber