Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q4 2024 Earnings Presentation
24 slides from Shenandoah Telecommunications's earnings presentation, Feb 20, 2025
Slide 1: Q4 2024 Earnings Conference Call
Q4 2024 Earnings Conference Call February 20, 2025
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: Horizon Integration & Synergies Update
Horizon Integration & Synergies Update • Completed integration of six core back-office systems in nine months from closing • Upsizing of annual run-rate synergy savings to $13.8 million o Realized $4.5 million in 2024 o Expect to realize an additional $8.5 million in 2025 o Expect to realize remaini
Slide 5: Accelerating Pace of Construction and Sales
Accelerating Pace of Construction and Sales Glo Fiber Passings Released to Sales Glo Fiber Data Net Additions 38% CAGR 52% CAGR 2024 includes 9 months of Horizon net additions and passings constructed and released to sales, but excludes acquired RGUs and passings 5
Slide 6: Glo Fiber Fueling Consolidated Revenue Growth
Glo Fiber Fueling Consolidated Revenue Growth Glo Fiber Data RGUs Glo Fiber Revenue (in millions) 99% CAGR 135% CAGR 2024 includes 1,831 acquired Horizon RGUs and 9 months of Horizon Glo Fiber Expansion Markets revenues 6
Slide 7: Jim Volk, SVP of Finance and CFO
Jim Volk SVP of Finance and CFO 7
Slide 8: Consolidated Highlights - Full Year Results
Consolidated Highlights - Full Year Results Revenue (in millions) Adjusted EBITDA (in millions) 19.7% 21.9% 28.8% 29.4% margin margin 8
Slide 9: Consolidated Highlights - Full Year Results
Consolidated Highlights - Full Year Results Revenue (in millions) Adjusted EBITDA (in millions) 9% CAGR 18% CAGR Consolidated revenue includes elimination of intercompany activity. 2020 - 2023 include Tower segment results and exclude Horizon results 2024 includes 9 months of Horizon results and exc
Slide 10: Liquidity & Free Cash Flow
Liquidity & Free Cash Flow Liquidity (in millions) Debt Maturity (in millions) 10
Slide 11: Ed McKay, EVP and COO
Ed McKay EVP and COO 11
Slide 12: Integrated Fiber and Cable Broadband Network
Integrated Fiber and Cable Broadband Network 12
Slide 13: Fiber Construction Metrics
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 Q4'24 grant approved fiber passings exclude 3,500 additional passings to be constructed using DOCSIS techn
Slide 14: Glo Fiber Expansion Markets Operating Metrics
Glo Fiber Expansion Markets Operating Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 14
Slide 15: Vintage Glo Fiber Penetration
Vintage Glo Fiber Penetration Vintage Glo Fiber Penetration1 Expected Average Terminal penetration 37% Passings released to 27 22 22 25 31 20 21 17 16 18 19 18 14 14 12 6 6 9 8 4 2 sales (000's) Quarter Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 launched 2024 2023 2022 2021 2020
Slide 16: Incumbent Broadband Operating Metrics
Incumbent Broadband Operating Metrics1 Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 1. Consists of Incumbent Cable Markets and Incumbent Telephone Markets with FTTH passings 16
Slide 17: Commercial Fiber Metrics
Commercial Fiber Metrics MRR & MAR Sales Bookings Installed MRR & MAR1 MRR/MAR Backlog Monthly Compression and Disconnect Churn2 1MRR = Monthly Recurring Revenue; MAR = Monthly Amortized Revenue 2Excludes impact of T-Mobile network rationalization 17
Slide 18: Capital Expenditures ($ in millions)
Capital Expenditures ($ in millions) Capex Spending1 $299.8 $250 - $280 $253.2 $175 - $190 $35 - $40 $40 - $50 1Net of government grant reimbursements 18
Slide 19: Capital Intensity expected to decline sharply at the end of construction phase
Capital Intensity1 expected to decline sharply at the end of construction phase Capital Intensity1 2 2 2 94% 91% 334% 519% 45% 33% 20% - 25% 15% - 25% 30% 37% 20% - 30% 15% - 25% 1Capital Intensity = Gross CapEx Less Government Subsidies / Revenue 2Includes government-subsidized builds in 2023 and 2
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 by Segment - Full Year Results
Adjusted EBITDA by Segment - Full Year Results Year Ended December 31, (in thousands) 2024 2023 Net income (loss) from continuing operations $ (28,357) $ 1,016 Depreciation and amortization 98,453 63,368 Impairment expense 382 2,552 Interest expense 15,897 4,212 Other expense (income), net (6,461) (
Slide 24: Broadband - Average Revenue per User (ARPU)
Broadband - Average Revenue per User (ARPU) Residential and SMB ARPU Quarter Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Residential and SMB Revenue: Broadband Data $ 43,542 $ 36,679 $ 164,984 $ 139,102 Incumbent Broadband Markets 28,489 27,400 112,852 108,822 Glo Fiber Expansion
Shenandoah Telecommunications — Q4 2024 Earnings Presentation on 6ix