Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q1 2021 Earnings Presentation
28 slides from Shenandoah Telecommunications's earnings presentation, Apr 30, 2021
Slide 1: Q1 2021 Earnings Conference Call
Q1 2021 Earnings Conference Call April 30, 2021
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: Growing Broadband Network
Growing Broadband Network Broadband Data Homes and Businesses Passed 259,891 246,790 15,240 9,447 230,012 220,442 34,441 212,129 28,652 22,357 13,173 5,347 206,782 207,269 207,655 208,691 210,210 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Incumbent Cable Glo Fiber Beam Wireless 4
Slide 5: Strong Broadband Results
Strong Broadband Results Broadband Data Net Additions 6,028 6,069 878 1,471 4,245 4,048 370 1,356 1,366 2,622 5,150 327 4,598 2,593 2,509 2,295 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Incumbent Cable Glo Fiber Beam Wireless Q1'21 excludes 512 acquired data RGUs from net additions 5
Slide 6: Pending Wireless Sale Update
Pending Wireless Sale Update a T-Mobile exercised option to purchase Wireless assets operations a Sales price of $1.95 billion determined through appraisal process and agreement with T-Mobile a Hart-Scott Rodino waiting period expired on April 26, 2021 a Announced organizational restructuring plan E
Slide 7: Jim Volk, SVP of Finance and CFO
Jim Volk SVP of Finance and CFO 7
Slide 8: Broadband Highlights - First Quarter Results
Broadband Highlights - First Quarter Results Revenue (in millions) Adjusted OIBDA (in millions) $22.4 Residential & SMB 8.3% Commercial Fiber $20.7 RLEC & Other $55.2 10.8% $3.7 $49.8 $4.4 $8.5 $8.4 41.6% 40.6% margin margin $42.9 $37.0 Q1'20 Q1'21 Q1'20 Q1'21 8
Slide 9: Tower Highlights - First Quarter Results
Tower Highlights - First Quarter Results Revenue (in millions) Adjusted OIBDA (in millions) $4.7 25.1% $3.2 40.5% $3.7 $2.3 60.7% 68.2% margin margin Q1'20 Q1'21 Q1'20 Q1'21 9
Slide 10: Consolidated Highlights - First Quarter Results
Consolidated Highlights - First Quarter Results Revenue (in millions) Adjusted OIBDA (in millions) $59.7 12.3% $17.1 $4.7 19.1% $53.1 $14.4 $3.2 $3.7 $2.3 $22.4 $20.7 $55.2 $49.8 $(8.6) $(8.5) Q1'20 Q1'21 Q1'20 Q1'21 Broadband Tower Broadband Tower Corporate Consolidated revenue includes elimination
Slide 11: Consolidated 2021 Outlook
Consolidated 2021 Outlook Revenue (in millions) Adjusted OIBDA (in millions) $241 - $248 10.6% $17 - $18 $220.8 $69 - $76 27.2% $57.2 $10.5 - $11.5 $17.1 $10.7 $90 - $94 $81.5 $224 - $230 $204.3 $(35.0) $(31.5) - $(29.5) 2020 2021 Guidance 2020 2021 Guidance Broadband Tower Broadband Tower Corporate
Slide 12: Capitalization
Capitalization Total Debt & Liquidity (in millions) YTD Free Cash Flow by Segment (in millions) $74.6 $689.4 Effective Interest Rate of 2.23% $304.2 $75.0 $229.2 Total Debt Total Liquidity Cash & Cash Equivalents $-30.3 $(30.3) Available Revolving Line of Credit Total Debt Continuing Operations Disc
Slide 13: 2021 Cash Flow Outlook
2021 Cash Flow Outlook 2021 Cash Sources & Uses ($ in millions) assuming Wireless Sale is consummated $2,255 - $2,265 $2,165 - $2,193 FCF from discontinued operations $110 - $120 Continuing Ops Adj OIBDA - $81 - $99 CapEx Cash - 12/31/2020 $195 $450 - $460 Income Tax Current debt & swap $702 repayme
Slide 14: Dave Heimbach, EVP and COO
Dave Heimbach EVP and COO AXSHENTEL
Slide 15: Unique network platform with high growth potential
Unique network platform with high growth potential Shentel position Incumbent Greenfield fiber overbuilder Greenfield fixed wireless broadband overbuilder Market type Various, but mostly rural Higher density tier III / IV Low density rural Target market markets dynamic Current / 2026 Target Homes Pa
Slide 16: Integrated Fiber, Cable and Fixed Wireless Broadband Network
Integrated Fiber, Cable and Fixed Wireless Broadband Network 16
Slide 17: Broadband - Incumbent Cable Metrics
Broadband - Incumbent Cable Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) $77.87 $78.12 Voice Broadband Data Video 184,727 170,888 50,651 52,918 86,214 101,576 31,756 32,500 Q1'20 Q1'21 Q1'20 Q1'21 Broadband Data Penetration Broadband Data Churn 1.48% 48.3% 1.
Slide 18: Broadband - Glo Fiber Metrics
Broadband - Glo Fiber Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) $80.55 $74.24 Voice Broadband Data Video 7,684 1,338 5,524 682 453 822 Q1'20 Q1'21 Q1'20 Q1'21 Broadband Data Penetration Broadband Data Churn 0.83% 0.86% 16.0% 8.5% Q1'20 Q1'21 Q1'20 Q1'21 18
Slide 19: Glo Fiber Market Update
Glo Fiber Market Update Passings Penetration Released to Target as of Sales Passings* Launch Date 3/31/2021 Harrisonburg VA 10.3k 13.3k October 2019 20.8% Staunton VA 10.3k 10.6k February 2020 17.4% Front Royal VA 5.1k 5.2k March 2020 13.4% Winchester VA** 7.2k 23.9k March 2020 11.0% Salem VA 1.6k 8
Slide 20: Broadband - Beam Broadband Data Metrics
Broadband - Beam Broadband Data Metrics Revenue Generating Units (RGU) Average Revenue per User (ARPU) 469 $73.17 $73.14 99 Q4'20 Q1'21 Q4'20 Q1'21 Penetration Churn 0.99% 3.1% 0.52% 1.0% Q4'20 Q1'21 Q4'20 Q1'21 20
Slide 21: Tower - Metrics
Tower - Metrics Towers Tenants Intercompany Carriers 223 443 220 408 207 205 236 203 Q1'20 Q1'21 Q1'20 Q1'21 21
Slide 22: Capital Expenditures
Capital Expenditures Capex Spending ($ in millions) $157 - $168 162500000 $2 - $3 $100 - $105 $39 $55 - $60 $23 $24 $7 $15 $14 2020 2021 2021 Guidance Broadband* Glo Fiber & Beam Tower Other *Excludes CapEx for Glo Fiber and Beam Fixed Wireless 22
Slide 23: Q&A
AXSHENTEL Q&A 23
Slide 24: Appendix
Appendix AXSHENTEL
Slide 25: 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 26: Adjusted OIBDA by Segment - Quarterly Results
Adjusted OIBDA by Segment - Quarterly Results Three Months Ended March 31, 2021 Corporate (in thousands) Broadband Tower & Other Consolidated Operating income (loss) from continuing operations $ 10,427 $ 2,702 $ (10,758) $ 2,371 Depreciation 11,538 481 1,024 13,043 Amortization 223 — — 223 OIBDA 22,
Slide 27: Normalized Free Cash Flow and Free Cash Flow
Normalized Free Cash Flow and Free Cash Flow Three Months Ended March 31, 2021 Total Discontinued Continuing (in thousands) Operations Broadband Tower Corporate Operations Net Cash Provided by Operations $ 75,530 $ 21,087 $ 902 $ (12,853) $ 9,136 Less: Capital Expenditures* (885) (14,427) (445) (611
Slide 28: Broadband - Average Revenue per User (ARPU)
Broadband - Average Revenue per User (ARPU) For the first quarter ended, 2020 2021 Residential & SMB Revenue (000's) Broadband $ 19,833 $ 24,585 Incumbent Cable $ 19,768 $ 23,465 Glo Fiber $ 65 $ 1,068 Beam Wireless $ — $ 52 Video $ 14,821 $ 15,652 Voice $ 2,827 $ 2,899 Average Revenue Generating Un
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