Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q1 2011 Earnings Presentation
27 slides from Shenandoah Telecommunications's earnings presentation, May 6, 2011
Slide 1: 1Q 2011 Earnings Conference Call
1Q 2011 Earnings Conference Call May 6, 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: 1Q'11 Highlights
1Q’11 Highlights q Total wireless customers increased by five percent to a total of 318 thousand at end of the quarter q Over 13 thousand additional prepaid customers in Q1 2011, over 30 thousand added since the initial purchase of approximately 50 thousand Virgin Mobile customers in July q Postpaid
Slide 6: Cable Highlights
Cable Highlights q Sales Momentum u 1Q 2011 net RGU additions of 2,438 q Triple Play u Gains in digital video, high-speed Internet, and voice services q Cable Upgrades u Former JetBroadband markets work underway
Slide 7: PCS Postpaid Customers (000s) - Wireless Highlights
PCS Postpaid Customers (000s) Wireless Highlights q Prepaid - Q1’11 net additions of 13,287 and 80,243 prepaid subs at q Postpaid Churn improves - Annual churn of 1.8% compared to 1.9% for Q1’10
Slide 8: 2011 Financial Highlights
Net Income (in millions) Net Income from Continuing Operations (in millions) 2011 Financial Highlights q Prepaid Customer Growth - Added $2.4 million to acquisition costs, after taxes q Cable Growth - Added $1.0 million in after tax acquisition costs
Slide 9: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance
Slide 10: Adjusted OIBDA ($ millions) - Profitability
Adjusted OIBDA ($ millions) Profitability
Slide 11: OIBDA to Operating Income by Segment
a” SHENTEL Operating Income Depreciation and Amortization OIBDA Share Based Compensation Adjusted OIBDA Wireless Wireline Cable Qi10) QI Q1'10) Q1'11 Q1'10 Q1'11 $11.0 $101 $ 35 $ 38 $(2.0) $ (5.7) 5.2 6.2 19 1.9 11 5.7 16.2 163 5.4 5.7 (0.9) " : 0.1 = 0.1 - 0.1 $16.2 $164 $ 54 $ 58 $ (0.9) $ O01
Slide 12: Wireless Segment - Change in Adjusted OIBDA Q1'10 vs. Q1'11
Wireless Segment - Change in Adjusted OIBDA Q1’10 vs. Q1’11
Slide 13: Cable Segment - Change in Adjusted OIBDA Q1'10 vs. Q1'11
Cable Segment - Change in Adjusted OIBDA Q1’10 vs. Q1’11
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 Gross postpaid customer additions up 4% n Q1 2011 net adds of 3,016, a 77% increase over Q1 2010 n Q4 2010 churn of 1.8% improved from 1.9% in Q1
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 $37.1 $39.7 *-The Net Service Fee percentage increased from 8.8% to 12% effective 6/1/10
Slide 19: Postpaid PCS Customers Top Picks Q1 2011
Postpaid PCS Customers Top Picks Q1 2011 n Top Service Plans - 63% of Gross Adds u Everything Data Family 1500 - 51% u Everything 450 - 16% u Everything Messaging Family 1500 - 7% n Top Devices - New Activations - All Channels u LG Optimus 20% u LG Rumor Touch 15% u HTC EVO 4G 13% u Sanyo Vero 5% u
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 23,170 in Q1 2011 and 56,568 since 7/1/10 Ø Net adds of 13,287 in Q1 2011 and 30,358 since 7/1/10 Ø Ending subscribers of 80,243 Ø Churn rate of 4.5% for Q1 2011 down from 4.6% for Q4 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 in LEC area to over 51% n 6% growth in DSL customers since 3/31/10
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 hardening of Jet Network in Q4 2010 n Upgrade of Farmville system completed in Q1 2011 with other eastern VA systems to be completed in Q2 2011 n All Virginia systems upgrades projected to be completed in n West Virginia systems upgrades to be compl
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Slide 27: Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber
1Q 2010 1Q 2011 Gross billed revenue Wireless segment total operating revenues $30,233 $36,469 Equipment revenue (1,218) (1,569) Tower Lease Revenue (1,948) (2,177) Prepaid Net Service Revenues (4,424) Other revenue (540) (519) Wireless service revenue - postpaid 26,527 27,780 Service credits 3,756
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