Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q3 2023 Earnings Presentation
26 slides from Shenandoah Telecommunications's earnings presentation, Nov 3, 2023
Slide 1: Q3 2023 Earnings Conference Call
Q3 2023 Earnings Conference Call November 3, 2023
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: Broadband passings have doubled since the launch of Glo Fiber
Broadband passings have doubled since the launch of Glo Fiber Broadband Passings Released to Sales 107% 102% 55% 4
Slide 5: Strong Broadband Data Subscriber Trend
Strong Broadband Data Subscriber Trend Ending Data Subscribers 78% 77% 5
Slide 6: Expanding Margins fueled by Glo Fiber subscriber growth
Expanding Margins fueled by Glo Fiber subscriber growth Consolidated Adjusted EBITDA Margins 6
Slide 7: Jim Volk, SVP of Finance and CFO
Jim Volk SVP of Finance and CFO 7
Slide 8: Broadband Highlights - Third Quarter Results
Broadband Highlights - Third Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) 19.4% 8.1% 35.7% 39.4% margin margin 8
Slide 9: Tower Highlights - Third Quarter Results
Tower Highlights - Third Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) (0.7)% (12.8)% 64.9% 57.0% margin margin 9
Slide 10: Consolidated Highlights - Third Quarter Results
Consolidated Highlights - Third Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) 20.5% 7.3% Consolidated revenue includes elimination of intercompany activity. 10
Slide 11: Liquidity & Free Cash Flow
Liquidity & Free Cash Flow Liquidity (in millions) Free Cash Flow (in millions) 11
Slide 12: Debt Maturity & Other Liquidity Events
Debt Maturity & Other Liquidity Events Debt Maturity (in millions) 12
Slide 13: Ed McKay, EVP and COO
XG a Ed McKay EVP and COO
Slide 14: Integrated Fiber and Cable Broadband Network
Integrated Fiber and Cable Broadband Network 14
Slide 15: Broadband - Fiber Construction Metrics
Broadband - Fiber Construction Metrics Glo Fiber Franchise Approved Passings Fiber Passings Released to Sales Government Grant Approved Fiber Passings1 Total Fiber Construction Backlog Passings 1 Q2'23 and Q2'23 grant approved fiber passings exclude 3,000 and 3,500, respectively, additional passings
Slide 16: Broadband - Glo Fiber Operating Metrics
Broadband - Glo Fiber Operating Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 16
Slide 17: Vintage Glo Fiber Penetration
Vintage Glo Fiber Penetration Vintage Glo Fiber Penetration1 Avg. Terminal Penetration 38% Passings released 20 21 17 16 18 19 18 14 14 12 6 6 9 8 4 2 to sales (000's) Quarter launched 1 Homes passed and penetration rates as of 9/30/2023, excluding vacant lots 17
Slide 18: Broadband - Cable Markets Metrics
Broadband - Cable Markets Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 18
Slide 19: Broadband - Commercial Fiber Metrics
Broadband - Commercial Fiber Metrics MRR & MAR Sales Bookings1 Installed MRR & MAR1, 2 Backhaul Connections Monthly Compression and Disconnect Churn3 1. Excludes any voice, bulk residential, or small/medium business services sold to enterprise, wholesale, or government/education customers 2. MRR = M
Slide 20: Tower - Metrics
Tower - Metrics Towers Tenants 20
Slide 21: Capital Expenditures
Capital Expenditures Capex Spending ($ in millions) $243 - $258 $30 - $35 $170 - $175 $14 - $16 $27 - $30 21
Slide 22: Q&A
Q&A AXSHENTEL
Slide 23: Appendix
HENTEL Appendix
Slide 24: 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 25: Adjusted EBITDA by Segment - Quarterly Results
Adjusted EBITDA by Segment - Quarterly Results Three Months Ended September 30, 2023 Corporate & (in thousands) Broadband Tower Eliminations Consolidated Net income (loss) $ 10,630 $ 2,097 $ (11,134) $ 1,593 Depreciation and amortization 15,729 549 392 16,670 Impairment expense 1,532 — — 1,532 Other
Slide 26: Broadband - Average Revenue per User (ARPU)
Broadband - Average Revenue per User (ARPU) For the third quarter ended, 2022 2023 Residential & SMB Revenue (000's) Broadband $ 30,670 $ 35,096 Cable Markets $ 26,502 $ 26,977 Glo Fiber Markets $ 4,168 $ 8,119 Video $ 14,914 $ 14,077 Voice $ 3,041 $ 3,062 Discounts, Adjustments, and Other $ 75 $ 76
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