Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — RBC Technology, Media & Communications Conference 2010
39 slides from Shenandoah Telecommunications's conference presentation, Jun 9, 2010
Slide 1: RBC Technology, Media & Communications Conference
June 9, 2010 RBC Technology, Media & Communications Conference 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: Agenda
Agenda Introduction and Shentel Overview Overview of Wireless Overview of Cable Overview of Wireline
Slide 5: Growth Strategy - Capitalize on Core Competencies
Growth Strategy - Capitalize on Core Competencies n Cable u Focus on smaller less competitive markets u Build clusters to gain operating efficiencies u Upgrade networks to offer “Triple Play” n Wireless u Increase penetration in existing PCS footprint u Look for new wireless opportunities in surroun
Slide 6: Revenue by Segment
Revenue by Segment Segment Overview Twelve Months Ending March 31, 2010 Total External Revenues = $162.0 million
Slide 7: Net Income from Continuing Operations and Revenue
Net Income from Continuing Operations ($ millions) Revenue ($ millions) 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated. Wireless Wireline Cable
Slide 8: Operating Income and OIBDA
Operating Income ($ millions) Operating Income Before Depreciation & Amortization ($ millions) 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated.
Slide 9: Agenda
Agenda Introduction and Shentel Overview Overview of Wireless Overview of Cable Overview of Wireline
Slide 10: PCS Overview
PCS Overview n Only remaining public Sprint Nextel affiliate n 2.4 million licensed POPs n 2.1 million covered POPs n 225k total subscribers u 11% penetration of covered POPs n 481 CDMA base stations n 340 EVDO enabled cell sites u 96% EVDO covered POPs n $41,000 Estimated Average household income
Slide 11: Profile of the Sprint Nextel Relationship
Profile of the Sprint Nextel Relationship • Current contract through 2019 with two 10 year extensions • Upon expiration of contract - Shentel compensated based on enterprise value • Settlement simplification in place through contract unless amended by both parties Ø 8% of Revenue - Spectrum, Brand,
Slide 12: Key Operational Metrics - PCS
Retail Subscribers (000s) Number of Cell Sites Churn (%) Key Operational Metrics - PCS Periods Ending EVDO Sites Non-EVDO Sites
Slide 13: Attractive Service Revenue Growth - PCS
Gross Billed PCS Revenue ($ millions) 1 Attractive Service Revenue Growth - PCS 12 Months Ending 1 Before credits and fees 11 % CAGR
Slide 14: PCS Billed Revenue
Billed Revenue ($ millions) PCS Revenues 12 Months Ending Up 5% Bad Debt Management Fee Service Credits Service Fee Net Revenue
Slide 15: PCS Revenue per Subscriber
Gross Billed Revenue per Subscriber 1 PCS Revenue per Subscriber Period Ending
Slide 16: Wireless Segment Revenue and OIBDA
Reported Revenue ($ millions) OIBDA ($ millions) Wireless Segment 12 Months Ending 15% CAGR
Slide 17: Capital Expenditures - Wireless
Capital Expenditures by Category ($ millions) Capital Expenditures - Wireless 12 Months Ending # Cell Sites 346 411 476 503 % Covered POPs 79% 85% 87% 88% # EVDO Sites 52 211 334 365 % POPs Covered 27% 86% 94% 95% Other Capacity Coverage EVDO Towers
Slide 18: Agenda
Agenda Introduction and Shentel Overview Overview of Wireless Overview of Cable Overview of Wireline
Slide 19: Cable TV Overview
Cable TV Overview n Complimentary (with LEC business) u 16k Homes Passed u 8k Video Subscribers n Offensive positioning (Outside ILEC) u 40k Homes Passed u 15k Video and 3k Internet Subscribers u Voice service initiated 3/31/10 n All upgraded by 9/30/10
Slide 20: Cable TV RGUs
0” SHENTEL Cable TV RGUs (000s) 26.0 23.9 24.9 9/30/09 12/31/09 3/31/10 Excludes markets sald in Novernber2009 for all periodsshawn and anly includesintemet for areas outside ILEC service area
Slide 21: Cable TV Revenue and OIBDA
Revenue ($ millions) OIBDA ($ millions) Cable TV 12 Months Ending Includes Rapid Communications acquisition December 1, 2008
Slide 22: Deal Highlights - JetBroadband Acquisition
Deal Highlights - JetBroadband Acquisition n Structured as an asset purchase n Purchase Price = $148 n 115 thousand homes passed and serves 67 thousand RGUs u 43 thousand video customers u 22 thousand data customers u 2 thousand voice customers n Network u 3,200 miles u 900 miles of fiber u 84% two
Slide 23: JBB Acquisition - Rationale
JBB Acquisition - Rationale n Diversification n Scale n Below Market Penetration n Geographic Fit n Synergies n Leveraging Core Competencies n Coaxial Network
Slide 24: Percent of Homes Passed with Services
Percent of Homes Passed with Services
Slide 25: Cable and fiber network map
<2” SHENTEL Charleston JBB Fiber @ Headend DD Shentel Cable Areas eee ie) Ee Se 188 Cable Areas Leased Wavelength @ RFHubSite — IRU Fiber © Direct-fed Nodes ~~ New Fiber
Slide 26: Key Operational Metrics - With Acquisition
Cable Homes Passed (in 000’s) RGUs (in 000’s) Revenues (in millions) OIBDA (in millions) Key Operational Metrics - With Acquisition Pro Forma for Periods Ending March 31, 2010
Slide 27: Jet BB Deal - Financial Highlights
Jet BB Deal - Financial Highlights n Operating Income before Interest and Depreciation u $16.2 before Corporate office costs u $14.6 after Corporate office costs n Financing u Syndicated debt deal u $198m Term Loan u $50m Undrawn Revolver u Oversubscribed at more than 150% of needs
Slide 28: Level of Debt - Acquisition Impact
Debt (in millions) Debt to EBITDA Ratio Level of Debt - Acquisition Impact Pro Forma for Periods Ending March 31, 2010
Slide 29: Capital Expenditures by Segment
Capital Expenditures by Segment ($ millions)
Slide 30: JBB Execution
JBB Execution n Success with Rapid Acquisition n Network Interconnection n Proven Technologies n Similar Demographics n Proximity n Low Regulatory Risk n Strategic Owner Appeal
Slide 31: Agenda
Agenda Introduction and Shentel Overview Overview of PCS Overview of Cable Overview of Wireline
Slide 32: Wireline Customers
Wireline Customers March 31, 2010 n 24.2k LEC access lines n Acquisition of North River Telephone closed November 2 nd u 0.9k access lines n 11.5k DSL subscribers u 46% Penetration of Access Lines n 3.0k dial-up Internet subscribers n 10.9k long distance subscribers n One FTTH community in service o
Slide 33: Shentel
” SHENTEL
Slide 34: Appendix
Appendix
Slide 35: Non-GAAP Financial Measure - Billed Revenue per Subscriber
Non-GAAP Financial Measure - Billed Revenue per Subscriber Period Ending
Slide 36: Non-GAAP Financial Measure - OIBDA (12 Months Ended 3/31/2010)
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $40,459 $12,711 ($7,172) ($3,683) $42,315 Depreciation and amortization 20,660 8,090 4,045 308 33,103 OIBDA $61,119 $20,801 ($3,127) ($3,375) $75,418 Non-GAAP Financial Measure - OIBDA 12 Months Ended 3/31/2010
Slide 37: Non-GAAP Financial Measure - OIBDA (12 Months Ended 3/31/2009)
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $40,082 $13,926 ($1,684) ($4,589) $47,735 Depreciation and amortization 18,039 8,071 1,738 315 28,163 OIBDA $58,121 $21,997 $54 ($4,274) $75,898 Non-GAAP Financial Measure - OIBDA 12 Months Ended 3/31/2009
Slide 38: Non-GAAP Financial Measure - OIBDA (12 Months Ended 3/31/2008)
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $29,739 $14,199 ($1,336) ($5,082) $37,520 Depreciation and amortization 16,629 6,468 1,035 263 24,395 OIBDA $46,368 $20,667 ($301) ($4,819) $61,915 Non-GAAP Financial Measure - OIBDA 12 Months Ended 3/31/2008
Slide 39: RBC Technology, Media & Communications Conference
June 9, 2010 RBC Technology, Media & Communications Conference
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