Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q4 2023 Earnings Presentation
26 slides from Shenandoah Telecommunications's earnings presentation, Feb 21, 2024
Slide 1: Q4 2023 Earnings Conference Call
Q4 2023 Earnings Conference Call February 21, 2024
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: 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. 4
Slide 5: Glo Fiber Fueling Consolidated Revenue Growth
Glo Fiber Fueling Consolidated Revenue Growth Glo Fiber Data RGUs Glo Fiber Revenue (in millions) 116% CAGR 164% CAGR 5
Slide 6: Accelerating Pace of Construction and Sales
Accelerating Pace of Construction and Sales Glo Fiber Passings Released to Sales Glo Fiber Data Net Additions 48% CAGR 62% CAGR 6
Slide 7: Jim Volk, SVP of Finance and CFO
Jim Volk SVP of Finance and CFO 7
Slide 8: Broadband Highlights - Full Year Results
Broadband Highlights - Full Year Results Revenue (in millions) Adjusted EBITDA (in millions) 17.6% 8.1% 39.3% 36.1% margin margin 8
Slide 9: Tower Highlights - Full Year Results
Tower Highlights - Full Year Results Revenue (in millions) Adjusted EBITDA (in millions) (1.5)% (2.8)% 63.0% 62.2% margin margin 9
Slide 10: Consolidated Highlights - Full Year Results
Consolidated Highlights - Full Year Results Revenue (in millions) Adjusted EBITDA (in millions) 19.3% 7.5% 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 Q3'23 and Q'423 grant approved fiber passings exclude 3,500 additional passings to be constructed using
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 Expected Average Terminal penetration 38% Passings released to 31 20 21 17 16 18 19 18 14 14 12 6 6 9 8 4 2 sales (000's) Quarter Quarter Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 launched Launched 2023 2022 2021 2020 2019 1 Penet
Slide 18: Broadband - Incumbent Cable Metrics
Broadband - Incumbent Cable 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 Bookings Installed MRR & MAR1 Backhaul Connections Monthly Compression and Disconnect Churn2 1MRR = Monthly Recurring Revenue; MAR = Monthly Amortized Revenue 2Excludes impact of T-Mobile network rationalization 19
Slide 20: Tower - Metrics
Tower - Metrics Towers Tenants 20
Slide 21: Capital Expenditures
Capital Expenditures Capex Spending ($ in millions) $260 - $290 $30 - $34 $180 - $200 $10 - $12 $39 - $43 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 - Full Year Results
Adjusted EBITDA by Segment - Full Year Results Year Ended December 31, 2023 Corporate & (in thousands) Broadband Tower Eliminations Consolidated Net income (loss) from continuing operations $ 42,308 $ 9,495 $ (43,765) $ 8,038 Depreciation and amortization 61,897 2,103 1,471 65,471 Impairment expense
Slide 26: Broadband - Average Revenue per User (ARPU)
Broadband - Average Revenue per User (ARPU) Broadband - Residential and SMB ARPU Quarter Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Residential and SMB Revenue: Broadband Data $ 36,679 $ 31,916 $ 139,102 $ 120,803 Cable Markets 27,400 26,945 108,822 105,433 Glo Fiber Markets 9,27
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