Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Capstone Investments 2009 Small-Cap Investor Conference
35 slides from Shenandoah Telecommunications's conference presentation, Jul 30, 2009
Slide 1: Capstone Investments 2009 Small-Cap Investor Conference
July 30, 2009 Capstone Investments 2009 Small - Cap Investor 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 - Earle MacKenzie - EVP/COO Overview of Wireless Overview of Wireline Overview of Cable Financials - Adele Skolits - CFO
Slide 5: Shenandoah Telecommunications Company structure
Allocation Subsidiary Wireline Entities Wireless Entities Shenandoah Telecommunications Company Shentel Cable Company Shentel Service Company Shenandoah Mobile Company Shenandoah Cable Television Company Shentel Management Company Shentel Communications Company Shenandoah Telephone Company Shenandoa
Slide 6: Business Overview
Business Overview n Public company with 4,400+ shareholders u ≈ 70% individual / 30% institutional n Sprint PCS Affiliate of Sprint Nextel n Profitable n Strong growth n Healthy balance sheet n Continuity of ownership & management n Focused business plan
Slide 7: Growth Strategy - Capitalize on Core Competencies
Growth Strategy - Capitalize on Core Competencies n Wireless u Increase penetration in existing PCS footprint u Look for new wireless opportunities in surrounding geographic areas n Wireline u Attractive markets at reasonable prices n Cable u Focus on smaller less competitive markets u Build cluster
Slide 8: Revenue by Segment
Revenue by Segment Segment Overview 12 Months Ending June 30, 2009 Total External Revenues = $154.8 million Operating Income Before Depreciation & Amortization (OIBDA) by Segment
Slide 9: Agenda
Agenda Introduction and Shentel Overview Overview of Wireless Overview of Wireline Overview of Cable Financials
Slide 10: PCS Overview
PCS Overview n One of 3 remaining Sprint Nextel affiliates n 2.3 million licensed POPs n 2.0 million covered POPs n 216k total subscribers u 11.0% penetration of covered POPs n 432 CDMA base stations n 278 EVDO enabled cell sites u 94.4% EVDO covered POPs n $41,000 Estimated Average household income
Slide 11: Key Operational Metrics - PCS
Retail Subscribers (000s) Number of Cell Sites Churn (%) Key Operational Metrics - PCS Period Ending EVDO Sites Non-EVDO Sites
Slide 12: Attractive Service Revenue Growth - PCS
Attractive Service Revenue Growth - PCS 12 Months Ending Gross Billed PCS Revenue ($ millions) 1 1 Before credits and fees 18.4% CAGR
Slide 13: Billed Revenue ($ millions)
Billed Revenue ($ millions) PCS Revenues 12 Months Ending Up 15.1% Bad Debt Management Fee Service Credits Service Fee Net Revenue
Slide 14: PCS Revenue per Subscriber
PCS Revenue per Subscriber Period Ending Gross Billed Revenue per Subscriber 1 1 Before credits and fees Voice Data
Slide 15: Wireless Segment
Reported Revenue ($ millions) OIBDA ($ millions) Wireless Segment 12 Months Ending 20.1% CAGR 1 Decrease in revenue between 6/30/2007 and 6/30/2008 is the result of the change in accounting for the Sprint Nextel contract amendment.
Slide 16: Capital Expenditures - Wireless
Capital Expenditures by Category ($ millions) Capital Expenditures - Wireless 12 Months Ending # Cell Sites 332 346 411 486 % Covered POPs 77% 79% 85% 88% # EVDO Sites 0 52 211 338 % POPs Covered N/A 27% 86% 94% Other Capacity Coverage EVDO Mobile
Slide 17: Agenda
Agenda Introduction and Shentel Overview Overview of Wireless Overview of Wireline Overview of Cable Financials
Slide 18: Wireline Customers
Wireline Customers 12 Months Ending June 30, 2009 n 24.0k LEC access lines n Pending Acquisition of North River Telephone u 1.0k access lines n 10.5k DSL subscribers n 4.4k dial-up Internet subscribers n 10.8k long distance subscribers n One FTTH community in service outside of LEC area n Fiber Netw
Slide 19: Wireline Customers
Access lines (000s) Internet Customers (000s) -1.4% CAGR 1 DSL only available within LEC area 2 Dial-up offered inside and outside the LEC area Wireline Customers 12 Months Ending
Slide 20: Wireline Overview
Revenue ($ millions) OIBDA ($ millions) Wireline Overview 12 Months Ending
Slide 21: Agenda
Agenda Introduction and Shentel Overview Overview of PCS Overview of Wireline Overview of Cable Financials
Slide 22: Cable TV Overview
Cable TV Overview n Complimentary (with LEC business) u 16k Homes Passed u 8.3k Video Subscribers n Offensive positioning (Outside ILEC) u 44k Homes Passed u 17k Video, 1.3k Internet, 0 Voice Subscribers n One-way now, two way in 2009/2010 n YE09 - HD, DVR, VOD, Internet, Voice
Slide 23: Cable TV
Subscribers (000s) Revenue ($ millions) OIBDA ($ millions) Cable TV 12 Months Ending 1 Includes Rapid Communications acquisition - December 2008 Digital Basic
Slide 24: Agenda
Agenda Introduction and Shentel Overview Overview of PCS Overview of Wireline Overview of Cable Financials - Adele Skolits - CFO
Slide 25: Key Financial Results - Continuing Operations
Net Income from Continuing Operations ($ millions) Revenue ($ millions) Key Financial Results - Continuing Operations 1 12 Months Ending 16.9% CAGR 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated. 2 Decrease in revenue between 6/30/2007 and
Slide 26: Key Financial Results - Continuing Operations
Operating Income ($ millions) Operating Income Before Depreciation & Amortization ($ millions) Key Financial Results - Continuing Operations 1 12 Months Ending 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated.
Slide 27: Key Financial Results - Consolidated
Earnings Per Share - Continuing Operations 1 Earnings Per Share - Net Income Key Financial Results - Consolidated 12 Months Ending 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated. 2 Includes $10.7 million write down of Converged Service Busi
Slide 28: Capital Expenditures by Segment
Capital Expenditures by Segment ($ millions) Total Capex 12 Months Ending Wireless Wireline Cable
Slide 29: Shentel
” SHENTEL
Slide 30: Appendix
Appendix
Slide 31: Non-GAAP Financial Measure - Billed Revenue per Subscriber
Non-GAAP Financial Measure - Billed Revenue per Subscriber Period Ending
Slide 32: Non-GAAP Financial Measure - OIBDA (12 Months Ended 6/30/2009)
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $40,055 $13,278 ($2,897) ($4,642) $45,794 Depreciation and amortization 18,749 8,389 2,350 327 29,815 OIBDA $58,804 $21,667 ($547) ($4,315) $75,609 Non-GAAP Financial Measure - OIBDA 12 Months Ended 6/30/2009
Slide 33: Non-GAAP Financial Measure - OIBDA (12 Months Ended 6/30/2008)
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $32,522 $13,622 ($1,182) ($4,901) $40,061 Depreciation and amortization 16,819 6,897 1,031 283 25,030 OIBDA $49,341 $20,519 ($151) ($4,618) $65,091 Non-GAAP Financial Measure - OIBDA 12 Months Ended 6/30/2008
Slide 34: Non-GAAP Financial Measure - OIBDA (12 Months Ended 6/30/2007)
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $24,814 $14,528 ($1,244) ($5,328) $32,770 Depreciation and amortization 15,983 5,617 1,078 236 22,914 OIBDA $40,797 $20,145 ($166) ($5,092) $55,684 Non-GAAP Financial Measure - OIBDA 12 Months Ended 6/30/2007
Slide 35: Capstone Investments 2009 Small-Cap Investor Conference
July 30, 2009 Capstone Investments 2009 Small - Cap Investor Conference
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