Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Shareholder Meeting (April 2011)
29 slides from Shenandoah Telecommunications's shareholder meeting presentation, Apr 19, 2011
Slide 1: Annual Shareholder Meeting
Annual Shareholder Meeting April 19, 2011
Slide 2: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance 2
Slide 3: 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 4: 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 5: 2010 Financial Highlights
2010 Financial Highlights Net Income from Continuing Net Income (in millions) Operations (in millions) $25.1 $18.1 $18.7 $15.1 2009 2010 2009 2010 5
Slide 6: Long-term Growth in Net Income
Long-term Growth in Net Income (in millions) $35 $32 $30 $25 $24 $20 $19 $18 $16 $15 $15 $15 $10 $10 $11 $10 $5 $5 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 6
Slide 7: 2010 Significant Events
2010 Significant Events JetBroadBand acquisition-related transaction costs - $3.1 million before tax and $1.8 million after tax New Prepaid Customers – Net loss $.6 million pre-tax, $.4 million after-tax Closed Defined Benefit Pension Plan – Incurred cost of $3.8 million, pre-tax, $2.3 million af
Slide 8: Growth in Revenues
Growth in Revenues (in millions) $200 $195 $180 $159 $161 $160 $144 $137 $140 $130 $120 $120 $106 $100 $93 $80 $69 $60 $44 $40 $20 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Note: Effective 2007, Shentel amended its agreement with Sprint Nextel. The net effect of this amendment was a
Slide 9: 2010 Expenses as % of Revenue
2010 Expenses (in millions) as % of Revenue $80.0 45.0% $74.5 $70.0 40.0% 35.0% $60.0 30.0% $50.0 $45.5 $42.6 25.0% $40.0 20.0% $30.0 15.0% $18.7 $20.0 $13.4 10.0% $10.0 $4.7 5.0% $0.0 0.0% Costs of Goods Selling, Depreciation & Interest Income Taxes Net Income and Services General, & Amortization E
Slide 10: Debt to Operating Cash Flow
Debt to Operating Cash Flow 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 10
Slide 11: Earnings Per Share (EPS) – Continuing Operations
Earnings Per Share (EPS) – Continuing Operations $1.20 $1.11 $1.06 $1.00 $0.93 $0.88 $0.79 $0.80 $0.60 $0.40 $0.20 $0.00 2006* 2007 2008 2009 2010 *-Includes gain on sale of Rural Telephone Bank stock of $.27 in EPS from Continuing Operations and EPS 11
Slide 12: Earnings Per Share (EPS)
Earnings Per Share (EPS) $1.20 $1.03 $1.00 $0.79 $0.80 $0.76 $0.76 $0.64 $0.60 $0.40 $0.20 $0.00 2006* 2007 2008 2009 2010 *-Includes gain on sale of Rural Telephone Bank stock of $.27 in EPS from Continuing Operations and EPS 12
Slide 13: Cash Dividends Per Share
Cash Dividends Per Share $0.35 $0.33 $0.32 $0.30 $0.30 $0.27 $0.25 $0.25 $0.20 $0.15 $0.14 $0.15 $0.12 $0.13 $0.11 $0.12 $0.10 $0.05 $0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 13
Slide 14: Wireless Segment – Significant Changes in Adjusted OIBDA 2010 vs. 2009
Wireless Segment – Significant Changes in Adjusted OIBDA 2010 vs. 2009 (in $ millions) 8.0 6.0 4.0 5.9 5.6 2.0 0.0 (2.4) (2.5) (2.0) (4.9) (4.0) (6.0) Postpaid Prepaid Service Rate Prepaid Network Revenue Revenue Fee Acquisition Operating Costs 14
Slide 15: Cable Segment – Significant Changes in Adjusted OIBDA 2010 vs. 2009
Cable Segment – Significant Changes in Adjusted OIBDA 2010 vs. 2009 (in $ millions) 15.0 10.0 13.1 5.0 5.8 0.0 0.9 (5.6) (5.8) (5.9) (5.0) (10.0) Video Internet Voice Customer Programming Network & Revenues Revenues Revenues Acquisition Costs Backhaul 15
Slide 16: Total Return - 5 Years
Total Return - 5 Years 250 SHENANDOAH TELECOMMUNICATIONS COMPANY NASDAQ U.S. INDEX 200 NASDAQ TELECOMMUNICATIONS INDEX 150 100 50 0 2005 2006 2007 2008 2009 2010 16
Slide 17: Earle MacKenzie, COO and EVP
Earle MacKenzie COO and EVP 17
Slide 18: Key Operational Results – Wireless
Key Operational Results – Wireless PCS Retail Subscribers (000s) 303 277 67 223 50 211 187 154 227 236 2006 2007 2008 2009 7/1/2010 12/31/2010 Postpaid Prepaid 18
Slide 19: Key Operational Results – Wireless Postpaid Prepaid
Key Operational Results – Wireless PCS Net Additions 29,950 17,071 11,356 12,879 2009 2010 Postpaid Prepaid 19
Slide 20: How Does Shentel's Wireless Compare?
How Does Shentel’s Wireless Compare? 2010 Results (in thousands) US Alltel T- Verizon AT&T Sprint Shentel Cellular (ATNI) Mobile NTELOS Covered POPs 292,000 296,000 277,800 2,049 46,546 6,750 300,000 5,832 2010 Net Adds or (Loss) 1,977 3,105 783 30 (15) (110) (856) (6) Total Subs 87,535 74,565 45,38
Slide 21: Key Operational Results – Wireless Voice Data
Key Operational Results – Wireless PCS Gross Billed Data & Voice $55.81 $55.32 $18.79 $21.36 $17.60 $37.02 $33.96 Postpaid 2009 Postpaid 2010 Prepaid 2010 Voice Data 21
Slide 22: Key Operational Results – Wireless
Key Operational Results – Wireless PCS Annual Billed Service Revenues (in millions) $156.8 $144.8 $25.2 * Management & $21.1 $5.6 $6.8 Service Fees $15.1 $14.7 Write-offs $111.3** Service Credits & $102.2 Adjustments Net Revenue 2009 2010 * $25.2M of Management & Service Fees includes $24.8M from Po
Slide 23: Cable Service Areas
Cable Service Areas Rapid Communications JetBroadband Suddenlink 23
Slide 24: Cable Revenue Generating Units
Cable Revenue Generating Units (000s) Video - .5 104.4 Data - 6.1 10.0 Voice - 3.4 69.6 26.1 0.5 24.9 18.0 24.4 24.9 8.1 (1.8) 2008 2009 2010 Beginning RGUs Divested RGUs Acquired RGUs Growth 24
Slide 25: How Does Shentel Cable Compare?
How Does Shentel Cable Compare? Industry 12/31/2009 12/31/2010 Average * Video Homes Passed 56,268 178,763 Penetration 40.5% 37.7% 45.6% High-speed Internet Available Homes 25,748 144,099 Penetration 8.1% 21.4% 34.5% Voice Available Homes 0 118,652 Penetration n/a 5.3% 18.9% * Industry Averages are
Slide 26: Key Operational Results - Wireline
Key Operational Results - Wireline Access Lines (000s) 24.0 24.4 23.7 2008 2009 2010 26
Slide 27: Key Operational Results - Wireline
Key Operational Results - Wireline Internet Customers (000s) 11.9 11.0 9.9 8.1 7.5 4.9 3.4 2.2 2007 2008 2009 2010 DSL customers Dial-up customers 27
Slide 28: Investing in the Future – CapEx Spending
Investing in the Future – CapEx Spending $0.5 each, Cable and 5.1 0.5 Other 19.5 4.5 49.6 3.5 13.5 27.4 8.7 45.1 11.2 11.2 27.5 12.8 16.7 2008 Actual 2009 Actual 2010 Actual 2011 Projected 65.6 53.2 55.9 82.6 Wireless Wireline Cable Other 28
Slide 29: Annual Shareholder Meeting
Annual Shareholder Meeting April 19, 2011
Shenandoah Telecommunications Company — Shareholder Meeting (April 2011) on 6ix