Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q3 2024 Earnings Presentation
21 slides from Shenandoah Telecommunications's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Earnings Conference Call
Q3 2024 Earnings Conference Call November 7, 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: Horizon Integration Update
Horizon Integration Update • Launched Glo Fiber brand in Ohio markets • Implemented leadership changes • Completed 4 of 6 of back-office systems integrations; expect to complete ERP and payroll conversions by January 2025 • Integrated sales and customer care teams and platforms • Aligned compensatio
Slide 5: Accelerating Pace of Construction and Sales
Accelerating Pace of Construction and Sales Glo Fiber Passings Released to Sales Glo Fiber Ending Data Subscribers 58% 58% 5
Slide 6: Jim Volk, SVP of Finance and CFO
Jim Volk SVP of Finance and CFO 6
Slide 7: Consolidated Highlights - Continuing Operations
Consolidated Highlights - Continuing Operations Revenue (in millions) Adjusted EBITDA1 (in millions) 1 2 31% 30% 1 Consists of Shentel Incumbent Cable Markets and Horizon Incumbent Telephone Markets with FTTH passings. 2 Consists of Fiber-To-The-Home (FTTH) passings in greenfield expansion markets i
Slide 8: Liquidity & Debt Maturity
Liquidity & Debt Maturity Liquidity (in millions) Debt Maturity (in millions) 8
Slide 9: Ed McKay, EVP and COO
Ed McKay EVP and COO 9
Slide 10: Integrated Fiber and Cable Broadband Network
Integrated Fiber and Cable Broadband Network 10
Slide 11: 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 Q2'24 and Q3'24 grant approved fiber passings exclude 3,500 additional passings to be constructed using
Slide 12: Glo Fiber Expansion Markets Operating Metrics
Glo Fiber Expansion Markets Operating Metrics1 Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 1. Consists of Fiber-To-The-Home (FTTH) passings in greenfield expansion markets in the Shentel and former Horizon markets 12
Slide 13: Vintage Glo Fiber Penetration
Vintage Glo Fiber Penetration Vintage Glo Fiber Penetration1 Expected Average Terminal Penetration 37% Passings released 22 22 25 31 20 21 17 16 18 19 18 14 14 12 6 6 9 8 4 2 to sales (000's) Quarter Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 launched 2024 2023 2022 2021 2020 2019 1
Slide 14: Incumbent Broadband Markets Metrics
Incumbent Broadband Markets Metrics1 Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 1. Consists of Shentel Incumbent Cable Markets and former Horizon Incumbent Telephone Markets with FTTH passings 14
Slide 15: Broadband - Commercial Fiber Metrics
Broadband - Commercial Fiber Metrics MRR & MAR Sales Bookings1 Installed MRR & MAR1 MRR/MAR Backlog Monthly Compression and Disconnect Churn2 1. MRR = Monthly Recurring Revenue; MAR = Monthly Amortized Revenue 2. Excludes impact of T-Mobile network rationalization 15
Slide 16: Capital Expenditures
Capital Expenditures Capex Spending ($ in millions) $30 - $35 $45 - $52 $178 - $188 $8 - $10 $30 - $38 Note: 2024 Guidance not shown to scale. 16
Slide 17: Q&A
Q&A AXSHENTEL
Slide 18: Appendix
HENTEL Appendix
Slide 19: 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 20: Adjusted EBITDA - Quarterly Results
Adjusted EBITDA - Quarterly Results Three Months Ended September 30, (in thousands) 2024 2023 Loss from continuing operations $ (5,304) $ (183) Depreciation and amortization 27,681 16,121 Impairment expense — 1,532 Other expense (income), net 2,670 (826) Income tax (benefit) expense (1,542) 399 Stoc
Slide 21: Broadband - Average Revenue per User (ARPU)
Broadband - Average Revenue per User (ARPU) For the third quarter ended, 2023 2024 Residential & SMB Revenue (000's) Broadband $ 35,096 $ 42,038 Incumbent Broadband Markets $ 26,977 $ 28,241 Glo Fiber Expansion Markets $ 8,119 $ 13,797 Video $ 14,077 $ 14,520 Voice $ 3,062 $ 3,275 Discounts, Adjustm
Shenandoah Telecommunications — Q3 2024 Earnings Presentation on 6ix