Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — FBR Capital Markets Fall Investor Conference (December 2009)
35 slides from Shenandoah Telecommunications's conference presentation, Dec 1, 2009
Slide 1: FBR Capital Markets Fall Investor Conference
December 1, 2009 FBR Capital Markets Fall 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
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 Cable u Focus on smaller less competitive markets u Build clusters to gain operating efficiencies u Upgrade networks t
Slide 8: Revenue by Segment
Revenue by Segment Segment Overview Months Ending September 30, 2009 Total External Revenues = $157.5 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 2 remaining Sprint Nextel affiliates n 2.3 million licensed POPs n 2.0 million covered POPs n 219k total subscribers u 11.0% penetration of covered POPs n 448 CDMA base stations n 306 EVDO enabled cell sites u 94% EVDO covered POPs n $41,000 Estimated Average household income
Slide 11: Key Operational Metrics - PCS
Retail Subscribers (000s) Number of Cell Sites Churn (%) Key Operational Metrics - PCS Period Ending EVDO Sites Non-EVDO Sites
Slide 12: Attractive Service Revenue Growth - PCS
Gross Billed PCS Revenue ($ millions) 1 Attractive Service Revenue Growth - PCS Months Ending 1 Before credits and fees 15.6% CAGR
Slide 13: PCS Revenues
Billed Revenue ($ millions) PCS Revenues Months Ending Up 10.7% Bad Debt Management Fee Service Credits Service Fee Net Revenue
Slide 14: PCS Revenue per Subscriber
Gross Billed Revenue per Subscriber 1 PCS Revenue per Subscriber Period Ending 1 Before credits and fees Voice Data
Slide 15: Wireless Segment
Reported Revenue ($ millions) OIBDA ($ millions) Wireless Segment Months Ending 16.8% CAGR
Slide 16: Capital Expenditures - Wireless
Capital Expenditures by Category ($ millions) Capital Expenditures - Wireless Months Ending Cell Sites 332 346 411 475 % Covered POPs 77% 79% 85% 88% EVDO Sites 0 52 211 336 % POPs Covered N/A 27% 86% 94% Other Capacity Coverage EVDO Mobile (Towers)
Slide 17: Agenda
Agenda Introduction and Shentel Overview Overview of Wireless Overview of Wireline Overview of Cable Financials
Slide 18: Wireline Customers
Wireline Customers Months Ending September 30, 2009 n 23.5k LEC access lines n Acquisition of North River Telephone closed November 2nd u 1.0k access lines n 10.5k DSL subscribers n 3.8k dial-up Internet subscribers n 10.8k long distance subscribers n One FTTH community in service outside of LEC are
Slide 19: Wireline Customers
Access lines (000s) Internet Customers (000s) -2.5% CAGR 1 DSL only available within LEC area 2 Dial-up offered inside and outside the LEC area Wireline Customers Months Ending
Slide 20: Wireline Overview
Revenue ($ millions) OIBDA ($ millions) Wireline Overview 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 15k Homes Passed u 7.9k Video Subscribers n Offensive positioning (Outside ILEC) u 44k Homes Passed u 16.2k Video and 1.6k Internet Subscribers n All two-way by mid 2010
Slide 23: Cable TV
RGUs (000s) Revenue ($ millions) OIBDA ($ millions) Cable TV Months Ending 1 Includes Rapid Communications acquisition - December 2008 2 Only includes internet for areas outside ILEC service area Digital Internet 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 Months Ending 10.7% CAGR 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated. Wireless Wireline Cable
Slide 26: Key Financial Results - Continuing Operations
Operating Income ($ millions) Operating Income Before Depreciation & Amortization ($ millions) Key Financial Results - Continuing Operations 1 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 Months Ending 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated. 2 Includes $10.7 million write down of Converged Service Busines
Slide 28: Capital Expenditures by Segment
Capital Expenditures by Segment ($ millions) Total Capex 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 (9/30/2009)
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $39,724 $12,758 ($4,296) ($4,130) $43,876 Depreciation and amortization 19,669 8,502 2,979 332 31,482 OIBDA $59,393 $21,080 ($1,317) ($3,798) $75,358 Non-GAAP Financial Measure - OIBDA Months Ended 9/30/2009
Slide 33: Non-GAAP Financial Measure - OIBDA (9/30/2008)
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $34,834 $14,121 ($1,045) ($5,130) $42,780 Depreciation and amortization 17,184 6,988 1,042 299 25,513 OIBDA $52,018 $21,109 ($3) ($4,831) $68,293 Non-GAAP Financial Measure - OIBDA Months Ended 9/30/2008
Slide 34: Non-GAAP Financial Measure - OIBDA (9/30/2007)
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $27,384 $14,291 ($1,497) ($5,247) $34,931 Depreciation and amortization 16,188 6,030 1,060 240 23,518 OIBDA $43,572 $20,321 ($437) ($5,007) $58,449 Non-GAAP Financial Measure - OIBDA Months Ended 9/30/2007
Slide 35: FBR Capital Markets Fall Investor Conference
December 1, 2009 FBR Capital Markets Fall Investor Conference
Shenandoah Telecommunications — FBR Capital Markets Fall Investor Conference (December 2009) on 6ix