Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q3 2010 Earnings Presentation
26 slides from Shenandoah Telecommunications's earnings presentation, Nov 4, 2010
Slide 1: 3Q 2010 Earnings Conference Call
3Q 2010 Earnings Conference Call November 4, 2010 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: Chris French, CEO and President
Chris French CEO and President
Slide 5: 3Q '10 Highlights
3Q ‘10 Highlights q Strategic Growth Initiatives u Cable Acquisitions • Acquisition of Jet Broadband closed on July 30th • Planned purchase of Suddenlink properties in Salem, WV and Oakland, MD u Wireless Prepaid • Purchased approximately 50,000 current Virgin Mobile customers • Began offering Boost
Slide 6: 3Q '10 Cable Highlights
3Q ’10 Cable Highlights q Synergies - Newly acquired JetBroadBand cable subs now on our billing platform q Sales Momentum - 3Q 2010 net RGU additions of 4,112 - includes 8% growth in existing markets q Triple Play - High Speed data available to 88% and voice to 76% of acquired video homes passed
Slide 7: 3Q '10 Wireless Highlights
PCS Postpaid Customers (000s) 3Q ’10 Wireless Highlights q 3G/4G - now selling 3G/4G data cards and 4G handsets q Prepaid - 6,296 net additions and 56,203 prepaid subs at 9/30 q Steady Wireless growth - Postpaid customers up 5% in the last year q Quarterly churn improves - Q3 ‘10 churn of 1.9% compa
Slide 8: 3Q '10 Financial Highlights
Net Income (in millions) Net Income from Continuing Operations (in millions) 3Q ‘10 Financial Highlights q JetBroadBand acquisition- related transaction costs - $3.0 million before tax and $1.8 million after tax q Prepaid - Net loss $1.5 million pre-tax, $0.9 million after-tax q Directory sale - sol
Slide 9: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance
Slide 10: Adjusted OIBDA for the Quarter
Adjusted OIBDA for the Quarter ($ millions) Profitability
Slide 11: Adjusted OIBDA reconciliation by segment
a” SHENTEL Operating Income Depreciation and Amortization OIBDA Share Based Compensation Directory gain Acquisition costs Adjusted OIBDA Wireless Wireline Cable 3Q'09 3Q '10 3Q'09 3Q ‘10 3Q'09 3Q'10 $ 98 $ 9.2 $34 $ 75 $ (1.6) $ (6.3) 5.2 6.4 2.0 2.0 0.9 3.7 15.0 15.6 5.4 95 (0.7) (2.6) 0.1 0.1 ° es
Slide 12: Wireless Segment - Change in Adjusted OIBDA
Wireless Segment - Change in Adjusted OIBDA
Slide 13: Cable Segment - Change in Adjusted OIBDA
Cable Segment - Change in Adjusted OIBDA
Slide 14: Earle MacKenzie, EVP and COO
Earle MacKenzie EVP and COO
Slide 15: Key Operational Results - Wireless: PCS Postpaid Customers
PCS Postpaid Customers (000s) Key Operational Results - Wireless
Slide 16: Key Operational Results - Wireless: Postpaid Additions
Gross Additions - Postpaid Net Additions - Postpaid Key Operational Results - Wireless n Decrease in churn from 2.2% in Q3 ’09 to 1.9% in Q3 ’10 n Continued postpaid net growth
Slide 17: Key Operational Results - PCS: Gross Billed Revenue per User
Gross Billed Revenue per Postpaid User - Data & Voice 1 Key Operational Results - PCS 1 - Before Service credits, bad debt, Sprint Nextel fees. See reconciliation of Non-GAAP financial measures on slide 25
Slide 18: Gross Billed Revenues - Postpaid
Gross Billed Revenues - Postpaid ($ millions) PCS Revenues $36.4 $38.1 *-The Net Service Fee percentage increased from 8.8% to 12% effective 6/1/10, an increase of $1.0 million for Q3 2010.
Slide 19: PCS Prepaid Statistics
PCS Prepaid Statistics Ø Acquired 50K prepaid subscribers effective 7/1/10 § Paid $138 per sub Ø Gross adds of 14,147 Ø Net adds of 6,296 Ø Ending subscribers of 56,203 Ø Churn rate of 5.02%
Slide 20: PCS Customers Top Picks Q3 2010
PCS Customers Top Picks Q3 2010 n Top Service Plans - 63% of Gross Adds u Everything Data Family 1500 - 43% u Everything Messaging Family 1500 - 11% u Everything 450 - 9% n Top Devices - New Activations - All Channels u Samsung Seek - 18% u LG Rumor Touch - 11% u Blackberry 8530 - 10% u HTC EVO 4G -
Slide 21: Key Operational Results - Wireline
Access lines (000s) Internet Customers (000s) Key Operational Results - Wireline n Modest access line loss n Improved broadband penetration to 49% n 11% growth in DSL customers since 9/30/09
Slide 22: RGU Growth by Quarter - Cable
Total RGU's 25,992 25,954 25,675 24,856 26,028 27,901 97,351 RGU Growth by Quarter - Cable Net RGU growth excludes 1,754 RGU’s sold Q4’09 and 65,338 acquired Q3’10
Slide 23: Key Operational Results - Cable
12/31/08 9/30/09 12/31/09 9/30/10 Video Homes Passed 64,365 64,365 56,268 171,662 Penetration 38.9% 37.5% 40.5% 37.6% High-speed Internet Available Homes 19,405 21,962 25,748 136,998 Penetration 5.8% 7.1% 8.1% 20.2% Voice Available Homes 0 0 0 118,627 Penetration n/a n/a n/a 4.4% Key Operational Res
Slide 24: Shentel
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Slide 25: Shentel
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Slide 26: Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber
Dollars in thousands (except subscribers and revenue per subscriber) 3Q '09 3Q '10 Gross billed revenue Wireless segment total operating revenues $28,690 $33,728 Equipment revenue (1,046) (1,712) Other revenue (2,358) (5,843) Wireless service revenue - postpaid 25,287 26,174 Service credits 3,987 3,
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