Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Shareholder Meeting (May 2024)
32 slides from Shenandoah Telecommunications's shareholder meeting presentation, May 1, 2024
Slide 1: 2024 Shareholder Meeting April 30, 2024
2024 Shareholder Meeting April 30, 2024
Slide 2: Board of Directors
Principal Occupation Director Since Age Name Executive Coach; Formerly Chief of Connected Planning of Anaplan, Inc. 2022 59 Victor C. Barnes SVP, GC and Secretary of American Public Education, Inc. 2018 56 Thomas A. Beckett President of Shenandoah University 2005 57 Tracy Fitzsimmons Attorney and Sh
Slide 3: Proposals
Proposals Election of directors 1. To elect Thomas A. Beckett, Richard L. Koontz, Jr., and Leigh Ann Schultz for a three - year term that will expire at the annual meeting of shareholders in 2027 Ratification of auditors 2. To ratify the Audit Committee’s selection of RSM US LLP as the Company’s ind
Slide 4: Forward-looking statements
This presentation includes “forward - looking statements” within the meaning of Section 27 A of the Securities Act and Section 21 E of the Securities Exchange Act of 1934 , as amended, regarding our business strategy, our prospects and our financial position . These statements can be identified by t
Slide 5: 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 activitie
Slide 6: Jim Volk, SVP of Finance and CFO
Jim Volk SVP of Finance and CFO
Slide 7: Consolidated Highlights - Full Year Results
7 Consolidated Highlights - Full Year Results Adjusted EBITDA (in millions) Revenue (in millions) Consolidated revenue includes elimination of intercompany activity. 9% CAGR 18% CAGR
Slide 8: Glo Fiber Fueling Consolidated Revenue Growth
Glo Fiber Fueling Consolidated Revenue Growth Glo Fiber Data RGUs Glo Fiber Revenue (in millions) 116% CAGR 8 164% CAGR
Slide 9: Consolidated Financial Highlights
Consolidated Financial Highlights Net Income Per Diluted Share Net Income (in millions) $(8) $8 $(0.17) $0.16 2022 9 2022 2023 2023
Slide 10: Regular Dividend History
Regular Dividend History (per Share, Split Adjusted) $0.00 10 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 2023
Slide 11: Pro-forma Liquidity
Pro - forma Liquidity (in millions) Strong Pro - forma Liquidity Change in Cash (in millions) $109 $150 $225 $484 4/1/2024 Delayed Draw Term Loans Revolver Capacity Cash & Cash Equivalents 11
Slide 12: Shentel has traded in correlation to Cable companies
Shentel has traded in correlation to Cable companies… Source: Market data as of 4/26/2024 Indexed stock trading history over last 12 months Announced sale of remaining stake in Hulu for $8bn Announced $15bn share buyback 12
Slide 13: But has outperformed the Cable companies in key growth metrics
13 ….but has outperformed the Cable companies in key growth metrics Source: Market data as of 4/26/2024, company filings, equity research 1. Shentel revenue and EBITDA figures exclude towers segment 2. Comcast revenue and EBITDA figures represent the Connectivity & Platform Services segment 3. Assum
Slide 14: Shentel - EVP and COO
A\SHENTEL Always connected to you ee eauckey _~ EVP and COO
Slide 15: Integrated Fiber and Cable Broadband Network
Integrated Fiber and Cable Broadband Network 15
Slide 16: Broadband Network: Rapidly Becoming Fiber-Dominant
Broadband Network: Rapidly Becoming Fiber - Dominant Broadband Data Homes and Businesses Passed 16
Slide 17: Glo Fiber: Metrics Consistent with Investment Thesis
Glo Fiber: Metrics Consistent with Investment Thesis Data Churn Data Average Revenue per User (ARPU) Revenue Generating Units (RGUs in 000s) Data Penetration 17
Slide 18: Vintage Glo Fiber Penetration
Vintage Glo Fiber Penetration as of 12/31/2023 Vintage Glo Fiber Penetration Quarter Launched 2023 2022 2021 2020 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 2019 Passings released to sales (000's) 16 18 19 18 14 14 12 6 6 9 8 4 2 31 20 21 17 Expected Average Terminal penetration 38% 18
Slide 19: Incumbent Cable: Key Metrics Trending Well
Incumbent Cable: Key Metrics Trending Well Data Churn Data Average Revenue per User (ARPU) Revenue Generating Units (RGUs in 000s) Data Penetration 19
Slide 20: Broadband - Commercial Fiber Metrics
Broadband - Commercial Fiber Metrics Monthly Compression and Churn 1 Installed Monthly Revenue Monthly Revenue Sales Bookings Backhaul Connections 1 Excludes impact of T - Mobile network rationalization 20
Slide 21: Investing for a Fiber-First Future
Investing for a Fiber - First Future Capex Spending ($ in millions) 21
Slide 22: Horizon Telcom Transaction Accelerates our Fiber First strategy
22 Horizon Telcom Transaction x Accelerates our Fiber First strategy • Doubles the size of our commercial fiber business • Creates new beachhead for Glo Fiber expansion x Diversifies Shentel geographically x Expected to increase most key metrics by ~ 25% x Provides sizeable expected synergy opportun
Slide 23: Combination Creates Leading Super-Regional Network
Combination Creates Leading Super - Regional Network Shentel 23
Slide 24: Shentel + Horizon = Win Together
• Similar history and strategies • Investing in state - of - the - art communication services in rural markets • Providing outstanding local customer service • Complementary core competencies • Shentel: residential focus and proven FTTH expansion platform • Horizon: advanced commercial fiber busines
Slide 25: Chris French, Chairman, President & CEO
Chris French Chairman, President & CEO
Slide 26: Long-Term Growth in Value
Long - Term Growth in Value 1 original share of FMTS stock would have split to 2,880 shares in 2004 and 17,280 shares in 2024. $86,227 $231,379 $384,365 Value of One Original FMTS Share $615,744 2004 Stock Value 2024 Cumulative Cash Dividends 26
Slide 27: Questions & Answers
Questions & Answers SHENTEL’
Slide 28: 2024 Shareholder Meeting April 30, 2024
2024 Shareholder Meeting April 30, 2024
Slide 29: Appendix
Appendix SHENTEL’
Slide 30: 2023 & 2022 Adjusted EBITDA by Segment
2023 & 2022 Adjusted EBITDA by Segment 30 Year Ended December 31, 2023 Consolidated Corporate & Eliminations Tower Broadband (in thousands) $ 8,038 $ (43,765) $ 9,495 $ 42,308 Net income (loss) from continuing operations 65,471 1,471 2,103 61,897 Depreciation and amortization 2,552 — — 2,552 Impairm
Slide 31: 2021 Adjusted EBITDA by Segment
2021 Adjusted EBITDA by Segment 31
Slide 32: Broadband Average Revenue per User (ARPU)
2023 2022 2021 Incumbent Cable $108,822 $105,433 $97,848 Data Residential & SMB Revenue ($000’s) 109,591 108,053 103,216 Average Revenue Generating Units $82.75 $81.31 $79.00 Average Revenue per User (ARPU) 32 Broadband Average Revenue per User (ARPU) 2023 2022 2021 Glo Fiber $30,280 $15,370 $6,586
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