30 slides from Shenandoah Telecommunications's earnings presentation, May 4, 2012
Slide 1: 1Q 2012 Earnings Conference Call
1Q 2012 Earnings Conference Call May 4, 2012 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: 2012 Financial Highlights
Net Income (in millions) Net Income from Continuing Operations (in millions) 2012 Financial Highlights q Revenue Growth- Revenues grew by $8.4 million q Depreciation and Amortization Expense- $2.0 million due to acceleration of Wireless network asset depreciation ahead of Network Vision upgrades q A
Slide 6: 1Q'12 Highlights
1Q’12 Highlights q Revenue Growth Revenue grew 13.9% over 1Q’11 to $68.8 million. q Customer Growth
Slide 7: Wireless Highlights
PCS Customers (000s) Wireless Highlights q Steady Postpaid growth Postpaid customers up 5.4% in the last year q Rapid Prepaid Growth Q1’12 net additions of 7,285; 114k prepaid subs at 03/31 q Prepaid Churn improves Q1’12 churn of 3.65% compared to 4.50% for Q1’11 q Earnings Improve Q1’12 operating i
Slide 8: Cable Highlights
Cable Highlights q Cable Upgrades u Markets acquired in mid-2010 are approximately 90% complete u Remainder scheduled for 2012 q RGU Growth u Total RGU growth of 1.7% in Q1’12 u 139,599 RGUs at 3/31/2012
Slide 9: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance
Slide 10: Adjusted OIBDA Profitability
Adjusted OIBDA ($ thousands) Profitability
Slide 11: Adjusted OIBDA by Segment
a” SHENTEL (in thousands) Operating Income Depreciation and Amortization OIBDA Plus loss on asset sales Share based compensation Adjusted OIBDA Wireless Cable Wireline $ 101 $ 105 $ (5.7) $ (45) $ 38 $ 38 6.2 7.8 5.7 5.9 19 22 16.3 18.3 - 1.4 5.7 6.0 0.1 0.1 0.1 0.1 0.1 0.1 $16.4 $184 $01 $15 $58 $
Slide 12: Wireless Segment - Change in Adjusted OIBDA Q1'12 vs. Q1'11
Wireless Segment - Change in Adjusted OIBDA Q1’12 vs. Q1’11
Slide 13: Cable Segment - Change in Adjusted OIBDA Q1'12 vs. Q1'11
Cable Segment - Change in Adjusted OIBDA Q1’12 vs. Q1’11
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: Gross Additions and Net Additions - Postpaid
Gross Additions - Postpaid Net Additions - Postpaid Key Operational Results - Wireless n Q1 2012 net adds of 2,064 versus 3,016 Q1 2011 net adds n Q1 2012 churn of 1.86% similar to Q4 2011, increased from 1.76% in Q1 2011 n Shentel-controlled channels produced 50% of gross adds in Q1 2012 and 55% of
Slide 17: Gross Billed Revenue per Postpaid User - Data & Voice
Gross Billed Revenue per Postpaid User - Data & Voice 1 Key Operational Results - PCS 1 - Before Service credits, bad debt, Sprint Nextel fees.
Slide 18: Gross Billed Revenues - Postpaid
Gross Billed Revenues - Postpaid ($ millions) PCS Revenues $39.7 $45.3
Slide 19: Postpaid PCS Customers Top Picks Q1 2012
Postpaid PCS Customers Top Picks Q1 2012 n Smartphones made up 57% of the Postpaid base in Q1 2012, up from 53% in Q4 2011 and 39% in Q1 2011 n Top Service Plans - 75% of Gross Adds u Everything Data Family 1500 - 49% u Everything 450 - 18% u Business Advantage Talk 200 - 5% u Everything Messaging F
Slide 20: iPhone Statistics - Q1'12
iPhone Statistics - Q1’12 n 20% of Q1 Gross Adds n 51% of iPhones were sold or upgraded in Shentel- controlled channels n 6.8% of 3/31/2012 Postpaid customers had the iPhone, up from 3.6% at 12/31/11 u 60% iPhone 4S u 40% iPhone 4
Slide 21: PCS Prepaid Statistics: Gross Additions and Cumulative Customers
Gross Additions (000s) Cumulative Customers (000s) PCS Prepaid Statistics
Slide 22: PCS Prepaid Statistics: Churn and Average Gross Billed Revenue
Churn % Average Gross Billed Revenue PCS Prepaid Statistics
Slide 23: Cable - RGU Growth by Quarter
Cable - RGU Growth by Quarter Customers 74,657 73,930 75,131 75,348 76,130 RGU's/Customer 1.75 1.77 1.81 1.82 1.83
Slide 24: Cable Statistics: Average Monthly Revenue per RGU
Average Monthly Revenue per RGU Average Monthly Revenue per Customer Cable Statistics
Slide 25: Key Operational Results - Cable
Key Operational Results - Cable Note : Video homes passed includes 16K homes located in Shenandoah County, VA, where internet and voice services are provided by the Wireline segment.
Slide 26: Key Operational Results - Wireline
Internet Customers (000s) Key Operational Results - Wireline n Modest access line loss of 3% in past 12 months n Continued broadband penetration in LEC area to 55% n 3% growth in DSL customers since 03/31/11, partially offsetting access line losses, resulting in total connections of 35.3 thousand
Slide 27: Capex Spending: Investing in the Future
Capex Spending Investing in the Future n All remaining systems in West Virginia and Maryland to have upgrades completed in 2012 n Upgrade of Jet Network is approximately 90% complete n Network Vision expected to drive $60M of spend in 2012
Slide 28: Shentel
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Slide 29: Shentel
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Slide 30: Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber
Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber