Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q4 2008 Earnings Presentation
23 slides from Shenandoah Telecommunications's earnings presentation, Mar 6, 2009
Slide 1: 4Q 2008 Earnings Conference Call
4Q 2008 Earnings Conference Call March 6, 2009 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: 2008 Highlights: Net Income from Continuing Operations
Net Income from Continuing Operations (in millions) 2008 Highlights Record operating results - Net income from continuing operations of $26.3 million Returning value to shareholders - Dividend of $.30/share up 11% Fully funded business plan - $52 million debt facility Positioning the consolidated en
Slide 6: 2008 Highlights: PCS Subscribers and Cell Sites
PCS Subscribers (000s) Number of Cell Sites 52 211 2008 Highlights Wireless growth drives results - 5,685 net subscriber additions for 4Q’08 to 211,462 at year end; average subs up 17% for 2008; churn down to 1.9% in 4Q’08 Investment in wireless for sustained growth - Expansion of EVDO to 86% of the
Slide 7: Economic Environment
Economic Environment Today’s economic environment presents challenges and opportunities… Capital Spending Rationale Careful review of capital projects to prioritize based on payback Being Opportunistic Our balance sheet enables us to take advantage of opportunities which fit our business model Broad
Slide 8: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance
Slide 9: Earnings Per Share from Continuing Operations
Earnings Per Share – Year over Year Earnings per Share from Continuing Operations – Quarter over Quarter $0.44 $0.47 $0.89 $0.94 $1.12 $0.44 $0.46 $0.77 $0.80 $1.04 2006* EPS Continuing Operations EPS EPS $0.19 $0.23 4Q 2007 4Q 2008 Delivering value for Shareholders– EPS growth of 21% in 4Q’08 over
Slide 10: Profitability and Adjusted OIBDA
Cash Flows ($ millions) Profitability Maintaining profitability while investing in growth – Adjusted OIBDA up 5% for 4Q’08 over 4Q’07 12/31/08 12/31/07 12/31/08 12/31/07 Operating Income $9.8 $7.5 $45.6 $36.7 Special items before taxes Early retirement Offering 2.0 Pension Settlement 0.7 0.7 Cost of
Slide 11: Cash Flows ($ millions)
Cash Flows ($ millions) Cash Flows Change Net Cash from Operations $43.7 $50.1 $6.4 Capital Expenditures ($29.1) ($65.5) ($36.4) Cable TV Acquisition ($10.9) ($10.9) Borrowings $23.7 $23.7 Debt Repayments ($4.1) ($4.2) ($0.1) Dividends ($5.8) ($6.5) ($0.7) Other ($0.9) $1.3 $2.2 Free Cash Flow $3.8
Slide 12: Earle MacKenzie, COO and EVP
Earle MacKenzie COO and EVP
Slide 13: Key Operational Results – PCS: Retail Subscribers
Retail Subscribers (000s) Key Operational Results – PCS
Slide 14: Key Operational Results – PCS: Gross and Net Additions
Gross Additions Net Additions Key Operational Results – PCS 21,870 17,329 4Q 2007 4Q 2008 9,214 5,685 4Q’07 4Q’08 75,829 68,693 33,800 24,159
Slide 15: Gross Billed Revenue per User – Data & Voice
Gross Billed Revenue per User – Data & Voice $12.58 $13.63 $43.03 $42.35 Key Operational Results – PCS Billed revenue per subscriber continues to grow – Data revenues growth is sustaining this growth $55.61 $55.98 Data Voice Total
Slide 16: Billed Service Revenues ($ millions)
Billed Service Revenues ($ millions) $80.1 $92.1 $11.1 $15.0 $6.9 $8.1 $16.1 $19.0 PCS Revenues Management & Service Fees Bad Debt Service Credits Net Revenue $114.1 $134.2
Slide 17: PCS Customers Top Picks – Q4'08
PCS Customers Top Picks – Q4’08 Service Plans Everything Messaging Family 1500 Everything Data Family 1500 Simply Everything Handsets Sanyo Katana Samsung Rant LG Lotus Samsung Instinct
Slide 18: Number of Cell Sites
Number of Cell Sites 52 211 318 Meeting PCS Customer Needs Expanded data offering Over 90% POP’s will have EVDO coverage PA coverage improved Capacity increased 2009 Est. EVDO Total
Slide 19: Key Operational Results - Telco
Access lines (000s) Internet Customers (000s) Key Operational Results - Telco Modest access line loss 41% data penetration Increased broadband speeds . 24.5 . -.7% CAGR 6.6 8.1 10.0 9.9 7.5 5.2 DSL customers Dial - up customers
Slide 20: Key Operational Results - Cable
Number of Customers (000’s) 17.1 Key Operational Results - Cable Acquisition of 17,000 new customers Expect to offer triple play to 85% of acquired homes passed by year end 8.6 8.7 8.4 8.3 25.4 Shen. Co. Acquired Total
Slide 21: Q&A
Q&A
Slide 22: Appendix
Appendix
Slide 23: Non-GAAP Financial Measure – Billed Revenue per Subscriber
Non-GAAP Financial Measure – Billed Revenue per Subscriber Dollars in thousands (except subscribers and revenue per subscriber) Gross billed revenue Wireless segment total operating revenues $ 100,151 $ 87,307 Equipment revenue (5,214) (5,015) Other revenue (2,788) (2,238) Wireless service revenue 9
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