Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Shareholder Meeting (May 2006)
39 slides from Shenandoah Telecommunications's shareholder meeting presentation, May 3, 2006
Slide 1: 2006 Annual Shareholders Meeting
Exhibit 99.1 2006 ANNUAL SHAREHOLDERS MEETING SHENANDOAH TELECOMMUNICATIONS COMPANY
Slide 2: Comparative Results
. . Comparative Results (in millions, except per share amounts) 0.46 1.39 10.7 19.4 146.4 7.0 0.43 Cash Dividend (per share) 6.1 1.31 EPS – diluted 7.0 10.0 Total Net Income 7.6 18.0 Operating Income 21.0 121.0 Revenues % Change (restated)
Slide 3: Assets, Equity, Debt and Other Liabilities
250 200 150 100 50 2001 2002 03 2008 2008 GAssets — DEquity _ @Total Debt _ Other Liabilities ‘SHENTEL
Slide 4: 2004 and 2003 Financials Restated
2004 and 2003 Financials Restated Corrected previous accounting for operating leases No change to cash expense or revenues from leases Accounting Weaknesses Income Tax Review and Calculations Lacked internal controls and expertise Supplementing in-house staff with external expertise
Slide 5: (spuesnoy))
(spuesnoy)) 3 3 — 5S — 5 3 Jan- Ji Jan- Jul- Jan- Jul- 12 8 1 602 ks @ Retail BWI 01 ‘SHENTEL
Slide 6: Tackley Mill
Tackley Mill
Slide 7: Critical Milestone - 100% DSL Availability
Critical Milestone - 100% DSL Availability “Internet Access Essential for Rural Virginia” Rural Virginia Prosperity Commission Report, April 25, 2006 “Rural Areas Neglected by Broadband Providers” Washington Post, March 14, 2006 “U.S. Lags Behind in High-Speed Internet Access” Wall Street Journal, A
Slide 8: Competition for regulated telephone services
Competition for regulated telephone services Customer owned equipment Long distance service Breakup of Bell System Introduction of mobile communications Cellular Personal Communications Service (PCS) The Internet Industry Change
Slide 9: Business Segments
Business Segments Assets Revenues
Slide 10: Options with Sprint-Nextel
- Negotiate a new, long-term agreement Sell PCS business to Sprint-Nextel Pursue legal claims for breach of existing Agreement Options with Sprint-Nextel
Slide 11: Major Questions
-Will there be a sale? If so, what will be the sale price? What will be the tax effect? What would the Company do with the proceeds? Major Questions
Slide 12: Future Options
Invest in new ventures or acquisitions Special dividend Stock buyback Future Options
Slide 13: Present Mix of Businesses
Present Mix of Businesses Traditional Services Telephone CATV Mobile (Towers) Shentel Services (Internet) Network Long Distance Personal Communications Services New Ventures NTC Communications Shentel Wireless Converged Services of WV
Slide 14: Rate of Growth: Present Mix of Businesses
Rate of Growth Present Mix of Businesses New Ventures PCS Traditional Services
Slide 15: Rate of Growth: Mix Post Sale
Rate of Growth Mix of Businesses Post Sale New Ventures Traditional Services
Slide 16: Traditional, PCS, New Ventures
120 100 Traditional Pcs New Ventures ‘ SHENTEL
Slide 17: Traditional, PCS, New Ventures
100 ($mi ° || ° Traditional Pcs New Ventures ‘SHENTEL
Slide 18: Traditional, PCS, New Ventures
20 15 ($mi a Traditional Pcs New Ventures ~SHENTEL
Slide 19: Traditional, PCS, New Ventures
10 ($mi iy Traditional Pcs New Ventures ~SHENTEL
Slide 20: Shenandoah Telecommunications vs NASDAQ Indexes
300 250 200 150 100 30 2000 2001 2002 2003 2004 2005 + SHENANDOAH TELECOMMUNICATIONS COMPANY “# NASDAQ U.S. INDEX ~# NASDAQ TELECOMMUNICATIONS INDEX ‘SHENTEL
Slide 21: 2006 Annual Shareholders Meeting
2006 ANNUAL SHAREHOLDERS MEETING SHENANDOAH TELECOMMUNICATIONS COMPANY
Slide 22: Comparative Results
Comparative Results (in millions, except EPS) $1.39 $10.7 6.1% $1.31 Earnings Per Share (EPS) 7.0% $10.0 Consolidated Net Income % Change (Restated)
Slide 23: Operating Income Results
Operating Income Results (in millions) $ 19.4 127.0 $146.4 7.6% $ 18.0 Operating Income 26.3% 103.0 Operating Expense 21.0% $121.0 Revenue % Change (Restated)
Slide 24: Reporting Segments: Revenue
Reporting Segments Revenue (in millions) 6.0 % 13.3 14.1 Other 6.5% 3.1 3.3 Mobile 140.0% 0.7 9.8 Converged Services (NTC) 4.2% 23.7 24.7 Telephone $146.4 $ 94.4 21.0% $121.0 17.7% $ 80.2 PCS % Change (Restated)
Slide 25: Year End Customers
Year End Customers 5.6% Mobile/Tower Leases-Non Aff. (16.9%) 79.4% 15,051 2,646 12,514 4,748 Internet Dial Up DSL 5.0% 9,918 10,214 Long Distance 0.6% 8,631 8,684 Cable 0.2% 24,691 24,740 Telephone 22,326 8,461 9,914 Converged Services (NTC) Network Video Phone PCS Retail Wholesale Change 19.8% 41.7
Slide 26: Operating Expenses
Operating Expenses (in millions) Total Selling, General & Admin. Depreciation & Amort. Cost of Goods & Services 10.6% 22.9% $103.3 $127.0 5.6 % 16.3 % 38.1 44.3 5.5% 17.9% 19.0 22.4 17.8% 24.3% $45.8 $60.3 (Restated) W/O NTC % Change
Slide 27: Reporting Segments: Net Income
Reporting Segments Net Income (in millions) 7.0% $10.0 $10.7 Total 20.0 % ( 0.5 ) ( 0.4 ) Other -- 1.1 1.1 Mobile (330.0%) (0.1) (3.3) Converged Services (NTC) 17.9% 6.7 7.9 Telephone 92.9% $ 2.8 $ 5.4 PCS % Change
Slide 28: Q1 Results: Revenue
Q1 Results Revenue (in millions) % Change Q1 Q1 5.9 % 15.7% 3.4 $34.4 3.6 $39.8 Other Total 12.5% 0.8 0.9 Mobile 16.7% 2.4 2.8 Converged Services (NTC) 5.0% 6.0 6.3 Telephone 20.2% $21.8 $26.2 PCS
Slide 29: Q1 Results: Operating Income
Q1 Results Operating Income (in millions) 0.0 % (6.7%) 0.0 $4.5 ( 0.8 ) $4.2 Other Total 0.0% 0.5 0.5 Mobile (100.0%) (0.8) (1.6) Converged Services (NTC) 16.7% 3.0 3.5 Telephone 44.4% $1.8 $2.6 PCS Q1 % Change Q1
Slide 30: Q1 Results: Net Income
Q1 Results Net Income (in millions) 370.0% $2.3 $8.5 Total 0.0% 0.3 0.3 Mobile 150.0 % (0.2) ( 0.5 ) Other 100.0% (0.6) (1.2) Converged Services (NTC) 452.6% 1.9 8.6* Telephone * Includes $6.4 million net of tax gain from liquidation of the Rural Telephone Bank 44.4% $0.9 $1.3 PCS Q1 % Change Q1
Slide 31: Affiliate Transactions
Affiliate Transactions Sprint-Nextel has acquired six of the former Sprint affiliates: US Unwired Gulf Coast Independent Wireless One (IWO) Alamosa Enterprise Ubiquitel
Slide 32: Affiliate Comparison Chart
20,000,000 16,000,000 12,000,000 8,000,000 4,000,000 Alamosa —Ubiquitel_ US Unwired Shentel Gulf Coast Enterprise ‘SHENTEL
Slide 33: Affiliates by Dollars of Revenue
Affiliates by Dollars of Revenue
Slide 34: Affiliates by Retail Subscribers
Affiliates by Retail Subscribers
Slide 35: Deal Values as Multiple of POPs
Deal Values as Multiple of POPs
Slide 36: Deal Values as Multiple of Revenue
Deal Values as Multiple of Revenue
Slide 37: Deal Values as Multiple of Subscribers
Deal Values as Multiple of Subscribers
Slide 38: Disclosure Regarding Forward-Looking Statements
Disclosure Regarding Forward-Looking Statements 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
Slide 39: 2006 Annual Shareholders Meeting
2006 ANNUAL SHAREHOLDERS MEETING SHENANDOAH TELECOMMUNICATIONS COMPANY
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