Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Shareholder Meeting (May 2005)
45 slides from Shenandoah Telecommunications's shareholder meeting presentation, May 4, 2005
Slide 1: 2005 Annual Shareholders Meeting
2005 ANNUAL SHAREHOLDERS MEETING SHENANDOAH TELECOMMUNICATIONS COMPANY
Slide 2: Revenue Comparison 1984-2004
Revenue Comparison 1984-2004
Slide 3: Revenue Comparison 1984-2004
Revenue Comparison 1984-2004
Slide 4: Revenue Comparison 1984-2004
Revenue Comparison 1984-2004
Slide 5: Income Comparison 1984-2004
Income Comparison 1984-2004
Slide 6: PCS Customers
PCS Customers Retail Wholesale
Slide 7: Management Team
Management Team
Slide 8: Circle of Excellence
Circle of Excellence
Slide 9: Shentel
‘SHENTEL “4
Slide 10: Industry Consolidation
25.8 12.2 13.6 Revenues ($ billions) 38.5 69.5 Proforma 15.3 23.2 Subscribers (millions) 33.3 36.9 Market Cap ($ billions) NXTL (NASDAQ) FON (NYSE) Ticker Symbol Industry Consolidation Source: The Wireless Advisor, Dec. 2004
Slide 11: Shenandoah Telecommunications Company index comparison
200 180 100 0 19 2 m0 102 2008 008 > SHRDVANDOAH TELSCOMMUNICA TIONS COMPANY wt WASDAQUS. INDEX “BSP SAO INTEGRATED TELECOMMIUNIE ATION SERVICES ‘SHENTEL 9 "8 oucannncacns
Slide 12: 2005 Annual Shareholders Meeting
2005 ANNUAL SHAREHOLDERS MEETING SHENANDOAH TELECOMMUNICATIONS COMPANY
Slide 13: Comparative Results
Comparative Results (in millions, except EPS) $1.34 $10.2 $(2.88) $4.22 Earnings Per Share (EPS) $(21.9) $32.1 Consolidated Net Income Change
Slide 14: Impact of Discontinued Operations
) ) ) Impact of Discontinued Operations (in millions, except EPS) $ 0.5 $ 9.7 $10.2 Net Income – Continuing Operations $0.06 $1.28 $1.34 Earnings Per Share 22.4 22.4 - Less Discontinued Cellular Operations $(21.9) $32.1 $10.2 Consolidated Net Income Change
Slide 15: Operating Income Results
Operating Income Results (in millions) $ 19.6 101.4 $121.0 $ 1.0 $ 18.6 Operating Income 14.4 87.0 Operating Expense $15.4 $105.6 Revenue Change
Slide 16: Revenue
Revenue (in millions) $ 83.2 30.7 7.1 $121.0 $ 13.6 1.7 0.1 $ 15.4 $ 69.6 29.0 7.0 $105.6 Wireless Wireline Other Total Change
Slide 17: Year End Customers
) ) ) ) Year End Customers Telephone Cable Long Distance PCS Retail Wholesale Internet Dial Up DSL Change (186) (65) 17,474 14,479 (2,369) 1,348 24,877 8,696 9,526 85,139 12,858 17,420 1,298 24,691 8,631 9,918 102,613 27,337 15,051 2,646
Slide 18: Operating Expenses
Operating Expenses (in millions) $ 15.8 36.3 19.0 30.3 $101.4 $ 2.4 4.6 2.4 5.0 $14.4 $13.4 31.7 16.6 25.3 $87.0 Cost of Goods Network Operating Depreciation Selling, General & Administration Total Change
Slide 19: Business Segments Net Income
) ) ) ) ) Business Segments Net Income (in millions) (1.2) $10.2 7.3 $4.1 (2.0) $0.5 0.8 $9.7 Other Total (0.6) 7.9 Wireline $3.1 $1.0 Wireless Change
Slide 20: Net Income Excluding the Sale Proceeds of VA-10
Net Income Excluding the Sale Proceeds of VA-10
Slide 21: Net Income Excluding the Sale Proceeds of VA-10
Net Income Excluding the Sale Proceeds of VA-10 Sale VA-6 Gain Verisign Stock Major Issues: Loss Verisign Stock Sprint Settlement & Other Adjustments Sarbanes/ Oxley
Slide 22: Net Income Normalized for the Major Issues
Net Income Excluding the Sale Proceeds of VA-10 Normalized for the Major Issues
Slide 23: Q1 Results
Q1 Results (in millions) $3.7 2.1 0.9 $6.7 $1.8 1.5 0.8 2.3 $6.4 $0.3 $18.9 7.1 1.7 $27.7 $ 3.7 8.3 4.3 7.1 $23.4 $ 4.3 $22.6 9.2 2.6 $34.4 $ 5.5 9.8 5.1 9.4 $29.8 $ 4.6 Revenue – Wireless – Wireline – Other Total Expenses – Cost of Goods – Network Operating – Depreciation – SG & A Total Operating I
Slide 24: Q1 Results
Q1 Results (in millions) $0.1 0.2 0.1 -- $0.3 0.3 Change $2.3 0.2 0.8 1.4 $4.3 -- $2.4 0.4 0.9 1.4 $4.6 (0.3) Net Income Other Income Interest Expense Income Taxes Operating Income Loss on Investments
Slide 25: Customer Survey
CUSTOMER SURVEY Conducted in February 2005 By Polk-Lepson Research Group
Slide 26: Evaluation of Shentel's Telephone Service
Evaluation of Shentel’s Telephone Service 1.2% 6.1% 92.7% 4.61 Courtesy and professionalism of technicians 2.0% 12.5% 85.5% 4.29 Overall rating 27.5% 23.1% 49.5% 3.32 Reasonableness of long distance rates 3.8% 26.5% 69.8% 3.95 Value of service versus price 5.5% 26.6% 71.7% 3.99 Reasonableness of loc
Slide 27: Evaluation of Shentel's Cable Television Service
Evaluation of Shentel’s Cable Television Service 9.7% 28.2% 62.2% 3.77 Overall rating 26.4% 28.0% 45.6% 3.31 Reasonableness of price 15.6% 26.3% 58.1% 3.66 Choice of packages 13.7% 25.8% 60.6% 3.72 Options within your budget 10.1% 26.1% 62.7% 3.81 Variety of programming 8.7% 22.0% 69.3% 3.90 Shows y
Slide 28: Evaluation of Shentel's Internet Service
Evaluation of Shentel’s Internet Service 7.5% 25.8% 66.8% 3.83 Overall rating 21.2% 28.3% 50.4% 3.45 Notification of viruses 15.4% 26.2% 58.4% 3.63 Speed of accessing Internet 13.3% 26.2% 58.3% 3.65 Reasonableness of rates 9.5% 25.4% 65.2% 3.85 Infrequency of down time 7.2% 19.3% 73.5% 4.05 Quality
Slide 29: Evaluation of Shentel's Service and Installation
Evaluation of Shentel’s Service and Installation 1.2% 8.4% 91.7% 4.52 Overall rating 2.0% 10.7% 89.3% 4.44 Ease of arranging service and installation 1.2% 8.9% 91.1% 4.51 Work done at scheduled time 1.2% 9.5% 90.5% 4.53 Technicians following your directions 0.9% 7.0% 92.9% 4.57 Knowledgeable service
Slide 30: Evaluation of Shentel's Customer Service
Evaluation of Shentel’s Customer Service 2.3% 7.6% 90.1% 4.46 Overall rating 4.3% 9.3% 86.4% 4.33 Ability of staff to correct problems 2.6% 10.9% 86.6% 4.36 Returns your calls promptly 2.1% 8.6% 89.3% 4.44 Ease of reaching customer service 1.7% 8.0% 90.3% 4.50 Transfers you to correct person 1.9% 7.
Slide 31: Overall Rating of Shentel
Overall Rating of Shentel 2.0% 11.6% 86.4% 4.33 Overall rating of Shentel Score of 1 & 2 Score of 3 Score of 5 & 4 Average Source: Polk-Lepson Research Group Rating: 5 -Excellent 4 -Very Good 3-Average 2- Needs Improvement 1 - Poor
Slide 32: Would Recommend Shentel
Would Recommend Shentel 11.1% 88.9% As an Internet service provider 14.7% 85.3% As a cable service provider 3.1% 96.9% As a telephone service provider Would Not Recommend Shentel Would Recommend Shentel Source: Polk-Lepson Research Group Rating: 5 -Excellent 4 -Very Good 3-Average 2- Needs Improveme
Slide 33: Evaluation of NTC's Service and Installation
Evaluation of NTC’S Service and Installation 6.2% 20.5% 73.3% 3.99 Overall rating 8.1% 16.5% 75.4% 4.02 Technicians following your directions 6.1% 15.9% 78.0% 4.03 Ease of arranging service 9.2% 13.3% 77.4% 4.05 Service done at scheduled time 7.6% 13.9% 78.5% 4.08 Knowledgeable technicians 6.6% 14.1
Slide 34: Evaluation of NTC's Customer Service
Evaluation of NTC’s Customer Service 16.1% 26.7% 57.1% 3.54 Overall rating of NTC’s Customer Service 27.2% 29.7% 43.0% 3.23 Returns your calls promptly 20.8% 28.2% 51.0% 3.39 Ease of reaching customer service 21.4% 25.4% 53.1% 3.42 Ability to correct problems 16.0% 19.8% 64.2% 3.67 Treats you with r
Slide 35: Overall Rating of NTC
Overall Rating of NTC 12.9% 30.8% 56.3% 3.60 Overall rating of NTC Score of 1 & 2 Score of Score of 5 & 4 Mean Average JMU Score of 1 & 2 Score of 3 Score of 5 & 7.4% 29.3% 63.2% 3.80 Overall rating of NTC Mean Average 17.1% 32.1% 50.8% 3.45 Overall rating of NTC Score of 1 & 2 Score of 3 Score of 5
Slide 36: 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 37: Regulation G Disclosure
Regulation G Disclosure This presentation references historical information excluding significant one time events, which had a material impact on the financial statements of the Company. This information is provided to assist the reader in understanding the core operations of the Company. This infor
Slide 38: Shentel Converged Services / NTC Business Overview
Shentel Converged Services / NTC Business Overview
Slide 39: NTC Acquisition
NTC Acquisition Original Shentel investment in 2001 Off-Campus Student Housing Focus Student Demographic = High Demand CATV, Telephone, Internet Bundle
Slide 40: NTC – Key Statistics
NTC – Key Statistics Serving 13 Colleges, 112 Properties, 7 Southeast States 70% of Properties in Harrisonburg, VA & Blacksburg, VA 2005 Q1 Revenues $2.3 Million Customer Segments
Slide 41: NTC Business Plan
NTC Business Plan Exclusive, Long-Term Contracts Equipment & Wiring Investment “Bulk” or “Retail” Billing “Bundled” Services & Pricing Easy to buy – “Plug In and Go!” Local Market Service Technicians Close Property Manager Relationships Advanced Technologies
Slide 42: Strategic Fit for Shentel
Strategic Fit for Shentel Consistent with Shentel Diversification Strategy Shentel strength building & operating Internet, TV, & Phone Services Natural Southeast Expansion of Shentel Serving Area New “High-Tech” Customer Base & New Revenue Stream Cost Reduction & Centralization into Shentel Operatin
Slide 43: Work to Do
Work to Do Managing Decentralized Personnel & Remote Locations College Student Demands…bandwidth, customer service hours, price Revenue & Installation Seasonality of School Year Acclimation of NTC people & processes into Shentel Driving Improvements in Service Quality & Customer Satisfaction Offsett
Slide 44: The Growth Opportunity
The Growth Opportunity Better Penetration in Existing Markets including Non-Student Apts “Purposeful” Property Selection to improve Economics of each market Expand Model to New High-Density Housing on Shentel’s Fiber Route Trial New Technology Services to “early adopter” Customer base Local Sales Pr
Slide 45: 2005 Annual Shareholders Meeting
2005 ANNUAL SHAREHOLDERS MEETING SHENANDOAH TELECOMMUNICATIONS COMPANY
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