Shenandoah Telecommunications Co · NASDAQ:SHEN

Shenandoah Telecommunications — Shareholder Meeting (April 2010)

33 slides from Shenandoah Telecommunications's shareholder meeting presentation, Apr 20, 2010

  1. Slide 1: Annual Shareholder Meeting

    Annual Shareholder Meeting April 20, 2010

  2. 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

  3. 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

  4. Slide 4: Net Income from Continuing Operations

    Net Income from Continuing Operations $26.1 $25.1 $21.9 $20.5 In millions $10.7 2005 2006 2007 2008 2009 4

  5. Slide 5: Cable Segment Operating Losses

    Cable Segment Operating Losses (0.92) (1.81) In millions (6.07) 2007 2008 2009 5

  6. Slide 6: Cable Segment RGU Growth

    Cable Segment RGU Growth 935 (69) (38) (279) 1Q '09 2Q '09 3Q '09 4Q '09 Excludes the impact of RGU’s in markets sold in 4Q’09 6

  7. Slide 7: Wireless Segment

    Wireless Segment PCS Subscribers (000s) Number of Cell Sites EVDO 223 476 411 211 346 187 334 211 2007 2008 2009 2007 2008 2009 7

  8. Slide 8: Need for Diversification

    Need for Diversification 180.0 Cable 160.0 Wireless 140.0 4% Wireline Revenues ($ million) 120.0 100.0 80.0 72% 60.0 40.0 40% 20.0 52% 23% 0.0 96% 1989 1999 2009 8

  9. Slide 9: Acquisition of Jet Broadband

    Acquisition of Jet Broadband Diversification Scale Coaxial Network Synergies Geographic Fit Leveraging Core Competencies 9

  10. Slide 10: JBB Network

    SHENTEL JBB Network ~\ 4/ Winchester (4 (SY Edinburg Ashburn Glenville Franklin ’ Charleston Webster Springs F Summersville Harrisonburg i} « Marlinton é U Charlottesville 7 e 4 cA Covington 4 ‘ ’ oy 7 . Mullens\Pineville oe” r) Richmond a ’ Welch\Northfork Blacksburg ae x Radford mee z o- oe -O Wyt

  11. Slide 11: Percent of Homes Passed with Services

    Percent of Homes Passed with Services Jet Broadband Industry 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Video Internet Voice 11

  12. Slide 12: Key Operational Metrics With Jet Broadband

    Key Operational Metrics With Jet Broadband Pro Forma for Periods Ending December 31, 2009 Cable Homes Passed (in 000’s) 2009 Pro Forma 170 55 Existing With JBB Acquisition 12

  13. Slide 13: Key Operational Metrics With Jet Broadband

    Key Operational Metrics With Jet Broadband Pro Forma for Periods Ending December 31, 2009 RGU’s (in 000’s) 2009 Pro Forma 92 25 Existing With JBB Acquisition 13

  14. Slide 14: Key Operational Metrics – With Acquisition

    Key Operational Metrics – With Acquisition Pro Forma for Periods Ending December 31, 2009 Revenues (in millions) 2009 Pro Forma 205 161 Existing With JBB Acquisition 14

  15. Slide 15: Key Operational Metrics – With Acquisition

    Key Operational Metrics – With Acquisition Pro Forma for Periods Ending December 31, 2009 Operating Income Before Depreciation and Amortization (in millions) 2009 Pro Forma 89 75 Existing With JBB Acquisition 15

  16. Slide 16: Adele Skolits, CFO and VP of Finance

    Adele Skolits CFO and VP of Finance 16

  17. Slide 17: Earnings Per Share (EPS)

    Earnings Per Share (EPS) EPS Continuing Operations EPS $1.20 $1.11 $1.06 $1.03 $1.00 $0.93 $0.88 $0.79 $0.80 $0.76 $0.64 $0.60 $0.46 $0.45 $0.40 $0.20 $0.00 2005 2006* 2007 2008 2009 *-Includes gain on sale of Rural Telephone Bank stock of $.27 in EPS from Continuing Operations and EPS 17

  18. Slide 18: Profitability ($millions)

    Profitability ($millions) Year Ended 12/31: 2009 2008 Change Operating Revenues $160.6 $144.4 $16.2 Operating Expenses 117.8 99.2 18.6 Operating Income 42.8 45.2 (2.4) Depreciation and Amortization 32.6 26.7 5.9 Operating Cash Flow $75.4 $71.9 $3.5 18

  19. Slide 19: Operating Cash Flow

    Operating Cash Flow Change between 2008 and 2009 $7.1 in millions $0.7 ($1.5) ($2.7) Wireless Cable Wireline Other 19

  20. Slide 20: Total Return - 5 Years

    SHENTEL Total Return - 5 Years 350 250 150 50 =e—SHENANDOAH TELECOMMUNICATIONS COMPANY “H- NASDAQ U.S. INDEX ot NASDAQ TELECOMMUNICATIONS INDEX 2004 2005 2006 2007 2008 2009 20

  21. Slide 21: Level of Debt

    Level of Debt Periods Ending December 31, 2009 Debt (in millions) 2009 Pro Forma 198 33 Existing With JBB Acquisition 21

  22. Slide 22: Level of Debt

    Level of Debt Debt to Operating Cash Flow 5.0 Debt to Cash from Operations 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 22

  23. Slide 23: Shareholder Services

    Shareholder Services Direct Registration -Eliminates the need for physical stock certificates -Eliminates the risk of certificates being lost, stolen or destroyed -To use, need to surrender paper certificates -Entirely optional Householding -Will now only send one copy of the proxy statement and ann

  24. Slide 24: Earle MacKenzie, COO and EVP

    Earle MacKenzie COO and EVP 24

  25. Slide 25: Key Operational Results – Wireless

    Key Operational Results – Wireless PCS Retail Subscribers (000s) 223 211 187 154 123 2005 2006 2007 2008 2009 25

  26. Slide 26: Key Operational Results – Wireless

    Key Operational Results – Wireless PCS Gross Additions PCS Net Additions 68,693 24,159 64,273 11,356 2008 2009 2008 2009 26

  27. Slide 27: Key Operational Results – Wireless

    Key Operational Results – Wireless PCS Gross Billed Data & Voice $55.98 $55.81 $37.02 $42.35 $18.79 $13.63 2008 2009 Data Voice 27

  28. Slide 28: Key Operational Results – Wireless

    Key Operational Results – Wireless PCS Annual Billed Service Revenues (in millions) $144.8 $134.2 $21.1 Management $19.0 $6.8 & Service Fees $8.1 $14.7 Write-offs $15.0 Service Credits $102.2 & Adjustments Net Revenue $92.1 2008 2009 28

  29. Slide 29: Key Operational Results - Wireline

    Key Operational Results - Wireline Access lines (000s) 24.5 24.0 24.4 2007 2008 2009 29

  30. Slide 30: Key Operational Results - Wireline

    Key Operational Results - Wireline Internet Customers (000s) 11.0 9.9 8.1 7.5 4.9 3.4 2007 2008 2009 DSL customers Dial-up customers 30

  31. Slide 31: Key Operational Results - Cable

    Key Operational Results - Cable Number of RGUs (000’s) 26.1 24.9 16.9 8.3 8.1 8. 0 2007 2008 2009 Shen. Co. Acquired 31

  32. Slide 32: Total Capital Expenditures

    Total Capital Expenditures Capital Expenditures by Segment ($ millions) Wireless Wireline Cable Other JetBB Acquisition $65.6 $9.5 $0.5 $20.0 $53.2 $52.2 $3.5 $11.1 $13.5 $3.1 $29.1 $8.7 $12.1 $7.0 $0.2 $45.1 $8.1 $13.5 $27.5 $13.8 $12.4 2007 2008 2009 2010 Actual Actual Actual Estimated 32

  33. Slide 33: Annual Shareholder Meeting

    Annual Shareholder Meeting April 20, 2010

Shenandoah Telecommunications Company — Shareholder Meeting (April 2010) on 6ix