Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q4 2009 Earnings Presentation
27 slides from Shenandoah Telecommunications's earnings presentation, Mar 4, 2010
Slide 1: 4Q 2009 Earnings Conference Call
4Q 2009 Earnings Conference Call March 4, 2010
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: 2009 Highlights: Net Income from Continuing Operations
Net Income from Continuing Operations (in millions) 2009 Highlights q Strong operating results - Net income from continuing operations of $25.1 million q Returning value to shareholders - Dividend of $.32/share up 7% q Positioning the consolidated enterprise to maximize shareholder returns - Investe
Slide 6: 2009 Highlights: Cable Segment RGU Growth and Operating Losses
Cable Segment RGU’s Growth (1) Cable Segment Operating Losses 2009 Highlights q Acquired networks - Completed integration of 17,000 customers and 42,000 homes passed q Enhanced networks - 64% of acquired homes passed upgraded at 12/31/09 q Sales results improving - The cable network upgrades which b
Slide 7: 2009 Highlights (Continued): PCS Subscribers and Cell Sites
PCS Subscribers (000s) Number of Cell Sites 2009 Highlights (Continued) q Wireless growth drives results - 3,465 net subscriber additions for 4Q’09 to 222,818 at year end; average subs up 8% for 2009 q Investment in wireless for sustained growth - Expansion of EVDO to 95% of the PCS footprint, 15% g
Slide 8: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance
Slide 9: Earnings Per Share - Year over Year and Quarter over Quarter
Earnings Per Share - Year over Year Earnings per Share from Continuing Operations - Quarter over Quarter EPS n Delivering value for Shareholders- EPS growth of 9% in 4Q’09 over 4Q’08 *-Includes gain on sale of Rural Telephone Bank stock of $.27 in EPS from Continuing Operations and EPS
Slide 10: Results ($ in millions): Profitability
Results ($’s in millions) Profitability Maintaining profitability while investing in growth - OIBDA up 5% for 2009 over 2008
Slide 11: OIBDA Change 2008 to 2009 and 4Q'08 to 4Q'09
Change between 2008 and 2009 Change between 4Q’08 and 4Q’09 OIBDA in millions
Slide 12: Cash Flows ($ millions)
Cash Flows ($ millions) Cash Flows n Record operating cash flow - 48% growth in cash generated by operations n Extended debt facility supports sustained growth - Increased capital expenditures supports cable upgrades and PCS development n Manageable debt service - Debt facility has equal amortizatio
Slide 13: Earle MacKenzie, COO and EVP
Earle MacKenzie COO and EVP
Slide 14: PCS Retail Subscribers (000s)
PCS Retail Subscribers (000s) Key Operational Results - Wireless
Slide 15: PCS Gross Additions and Net Additions
PCS Gross Additions PCS Net Additions Key Operational Results - Wireless
Slide 16: PCS Gross Billed Revenue per User, Quarter over Quarter
PCS Gross Billed Revenue per User Data & Voice Quarter over Quarter Key Operational Results - Wireless n Billed revenue per subscriber declining n Data revenue growth not enough to compensate
Slide 17: PCS Gross Billed Revenue per User, Year over Year
PCS Gross Billed Revenue per User Data & Voice Year over Year Key Operational Results - Wireless n Billed revenue per subscriber declines slightly due to add-a- phone n Data revenue continues to grow
Slide 18: PCS Quarterly Billed Service Revenues ($ millions)
PCS Quarterly Billed Service Revenues ($ millions) Wireless Revenues $35.1 $36.4
Slide 19: PCS Annual Billed Service Revenues ($ millions)
PCS Annual Billed Service Revenues ($ millions) PCS Revenues $134.2 $144.8
Slide 20: PCS Customers Top Picks - Q4'09
PCS Customers Top Picks - Q4’09 n Service Plans u Everything Data Family 1500 u Everything Messaging Family 1500 u Everything Data 450 u 3G Connector Card n Handsets u Samsung Exclaim u Blackberry 8330 u LG Rumor 2 u Data Cards u Sanyo 3810
Slide 21: Meeting PCS Customer Needs: Number of Cell Sites
Number of Cell Sites Meeting PCS Customer Needs n Expanded data offering u Over 95% POP’s have EVDO coverage n PA coverage improved n Capacity increased
Slide 22: Key Operational Results - Wireline
Access lines (000s) Internet Customers (000s) Key Operational Results - Wireline n Added approximately 935 NRTC access lines 11/1/2009 n Modest access line loss n 45% data penetration n Increased broadband speeds - most customers able to get up to 10 Mbps -.7% CAGR
Slide 23: Key Operational Results - Cable
Number of RGUs (000’s) Key Operational Results - Cable n Acquisition of 18,000 new RGUs in Q4’08; sold 1,750 in Q4’09 n 64% of acquired homes passed upgraded as of 12/31/09 n Expect to offer triple play to 100% of acquired homes passed by third quarter 2010
Slide 24: Capex Spending: Investing in the Future
Capex Spending Investing in the Future n Expanding wireless coverage & capacity with 64 new cell sites and data with 125 EVDO sites in 2009 n Increasing broadband speeds to 10 MB in LEC area n Increased miles and capacity of fiber n Upgrade of cable systems to 2-way to provide triple play of service
Slide 25: Shentel
<0" SHENTEL
Slide 26: Shentel
<0" SHENTEL
Slide 27: Non-GAAP Financial Measure - Billed Revenue per Subscriber
Dollars in thousands (except subscribers and revenue per subscriber) 2008 2009 Gross billed revenue Wireless segment total operating revenues $ 106,885 $115,695 Tower lease revenue (6,480) (7,144) Equipment revenue (5,214) (4,522) Other revenue (3,042) (1,833) Wireless service revenue 92,149 102,196
Shenandoah Telecommunications — Q4 2009 Earnings Presentation on 6ix