Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q1 2009 Earnings Presentation
23 slides from Shenandoah Telecommunications's earnings presentation, May 5, 2009
Slide 1: 1Q 2009 Earnings Conference Call
1Q 2009 Earnings Conference Call May 5, 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: 1Q '09 Highlights: Net Income
Net Income (in millions) Net Income from Continuing Operations (in millions) 1Q ‘09 Highlights Net Income - 1Q09 net loss of $4.1 million due to impairment charge Discontinued Operations - Converged Services impairment charge $10.7 million after tax; several interested buyers Strong operating result
Slide 6: 1Q '09 Highlights: Number of Cell Sites
Number of Cell Sites 1Q ‘09 Highlights Cable Triple Play - Upgrade of cable and acquisition integration in progress Investment in wireless for sustained growth – 26 additional EVDO sites and 8 additional cell sites Acquisition of Rural Access Lines – Acquiring approximately 1,000 rural access lines
Slide 7: Operational Issues
Operational Issues Capital Spending Rationale – Will delay some capital projects based on payback should the economic conditions warrant it Broadband Stimulus – We are continuing to monitor the evolving rules for public support of rural broadband development Being Opportunistic – Our balance sheet e
Slide 8: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance
Slide 9: Earnings Per Share
Earnings Per Share Earnings per Share from Continuing Operations – Quarter over Quarter Delivering value for Shareholders – EPS from continuing operations up 13% in 1Q’09 over 1Q’08 EPS - EPS loss of $.18 for 1Q ‘09 as a result of $.45/per share impairment loss EPS
Slide 10: OIBDA ($ millions)
OIBDA ($ millions) Profitability Maintaining profitability while investing in growth – OIBDA up 25% for 1Q’09 over 1Q’08 3% 50% 47% OIBDA Margin $4.0 $19.9 $15.9 OIBDA $1.5 7.8 6.3 Depreciation and Amortization $2.5 $12.1 $9.6 Operating Income Change March 31, 2009 March 31, 2008 Quarter Ended
Slide 11: Cash Flows ($ millions)
Cash Flows ($ millions) Cash Flows Strong operating cash flow – 48% growth in cash generated by operations Capex Well Supported – Increased capital expenditures supported more than adequately by operating cash flow and debt facility Future Cash Flows – New debt facility has equal amortization over s
Slide 12: Earle MacKenzie, EVP and COO
Earle MacKenzie EVP and COO
Slide 13: Key Operational Results – PCS: Retail Subscribers
Retail Subscribers (000s) Key Operational Results – PCS
Slide 14: Key Operational Results – PCS: Net and Gross Additions
Net Additions Gross Additions Key Operational Results – PCS Decrease in store traffic Modest increase in churn from 1.98% in Q1 ‘08 to 2.15% in Q2 ‘09 Lower bad debt in Q1 ‘09 compared to Q1 ’08 (from $2.5m to $1.7m)
Slide 15: Gross Billed Revenue per User – Data & Voice
Gross Billed Revenue per User – Data & Voice 1 Gross Billed revenue per subscriber continues to grow – Data revenues growth continues 1 – Before Service credits, bad debt, Sprint Nextel fees. See reconciliation of Non-GAAP financial measures on slide 23 Key Operational Results – PCS
Slide 16: Gross Billed Revenues ($ millions)
Gross Billed Revenues ($ millions) PCS Revenues $31.4 $36.0
Slide 17: PCS Customers Top Picks Q1 2009
PCS Customers Top Picks Q1 2009 Top Service Plans Everything Messaging Family 1500 Everything Data Family Simply Everything 48% of Gross Adds Top Devices LG Rumor 17% LG Lotus 16% Samsung Rant 9% Mobile Data Cards 8% Samsung Instinct 3% Equipment Sales Shentel Controlled Channels
Slide 18: Meeting PCS Customer Needs: Number of Cell Sites
Number of Cell Sites Meeting PCS Customer Needs On track to complete 2009 construction plans Expanded data offering Over 90% POP’s will have EVDO coverage by year end 2009 PA coverage improved Capacity increased
Slide 19: Key Operational Results - Telco
Internet Customers (000s) Access lines (000s) Key Operational Results - Telco Modest access line loss 43% data penetration 2009 Capex to increase broadband speeds to 10Mbps 1 DSL only available within LEC area 2 Dial-up offered inside and outside the LEC area
Slide 20: Key Operational Results - Cable
Number of Customers (000’s) Key Operational Results - Cable Integrating acquisition of 17,000 new customers Converting acquired systems to our billing platform Upgrade underway to enable us to offer triple play to 85% of acquired homes passed by year end 2009 Re-launch of the first acquired market i
Slide 21: OY SHENTEL
OY SHENTEL
Slide 22: OY SHENTEL
OY SHENTEL
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) 1Q ‘09 1Q ‘08 Gross billed revenue Wireless segment total operating revenues $28,804 $ 24,407 Equipment revenue (1,270) (1,300) Other revenue (2,174) (2,055) Wireless servi
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