31 slides from Shenandoah Telecommunications's earnings presentation, Nov 2, 2012
Slide 1: 3Q 2012 Earnings Conference Call
November 2, 2012 3Q 2012 Earnings Conference Call 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: President and CEO
President and CEO
Slide 5: Recent Events
Recent Events n SoftBank to Acquire 70% Stake in Sprint § Shentel affiliate agreement survives Sprint change in control § Affiliate agreement initial term to 2024 n Annual Dividend § Declared a cash dividend of $0.33 per share § Payable November 30, 2012 § 53 rd consecutive year of annual dividends
Slide 6: 2012 Financial Highlights
Net Income ($ millions) Net Income from Continuing Operations ($ millions) 2012 Financial Highlights q Depreciation Up $3.0 million from 3Q 2011 q PCS Equipment Trade-in 3Q 2011 gain of $1.4 million q Unamortized Loan Costs 3Q 2012 write-off $0.8 million of costs remaining from 2010 loan q Income Ta
Slide 7: Wireless Highlights
PCS Customers (000s) Wireless Highlights q Steady Postpaid growth Postpaid customers up 6.3% in the last year q Rapid Prepaid Growth Q3’12 net additions of 5,384; 122k prepaid subs at 9/30 q Prepaid Churn improves Q3’12 churn of 3.73% compared to 4.43% for Q3’11
Slide 8: Cable Highlights
Cable Highlights n RGU Growth n Year-over-year RGU growth of 2.7% at 9/30/2012 n 139,399 RGUs at 9/30/2012 n Cable Upgrades n Started the final planned upgrade to markets acquired in mid-2010. n End of 2012 completion target now delayed due to weather
Slide 9: VP of Finance and CFO
VP of Finance and CFO
Slide 10: Restructured Credit Facility
Restructured Credit Facility § Term loan of $232 million fully drawn § Incremental proceeds of $60 million used primarily to fund 4G § $120.75 million unamortized due at maturity on 9/30/2019 § The $230 million variable portion bears LIBOR + 2.75% interest § 75% of the variable portion hedged at 3.8
Slide 11: Adjusted OIBDA ($ thousands)
Adjusted OIBDA ($ thousands) Profitability
Slide 12: Adjusted OIBDA by Segment ($millions)
Adjusted OIBDA by Segment ($millions)
Slide 13: Wireless Segment - Change in Adjusted OIBDA
Wireless Segment - Change in Adjusted OIBDA Q3’12 vs. Q3’11 ($ millions)
Slide 14: Cable Segment - Change in Adjusted OIBDA
Cable Segment - Change in Adjusted OIBDA Q3’12 vs. Q3’11 ($ millions)
Slide 15: Earle MacKenzie
_— Earle MacKenzie AXSHENTEL
Slide 16: PCS Postpaid Customers (000s)
PCS Postpaid Customers (000s) Key Operational Results - Wireless
Slide 17: Key Operational Results - Wireless
Gross Additions - Postpaid Net Additions - Postpaid Key Operational Results - Wireless n Net adds of 3,842 in Q3 2012 versus 2,686 in Q3 2011 n Q3 2012 churn of 1.89% up from 1.85% in Q3 2011 n Shentel-controlled channels produced 47% of gross adds in Q3 2012 and 50% in Q3 2011
Slide 18: Gross Billed Revenue per Postpaid User - Data & Voice
Gross Billed Revenue per Postpaid User - Data & Voice 1 Key Operational Results - PCS
Slide 19: Gross Billed Revenues - Postpaid ($ millions)
Gross Billed Revenues - Postpaid ($ millions) PCS Revenues
Slide 20: Postpaid PCS Customers Top Picks Q3 2012
Postpaid PCS Customers Top Picks Q3 2012 @ Top Service Plans — 67% of Gross Adds » Everything Data 1500 — 48% » Everything Data 450 - 15% » Business Essentials— 4% Top Devices — New Activations —All Channels > iPhone 21% >» Kyocera DuraXT 10% >» LG Optimus Elite 9% Smartphones made up 61% of the Pos
Slide 21: iPhone Statistics - Q3'12
iPhone Statistics - Q3’12 n 21% of Q3 Gross Adds n 41% of iPhones were sold or upgraded in Shentel- controlled channels n 13.2% of 9/30/2012 Postpaid customers had the iPhone, up from 9.8% at 6/30/12 n 58% iPhone 4S n 39% iPhone 4 n 3% iPhone 5
Slide 22: PCS Prepaid Statistics
Gross Additions (000s) Cumulative Customers (000s) PCS Prepaid Statistics
Slide 23: PCS Prepaid Statistics: Churn and Gross Billed Revenue
Churn % Average Gross Billed Revenue PCS Prepaid Statistics
Slide 24: Cable Customers and RGUs
150,000 131,010 120,000 90,000 60,000 30,000 33,680 2Q11 Customers 73,921 RGU's/Customer 1.77 mVideo = Voice High Speed Internet AXSHENTEL
Slide 25: Cable Statistics: Average Monthly Revenue per RGU
Average Monthly Revenue per RGU Average Monthly Revenue per Customer* Cable Statistics *Average monthly revenue per video subscriber was $78.71 and $94.92 for Q3 2011 and Q3 2012, respectively.
Slide 26: Key Operational Results - Cable
Key Operational Results - Cable Note : Video homes passed includes 16K homes located in Shenandoah County, VA, where internet and voice services are provided by the Wireline segment.
Slide 27: Key Operational Results - Wireline
Access lines (000s) DSL Customers (000s) Key Operational Results - Wireline n Access line loss of 3.4% in past 12 months n Broadband penetration in LEC area at 56% n 2.5% growth in DSL customers since 09/30/2011. Total connections at 9/30/12 of 35.1 thousand
Slide 28: Investing in the Future: Capex Spending
Capex Spending ($ millions) Investing in the Future n Last Cable upgrade of 10,000 homes passed is underway and expected to be complete in 2013. n Network Vision now expected at $55M in 2012 and $60M in 2013.
Slide 29: AXSHENTEL
AXSHENTEL
Slide 30: AXSHENTEL
AXSHENTEL
Slide 31: Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber
Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber