Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q2 2022 Earnings Presentation
25 slides from Shenandoah Telecommunications's earnings presentation, Aug 3, 2022
Slide 1: Q1 2022 Earnings Conference Call
Q1 2022 Earnings Conference Call August 3, 2022
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 our business strategy, our prospects and our financial position. These statements can be
Slide 3: Chris French, President and CEO
Chris French President and CEO 3
Slide 4: Accelerating Glo Fiber Net Additions
Accelerating Glo Fiber Net Additions Glo Fiber Data Net Additions 3,342 2,406 2,103 2,105 1,645 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Glo Fiber 4
Slide 5: Clear Visibility in Fiber Network Expansion
Clear Visibility in Fiber Network Expansion Fiber Network Home and Business Passings 482,000 430,000 112,505 93,611 75,189 60,836 46,368 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Franchise/Grant 2026 Target Glo Fiber Franchise/Grant(1) 2026 Target Fiber *Franchise/Grant Passings and 2026 Target figures are not
Slide 6: Jim Volk, SVP of Finance and CFO
Jim Volk SVP of Finance and CFO 6
Slide 7: Broadband Highlights - Second Quarter Results
Broadband Highlights - Second Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) Residential & SMB 10.2% Commercial Fiber $22.0 RLEC & Other $61.4 9.2% $20.0 $56.2 $4.2 $3.7 $9.3 $8.5 35.5% 35.8% margin margin $47.9 $44.0 Q2'21 Q2'22 Q2'21 Q2'22 7
Slide 8: Tower Highlights - Second Quarter Results
Tower Highlights - Second Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) 1.9% $4.7 $4.6 (1.4)% $3.0 $2.9 64.1% 62.1% margin margin Q2'21 Q2'22 Q2'21 Q2'22 8
Slide 9: Consolidated Highlights - Second Quarter Results
Consolidated Highlights - Second Quarter Results Revenue (in millions) Adjusted EBITDA (in millions) $66.0 8.8% $60.7 $4.7 $4.6 16.3% $18.6 $16.0 $2.9 $3.0 $22.0 $61.4 $20.0 $56.2 $(7.0) $(6.4) Q2'21 Q2'22 Q2'21 Q2'22 Broadband Tower Broadband Tower Corporate Consolidated revenue includes eliminatio
Slide 10: Liquidity & Free Cash Flow
Liquidity & Free Cash Flow Liquidity (in millions) Free Cash Flow (in millions) $484.3 $38.7 $433.3 $28.2 $400.0 $400.0 $(79.6) $(88.7) $(51.4) $84.3 $33.3 $(50.0) December 31, 2021 June 30, 2022 Q1'21 Q1'22 Cash & Cash Equivalents Net Cash Provided by Continuing Operations Available Credit Facility
Slide 11: Ed McKay, EVP and COO
~~. EVP and COO AXSHENTEL
Slide 12: Integrated Fiber and Cable Broadband Network
Integrated Fiber and Cable Broadband Network 12
Slide 13: Broadband - Fiber Construction Metrics
Broadband - Fiber Construction Metrics Glo Fiber Franchise Approved Passings Glo Fiber Passings Released to Sales 112,505 411,000 93,611 339,000 Q1'22 Q2'22 Q1'22 Q2'22 Government Grant Approved Fiber Passings Total Fiber Construction Backlog Passings 19,000 16,000 317,000 261,000 Q1'22 Q2'22 Q1'22
Slide 14: Broadband - Glo Fiber Operating Metrics
Broadband - Glo Fiber Operating Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) 22,644 $73.92 $74.42 3,065 Voice Data 9,876 17,125 Video 7,169 Q2'21 Q2'22 Q2'21 Q2'22 Broadband Data Penetration Broadband Data Churn 15.5% 15.2% 1.22% 1.15% Q2'21 Q2'22 Q2'21 Q2'22
Slide 15: Vintage Glo Fiber Penetration
Vintage Glo Fiber Penetration Vintage Glo Fiber Penetration1 34.1% 25.1% 23.9% 16.6% 10.3% 7.8% Passings released 17,970 15,740 11,385 5,911 8,453 1,782 to sales Quarter launched Q2'22 Q4'21 Q2'21 Q4'20 Q2'20 Q4'19 # of months after 0 months 6 months 12 months 18 months 24 months 30 months quarter l
Slide 16: Broadband - Incumbent Cable Metrics
Broadband - Incumbent Cable Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) 186,777 190,921 $78.30 $80.85 49,708 45,962 Voice Data 103,465 107,878 Video 33,604 37,081 Q2'21 Q2'22 Q2'21 Q2'22 Broadband Data Penetration Broadband Data Churn 1.59% 1.67% 49.1% 51.0%
Slide 17: Broadband - Beam Broadband Data Metrics
Broadband - Beam Broadband Data Metrics Revenue Generating Units (RGU) Average Revenue per User (ARPU) 1,753 $72.38 $73.68 841 Q2'21 Q2'22 Q2'21 Q2'22 Penetration Churn 1.32% 9.7% 1.02% 3.9% Q2'21 Q2'22 Q2'21 Q2'22 17
Slide 18: Broadband - Commercial Fiber Metrics
Broadband - Commercial Fiber Metrics MRR & MAR Sales Bookings Installed MRR & MAR1 $134,038 $90,919 $97,317 $65,268 Q2'21 Q2'22 Q2'21 Q2'22 Backhaul Connections Monthly Compression and Disconnect Churn 1.8% 707 702 159 162 1.7% 548 540 0.3% 0.3% Q2'21 Q2'22 Q2'21 Q2'22 T-Mobile Other Carriers Monthl
Slide 19: Tower - Metrics
Tower - Metrics Towers Tenants 465 448 223 223 172 161 263 262 24 31 Q2'21 Q2'22 Intercompany T-Mobile Q2'21 Q2'22 Other Carriers Intercompany leases assumed by T-Mobile 7/1/2021 19
Slide 20: Capital Expenditures
Capital Expenditures Capex Spending ($ in millions) $190 - $210 $88.2 $145 - $155 $79.6 $6.9 $60.1 $44.6 $10 - $15 $8.4 $8.2 $35 - $40 $18.6 $18.1 Q2'21 Q2'21YTD Q2'22 YTD Q2'22 2022 Target* Cable Commercial Fiber Glo/FTTH Beam Tower Corporate *2022 Target figures are not presented in-scale with Q12
Slide 21: Q&A
AXSHENTEL Q&A 21
Slide 22: Appendix
Appendix AXSHENTEL
Slide 23: 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 U.S. generally accepted accounting principles. These financial performance measures are not indicative of cash provided or used by operating activities
Slide 24: Adjusted EBITDA by Segment - Quarterly Results
Adjusted EBITDA by Segment - Quarterly Results Three Months Ended June 30, 2022 Corporate & (in thousands) Broadband Tower Eliminations Consolidated Net income (loss) from continuing operations $ 4,042 $ 2,285 $ (9,552) $ (3,225) Depreciation and amortization 13,396 633 761 14,790 Impairment expense
Slide 25: Broadband - Average Revenue per User (ARPU)
Broadband - Average Revenue per User (ARPU) For the second quarter ended, 2021 2022 Residential & SMB Revenue (000's) Broadband $ 25,571 $ 29,568 Incumbent Cable $ 24,177 $ 26,123 Glo Fiber $ 1,394 $ 3,445 Video $ 15,611 $ 15,210 Voice $ 2,893 $ 2,994 Average Revenue Generating Units Broadband 108,9
Shenandoah Telecommunications Company — Q2 2022 Earnings Presentation on 6ix