31 slides from Shenandoah Telecommunications's earnings presentation, Mar 2, 2012
Slide 1: 4Q 2011 Earnings Conference Call
4Q 2011 Earnings Conference Call March 2, 2012 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: 4Q'11 Highlights
4Q’11 Highlights q Customer Growth q Revenue Growth Revenues reach one-quarter billion Revenue grew 15% over 4Q’10 to $66.5 million. q Cash Dividend 52 nd consecutive year of annual dividends
Slide 6: PCS Customers (000s) - Wireless Highlights
PCS Customers (000s) Wireless Highlights q Rapid Prepaid Growth Q4’11 net additions of 8,828; 107,100 prepaid subs at q Steady Postpaid growth Postpaid customers up 6% in the last year q Postpaid Churn improves Annual churn of 1.8% compared to 1.9% for 2010 q Earnings Improve Annual operating income
Slide 7: Cable Highlights
Cable Highlights q Cable Upgrades u Former JetBroadband markets acquired in mid-2010 are approximately 51% complete u Remainder scheduled for 2012 q RGU Growth u Total RGU growth of 7% during 2011 u 137,238 RGUs at 12/31/2011
Slide 8: 2011 Financial Highlights
Net Income (in millions) Net Income from Continuing Operations (in millions) 2011 Financial Highlights
Slide 9: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance
Slide 10: Profitability: Adjusted OIBDA
Adjusted OIBDA ($ thousands) Profitability
Slide 11: Shentel Adjusted OIBDA reconciliation by segment
0 SHENTEL (in thousands) Operating Income Depreciation and Amortization OIBDA Less: (gain) loss on asset sales Share based compensation Pension settlement/curtailment Acquisition costs Adjusted OIBDA Wireless Cable Wireline Q4'10 Q4'11 Q410 = Q4'11 Q4'10 = Q4'11 $ 82 $ 100 $ (3.3) $ (43) $ 34 $ 34 6
Slide 12: Wireless Segment - Change in Adjusted OIBDA Q4'11 vs. Q4'10
Wireless Segment - Change in Adjusted OIBDA Q4’11 vs. Q4’10
Slide 13: Cable Segment - Change in Adjusted OIBDA Q4'11 vs. Q4'10
Cable Segment - Change in Adjusted OIBDA Q4’11 vs. Q4’10
Slide 14: Wireline Segment - Change in Adjusted OIBDA Q4'11 vs. Q4'10
Wireline Segment - Change in Adjusted OIBDA Q4’11 vs. Q4’10
Slide 15: Earle MacKenzie, EVP and COO
Earle MacKenzie EVP and COO
Slide 16: PCS Postpaid Customers (000s)
PCS Postpaid Customers (000s) Key Operational Results - Wireless
Slide 17: Key Operational Results - Wireless
Annual Gross Additions - Postpaid Annual Net Additions - Postpaid Key Operational Results - Wireless n 6% YOY postpaid net growth n Q4 2011 net adds of 5,072, a 21% increase over Q4 2010. n Q4 2011 churn of 1.89% up from 1.85% in Q4 2010 n 2011 annual churn of 1.78% improved from 1.89% in 2010
Slide 18: Gross Billed Revenue per Postpaid User - Data & Voice
Gross Billed Revenue per Postpaid User - Data & Voice 1 Key Operational Results - PCS 1 - Before Service credits, bad debt, Sprint Nextel fees.
Slide 19: Annual Gross Billed Revenues - Postpaid
Annual Gross Billed Revenues - Postpaid ($ millions) PCS Revenues $151.2 $166.2 * The Net Service Fee percentage increased from 8.8% to 12% effective 6/1/2010
Slide 20: Postpaid PCS Customers Top Picks Q4 2011
Postpaid PCS Customers Top Picks Q4 2011 n Smartphones made up 53% of the Postpaid base in Q4 2011, up from 48% in Q3 2011 and 34% in Q4 2010 n Top Service Plans - Gross Adds u Everything Data Family 1500 - 56% u Everything 450 - 18% u Everything Messaging Family 1500 - 2% n Top Devices - New Activa
Slide 21: iPhone Statistics - Q4'11
iPhone Statistics - Q4’11 n 16% of Q4 Gross Adds n 36% of iPhones were sold or upgraded in Shentel- controlled channels n 3.6% of 12/31/11 Postpaid customers had the iPhone u 58% iPhone 4S u 42% iPhone 4
Slide 22: PCS Prepaid Statistics: Gross Additions and Cumulative Customers
Gross Additions (000s) Cumulative Customers PCS Prepaid Statistics
Slide 23: PCS Prepaid Statistics: Churn and Gross Billed Revenue
Churn % Average Gross Billed Revenue PCS Prepaid Statistics
Slide 24: Cable - RGU Growth by Quarter
Cable - RGU Growth by Quarter Customers 74,178 74,657 73,930 75,131 75,348 RGU's/Customer 1.73 1.75 1.77 1.81 1.82
Slide 25: 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 26: Key Operational Results - Wireline
Access lines (000s) Internet Customers (000s) Key Operational Results - Wireline n Modest access line loss of 3% in past 12 months n Continued broadband penetration in LEC area to 53% n 3% growth in DSL customers since 12/31/10, partially offsetting access line losses, resulting in total connections
Slide 27: Capex Spending
Capex Spending Investing in the Future n Upgrade of Jet Network is approximately 51% complete n All remaining systems in Virginia, West Virginia and Maryland to have upgrades completed in 2012 n Network Vision expected to drive $60M of spend in 2012
Slide 28: Investing in the Future - Network Vision
Investing in the Future - Network Vision n Plan to upgrade 274 cell sites in 2012 and the remaining 236 in 2013 including: u Multi-modal base station at each site u Expanded backhaul capacity u LTE in the PCS G-block u Voice service in the 800Mhz block n Expect to accelerate depreciation by u $7.3M
Slide 29: Shentel
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Slide 30: Shentel
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Slide 31: Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber
Non-GAAP Financial Measure - Billed Revenue per Postpaid Subscriber