Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q2 2012 Earnings Presentation
30 slides from Shenandoah Telecommunications's earnings presentation, Aug 3, 2012
Slide 1: 2Q 2012 Earnings Conference Call
2Q 2012 Earnings Conference Call August 3, 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.
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
Slide 4: Chris French, CEO and President
* Chris French CEO and President
Slide 5: 2012 Financial Highlights
* 2012 Financial Highlights Net Income ($ millions) Net Income from Continuing Operations ($ millions) Net Income – Grew $2.6 million, 86%, over 2Q 2011 Revenue – Up 16% from 2Q 2011 to $71.4 million Adjusted OBIDA Growth- Increase of $3.9 million, 17%, over 2Q 2011
Slide 6: 2Q'12 Highlights
* 2Q’12 Highlights Revenue Growth Revenue grew 16% over 2Q’11 to $71.4 million. Customer Growth ARPU Growth Increases in both Wireless & Cable Segments
Slide 7: Wireless Highlights
* Wireless Highlights PCS Customers (000s) Steady Postpaid growth Postpaid customers up 5.9% in the last year Rapid Prepaid Growth Q2’12 net additions of 2,686; 117k prepaid subs at 6/30 Prepaid Churn improves Q2’12 churn of 3.56% compared to 4.58% for Q2’11 Earnings Improve Q2’12 operating income u
Slide 8: Cable Highlights
* Cable Highlights RGU Growth Year-over-year RGU growth of 4.6% at 6/30/2012 137,025 RGUs at 6/30/2012 Cable Upgrades Started the final planned upgrade to markets acquired in mid-2010. Expect to complete by the end of 2012
Slide 9: Adele Skolits, CFO and VP of Finance
* Adele Skolits CFO and VP of Finance
Slide 10: Profitability: Adjusted OIBDA
* Profitability Adjusted OIBDA ($ thousands)
Slide 11: Adjusted OIBDA by Segment
* Adjusted OIBDA by Segment ($ millions)
Slide 12: Wireless Segment – Change in Adjusted OIBDA Q2'12 vs. Q2'11
* Wireless Segment – Change in Adjusted OIBDA Q2’12 vs. Q2’11 ($ millions)
Slide 13: Cable Segment – Change in Adjusted OIBDA Q2'12 vs. Q2'11
* Cable Segment – Change in Adjusted OIBDA Q2’12 vs. Q2’11 ($ millions)
Slide 14: Earle MacKenzie, EVP and COO
<< SHENTEL Earle MacKenzie EVP and COO 14
Slide 15: Key Operational Results – Wireless PCS Postpaid Customers
* Key Operational Results – Wireless PCS Postpaid Customers (000s)
Slide 16: Key Operational Results – Wireless Gross and Net Additions
* Key Operational Results – Wireless Gross Additions - Postpaid Net Additions - Postpaid Q2 2012 net adds of 4,341 versus 3,037 Q2 2011 net adds Q2 2012 churn of 1.55% improved from 1.62% in Q2 2011 Shentel-controlled channels produced 48% of gross adds in Q2 2012 and 54% of gross adds in Q2 2011
Slide 17: Key Operational Results – PCS Gross Billed Revenue per Postpaid User
* Key Operational Results – PCS Gross Billed Revenue per Postpaid User – Data & Voice 1 1 – Before Service credits, bad debt, Sprint Nextel fees.
Slide 18: PCS Revenues
* PCS Revenues Gross Billed Revenues - Postpaid ($ millions) 41.0 46.1 Total Up 12%
Slide 19: Postpaid PCS Customers Top Picks Q2 2012
* Postpaid PCS Customers Top Picks Q2 2012 Smartphones made up 59% of the Postpaid base in Q2 2012, up from 53% in Q4 2011 and 44% in Q2 2011 Top Service Plans – 66% of Gross Adds Everything Data Family 1500 – 44% Everything 450 – 15% Business Advantage Talk 200 – 7% Top Devices – New Activations -
Slide 20: iPhone Statistics – Q2'12
* iPhone Statistics – Q2’12 17% of Q2 Gross Adds 41% of iPhones were sold or upgraded in Shentel-controlled channels 9.8% of 6/30/2012 Postpaid customers had the iPhone, up from 6.8% at 3/31/12 59% iPhone 4S 41% iPhone 4
Slide 21: PCS Prepaid Statistics
* PCS Prepaid Statistics Gross Additions (000s) Cumulative Customers (000s)
Slide 22: PCS Prepaid Statistics: Churn and Revenue
* PCS Prepaid Statistics Churn % Average Gross Billed Revenue
Slide 23: Cable – RGU Growth by Quarter
* Cable - RGU Growth by Quarter Customers 73,921 75,131 75,348 76,130 74,726 RGU's/Customer 1.77 1.81 1.82 1.83 1.83
Slide 24: Cable Statistics
* Cable Statistics Average Monthly Revenue per RGU Average Monthly Revenue per Customer* *Average monthly revenue per video subscriber was $78.08 and $92.35 for Q2 2011 and Q2 2012, respectively.
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
* Key Operational Results - Wireline Modest access line loss of 3.4% in past 12 months Broadband penetration in LEC area at 55% 2.5% growth in DSL customers since 06/30/2011, partially offsetting access line losses, resulting in total connections of 35.2 thousand Access lines (000s) DSL Customers (0
Slide 27: Investing in the Future
* Investing in the Future Last Cable upgrade of 10,000 homes passed is underway and expected to be complete by YE 2012. Network Vision expected to drive $60M of spend in 2012 and $55M in 2013. Capex Spending ($ millions)
Slide 28: Q&A
oo SHENTEL &A 28
Slide 29: Appendix
oo SHENTEL Appendix a3
Slide 30: Non-GAAP Financial Measure – Billed Revenue per Postpaid Subscriber
* Non-GAAP Financial Measure – Billed Revenue per Postpaid Subscriber
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