Shenandoah Telecommunications Company Reports Second Quarter 2019 Results

Date : 08/06/2019 @ 11:00AM
Source : GlobeNewswire Inc.
Stock : Shenandoah Telecommunications Company (SHEN)
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Shenandoah Telecommunications Company Reports Second Quarter 2019 Results

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Shenandoah Telecommunications Company (“Shentel”) (NASDAQ: SHEN) announced solid second quarter results.

Second Quarter 2019 Highlights•         Consolidated operating revenue grew 1.5% to $158.9 million.•         Consolidated Adjusted OIBDA(1) grew 5.2% to $67.0 million with growth in all segments.•         Consolidated operating income grew 13.5% to $24.0 million.•         Diluted earnings per share grew 36.4% to $0.26 per share compared with $0.19 per share in second quarter 2018.•         Wireless postpaid net additions of 10,767.

"Our second quarter results demonstrate continued strength of our high quality networks and operations highlighted by growth in Adjusted OIBDA across all of our business segments," said President and CEO Christopher E. French. "Shentel continued to achieve growth in both our postpaid and prepaid wireless customer base, as we capitalized on the investments we've made in our network to solidify our leadership role providing the highest reliability and broadest coverage in the markets we serve. Our Cable segment benefited from the successful integration of Big Sandy Broadband ("Big Sandy"), the DOCSIS 3.1 upgrade and new pricing introduced earlier in the year that led to bandwidth speed upgrades and growing customer ARPU. We continue to leverage our strong balance sheet and cash flow generation to make targeted investments to position the Company for strong growth for the next several years."

Please refer to our Second Quarter 2019 Earnings Presentation Supplement available at https://investor.shentel.com/ for additional information, including matters that will be referenced during the Company’s conference call. Included in this release are certain non-GAAP financial measures that are not determined in accordance with U.S. generally accepted accounting principles. Please refer to additional information for non-GAAP measures provided herein.

Consolidated Second Quarter 2019 Results

  • Operating revenue in the second quarter of 2019 was $158.9 million, representing an increase of 1.5% from $156.5 million in the second quarter of 2018 driven by growth in the Cable and Wireline segments.
  • Operating expenses for the second quarter of 2019 were $134.9 million, representing a decrease of 0.3% from $135.3 million in the second quarter of 2018. The decrease was primarily due to a decline in selling, general and administrative expenses in our Wireless and Other segments.
  • Operating income for the second quarter 2019 was $24.0 million, representing an increase of 13.5% from $21.2 million in the second quarter of 2018.
  • Adjusted OIBDA(1) in the second quarter of 2019 was $67.0 million, representing an increase of 5.2% from $63.7 million in the second quarter of 2018. The increase was driven by revenue growth in Cable and Wireline and lower transactional tax and professional fee expenses in the Wireless and Other segments.
  • Net income in the second quarter of 2019 was $13.2 million, representing an increase of 36.6% from $9.6 million in the second quarter of 2018.

Wireless

  • Shentel's network served 811,719 wireless postpaid subscribers at June 30, 2019, an increase of 4.0% compared with 780,658 subscribers as of June 30, 2018. Second quarter 2019 postpaid churn was 1.74%.  At June 30, 2019, tablets and data devices represented 10.4% of the postpaid base.
  • Shentel's network served 269,039 wireless prepaid subscribers at June 30, 2019, an increase of 6.7% compared with 252,054 subscribers as of June 30, 2018. Second quarter 2019 prepaid churn was 3.97%, representing an improvement of 28 basis points compared with the prior year.
  • Wireless operating revenue decreased 0.5% to $114.1 million for the second quarter of 2019 from $114.8 million in the second quarter of 2018. Travel revenue declined $3.0 million during the second quarter of 2019 due to the suspension by Sprint of travel revenue payments. The travel revenue decline was substantially offset by increases in subscriber service revenue of $0.9 million, in equipment revenue of $0.7 million, and in roaming revenue of $0.5 million.
  • Under our Sprint affiliate agreement, Shentel and Sprint compensate one another when subscribers use the other company's network. This has been reflected in a net monthly payment of $1.5 million from Sprint to Shentel for the period beginning at the closing of the Ntelos transaction in 2016 through April of 2019. Sprint  suspended the monthly payments beginning in May 2019 pending agreement on new travel fees. Under our  affiliate agreement with Sprint, the travel fees are to be reset for a three year period. Although we have been working with Sprint to establish the new fees, we have not reached an agreement and have begun the escalation process as outlined in our affiliate agreement. We expect to resolve the new travel fees in the third quarter 2019.
  • Wireless operating expenses in the second quarter of 2019 were $92.1 million, representing a decrease of 0.4% from $92.5 million in the second quarter of 2018.  This decrease was primarily due to a $1.8 million decline in selling, general and administrative expenses due to reductions in transactional tax expenses, partially offset by increases of $0.7 million in cost of goods sold and $0.7 million in depreciation expense.
  • Wireless operating income in the second quarter of 2019 was $22.0 million, compared to $22.3 million for the second quarter of 2018.
  • Wireless Adjusted OIBDA(1) in the second quarter of 2019 was $54.2 million, compared to $53.8 million for the second quarter of 2018.

Cable

  • Total Revenue Generating Units ("RGUs") as of June 30, 2019 were 138,572, representing an increase of 4.1% and includes the addition of approximately 4,800 RGUs obtained through the Big Sandy acquisition that occurred in the first quarter of 2019.
  • Cable operating revenue for the second quarter of 2019 was $34.7 million, representing an increase of 8.0% from $32.1 million in the second quarter of 2018. The increase was primarily attributable to a full quarter of Big Sandy results and growth in average revenue per customer ("ARPU") as broadband customers upgraded to higher-speed data access packages and an increase in video rates.
  • Cable operating expenses in the second quarter of 2019 were $27.9 million, representing an increase of 7.2% from $26.0 million for the second quarter of 2018. The increase was primarily due to higher repair and maintenance expense associated with maintaining our growing network and an increase in business development expenses aimed at expanding our product portfolio.
  • Cable operating income for the second quarter of 2019 was $6.8 million, representing an increase of 11.6% from $6.1 million for the second quarter of 2018.
  • Cable Adjusted OIBDA for the second quarter of 2019 was $13.3 million, representing an increase of 8.8% from $12.3 million for the second quarter of 2018.

Wireline

  • Wireline operating revenue for the second quarter of 2019 was $19.5 million, representing an increase of 2.2% from $19.1 million in the second quarter of 2018. The increase in operating revenue was primarily attributable to the timing of receiving regulatory support funds.
  • Wireline operating expenses in the second quarter of 2019 were $14.4 million, consistent with operating expenses in the second quarter of 2018.
  • Wireline operating income for the second quarter of 2019 was $5.1 million, representing an  increase  of 6.3%  from $4.8 million  in the second quarter of 2018.
  • Wireline Adjusted OIBDA for the second quarter of 2019 was $8.5 million, representing an increase of 6.3% from $8.0 million in the second quarter of 2018. 
(1)The calculation and presentation of Adjusted OIBDA was changed to conform to industry practices. Please refer to non-GAAP Financial Measures for the reconciliation from operating income and the current reported definition to the prior reported definition.

Other Information

  • Capital expenditures were $79.1 million for the six months ended June 30, 2019 compared with $62.3 million in the comparable 2018 period. We are increasing our capital expenditures guidance for 2019 from $150 million to $170 million to reflect the acquisition of 2.5 GHz spectrum that we plan to use to increase the reach of our residential broadband service via fixed wireless in the underserved areas of our markets.
  • Outstanding debt at June 30, 2019 totaled $760.5 million compared with $785.2 million as of December 31, 2018. As of June 30, 2019, the Company had liquidity of approximately $173.1 million, including $75.0 million of revolving line of credit availability.

Conference Call and Webcast

Teleconference Information:

Date: August 6, 2019    Time: 10:00 A.M. (ET)Dial in number: 1-888-695-7639

Password: 7559363  Audio webcast: http://investor.shentel.com/

An audio replay of the call will be available approximately two hours after the call is complete, through September 6, 2019 by calling (855) 859-2056.

About Shenandoah TelecommunicationsShenandoah Telecommunications Company (Shentel) provides a broad range of diversified communications services through its high speed, state-of-the-art network to customers in the Mid-Atlantic United States. The Company’s services include: wireless voice and data; cable video, internet and digital voice; fiber network and services; and regulated local and long distance telephone. Shentel is the exclusive personal communications service (“PCS”) Affiliate of Sprint in a multi-state area covering large portions of central and western Virginia, south-central Pennsylvania, West Virginia, and portions of Maryland, North Carolina, Kentucky, and Ohio. For more information, please visit www.shentel.com.

This release contains forward-looking statements that are subject to various risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of unforeseen factors. A discussion of factors that may cause actual results to differ from management's projections, forecasts, estimates and expectations is available in the Company’s filings with the SEC. Those factors may include changes in general economic conditions, increases in costs, changes in regulation and other competitive factors.

CONTACTS:Shenandoah Telecommunications CompanyJim VolkSenior Vice President - Chief Financial Officer540-984-5168Jim.Volk@emp.shentel.com

OrJohn Nesbett/Jennifer BelodeauIMS Investor Relations203-972-9200jnesbett@institutionalms.com

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
 Three Months Ended June 30, Six Months Ended June 30,
 2019 2018 2019 2018
Operating revenue:       
Service revenue and other$142,059  $140,492  $285,290  $277,051 
Equipment revenue16,855  16,009  32,467  33,588 
Total operating revenue158,914  156,501  317,757  310,639 
Operating expenses:       
Cost of services49,497  49,134  99,015  98,476 
Cost of goods sold15,874  15,166  30,511  30,971 
Selling, general and administrative27,170  29,915  55,892  58,665 
Depreciation and amortization42,353  41,117  83,532  84,604 
Total operating expenses134,894  135,332  268,950  272,716 
Operating income24,020  21,169  48,807  37,923 
Other income (expense):       
Interest expense(7,522) (8,851) (15,476) (18,183)
Other1,176  839  2,463  1,828 
Income before income taxes17,674  13,157  35,794  21,568 
Income tax expense4,524  3,531  8,734  5,359 
Net income$13,150  $9,626  $27,060  $16,209 
        
Net income per share, basic and diluted:       
Basic net income per share$0.26  $0.19  $0.54  $0.33 
Diluted net income per share$0.26  $0.19  $0.54  $0.32 
Weighted average shares outstanding, basic49,848  49,547  49,812  49,511 
Weighted average shares outstanding, diluted50,142  50,070  50,118  50,029 
        

 SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 June 30,  2019 December 31,  2018
    
Cash and cash equivalents$98,091  $85,086 
Other current assets124,057  125,116 
Total current assets222,148  210,202 
    
Investments11,563  10,788 
Property, plant and equipment, net695,725  701,359 
Intangible assets, net324,890  366,029 
Goodwill149,070  146,497 
Operating lease right-of-use assets369,715   
Deferred charges and other assets48,929  49,891 
Total assets$1,822,040  $1,484,766 
    
Total current liabilities$127,781  $88,539 
Long-term debt, less current maturities719,067  749,624 
Other liabilities513,143  204,356 
Total shareholders’ equity462,049  442,247 
Total liabilities and shareholders’ equity$1,822,040  $1,484,766 

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES 
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
(in thousands) 
 Six Months Ended June 30,
 2019 2018
Cash flows from operating activities:   
Net income$27,060  $16,209 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation72,737  71,637 
Amortization10,795  12,967 
Accretion of asset retirement obligations708  471 
Bad debt expense764  758 
Stock based compensation expense, net of amount capitalized2,307  3,407 
Deferred income taxes3,434  (8,004)
Other adjustments(433) 789 
Changes in assets and liabilities12,260  28,910 
Net cash provided by operating activities129,632  127,144 
    
Cash flows from investing activities:   
Acquisition of property, plant and equipment(79,124) (62,322)
Cash disbursed for acquisition, net of cash acquired(10,000) (52,000)
Proceeds from sale of assets108  447 
Other(3) (3)
Net cash used in investing activities(89,019) (113,878)
    
Cash flows from financing activities:   
Principal payments on long-term debt(24,777) (24,250)
Proceeds from revolving credit facility borrowings  15,000 
Principal payments on revolving credit facility  (15,000)
Proceeds from exercises of stock option81   
Taxes paid for equity award issuances(2,912) (2,032)
Net cash used in financing activities(27,608) (26,282)
Net increase (decrease) in cash and cash equivalents13,005  (13,016)
Cash and cash equivalents, beginning of period85,086  78,585 
Cash and cash equivalents, end of period$98,091  $65,569 

Non-GAAP Financial Measures

Adjusted OIBDA

Adjusted OIBDA represents Operating income before depreciation, amortization, stock-based compensation and certain other items of revenue, expense, gain or loss not reflective of our operating performance, which may or may not be recurring in nature.  

Adjusted OIBDA is a non-GAAP financial measure that we use to evaluate our operating performance in comparison to our competitors. Management believes that analysts and investors use Adjusted OIBDA as a supplemental measure of operating performance to facilitate comparisons with other telecommunications companies. This measure isolates and evaluates operating performance by excluding the cost of financing (e.g., interest expense), as well as the non-cash depreciation and amortization of past capital investments, non-cash share-based compensation expense, and certain other items of revenue, expense, gain or loss not reflective of our operating performance, which may or may not be recurring in nature.

During Q2 2019, we modified our definition of Adjusted OIBDA to exclude the benefit received from the waived management fee and non-cash amortization of deferred contract costs, as well as certain other immaterial items. This change enhances the comparability of our non-GAAP performance measure with similar performance measures reported by comparable companies in our industry. We have applied this change consistently to all comparable periods presented below.

Adjusted OIBDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for income from operations, net income or any other measure of financial performance reported in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).

The following tables reconcile Adjusted OIBDA to operating income, which we consider to be the most directly comparable GAAP financial measure:

Adjusted OIBDA

Three Months Ended June 30, 2019          
(in thousands) Wireless  Cable Wireline Other Consolidated
Operating income $22,024  $6,786  $5,094  $(9,884) $24,020 
Depreciation and amortization 32,219  6,555  3,447  132  42,353 
OIBDA 54,243  13,341  8,541  (9,752) 66,373 
Share-based compensation expense       593  593 
Adjusted OIBDA $54,243  $13,341  $8,541  $(9,159) $66,966 
           
Total operating revenue $114,140  $34,690  $19,527  (9,443) $158,914 
Adjusted OIBDA margin 47.5% 38.5% 43.7% N/A  42.1%

During Q2 2019, we modified our definition of Adjusted OIBDA to exclude the benefit received from the waived management fee and non-cash amortization of deferred contract costs, as well as certain other immaterial items. This change enhances the comparability of our non-GAAP performance measure with similar performance measures reported by comparable companies in our industry. In the table below, we demonstrate how our new definition of Adjusted OIBDA reconciles to how we previously reported Adjusted OIBDA.

(in thousands) Wireless   Cable   Wireline   Other   Consolidated
Adjusted OIBDA from above $54,243  $13,341  $8,541  $(9,159) $66,966
Non-cash amortization of deferred contract costs (3,903) (32) (51) 2  (3,984)
Benefit received from the waived management fee 9,692        9,692 
Other (19) 3    326  310 
Adjusted OIBDA as previously reported $60,013  $13,312  $8,490  $(8,831) $72,984 

Three Months Ended June 30, 2018          
(in thousands)  Wireless   Cable   Wireline   Other   Consolidated 
Operating income $22,251  $6,083  $4,793  $(11,958) $21,169 
Depreciation and amortization 31,565  6,179  3,240  133  41,117 
OIBDA 53,816  12,262  8,033  (11,825) 62,286 
Share-based compensation expense       1,370  1,370 
Adjusted OIBDA $53,816  $12,262  $8,033  $(10,455) $63,656 
           
Total operating revenue $114,753  $32,111  $19,112  (9,475) $156,501 
Adjusted OIBDA margin 46.9% 38.2% 42.0% N/A 40.7%

In the table below, we demonstrate how our new definition of Adjusted OIBDA reconciles to how we previously reported Adjusted OIBDA.

(in thousands) Wireless Cable Wireline Other Consolidated
Adjusted OIBDA from above $53,816  $12,262  $8,033  $(10,455) $63,656 
Non-cash amortization of deferred contract costs (3,394) (26) (27)   (3,447)
Benefit received from the waived management fee 9,558        9,558 
Other 94      (83) 11 
Adjusted OIBDA as previously reported $60,074  $12,236  $8,006  $(10,538) $69,778 

Six Months Ended June 30, 2019          
(in thousands) Wireless Cable Wireline Other Consolidated
Operating Income $47,361  $12,489  $9,440  $(20,483) $48,807 
Depreciation and amortization 63,269  13,013  6,980  270  83,532 
OIBDA 110,630  25,502  16,420  (20,213) 132,339 
Share-based compensation expense       2,307  2,307 
Adjusted OIBDA $110,630  $25,502  $16,420  $(17,906) $134,646 
           
Total operating revenue $229,794  $68,399  $38,436  (18,872) $317,757 
Adjusted OIBDA margin 48.1% 37.3% 42.7% N/A 42.4%

In the table below, we demonstrate how our new definition of Adjusted OIBDA reconciles to how we previously reported Adjusted OIBDA.

(in thousands) Wireless Cable Wireline Other Consolidated
Adjusted OIBDA from above $110,630  $25,502  $16,420  $(17,906) $134,646 
Non-cash amortization of deferred contract costs (8,114) (269) (115)   (8,498)
Benefit received from the waived management fee 19,320        19,320 
Other   139    353  492 
Adjusted OIBDA as previously reported $121,836  $25,372  $16,305  $(17,553) $145,960 

Six Months Ended June 30, 2018          
(in thousands) Wireless Cable Wireline Other Consolidated
Operating income  $39,518  $11,610  $9,565  $(22,770) $37,923 
Depreciation and amortization 65,490  12,203  6,634  277  84,604 
OIBDA 105,008  23,813  16,199  (22,493) 122,527 
Share-based compensation expense       3,407  3,407 
Adjusted OIBDA $105,008  $23,813  $16,199  $(19,086) $125,934 
           
Total operating revenue $227,557  $63,822  $38,819  (19,559) $310,639 
Adjusted OIBDA margin 46.1% 37.3% 41.7% N/A 40.5%

In the table below, we demonstrate how our new definition of Adjusted OIBDA reconciles to how we previously reported Adjusted OIBDA.

(in thousands) Wireless Cable Wireline Other Consolidated
Adjusted OIBDA from above  $105,008  $23,813  $16,199  $(19,086) $125,934 
Non-cash amortization of deferred contract costs (6,154) 115  (62)   (6,101)
Benefit received from the waived management fee 18,606        18,606 
Other 175      (165) 10 
Adjusted OIBDA as previously reported $117,635  $23,928  $16,137  $(19,251) $138,449 

Segment Results

Three Months Ended June 30, 2019          
(in thousands) Wireless Cable Wireline Other Eliminations Consolidated
External revenue                         
Service revenue $94,350  $30,716  $5,558  $  $  $130,624 
Equipment revenue 16,548  255  52      16,855 
Tower revenue 1,654          1,654 
Other revenue 318  2,238  7,225      9,781 
Total external revenue 112,870  33,209  12,835      158,914 
Internal revenue 1,270  1,481  6,692    (9,443)  
Total operating revenue 114,140  34,690  19,527    (9,443) 158,914 
Operating expenses            
Cost of services 33,563  15,701  8,979    (8,746) 49,497 
Cost of goods sold 15,742  112  19    1  15,874 
Selling, general and administrative 10,592  5,536  1,988  9,752  (698) 27,170 
Depreciation and amortization 32,219  6,555  3,447  132    42,353 
Total operating expenses 92,116  27,904  14,433  9,884  (9,443) 134,894 
Operating income (loss) $22,024  $6,786  $5,094  $(9,884) $  $24,020 

Three Months Ended June 30, 2018          
(in thousands) Wireless Cable Wireline Other Eliminations Consolidated
External revenue                         
Service revenue $95,690  $28,748  $5,301  $  $  $129,739 
Equipment revenue 15,819  144  46      16,009 
Tower revenue 1,636          1,636 
Other revenue 364  2,122  6,631      9,117 
Total external revenue 113,509  31,014  11,978      156,501 
Internal revenue 1,244  1,097  7,134    (9,475)  
Total operating revenue 114,753  32,111  19,112    (9,475) 156,501 
Operating expenses            
Cost of services 33,488  15,125  9,373  12  (8,864) 49,134 
Cost of goods sold 15,082  63  20  1    15,166 
Selling, general and administrative 12,367  4,661  1,686  11,812  (611) 29,915 
Depreciation and amortization 31,565  6,179  3,240  133    41,117 
Total operating expenses 92,502  26,028  14,319  11,958  (9,475) 135,332 
Operating income (loss) $22,251  $6,083  $4,793  $(11,958) $  $21,169 

Supplemental Information

Subscriber Statistics

The following tables indicate selected operating statistics of Wireless, including Sprint subscribers:

  June 30,  2019 (4) June 30,  2018 (4)
Retail PCS subscribers - postpaid 811,719  780,658 
Retail PCS subscribers - prepaid 269,039  252,054 
PCS market POPS (000) (1) 7,227  7,023 
PCS covered POPS (000) (1) 6,285  5,908 
CDMA base stations (sites) 1,910  1,770 
Towers owned 217  193 
Cell site leases 200  192 

  Three Months Ended June 30,
  2019 2018
Gross PCS subscriber additions - postpaid 52,799  44,629 
Net PCS subscriber additions - postpaid (2) 10,767  5,797 
Gross PCS subscriber additions - prepaid 33,753  33,840 
Net PCS subscriber additions - prepaid (3) 1,819  1,863 
PCS average monthly retail churn % - postpaid 1.74% 1.67%
PCS average monthly retail churn % - prepaid 3.97% 4.25%

_______________________________________________________

  1. "POPS" refers to the estimated population of a given geographic area. Market POPS are those within a market area which we are authorized to serve under our Sprint PCS affiliate agreement, and Covered POPS are those covered by our network. The data source for POPS is U.S. census data.
  2. For the six months ended June 30, 2018 Net PCS subscriber additions - postpaid were 5,718 excluding the acquisition of the expansion area on February 1, 2018.
  3. For the six months ended June 30, 2018 Net PCS subscriber additions - prepaid were 10,541 excluding the acquisition of the expansion area on February 1, 2018.
  4. Beginning February 1, 2018 includes Richmond Expansion Area except for gross PCS subscriber additions.

The subscriber stats above, excluding gross additions, include the Richmond Expansion Area as follows:

  February 1,  2018
  Expansion Area
PCS subscribers - postpaid 38,343 
PCS subscribers - prepaid 15,691 
Acquired PCS market POPS (000) 1,082 
Acquired PCS covered POPS (000) 602 
Acquired CDMA base stations (sites) 105 

The following table indicates selected operating statistics of Cable:

  June 30,  2019 June 30, 2018
Homes passed (1) 189,762  185,016 
Customer relationships (2)    
Video users 40,497  42,483 
Non-video customers 43,024  35,773 
Total customer relationships 83,521  78,256 
Video    
Customers (3) 42,874  44,800 
Penetration (4) 22.6% 24.2%
Digital video penetration (5) 90.3% 76.9%
Broadband    
Users (3) 71,893  65,466 
Penetration (4) 37.9% 35.4%
Voice    
Users (3) 23,805  22,882 
Penetration (4) 12.5% 12.4%
Total revenue generating units (6) 138,572  133,148 
Fiber route miles 3,657  3,426 
Total fiber miles (7) 143,762  133,702 
Average revenue generating units 138,016  132,287 

_______________________________________________________

  1. Homes and businesses are considered passed (“homes passed”) if we can connect them to our distribution system without further extending the transmission lines. Homes passed is an estimate based upon the best available information. Homes passed have access to video, broadband and voice services.
  2. Customer relationships represent the number of billed customers who receive at least one of our services.
  3. Generally, a dwelling or commercial unit with one or more television sets connected to our distribution system counts as one video customer. Where services are provided on a bulk basis for video, broadband, or voice services, such as to hotels and some multi-dwelling units, the revenue charged to the customer is divided by the rate for comparable service in the local market to determine the number of customer equivalents included in the customer counts shown above.
  4. Penetration is calculated by dividing the number of users by the number of homes passed or available homes, as appropriate.
  5. Digital video penetration is calculated by dividing the number of digital video users by total video users. Digital video users are video customers who receive any level of video service via digital transmission. A dwelling with one or more digital set-top boxes or digital adapters counts as one digital video user.
  6. Revenue generating units are the sum of video, voice and broadband users.
  7. Total fiber miles are measured by taking the number of fiber strands in a cable and multiplying that number by the route distance. For example, a 10 mile route with 144 fiber strands would equal 1,440 fiber miles.

The following table includes selected operating statistics of the Wireline operations:

  June 30,  2019 June 30,  2018
Long distance subscribers 9,461  8,930 
Video customers (1) 4,520  4,850 
Broadband customers 14,643  14,694 
Fiber route miles 2,176  2,099 
Total fiber miles (2) 163,363  157,008 

_______________________________________________________

  1. Wireline’s video service passes approximately 16,500 homes.
  2. Fiber miles are measured by taking the number of fiber strands in a cable and multiplying that number by the route distance. For example, a 10 mile route with 144 fiber strands would equal 1,440 fiber miles.

 

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