Shenandoah Telecommunications Company Reports Fourth Quarter and Full Year 2020 Results
February 25 2021 - 7:00AM
Shenandoah Telecommunications Company (“Shentel”) (Nasdaq: SHEN)
announced fourth quarter and full year 2020 financial and operating
results.
2020 Highlights
- Record Broadband data net additions of approximately 18,800
with Glo Fiber and Beam contributing approximately 4,000 and 100,
respectively
- Added approximately 27,000 Glo Fiber homes passed and eight new
franchise agreements expanding franchise passings to over
116,000
- Launched Beam fixed wireless broadband service in the fourth
quarter 2020 to approximately 9,400 homes passed in four counties
in Virginia
“2020 was a very successful and pivotal year for
our Company, as we built momentum executing our Broadband strategy.
Our incumbent cable business had a record year of data net
additions, driven by our upgraded DOCSIS 3.1 cable network, the
value of our Powerhouse rate card, and the increase in customers
working and learning from home,” said President and CEO,
Christopher E. French. “Our first full year of Glo Fiber exceeded
our expectations for construction pace, penetration rates and
churn, validating our investment thesis. We are also pleased to
have successfully launched our Beam fixed wireless service in
October, providing an additional means to deliver broadband
services. We are excited that the foundational investments made in
our integrated broadband network will support sustainable high
growth rates for the next several years.”
Shentel's fourth-quarter earnings conference call will be
webcast at 8:30 a.m. ET on Thursday, February 25, 2021. The
webcast and related materials will be available on Shentel’s
Investor Relations website at
https://investor.shentel.com/.
Consolidated Full Year 2020
Results
- Revenue grew 6.7% to $220.8 million
driven by 31% growth in Tower and 5.4% growth in Broadband
segments.
- Adjusted OIBDA increased 15.8% to
$57.2 million in 2020 due to strong growth in Towers and a 13.3%
decline in Corporate expenses.
- Operating loss in 2020 was $(1.1)
million, compared with $(0.7) million in 2019.
- Earnings from continuing operations
per diluted share was $0.05 compared to $0.05 in 2019 and earnings
from discontinued operations grew 131.8% to $2.48 per diluted share
2020.
Broadband
- Total Broadband Data Revenue
Generating Units ("RGUs") as of December 31, 2020 were
102,812, representing 22.3% year over year growth.
- Incumbent cable Broadband Data RGUs
as of December 31, 2020 were 98,555, representing 17.4% year
over year growth. Data penetration grew year over year from 40.6%
to 47.2% driven by strong demand for high speed Internet, the
enhanced value of our Powerhouse rate card and demand from Covid-19
induced work and learn from home mandates. Churn declined 20 basis
points year over year to 1.6%. Broadband average revenue per user
(“ARPU”) decreased 1.0% to $77.97, in 2020, driven by sales of a
discounted pre-paid rate plan offered to credit-challenged
customers as a result of the pandemic.
- Glo Fiber Broadband Data RGUs as of
December 31, 2020 were 4,158. Penetration grew to 14.5% driven
by strong demand for high speed Internet fiber-based services and
differentiated local customer service. 2020 churn and ARPU were
0.84% and $78.90, respectively. Total Glo Fiber passings grew
approximately 28.2% sequentially, from the third quarter 2020, to
28,652.
- Beam Broadband Data RGUs as of
December 31, 2020 were 99. ARPU was $73.17 for the period
since the launch in October 2020.
- The Company acquired Canaan Cable
on December 31, 2020 for $2.1 million. RGUs acquired in the deal
totaled approximately one thousand, which have not been included in
our reporting of revenue, RGUs, or ARPU for 2020.
- Total Broadband revenue grew $10.4
million or 5.4% to $204.3 million. Residential & SMB revenue
increased approximately $12.7 million, or 8.9%, during 2020
primarily driven by 22.3% growth in broadband penetration.
Commercial Fiber revenue increased approximately $2.3 million
during 2020 due to an increase in new enterprise and backhaul
recurring revenue of $4.0 million partially offset by a $1.6
million decline in amortized upfront fee revenue. Rural Local
Exchange Carrier (RLEC) & Other revenue decreased approximately
$4.7 million, or 22.0%, compared with 2019 due primarily to a
decline in residential DSL subscribers, lower governmental support
and lower intercompany phone service. We expect RLEC revenue to
continue to decline as subscribers migrate to faster speed data
services provided by our dual-incumbent cable franchise in
Shenandoah County, Virginia.
- Broadband operating expenses
increased approximately $12.6 million, or 8.4%, to $164.0 million
in 2020, compared with 2019, primarily due to $7.9 million of
higher compensation expense due to the combination of Glo Fiber and
Beam start-up staffing, higher incentive accrual from strong
operating results, COVID supplemental pay for customer interfacing
employees and enhanced benefit plans. Higher software fees and
professional services drove an additional increase of $2.8 million
which was driven by higher software fees and licenses and
professional services. Other general and administrative expenses
increased by $0.6 million. Depreciation and amortization expense
also increased by $2.5 million.
- Broadband Adjusted OIBDA in 2020
grew 0.5% to $81.5 million, compared with $81.2 million in
2019.
- Broadband operating income in 2020
was $40.4 million, compared with $42.6 million in 2019.
Tower
- Total macro towers and tenants were
223 and 427, respectively, as of December 31, 2020, as
compared to 225 and 404, respectively, as of December 31,
2019.
- Revenue increased approximately
$4.1 million, or 31.3%, in 2020 to $17.1 million compared with
2019. This increase was due to an 5.7% increase in tenants and
23.4% increase in average revenue per tenant driven by amendments
to intercompany leases.
- Operating expenses increased
approximately $1.5 million compared to the prior year period, due
primarily to increases in ground lease rent expense and
professional services.
- Tower Adjusted OIBDA grew
29.7% to $10.7 million, compared with $8.3 million in 2019.
- Tower operating income in 2020 was $8.8 million, compared with
$6.3 million in 2019.
Consolidated Fourth Quarter 2020 Results
- Revenue in the fourth quarter of
2020 grew 8.5% to $58.1 million due to the growth of 20.4% in
Towers and 7.8% in Broadband segments.
- Adjusted OIBDA in the fourth
quarter of 2020 grew 20.4% to $15.7 million due to 18.2% decline in
Corporate expenses, 18.9% growth in Towers and 3.1% growth in
Broadband.
- Operating income in the fourth
quarter of 2020 was $1.6 million compared with a loss of $(0.6)
million in the fourth quarter of 2019.
- Earnings from continuing operations
per diluted share was $0.03 compared to $(0.01) in the fourth
quarter 2019 and earnings from discontinued operations grew 216.7%
to $0.95 per diluted share from the fourth quarter 2020.
Broadband
- Broadband revenue in the fourth
quarter of 2020 grew $3.9 million or 7.8% to $53.7 million compared
with $50.0 million in the fourth quarter of 2019, primarily driven
by $4.3 million or 11.6% increase in Residential and SMB revenue on
22.3% increase in data subscribers. Commercial fiber grew 8.7% to
$8.7 million from higher enterprise and backhaul connections. RLEC
revenue declined 20.5% to $4.2 million due primarily to lower DSL
subscribers and intercompany phone service.
- Broadband operating expenses in the
fourth quarter of 2020 were $43.0 million compared to $40.4 million
in the fourth quarter of 2019. The increase was primarily due to a
$1.8 million increase in compensation expense due to a combination
of Glo Fiber and Beam start-up staffing, higher incentive accrual
from strong operating results and enhanced benefit plans, and $1.2
million in higher maintenance of the expanding network.
- Broadband Adjusted OIBDA in the fourth quarter of 2020 grew
3.5% to $21.4 million, compared with $20.7 million for the fourth
quarter of 2019.
- Broadband Operating income in the fourth quarter of 2020 was
$10.7 million, compared to $9.4 million in the fourth quarter of
2019.
Tower
- Tower revenue grew 20.4% to $4.6
million due to 5.5% increase in tenants and 16.2% increase in
revenue per tenant due to amendments to intercompany leases.
- Tower Adjusted OIBDA in the
fourth quarter of 2020 grew 18.9% to $2.9 million, compared with
$2.4 million for the fourth quarter of 2019.
- Tower operating income in the
fourth quarter of 2020 was consistent with 2019.
Other Information
- As previously announced, T-Mobile
exercised an option to purchase our Wireless assets and operations
pursuant to an appraisal process that determined the sale price to
be $1.95 billion, inclusive of an estimated closing adjustment for
the unrealized waived management fee. We expect to enter into a
definitive asset purchase agreement with T-Mobile during the first
quarter 2021 and expect that the transaction will close during the
second quarter 2021, subject to customary closing conditions and
required regulatory approvals.
- As previously announced, the
Company currently expects the after-tax proceeds from the sale of
our wireless assets and operations to be approximately $1.5 billion
and will be used repay approximately $702 million of outstanding
term loans and terminate the credit agreement and to fund a special
dividend of $18.75 per share to Shentel’s shareholders. The Company
expects to pay the special dividend in the second quarter 2021
after the close of the transaction, subject to the approval of
Shentel’s Board of Directors.
- At December 31, 2020 the
Company had $697.9 million of outstanding debt principal that is
required to be fully repaid upon the disposition of Wireless
operations and assets. Additionally, the Company intends to repay
$4.0 million of swap liabilities. As of December 31, 2020, the
Company had liquidity of approximately $270.4 million,
including $75.0 million of revolving line of credit
availability.
- Capital expenditures were $120.5
million for the year ended December 31, 2020 compared with
$67.0 million in 2019. The $53.4 million increase in capital
expenditures was primarily due to higher spending in the Broadband
segment driven by the expansion of Glo Fiber and Beam.
- The Company declared and paid a
cash dividend of $0.34 per share, in the fourth quarter 2020,
representing a 17.2% increase over the 2019 dividend.
2021 OutlookShentel is
affirming the full-year 2021 guidance issued by the Company on
February 3, 2021. As previously conveyed, full year guidance for
2021 is summarized as follows:
($ in millions) |
|
Year Ending December 31, |
|
Year Ended December 31,
2019 |
|
% Change 2020 to 2021 Midpoint |
|
% Change 2019 to 2020 |
|
|
2021 |
|
2020 |
|
|
|
|
|
Guidance |
|
Actual |
|
|
|
|
|
Low |
|
High |
|
|
|
|
|
Revenue |
|
$ |
241 |
|
|
$ |
248 |
|
|
$ |
221 |
|
|
$ |
207 |
|
|
10.6 |
% |
|
6.8 |
% |
Operating Income (loss) |
|
$ |
7 |
|
|
$ |
14 |
|
|
$ |
(1 |
) |
|
$ |
(1 |
) |
|
nm |
|
|
— |
% |
Adjusted OIBDA |
|
$ |
69 |
|
|
$ |
76 |
|
|
$ |
57 |
|
|
$ |
49 |
|
|
27.2 |
% |
|
16.3 |
% |
Capital Expenditures |
|
$ |
157 |
|
|
$ |
168 |
|
|
$ |
120 |
|
|
$ |
67 |
|
|
35.4 |
% |
|
79.1 |
% |
Adjusted OIBDA is a non-GAAP financial measure
that is not determined in accordance with US generally accepted
accounting principles. Reconciliations of this non-GAAP financial
measures are provided in this press release after the consolidated
financial statements.
Conference
Call and Webcast |
|
|
Teleconference
Information: |
|
Date: February 25,
2021 |
|
Time: 8:30 A.M. (ET) |
|
Dial in number:
1-888-695-7639 |
|
|
|
Password: 6067574 |
|
|
Audio
webcast: http://investor.shentel.com/ |
An audio replay of the call will be available approximately two
hours after the call is complete, through March 26, 2021 by
calling (855) 859-2056.
About Shenandoah
Telecommunications
Shenandoah Telecommunications Company (Shentel)
provides a broad range of diversified communications services
through its high speed, state-of-the-art wireless, cable and fiber
optic and fixed wireless networks to customers in the Mid-Atlantic
United States. The Company’s services include: broadband internet,
video, and digital voice; fiber optic Ethernet, wavelength and
leasing; telephone voice and digital subscriber line; tower
colocation leasing; and wireless voice and data. 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, and Kentucky. 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 Volk Senior Vice President - Chief
Financial Officer540-984-5168Jim.Volk@emp.shentel.com |
|
|
|
|
SHENANDOAH TELECOMMUNICATIONS COMPANY AND
SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(in thousands, except per share
amounts) |
|
|
Quarter Ended December 31, |
|
Year Ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Service revenue and other |
$ |
58,132 |
|
|
$ |
53,602 |
|
|
$ |
220,775 |
|
|
$ |
206,862 |
|
Operating expenses: |
|
|
|
|
|
|
|
Cost of services |
23,036 |
|
|
20,949 |
|
|
88,203 |
|
|
82,949 |
|
Selling, general and administrative |
20,789 |
|
|
20,225 |
|
|
85,016 |
|
|
77,846 |
|
Depreciation and amortization |
12,693 |
|
|
12,978 |
|
|
48,703 |
|
|
46,786 |
|
Total operating expenses |
56,518 |
|
|
54,152 |
|
|
221,922 |
|
|
207,581 |
|
Operating income (loss) |
1,614 |
|
|
(550 |
) |
|
(1,147 |
) |
|
(719 |
) |
Other
income: |
|
|
|
|
|
|
|
Other income, net |
84 |
|
|
(178 |
) |
|
3,187 |
|
|
3,280 |
|
Income before income taxes |
1,698 |
|
|
(728 |
) |
|
2,040 |
|
|
2,561 |
|
Income tax expense (benefit) |
98 |
|
|
168 |
|
|
(586 |
) |
|
173 |
|
Income (loss) from continuing operations |
1,600 |
|
|
(896 |
) |
|
2,626 |
|
|
2,388 |
|
Income from discontinued operations, net of tax |
47,675 |
|
|
15,439 |
|
|
124,097 |
|
|
53,568 |
|
Net income |
49,275 |
|
|
14,543 |
|
|
126,723 |
|
|
55,956 |
|
|
|
|
|
|
|
|
|
Net
income per share, basic and diluted: |
|
|
|
|
|
|
|
Basic - Income (loss) from continuing operations |
$ |
0.03 |
|
|
$ |
(0.01 |
) |
|
$ |
0.05 |
|
|
$ |
0.05 |
|
Basic - Income from discontinued operations, net of tax |
$ |
0.96 |
|
|
$ |
0.30 |
|
|
$ |
2.49 |
|
|
$ |
1.07 |
|
Basic net income per share |
$ |
0.99 |
|
|
$ |
0.29 |
|
|
$ |
2.54 |
|
|
$ |
1.12 |
|
|
|
|
|
|
|
|
|
Diluted - Income (loss) from continuing operations |
$ |
0.03 |
|
|
$ |
(0.01 |
) |
|
$ |
0.05 |
|
|
$ |
0.05 |
|
Diluted - Income from discontinued operations, net of tax |
$ |
0.95 |
|
|
$ |
0.30 |
|
|
$ |
2.48 |
|
|
$ |
1.07 |
|
Diluted net income per share |
$ |
0.98 |
|
|
$ |
0.29 |
|
|
$ |
2.53 |
|
|
$ |
1.12 |
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding, basic |
49,922 |
|
|
49,762 |
|
|
49,901 |
|
|
49,811 |
|
Weighted average shares outstanding, diluted |
50,010 |
|
|
49,762 |
|
|
50,024 |
|
|
50,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHENANDOAH
TELECOMMUNICATIONS COMPANY AND
SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS(in thousands) |
|
|
December 31,2020 |
|
December 31,2019 |
|
|
|
|
Cash and cash equivalents |
$ |
195,397 |
|
|
$ |
101,651 |
|
Other current assets |
80,024 |
|
|
85,125 |
|
Current assets held for
sale |
1,133,294 |
|
|
55,077 |
|
Total current assets |
1,408,715 |
|
|
241,853 |
|
|
|
|
|
Investments |
13,769 |
|
|
12,388 |
|
Property, plant and equipment,
net |
440,427 |
|
|
363,087 |
|
Intangible assets, net and
Goodwill |
106,759 |
|
|
88,241 |
|
Operating lease right-of-use
assets |
50,387 |
|
|
42,568 |
|
Deferred charges and other
assets, net |
11,650 |
|
|
9,267 |
|
Non-current assets held for
sale |
— |
|
|
1,141,498 |
|
Total assets |
$ |
2,031,707 |
|
|
$ |
1,898,902 |
|
|
|
|
|
Current liabilities held for
sale |
452,202 |
|
|
$ |
53,912 |
|
Total current liabilities |
755,859 |
|
|
$ |
99,665 |
|
Long-term debt, less current
maturities |
— |
|
|
688,464 |
|
Non-current liabilities held
for sale |
— |
|
|
368,423 |
|
Other liabilities |
241,252 |
|
|
216,010 |
|
Total shareholders’
equity |
582,394 |
|
|
472,428 |
|
Total liabilities and shareholders’ equity |
$ |
2,031,707 |
|
|
$ |
1,898,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHENANDOAH
TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES |
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(in thousands) |
2020 |
|
2019 |
Cash flows from operating activities: |
|
|
|
Net income |
$ |
126,723 |
|
|
$ |
55,956 |
|
Income from operations of discontinued operations, net of tax |
124,097 |
|
|
53,568 |
|
Income from continuing operations |
2,626 |
|
|
2,388 |
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation |
47,964 |
|
|
46,313 |
|
Amortization of intangible assets |
739 |
|
|
473 |
|
Bad debt expense |
1,220 |
|
|
1,743 |
|
Stock based compensation expense, net of amount capitalized |
5,907 |
|
|
3,367 |
|
Deferred income taxes |
15,310 |
|
|
16,848 |
|
Other adjustments |
(978 |
) |
|
(4,359 |
) |
Changes in assets and liabilities |
(19,429 |
) |
|
(24,444 |
) |
Net cash provided by operating activities – continuing
operations |
53,359 |
|
|
42,329 |
|
Net cash provided by operating activities – discontinued
operations |
249,508 |
|
|
216,816 |
|
Net cash provided by operating activities |
302,867 |
|
|
259,145 |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
Capital expenditures |
(120,450 |
) |
|
(67,048 |
) |
Cash disbursed for acquisitions |
(1,890 |
) |
|
(10,000 |
) |
Cash disbursed for FCC spectrum licenses |
(16,118 |
) |
|
(16,742 |
) |
Proceeds from sale of assets and other |
370 |
|
|
112 |
|
Net cash used in investing activities – continuing operations |
(138,088 |
) |
|
(93,678 |
) |
Net cash used in investing activities – discontinued
operations |
(17,500 |
) |
|
(71,656 |
) |
Net cash used in investing activities |
(155,588 |
) |
|
(165,334 |
) |
|
|
|
|
Cash flows from financing activities: |
|
|
|
Dividends paid, net of dividends reinvested |
(16,424 |
) |
|
(13,943 |
) |
Taxes paid for equity award issuances |
(2,217 |
) |
|
(2,910 |
) |
Other |
(769 |
) |
|
(7,195 |
) |
Net cash used in financing activities – continuing operations |
(19,410 |
) |
|
(24,048 |
) |
Net cash used in financing activities – discontinued
operations |
(34,123 |
) |
|
(53,198 |
) |
Net cash used in financing activities |
(53,533 |
) |
|
(77,246 |
) |
|
|
|
|
Net increase in cash and cash equivalents |
93,746 |
|
|
16,565 |
|
Cash and cash equivalents, beginning of period |
101,651 |
|
|
85,086 |
|
Cash and cash equivalents, end of period |
$ |
195,397 |
|
|
$ |
101,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
MeasuresAdjusted OIBDA
Adjusted OIBDA represents Operating income
before depreciation, amortization of intangible assets, 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.
Adjusted OIBDA has limitations as an analytical
tool and should not be considered in isolation or as a substitute
for operating income, 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:
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2020 |
|
|
|
|
|
|
|
|
(in
thousands) |
|
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
Operating income (loss) from continuing operations |
|
$ |
40,360 |
|
|
$ |
8,823 |
|
|
$ |
(50,330 |
) |
|
$ |
(1,147 |
) |
Depreciation |
|
40,337 |
|
|
1,906 |
|
|
5,721 |
|
|
47,964 |
|
Amortization |
|
739 |
|
|
— |
|
|
— |
|
|
739 |
|
OIBDA |
|
81,436 |
|
|
10,729 |
|
|
(44,609 |
) |
|
47,556 |
|
Share-based compensation expense |
|
— |
|
|
— |
|
|
5,907 |
|
|
5,907 |
|
Deal advisory fees |
|
101 |
|
|
— |
|
|
3,679 |
|
|
3,780 |
|
Adjusted OIBDA |
|
$ |
81,537 |
|
|
$ |
10,729 |
|
|
$ |
(35,023 |
) |
|
$ |
57,243 |
|
Year Ended December
31, 2019 |
|
|
|
|
|
|
|
|
(in
thousands) |
|
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
Operating income (loss) from continuing operations |
|
$ |
42,597 |
|
|
$ |
6,295 |
|
|
$ |
(49,611 |
) |
|
$ |
(719 |
) |
Depreciation |
|
38,093 |
|
|
1,976 |
|
|
6,244 |
|
|
46,313 |
|
Amortization |
|
473 |
|
|
— |
|
|
— |
|
|
473 |
|
OIBDA |
|
81,163 |
|
|
8,271 |
|
|
(43,367 |
) |
|
46,067 |
|
Share-based compensation expense |
|
— |
|
|
— |
|
|
3,367 |
|
|
3,367 |
|
Adjusted OIBDA |
|
$ |
81,163 |
|
|
$ |
8,271 |
|
|
$ |
(40,000 |
) |
|
$ |
49,434 |
|
Quarter ended December
31, 2020 |
|
|
|
|
|
|
|
|
(in
thousands) |
|
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
Operating income (loss) from continuing operations |
|
$ |
10,710 |
|
|
$ |
2,379 |
|
|
$ |
(11,475 |
) |
|
$ |
1,614 |
|
Depreciation |
|
10,377 |
|
|
492 |
|
|
1,573 |
|
|
12,442 |
|
Amortization |
|
251 |
|
|
— |
|
|
— |
|
|
251 |
|
OIBDA |
|
21,338 |
|
|
2,871 |
|
|
(9,902 |
) |
|
14,307 |
|
Share-based compensation expense |
|
— |
|
|
— |
|
|
601 |
|
|
601 |
|
Deal advisory fees |
|
101 |
|
|
— |
|
|
677 |
|
|
778 |
|
Adjusted OIBDA |
|
$ |
21,439 |
|
|
$ |
2,871 |
|
|
$ |
(8,624 |
) |
|
$ |
15,686 |
|
Quarter Ended December
31, 2019 |
|
|
|
|
|
|
|
|
(in
thousands) |
|
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
Operating income (loss) from continuing operations |
|
$ |
9,392 |
|
|
$ |
2,539 |
|
|
$ |
(12,481 |
) |
|
$ |
(550 |
) |
Depreciation |
|
11,157 |
|
|
(125 |
) |
|
1,780 |
|
|
12,812 |
|
Amortization |
|
166 |
|
|
— |
|
|
— |
|
|
166 |
|
OIBDA |
|
20,715 |
|
|
2,414 |
|
|
(10,701 |
) |
|
12,428 |
|
Share-based compensation expense |
|
— |
|
|
— |
|
|
597 |
|
|
597 |
|
Adjusted OIBDA |
|
$ |
20,715 |
|
|
$ |
2,414 |
|
|
$ |
(10,104 |
) |
|
$ |
13,025 |
|
2021
Outlook – Adjusted OIBDA |
|
($ in millions) |
|
Year Ending December 31, |
|
Year Ended December 31,
2019 |
|
|
2021 |
|
2020 |
|
|
|
Guidance |
|
Actual |
|
|
|
Low |
|
High |
|
|
|
Operating Income (loss) |
|
$ |
7 |
|
|
$ |
14 |
|
|
$ |
(1 |
) |
|
$ |
(1 |
) |
Depreciation |
|
$ |
54 |
|
|
$ |
54 |
|
|
$ |
48 |
|
|
$ |
46 |
|
Amortization |
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
1 |
|
Stock
comp |
|
$ |
6 |
|
|
$ |
6 |
|
|
$ |
6 |
|
|
$ |
3 |
|
Deal
advisory fees |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3 |
|
|
$ |
— |
|
Restructuring and other |
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
— |
|
Adjusted
OIBDA |
|
$ |
69 |
|
|
$ |
76 |
|
|
$ |
57 |
|
|
$ |
49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Results |
|
Year ended December 31, 2020(in
thousands) |
|
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
External
revenue |
|
|
|
|
|
|
|
|
Residential & SMB |
|
$ |
154,956 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
154,956 |
|
Commercial Fiber |
|
24,431 |
|
|
— |
|
|
— |
|
|
24,431 |
|
RLEC & Other |
|
15,971 |
|
|
— |
|
|
— |
|
|
15,971 |
|
Tower lease |
|
— |
|
|
7,402 |
|
|
— |
|
|
7,402 |
|
Service revenue and other |
|
195,358 |
|
|
7,402 |
|
|
— |
|
|
202,760 |
|
Revenue for service provided to the discontinued Wireless
operations |
|
8,989 |
|
|
9,653 |
|
|
(627 |
) |
|
18,015 |
|
Total
revenue |
|
204,347 |
|
|
17,055 |
|
|
(627 |
) |
|
220,775 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
83,439 |
|
|
4,896 |
|
|
(132 |
) |
|
88,203 |
|
Selling, general and administrative |
|
39,472 |
|
|
1,430 |
|
|
44,114 |
|
|
85,016 |
|
Depreciation and amortization |
|
41,076 |
|
|
1,906 |
|
|
5,721 |
|
|
48,703 |
|
Total
operating expenses |
|
163,987 |
|
|
8,232 |
|
|
49,703 |
|
|
221,922 |
|
Operating income (loss) |
|
$ |
40,360 |
|
|
$ |
8,823 |
|
|
$ |
(50,330 |
) |
|
$ |
(1,147 |
) |
Year ended
December 31, 2019(in thousands) |
|
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
External
revenue |
|
|
|
|
|
|
|
|
Residential & SMB |
|
$ |
142,290 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
142,290 |
|
Commercial Fiber |
|
23,004 |
|
|
— |
|
|
— |
|
|
23,004 |
|
RLEC & Other |
|
18,257 |
|
|
— |
|
|
— |
|
|
18,257 |
|
Tower lease |
|
— |
|
|
6,965 |
|
|
— |
|
|
6,965 |
|
Service revenue and other |
|
183,551 |
|
|
6,965 |
|
|
— |
|
|
190,516 |
|
Revenue for service provided to the discontinued Wireless
operations |
|
10,392 |
|
|
6,020 |
|
|
(66 |
) |
|
16,346 |
|
Total
revenue |
|
193,943 |
|
|
12,985 |
|
|
(66 |
) |
|
206,862 |
|
Operating expenses |
|
|
|
|
|
|
|
|
Cost of services |
|
79,235 |
|
|
3,777 |
|
|
(63 |
) |
|
82,949 |
|
Selling, general and administrative |
|
33,545 |
|
|
937 |
|
|
43,364 |
|
|
77,846 |
|
Depreciation and amortization |
|
38,566 |
|
|
1,976 |
|
|
6,244 |
|
|
46,786 |
|
Total
operating expenses |
|
151,346 |
|
|
6,690 |
|
|
49,545 |
|
|
207,581 |
|
Operating income (loss) |
|
$ |
42,597 |
|
|
$ |
6,295 |
|
|
$ |
(49,611 |
) |
|
$ |
(719 |
) |
Quarter ended December 31, 2020(in
thousands) |
|
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
External
revenue |
|
|
|
|
|
|
|
|
Residential & SMB |
|
$ |
40,786 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
40,786 |
|
Commercial Fiber |
|
6,669 |
|
|
— |
|
|
— |
|
|
6,669 |
|
RLEC & Other |
|
4,091 |
|
|
— |
|
|
— |
|
|
4,091 |
|
Tower lease |
|
— |
|
|
1,912 |
|
|
— |
|
|
1,912 |
|
Service revenue and other |
|
51,546 |
|
|
1,912 |
|
|
— |
|
|
53,458 |
|
Revenue for service provided to the discontinued Wireless
operations |
|
2,171 |
|
|
2,653 |
|
|
(150 |
) |
|
4,674 |
|
Total
revenue |
|
53,717 |
|
|
4,565 |
|
|
(150 |
) |
|
58,132 |
|
Operating expenses |
|
|
|
|
|
|
|
|
Cost of services |
|
21,867 |
|
|
1,359 |
|
|
(190 |
) |
|
23,036 |
|
Selling, general and administrative |
|
10,512 |
|
|
335 |
|
|
9,942 |
|
|
20,789 |
|
Depreciation and amortization |
|
10,628 |
|
|
492 |
|
|
1,573 |
|
|
12,693 |
|
Total
operating expenses |
|
43,007 |
|
|
2,186 |
|
|
11,325 |
|
|
56,518 |
|
Operating income (loss) |
|
$ |
10,710 |
|
|
$ |
2,379 |
|
|
$ |
(11,475 |
) |
|
$ |
1,614 |
|
Quarter ended
December 31, 2019(in thousands) |
|
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
External
revenue |
|
|
|
|
|
|
|
|
Residential & SMB |
|
$ |
36,586 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
36,586 |
|
Commercial Fiber |
|
5,992 |
|
|
— |
|
|
— |
|
|
5,992 |
|
RLEC & Other |
|
4,458 |
|
|
— |
|
|
— |
|
|
4,458 |
|
Tower lease |
|
— |
|
|
1,599 |
|
|
— |
|
|
1,599 |
|
Service revenue and other |
|
47,036 |
|
|
1,599 |
|
|
— |
|
|
48,635 |
|
Revenue for service provided to the discontinued Wireless
operations |
|
2,794 |
|
|
2,191 |
|
|
(18 |
) |
|
4,967 |
|
Total
revenue |
|
49,830 |
|
|
3,790 |
|
|
(18 |
) |
|
53,602 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
19,887 |
|
|
1,073 |
|
|
(11 |
) |
|
20,949 |
|
Selling, general and administrative |
|
9,228 |
|
|
303 |
|
|
10,694 |
|
|
20,225 |
|
Depreciation and amortization |
|
11,323 |
|
|
(125 |
) |
|
1,780 |
|
|
12,978 |
|
Total
operating expenses |
|
40,438 |
|
|
1,251 |
|
|
12,463 |
|
|
54,152 |
|
Operating income (loss) |
|
$ |
9,392 |
|
|
$ |
2,539 |
|
|
$ |
(12,481 |
) |
|
$ |
(550 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information |
|
Broadband
Operating Statistics |
|
|
|
December 31,2020 |
|
December 31,2019 |
Broadband homes passed (1) |
|
246,790 |
|
|
208,298 |
|
Incumbent Cable |
|
208,691 |
|
|
206,575 |
|
Glo Fiber |
|
28,652 |
|
|
1,723 |
|
Beam |
|
9,447 |
|
|
— |
|
|
|
|
|
|
|
|
Broadband customer
relationships (2) |
|
109,458 |
|
|
100,890 |
|
|
|
|
|
|
|
|
Residential & SMB
RGUs: |
|
|
|
|
|
|
Broadband Data |
|
102,812 |
|
|
84,045 |
|
Incumbent Cable |
|
98,555 |
|
|
83,919 |
|
Glo Fiber |
|
4,158 |
|
|
126 |
|
Beam |
|
99 |
|
|
— |
|
Video |
|
52,817 |
|
|
53,673 |
|
Voice |
|
32,646 |
|
|
31,380 |
|
Total Residential & SMB
RGUs (excludes RLEC) |
|
188,275 |
|
|
169,098 |
|
|
|
|
|
|
|
|
Residential & SMB
Penetration (3) |
|
|
|
|
|
|
Broadband Data |
|
41.7 |
% |
|
40.3 |
% |
Incumbent Cable |
|
47.2 |
% |
|
40.6 |
% |
Glo Fiber |
|
14.5 |
% |
|
7.3 |
% |
Beam |
|
1.0 |
% |
|
— |
% |
Video |
|
21.4 |
% |
|
25.8 |
% |
Voice |
|
14.8 |
% |
|
16.2 |
% |
|
|
|
|
|
|
|
Fiber route miles |
|
6,794 |
|
|
6,139 |
|
Total fiber miles (5) |
|
394,316 |
|
|
320,444 |
|
|
|
|
|
|
|
|
_______________(1) Homes and businesses are considered
passed (“homes passed”) if we can connect them to our network
without further extending the distribution system. Homes passed is
an estimate based upon the best available information. Homes passed
will vary among video, broadband data and voice services.(2)
Customer relationships represent the number of billed customers who
receive at least one of our services.(3) Penetration is
calculated by dividing the number of users by the number of homes
passed or available homes, as appropriate.(4) Average Revenue
Per Data RGU calculation = (Residential & SMB Revenue * 1,000)
/ average data RGUs / 3 months(5) 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Broadband - Residential and SMB ARPU |
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31, |
|
Year Ended December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Residential and SMB Revenue: |
|
|
|
|
|
|
|
|
Broadband |
|
$ |
23,618 |
|
|
$ |
19,377 |
|
|
$ |
86,715 |
|
|
$ |
75,604 |
|
Incumbent Cable |
|
22,787 |
|
|
19,377 |
|
|
85,127 |
|
|
75,604 |
|
Glo Fiber |
|
819 |
|
|
— |
|
|
1,576 |
|
|
— |
|
Beam |
|
12 |
|
|
— |
|
|
12 |
|
|
— |
|
Video |
|
14,840 |
|
|
14,783 |
|
|
59,422 |
|
|
59,980 |
|
Voice |
|
2,912 |
|
|
2,850 |
|
|
11,441 |
|
|
11,311 |
|
Discounts and adjustments |
|
(524 |
) |
|
(425 |
) |
|
(2,561 |
) |
|
(4,605 |
) |
Total Revenue |
|
$ |
40,846 |
|
|
$ |
36,585 |
|
|
$ |
155,017 |
|
|
$ |
142,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average RGUs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Broadband Data |
|
100,826 |
|
|
83,196 |
|
|
92,730 |
|
|
80,035 |
|
Incumbent Cable |
|
97,210 |
|
|
83,196 |
|
|
90,983 |
|
|
80,035 |
|
Glo Fiber |
|
3,534 |
|
|
— |
|
|
1,665 |
|
|
— |
|
Beam |
|
82 |
|
|
— |
|
|
82 |
|
|
— |
|
Video |
|
53,410 |
|
|
54,327 |
|
|
53,150 |
|
|
56,830 |
|
Voice |
|
33,310 |
|
|
31,113 |
|
|
32,381 |
|
|
30,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Broadband |
|
$ |
78.08 |
|
|
$ |
77.64 |
|
|
$ |
77.93 |
|
|
$ |
78.72 |
|
Incumbent Cable |
|
$ |
78.14 |
|
|
$ |
77.64 |
|
|
$ |
77.97 |
|
|
$ |
78.72 |
|
Glo Fiber |
|
$ |
77.25 |
|
|
$ |
— |
|
|
$ |
78.90 |
|
|
$ |
— |
|
Beam |
|
$ |
73.17 |
|
|
$ |
— |
|
|
$ |
73.17 |
|
|
$ |
— |
|
Video |
|
$ |
92.62 |
|
|
$ |
90.70 |
|
|
$ |
93.17 |
|
|
$ |
87.95 |
|
Voice |
|
$ |
29.14 |
|
|
$ |
30.53 |
|
|
$ |
29.44 |
|
|
$ |
30.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Tower
Operating Statistics |
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December 31,2020 |
|
December 31,2019 |
Macro tower sites |
|
223 |
|
|
225 |
|
Tenants (1) |
|
427 |
|
|
404 |
|
Average tenants per tower |
|
1.8 |
|
|
1.8 |
|
_______________(1) Includes 221, 201 and 174
intercompany tenants for our Wireless operations, (reported as a
discontinued operation), as of December 31, 2020, 2019 and 2018,
respectively.
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