Shenandoah Telecommunications Company (“Shentel”) (Nasdaq: SHEN)
announced second quarter 2022 financial and operating results.
Second Quarter 2022 Highlights
- Revenue grew 8.8% to $66.0 million
over the same period a year ago driven by 138.9% and 4.3% growth in
Glo Fiber and incumbent cable data RGUs, respectively.
- Glo Fiber data net adds were
approximately 3,300, an increase of 103.2% over the second quarter
2021 and 38.9% over the first quarter 2022.
- Glo Fiber homes and businesses
passed grew 20% sequentially to approximately 113,000.
- Net loss from continuing operations
was $3.2 million compared to net income of $1.6 million in the same
period a year ago due primarily to impairment and restructuring
charges related to the decommissioning of unprofitable Beam fixed
wireless sites.
- Adjusted EBITDA grew 16.4%, to
$18.6 million over the same period a year ago.
“We are pleased with the strong execution of our
fiber first strategy and the increase in the pace of Glo Fiber net
additions and revenue growth,” said President and CEO, Christopher
E. French. "We reached the 100,000 fiber passings milestone in the
second quarter and are on target to construct 75,000 new passings
this year. We now have franchise agreements or government grant
awards in place for approximately 430,000 fiber passings or 89% of
our target passings in 2026."
Shentel's second-quarter earnings conference call
will be webcast at 8:30 a.m. ET on Wednesday, August 3, 2022.
The webcast and related materials will be available on Shentel’s
Investor Relations website at https://investor.shentel.com/.
Consolidated Second Quarter 2022
Results
- Revenue in the second quarter of
2022 grew 8.8% to $66.0 million compared with the second quarter of
2021, due to Broadband segment revenue growth of 9.2% and Tower
segment revenue growth of 1.9%.
- Loss from continuing operations per
share was $(0.06) in the second quarter of 2022 compared with
income per share from continuing operations of $0.03 in the second
quarter of 2021. The decline was due primarily to Beam branded
fixed wireless impairment and restructuring charges and higher
stock compensation expense.
- Adjusted EBITDA in the second
quarter of 2022 grew $2.6 million or 16.4% to $18.6 million,
compared with the second quarter of 2021, due primarily to 10.2%
growth in Broadband segment and 8.8% lower Corporate expenses from
lower professional fees.
Broadband
- Total broadband data Revenue
Generating Units ("RGUs") as of June 30, 2022, were 125,003,
representing 12.1% year over year growth. Penetration for incumbent
cable and Glo Fiber were 51% and 15%, respectively, compared to 49%
and 15%, respectively, as of June 30, 2021. Total Glo Fiber
passings grew year over year by approximately 66,100.
- Broadband revenue in the second
quarter of 2022 grew $5.2 million, or 9.2%, to $61.4 million
compared with $56.2 million in the second quarter of 2021,
primarily driven by a $3.9 million, or 8.9%, increase in
Residential and Small and Medium Business ("SMB") revenue by a
138.9% and 4.3% increase, respectively, in Glo Fiber and incumbent
cable broadband data RGUs.
- Cost of services increased
approximately $2.0 million, or 8.5%, compared with the three months
ended June 30, 2021, driven by higher maintenance and compensation
expenses. Maintenance increased due to higher cable replacement,
gasoline and field engineering costs. Compensation increased due to
higher headcount to support the expansion of our Glo Fiber network,
salary and wage increases and higher medical benefit costs.
- Selling, general and administrative
expense increased $1.2 million, or 9.0%, compared with the three
months ended June 30, 2021, due primarily to higher compensation
and advertising expense to support Glo Fiber expansion.
- Depreciation and amortization
increased $1.6 million, or 13.8%, compared with the three months
ended June 30, 2021, primarily as a result of our network expansion
of our Glo Fiber network.
- During the second quarter of 2022,
the Company permanently ceased operating 20 of our 55 Beam fixed
wireless sites and expects these sites to be completely
decommissioned by December 31, 2022. Consequently, Shentel recorded
$4.1 million and $0.4 million, respectively, of impairment and
restructuring charges and re-classified the remaining Beam assets
and liabilities as held for sale.
- Broadband operating income in the
second quarter of 2022 was $4.1 million, compared to $8.2 million
in the second quarter of 2021, due primarily to the above noted
Beam impairment and restructuring charges.
- Broadband Adjusted EBITDA in the
second quarter of 2022 grew 10.2% to $22.0 million, compared with
$20.0 million for the second quarter of 2021.
Tower
- Revenue increased approximately
$0.1 million, or 1.9%, for the three months ended June 30, 2022
compared with the three months ended June 30, 2021, primarily due
to a 3.8% increase in tenants.
- Tower operating income in the
second quarter of 2022 was $2.3 million, compared to $2.5 million
in the second quarter of 2021.
- Tower Adjusted EBITDA in the
second quarter of 2022 was consistent with the second quarter of
2021 at $2.9 million for both periods.
Other Information
- As of June 30, 2022, our cash
and cash equivalents totaled $33.3 million and the availability
under our delayed draw term loans and revolving line of credit was
$400.0 million, for total available liquidity of $433.3
million. On July 1, 2022, we drew a total of $25 million
against our term loans. We expect to draw the remaining $275
million available under the term loans by June 2023.
- Capital expenditures were $88.7
million for the six months ended June 30, 2022 compared with $79.6
million in the comparable 2021 period. The $9.1 million increase in
capital expenditures was primarily due to higher spending in the
Broadband segment driven by the expansion of our Glo Fiber
network.
Conference Call and Webcast
Date: Wednesday, August 3, 2022Time: 8:30 A.M.
(ET)Registration link: Registration linkA live webcast of the call
will be available on the “Investor Relations” page of the Company’s
website at http://investor.shentel.com/.
A replay of the call will be available for a
limited time on the Investor Relations page of the Company’s
website.
About Shenandoah
Telecommunications
Shenandoah Telecommunications Company (Shentel)
provides broadband services through its high speed,
state-of-the-art cable, fiber optic and fixed wireless networks to
customers in the Mid-Atlantic United States. The Company’s services
include: broadband internet, video, and voice; fiber optic
Ethernet, wavelength and leasing; and tower colocation leasing. The
Company owns an extensive regional network with over 7,900 route
miles of fiber and over 200 macro cellular towers. For more
information, please visit www.shentel.com.
This release contains forward-looking statements
about Shentel regarding, among other things, its business strategy,
its prospects and its financial position. These statements can be
identified by the use of forward-looking terminology such as
“believes,” “estimates,” “expects,” “intends,” “may,” “will,”
“should,” “could,” or “anticipates” or the negative or other
variation of these or similar words, or by discussions of strategy
or risks and uncertainties. The forward-looking statements are
based upon management’s beliefs, assumptions and current
expectations and may include comments as to Shentel’s beliefs and
expectations as to future events and trends affecting its business
that are necessarily subject to uncertainties, many of which are
outside Shentel’s control. Although management believes that the
expectations reflected in the forward-looking statements are
reasonable, forward-looking statements are not, and should not be
relied upon as, a guarantee of future performance or results, nor
will they necessarily prove to be accurate indications of the times
at which such performance or results will be achieved, and actual
results may differ materially from those contained in or implied by
the forward-looking statements as a result of various factors. A
discussion of other factors that may cause actual results to differ
from management’s projections, forecasts, estimates and
expectations is available in Shentel’s filings with the Securities
and Exchange Commission. Those factors may include natural
disasters, pandemics and outbreaks of contagious diseases and other
adverse public health developments, such as COVID-19, changes in
general economic conditions including high inflation, increases in
costs, changes in regulation and other competitive factors. The
forward-looking statements included are made only as of the date of
the statement. Shentel undertakes no obligation to revise or update
such statements to reflect current events or circumstances after
the date hereof, or to reflect the occurrence of unanticipated
events, except as required by law.
CONTACTS: Shenandoah Telecommunications CompanyJim
Volk Senior Vice President and Chief Financial
Officer540-984-5168Jim.Volk@emp.shentel.com
SHENANDOAH TELECOMMUNICATIONS COMPANY AND
SUBSIDIARIES |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE (LOSS) INCOME |
(in thousands, except per share amounts) |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Service revenue and other |
$ |
66,021 |
|
|
$ |
60,700 |
|
$ |
130,435 |
|
|
$ |
120,391 |
Operating expenses: |
|
|
|
|
|
|
|
Cost of services exclusive of depreciation and amortization |
|
26,756 |
|
|
|
24,648 |
|
|
53,095 |
|
|
|
48,072 |
Selling, general and administrative |
|
23,090 |
|
|
|
20,320 |
|
|
46,925 |
|
|
|
40,473 |
Restructuring expense |
|
454 |
|
|
|
43 |
|
|
390 |
|
|
|
661 |
Impairment expense |
|
4,068 |
|
|
|
— |
|
|
4,407 |
|
|
|
99 |
Depreciation and amortization |
|
14,790 |
|
|
|
13,299 |
|
|
29,135 |
|
|
|
26,466 |
Total operating expenses |
|
69,158 |
|
|
|
58,310 |
|
|
133,952 |
|
|
|
115,771 |
Operating (loss) income |
|
(3,137 |
) |
|
|
2,390 |
|
|
(3,517 |
) |
|
|
4,620 |
Other (expense) income: |
|
|
|
|
|
|
|
Other (expense) income, net |
|
(589 |
) |
|
|
1,338 |
|
|
(759 |
) |
|
|
2,938 |
(Loss) income from continuing operations before income taxes |
|
(3,726 |
) |
|
|
3,728 |
|
|
(4,276 |
) |
|
|
7,558 |
Income tax (benefit) expense |
|
(501 |
) |
|
|
2,103 |
|
|
(448 |
) |
|
|
2,988 |
(Loss) income from continuing operations |
|
(3,225 |
) |
|
|
1,625 |
|
|
(3,828 |
) |
|
|
4,570 |
Income from discontinued operations, net of tax |
|
— |
|
|
|
51,566 |
|
|
— |
|
|
|
100,038 |
Net (loss) income |
|
(3,225 |
) |
|
|
53,191 |
|
|
(3,828 |
) |
|
|
104,608 |
|
|
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
Unrealized income on interest rate hedge, net of tax |
|
— |
|
|
|
313 |
|
|
— |
|
|
|
1,086 |
Comprehensive (loss) income |
$ |
(3,225 |
) |
|
$ |
53,504 |
|
$ |
(3,828 |
) |
|
$ |
105,694 |
|
|
|
|
|
|
|
|
Net (loss) income per share, basic and diluted: |
|
|
|
|
|
|
|
Basic - (Loss) income from continuing operations |
$ |
(0.06 |
) |
|
$ |
0.03 |
|
$ |
(0.08 |
) |
|
$ |
0.09 |
Basic - Income from discontinued operations, net of tax |
$ |
— |
|
|
$ |
1.03 |
|
$ |
— |
|
|
$ |
2.00 |
Basic net (loss) income per share |
$ |
(0.06 |
) |
|
$ |
1.06 |
|
$ |
(0.08 |
) |
|
$ |
2.09 |
|
|
|
|
|
|
|
|
Diluted - (Loss) income from continuing operations |
$ |
(0.06 |
) |
|
$ |
0.03 |
|
$ |
(0.08 |
) |
|
$ |
0.09 |
Diluted - Income from discontinued operations, net of tax |
$ |
— |
|
|
$ |
1.03 |
|
$ |
— |
|
|
$ |
2.00 |
Diluted net (loss) income per share |
$ |
(0.06 |
) |
|
$ |
1.06 |
|
$ |
(0.08 |
) |
|
$ |
2.09 |
|
|
|
|
|
|
|
|
Weighted average shares outstanding, basic |
|
50,157 |
|
|
|
49,945 |
|
|
50,133 |
|
|
|
49,945 |
Weighted average shares outstanding, diluted |
|
50,157 |
|
|
|
50,075 |
|
|
50,133 |
|
|
|
50,067 |
SHENANDOAH TELECOMMUNICATIONS COMPANY AND
SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS(in thousands)
|
June 30,2022 |
|
December 31,2021 |
|
|
|
|
Cash and cash equivalents |
$ |
33,335 |
|
$ |
84,344 |
Other current assets |
|
76,656 |
|
|
82,023 |
Current assets held for sale |
|
19,821 |
|
|
— |
Total current assets |
|
129,812 |
|
|
166,367 |
|
|
|
|
Investments |
|
12,897 |
|
|
13,661 |
Property, plant and equipment, net |
|
609,785 |
|
|
554,162 |
Intangible assets, net and goodwill |
|
69,612 |
|
|
69,853 |
Operating lease right-of-use assets |
|
55,872 |
|
|
56,414 |
Deferred charges and other assets, net |
|
13,439 |
|
|
10,298 |
Total assets |
$ |
891,417 |
|
$ |
890,733 |
|
|
|
|
Current liabilities held for sale |
|
3,843 |
|
|
38 |
Total other current liabilities |
|
67,211 |
|
|
67,252 |
Non-current liabilities held for sale |
|
— |
|
|
3,807 |
Total other long-term liabilities |
|
176,993 |
|
|
177,361 |
Total shareholders’ equity |
|
643,370 |
|
|
642,275 |
Total liabilities and shareholders’ equity |
$ |
891,417 |
|
$ |
890,733 |
SHENANDOAH TELECOMMUNICATIONS COMPANY AND
SUBSIDIARIES |
|
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
|
|
(in thousands) |
Six Months EndedJune 30, |
|
2022 |
|
2021 |
Cash flows from operating activities: |
|
|
|
Net (loss) income |
$ |
(3,828 |
) |
|
$ |
104,608 |
|
Income from discontinued operations, net of tax |
|
— |
|
|
|
100,038 |
|
(Loss) income from continuing operations |
|
(3,828 |
) |
|
|
4,570 |
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
|
29,135 |
|
|
|
26,466 |
|
Stock-based compensation expense |
|
5,528 |
|
|
|
834 |
|
Impairment expense |
|
4,407 |
|
|
|
99 |
|
Deferred income taxes |
|
(392 |
) |
|
|
3,132 |
|
Other, net |
|
1,985 |
|
|
|
(201 |
) |
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
|
4,430 |
|
|
|
4,369 |
|
Current income taxes |
|
— |
|
|
|
(1,305 |
) |
Operating lease assets and liabilities, net |
|
414 |
|
|
|
(428 |
) |
Other assets |
|
(1,902 |
) |
|
|
(6,070 |
) |
Accounts payable |
|
127 |
|
|
|
560 |
|
Other deferrals and accruals |
|
(1,180 |
) |
|
|
(3,852 |
) |
Net cash provided by operating activities - continuing
operations |
|
38,724 |
|
|
|
28,174 |
|
Net cash provided by operating activities - discontinued
operations |
|
— |
|
|
|
125,011 |
|
Net cash provided by operating activities |
|
38,724 |
|
|
|
153,185 |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
Capital expenditures |
|
(88,706 |
) |
|
|
(79,562 |
) |
Proceeds from sale of assets and other |
|
279 |
|
|
|
189 |
|
Net cash used in investing activities - continuing operations |
|
(88,427 |
) |
|
|
(79,373 |
) |
Net cash used in investing activities - discontinued
operations |
|
— |
|
|
|
(928 |
) |
Net cash used in investing activities |
|
(88,427 |
) |
|
|
(80,301 |
) |
|
|
|
|
Cash flows from financing activities: |
|
|
|
Taxes paid for equity award issuances |
|
(835 |
) |
|
|
(1,627 |
) |
Payments for debt issuance costs |
|
— |
|
|
|
(53 |
) |
Payments for financing arrangements and other |
|
(471 |
) |
|
|
(751 |
) |
Net cash used in financing activities - continuing operations |
|
(1,306 |
) |
|
|
(2,431 |
) |
Net cash used in financing activities - discontinued
operations |
|
— |
|
|
|
(17,061 |
) |
Net cash used in financing activities |
|
(1,306 |
) |
|
|
(19,492 |
) |
Net (decrease) increase in cash and cash equivalents |
|
(51,009 |
) |
|
|
53,392 |
|
Cash and cash equivalents, beginning of period |
|
84,344 |
|
|
|
195,397 |
|
Cash and cash equivalents, end of period |
$ |
33,335 |
|
|
$ |
248,789 |
|
|
|
|
|
Supplemental Disclosures of Cash Flow
Information |
|
|
|
Interest paid |
$ |
— |
|
|
$ |
(7,740 |
) |
Income taxes paid |
$ |
— |
|
|
$ |
(20,954 |
) |
Non-GAAP Financial
MeasuresAdjusted EBITDA
The Company defines Adjusted EBITDA as net
income (loss) from continuing operations calculated in accordance
with GAAP, adjusted for the impact of depreciation and
amortization, impairment, other income (expense), net, interest
income, interest expense, income tax expense (benefit), stock
compensation expense, transaction costs related to acquisition and
disposition events (including professional advisory fees,
integration costs, and related compensatory matters), restructuring
expense, tax on equity award vesting and exercise events, and other
non-comparable items. A reconciliation of net income (loss) from
continuing operations, which is the most directly comparable GAAP
financial measure, to Adjusted EBITDA is provided below herein.
Adjusted EBITDA margin is the Company’s
calculation of Adjusted EBITDA, divided by revenue calculated in
accordance with GAAP.
The Company uses Adjusted EBITDA and Adjusted
EBITDA margin as supplemental measures of performance to evaluate
operating effectiveness and assess its ability to increase revenues
while controlling expense growth and the scalability of the
Company’s business growth strategy. The Company believes that the
exclusion of the expense and income items eliminated in calculating
Adjusted EBITDA and Adjusted EBITDA margin provides management and
investors a useful measure for period-to-period comparisons of the
Company’s core operating results by excluding items that are not
comparable across reporting periods or that do not otherwise relate
to the Company’s ongoing operations. Accordingly, the Company
believes that Adjusted EBITDA and Adjusted EBITDA margin provide
useful information to investors and others in understanding and
evaluating the Company’s operating results. However, use of
Adjusted EBITDA and Adjusted EBITDA margin as analytical tools has
limitations, and investors and others should not consider them in
isolation or as substitutes for analysis of our financial results
as reported under GAAP. In addition, other companies may calculate
Adjusted EBITDA and Adjusted EBITDA margin or similarly titled
measures differently, which may reduce their usefulness as
comparative measures.
Three Months Ended June 30, 2022 |
|
|
|
|
|
|
|
|
(in thousands) |
|
Broadband |
|
Tower |
|
Corporate & 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 |
|
|
4,068 |
|
|
|
— |
|
|
|
— |
|
|
|
4,068 |
|
Other expense (income), net |
|
|
65 |
|
|
|
— |
|
|
|
524 |
|
|
|
589 |
|
Income tax expense (benefit) |
|
|
— |
|
|
|
— |
|
|
|
(501 |
) |
|
|
(501 |
) |
EBITDA |
|
|
21,571 |
|
|
|
2,918 |
|
|
|
(8,768 |
) |
|
|
15,721 |
|
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
2,385 |
|
|
|
2,385 |
|
Restructuring charges and other |
|
|
443 |
|
|
|
— |
|
|
|
11 |
|
|
|
454 |
|
Adjusted EBITDA |
|
$ |
22,014 |
|
|
$ |
2,918 |
|
|
$ |
(6,372 |
) |
|
$ |
18,560 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
|
36 |
% |
|
|
62 |
% |
|
|
N/A |
|
|
|
28 |
% |
Three Months Ended June 30, 2021 |
|
|
|
|
|
|
|
|
(in thousands) |
|
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
Net income (loss) from continuing operations |
|
$ |
8,117 |
|
|
$ |
2,509 |
|
|
$ |
(9,001 |
) |
|
$ |
1,625 |
|
Depreciation and amortization |
|
|
11,774 |
|
|
|
449 |
|
|
|
1,076 |
|
|
|
13,299 |
|
Other expense (income), net |
|
|
62 |
|
|
|
— |
|
|
|
(1,400 |
) |
|
|
(1,338 |
) |
Income tax expense (benefit) |
|
|
— |
|
|
|
— |
|
|
|
2,103 |
|
|
|
2,103 |
|
EBITDA |
|
|
19,953 |
|
|
|
2,958 |
|
|
|
(7,222 |
) |
|
|
15,689 |
|
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
192 |
|
|
|
192 |
|
Restructuring charges and other |
|
|
28 |
|
|
|
— |
|
|
|
43 |
|
|
|
71 |
|
Adjusted EBITDA |
|
$ |
19,981 |
|
|
$ |
2,958 |
|
|
$ |
(6,987 |
) |
|
$ |
15,952 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
|
36 |
% |
|
|
64 |
% |
|
N/A |
|
|
26 |
% |
Six Months Ended June 30, 2022 |
|
|
|
|
|
|
|
|
(in thousands) |
|
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
Net income (loss) from continuing operations |
|
$ |
12,169 |
|
|
$ |
5,038 |
|
|
$ |
(21,035 |
) |
|
$ |
(3,828 |
) |
Depreciation and amortization |
|
|
25,933 |
|
|
|
1,117 |
|
|
|
2,085 |
|
|
|
29,135 |
|
Impairment expense |
|
|
4,407 |
|
|
|
— |
|
|
|
— |
|
|
|
4,407 |
|
Other expense (income), net |
|
|
119 |
|
|
|
— |
|
|
|
640 |
|
|
|
759 |
|
Income tax expense (benefit) |
|
|
— |
|
|
|
— |
|
|
|
(448 |
) |
|
|
(448 |
) |
EBITDA |
|
|
42,628 |
|
|
|
6,155 |
|
|
|
(18,758 |
) |
|
|
30,025 |
|
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
5,528 |
|
|
|
5,528 |
|
Restructuring charges and other |
|
|
460 |
|
|
|
— |
|
|
|
(70 |
) |
|
|
390 |
|
Adjusted EBITDA |
|
$ |
43,088 |
|
|
$ |
6,155 |
|
|
$ |
(13,300 |
) |
|
$ |
35,943 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
|
36 |
% |
|
|
64 |
% |
|
N/A |
|
|
28 |
% |
Six Months Ended June 30, 2021 |
|
|
|
|
|
|
|
|
(in thousands) |
|
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
Net income (loss) from continuing operations |
|
$ |
18,333 |
|
|
$ |
5,211 |
|
|
$ |
(18,974 |
) |
|
$ |
4,570 |
|
Depreciation and amortization |
|
|
23,437 |
|
|
|
930 |
|
|
|
2,099 |
|
|
|
26,466 |
|
Impairment expense |
|
|
99 |
|
|
|
— |
|
|
|
— |
|
|
|
99 |
|
Other expense (income), net |
|
|
132 |
|
|
|
— |
|
|
|
(3,070 |
) |
|
|
(2,938 |
) |
Income tax expense (benefit) |
|
|
— |
|
|
|
— |
|
|
|
2,988 |
|
|
|
2,988 |
|
EBITDA |
|
|
42,001 |
|
|
|
6,141 |
|
|
|
(16,957 |
) |
|
|
31,185 |
|
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
834 |
|
|
|
834 |
|
Restructuring charges and other |
|
|
248 |
|
|
|
— |
|
|
|
666 |
|
|
|
914 |
|
Adjusted EBITDA |
|
$ |
42,249 |
|
|
$ |
6,141 |
|
|
$ |
(15,457 |
) |
|
$ |
32,933 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
|
38 |
% |
|
|
66 |
% |
|
N/A |
|
|
27 |
% |
Segment Results
Three Months Ended June 30,
2022:
(in thousands) |
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
External revenue |
|
|
|
|
|
|
|
Residential & SMB |
$ |
47,899 |
|
$ |
— |
|
$ |
— |
|
|
$ |
47,899 |
|
Commercial Fiber |
|
9,340 |
|
|
— |
|
|
— |
|
|
|
9,340 |
|
RLEC & Other |
|
4,124 |
|
|
— |
|
|
— |
|
|
|
4,124 |
|
Tower lease |
|
— |
|
|
4,615 |
|
|
— |
|
|
|
4,615 |
|
Service revenue and other |
|
61,363 |
|
|
4,615 |
|
|
— |
|
|
|
65,978 |
|
Intercompany revenue and other |
|
49 |
|
|
87 |
|
|
(93 |
) |
|
|
43 |
|
Total revenue |
|
61,412 |
|
|
4,702 |
|
|
(93 |
) |
|
|
66,021 |
|
Operating expenses |
|
|
|
|
|
|
|
Cost of services |
|
25,440 |
|
|
1,378 |
|
|
(62 |
) |
|
|
26,756 |
|
Selling, general and administrative |
|
13,958 |
|
|
406 |
|
|
8,726 |
|
|
|
23,090 |
|
Restructuring expense |
|
443 |
|
|
— |
|
|
11 |
|
|
|
454 |
|
Impairment expense |
|
4,068 |
|
|
— |
|
|
— |
|
|
|
4,068 |
|
Depreciation and amortization |
|
13,396 |
|
|
633 |
|
|
761 |
|
|
|
14,790 |
|
Total operating expenses |
|
57,305 |
|
|
2,417 |
|
|
9,436 |
|
|
|
69,158 |
|
Operating income (loss) |
$ |
4,107 |
|
$ |
2,285 |
|
$ |
(9,529 |
) |
|
$ |
(3,137 |
) |
Three Months Ended June 30,
2021:
(in thousands) |
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
External revenue |
|
|
|
|
|
|
|
Residential & SMB |
$ |
43,989 |
|
$ |
— |
|
$ |
— |
|
|
$ |
43,989 |
Commercial Fiber |
|
6,531 |
|
|
— |
|
|
— |
|
|
|
6,531 |
RLEC & Other |
|
3,605 |
|
|
— |
|
|
— |
|
|
|
3,605 |
Tower lease |
|
— |
|
|
2,019 |
|
|
— |
|
|
|
2,019 |
Service revenue and other |
|
54,125 |
|
|
2,019 |
|
|
— |
|
|
|
56,144 |
Intercompany revenue and other |
|
2,102 |
|
|
2,595 |
|
|
(141 |
) |
|
|
4,556 |
Total revenue |
|
56,227 |
|
|
4,614 |
|
|
(141 |
) |
|
|
60,700 |
Operating expenses |
|
|
|
|
|
|
|
Cost of services |
|
23,440 |
|
|
1,318 |
|
|
(110 |
) |
|
|
24,648 |
Selling, general and administrative |
|
12,806 |
|
|
338 |
|
|
7,176 |
|
|
|
20,320 |
Restructuring expense |
|
27 |
|
|
— |
|
|
16 |
|
|
|
43 |
Depreciation and amortization |
|
11,775 |
|
|
449 |
|
|
1,075 |
|
|
|
13,299 |
Total operating expenses |
|
48,048 |
|
|
2,105 |
|
|
8,157 |
|
|
|
58,310 |
Operating income (loss) |
$ |
8,179 |
|
$ |
2,509 |
|
$ |
(8,298 |
) |
|
$ |
2,390 |
Six Months Ended June 30,
2022:
(in thousands) |
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
External revenue |
|
|
|
|
|
|
|
Residential & SMB |
$ |
94,812 |
|
$ |
— |
|
$ |
— |
|
|
$ |
94,812 |
|
Commercial Fiber |
|
18,402 |
|
|
— |
|
|
— |
|
|
|
18,402 |
|
RLEC & Other |
|
7,813 |
|
|
— |
|
|
— |
|
|
|
7,813 |
|
Tower lease |
|
— |
|
|
9,361 |
|
|
— |
|
|
|
9,361 |
|
Service revenue and other |
|
121,027 |
|
|
9,361 |
|
|
— |
|
|
|
130,388 |
|
Intercompany revenue and other |
|
99 |
|
|
188 |
|
|
(240 |
) |
|
|
47 |
|
Total revenue |
|
121,126 |
|
|
9,549 |
|
|
(240 |
) |
|
|
130,435 |
|
Operating expenses |
|
|
|
|
|
|
|
Cost of services |
|
50,608 |
|
|
2,670 |
|
|
(183 |
) |
|
|
53,095 |
|
Selling, general and administrative |
|
27,430 |
|
|
724 |
|
|
18,771 |
|
|
|
46,925 |
|
Restructuring expense |
|
460 |
|
|
— |
|
|
(70 |
) |
|
|
390 |
|
Impairment expense |
|
4,407 |
|
|
— |
|
|
— |
|
|
|
4,407 |
|
Depreciation and amortization |
|
25,933 |
|
|
1,117 |
|
|
2,085 |
|
|
|
29,135 |
|
Total operating expenses |
|
108,838 |
|
|
4,511 |
|
|
20,603 |
|
|
|
133,952 |
|
Operating income (loss) |
$ |
12,288 |
|
$ |
5,038 |
|
$ |
(20,843 |
) |
|
$ |
(3,517 |
) |
Six Months Ended June 30,
2021:
(in thousands) |
Broadband |
|
Tower |
|
Corporate & Eliminations |
|
Consolidated |
External revenue |
|
|
|
|
|
|
|
Residential & SMB |
$ |
86,919 |
|
$ |
— |
|
$ |
— |
|
|
$ |
86,919 |
Commercial Fiber |
|
12,916 |
|
|
— |
|
|
— |
|
|
|
12,916 |
RLEC & Other |
|
7,236 |
|
|
— |
|
|
— |
|
|
|
7,236 |
Tower lease |
|
— |
|
|
4,169 |
|
|
— |
|
|
|
4,169 |
Service revenue and other |
|
107,071 |
|
|
4,169 |
|
|
— |
|
|
|
111,240 |
Intercompany revenue and other |
|
4,310 |
|
|
5,110 |
|
|
(269 |
) |
|
|
9,151 |
Total revenue |
|
111,381 |
|
|
9,279 |
|
|
(269 |
) |
|
|
120,391 |
Operating expenses |
|
|
|
|
|
|
|
Cost of services |
|
45,717 |
|
|
2,566 |
|
|
(211 |
) |
|
|
48,072 |
Selling, general and administrative |
|
23,531 |
|
|
572 |
|
|
16,370 |
|
|
|
40,473 |
Restructuring expense |
|
132 |
|
|
— |
|
|
529 |
|
|
|
661 |
Impairment expense |
|
99 |
|
|
— |
|
|
— |
|
|
|
99 |
Depreciation and amortization |
|
23,437 |
|
|
930 |
|
|
2,099 |
|
|
|
26,466 |
Total operating expenses |
|
92,916 |
|
|
4,068 |
|
|
18,787 |
|
|
|
115,771 |
Operating income (loss) |
$ |
18,465 |
|
$ |
5,211 |
|
$ |
(19,056 |
) |
|
$ |
4,620 |
Supplemental Information
Broadband Operating
Statistics
|
June 30,2022 |
|
June 30,2021 |
Broadband homes and businesses passed (1) |
324,186 |
|
|
257,155 |
|
Incumbent Cable |
211,681 |
|
|
210,787 |
|
Glo Fiber |
112,505 |
|
|
46,368 |
|
|
|
|
|
Residential & Small and Medium Business ("SMB") RGUs: |
|
|
|
Broadband Data |
125,003 |
|
|
111,475 |
|
Incumbent Cable |
107,878 |
|
|
103,465 |
|
Glo Fiber |
17,125 |
|
|
7,169 |
|
Video |
49,027 |
|
|
51,355 |
|
Voice |
39,535 |
|
|
34,664 |
|
Total Residential & SMB RGUs (excludes RLEC) |
213,565 |
|
|
197,494 |
|
|
|
|
|
Residential & SMB Penetration (2) |
|
|
|
Broadband Data |
38.6 |
% |
|
43.3 |
% |
Incumbent Cable |
51.0 |
% |
|
49.1 |
% |
Glo Fiber |
15.2 |
% |
|
15.5 |
% |
Video |
15.1 |
% |
|
20.0 |
% |
Voice |
12.9 |
% |
|
14.4 |
% |
|
|
|
|
Fiber route miles |
7,906 |
|
|
7,041 |
|
Total fiber miles (3) |
589,923 |
|
|
440,236 |
|
______________________________________________________(1) Homes
and businesses are considered passed (“passings") if we can connect
them to our network without further extending the distribution
system. Passings is an estimate based upon the best available
information. Passings will vary among video, broadband data and
voice services. (2) Penetration is calculated by
dividing the number of users by the number of passings or available
homes, as appropriate. (3) 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 |
|
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Residential and SMB Revenue: |
|
|
|
|
|
|
|
Broadband |
$ |
29,568 |
|
$ |
25,571 |
|
|
$ |
58,217 |
|
$ |
50,103 |
|
Incumbent Cable |
|
26,123 |
|
|
24,177 |
|
|
|
51,986 |
|
|
47,641 |
|
Glo Fiber |
|
3,445 |
|
|
1,394 |
|
|
|
6,231 |
|
|
2,462 |
|
Video |
|
15,210 |
|
|
15,611 |
|
|
|
30,551 |
|
|
31,263 |
|
Voice |
|
2,994 |
|
|
2,893 |
|
|
|
5,910 |
|
|
5,792 |
|
Discounts, adjustments and other |
|
127 |
|
|
(86 |
) |
|
|
134 |
|
|
(239 |
) |
Total Revenue |
$ |
47,899 |
|
$ |
43,989 |
|
|
$ |
94,812 |
|
$ |
86,919 |
|
|
|
|
|
|
|
|
|
Average RGUs: |
|
|
|
|
|
|
|
Broadband Data |
|
123,153 |
|
|
108,996 |
|
|
|
121,832 |
|
|
106,954 |
|
Incumbent Cable |
|
107,738 |
|
|
102,688 |
|
|
|
107,878 |
|
|
101,403 |
|
Glo Fiber |
|
15,415 |
|
|
6,308 |
|
|
|
13,954 |
|
|
5,551 |
|
Video |
|
49,146 |
|
|
51,715 |
|
|
|
49,295 |
|
|
52,076 |
|
Voice |
|
38,463 |
|
|
33,993 |
|
|
|
36,650 |
|
|
33,462 |
|
|
|
|
|
|
|
|
|
ARPU: (1) |
|
|
|
|
|
|
|
Broadband |
$ |
79.94 |
|
$ |
78.17 |
|
|
$ |
80.02 |
|
$ |
78.05 |
|
Incumbent Cable |
$ |
80.82 |
|
$ |
78.48 |
|
|
$ |
80.85 |
|
$ |
78.30 |
|
Glo Fiber |
$ |
74.49 |
|
$ |
73.66 |
|
|
$ |
74.42 |
|
$ |
73.92 |
|
Video |
$ |
103.16 |
|
$ |
100.62 |
|
|
$ |
103.29 |
|
$ |
100.06 |
|
Voice |
$ |
25.95 |
|
$ |
28.37 |
|
|
$ |
26.88 |
|
$ |
28.85 |
|
______________________________________________________(1) Average
Revenue Per RGU calculation = (Residential & SMB Revenue *
1,000) / average RGUs / 3 months
Tower Operating Statistics
|
June 30,2022 |
|
June 30,2021 |
Macro tower sites |
223 |
|
223 |
Tenants |
465 |
|
448 |
Average tenants per tower |
2.0 |
|
1.9 |
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