Shenandoah Telecommunications Company Reports Second Quarter 2019 Results

August 6, 2019 at 7:00 AM EDT

EDINBURG, Va., Aug. 06, 2019 (GLOBE NEWSWIRE) -- 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 Telecommunications
Shenandoah 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 Company
Jim Volk
Senior Vice President - Chief Financial Officer
540-984-5168
Jim.Volk@emp.shentel.com

Or
John Nesbett/Jennifer Belodeau
IMS Investor Relations
203-972-9200
jnesbett@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 revenue 16,855     16,009     32,467     33,588  
Total operating revenue 158,914     156,501     317,757     310,639  
Operating expenses:              
Cost of services 49,497     49,134     99,015     98,476  
Cost of goods sold 15,874     15,166     30,511     30,971  
Selling, general and administrative 27,170     29,915     55,892     58,665  
Depreciation and amortization 42,353     41,117     83,532     84,604  
Total operating expenses 134,894     135,332     268,950     272,716  
Operating income 24,020     21,169     48,807     37,923  
Other income (expense):              
Interest expense (7,522 )   (8,851 )   (15,476 )   (18,183 )
Other 1,176     839     2,463     1,828  
Income before income taxes 17,674     13,157     35,794     21,568  
Income tax expense 4,524     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, basic 49,848     49,547     49,812     49,511  
Weighted average shares outstanding, diluted 50,142     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 assets 124,057     125,116  
Total current assets 222,148     210,202  
       
Investments 11,563     10,788  
Property, plant and equipment, net 695,725     701,359  
Intangible assets, net 324,890     366,029  
Goodwill 149,070     146,497  
Operating lease right-of-use assets 369,715      
Deferred charges and other assets 48,929     49,891  
Total assets $ 1,822,040     $ 1,484,766  
       
Total current liabilities $ 127,781     $ 88,539  
Long-term debt, less current maturities 719,067     749,624  
Other liabilities 513,143     204,356  
Total shareholders’ equity 462,049     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:      
Depreciation 72,737     71,637  
Amortization 10,795     12,967  
Accretion of asset retirement obligations 708     471  
Bad debt expense 764     758  
Stock based compensation expense, net of amount capitalized 2,307     3,407  
Deferred income taxes 3,434     (8,004 )
Other adjustments (433 )   789  
Changes in assets and liabilities 12,260     28,910  
Net cash provided by operating activities 129,632     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 assets 108     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 option 81      
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 equivalents 13,005     (13,016 )
Cash and cash equivalents, beginning of period 85,086     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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Source: Shenandoah Telecommunications Co

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