UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 28, 2014
Shenandoah Telecommunications Company
(Exact name of registrant as specified in its charter)
Virginia |
000-09881 |
54-1162807 |
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
500 Shentel Way P.O. Box 459 Edinburg, VA |
22824 |
| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (540) 984-4141
Not applicable
(Former name or former address, if changed since last report)
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
|
||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Item 2.02. Results of Operations and Financial Condition.
On January 28, 2014, the Company issued a press release reporting net adds and ending subscriber counts as of and for the three months ended December 31, 2013, as well as expectations for capital expenditures for fiscal 2014. A copy of the press release is included as Exhibit 99.1 to this report.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
99.1 Press release dated January 28, 2014
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Shenandoah Telecommunications Company
(Registrant) |
||
| January 28, 2014
(Date) |
/s/ ADELE M. SKOLITS
Adele M. Skolits Vice President - Finance and Chief Financial Officer (Duly Authorized Officer) |
EXHIBIT 99.1
Shenandoah Telecommunications Company Announces 2013 Year End Customer Results; Company Adds Record Postpaid Wireless Customers in Q4
Company Also Announces Reduced 2014 CAPEX Budget Due to Completion of 4G LTE and Cable Upgrades
EDINBURG, Va., Jan. 28, 2014 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company ("Shentel") (Nasdaq:SHEN) announces 2013 year end customer results and projected capital expenditure budget for fiscal year 2014.
Wireless Segment
The Company announced that net postpaid subscriber additions increased 50.4% to a record 6,054 for the fourth quarter primarily due to an aggressive customer acquisition campaign and reduced churn as a result of the Company's recently completed 4G LTE upgrade. Net postpaid subscriber additions for fiscal year 2013 were 10,829. Shentel's postpaid churn rate in the fourth quarter was 1.69% compared to 1.87% in the same quarter last year. Year-end postpaid customers increased 4.1% to 273,721. The Company's 2013 annual postpaid churn rate was 1.75%.
The Company recorded prepaid net additions of 4,378 in the fourth quarter and 8,870 in fiscal 2013. Ending prepaid customers increased 6.9% to 137,047 in 2013. Shentel had prepaid customer churn of 3.65% for the fourth quarter and 4.24% for the year.
Cable Segment
Shentel's cable net Revenue Generating Units (RGUs) additions were 1,470 in the fourth quarter of 2013. For fiscal year 2013, cable net additions increased 79.0% to 5,384. Year-end cable RGUs increased 4.7% to 120,275.
Capital Expenditure
With the completion of its 4G LTE Network and cable upgrades, the Company anticipates that its fiscal year 2014 capital expenditure will total approximately $74 million. Shentel expects that capital expenditure per segment will break down as follows:
| 2014 Capital Expenditure by Segment | |
| Segment |
Capital Expenditure |
| Wireless | $25.1M |
| Cable | $18.9M |
| Wireline | $22.5M |
| Other | $7.5M |
| Total | $74.0M |
The $74M will be allocated 24% to maintenance CAPEX, 24% to capacity, 30% to network expansion and 22% will be spent only upon the success of obtaining new revenue generating projects.
The 2013 earnings call is scheduled to take place on Friday, February 28th at 8 a.m. EST. Details will be distributed in a separate press release.
About Shenandoah Telecommunications
Shenandoah Telecommunications Company (Shentel) provides a broad range of diversified telecommunications 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 voice; fiber network and services; and local and long distance telephone. Shentel is the exclusive personal communications service ("PCS") Affiliate of Sprint in portions of Pennsylvania, Maryland, Virginia and West Virginia. 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 filings with the SEC. Those factors may include changes in general economic conditions, increases in costs, changes in regulation and other competitive factors.
CONTACT: Shenandoah Telecommunications, Inc.
Adele Skolits
CFO and VP of Finance
540-984-5161
Adele.skolits@emp.shentel.com
Or
John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
203-972-9200
jnesbett@institutionalms.com