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 20, 2015
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 20, 2015 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
99.1 Press release dated January 20, 2015
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 20, 2015
(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 2014 Year End Customer Results; Company Reports Strong Customer Net Adds in Q4
EDINBURG, Va., Jan. 20, 2015 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company ("Shentel") (Nasdaq:SHEN) announces 2014 year end customer results.
Wireless Segment
The Company announced that net postpaid subscriber additions for fiscal year 2014 were 14,146, an increase of 30.6% from 10,829 in 2013. Year-end postpaid customers increased 5.2% to 287,867. The Company's 2014 annual postpaid churn rate was 1.76%. Net postpaid subscriber additions totaled 4,891 in the fourth quarter of 2014, compared to a record 6,054 for the fourth quarter of 2013. Shentel's postpaid churn rate in the fourth quarter was 1.92%, compared to 1.69% in the same quarter last year.
The Company recorded prepaid net additions of 5,036 in the fourth quarter of 2014, up from 4,378 in the 2013 fourth quarter, and 8,115 for fiscal 2014, down from 8,870 in fiscal 2013. Ending prepaid customers increased 5.9% to 145,162 in 2014. Shentel had prepaid customer churn of 4.02% for the fourth quarter and 4.00% for the year.
The following tables show selected operating statistics of the Wireless segment as of the dates shown:
| December 31, | December 31, | |
| 2014 | 2013 | |
| Retail PCS Subscribers - Postpaid | 287,867 | 273,721 |
| Retail PCS Subscribers - Prepaid | 145,162 | 137,047 |
| Three Months Ended | Twelve Months Ended | |||
| December 31, | December 31, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Gross PCS Subscriber Additions - Postpaid | 21,313 | 19,796 | 72,891 | 66,558 |
| Net PCS Subscriber Additions - Postpaid | 4,891 | 6,054 | 14,146 | 10,829 |
| Gross PCS Subscriber Additions - Prepaid | 22,155 | 19,115 | 74,838 | 76,416 |
| Net PCS Subscriber Additions - Prepaid | 5,036 | 4,378 | 8,115 | 8,870 |
| PCS Average Monthly Retail Churn % - Postpaid | 1.92% | 1.69% | 1.76% | 1.75% |
| PCS Average Monthly Retail Churn % - Prepaid | 4.02% | 3.65% | 4.00% | 4.24% |
While the Company experienced strong wireless customer growth, discounting is currently prevalent, resulting in declining monthly service fees per customer. These reduced fees, to date, have been offset by reduced handset subsidies as a result of customers choosing to finance handsets under equipment installment billing plans. Further pricing reductions, as well as changes in the ratio of new customers without handset subsidies relative to existing customers at lower monthly billing rates, could result in a modest reduction in our net operating margin.
Cable Segment
Shentel's cable net Revenue Generating Units (RGUs) increased 34.5% to 7,876 for fiscal year 2014. Year-end cable RGUs increased 6.9% to 121,716. Fourth quarter 2014 cable net additions were 1,250, compared to 1,533 cable net additions in the fourth quarter of 2013.
The following tables show selected operating statistics of the Cable segment as of the dates shown:
| December 31, | December 31, | |
| 2014 | 2013 | |
| Video RGUs | 52,095 | 53,076 |
| High-speed Internet RGUs | 51,359 | 45,776 |
| Voice RGUs | 18,262 | 14,988 |
| Total RGUs | 121,716 | 113,840 |
| Three Months Ended | Twelve Months Ended | |||
| December 31, | December 31, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Gross RGU Additions | 9,144 | 8,595 | 39,402 | 34,991 |
| Net RGU Additions | 1,250 | 1,533 | 7,876 | 5,757 |
Additional Information
The following table shows additional selected statistics as of the dates shown:
| December 31, | December 31, | |
| 2014 | 2013 | |
| Local access lines | 21,573 | 22,060 |
| DSL subscribers | 12,694 | 12,585 |
| Wireless cell site towers owned | 154 | 153 |
| Fiber route miles | 4,390 | 4,088 |
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