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) July 31, 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 July 31, 2015, the Company issued a press release reporting results for the three and six months ended June 30, 2015. 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 July 31, 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) |
||
| July 31, 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 Reports 22% Increase in Second Quarter 2015 Net Income to $10.5 Million
Revenues Increase 5.3% Driven by Wireless and Cable Customer Growth
EDINBURG, Va., July 31, 2015 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company ("Shentel") (NASDAQ:SHEN) announces financial and operating results for the three and six months ended June 30, 2015.
Consolidated Second Quarter Results
For the quarter ended June 30, 2015, net income was $10.5 million compared to $8.6 million in the second quarter of 2014 due to continued growth in the Wireless and Cable segments. Operating income was $18.8 million, up 18.7% from the same quarter last year.
Adjusted OIBDA (Operating Income Before Depreciation and Amortization) increased 12.7% to $37.2 million in the second quarter of 2015 from $33.0 million in the second quarter of 2014. Total revenues were $85.7 million, an increase of 5.3% compared to $81.4 million for the 2014 second quarter. Wireless revenues increased primarily as a result of growth in wireless subscribers, while Wireline segment revenues increased due to new fiber contracts. Cable segment revenues increased due to an increase in Revenue Generating Units (RGUs) and improved product mix, with customers selecting higher-priced digital TV and higher-speed data packages. Total operating expenses were $67.0 million in the second quarter of 2015 compared to $65.6 million in the prior year period.
President and CEO Christopher E. French commented, "Our upgraded wireless and cable networks continue to appeal to new customers and existing customers who are subscribing to more offerings, which resulted in solid revenue growth and improved profitability in the second quarter. Increasingly, consumers expect reliable wireless coverage in any setting, and demand high speed broadband offerings and we're pleased that our state-of-the-art service networks are meeting their needs. Our balance sheet is strong, positioning us well for continued organic growth while providing us the flexibility to explore expansion opportunities."
Wireless Segment
Service revenues in the Wireless segment increased 1.8% to $48.7 million as compared to the second quarter of 2014. Postpaid service revenues decreased $0.4 million despite 6.4% growth in average customers, which was offset by lower service revenues primarily from customers selecting leasing and installment billing programs for handsets. During the second quarter, net prepaid service revenues grew $1.2 million, or 11.1%, due primarily to a 6.3% growth in average prepaid customers and improved product mix as compared to the same period of 2014.
During the second quarter of 2015, net additions to postpaid subscribers were 5,414, up 104% compared to 2,648 postpaid subscriber additions in the second quarter of 2014. Net prepaid subscribers declined 2,352 during second quarter 2015, compared to a decline of 361 in the second quarter of 2014.
Second quarter operating expenses in the Wireless segment decreased $0.8 million overall, primarily due to lower postpaid handset costs as more customers finance their handsets through Sprint.
Second quarter adjusted OIBDA in the Wireless segment was $28.0 million, an increase of $2.2 million or 8.6% from the second quarter of 2014.
"Our ability to couple our regional advertising efforts with Sprint's national outreach allows us to effectively market the advantages of our leading edge network and our local customer service capabilities, which resulted in significant additions to our postpaid customer base this quarter," Mr. French stated. "However, we continue to see a downward trend in monthly service fees as customers choose lower revenue service plans related to handset financing and leasing plans."
Cable Segment
Revenue in the Cable segment increased $3.3 million or 15.9% to $24.2 million, due to 6.2% growth in average RGUs (the sum of voice, data, and video users), video rate increases, and customers selecting higher speed data access packages and higher priced digital TV services. Operating expenses increased by $1.7 million in second quarter 2015 over second quarter 2014.
Revenue generating units totaled 123,390 at the end of the second quarter of 2015, an increase of 6.2% over June 30, 2014.
Adjusted OIBDA in the Cable segment for second quarter 2015 was $5.7 million, up 46% from $3.9 million in the second quarter of 2014.
Mr. French stated, "Demand for our high speed internet and voice services remained strong in the quarter, outpacing the anticipated decrease in video subscribers. We are seeing increasing market recognition of our ability to provide high speed and reliability as reflected in new customer growth and the conversion of existing customers to upgraded service offerings and monthly subscription plans."
Wireline Segment
Operating income for the Wireline segment was $4.0 million as compared to $3.8 million in second quarter 2014. Access lines at June 30, 2015, were 21,615 compared to 21,842 at June 30, 2014. Carrier access and fiber revenue for the quarter was $10.2 million, a 5.3% increase from $9.6 million for the same quarter last year, due to growth in new fiber contracts.
Adjusted OIBDA for the Wireline segment for second quarter 2015 was $7.3 million, as compared to $6.5 million in second quarter 2014.
Other Information
Capital expenditures were $15.6 million in both the second quarter of 2015 and the comparable 2014 period.
Cash and cash equivalents as of June 30, 2015 were $92.1 million, compared to $68.9 million at December 31, 2014. Total outstanding debt at June 30, 2015 totaled $212.8 million compared to $230.0 million last year. The Company began making quarterly principal payments of $5.75 million on its debt in December 2014. At June 30, 2015, debt as a percent of total assets was 34.2%. The amount available to the Company through its revolver facility was $50 million as of June 30, 2015.
"Our solid balance sheet improved further during the quarter, providing improved liquidity and the flexibility for the continued growth of our customer base, capabilities and service offerings," Mr. French concluded.
Conference Call and Webcast
The Company will host a conference call and simultaneous webcast today, Friday, July 31, 2015, at 10 A.M. Eastern Time.
Teleconference Information:
Friday, July 31, 2015, 10:00 A.M. (ET)
Dial in number: 1-888-695-7639
Password: 92900543
Audio webcast: http://investor.shentel.com/
An audio replay of the call will be available approximately one hour after the call is complete, through August 9, 2015 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 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.
| SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES | ||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (in thousands) | ||
|
June 30, 2015 |
December 31, 2014 |
|
| Cash and cash equivalents | $ 92,137 | $ 68,917 |
| Other current assets | 42,265 | 59,407 |
| Total current assets | 134,402 | 128,324 |
| Investments | 10,526 | 10,089 |
| Net property, plant and equipment | 402,877 | 405,907 |
| Intangible assets, net | 67,535 | 68,260 |
| Deferred charges and other assets, net | 6,917 | 6,662 |
| Total assets | $ 622,257 | $ 619,242 |
| Total current liabilities | 55,688 | 59,154 |
| Long-term debt, less current maturities | 189,750 | 201,250 |
| Total other liabilities | 97,102 | 100,492 |
| Total shareholders' equity | 279,717 | 258,346 |
| Total liabilities and shareholders' equity | $ 622,257 | $ 619,242 |
| SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES | ||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||
| (in thousands, except per share amounts) | ||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||
| 2015 | 2014 | 2015 | 2014 | |
| Operating revenues | $ 85,701 | $ 81,416 | $ 169,989 | $ 161,868 |
| Operating expenses: | ||||
| Cost of goods and services | 30,280 | 32,403 | 60,970 | 64,639 |
| Selling, general and administrative | 19,008 | 16,625 | 37,742 | 33,773 |
| Depreciation and amortization | 17,663 | 16,595 | 34,001 | 31,983 |
| Total operating expenses | 66,951 | 65,623 | 132,713 | 130,395 |
| Operating income | 18,750 | 15,793 | 37,276 | 31,473 |
| Other income (expense): | ||||
| Interest expense | (1,940) | (2,065) | (3,855) | (4,112) |
| Gain (loss) on investments, net | 98 | 114 | 200 | 96 |
| Non-operating income, net | 442 | 459 | 874 | 1,086 |
| Income before income taxes | 17,350 | 14,301 | 34,495 | 28,543 |
| Income tax expense | 6,876 | 5,686 | 13,735 | 11,312 |
| Net income | $ 10,474 | $ 8,615 | $ 20,760 | $ 17,231 |
| Earnings per share: | ||||
| Basic | $ 0.43 | $ 0.36 | $ 0.86 | $ 0.72 |
| Diluted | $ 0.43 | $ 0.35 | $ 0.85 | $ 0.71 |
| Weighted average shares outstanding, basic | 24,190 | 24,102 | 24,172 | 24,080 |
| Weighted average shares outstanding, diluted | 24,502 | 24,320 | 24,463 | 24,271 |
Non-GAAP Financial Measure
In managing our business and assessing our financial performance, management supplements the information provided by financial statement measures prepared in accordance with GAAP with adjusted OIBDA, which is considered a "non-GAAP financial measure" under SEC rules.
Adjusted OIBDA is defined by us as operating income (loss) before depreciation and amortization, adjusted to exclude the effects of: certain non-recurring transactions; impairment of assets; gains and losses on asset sales; and share based compensation expense. Adjusted OIBDA should not be construed as an alternative to operating income as determined in accordance with GAAP as a measure of operating performance.
In a capital-intensive industry such as telecommunications, management believes that adjusted OIBDA and the associated percentage margin calculations are meaningful measures of our operating performance. We use adjusted OIBDA as a supplemental performance measure because management believes it facilitates comparisons of our operating performance from period to period and comparisons of our operating performance to that of other companies by excluding potential differences caused by the age and book depreciation of fixed assets (affecting relative depreciation expenses) as well as the other items described above for which additional adjustments were made. In the future, management expects that the Company may again report adjusted OIBDA excluding these items and may incur expenses similar to these excluded items. Accordingly, the exclusion of these and other similar items from our non-GAAP presentation should not be interpreted as implying these items are non-recurring, infrequent or unusual.
While depreciation and amortization are considered operating costs under generally accepted accounting principles, these expenses primarily represent the current period allocation of costs associated with long-lived assets acquired or constructed in prior periods, and accordingly may obscure underlying operating trends for some purposes. By isolating the effects of these expenses and other items that vary from period to period without any correlation to our underlying performance, or that vary widely among similar companies, management believes adjusted OIBDA facilitates internal comparisons of our historical operating performance, which are used by management for business planning purposes, and also facilitates comparisons of our performance relative to that of our competitors. In addition, we believe that adjusted OIBDA and similar measures are widely used by investors and financial analysts as measures of our financial performance over time, and to compare our financial performance with that of other companies in our industry.
Adjusted OIBDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. These limitations include the following:
- it does not reflect capital expenditures;
- many of the assets being depreciated and amortized will have to be replaced in the future and adjusted OIBDA does not reflect cash requirements for such replacements;
- it does not reflect costs associated with share-based awards exchanged for employee services;
- it does not reflect interest expense necessary to service interest or principal payments on indebtedness;
- it does not reflect gains, losses or dividends on investments;
- it does not reflect expenses incurred for the payment of income taxes; and
- other companies, including companies in our industry, may calculate adjusted OIBDA differently than we do, limiting its usefulness as a comparative measure.
In light of these limitations, management considers adjusted OIBDA as a financial performance measure that supplements but does not replace the information reflected in our GAAP results.
The following table shows adjusted OIBDA for the three and six months ended June 30, 2015 and 2014:
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||
| (in thousands) | 2015 | 2014 | 2015 | 2014 |
| Adjusted OIBDA | $ 37,239 | $ 33,043 | $ 72,934 | $ 64,703 |
The following table reconciles adjusted OIBDA to operating income, which we consider to be the most directly comparable GAAP financial measure, for the three and six months ended June 30, 2015 and 2014:
|
Consolidated: |
Three Months Ended June 30, |
Six Months Ended June 30, |
||
| (in thousands) | 2015 | 2014 | 2015 | 2014 |
| Operating income | $ 18,750 | $ 15,793 | $ 37,276 | $ 31,473 |
| Plus depreciation and amortization | 17,663 | 16,595 | 34,001 | 31,983 |
| Plus (gain) loss on asset sales | 218 | 123 | 227 | (313) |
| Plus share based compensation expense | 608 | 532 | 1,430 | 1,560 |
| Adjusted OIBDA | $ 37,239 | $ 33,043 | $ 72,934 | $ 64,703 |
The following tables reconcile adjusted OIBDA to operating income by major segment for the three and six months ended June 30, 2015 and 2014:
|
Wireless Segment: |
Three Months Ended June 30, |
Six Months Ended June 30, |
||
| (in thousands) | 2015 | 2014 | 2015 | 2014 |
| Operating income | $ 19,270 | $ 17,571 | $ 38,708 | $ 34,364 |
| Plus depreciation and amortization | 8,612 | 8,071 | 16,444 | 15,268 |
| Plus (gain) loss on asset sales | 8 | 59 | 33 | (293) |
| Plus share based compensation expense | 143 | 112 | 334 | 328 |
| Adjusted OIBDA | $ 28,033 | $ 25,813 | $ 55,519 | $ 49,667 |
|
Cable Segment: |
Three Months Ended June 30, |
Six Months Ended June 30, |
||
| (in thousands) | 2015 | 2014 | 2015 | 2014 |
| Operating loss | $ (425) | $ (2,085) | $ (1,102) | $ (4,045) |
| Plus depreciation and amortization | 5,859 | 5,766 | 11,338 | 11,170 |
| Plus loss on asset sales | 65 | 39 | 52 | 16 |
| Plus share based compensation expense | 217 | 196 | 504 | 584 |
| Adjusted OIBDA | $ 5,716 | $ 3,916 | $ 10,792 | $ 7,725 |
|
Wireline Segment: |
Three Months Ended June 30, |
Six Months Ended June 30, |
||
| (in thousands) | 2015 | 2014 | 2015 | 2014 |
| Operating income | $ 3,967 | $ 3,761 | $ 7,796 | $ 8,113 |
| Plus depreciation and amortization | 3,083 | 2,653 | 6,007 | 5,350 |
| Plus loss on asset sales | 125 | 26 | 134 | 35 |
| Plus share based compensation expense | 106 | 102 | 246 | 280 |
| Adjusted OIBDA | $ 7,281 | $ 6,542 | $ 14,183 | $ 13,778 |
Supplemental Information
Subscriber Statistics
The following tables show selected operating statistics of the Wireless segment as of the dates shown:
|
June 30, |
December 31, |
June 30, |
December 31, |
|
| 2015 | 2014 | 2014 | 2013 | |
| Retail PCS Subscribers - Postpaid | 296,492 | 287,867 | 277,673 | 273,721 |
| Retail PCS Subscribers - Prepaid | 145,431 | 145,162 | 138,176 | 137,047 |
| PCS Market POPS (000) (1) | 2,421 | 2,415 | 2,406 | 2,397 |
| PCS Covered POPS (000) (1) | 2,213 | 2,207 | 2,100 | 2,067 |
| CDMA Base Stations (sites) | 546 | 537 | 528 | 526 |
| Towers Owned | 154 | 154 | 154 | 153 |
| Non-affiliate cell site leases (2) | 202 | 198 | 195 | 217 |
| Three Months Ended | Six Months Ended | |||
| June 30, | June 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Gross PCS Subscriber Additions - Postpaid | 17,734 | 15,898 | 34,839 | 31,483 |
| Net PCS Subscriber Additions - Postpaid | 5,414 | 2,648 | 8,625 | 3,952 |
| Gross PCS Subscriber Additions - Prepaid | 19,958 | 15,286 | 43,578 | 34,485 |
| Net PCS Subscriber Additions (Losses) - Prepaid | (2,352) | (361) | 269 | 1,129 |
| PCS Average Monthly Retail Churn % - Postpaid (3) | 1.40% | 1.60% | 1.50% | 1.67% |
| PCS Average Monthly Retail Churn % - Prepaid (3) | 5.07% | 3.78% | 4.92% | 4.03% |
| 1) POPS refers to the estimated population of a given geographic area and is based on information purchased from third party sources. Market POPS are those within a market area which the Company is authorized to serve under its Sprint PCS affiliate agreements, and Covered POPS are those covered by the Company's network. | ||||
| 2) The decreases during 2014 resulted from termination of Sprint iDEN leases associated with the former Nextel network. | ||||
| 3) PCS Average Monthly Retail Churn is the average of the monthly subscriber turnover, or churn, calculations for the period. | ||||
The following table shows selected operating statistics of the Wireline segment as of the dates shown:
|
June 30, |
Dec. 31, |
June 30, |
Dec. 31, |
|
| 2015 | 2014 | 2014 | 2013 | |
| Telephone Access Lines | 21,615 | 21,612 | 21,842 | 22,106 |
| Long Distance Subscribers | 9,560 | 9,571 | 9,730 | 9,851 |
| Video Customers | 5,473 | 5,692 | 5,904 | 6,342 |
| DSL Subscribers | 12,856 | 12,742 | 12,707 | 12,632 |
| Fiber Route Miles | 1,590 | 1,556 | 1,455 | 1,452 |
| Total Fiber Miles (1) | 102,821 | 99,387 | 85,348 | 84,600 |
|
1. 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. Fiber counts were revised following a review of fiber records in the first quarter of 2015. |
||||
The following table shows selected operating statistics of the Cable segment as of the dates shown:
| June 30, | December 31, | June 30, | December 31, | |
| 2015 | 2014 | 2014 | 2013 | |
| Homes Passed (1) | 172,144 | 171,589 | 171,147 | 170,470 |
| Customer Relationships (2) | ||||
| Video customers | 48,659 | 49,247 | 50,159 | 51,197 |
| Non-video customers | 22,810 | 22,051 | 19,730 | 18,341 |
| Total customer relationships | 71,469 | 71,298 | 69,889 | 69,538 |
| Video | ||||
| Customers (3) | 50,892 | 52,095 | 51,699 | 53,076 |
| Penetration (4) | 29.6% | 30.4% | 30.2% | 31.1% |
| Digital video penetration (5) | 73.8% | 65.9% | 63.6% | 49.2% |
| High-speed Internet | ||||
| Available Homes (6) | 172,144 | 171,589 | 168,923 | 168,255 |
| Customers (3) | 53,097 | 51,359 | 48,096 | 45,776 |
| Penetration (4) | 30.8% | 29.9% | 28.5% | 27.2% |
| Voice | ||||
| Available Homes (6) | 169,407 | 168,852 | 166,186 | 163,282 |
| Customers (3) | 19,401 | 18,262 | 16,426 | 14,988 |
| Penetration (4) | 11.5% | 10.8% | 9.9% | 9.2% |
| Total Revenue Generating Units (7) | 123,390 | 121,716 | 116,221 | 113,840 |
| Fiber Route Miles | 2,839 | 2,834 | 2,463 | 2,636 |
| Total Fiber Miles (8) | 73,735 | 72,694 | 70,772 | 69,296 |
| 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. | ||||
| 2) Customer relationships represent the number of 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, 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 customers by the number of homes passed or available homes, as appropriate. | ||||
| 5) Digital video penetration is calculated by dividing the number of digital video customers by total video customers. Digital video customers 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 customer. | ||||
| 6) Homes and businesses are considered available ("available homes") if we can connect them to our distribution system without further extending the transmission lines and if we offer the service in that area. | ||||
| 7) Revenue generating units are the sum of video, voice and high-speed internet customers. | ||||
| 8) 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. | ||||
Segment Information
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision makers. The Company has three reportable segments, which the Company operates and manages as strategic business units organized by lines of business: (1) Wireless, (2) Cable, and (3) Wireline. A fourth segment, Other, primarily includes Shenandoah Telecommunications Company, the parent holding company.
The Wireless segment provides digital wireless service to a portion of a four-state area covering the region from Harrisburg, York and Altoona, Pennsylvania, to Harrisonburg, Virginia, as a Sprint PCS Affiliate. This segment also owns cell site towers built on leased land, and leases space on these towers to both affiliates and non-affiliated service providers.
The Cable segment provides video, internet and voice services in Virginia, West Virginia and Maryland, and leases fiber optic facilities throughout southern Virginia and West Virginia. It does not include video, internet and voice services provided to customers in Shenandoah County, Virginia.
The Wireline segment provides regulated and unregulated voice services, DSL internet access, and long distance access services throughout Shenandoah County and portions of Rockingham, Frederick, Warren and Augusta counties, Virginia. The segment also provides video services in portions of Shenandoah County, and leases fiber optic facilities throughout the northern Shenandoah Valley of Virginia, northern Virginia and adjacent areas along the Interstate 81 corridor through West Virginia, Maryland and portions of Pennsylvania.
| Three months ended June 30, 2015 | ||||||
| (in thousands) | ||||||
| Wireless | Cable | Wireline | Other | Eliminations |
Consolidated Totals |
|
| External revenues | ||||||
| Service revenues | $ 48,749 | $ 22,117 | $ 4,889 | $ -- | $ -- | $ 75,755 |
| Other | 2,848 | 1,850 | 5,248 | -- | -- | 9,946 |
| Total external revenues | 51,597 | 23,967 | 10,137 | -- | -- | 85,701 |
| Internal revenues | 1,105 | 186 | 6,326 | -- | (7,617) | -- |
| Total operating revenues | 52,702 | 24,153 | 16,463 | -- | (7,617) | 85,701 |
| Operating expenses | ||||||
| Costs of goods and services, exclusive of depreciation and amortization shown separately below | 15,903 | 13,635 | 7,677 | (16) | (6,919) | 30,280 |
| Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 8,917 | 5,084 | 1,736 | 3,969 | (698) | 19,008 |
| Depreciation and amortization | 8,612 | 5,859 | 3,083 | 109 | -- | 17,663 |
| Total operating expenses | 33,432 | 24,578 | 12,496 | 4,062 | (7,617) | 66,951 |
| Operating income (loss) | $ 19,270 | $ (425) | $ 3,967 | $ (4,062) | $ -- | $ 18,750 |
| Three months ended June 30, 2014 | ||||||
| (in thousands) | ||||||
| Wireless | Cable(1) | Wireline(1) | Other | Eliminations |
Consolidated Totals |
|
| External revenues | ||||||
| Service revenues | $ 47,868 | $ 18,981 | $ 4,795 | $ -- | $ -- | $ 71,644 |
| Other | 2,813 | 1,823 | 5,136 | -- | -- | 9,772 |
| Total external revenues | 50,681 | 20,804 | 9,931 | -- | -- | 81,416 |
| Internal revenues | 1,094 | 33 | 5,713 | -- | (6,840) | -- |
| Total operating revenues | 51,775 | 20,837 | 15,644 | -- | (6,840) | 81,416 |
| Operating expenses | ||||||
| Costs of goods and services, exclusive of depreciation and amortization shown separately below | 18,476 | 12,421 | 7,737 | -- | (6,231) | 32,403 |
| Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 7,657 | 4,735 | 1,493 | 3,349 | (609) | 16,625 |
| Depreciation and amortization | 8,071 | 5,766 | 2,653 | 105 | -- | 16,595 |
| Total operating expenses | 34,204 | 22,922 | 11,883 | 3,454 | (6,840) | 65,623 |
| Operating income (loss) | 17,571 | (2,085) | 3,761 | (3,454) | -- | 15,793 |
|
Six months ended June 30, 2015 (in thousands) |
Wireless |
Cable |
Wireline |
Other |
Eliminations |
Consolidated Totals |
| External revenues | ||||||
| Service revenues | $ 97,124 | $ 43,518 | $ 9,639 | $ -- | $ -- | $ 150,281 |
| Other | 5,878 | 3,613 | 10,217 | -- | -- | 19,708 |
| Total external revenues | 103,002 | 47,131 | 19,856 | -- | -- | 169,989 |
| Internal revenues | 2,209 | 334 | 12,192 | -- | (14,735) | -- |
| Total operating revenues | 105,211 | 47,465 | 32,048 | -- | (14,735) | 169,989 |
| Operating expenses | ||||||
| Costs of goods and services, exclusive of depreciation and amortization shown separately below | 32,090 | 27,253 | 15,011 | -- | (13,384) | 60,970 |
| Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 17,969 | 9,976 | 3,234 | 7,914 | (1,351) | 37,742 |
| Depreciation and amortization | 16,444 | 11,338 | 6,007 | 212 | -- | 34,001 |
| Total operating expenses | 66,503 | 48,567 | 24,252 | 8,126 | (14,735) | 132,713 |
| Operating income (loss) | 38,708 | (1,102) | 7,796 | (8,126) | -- | 37,276 |
|
Six months ended June 30, 2014 (in thousands) |
Wireless |
Cable(1) |
Wireline(1) |
Other |
Eliminations |
Consolidated Totals |
| External revenues | ||||||
| Service revenues | $ 95,100 | $ 37,855 | $ 9,515 | $ -- | $ -- | $ 142,470 |
| Other | 5,569 | 3,403 | 10,426 | -- | -- | 19,398 |
| Total external revenues | 100,669 | 41,258 | 19,941 | -- | -- | 161,868 |
| Internal revenues | 2,184 | 59 | 11,478 | -- | (13,721) | -- |
| Total operating revenues | 102,853 | 41,317 | 31,419 | -- | (13,721) | 161,868 |
| Operating expenses | ||||||
| Costs of goods and services, exclusive of depreciation and amortization shown separately below | 37,132 | 24,811 | 15,219 | -- | (12,523) | 64,639 |
| Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 16,089 | 9,381 | 2,737 | 6,764 | (1,198) | 33,773 |
| Depreciation and amortization | 15,268 | 11,170 | 5,350 | 195 | -- | 31,983 |
| Total operating expenses | 68,489 | 45,362 | 23,306 | 6,959 | (13,721) | 130,395 |
| Operating income (loss) | 34,364 | (4,045) | 8,113 | (6,959) | -- | 31,473 |
|
(1) Prior year service and other revenue amounts have been recast to conform to the current year presentation of video and internet equipment revenues being included in service revenue rather than other revenue. |
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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