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 19, 2016
Shenandoah Telecommunications Company
(Exact Name of Registrant as Specified in Charter)
| Virginia | 000-09881 | 54-1162807 |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
| 500 Shentel Way P.O. Box 459, Edinburg, Virginia 22824 |
| (Address of Principal Executive Offices) (Zip Code) |
(540) 984-4141
(Registrant's telephone number, including area code)
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: | ||
| [ ] | 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 19, 2016, 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.
Exhibit 99.1. Press release dated January 19, 2016
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 | ||
| Date: January 19, 2016 | By: | /s/ Adele M. Skolits |
| Name: Adele M. Skolits | ||
| Title: Vice President - Finance and Chief Financial Officer (Duly Authorized Officer) | ||
EXHIBIT 99.1
Shenandoah Telecommunications Company Announces Strong 2015 Year End Customer Results
- Record Postpaid Wireless Net Additions in Fourth Quarter
- Improved Churn for Both Fourth Quarter and the Year
EDINBURG, Va., Jan. 19, 2016 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel”) (NASDAQ:SHEN) announces 2015 year end customer results.
Wireless Segment
The Company announced that net postpaid subscriber additions for fiscal year 2015 were 24,645, an increase of 74.2% from 14,146 in 2014. Year-end postpaid customers increased 8.6% to 312,512. The Company’s 2015 annual postpaid churn rate was 1.47%. Net postpaid subscriber additions totaled a record 8,985 in the fourth quarter of 2015, compared to 4,891 for the fourth quarter of 2014. Shentel’s postpaid churn rate in the fourth quarter was 1.48%, compared to 1.92% in the same quarter last year.
The Company recorded prepaid net deactivations of 2,264 in the fourth quarter of 2015, as compared to 5,036 net activations in the 2014 fourth quarter, and 2,322 net deactivations for fiscal 2015, as compared to 8,115 net activations in fiscal 2014. Prepaid customers decreased 1.6% to 142,840 in 2015. While the overall total of prepaid subscribers decreased during 2015, the Company’s more profitable product lines continued to add customers, with customer decreases concentrated in its least profitable product lines.
The following tables show selected operating statistics of the Wireless segment as of the dates shown:
| December 31, | December 31, | |
| 2015 | 2014 | |
| Retail PCS Subscribers - Postpaid | 312,512 | 287,867 |
| Retail PCS Subscribers - Prepaid | 142,840 | 145,162 |
| Three Months Ended | Twelve Months Ended | |||||||||||
| December 31, | December 31, | |||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Gross PCS Subscriber Additions - Postpaid | 22,590 | 21,313 | 77,067 | 72,891 | ||||||||
| Net PCS Subscriber Additions - Postpaid | 8,985 | 4,891 | 24,645 | 14,146 | ||||||||
| Gross PCS Subscriber Additions - Prepaid | 19,990 | 22,155 | 83,796 | 74,838 | ||||||||
| Net PCS Subscriber Additions - Prepaid | (2,264 | ) | 5,036 | (2,322 | ) | 8,115 | ||||||
| PCS Average Monthly Retail Churn % - Postpaid | 1.48 | % | 1.92 | % | 1.47 | % | 1.76 | % | ||||
| PCS Average Monthly Retail Churn % - Prepaid | 5.16 | % | 4.02 | % | 4.93 | % | 4.00 | % | ||||
President and CEO Christopher E. French commented, “We are particularly encouraged by the growth in our postpaid customer additions for the year, especially the record postpaid additions in the fourth quarter. In addition to our organic growth, our acquisition of nTelos is expected to more than double Shentel’s wireless customer base by enhancing our presence in the Mid-Atlantic region through the addition of a highly complementary footprint.”
Cable Segment
Shentel Cable’s net additions to Revenue Generating Units (RGUs) decreased to 4,355 in fiscal year 2015 from 7,876 for fiscal year 2014. Year-end cable RGUs increased 3.6% to 126,071. Fourth quarter 2015 cable net additions were 889, compared to 1,250 cable net additions in the fourth quarter of 2014.
The following tables show selected operating statistics of the Cable segment as of the dates shown:
| December 31, | December 31, | |
| 2015 | 2014 | |
| Video RGUs | 50,215 | 52,095 |
| High-speed Internet RGUs | 55,690 | 51,359 |
| Voice RGUs | 20,166 | 18,262 |
| Total RGUs | 126,071 | 121,716 |
| Three Months Ended | Twelve Months Ended | |||
| December 31, | December 31, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Gross RGU Additions | 8,856 | 9,144 | 39,196 | 39,402 |
| Net RGU Additions | 889 | 1,250 | 4,355 | 7,876 |
Additional Information
The following table shows additional selected statistics as of the dates shown:
| December 31, | December 31, | |
| 2015 | 2014 | |
| Local access lines | 20,252 | 21,612 |
| DSL subscribers | 13,086 | 12,742 |
| Wireless cell site towers owned | 154 | 154 |
| Fiber route miles | 4,580 | 4,390 |
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.
CONTACTS:
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