Shenandoah Telecommunications Company (“Shentel” or the “Company”)
(Nasdaq: SHEN) announced second quarter 2024 financial and
operating results.
Second Quarter 2024 Highlights
- On April 1, 2024, Shentel completed
its previously announced acquisition of Horizon Acquisition Parent
LLC (“Horizon”) for approximately $385 million, which consisted of
$305 million in cash and 4.1 million shares of Shentel’s common
stock issued to a selling shareholder of Horizon (“Horizon
Transaction”). Cash consideration paid also included purchase price
adjustments for capital expenditure reimbursements and working
capital subject to subsequent adjustments as defined in the merger
agreement. Horizon is a leading commercial fiber provider in Ohio
and adjacent states.
- Glo Fiber Expansion Markets1 added
approximately 5,000 subscribers in the second quarter of 2024. Glo
Fiber Expansion Markets ended the quarter with approximately 53,000
subscribers, including approximately 2,000 acquired from
Horizon.
- Glo Fiber Expansion Markets
passings grew approximately 38,000, including 16,000 acquired from
Horizon, to a total of approximately 298,000.
- Revenue in the second quarter grew
to $85.8 million, up $19.2 million, or 28.7%, compared to the same
period in 2023. The former Horizon markets contributed $16.7
million in revenue. Excluding the former Horizon markets, Glo Fiber
Expansion Markets revenue grew 67% over the same period in
2023.
- Net loss from continuing operations
was $12.8 million in the second quarter of 2024 compared with net
loss from continuing operations of $1.4 million in the second
quarter of 2023. This was due primarily to non-recurring
integration and acquisition expenses and depreciation related to
the Horizon acquisition.
“We made good progress executing our Fiber First
strategy with another solid quarter of Glo Fiber net subscriber
additions and construction of new passings, and integration of our
recent Horizon acquisition with its fiber rich network has gone
well” said President and CEO, Christopher E. French. “Recently
announced acquisitions of Fiber-To-The-Home companies have
re-affirmed our investment thesis for our Glo Fiber line of
business.”
Shentel’s second-quarter earnings conference
call will be webcast at 8:30 a.m. ET on Wednesday, August 7,
2024. The webcast and related materials will be available on
Shentel’s Investor Relations website at
https://investor.shentel.com/.
Second Quarter 2024 Results
- Total Incumbent Broadband Markets2 and Glo Fiber Expansion
Markets broadband data Revenue Generating Units (“RGUs”) as of
June 30, 2024 were 164,566, representing 15.7% year-over-year
growth driven primarily by Glo Fiber. Total Glo Fiber Expansion
Markets passings grew year-over-year by 114,698 to 297,545.
- Revenue in the second quarter of 2024 grew $19.2 million, or
28.7%, to $85.8 million, primarily driven by $16.7 million of
revenue resulting from the acquisition of Horizon. The remaining
$2.5 million in revenue growth is primarily driven by a $4.2
million, or 8.0%, increase in Residential & Small and Medium
Business (“SMB”) revenue and partially offset by a
$1.2 million, or 11.6%, decrease in Commercial Fiber revenue.
Glo Fiber Expansion Markets was the driver of the Residential &
SMB revenue growth due to a 56.3% increase in broadband data RGUs
and an 8.8% increase in broadband data Average Revenue per User
(“ARPU”). Commercial Fiber revenue decreased as expected due to the
previously disclosed decline in T-Mobile revenue from prior period
backhaul circuit disconnects as part of decommissioning the former
Sprint network.
- Cost of services for the three months ended June 30, 2024
increased approximately $9.8 million, or 39.5%, compared with the
three months ended June 30, 2023, primarily driven by
$8.9 million in cost of services resulting from the
acquisition of Horizon. The remaining $0.9 million increase in cost
of services is attributable to higher inventory and maintenance
costs as the Company continues to expand the Glo Fiber network and
a non-recurring charge related to exiting a planned Glo Fiber
expansion market due to further analysis of projected market
economics.
- Selling, general and administrative expense for the three
months ended June 30, 2024, increased $5.2 million, or 20.8%,
compared with the three months ended June 30, 2023, primarily
driven by $4.1 million of recurring selling, general and
administrative costs acquired from Horizon. The remaining
$1.1 million in incremental selling, general and
administrative expense is primarily attributable to higher
advertising and sales headcount to support the Glo Fiber
expansion.
- Integration and acquisition expense for the three months ended
June 30, 2024 increased $11.0 million compared with the three
months ended June 30, 2023, primarily driven by non-recurring
acquisition-related costs related to the Horizon acquisition and
integration.
- Adjusted EBITDA for the three months ended June 30, 2024
increased to $23.3 million, representing a $3.8 million, or 19.7%,
increase compared with the three months ended June 30, 2023. The
former Horizon markets contributed $3.7 million. Excluding the
former Horizon markets, Adjusted EBITDA grew $0.1 million, or 0.8%,
driven by Glo Fiber growth and partially offset by the previously
disclosed decline in T-Mobile revenue from prior period backhaul
circuit disconnects as part of decommissioning the former Sprint
network and declines in RLEC and Incumbent Cable revenues.
- Depreciation and amortization for the three months ended June
30, 2024, increased $9.7 million, or 61.6%, compared with the three
months ended June 30, 2023, primarily driven by $8.3 million
of depreciation and amortization expense resulting from the
acquisition of Horizon. The remaining increase in depreciation and
amortization expense is attributable to the Company’s expansion of
its Glo Fiber network.
Other Information
- Capital expenditures were $150.9 million for the six months
ended June 30, 2024 compared with $135.3 million in the comparable
2023 period. The $15.7 million increase in capital expenditures was
primarily driven by $9.8 million of capital expenditures in the
former Horizon markets. The remaining $5.9 million increase in
capital expenditures is attributable to increased capital
expenditures for expansion of Glo Fiber Expansion Markets and
government-subsidized markets.
- On April 1, 2024, the Company issued $81 million of 7%
Participating Exchangeable Perpetual Preferred Stock (“Preferred
Stock”).
- On April 1, 2024, the Company amended and upsized its credit
facility by $275 million to a total of $675 million. The additional
financing consisted of $225 million of delay-draw term loans due
June 2028 and $50 million in incremental revolving line of credit
due June 2026.
- As of June 30, 2024, our cash and cash equivalents totaled
$43.8 million.
__________________________1 Glo Fiber Expansion
Markets consists of FTTH passings in greenfield expansion markets
in the Shentel and former Horizon markets.2 Incumbent Broadband
Markets consists of Shentel Incumbent Cable Markets and Horizon
Incumbent Telephone Markets with Fiber-To-The-Home (“FTTH”)
passings.
Earnings Call Webcast
Date: Wednesday,
August 7, 2024Time: 8:30 A.M. (ET)Listen via
Internet: https://investor.shentel.com/For Analysts, please
register to dial-in at this link.
A replay of the call will be available for a
limited time on the Investor Relations page of the Company’s
website.
About Shenandoah
Telecommunications
Shenandoah Telecommunications Company (Shentel)
provides broadband services through its high speed,
state-of-the-art fiber optic and cable networks to residential and
commercial customers in eight contiguous states in the eastern
United States. The Company’s services include: broadband internet,
video, voice, high-speed Ethernet, dark fiber leasing, and managed
network services. The Company owns an extensive regional network
with over 16,000 route miles of fiber. For more information, please
visit www.shentel.com.
This release contains forward-looking statements
about Shentel regarding, among other things, its business strategy,
its prospects and its financial position. These statements can be
identified by the use of forward-looking terminology such as
“believes,” “estimates,” “expects,” “intends,” “may,” “will,”
“plans,” “should,” “could,” or “anticipates” or the negative or
other variation of these or similar words, or by discussions of
strategy or risks and uncertainties. The forward-looking statements
are based upon management’s beliefs, assumptions and current
expectations and may include comments as to Shentel’s beliefs and
expectations as to future events and trends affecting its business
that are necessarily subject to uncertainties, many of which are
outside Shentel’s control. Although management believes that the
expectations reflected in the forward-looking statements are
reasonable, forward-looking statements are not, and should not be
relied upon as, a guarantee of future performance or results, nor
will they necessarily prove to be accurate indications of the times
at which such performance or results will be achieved, and actual
results may differ materially from those contained in or implied by
the forward-looking statements as a result of various factors. A
discussion of other factors that may cause actual results to differ
from management’s projections, forecasts, estimates and
expectations is available in Shentel’s filings with the Securities
and Exchange Commission, including our Annual Report on Form 10-K
for the year ended December 31, 2023 and our Quarterly Reports
on Form 10-Q. Those factors may include, among others, the expected
savings and synergies from the Horizon Transaction may not be
realized or may take longer or cost more than expected to realize,
changes in overall economic conditions including rising inflation,
regulatory requirements, changes in technologies, changes in
competition, demand for our products and services, availability of
labor resources and capital, natural disasters, pandemics and
outbreaks of contagious diseases and other adverse public health
developments, such as COVID-19, and other conditions. The
forward-looking statements included are made only as of the date of
the statement. Shentel undertakes no obligation to revise or update
such statements to reflect current events or circumstances after
the date hereof, or to reflect the occurrence of unanticipated
events, except as required by law.
CONTACTS: Shenandoah Telecommunications
Company Jim Volk Senior Vice President and Chief
Financial Officer 540-984-5168
Jim.Volk@emp.shentel.com
SHENANDOAH TELECOMMUNICATIONS COMPANY AND
SUBSIDIARIES |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE (LOSS) INCOME |
(in thousands, except per share amounts) |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Service revenue and other |
$ |
85,799 |
|
|
$ |
66,644 |
|
|
$ |
155,047 |
|
|
$ |
133,809 |
|
Operating expenses: |
|
|
|
|
|
|
|
Cost of services exclusive of depreciation and amortization |
|
34,541 |
|
|
|
24,753 |
|
|
|
60,526 |
|
|
|
50,183 |
|
Selling, general and administrative |
|
30,239 |
|
|
|
25,041 |
|
|
|
58,217 |
|
|
|
51,069 |
|
Integration and acquisition |
|
11,325 |
|
|
|
301 |
|
|
|
11,943 |
|
|
|
432 |
|
Impairment expense |
|
— |
|
|
|
836 |
|
|
|
— |
|
|
|
1,020 |
|
Depreciation and amortization |
|
25,579 |
|
|
|
15,831 |
|
|
|
43,022 |
|
|
|
30,916 |
|
Total operating expenses |
|
101,684 |
|
|
|
66,762 |
|
|
|
173,708 |
|
|
|
133,620 |
|
Operating (loss) income |
|
(15,885 |
) |
|
|
(118 |
) |
|
|
(18,661 |
) |
|
|
189 |
|
Other (expense) income: |
|
|
|
|
|
|
|
Interest expense |
|
(3,996 |
) |
|
|
(905 |
) |
|
|
(8,072 |
) |
|
|
(1,297 |
) |
Other income, net |
|
1,908 |
|
|
|
1,082 |
|
|
|
3,644 |
|
|
|
2,591 |
|
(Loss) income from continuing operations before income taxes |
|
(17,973 |
) |
|
|
59 |
|
|
|
(23,089 |
) |
|
|
1,483 |
|
Income tax (benefit) expense |
|
(5,200 |
) |
|
|
1,459 |
|
|
|
(6,226 |
) |
|
|
2,141 |
|
Loss from continuing operations |
|
(12,773 |
) |
|
|
(1,400 |
) |
|
|
(16,863 |
) |
|
|
(658 |
) |
Discontinued operations: |
|
|
|
|
|
|
|
(Loss) income from discontinued operations, net of tax |
|
(99 |
) |
|
|
3,190 |
|
|
|
1,882 |
|
|
|
4,514 |
|
Gain on the sale of discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
|
216,805 |
|
|
|
— |
|
Total (loss) income from discontinued operations, net of tax |
|
(99 |
) |
|
|
3,190 |
|
|
|
218,687 |
|
|
|
4,514 |
|
Net (loss) income |
|
(12,872 |
) |
|
|
1,790 |
|
|
|
201,824 |
|
|
|
3,856 |
|
|
|
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
Gain on interest rate hedge, net of tax |
|
143 |
|
|
|
2,127 |
|
|
|
1,737 |
|
|
|
2,127 |
|
Comprehensive (loss) income |
$ |
(12,729 |
) |
|
$ |
3,917 |
|
|
$ |
203,561 |
|
|
$ |
5,983 |
|
|
|
|
|
|
|
|
|
Net (loss) income per share, basic and diluted: |
|
|
|
|
|
|
|
Loss from continuing operations |
$ |
(0.24 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.01 |
) |
(Loss) income from discontinued operations, net of tax |
|
— |
|
|
|
0.07 |
|
|
|
4.16 |
|
|
|
0.09 |
|
Net (loss) income per share |
$ |
(0.24 |
) |
|
$ |
0.04 |
|
|
$ |
3.84 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding, basic and diluted |
|
54,730 |
|
|
|
50,366 |
|
|
|
52,620 |
|
|
|
50,330 |
|
SHENANDOAH TELECOMMUNICATIONS COMPANY AND
SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS |
(in thousands) |
June 30,2024 |
|
December 31,2023 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
43,779 |
|
$ |
139,255 |
Accounts receivable, net of allowance for credit losses of $1,333
and $886, respectively |
|
29,639 |
|
|
19,782 |
Income taxes receivable |
|
5,537 |
|
|
4,691 |
Prepaid expenses and other |
|
20,567 |
|
|
11,782 |
Current assets held for sale |
|
— |
|
|
561 |
Total current assets |
|
99,522 |
|
|
176,071 |
Investments |
|
15,135 |
|
|
13,198 |
Property, plant and equipment, net |
|
1,337,252 |
|
|
850,337 |
Goodwill and intangible assets, net |
|
169,489 |
|
|
81,123 |
Operating lease right-of-use assets |
|
20,444 |
|
|
13,024 |
Deferred charges and other assets |
|
14,491 |
|
|
11,561 |
Non-current assets held for sale |
|
— |
|
|
68,915 |
Total assets |
$ |
1,656,333 |
|
$ |
1,214,229 |
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’
EQUITY |
|
|
|
Current liabilities: |
|
|
|
Current maturities of long-term debt, net of unamortized loan
fees |
$ |
8,726 |
|
$ |
7,095 |
Accounts payable |
|
57,725 |
|
|
53,546 |
Advanced billings and customer deposits |
|
14,928 |
|
|
12,394 |
Accrued compensation |
|
12,308 |
|
|
11,749 |
Current operating lease liabilities |
|
3,138 |
|
|
2,222 |
Accrued liabilities and other |
|
15,264 |
|
|
7,747 |
Current liabilities held for sale |
|
— |
|
|
3,602 |
Total current liabilities |
|
112,089 |
|
|
98,355 |
Long-term debt, less current maturities, net of unamortized loan
fees |
|
288,570 |
|
|
292,804 |
Other long-term liabilities: |
|
|
|
Deferred income taxes |
|
186,305 |
|
|
85,664 |
Benefit plan obligations |
|
4,971 |
|
|
3,943 |
Non-current operating lease liabilities |
|
11,431 |
|
|
7,185 |
Other liabilities |
|
40,505 |
|
|
16,912 |
Non-current liabilities held for sale |
|
— |
|
|
56,696 |
Total other long-term liabilities |
|
243,212 |
|
|
170,400 |
Commitments and contingencies (Note 15) |
|
|
|
Temporary equity: |
|
|
|
Redeemable noncontrolling interest |
|
79,380 |
|
|
— |
Shareholders’ equity: |
|
|
|
Common stock, no par value, authorized 96,000; 54,572 and 50,272
issued and outstanding at June 30, 2024 and December 31, 2023,
respectively |
|
— |
|
|
— |
Additional paid in capital |
|
143,784 |
|
|
66,933 |
Retained earnings |
|
785,893 |
|
|
584,069 |
Accumulated other comprehensive income, net of taxes |
|
3,405 |
|
|
1,668 |
Total shareholders’ equity |
|
933,082 |
|
|
652,670 |
Total liabilities, temporary equity and shareholders’ equity |
$ |
1,656,333 |
|
$ |
1,214,229 |
SHENANDOAH TELECOMMUNICATIONS COMPANY AND
SUBSIDIARIES |
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
|
(in thousands) |
Six Months EndedJune 30, |
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
Net income |
$ |
201,824 |
|
|
$ |
3,856 |
|
Income from discontinued operations, net of tax |
|
218,687 |
|
|
|
4,514 |
|
Loss from continuing operations |
|
(16,863 |
) |
|
|
(658 |
) |
Adjustments to reconcile net income to net cash provided by
operating activities, net of effects of business acquisition |
|
|
|
Depreciation and amortization |
|
43,022 |
|
|
|
30,916 |
|
Stock-based compensation expense, net of amount capitalized |
|
6,236 |
|
|
|
6,320 |
|
Impairment expense |
|
— |
|
|
|
1,020 |
|
Deferred income taxes |
|
(6,226 |
) |
|
|
2,860 |
|
Provision for credit losses |
|
1,266 |
|
|
|
1,141 |
|
Other, net |
|
150 |
|
|
|
(313 |
) |
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
|
965 |
|
|
|
4,499 |
|
Current income taxes |
|
234 |
|
|
|
25,108 |
|
Operating lease assets and liabilities, net |
|
(233 |
) |
|
|
73 |
|
Other assets |
|
(3,354 |
) |
|
|
2,233 |
|
Accounts payable |
|
(1,140 |
) |
|
|
(3,012 |
) |
Other deferrals and accruals |
|
(882 |
) |
|
|
(6,696 |
) |
Net cash provided by operating activities - continuing
operations |
|
23,175 |
|
|
|
63,491 |
|
Net cash (used in) provided by operating activities - discontinued
operations |
|
(5,476 |
) |
|
|
6,309 |
|
Net cash provided by operating activities |
|
17,699 |
|
|
|
69,800 |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
Capital expenditures |
|
(150,914 |
) |
|
|
(135,261 |
) |
Government grants received |
|
7,653 |
|
|
|
110 |
|
Cash disbursed for acquisition, net of cash acquired |
|
(347,411 |
) |
|
|
— |
|
Proceeds from sale of assets and other |
|
1,715 |
|
|
|
508 |
|
Net cash used in investing activities - continuing operations |
|
(488,957 |
) |
|
|
(134,643 |
) |
Net cash provided by (used in) investing activities - discontinued
operations |
|
305,827 |
|
|
|
(1,007 |
) |
Net cash used in investing activities |
|
(183,130 |
) |
|
|
(135,650 |
) |
|
|
|
|
Cash flows from financing activities: |
|
|
|
Principal payments on long-term debt |
|
(2,618 |
) |
|
|
— |
|
Proceeds from credit facility borrowings |
|
— |
|
|
|
50,000 |
|
Payments for debt amendment costs |
|
(4,390 |
) |
|
|
(300 |
) |
Proceeds from the issuance of redeemable noncontrolling interest,
net of financing fees paid |
|
79,380 |
|
|
|
— |
|
Taxes paid for equity award issuances |
|
(1,671 |
) |
|
|
(1,317 |
) |
Payments for financing arrangements and other |
|
(746 |
) |
|
|
(290 |
) |
Net cash provided by financing activities |
|
69,955 |
|
|
|
48,093 |
|
Net decrease in cash and cash equivalents |
|
(95,476 |
) |
|
|
(17,757 |
) |
Cash and cash equivalents, beginning of period |
|
139,255 |
|
|
|
44,061 |
|
Cash and cash equivalents, end of period |
$ |
43,779 |
|
|
$ |
26,304 |
|
|
|
|
|
Supplemental Disclosures of Cash Flow
Information |
|
|
|
Interest paid, net of amounts capitalized |
$ |
(6,526 |
) |
|
$ |
(841 |
) |
Income tax (paid) refunds received, net |
$ |
(7,085 |
) |
|
$ |
25,481 |
|
Non-GAAP Financial
MeasuresAdjusted EBITDA and Adjusted EBITDA
Margin
The Company defines Adjusted EBITDA as net
(loss) income from continuing operations calculated in accordance
with GAAP, adjusted for the impact of depreciation and
amortization, impairment, other income (expense), net, interest
income, interest expense, income tax expense (benefit), stock
compensation expense, transaction costs related to acquisition and
disposition events (including professional advisory fees,
integration costs, and related compensatory matters), restructuring
expense, tax on equity award vesting and exercise events, and other
non-comparable items. A reconciliation of net (loss) income from
continuing operations, which is the most directly comparable GAAP
financial measure, to Adjusted EBITDA is provided below herein.
Adjusted EBITDA margin is the Company’s
calculation of Adjusted EBITDA, divided by revenue calculated in
accordance with GAAP.
The Company uses Adjusted EBITDA and Adjusted
EBITDA margin as supplemental measures of performance to evaluate
operating effectiveness and assess its ability to increase revenues
while controlling expense growth and the scalability of the
Company’s business growth strategy. Adjusted EBITDA is also a
significant performance measure used by the Company in its
incentive compensation programs. The Company believes that the
exclusion of the expense and income items eliminated in calculating
Adjusted EBITDA and Adjusted EBITDA margin provides management and
investors a useful measure for period-to-period comparisons of the
Company’s core operating results by excluding items that are not
comparable across reporting periods or that do not otherwise relate
to the Company’s ongoing operations. Accordingly, the Company
believes that Adjusted EBITDA and Adjusted EBITDA margin provide
useful information to investors and others in understanding and
evaluating the Company’s operating results. However, use of
Adjusted EBITDA and Adjusted EBITDA margin as analytical tools has
limitations, and investors and others should not consider them in
isolation or as substitutes for analysis of our financial results
as reported under GAAP. In addition, other companies may calculate
Adjusted EBITDA and Adjusted EBITDA margin or similarly titled
measures differently, which may reduce their usefulness as
comparative measures.
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Loss from continuing operations |
$ |
(12,773 |
) |
|
$ |
(1,400 |
) |
|
$ |
(16,863 |
) |
|
$ |
(658 |
) |
Depreciation and amortization |
|
25,579 |
|
|
|
15,831 |
|
|
|
43,022 |
|
|
|
30,916 |
|
Impairment expense |
|
— |
|
|
|
836 |
|
|
|
— |
|
|
|
1,020 |
|
Other expense (income), net |
|
2,088 |
|
|
|
(177 |
) |
|
|
4,428 |
|
|
|
(1,294 |
) |
Income tax (benefit) expense |
|
(5,200 |
) |
|
|
1,459 |
|
|
|
(6,226 |
) |
|
|
2,141 |
|
Stock-based compensation |
|
2,270 |
|
|
|
2,603 |
|
|
|
6,236 |
|
|
|
6,320 |
|
Integration and acquisition |
|
11,325 |
|
|
|
301 |
|
|
|
11,943 |
|
|
|
432 |
|
Adjusted EBITDA |
$ |
23,289 |
|
|
$ |
19,453 |
|
|
$ |
42,540 |
|
|
$ |
38,877 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
27 |
% |
|
|
29 |
% |
|
|
27 |
% |
|
|
29 |
% |
Supplemental Information
Operating Statistics
|
June 30,2024 |
|
June 30,2023 |
Homes and businesses passed (1) |
530,076 |
|
|
396,035 |
|
Incumbent Broadband Markets (4) |
232,531 |
|
|
213,188 |
|
Glo Fiber Expansion Markets (5) |
297,545 |
|
|
182,847 |
|
|
|
|
|
Residential & Small and Medium Business ("SMB") Revenue
Generating Units ("RGUs"): |
|
|
|
Broadband Data |
164,566 |
|
|
142,247 |
|
Incumbent Broadband Markets (4) |
111,256 |
|
|
109,404 |
|
Glo Fiber Expansion Markets (5) |
53,310 |
|
|
32,843 |
|
Video |
42,079 |
|
|
44,800 |
|
Voice |
44,126 |
|
|
40,313 |
|
Total Residential & SMB RGUs (excludes RLEC) |
250,771 |
|
|
227,360 |
|
|
|
|
|
Residential & SMB Penetration (2) |
|
|
|
Broadband Data |
31.0 |
% |
|
35.9 |
% |
Incumbent Broadband Markets (4) |
47.8 |
% |
|
51.3 |
% |
Glo Fiber Expansion Markets (5) |
17.9 |
% |
|
18.0 |
% |
Video |
7.9 |
% |
|
11.3 |
% |
Voice |
8.7 |
% |
|
10.7 |
% |
|
|
|
|
Fiber route miles |
16,029 |
|
|
9,082 |
|
Total fiber miles (3) |
1,798,211 |
|
|
767,173 |
|
______________________________________________________(1) Homes and
businesses are considered passed (“passings”) if we can connect
them to our network without further extending the distribution
system. Passings is an estimate based upon the best available
information. Passings will vary among video, broadband data and
voice services. (2) Penetration is calculated by dividing the
number of users by the number of passings or available homes, as
appropriate. (3) 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.(4) Incumbent Broadband
Markets consists of Shentel Incumbent Cable Markets and Horizon
Incumbent Telephone Markets with Fiber-To-The-Home (“FTTH”)
passings.(5) Glo Fiber Expansion Markets consists of FTTH passings
in greenfield expansion markets in the Shentel and former Horizon
markets.
Residential and SMB ARPU |
|
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Residential and SMB Revenue: |
|
|
|
|
|
|
|
Broadband Data |
$ |
40,823 |
|
$ |
34,152 |
|
$ |
79,404 |
|
$ |
67,326 |
Incumbent Broadband |
|
28,324 |
|
|
27,172 |
|
|
56,122 |
|
|
54,445 |
Glo Fiber Expansion Markets |
|
12,499 |
|
|
6,980 |
|
|
23,282 |
|
|
12,881 |
Video |
|
14,913 |
|
|
14,411 |
|
|
29,307 |
|
|
29,056 |
Voice |
|
3,283 |
|
|
3,054 |
|
|
6,306 |
|
|
6,084 |
Discounts, adjustments and other |
|
34 |
|
|
950 |
|
|
524 |
|
|
1,860 |
Total Residential and SMB Revenue |
$ |
59,053 |
|
$ |
52,567 |
|
$ |
115,541 |
|
$ |
104,326 |
|
|
|
|
|
|
|
|
Average RGUs: |
|
|
|
|
|
|
|
Broadband Data |
|
162,581 |
|
|
140,481 |
|
|
157,999 |
|
|
138,376 |
Incumbent Broadband |
|
111,689 |
|
|
109,716 |
|
|
110,472 |
|
|
109,737 |
Glo Fiber Expansion Markets |
|
50,892 |
|
|
30,765 |
|
|
47,527 |
|
|
28,639 |
Video |
|
42,443 |
|
|
45,229 |
|
|
41,869 |
|
|
45,749 |
Voice |
|
43,865 |
|
|
40,164 |
|
|
42,277 |
|
|
40,078 |
|
|
|
|
|
|
|
|
ARPU: (1) |
|
|
|
|
|
|
|
Broadband Data |
$ |
83.70 |
|
$ |
81.03 |
|
$ |
83.76 |
|
$ |
81.06 |
Incumbent Broadband |
$ |
84.53 |
|
$ |
82.55 |
|
$ |
84.67 |
|
$ |
82.69 |
Glo Fiber Expansion Markets |
$ |
81.86 |
|
$ |
75.63 |
|
$ |
81.64 |
|
$ |
74.96 |
Video |
$ |
117.12 |
|
$ |
106.21 |
|
$ |
116.66 |
|
$ |
105.85 |
Voice |
$ |
24.95 |
|
$ |
25.35 |
|
$ |
24.86 |
|
$ |
25.30 |
______________________________________________________(1) Average
Revenue Per RGU calculation = (Residential & SMB Revenue) /
average RGUs / 3 months.
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