Core Insights - Shenandoah Telecommunications Company ("Shentel") reported strong growth in the first quarter of 2025, with significant increases in subscribers and revenue, particularly in its Glo Fiber Expansion Markets [3][7][8] - The company achieved a 52% revenue growth in Glo Fiber Expansion Markets, contributing to a total revenue increase of 26.9% year-over-year [7][8] - Adjusted EBITDA grew by 43.3% to $27.6 million, with margins improving from 28% to 31% [3][7][23] Financial Performance - Total revenue for Q1 2025 was $87.9 million, up from $69.2 million in Q1 2024, primarily driven by $15.2 million from acquired Horizon markets [8][14] - Glo Fiber Expansion Markets revenue reached $18.4 million, a 52% increase compared to the previous year [7][8] - Net loss from continuing operations was $9.1 million in Q1 2025, compared to a loss of $4.1 million in Q1 2024, attributed to higher depreciation and amortization costs [7][14] Subscriber Growth - The company added 5,400 new subscribers in Glo Fiber Expansion Markets, bringing total subscribers in these markets to approximately 71,000, a 51% increase year-over-year [3][7] - Total broadband homes passed increased by 128,000 to approximately 604,000, with significant growth in both Glo Fiber and Incumbent Broadband Markets [7][26] Capital Expenditures - Capital expenditures for Q1 2025 were $83.2 million, up from $70.1 million in the same period of 2024, reflecting investments in network expansion [6][9] - The increase in capital expenditures was primarily driven by investments in Horizon markets and Glo Fiber network expansion [9][13] Operational Metrics - Adjusted EBITDA margin improved to 31% in Q1 2025 from 28% in Q1 2024, indicating enhanced operational efficiency [23] - The company reported a 46.5% growth in residential and SMB revenue in Glo Fiber Expansion Markets, contributing to overall revenue growth [8][27] Liquidity Position - As of March 31, 2025, Shentel had cash and cash equivalents of $87.5 million and total available liquidity of approximately $334.6 million [13][17]

EDINBURG, Va., April 21, 2025 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (Shentel) (NASDAQ:SHEN) will release its first quarter 2025 financial results before the market opens on Wednesday, April 30, 2025, and will host a conference call and simultaneous webcast on the same day at 8:30 a.m. Eastern Time to discuss Shentel’s financial results and business highlights. Date: April 30, 2025Time: 8:30 AM ET Listen via Internet: https://investor.shentel.com/ For Analysts, please register to dial-in ...

Core Viewpoint - Glo Fiber, a subsidiary of Shenandoah Telecommunications Company (Shentel), is expanding its fiber-to-the-home (FTTH) broadband services to Dover Township and Dover Borough in York County, Pennsylvania, aiming to serve approximately 7,000 additional homes and businesses [1][4]. Company Overview - Glo Fiber provides next-generation FTTH multi-gigabit broadband internet access, live streaming TV, and digital phone service, currently available to over 346,000 homes and businesses [5]. - The company offers symmetrical upload and download speeds of up to 5 gigabits per second (Gbps) through its advanced fiber-optic technology and a regional fiber network spanning 16,800 miles [3][6]. Service Expansion - Construction for the new services in the Dover area is expected to begin later in 2025, following the initial service launch in York County in 2022 [1][4]. - The expansion reflects Glo Fiber's commitment to providing high-speed, reliable internet service and enhancing competitive options for residents and businesses in the area [4]. Customer Service and Technology - Glo Fiber is recognized for its superior local customer service and offers additional services such as phone service, video service, and Whole-Home Wi-Fi [3][7]. - The company utilizes state-of-the-art technology, including XGS-PON 10 Gbps networks, to ensure reliable and high-speed internet access [5].

Core Insights - Shenandoah Telecommunications Company (Shentel) has extended high-speed, gigabit internet service to approximately 2,500 additional homes in Bedford County and plans to add over 1,500 more by the end of the year, supported by a $24 million construction project [1] - The project is partly funded by the Virginia Telecommunication Initiative (VATI) and aims to enhance broadband infrastructure in rural areas [1][2] - Shentel has received positive feedback from Bedford County officials regarding their professionalism and progress in expanding broadband services [2] Company Overview - Shentel provides broadband services through high-speed fiber optic and cable networks to residential and commercial customers across eight states in the eastern United States [4] - The company offers a range of services including broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services [4] - Shentel operates an extensive regional network with over 16,800 route miles of fiber [4] Project Details - The construction project in Bedford County is a collaborative effort involving Shentel's capital investment, contributions from Bedford County, and funding from the VATI initiative [1] - The project aims to create competitive communities by expanding access to high-speed internet in areas that currently lack adequate service [1] - Completion of the project is anticipated in the fall of 2025, with significant progress already made in obtaining permits and installing infrastructure [2]

Core Insights - Michael Dion is an expert in FP&A, Corporate Finance, and Small Business with 12 years of experience in Fortune 100 companies and various industries [1] - He founded F9 Finance to assist finance professionals and small business owners in understanding finance and accounting concepts [1] - The investment approach focuses on identifying value opportunities where market reactions to news are disproportionate, emphasizing strong fundamentals and dividends [1] Company and Industry Summary - Michael Dion has finance experience across multiple sectors including Telecom, Media and Entertainment, Hospitality, and Construction [1] - The emphasis on cash flow is critical for both companies and investors, highlighting its importance in investment decisions [1]

Financial Data and Key Metrics Changes - Revenue grew 22% to $328.1 million in 2024, with the former Horizon markets contributing $47.7 million during the nine months of Shentel ownership [12][13] - Adjusted EBITDA increased 20% to $94.6 million, with the former Horizon markets contributing $10.7 million [16] - Excluding the former Horizon markets, adjusted EBITDA grew $4.9 million or 6% from 2023 [16] Business Line Data and Key Metrics Changes - Glo Fiber revenue grew $21.4 million or 61%, driven by a 50.9% increase in subscribers and a 7.3% increase in ARPU [14] - Commercial Fiber revenue declined $5.8 million due to T-Mobile revenue churn, while Incumbent Broadband Markets revenue declined $5 million due to cord cutting and a decline in data RGUs [15][16] - The total number of data, video, and voice revenue-generating units reached 78,000 at the end of 2024, up approximately 53% year-over-year [24] Market Data and Key Metrics Changes - The broadband data penetration rate in Glo Fiber expansion markets climbed to 18.8% at the end of 2024, up one percentage point from the prior year [25] - Average broadband data ARPU increased by 2.5% year-over-year to almost $85 [31] - The overall broadband data penetration rate decreased to 46.6% at the end of 2024 due to the addition of acquired Horizon passings [31] Company Strategy and Development Direction - The company aims to complete Glo Fiber's seven-year construction phase by the end of next year, with expectations for customer net additions and revenue to drive growth for the next six to seven years [11] - The company plans to invest $175 million to $190 million in Glo Fiber to extend fiber to approximately 95,000 new passings [37] - Long-term capital intensity is expected to decline dramatically after the completion of Glo Fiber build-out and government grant projects in 2026 [39][40] Management's Comments on Operating Environment and Future Outlook - Management views 2024 as a transition year due to the sale of the Tower business and the acquisition of Horizon, with expectations for long-term revenue and adjusted EBITDA growth rates to return to previous levels [18] - Management anticipates adjusted EBITDA margins to improve in future years as the full impact of synergy savings is realized [18] - The company expects to see significant growth opportunities in incumbent broadband markets as they complete subsidized projects over the next two years [31] Other Important Information - The company had liquidity of $400 million at the end of 2024, including $46 million in cash and $418 million of outstanding debt [19][20] - Capital expenditures in 2024 totaled $300 million, with projections for 2025 in the range of $250 million to $280 million [34][36] Q&A Session Summary Question: What is the percentage of Horizon's revenue that is amortized versus recurring? - Management indicated that about 8% of Horizon's revenues were amortized revenue [58] Question: When will T-Mobile churn be finished and what is the cash impact? - Management confirmed that T-Mobile churn is behind them, with most disconnects occurring in 2023, and the churn primarily affected EBITDA and net income [46][47] Question: What is the source of competition in incumbent markets? - Management noted that there is no cannibalization from Glo Fiber, and competition comes from local cable companies and some fiber overbuild activity [53][54] Question: Are competitors becoming more aggressive recently? - Management observed that the pace of construction has slowed down, and they expect competition overlap to decrease over the next couple of years [56] Question: What kind of pressures are seen from other service providers? - Management reported that competitors are offering promotional discounts on lower-end products, but they continue to succeed in the middle to high-end range [63]

February 20, 2024 Q4 2024 Earnings Conference Call Safe Harbor Statement This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our business strategy, our prospects and our financial position. These statements can be identified by the use of forward-looking terminology such as "believes," "estimates," "expects," "intends," "may," "will," "should," "could" or "anticipates" or ...

Company Performance - Shenandoah Telecommunications (SHEN) reported a quarterly loss of $0.11 per share, which was better than the Zacks Consensus Estimate of a loss of $0.15, but a decline from earnings of $0.05 per share a year ago [1] - The company posted revenues of $85.41 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 4.73%, and an increase from year-ago revenues of $72.51 million [3] - Over the last four quarters, Shenandoah Telecom has surpassed consensus EPS estimates only once [2] Earnings Outlook - The current consensus EPS estimate for the coming quarter is -$0.15 on revenues of $91.41 million, and for the current fiscal year, it is -$0.49 on revenues of $377.4 million [8] - The estimate revisions trend for Shenandoah Telecom is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - The Diversified Communication Services industry, to which Shenandoah Telecom belongs, is currently in the bottom 20% of over 250 Zacks industries, which may negatively impact stock performance [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly affect stock performance [6][9]

Acquisition and Financial Transactions - Shenandoah Telecommunications Company completed the acquisition of Horizon Acquisition Parent LLC for $347 million in cash and 4,100,375 shares of common stock[22]. - The company sold its tower portfolio to Vertical Bridge Holdco, LLC for $309.9 million, receiving $305.8 million net of transaction costs at the initial closing[24]. - The company anticipates conveying remaining tower sites to Vertical Bridge by the end of March 2025, representing 99.9% of the tower portfolio value[24]. - The company has been awarded grants totaling approximately $149.8 million to expand its broadband network and improve services to about 27,200 unserved homes in Virginia, Maryland, West Virginia, and Ohio[146]. - As of December 31, 2024, the Company had borrowed $418.0 million in term loans under its Credit Agreement, which includes a $150 million revolving credit facility due June 2026[152]. Customer Base and Service Offerings - As of December 31, 2024, the company served approximately 261,000 Revenue Generating Units (RGUs)[27]. - The Glo Fiber FTTH service passes approximately 346,000 homes and businesses, competing against various broadband providers[29]. - Approximately 28% of the company's broadband passings compete with a wireline broadband competitor, including 23% of cable passings[28]. - The company has satisfied its obligations to deploy 25/3 Mbps service to remaining unserved locations by July 15, 2024, after receiving an extension from the FCC[69]. Competition and Market Environment - The company faces increasing competition from various market participants, including FTTH providers and wireless broadband providers[20]. - The company faces intense competition in its commercial fiber business from several local and national providers, which may adversely affect its revenues[109]. - The company anticipates a decline in demand, price, and profitability of its video services due to ongoing "cord cutting" trends[107]. - Approximately 28% of the passings in the incumbent broadband business currently have a FTTH or cable competitor, including 23% of incumbent cable passings and 100% of FTTH passings in the Ohio incumbent telephone market[105]. Regulatory and Compliance Issues - The company is subject to a 5% cap on franchise fees, which includes in-kind contributions[52]. - The company operates under various federal and state privacy laws, including the Virginia consumer privacy law that requires compliance by January 2023[59]. - The company is required to comply with FCC regulations regarding accessibility for individuals with disabilities in video programming services[61]. - The company faces potential regulatory changes that could impact its VoIP services and overall operations[63]. - The company is subject to increased regulatory scrutiny and audits related to the Universal Service Fund (USF) and Lifeline-supported broadband services[72][71]. Operational Challenges and Risks - The company faces significant risks related to business acquisitions, including potential adverse impacts on financial condition and cash flow due to future pandemics[118]. - Supply chain disruptions could adversely impact the company's growth and operations, potentially leading to reduced revenues and loss of customers[124]. - The integration of Horizon's business may require significant managerial resources, potentially diverting attention from ongoing operations[135]. - The company faces challenges in competing with larger providers that have greater resources and brand recognition, potentially impacting its ability to attract and retain customers[114]. - The company faces risks related to its level of indebtedness, which could adversely affect its financial health and ability to compete[153]. Employee and Workplace Culture - As of December 31, 2024, the company employed 1,089 people, with approximately 28% being female and 24% of management positions held by females[79]. - The company has achieved a competitive advantage in attracting talent through a market-driven compensation and benefits package[84]. - The company’s Chief Human Resources Officer is responsible for developing and executing the human capital management strategy[80]. - The company has implemented a Positive People Philosophy to foster a collaborative and ethical workplace culture[82]. - The company conducted an annual employee satisfaction survey in 2024 to measure engagement and satisfaction levels[89]. Financial Performance and Projections - The company expects capital expenditures to exceed cash flow from continuing operations through 2026 as part of its expansion strategy[110]. - The company's sales, general and administrative (SG&A) costs are higher as a percentage of revenue compared to larger broadband companies, which may affect earnings and margins[123]. - Adverse economic conditions, such as high inflation or reduced consumer spending, could negatively impact the Company's results of operations[154]. - Changes to the FCC's Universal Service Fund framework could negatively impact the company's broadband revenue and financial performance[139].

Revenue Growth - In 2024, Shenandoah Telecommunications Company (Shentel) reported a revenue increase of $58.9 million, or 21.9%, reaching $328.1 million, primarily driven by $47.7 million from newly acquired Horizon markets[6]. - Glo Fiber Expansion Markets saw a 56% year-over-year growth in data customers, totaling over 65,000, and a 48% increase in passings, reaching approximately 346,000[5]. - Glo Fiber Expansion Markets revenue grew by $22.8 million, or 65%, to $57.9 million[5]. - The fourth quarter of 2024 saw a revenue increase of $17.5 million, or 25.8%, to $85.4 million, with $14.1 million coming from Horizon markets[13]. - Service revenue increased to $85,412 thousand in Q4 2024, up 25.7% from $67,913 thousand in Q4 2023[15]. - Glo Fiber Expansion Markets revenue rose to $16,596 thousand in Q4 2024, a 56.5% increase from $10,611 thousand in Q4 2023[15]. - Total Residential & SMB Revenue for the year ended December 31, 2024, was $235,392,000, up from $211,982,000 in 2023, reflecting an increase of 11.1%[30]. Financial Performance - Adjusted EBITDA for 2024 increased to $94.6 million, representing a $15.6 million, or 19.7%, increase compared to 2023, with former Horizon markets contributing $10.7 million[8]. - Adjusted EBITDA for Q4 2024 was $25,488,000, compared to $19,900,000 in Q4 2023, representing a 28.0% increase[26]. - Adjusted EBITDA margin improved to 30% in Q4 2024 from 29% in Q4 2023, indicating enhanced operational efficiency[26]. - The company reported a loss from continuing operations of $28.4 million in 2024, compared to income of $1.0 million in 2023, primarily due to higher depreciation and interest expenses[8]. - The company reported a net cash provided by operating activities of $62,567 thousand in 2024, down from $113,774 thousand in 2023[21]. - The company reported a loss from continuing operations of $(6,190,000) in Q4 2024, compared to income of $1,857,000 in Q4 2023[26]. - Net loss attributable to common shareholders was $4,535 thousand in Q4 2024, compared to net income of $2,589 thousand in Q4 2023[16]. Capital Expenditures and Investments - Capital expenditures for 2024 totaled $319.1 million, up from $255.1 million in 2023, driven by expansion in Glo Fiber and Horizon markets[13]. - Capital expenditures for 2024 were $319,070 thousand, compared to $255,070 thousand in 2023, indicating a 25.1% increase[20]. Assets and Liquidity - As of December 31, 2024, Shentel had total available liquidity of approximately $399.9 million, including cash and cash equivalents of $46.3 million[13]. - Total assets increased to $1,740,273 thousand as of December 31, 2024, up from $1,214,229 thousand in 2023, representing a 43.2% growth[17]. - Cash and cash equivalents decreased to $46,272 thousand at the end of 2024, down from $139,255 thousand in 2023, a decline of 66.7%[17]. Customer and Market Expansion - The number of homes and businesses passed increased to 585,340 in December 2024, up from 449,635 in December 2023, a growth of 30.1%[27]. - Broadband Data RGUs rose to 176,465 in December 2024, compared to 151,389 in December 2023, marking a 16.6% increase[27]. - Average Revenue Per User (ARPU) for Broadband Data was $83.52 in Q4 2024, slightly up from $81.98 in Q4 2023, an increase of 1.9%[30]. - The total number of fiber route miles expanded to 16,830 in December 2024, compared to 9,875 in December 2023, a growth of 70.5%[27]. - The company plans to continue expanding its Glo Fiber service in new markets, focusing on increasing FTTH passings[15]. Operating Expenses - Operating expenses totaled $91,166 thousand in Q4 2024, compared to $67,350 thousand in Q4 2023, reflecting a 35.4% increase[15]. - The company experienced a 36% increase in cost of services, amounting to approximately $27.3 million, largely due to costs incurred in the newly acquired Horizon markets[6]. - The company incurred $27,750,000 in depreciation and amortization for Q4 2024, up from $16,331,000 in Q4 2023, reflecting a 69.5% increase[26]. Market Penetration - Residential & SMB penetration for Broadband Data decreased to 30.1% in December 2024 from 33.7% in December 2023[27].