Shentel(SHEN) - 2025 Q1 - Quarterly Results

Revenue Growth - Glo Fiber Expansion Markets added 5,400 new subscribers and 16,600 new passings, resulting in a 52% revenue growth to $18.4 million[3] - Total revenue increased by $18.7 million, or 26.9%, to $87.9 million, with a 5% growth to $72.9 million when excluding former Horizon markets[7] - Adjusted EBITDA grew 43.3% to $27.6 million, with a 20.6% increase when excluding former Horizon markets[6] - Residential & SMB revenue reached $61,803 thousand for the three months ended March 31, 2025, compared to $55,927 thousand in the same period of 2024, reflecting an increase of 10.5%[25] - Total Residential & SMB Revenue for 2024 is projected to be $235,392 million, with quarterly revenues of $56,488 million in Q1, $59,053 million in Q2, $59,325 million in Q3, and $60,526 million in Q4[27] - Glo Fiber Expansion Markets are expected to generate $52,132 million in revenue for 2024, with a quarterly increase from $10,783 million in Q1 to $15,053 million in Q4[27] - Service revenue and other for 2024 is projected to total $328,058 million, with consistent quarterly growth throughout the year[27] - Video revenue is projected to be $58,030 million for 2024, with quarterly revenues showing stability around $14,000 million[27] - Voice revenue is expected to total $12,765 million for 2024, with a slight decline in Q4'24 to $3,184 million[27] - Commercial Fiber revenue is projected to be $67,011 million for 2024, with significant growth in Q2'24 reaching $20,257 million[27] Financial Performance - Net loss from continuing operations was $9.1 million, compared to a net loss of $4.1 million in Q1 2024, primarily due to higher depreciation and amortization[6] - The company reported a net loss of $9,132 thousand for the three months ended March 31, 2025, compared to a net income of $214,696 thousand for the same period in 2024[16] - Adjusted EBITDA for the three months ended March 31, 2025, was $27,593 thousand, an increase of 43.5% from $19,251 thousand in the prior year, with an adjusted EBITDA margin of 31%[21] Capital Expenditures - Capital expenditures for Q1 2025 were $83.2 million, up from $70.1 million in Q1 2024, driven by investments in Horizon markets and Glo Fiber network expansion[12] - Capital expenditures for the three months ended March 31, 2025, were $83,236 thousand, compared to $70,053 thousand in the prior year, indicating a rise of 18.8%[16] Subscriber Growth - Total broadband homes passed increased by 128,000 to approximately 604,000, including 363,000 in Glo Fiber Expansion Markets[6] - Glo Fiber Expansion Markets data subscribers grew 51% year-over-year to approximately 71,000[6] - The number of broadband data RGUs increased to 182,425 in March 2025, up from 155,687 in March 2024, showing a growth of 17.1%[24] - Total homes and businesses passed increased to 603,649 as of March 31, 2025, up from 476,081 in the previous year, marking a growth of 26.8%[24] - Average RGUs for Broadband Data are expected to increase from 153,418 in Q1'24 to 173,771 in Q4'24, indicating a growth trend in user adoption[27] - The average RGUs for Glo Fiber Expansion Markets are expected to rise from 44,163 in Q1'24 to 62,387 in Q4'24, reflecting strong market expansion[27] Liquidity and Debt - As of March 31, 2025, total available liquidity was approximately $334.6 million, including cash and cash equivalents of $87.5 million[12] - The company had cash and cash equivalents of $87,547 thousand at the end of the period, up from $46,272 thousand at the beginning of the period, representing an increase of 89.2%[16] - Long-term debt, less current maturities, increased to $504,199 thousand as of March 31, 2025, compared to $407,675 thousand at December 31, 2024, a rise of 23.7%[15] Expenses - Selling, general and administrative expenses rose by $3.0 million, or 10.8%, due to costs incurred in the acquired Horizon markets[7] - Depreciation and amortization increased by $12.0 million, or 68.9%, due to the Horizon transaction and Glo Fiber network expansion[7] Market Penetration - The penetration rate for Incumbent Broadband Markets decreased to 46.5% in March 2025 from 50.3% in March 2024[24] ARPU Projections - The ARPU for Incumbent Broadband Markets is projected to be $84.81 for the full year 2024, with a slight increase from $84.64 in Q3'24 to $85.26 in Q4'24[27] - The reclassification of certain revenues has resulted in updated ARPU values, with Broadband Data ARPU projected at $83.67 for 2024[27]