EDINBURG, Va., Aug. 03, 2022 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel”) (Nasdaq: SHEN) announced second quarter 2022 financial and operating results.

Second Quarter 2022 Highlights

• Revenue grew 8.8% to $66.0 million over the same period a year ago driven by 138.9% and 4.3% growth in Glo Fiber and incumbent cable data RGUs,respectively.
• Glo Fiber data net adds were approximately 3,300, an increase of 103.2% overthe second quarter 2021 and 38.9% over the first quarter 2022.
• Glo Fiber homes and businesses passed grew 20% sequentially toapproximately 113,000.
• Net loss from continuing operations was $3.2 million compared to net income of $1.6 million in the same period a year ago due primarily to impairment and restructuring charges related to the decommissioning of unprofitable Beam fixed wireless sites.
• Adjusted EBITDA grew 16.4%, to $18.6 million over the same period a year ago.

“We are pleased with the strong execution of our fiber first strategy and the increase in the pace of Glo Fiber net additions and revenue growth,” said President and CEO, Christopher E. French. "We reached the 100,000 fiber passings milestone in the second quarter and are on target to construct 75,000 new passings this year. Wenow have franchise agreements or government grant awards in place for approximately 430,000 fiber passings or 89% of our target passings in 2026."

Shentel's second-quarter earnings conference call will be webcast at 8:30 a.m. ETon Wednesday, August 3, 2022. The webcast and related materials will be availableon Shentel’s Investor Relations website at

https://investor.shentel.com/

.Consolidated Second Quarter 2022 Results

• Revenue in the second quarter of 2022 grew 8.8% to $66.0 million compared with the second quarter of 2021, due to Broadband segment revenue growth of 9.2% and Tower segment revenue growth of 1.9%.
• Loss from continuing operations per share was $(0.06) in the second quarter of 2022 compared with income per share from continuing operations of $0.03 in the second quarter of 2021. The decline was due primarily to Beam branded fixed wireless impairment and restructuring charges and higher stock compensation expense.
• Adjusted EBITDA in the second quarter of 2022 grew $2.6 million or 16.4% to $18.6 million, compared with the second quarter of 2021, due primarily to 10.2% growth in Broadband segment and 8.8% lower Corporate expenses from lower professional fees.

Broadband

• Total broadband data Revenue Generating Units ("RGUs") as of June 30, 2022, were 125,003, representing 12.1% year over year growth. Penetration for incumbent cable and Glo Fiber were 51% and 15%, respectively, compared to 49% and 15%, respectively, as of June 30, 2021. Total Glo Fiber passings grew year over year by approximately 66,100.
• Broadband revenue in the second quarter of 2022 grew $5.2 million, or 9.2%, to $61.4 million compared with $56.2 million in the second quarter of 2021, primarily driven by a $3.9 million, or 8.9%, increase in Residential and Small and Medium Business ("SMB") revenue by a 138.9% and 4.3% increase, respectively, in Glo Fiber and incumbent cable broadband data RGUs.
• Cost of services increased approximately $2.0 million, or 8.5%, compared with the three months ended June 30, 2021, driven by higher maintenance and compensation expenses. Maintenance increased due to higher cable replacement, gasoline and field engineering costs. Compensation increased due to higher headcount to support the expansion of our Glo Fiber network, salary and wage increases and higher medical benefit costs.
• Selling, general and administrative expense increased $1.2 million, or 9.0%, compared with the three months ended June 30, 2021, due primarily to higher compensation and advertising expense to support Glo Fiber expansion.
• Depreciation and amortization increased $1.6 million, or 13.8%, compared with the three months ended June 30, 2021, primarily as a result of our network expansion of our Glo Fiber network.
• During the second quarter of 2022, the Company permanently ceased operating 20 of our 55 Beam fixed wireless sites and expects these sites to be completely decommissioned by December 31, 2022. Consequently, Shentel recorded $4.1 million and $0.4 million, respectively, of impairment and restructuring charges and re-classified the remaining Beam assets and liabilities as held for sale.
• Broadband operating income in the second quarter of 2022 was $4.1 million, compared to $8.2 million in the second quarter of 2021, due primarily to the above noted Beam impairment and restructuring charges.
• Broadband Adjusted EBITDA in the second quarter of 2022 grew 10.2% to $22.0 million, compared with $20.0 million for the second quarter of 2021.

Tower

• Revenue increased approximately $0.1 million, or 1.9%, for the three months ended June 30, 2022 compared with the three months ended June 30, 2021, primarily due to a 3.8% increase in tenants.
• Tower operating income in the second quarter of 2022 was $2.3 million, compared to $2.5 million in the second quarter of 2021.
• Tower Adjusted EBITDA in the second quarter of 2022 was consistent with the second quarter of 2021 at $2.9 million for both periods.

Other Information

• As of June 30, 2022, our cash and cash equivalents totaled $33.3 million and the availability under our delayed draw term loans and revolving line of credit was $400.0 million, for total available liquidity of $433.3 million. On July 1, 2022, we drew a total of $25 million against our term loans. We expect to draw the remaining $275 million available under the term loans by June 2023.
• Capital expenditures were $88.7 million for the six months ended June 30, 2022 compared with $79.6 million in the comparable 2021 period. The $9.1 million increase in capital expenditures was primarily due to higher spending in the Broadband segment driven by the expansion of our Glo Fiber network.

 

Conference Call and Webcast

Date: Wednesday, August 3, 2022

Time: 8:30 A.M. (ET)

Registration link: Registration link

A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at http://investor.shentel.com/.

A replay of the call will be available for a limited time on the Investor Relations pageof the Company’s website.

 

About Shenandoah Telecommunications

Shenandoah Telecommunications Company (Shentel) provides broadband services through its high speed, state-of-the-art cable, fiber optic and fixed wireless networks to customers in the Mid-Atlantic United States. The Company’s services include: broadband internet, video, and voice; fiber optic Ethernet, wavelength and leasing; and tower colocation leasing. The Company owns an extensive regional network with over 7,900 route miles of fiber and over 200 macro cellular towers. 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,” “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. Those factors may include natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as COVID-19, changes in general economic conditions including high inflation, increases in costs, changes in regulation and other competitive factors. 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