EDINBURG, Va., Nov. 3 /PRNewswire-FirstCall/ -- Shenandoah
Telecommunications Company (Shentel) (NASDAQ:SHEN) announces
financial and operating results for the third quarter and nine
months ended September 30, 2009. Third Quarter 2009 Highlights
Highlights for the quarter include: -- Revenue of $40.1 million, an
increase of 7% from third quarter 2008 -- Net income of $6.3
million, which includes a net loss of $0.8 million from newly
acquired cable operations undergoing upgrades -- PCS net subscriber
additions of 3,286 -- Total PCS subscribers of 219,353, up 7% from
September 30, 2008 -- EVDO high speed data services are now
available to 94% of the population covered by our PCS network --
Added seven cell towers, 16 CDMA base stations, and 28 EVDO-enabled
sites -- Completed upgrades in the recently acquired cable
territories to 27% of the homes passed, and 100% of the homes
passed in Shenandoah County cable territory President and CEO,
Christopher E. French commented, "Despite a difficult economic
environment, our company experienced solid operating results in the
quarter, while continuing to invest in upgrading and improving all
of our networks, especially PCS and the newly acquired cable
operations. Development of and growth in these operations is an
important part of our plans for long-term growth in earnings.
During the quarter we continued to make improvements in our PCS
network, further improving coverage and extending high speed data
service to 94 percent of our covered population. We are fortunate
that our financial strength has allowed us to continue to invest in
growth at a time when many companies are retrenching, and we
believe these investments position us well for when economic
conditions improve." Consolidated Third Quarter Results For the
quarter ended September 30, 2009, net income from continuing
operations was $6.3 million compared to $7.4 million in third
quarter 2008. The third quarter of 2009 included an after-tax loss
of $0.8 million from the cable operations acquired in December
2008, which are undergoing upgrades. The Company's total revenues
for third quarter 2009 were $40.1 million, compared to $37.4
million for the same quarter in 2008, an increase of 7%. Third
quarter operating expenses increased to $29.5 million in 2009 from
$24.9 million in 2008. The increase in revenues is primarily a
result of higher revenues in our PCS unit and the revenues of the
newly acquired cable operations. The increase in PCS revenues is a
result of an increase in average PCS subscribers of 7%. The
increase in operating expenses results from costs associated with
the new cable operations, improvements and expansion of our PCS and
fiber optic networks, and associated depreciation. Consolidated
Nine Months Results For the nine months ended September 30, 2009,
net income from continuing operations was $19.3 million compared to
$20.8 million in the comparable 2008 period. Year-to-date, results
for 2009 include a $1.9 million after-tax loss from the cable
operations acquired in December of 2008. The Company's total
revenues for the 2009 nine months were $120.4 million, compared to
$107.3 million for the same period in 2008, an increase of 12%.
Operating expenses increased to $86.1 million in the first nine
months of 2009 from $71.8 million in the prior period. The increase
in revenues is primarily a result of an increase in average PCS
subscribers of 9% and the revenues of the newly acquired cable
operations. Operating expenses increased due to costs associated
with the new cable operations, improvements and expansion of our
PCS and fiber optic networks, and associated depreciation. Cable TV
Update The Company acquired cable assets and subscribers in West
Virginia and Alleghany County, Virginia on December 1, 2008. In the
third quarter of 2009, the acquisition added revenues of $2.6
million and expenses of $3.9 million, for an operating loss of $1.3
million. The acquired cable operations accounted for 68% of the
decrease in consolidated operating income in third quarter 2009
compared to third quarter 2008. Following the upgrade of the
network acquired in Alleghany County, Virginia, during the second
quarter, the Company completed upgrades to the networks acquired in
Franklin and Petersburg, West Virginia, during the third quarter of
2009. Through September 30, the Company had upgraded networks
passing 27% of homes passed in our acquired service areas, and an
additional 13% of homes passed have been upgraded since the end of
the quarter. The Company expects to have 53% of homes passed
upgraded by the end of the year. In addition, the Company has
upgraded its cable network in Shenandoah County, Virginia,
upgrading 100% of homes passed as of September 30, 2009. In total,
the Company expects to have upgraded, as of December 31, 2009,
approximately 65% of homes passed in our cable markets. Other
Information The Company's third quarter 2009 capital expenditures
were $12.1 million, down from $20.2 million in third quarter 2008.
Capital expenditures primarily resulted from upgrades to the
acquired cable networks and spending to expand our PCS network
coverage and footprint. The Company expects capital spending to
increase in the fourth quarter as the PCS network improvements are
finished and cable network upgrade work increases. Spending should
then begin to decline over the next several quarters as
enhancements to the PCS network focus on success-based spending to
address capacity issues, followed by reduced spending as planned
cable network upgrades are completed. Cash and cash equivalents as
of September 30, 2009 were $14.9 million, up from $5.2 million at
December 31, 2008. The Company made scheduled repayments against
debt facilities of $1.1 million during the third quarter. At
September 30, 2009, the debt/equity ratio was 0.17; and debt as a
percent of total assets was 11%. The amount available to the
Company through its delayed draw term loan facility was $37.3
million as of September 30, 2009. Draws against this facility can
be made through December 31, 2009. The Company continues to
progress towards completing the sale of its Converged Services
operations. The Company's Board of Directors declared a cash
dividend of $0.32 per share, payable December 1, 2009 to
shareholders of record on November 10, 2009. This represents an
increase of $0.02 per share, or 7%, over the 2008 dividend. About
Shenandoah Telecommunications Shenandoah Telecommunications Company
is a holding company that provides a broad range of
telecommunications services through its operating subsidiaries. The
Company is traded on the NASDAQ Global Select Market under the
symbol "SHEN." The Company's operating subsidiaries provide local
and long distance telephone, Internet and data services, cable
television, wireless voice and data services, alarm monitoring, and
telecommunications equipment, along with many other associated
solutions in the Mid-Atlantic United States. Teleconference
Information: Wednesday, November 4, 2009 9:00 A. M. (ET) Domestic
Dial in number: 1-800-441-0022 International Dial in number:
1-719-325-2106 Audio webcast: http://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. SHENANDOAH
TELECOMMUNICATIONS COMPANY SUMMARY FINANCIAL INFORMATION
(unaudited) (In thousands) Condensed Consolidated Balance Sheets
------------------------------------- September 30, December 31,
2009 2008 ---- ---- Cash and cash equivalents $14,918 $5,240 Other
current assets 35,886 67,181 Investments 8,666 8,388 Property,
plant and equipment 367,325 328,172 Less accumulated depreciation
and amortization 172,447 151,695 ------- ------- Net property,
plant and equipment 194,878 176,477 Other assets, net 8,649 9,551
----- ----- Total assets $262,997 $266,837 ======== ========
Current liabilities, exclusive of current maturities of long-term
debt of $6,357 and $4,399, respectively $23,206 $19,986 Long-term
debt, including current maturities 29,075 41,359 Total other
liabilities 34,575 39,180 Total shareholders' equity 176,141
166,312 ------- ------- Total liabilities and shareholders' equity
$262,997 $266,837 ======== ======== SHENANDOAH TELECOMMUNICATIONS
COMPANY SUMMARY FINANCIAL INFORMATION (unaudited) (In thousands,
except per share amounts) Condensed Consolidated Statements of
Income ------------------------------------------- Three months
ended Nine months ended September 30, September 30, -------------
------------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenues
$40,115 $37,408 $120,356 $107,304 Cost of goods and services 13,703
10,712 39,452 31,394 Selling, general and administrative 7,692
7,724 22,569 21,052 Depreciation & amortization 8,151 6,484
24,116 19,304 ----- ----- ------ ------ Operating expenses 29,546
24,920 86,137 71,750 ------ ------ ------ ------ Operating income
10,569 12,488 34,219 35,554 Interest expense (193) (103) (1,128)
(783) Other income (expense), net 296 (233) 246 (108) --- ---- ---
---- Income from continuing operations before income taxes 10,672
12,152 33,337 34,663 Income tax expense 4,326 4,774 14,019 13,881
----- ----- ------ ------ Net income from continuing operations
$6,346 $7,378 $19,318 $20,782 Loss from discontinued operations,
net of taxes (39) (636) (10,484) (2,128) --- ---- ------- ------
Net income $6,307 $6,742 $8,834 $18,654 ====== ====== ======
======= Basic and diluted income (loss) per share: Net income from
continuing operations $0.27 $0.31 $0.81 $0.88 Loss from
discontinued operations - (0.03) (0.44) (0.09) --- ----- -----
----- Net income $0.27 $0.28 $0.37 $0.79 ===== ===== ===== =====
DATASOURCE: Shenandoah Telecommunications Company CONTACT: Adele M.
Skolits of Shenandoah Telecommunications Company, +1-540-984-5161
Web Site: http://www.shentel.com/
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