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Shenandoah Telecommunications Company Reports Second Quarter 2022 Results

·18 minuto per la lettura
Shenandoah Telecommunications Co
Shenandoah Telecommunications Co

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% over the second quarter 2021 and 38.9% over the first quarter 2022.

  • Glo Fiber homes and businesses passed grew 20% sequentially to approximately 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. We now 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. ET on Wednesday, August 3, 2022. The webcast and related materials will be available on 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 page of 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


SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(in thousands, except per share amounts)

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2022

 

2021

 

2022

 

2021

Service revenue and other

$

66,021

 

 

$

60,700

 

$

130,435

 

 

$

120,391

Operating expenses:

 

 

 

 

 

 

 

Cost of services exclusive of depreciation and amortization

 

26,756

 

 

 

24,648

 

 

53,095

 

 

 

48,072

Selling, general and administrative

 

23,090

 

 

 

20,320

 

 

46,925

 

 

 

40,473

Restructuring expense

 

454

 

 

 

43

 

 

390

 

 

 

661

Impairment expense

 

4,068

 

 

 

 

 

4,407

 

 

 

99

Depreciation and amortization

 

14,790

 

 

 

13,299

 

 

29,135

 

 

 

26,466

Total operating expenses

 

69,158

 

 

 

58,310

 

 

133,952

 

 

 

115,771

Operating (loss) income

 

(3,137

)

 

 

2,390

 

 

(3,517

)

 

 

4,620

Other (expense) income:

 

 

 

 

 

 

 

Other (expense) income, net

 

(589

)

 

 

1,338

 

 

(759

)

 

 

2,938

(Loss) income from continuing operations before income taxes

 

(3,726

)

 

 

3,728

 

 

(4,276

)

 

 

7,558

Income tax (benefit) expense

 

(501

)

 

 

2,103

 

 

(448

)

 

 

2,988

(Loss) income from continuing operations

 

(3,225

)

 

 

1,625

 

 

(3,828

)

 

 

4,570

Income from discontinued operations, net of tax

 

 

 

 

51,566

 

 

 

 

 

100,038

Net (loss) income

 

(3,225

)

 

 

53,191

 

 

(3,828

)

 

 

104,608

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

Unrealized income on interest rate hedge, net of tax

 

 

 

 

313

 

 

 

 

 

1,086

Comprehensive (loss) income

$

(3,225

)

 

$

53,504

 

$

(3,828

)

 

$

105,694

 

 

 

 

 

 

 

 

Net (loss) income per share, basic and diluted:

 

 

 

 

 

 

 

Basic - (Loss) income from continuing operations

$

(0.06

)

 

$

0.03

 

$

(0.08

)

 

$

0.09

Basic - Income from discontinued operations, net of tax

$

 

 

$

1.03

 

$

 

 

$

2.00

Basic net (loss) income per share

$

(0.06

)

 

$

1.06

 

$

(0.08

)

 

$

2.09

 

 

 

 

 

 

 

 

Diluted - (Loss) income from continuing operations

$

(0.06

)

 

$

0.03

 

$

(0.08

)

 

$

0.09

Diluted - Income from discontinued operations, net of tax

$

 

 

$

1.03

 

$

 

 

$

2.00

Diluted net (loss) income per share

$

(0.06

)

 

$

1.06

 

$

(0.08

)

 

$

2.09

 

 

 

 

 

 

 

 

Weighted average shares outstanding, basic

 

50,157

 

 

 

49,945

 

 

50,133

 

 

 

49,945

Weighted average shares outstanding, diluted

 

50,157

 

 

 

50,075

 

 

50,133

 

 

 

50,067



SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

 

June 30,
2022

 

December 31,
2021

 

 

 

 

Cash and cash equivalents

$

33,335

 

$

84,344

Other current assets

 

76,656

 

 

82,023

Current assets held for sale

 

19,821

 

 

Total current assets

 

129,812

 

 

166,367

 

 

 

 

Investments

 

12,897

 

 

13,661

Property, plant and equipment, net

 

609,785

 

 

554,162

Intangible assets, net and goodwill

 

69,612

 

 

69,853

Operating lease right-of-use assets

 

55,872

 

 

56,414

Deferred charges and other assets, net

 

13,439

 

 

10,298

Total assets

$

891,417

 

$

890,733

 

 

 

 

Current liabilities held for sale

 

3,843

 

 

38

Total other current liabilities

 

67,211

 

 

67,252

Non-current liabilities held for sale

 

 

 

3,807

Total other long-term liabilities

 

176,993

 

 

177,361

Total shareholders’ equity

 

643,370

 

 

642,275

Total liabilities and shareholders’ equity

$

891,417

 

$

890,733



SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES

 

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

(in thousands)

Six Months Ended
June 30,

 

2022

 

2021

Cash flows from operating activities:

 

 

 

Net (loss) income

$

(3,828

)

 

$

104,608

 

Income from discontinued operations, net of tax

 

 

 

 

100,038

 

(Loss) income from continuing operations

 

(3,828

)

 

 

4,570

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

29,135

 

 

 

26,466

 

Stock-based compensation expense

 

5,528

 

 

 

834

 

Impairment expense

 

4,407

 

 

 

99

 

Deferred income taxes

 

(392

)

 

 

3,132

 

Other, net

 

1,985

 

 

 

(201

)

Changes in assets and liabilities:

 

 

 

Accounts receivable

 

4,430

 

 

 

4,369

 

Current income taxes

 

 

 

 

(1,305

)

Operating lease assets and liabilities, net

 

414

 

 

 

(428

)

Other assets

 

(1,902

)

 

 

(6,070

)

Accounts payable

 

127

 

 

 

560

 

Other deferrals and accruals

 

(1,180

)

 

 

(3,852

)

Net cash provided by operating activities - continuing operations

 

38,724

 

 

 

28,174

 

Net cash provided by operating activities - discontinued operations

 

 

 

 

125,011

 

Net cash provided by operating activities

 

38,724

 

 

 

153,185

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(88,706

)

 

 

(79,562

)

Proceeds from sale of assets and other

 

279

 

 

 

189

 

Net cash used in investing activities - continuing operations

 

(88,427

)

 

 

(79,373

)

Net cash used in investing activities - discontinued operations

 

 

 

 

(928

)

Net cash used in investing activities

 

(88,427

)

 

 

(80,301

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Taxes paid for equity award issuances

 

(835

)

 

 

(1,627

)

Payments for debt issuance costs

 

 

 

 

(53

)

Payments for financing arrangements and other

 

(471

)

 

 

(751

)

Net cash used in financing activities - continuing operations

 

(1,306

)

 

 

(2,431

)

Net cash used in financing activities - discontinued operations

 

 

 

 

(17,061

)

Net cash used in financing activities

 

(1,306

)

 

 

(19,492

)

Net (decrease) increase in cash and cash equivalents

 

(51,009

)

 

 

53,392

 

Cash and cash equivalents, beginning of period

 

84,344

 

 

 

195,397

 

Cash and cash equivalents, end of period

$

33,335

 

 

$

248,789

 

 

 

 

 

Supplemental Disclosures of Cash Flow Information

 

 

 

Interest paid

$

 

 

$

(7,740

)

Income taxes paid

$

 

 

$

(20,954

)



Non-GAAP Financial Measures
Adjusted EBITDA

The Company defines Adjusted EBITDA as net income (loss) 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 income (loss) 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. 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 Ended June 30, 2022

 

 

 

 

 

 

 

 

(in thousands)

 

Broadband

 

Tower

 

Corporate & Eliminations

 

Consolidated

Net income (loss) from continuing operations

 

$

4,042

 

 

$

2,285

 

 

$

(9,552

)

 

$

(3,225

)

Depreciation and amortization

 

 

13,396

 

 

 

633

 

 

 

761

 

 

 

14,790

 

Impairment expense

 

 

4,068

 

 

 

 

 

 

 

 

 

4,068

 

Other expense (income), net

 

 

65

 

 

 

 

 

 

524

 

 

 

589

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

(501

)

 

 

(501

)

EBITDA

 

 

21,571

 

 

 

2,918

 

 

 

(8,768

)

 

 

15,721

 

Stock-based compensation

 

 

 

 

 

 

 

 

2,385

 

 

 

2,385

 

Restructuring charges and other

 

 

443

 

 

 

 

 

 

11

 

 

 

454

 

Adjusted EBITDA

 

$

22,014

 

 

$

2,918

 

 

$

(6,372

)

 

$

18,560

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

36

%

 

 

62

%

 

 

N/A

 

 

 

28

%



Three Months Ended June 30, 2021

 

 

 

 

 

 

 

 

(in thousands)

 

Broadband

 

Tower

 

Corporate & Eliminations

 

Consolidated

Net income (loss) from continuing operations

 

$

8,117

 

 

$

2,509

 

 

$

(9,001

)

 

$

1,625

 

Depreciation and amortization

 

 

11,774

 

 

 

449

 

 

 

1,076

 

 

 

13,299

 

Other expense (income), net

 

 

62

 

 

 

 

 

 

(1,400

)

 

 

(1,338

)

Income tax expense (benefit)

 

 

 

 

 

 

 

 

2,103

 

 

 

2,103

 

EBITDA

 

 

19,953

 

 

 

2,958

 

 

 

(7,222

)

 

 

15,689

 

Stock-based compensation

 

 

 

 

 

 

 

 

192

 

 

 

192

 

Restructuring charges and other

 

 

28

 

 

 

 

 

 

43

 

 

 

71

 

Adjusted EBITDA

 

$

19,981

 

 

$

2,958

 

 

$

(6,987

)

 

$

15,952

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

36

%

 

 

64

%

 

N/A

 

 

26

%



Six Months Ended June 30, 2022

 

 

 

 

 

 

 

 

(in thousands)

 

Broadband

 

Tower

 

Corporate & Eliminations

 

Consolidated

Net income (loss) from continuing operations

 

$

12,169

 

 

$

5,038

 

 

$

(21,035

)

 

$

(3,828

)

Depreciation and amortization

 

 

25,933

 

 

 

1,117

 

 

 

2,085

 

 

 

29,135

 

Impairment expense

 

 

4,407

 

 

 

 

 

 

 

 

 

4,407

 

Other expense (income), net

 

 

119

 

 

 

 

 

 

640

 

 

 

759

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

(448

)

 

 

(448

)

EBITDA

 

 

42,628

 

 

 

6,155

 

 

 

(18,758

)

 

 

30,025

 

Stock-based compensation

 

 

 

 

 

 

 

 

5,528

 

 

 

5,528

 

Restructuring charges and other

 

 

460

 

 

 

 

 

 

(70

)

 

 

390

 

Adjusted EBITDA

 

$

43,088

 

 

$

6,155

 

 

$

(13,300

)

 

$

35,943

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

36

%

 

 

64

%

 

N/A

 

 

28

%



Six Months Ended June 30, 2021

 

 

 

 

 

 

 

 

(in thousands)

 

Broadband

 

Tower

 

Corporate & Eliminations

 

Consolidated

Net income (loss) from continuing operations

 

$

18,333

 

 

$

5,211

 

 

$

(18,974

)

 

$

4,570

 

Depreciation and amortization

 

 

23,437

 

 

 

930

 

 

 

2,099

 

 

 

26,466

 

Impairment expense

 

 

99

 

 

 

 

 

 

 

 

 

99

 

Other expense (income), net

 

 

132

 

 

 

 

 

 

(3,070

)

 

 

(2,938

)

Income tax expense (benefit)

 

 

 

 

 

 

 

 

2,988

 

 

 

2,988

 

EBITDA

 

 

42,001

 

 

 

6,141

 

 

 

(16,957

)

 

 

31,185

 

Stock-based compensation

 

 

 

 

 

 

 

 

834

 

 

 

834

 

Restructuring charges and other

 

 

248

 

 

 

 

 

 

666

 

 

 

914

 

Adjusted EBITDA

 

$

42,249

 

 

$

6,141

 

 

$

(15,457

)

 

$

32,933

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

38

%

 

 

66

%

 

N/A

 

 

27

%



Segment Results

Three Months Ended June 30, 2022:

(in thousands)

Broadband

 

Tower

 

Corporate & Eliminations

 

Consolidated

External revenue

 

 

 

 

 

 

 

Residential & SMB

$

47,899

 

$

 

$

 

 

$

47,899

 

Commercial Fiber

 

9,340

 

 

 

 

 

 

 

9,340

 

RLEC & Other

 

4,124

 

 

 

 

 

 

 

4,124

 

Tower lease

 

 

 

4,615

 

 

 

 

 

4,615

 

Service revenue and other

 

61,363

 

 

4,615

 

 

 

 

 

65,978

 

Intercompany revenue and other

 

49

 

 

87

 

 

(93

)

 

 

43

 

Total revenue

 

61,412

 

 

4,702

 

 

(93

)

 

 

66,021

 

Operating expenses

 

 

 

 

 

 

 

Cost of services

 

25,440

 

 

1,378

 

 

(62

)

 

 

26,756

 

Selling, general and administrative

 

13,958

 

 

406

 

 

8,726

 

 

 

23,090

 

Restructuring expense

 

443

 

 

 

 

11

 

 

 

454

 

Impairment expense

 

4,068

 

 

 

 

 

 

 

4,068

 

Depreciation and amortization

 

13,396

 

 

633

 

 

761

 

 

 

14,790

 

Total operating expenses

 

57,305

 

 

2,417

 

 

9,436

 

 

 

69,158

 

Operating income (loss)

$

4,107

 

$

2,285

 

$

(9,529

)

 

$

(3,137

)


Three Months Ended June 30, 2021:

(in thousands)

Broadband

 

Tower

 

Corporate & Eliminations

 

Consolidated

External revenue

 

 

 

 

 

 

 

Residential & SMB

$

43,989

 

$

 

$

 

 

$

43,989

Commercial Fiber

 

6,531

 

 

 

 

 

 

 

6,531

RLEC & Other

 

3,605

 

 

 

 

 

 

 

3,605

Tower lease

 

 

 

2,019

 

 

 

 

 

2,019

Service revenue and other

 

54,125

 

 

2,019

 

 

 

 

 

56,144

Intercompany revenue and other

 

2,102

 

 

2,595

 

 

(141

)

 

 

4,556

Total revenue

 

56,227

 

 

4,614

 

 

(141

)

 

 

60,700

Operating expenses

 

 

 

 

 

 

 

Cost of services

 

23,440

 

 

1,318

 

 

(110

)

 

 

24,648

Selling, general and administrative

 

12,806

 

 

338

 

 

7,176

 

 

 

20,320

Restructuring expense

 

27

 

 

 

 

16

 

 

 

43

Depreciation and amortization

 

11,775

 

 

449

 

 

1,075

 

 

 

13,299

Total operating expenses

 

48,048

 

 

2,105

 

 

8,157

 

 

 

58,310

Operating income (loss)

$

8,179

 

$

2,509

 

$

(8,298

)

 

$

2,390


Six Months Ended June 30, 2022:

(in thousands)

Broadband

 

Tower

 

Corporate & Eliminations

 

Consolidated

External revenue

 

 

 

 

 

 

 

Residential & SMB

$

94,812

 

$

 

$

 

 

$

94,812

 

Commercial Fiber

 

18,402

 

 

 

 

 

 

 

18,402

 

RLEC & Other

 

7,813

 

 

 

 

 

 

 

7,813

 

Tower lease

 

 

 

9,361

 

 

 

 

 

9,361

 

Service revenue and other

 

121,027

 

 

9,361

 

 

 

 

 

130,388

 

Intercompany revenue and other

 

99

 

 

188

 

 

(240

)

 

 

47

 

Total revenue

 

121,126

 

 

9,549

 

 

(240

)

 

 

130,435

 

Operating expenses

 

 

 

 

 

 

 

Cost of services

 

50,608

 

 

2,670

 

 

(183

)

 

 

53,095

 

Selling, general and administrative

 

27,430

 

 

724

 

 

18,771

 

 

 

46,925

 

Restructuring expense

 

460

 

 

 

 

(70

)

 

 

390

 

Impairment expense

 

4,407

 

 

 

 

 

 

 

4,407

 

Depreciation and amortization

 

25,933

 

 

1,117

 

 

2,085

 

 

 

29,135

 

Total operating expenses

 

108,838

 

 

4,511

 

 

20,603

 

 

 

133,952

 

Operating income (loss)

$

12,288

 

$

5,038

 

$

(20,843

)

 

$

(3,517

)


Six Months Ended June 30, 2021:

(in thousands)

Broadband

 

Tower

 

Corporate & Eliminations

 

Consolidated

External revenue

 

 

 

 

 

 

 

Residential & SMB

$

86,919

 

$

 

$

 

 

$

86,919

Commercial Fiber

 

12,916

 

 

 

 

 

 

 

12,916

RLEC & Other

 

7,236

 

 

 

 

 

 

 

7,236

Tower lease

 

 

 

4,169

 

 

 

 

 

4,169

Service revenue and other

 

107,071

 

 

4,169

 

 

 

 

 

111,240

Intercompany revenue and other

 

4,310

 

 

5,110

 

 

(269

)

 

 

9,151

Total revenue

 

111,381

 

 

9,279

 

 

(269

)

 

 

120,391

Operating expenses

 

 

 

 

 

 

 

Cost of services

 

45,717

 

 

2,566

 

 

(211

)

 

 

48,072

Selling, general and administrative

 

23,531

 

 

572

 

 

16,370

 

 

 

40,473

Restructuring expense

 

132

 

 

 

 

529

 

 

 

661

Impairment expense

 

99

 

 

 

 

 

 

 

99

Depreciation and amortization

 

23,437

 

 

930

 

 

2,099

 

 

 

26,466

Total operating expenses

 

92,916

 

 

4,068

 

 

18,787

 

 

 

115,771

Operating income (loss)

$

18,465

 

$

5,211

 

$

(19,056

)

 

$

4,620



Supplemental Information

Broadband Operating Statistics

 

June 30,
2022

 

June 30,
2021

Broadband homes and businesses passed (1)

324,186

 

 

257,155

 

Incumbent Cable

211,681

 

 

210,787

 

Glo Fiber

112,505

 

 

46,368

 

 

 

 

 

Residential & Small and Medium Business ("SMB") RGUs:

 

 

 

Broadband Data

125,003

 

 

111,475

 

Incumbent Cable

107,878

 

 

103,465

 

Glo Fiber

17,125

 

 

7,169

 

Video

49,027

 

 

51,355

 

Voice

39,535

 

 

34,664

 

Total Residential & SMB RGUs (excludes RLEC)

213,565

 

 

197,494

 

 

 

 

 

Residential & SMB Penetration (2)

 

 

 

Broadband Data

38.6

%

 

43.3

%

Incumbent Cable

51.0

%

 

49.1

%

Glo Fiber

15.2

%

 

15.5

%

Video

15.1

%

 

20.0

%

Voice

12.9

%

 

14.4

%

 

 

 

 

Fiber route miles

7,906

 

 

7,041

 

Total fiber miles (3)

589,923

 

 

440,236

 

______________________________________________________
(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.



Broadband - Residential and SMB ARPU

 

 

 

 

 

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2022

 

2021

 

2022

 

2021

Residential and SMB Revenue:

 

 

 

 

 

 

 

Broadband

$

29,568

 

$

25,571

 

 

$

58,217

 

$

50,103

 

Incumbent Cable

 

26,123

 

 

24,177

 

 

 

51,986

 

 

47,641

 

Glo Fiber

 

3,445

 

 

1,394

 

 

 

6,231

 

 

2,462

 

Video

 

15,210

 

 

15,611

 

 

 

30,551

 

 

31,263

 

Voice

 

2,994

 

 

2,893

 

 

 

5,910

 

 

5,792

 

Discounts, adjustments and other

 

127

 

 

(86

)

 

 

134

 

 

(239

)

Total Revenue

$

47,899

 

$

43,989

 

 

$

94,812

 

$

86,919

 

 

 

 

 

 

 

 

 

Average RGUs:

 

 

 

 

 

 

 

Broadband Data

 

123,153

 

 

108,996

 

 

 

121,832

 

 

106,954

 

Incumbent Cable

 

107,738

 

 

102,688

 

 

 

107,878

 

 

101,403

 

Glo Fiber

 

15,415

 

 

6,308

 

 

 

13,954

 

 

5,551

 

Video

 

49,146

 

 

51,715

 

 

 

49,295

 

 

52,076

 

Voice

 

38,463

 

 

33,993

 

 

 

36,650

 

 

33,462

 

 

 

 

 

 

 

 

 

ARPU: (1)

 

 

 

 

 

 

 

Broadband

$

79.94

 

$

78.17

 

 

$

80.02

 

$

78.05

 

Incumbent Cable

$

80.82

 

$

78.48

 

 

$

80.85

 

$

78.30

 

Glo Fiber

$

74.49

 

$

73.66

 

 

$

74.42

 

$

73.92

 

Video

$

103.16

 

$

100.62

 

 

$

103.29

 

$

100.06

 

Voice

$

25.95

 

$

28.37

 

 

$

26.88

 

$

28.85

 

______________________________________________________
(1)   Average Revenue Per RGU calculation = (Residential & SMB Revenue * 1,000) / average RGUs / 3 months


Tower Operating Statistics

 

June 30,
2022

 

June 30,
2021

Macro tower sites

223

 

223

Tenants

465

 

448

Average tenants per tower

2.0

 

1.9