Shenandoah Telecommunications Company Reports First Quarter 2022 Results | News

EDINBURGH, Va., April 28, 2022 (GLOBE NEWSWIRE) — Shenandoah Telecommunications Company (“Shentel”) (Nasdaq: SHEN) announced first quarter 2022 financial and operating results.

Strong points

Revenue increased 7.9% to $64.4 million from the same period a year ago.

“We are pleased with our progress in executing our fiber-first broadband strategy with another record quarter for Glo Fiber net additions and overages,” said President and Chief Executive Officer Christopher E. English. “While revenue growth was solid, our increased operating expenses negatively impacted margins as we improved employee compensation and upgraded our back-office systems. We expect margins to improve in the second half of 2022 as we implement our cost reduction initiatives to reduce costs outside of the business.”

Shentel’s first quarter earnings conference call will be webcast at 8:00 a.m. ET on Friday, April 29, 2022. The webcast and related materials will be available on Shentel’s Investor Relations website at address

Consolidated results for the first quarter of 2022

First-quarter 2022 revenue increased 7.9% to $64.4 million, compared to first-quarter 2021, driven by 8.3% revenue growth in the broadband segment and 3 .9% in the tower segment. Loss from continuing operations per share was (0.01) in Q1 2022 compared to earnings per share from continuing operations of $0.06 in Q1 2021, primarily due to higher stock compensation expense . Adjusted EBITDA in the first quarter of 2022 increased by 2.4% to reach $17.4 million, compared to the first quarter of 2021, mainly due to the 18.2% decrease in corporate expenses due to lower compensation expense resulting from the reduction in headcount in 2021 and lower professional fees.


As of March 31, 2022, the total number of broadband data revenue-generating units (“RGUs”) was 122,753, representing year-over-year growth of 14.1%. Legacy cable, Glo Fiber and Beam penetration was 51%, 15% and 6%, respectively, compared to 48%, 16% and 3%, respectively, as of March 31, 2021. The total number of Glo Fiber and Beam passes increased increased year on year. year of about 59,200 and 12,400, respectively. Small and medium-sized business (“SMB”) revenue from a 14.1% increase in broadband data RGUs. . Maintenance increased due to higher cable replacement costs, higher gasoline, field engineering, and software costs. Compensation increased due to increased headcount to support the expansion of our Glo Fiber network, wage and salary increases, and rising medical benefit costs. , primarily due to a $1.0 million increase in compensation, $0.7 million in software and professional services costs due to upgrades to our ERP, OSS and CRM systems, and $0.5 million in advertising to support Glo Fiber’s expansion. Compensation costs increased primarily due to increased headcount to support Glo Fiber’s expansion, salary increases and medical benefit costs. Amortization increased by $1.1 million or 9.5%, compared to the three months ended March 31, 2021, primarily as a result of the expansion of our Glo Fiber network. Broadband operating income in the first quarter of 2022 was $8.2 million, compared to $10.3 million in the first quarter of 2021. Broadband adjusted EBITDA in the first quarter of 2022 decreased by 5.4% to reach $21.1 million, compared to $22.3 million for the first quarter of 2021.


Tower revenue in the first quarter of 2022 increased by 3.9% to $4.8 million compared to the first quarter of 2021. The number of tenants increased by 5.6% to 468, partially offset by a 3.6% decline in average rental income per tenant. Tower operating income in the first quarter of 2022 was $2.8 million, compared to $2.7 million in the first quarter of 2021. Tower adjusted EBITDA in the first quarter of 2022 was in line with the first quarter of 2021 at $3.2 million for both periods.

other information

As of March 31, 2022, our cash and cash equivalents totaled $54.0 million and availability under our revolving line of credit and deferred draw term loans was $400.0 million, for a total available cash of $454.0 million. Capital expenditures were $45.7 million for the quarter ended March 31, 2022, compared to $39.5 million for the comparable period of 2021. The $6.2 million increase in capital expenditures was mainly due to increased spending in the broadband segment driven by the expansion of our Glo Fiber network.

Conference call and webcast

Conference Call Information:

Date: April 29, 2022 Time: 8:00 a.m. (ET) Call number: 1-888-695-7639

Password: 2869853 Audio webcast:

An audio replay of the call will be available approximately two hours after the call ends, through May 29, 2022 by calling (855) 859-2056.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company (Shenandoah Telecommunications Company (Shentel) provides broadband services through its state-of-the-art high-speed wired, fiber optic and fixed wireless networks to customers in the Mid-Atlantic United States The Company’s services include: high-speed Internet, video and voice; fiber optic Ethernet, wavelength and rental; and tower colocation rental. The Company has an extensive regional network with more than 7,600 miles of fiber route and over 220 macro cell towers.For more information, please visit

This press release contains forward-looking statements about Shentel relating to, among other things, its business strategy, prospects and financial condition. These statements can be identified by the use of forward-looking words such as “believes”, “believes”, “expects”, “intends”, “may”, “will”, “should”, ” could” or “anticipates”. ” or the negative or other variation of these words or similar words, or by discussions of strategy or risks and uncertainties. Forward-looking statements are based on management’s current beliefs, assumptions and expectations and may include comments about Shentel’s beliefs and expectations regarding future events and trends affecting its business which are necessarily subject to uncertainties, many of which are beyond Shentel’s control. Although management believes that the expectations reflected in the forward-looking statements are reasonable, the forward-looking statements are not, and should not be relied upon as, guarantees of future performance or results, and they will not necessarily prove to be accurate indications. the times at which such performance or results will be achieved, and actual results may differ materially from those contained or implied by the forward-looking statements due to a variety of factors. A discussion of other factors that could 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. These factors may include natural disasters, pandemics and epidemics of contagious diseases and other adverse public health developments, such as COVID-19, changes in general economic conditions, including high inflation, increases costs, regulatory changes 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 these statements to reflect current events or circumstances after the date hereof, or to reflect the occurrence of unforeseen events, except as required by law.

CONTACTS: Shenandoah Telecommunications Company Jim Volk Senior Vice President and Chief Financial Officer 540-984-5168 [email protected]



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, other income (expense), net, interest income , interest expense, income tax expense (benefit), stock-based compensation expense, transaction costs related to acquisition and disposal events (including professional advisory fees, integration costs and related compensation issues), restructuring charges, tax on the vesting and exercise events of stock awards 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.

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 additional measures of performance to assess operating efficiency and assess its ability to grow revenue while controlling expense growth and the scalability of the revenue growth strategy. activities of the Company. The Company believes that the exclusion of eliminated expense and revenue items in the calculation of Adjusted EBITDA and Adjusted EBITDA margin provides management and investors with a useful measure for period-to-period comparisons. other of the Company’s principal operating results by excluding items that are not comparable between reporting periods or that do not otherwise relate to the Company’s ongoing activities. Accordingly, the Company believes that Adjusted EBITDA and Adjusted EBITDA margin provide useful information for investors and others to understand and evaluate the Company’s results of operations. However, the 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 analyzing our financial results. as presented 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.

Sector results

Quarter ended March 31, 2022:

Quarter ended March 31, 2021:

Additional information

Broadband operating statistics

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Tower operating statistics

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Sean B. Jackson