We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Shenandoah Telecommunications Company | NASDAQ:SHEN | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 17.485 | 17.14 | 17.94 | 0 | 01:00:00 |
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended
|
June 30, 2020
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from__________ to __________
|
Virginia
|
|
54-1162807
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
Common Stock (No Par Value)
|
SHEN
|
NASDAQ Global Select Market
|
49,852,174
|
(Title of Class)
|
(Trading Symbol)
|
(Name of Exchange on which Registered)
|
(The number of shares of the registrant's common stock outstanding on July 24, 2020)
|
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
|
|
|
Page
Numbers
|
||
PART I.
|
FINANCIAL INFORMATION
|
|
|
|
|
|
|
|
|
Item 1.
|
Financial Statements
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
|
|
|
|
Item 2.
|
||||
|
|
|
|
|
Item 3.
|
||||
|
|
|
|
|
Item 4.
|
||||
|
|
|
|
|
PART II.
|
OTHER INFORMATION
|
|
|
|
|
|
|
|
|
Item 1A.
|
||||
|
|
|
|
|
Item 2.
|
||||
|
|
|
|
|
Item 6.
|
||||
|
|
|
|
|
|
||||
|
|
|
|
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
143,712
|
|
|
$
|
101,651
|
|
Accounts receivable, net of allowance for doubtful accounts of $445 and $533, respectively
|
91,682
|
|
|
63,541
|
|
||
Income taxes receivable
|
4,452
|
|
|
10,306
|
|
||
Inventory, net of allowances of $40 and $66, respectively
|
3,295
|
|
|
5,728
|
|
||
Prepaid expenses and other
|
56,392
|
|
|
60,527
|
|
||
Total current assets
|
299,533
|
|
|
241,753
|
|
||
Investments
|
12,661
|
|
|
12,388
|
|
||
Property, plant and equipment, net
|
703,012
|
|
|
701,514
|
|
||
Intangible assets, net
|
285,081
|
|
|
314,147
|
|
||
Goodwill
|
149,070
|
|
|
149,070
|
|
||
Operating lease right-of-use assets
|
376,912
|
|
|
392,589
|
|
||
Deferred charges and other assets
|
54,311
|
|
|
53,352
|
|
||
Total assets
|
$
|
1,880,580
|
|
|
$
|
1,864,813
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Current maturities of long-term debt, net of unamortized loan fees
|
$
|
31,689
|
|
|
$
|
31,650
|
|
Accounts payable
|
26,702
|
|
|
40,295
|
|
||
Advanced billings and customer deposits
|
8,188
|
|
|
8,358
|
|
||
Accrued compensation
|
13,439
|
|
|
10,075
|
|
||
Current operating lease liabilities
|
45,005
|
|
|
42,567
|
|
||
Accrued liabilities and other
|
20,304
|
|
|
14,391
|
|
||
Total current liabilities
|
145,327
|
|
|
147,336
|
|
||
Long-term debt, less current maturities, net of unamortized loan fees
|
672,601
|
|
|
688,464
|
|
||
Other long-term liabilities:
|
|
|
|
||||
Deferred income taxes
|
144,273
|
|
|
137,567
|
|
||
Asset retirement obligations
|
37,929
|
|
|
36,914
|
|
||
Benefit plan obligations
|
12,247
|
|
|
12,675
|
|
||
Noncurrent operating lease liabilities
|
332,850
|
|
|
352,439
|
|
||
Other liabilities
|
23,896
|
|
|
16,990
|
|
||
Total other long-term liabilities
|
551,195
|
|
|
556,585
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Common stock, no par value, authorized 96,000; 49,852 and 49,671 issued and outstanding at June 30, 2020 and December 31, 2019, respectively
|
—
|
|
|
—
|
|
||
Additional paid in capital
|
44,659
|
|
|
42,110
|
|
||
Retained earnings
|
472,537
|
|
|
430,010
|
|
||
Accumulated other comprehensive (loss) income, net of taxes
|
(5,739
|
)
|
|
308
|
|
||
Total shareholders’ equity
|
511,457
|
|
|
472,428
|
|
||
Total liabilities and shareholders’ equity
|
$
|
1,880,580
|
|
|
$
|
1,864,813
|
|
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
|
|||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|||||||||||||||
(in thousands, except per share amounts)
|
|||||||||||||||
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
Revenue:
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Service revenue and other
|
$
|
159,720
|
|
|
$
|
142,059
|
|
|
$
|
299,908
|
|
|
$
|
285,290
|
|
Equipment revenue
|
9,806
|
|
|
16,855
|
|
|
22,806
|
|
|
32,467
|
|
||||
Total revenue
|
169,526
|
|
|
158,914
|
|
|
322,714
|
|
|
317,757
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of services
|
50,640
|
|
|
49,497
|
|
|
100,205
|
|
|
99,015
|
|
||||
Cost of goods sold
|
9,658
|
|
|
15,874
|
|
|
22,329
|
|
|
30,511
|
|
||||
Selling, general and administrative
|
31,394
|
|
|
27,170
|
|
|
62,385
|
|
|
55,892
|
|
||||
Depreciation and amortization
|
34,832
|
|
|
42,353
|
|
|
71,743
|
|
|
83,532
|
|
||||
Total operating expenses
|
126,524
|
|
|
134,894
|
|
|
256,662
|
|
|
268,950
|
|
||||
Operating income
|
43,002
|
|
|
24,020
|
|
|
66,052
|
|
|
48,807
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(5,044
|
)
|
|
(7,522
|
)
|
|
(11,255
|
)
|
|
(15,476
|
)
|
||||
Other
|
1,573
|
|
|
1,176
|
|
|
2,306
|
|
|
2,463
|
|
||||
Income before income taxes
|
39,531
|
|
|
17,674
|
|
|
57,103
|
|
|
35,794
|
|
||||
Income tax expense
|
10,284
|
|
|
4,524
|
|
|
14,576
|
|
|
8,734
|
|
||||
Net income
|
29,247
|
|
|
13,150
|
|
|
42,527
|
|
|
27,060
|
|
||||
Other comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Unrealized income (loss) on interest rate hedge, net of tax
|
59
|
|
|
(4,212
|
)
|
|
(6,047
|
)
|
|
(6,940
|
)
|
||||
Comprehensive income
|
$
|
29,306
|
|
|
$
|
8,938
|
|
|
$
|
36,480
|
|
|
$
|
20,120
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share, basic and diluted:
|
|
|
|
|
|
|
|
||||||||
Basic net income per share
|
$
|
0.59
|
|
|
$
|
0.26
|
|
|
$
|
0.85
|
|
|
$
|
0.54
|
|
Diluted net income per share
|
$
|
0.58
|
|
|
$
|
0.26
|
|
|
$
|
0.85
|
|
|
$
|
0.54
|
|
Weighted average shares outstanding, basic
|
49,902
|
|
|
49,848
|
|
|
49,878
|
|
|
49,812
|
|
||||
Weighted average shares outstanding, diluted
|
50,082
|
|
|
50,142
|
|
|
50,039
|
|
|
50,118
|
|
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
|
|||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
|
|||||||||||||||||||
(in thousands)
|
|||||||||||||||||||
|
|
Shares of Common Stock (no par value)
|
|
Additional Paid in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total
|
|||||||||
Balance, March 31, 2020
|
|
49,842
|
|
|
$
|
43,158
|
|
|
$
|
443,290
|
|
|
$
|
(5,798
|
)
|
|
$
|
480,650
|
|
Net income
|
|
—
|
|
|
—
|
|
|
29,247
|
|
|
—
|
|
|
29,247
|
|
||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
59
|
|
||||
Stock-based compensation
|
|
15
|
|
|
1,731
|
|
|
—
|
|
|
—
|
|
|
1,731
|
|
||||
Common stock issued
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards
|
|
(5
|
)
|
|
(237
|
)
|
|
—
|
|
|
—
|
|
|
(237
|
)
|
||||
Balance, June 30, 2020
|
|
49,852
|
|
|
$
|
44,659
|
|
|
$
|
472,537
|
|
|
$
|
(5,739
|
)
|
|
$
|
511,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Shares of Common Stock (no par value)
|
|
Additional Paid in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total
|
|||||||||
Balance, December 31, 2019
|
|
49,671
|
|
|
$
|
42,110
|
|
|
$
|
430,010
|
|
|
$
|
308
|
|
|
$
|
472,428
|
|
Net income
|
|
—
|
|
|
—
|
|
|
42,527
|
|
|
—
|
|
|
42,527
|
|
||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,047
|
)
|
|
(6,047
|
)
|
||||
Stock-based compensation
|
|
152
|
|
|
4,716
|
|
|
—
|
|
|
—
|
|
|
4,716
|
|
||||
Common stock issued
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards
|
|
(47
|
)
|
|
(2,182
|
)
|
|
—
|
|
|
—
|
|
|
(2,182
|
)
|
||||
Common stock issued to acquire non-controlling interest in nTelos
|
|
76
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance, June 30, 2020
|
|
49,852
|
|
|
$
|
44,659
|
|
|
$
|
472,537
|
|
|
$
|
(5,739
|
)
|
|
$
|
511,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Shares of Common Stock (no par value)
|
|
Additional Paid in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total
|
|||||||||
Balance, March 31, 2019
|
|
49,844
|
|
|
$
|
46,641
|
|
|
$
|
402,406
|
|
|
$
|
5,552
|
|
|
$
|
454,599
|
|
Net income
|
|
—
|
|
|
—
|
|
|
13,150
|
|
|
—
|
|
|
13,150
|
|
||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,212
|
)
|
|
(4,212
|
)
|
||||
Stock-based compensation
|
|
17
|
|
|
695
|
|
|
—
|
|
|
—
|
|
|
695
|
|
||||
Stock options exercised
|
|
1
|
|
|
(94
|
)
|
|
—
|
|
|
—
|
|
|
(94
|
)
|
||||
Common stock issued
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards
|
|
(5
|
)
|
|
(112
|
)
|
|
—
|
|
|
—
|
|
|
(112
|
)
|
||||
Balance, June 30, 2019
|
|
49,857
|
|
|
$
|
47,138
|
|
|
$
|
415,556
|
|
|
$
|
1,340
|
|
|
$
|
464,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Shares of Common Stock (no par value)
|
|
Additional Paid in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total
|
|||||||||
Balance, December 31, 2018
|
|
49,630
|
|
|
$
|
47,456
|
|
|
$
|
388,496
|
|
|
$
|
8,280
|
|
|
$
|
444,232
|
|
Net income
|
|
—
|
|
|
—
|
|
|
27,060
|
|
|
—
|
|
|
27,060
|
|
||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,940
|
)
|
|
(6,940
|
)
|
||||
Stock-based compensation
|
|
184
|
|
|
2,497
|
|
|
—
|
|
|
—
|
|
|
2,497
|
|
||||
Stock options exercised
|
|
29
|
|
|
81
|
|
|
—
|
|
|
—
|
|
|
81
|
|
||||
Common stock issued
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards
|
|
(62
|
)
|
|
(2,912
|
)
|
|
—
|
|
|
—
|
|
|
(2,912
|
)
|
||||
Common stock issued to acquire non-controlling interest in nTelos
|
|
76
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance, June 30, 2019
|
|
49,857
|
|
|
$
|
47,138
|
|
|
$
|
415,556
|
|
|
$
|
1,340
|
|
|
$
|
464,034
|
|
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
|
|
|
|
||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
||||
(in thousands)
|
|
|
|
||||
|
Six Months Ended
June 30, 2020 |
||||||
|
2020
|
|
2019
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
42,527
|
|
|
$
|
27,060
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation
|
63,258
|
|
|
72,737
|
|
||
Amortization of intangible assets
|
9,336
|
|
|
10,795
|
|
||
Accretion of asset retirement obligations
|
816
|
|
|
708
|
|
||
Bad debt expense
|
436
|
|
|
764
|
|
||
Stock based compensation expense, net of amount capitalized
|
4,520
|
|
|
2,307
|
|
||
Deferred income taxes
|
8,714
|
|
|
3,434
|
|
||
Gain from patronage and investments
|
(236
|
)
|
|
(2,081
|
)
|
||
Amortization of long-term debt issuance costs
|
1,343
|
|
|
1,648
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(28,573
|
)
|
|
(4,561
|
)
|
||
Inventory, net
|
2,433
|
|
|
(1,301
|
)
|
||
Current income taxes
|
5,854
|
|
|
1,138
|
|
||
Operating lease right-of-use assets
|
21,178
|
|
|
25,389
|
|
||
Waived management fee
|
19,707
|
|
|
19,320
|
|
||
Other assets
|
1,271
|
|
|
(8,679
|
)
|
||
Accounts payable
|
(10,331
|
)
|
|
6,311
|
|
||
Lease liabilities
|
(22,652
|
)
|
|
(21,880
|
)
|
||
Other deferrals and accruals
|
9,338
|
|
|
(3,477
|
)
|
||
Net cash provided by operating activities
|
128,939
|
|
|
129,632
|
|
||
|
|
|
|
||||
Cash flows used in investing activities:
|
|
|
|
||||
Capital expenditures
|
$
|
(66,626
|
)
|
|
(79,124
|
)
|
|
Cash disbursed for acquisitions
|
—
|
|
|
(10,000
|
)
|
||
Cash disbursed for deposit on FCC spectrum leases
|
(1,200
|
)
|
|
—
|
|
||
Proceeds from sale of assets and other
|
286
|
|
|
105
|
|
||
Net cash used in investing activities
|
(67,540
|
)
|
|
(89,019
|
)
|
||
|
|
|
|
||||
Cash flows used in financing activities:
|
|
|
|
||||
Principal payments on long-term debt
|
$
|
(17,061
|
)
|
|
(24,777
|
)
|
|
Taxes paid for equity award issuances
|
(2,182
|
)
|
|
(2,912
|
)
|
||
Other
|
(95
|
)
|
|
81
|
|
||
Net cash used in financing activities
|
(19,338
|
)
|
|
(27,608
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
42,061
|
|
|
13,005
|
|
||
Cash and cash equivalents, beginning of period
|
101,651
|
|
|
85,086
|
|
||
Cash and cash equivalents, end of period
|
$
|
143,712
|
|
|
$
|
98,091
|
|
•
|
Prepaid and other assets, as of December 31, 2019, were understated by $2.7 million, deferred tax liabilities were understated by $0.7 million, and retained earnings were understated by $2.0 million as the result of a failure to properly account for handsets that were utilized as demo phones in certain wireless retail stores within our area of operation. All of the impact to retained earnings is attributable to 2017 and prior years.
|
•
|
Property, plant and equipment, net, and deferred income tax liabilities as of December 31, 2019 were understated by $1.4 million and $0.4 million, respectively. Depreciation expense was overstated by $1.4 million for the year and quarter ended December 31, 2019. Income tax expense and net income were understated by $0.4 million and $1.0 million, respectively, for the year and quarter ended December 31, 2019.
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(in thousands)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Beginning Balance
|
|
$
|
86,198
|
|
|
$
|
70,371
|
|
|
$
|
84,663
|
|
|
$
|
65,674
|
|
Contract payments
|
|
14,937
|
|
|
17,565
|
|
|
33,182
|
|
|
35,716
|
|
||||
Contract amortization against revenue
|
|
(17,456
|
)
|
|
(14,147
|
)
|
|
(34,166
|
)
|
|
(27,601
|
)
|
||||
Ending Balance
|
|
$
|
83,679
|
|
|
$
|
73,789
|
|
|
$
|
83,679
|
|
|
$
|
73,789
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(in thousands)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Beginning Balance
|
|
$
|
11,663
|
|
|
$
|
10,409
|
|
|
$
|
11,005
|
|
|
$
|
10,091
|
|
Contract payments
|
|
2,248
|
|
|
1,457
|
|
|
3,933
|
|
|
3,156
|
|
||||
Contract amortization
|
|
(1,131
|
)
|
|
(1,390
|
)
|
|
(2,158
|
)
|
|
(2,771
|
)
|
||||
Ending Balance
|
|
$
|
12,780
|
|
|
$
|
10,476
|
|
|
$
|
12,780
|
|
|
$
|
10,476
|
|
(in thousands)
|
June 30,
2020 |
|
December 31,
2019 |
||||
SERP investments at fair value
|
$
|
2,096
|
|
|
$
|
2,278
|
|
Cost method investments
|
9,993
|
|
|
9,497
|
|
||
Equity method investments
|
572
|
|
|
613
|
|
||
Total investments
|
$
|
12,661
|
|
|
$
|
12,388
|
|
($ in thousands)
|
Estimated Useful Lives
|
|
June 30,
2020 |
|
December 31,
2019 |
|||||||
Land
|
|
|
|
|
|
$
|
7,485
|
|
|
$
|
6,976
|
|
Buildings and structures
|
10
|
-
|
40
|
years
|
|
239,772
|
|
|
232,730
|
|
||
Cable and fiber
|
15
|
-
|
40
|
years
|
|
354,819
|
|
|
334,260
|
|
||
Equipment and software
|
3
|
-
|
20
|
years
|
|
887,584
|
|
|
867,898
|
|
||
Plant in service
|
|
|
|
|
|
1,489,660
|
|
|
1,441,864
|
|
||
Plant under construction
|
|
|
|
|
|
71,388
|
|
|
56,827
|
|
||
Total property, plant and equipment
|
|
|
|
|
|
1,561,048
|
|
|
1,498,691
|
|
||
Less: accumulated amortization and depreciation
|
|
|
|
|
|
858,036
|
|
|
797,177
|
|
||
Property, plant and equipment, net
|
|
|
|
|
|
$
|
703,012
|
|
|
$
|
701,514
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||||||||||
(in thousands)
|
Gross
Carrying Amount |
|
Accumulated Amortization and Other
|
|
Net
|
|
Gross
Carrying Amount |
|
Accumulated Amortization and Other
|
|
Net
|
||||||||||||
Indefinite-lived intangibles:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cable franchise rights
|
$
|
64,334
|
|
|
$
|
—
|
|
|
$
|
64,334
|
|
|
$
|
64,334
|
|
|
$
|
—
|
|
|
$
|
64,334
|
|
FCC spectrum licenses
|
13,839
|
|
|
—
|
|
|
13,839
|
|
|
13,839
|
|
|
—
|
|
|
13,839
|
|
||||||
Railroad crossing rights
|
141
|
|
|
—
|
|
|
141
|
|
|
141
|
|
|
—
|
|
|
141
|
|
||||||
Total indefinite-lived intangibles
|
78,314
|
|
|
—
|
|
|
78,314
|
|
|
78,314
|
|
|
—
|
|
|
78,314
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Finite-lived intangibles:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sprint affiliate contract expansion - Wireless
|
455,305
|
|
|
(255,441
|
)
|
|
199,864
|
|
|
455,305
|
|
|
(226,712
|
)
|
|
228,593
|
|
||||||
FCC spectrum licenses
|
4,659
|
|
|
(221
|
)
|
|
4,438
|
|
|
4,659
|
|
|
(97
|
)
|
|
4,562
|
|
||||||
Acquired subscribers - Cable
|
28,065
|
|
|
(25,800
|
)
|
|
2,265
|
|
|
28,065
|
|
|
(25,600
|
)
|
|
2,465
|
|
||||||
Other intangibles
|
463
|
|
|
(263
|
)
|
|
200
|
|
|
463
|
|
|
(250
|
)
|
|
213
|
|
||||||
Total finite-lived intangibles
|
488,492
|
|
|
(281,725
|
)
|
|
206,767
|
|
|
488,492
|
|
|
(252,659
|
)
|
|
235,833
|
|
||||||
Total intangible assets
|
$
|
566,806
|
|
|
$
|
(281,725
|
)
|
|
$
|
285,081
|
|
|
$
|
566,806
|
|
|
$
|
(252,659
|
)
|
|
$
|
314,147
|
|
(in thousands)
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
Wireless contract asset
|
|
$
|
44,593
|
|
|
$
|
44,844
|
|
Broadband contract acquisition and fulfillment costs
|
|
4,451
|
|
|
4,898
|
|
||
Prepaid maintenance expenses
|
|
4,696
|
|
|
3,329
|
|
||
Interest rate swaps
|
|
—
|
|
|
1,382
|
|
||
Other
|
|
2,652
|
|
|
6,074
|
|
||
Prepaid expenses and other
|
|
$
|
56,392
|
|
|
$
|
60,527
|
|
(in thousands)
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
Wireless contract asset
|
|
$
|
39,086
|
|
|
$
|
39,819
|
|
Broadband contract acquisition and fulfillment costs
|
|
8,329
|
|
|
6,107
|
|
||
Interest rate swaps
|
|
—
|
|
|
1,252
|
|
||
Prepaid expenses and other
|
|
6,896
|
|
|
6,174
|
|
||
Deferred charges and other assets
|
|
$
|
54,311
|
|
|
$
|
53,352
|
|
(in thousands)
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
Sales and property taxes payable
|
|
$
|
5,748
|
|
|
$
|
3,789
|
|
Accrued programming costs
|
|
2,988
|
|
|
3,023
|
|
||
Interest rate swaps
|
|
2,894
|
|
|
—
|
|
||
Asset retirement obligations
|
|
223
|
|
|
148
|
|
||
Financing leases
|
|
95
|
|
|
94
|
|
||
FCC spectrum license obligations
|
|
28
|
|
|
105
|
|
||
Other current liabilities
|
|
8,328
|
|
|
7,232
|
|
||
Accrued liabilities and other
|
|
$
|
20,304
|
|
|
$
|
14,391
|
|
(in thousands)
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
Noncurrent portion of deferred lease revenue
|
|
$
|
16,992
|
|
|
$
|
12,449
|
|
FCC spectrum license obligations
|
|
1,696
|
|
|
1,699
|
|
||
Noncurrent portion of financing leases
|
|
1,548
|
|
|
1,591
|
|
||
Interest rate swaps
|
|
2,527
|
|
|
—
|
|
||
Other
|
|
1,133
|
|
|
1,251
|
|
||
Other liabilities
|
|
$
|
23,896
|
|
|
$
|
16,990
|
|
(in thousands)
|
|
Operating Leases
|
|
Finance Leases
|
|
Total
|
||||||
2020
|
|
$
|
28,935
|
|
|
$
|
93
|
|
|
$
|
29,028
|
|
2021
|
|
66,338
|
|
|
174
|
|
|
66,512
|
|
|||
2022
|
|
64,493
|
|
|
174
|
|
|
64,667
|
|
|||
2023
|
|
60,994
|
|
|
174
|
|
|
61,168
|
|
|||
2024
|
|
56,329
|
|
|
174
|
|
|
56,503
|
|
|||
2025 and thereafter
|
|
193,826
|
|
|
1,530
|
|
|
195,356
|
|
|||
Total lease payments
|
|
470,915
|
|
|
2,319
|
|
|
473,234
|
|
|||
Less: Interest
|
|
93,060
|
|
|
676
|
|
|
93,736
|
|
|||
Present value of lease liabilities
|
|
$
|
377,855
|
|
|
$
|
1,643
|
|
|
$
|
379,498
|
|
(in thousands)
|
|
Operating Leases
|
||
2020
|
|
$
|
3,938
|
|
2021
|
|
6,007
|
|
|
2022
|
|
4,944
|
|
|
2023
|
|
3,313
|
|
|
2024
|
|
2,117
|
|
|
2025 and thereafter
|
|
4,517
|
|
|
Total
|
|
$
|
24,836
|
|
(in thousands)
|
June 30,
2020 |
|
December 31,
2019 |
||||
Term loan A-1
|
$
|
244,004
|
|
|
$
|
258,571
|
|
Term loan A-2
|
470,975
|
|
|
473,469
|
|
||
|
714,979
|
|
|
732,040
|
|
||
Less: unamortized loan fees
|
10,689
|
|
|
11,926
|
|
||
Total debt, net of unamortized loan fees
|
$
|
704,290
|
|
|
$
|
720,114
|
|
|
Actual
|
|
Covenant Requirement
|
|||
Total leverage ratio
|
2.3
|
|
|
3.25
|
or Lower
|
|
Debt service coverage ratio
|
5.7
|
|
|
2.00
|
or Higher
|
|
Minimum liquidity balance (in millions)
|
$
|
218.5
|
|
|
$25.0
|
or Higher
|
(in thousands)
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
Balance sheet location of derivative financial instruments:
|
|
|
|
|
||||
Prepaid expenses and other
|
|
$
|
—
|
|
|
$
|
1,382
|
|
Deferred charges and other assets, net
|
|
—
|
|
|
1,252
|
|
||
Accrued liabilities and other
|
|
2,894
|
|
|
—
|
|
||
Other liabilities
|
|
2,527
|
|
|
—
|
|
||
Total derivatives designated as hedging instruments
|
|
$
|
5,421
|
|
|
$
|
2,634
|
|
(in thousands)
|
Gains (Losses) on
Cash Flow Hedges |
|
Income Tax
(Expense) Benefit |
|
Accumulated
Other Comprehensive Income (Loss), net of taxes |
||||||
Balance as of December 31, 2019
|
$
|
2,634
|
|
|
$
|
(2,326
|
)
|
|
$
|
308
|
|
Net change in unrealized gain (loss)
|
(8,183
|
)
|
|
2,040
|
|
|
(6,143
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense
|
128
|
|
|
(32
|
)
|
|
96
|
|
|||
Net current period other comprehensive income (loss)
|
(8,055
|
)
|
|
2,008
|
|
|
(6,047
|
)
|
|||
Balance as of June 30, 2020
|
$
|
(5,421
|
)
|
|
$
|
(318
|
)
|
|
$
|
(5,739
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30, 2020
|
||||||||||||
(in thousands, except per share amounts)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Calculation of net income per share:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
29,247
|
|
|
$
|
13,150
|
|
|
$
|
42,527
|
|
|
$
|
27,060
|
|
Basic weighted average shares outstanding
|
49,902
|
|
|
49,848
|
|
|
49,878
|
|
|
49,812
|
|
||||
Basic net income per share
|
$
|
0.59
|
|
|
$
|
0.26
|
|
|
$
|
0.85
|
|
|
$
|
0.54
|
|
|
|
|
|
|
|
|
|
||||||||
Effect of stock-based compensation awards outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic weighted average shares outstanding
|
49,902
|
|
|
49,848
|
|
|
49,878
|
|
|
49,812
|
|
||||
Effect from dilutive shares and options outstanding
|
180
|
|
|
294
|
|
|
161
|
|
|
306
|
|
||||
Diluted weighted average shares outstanding
|
50,082
|
|
|
50,142
|
|
|
50,039
|
|
|
50,118
|
|
||||
Diluted net income per share
|
$
|
0.58
|
|
|
$
|
0.26
|
|
|
$
|
0.85
|
|
|
$
|
0.54
|
|
(in thousands)
|
Wireless
|
|
Broadband
|
|
Tower
|
|
Corporate & Eliminations
|
|
Consolidated
|
||||||||||
External revenue
|
|
|
|
|
|
|
|
|
|
||||||||||
Postpaid
|
$
|
73,269
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
73,269
|
|
Prepaid
|
12,432
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,432
|
|
|||||
Tower lease
|
—
|
|
|
—
|
|
|
1,829
|
|
|
—
|
|
|
1,829
|
|
|||||
Cable, residential and SMB (1)
|
—
|
|
|
35,829
|
|
|
—
|
|
|
—
|
|
|
35,829
|
|
|||||
Fiber, enterprise and wholesale
|
—
|
|
|
5,663
|
|
|
—
|
|
|
—
|
|
|
5,663
|
|
|||||
Rural local exchange carrier
|
—
|
|
|
4,602
|
|
|
—
|
|
|
—
|
|
|
4,602
|
|
|||||
Travel, installation, and other
|
24,438
|
|
|
1,658
|
|
|
—
|
|
|
—
|
|
|
26,096
|
|
|||||
Service revenue and other
|
110,139
|
|
|
47,752
|
|
|
1,829
|
|
|
—
|
|
|
159,720
|
|
|||||
Equipment
|
9,610
|
|
|
196
|
|
|
—
|
|
|
—
|
|
|
9,806
|
|
|||||
Total external revenue
|
119,749
|
|
|
47,948
|
|
|
1,829
|
|
|
—
|
|
|
169,526
|
|
|||||
Revenue from other segments
|
—
|
|
|
2,185
|
|
|
2,430
|
|
|
(4,615
|
)
|
|
—
|
|
|||||
Total revenue
|
119,749
|
|
|
50,133
|
|
|
4,259
|
|
|
(4,615
|
)
|
|
169,526
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of services
|
33,237
|
|
|
20,640
|
|
|
1,315
|
|
|
(4,552
|
)
|
|
50,640
|
|
|||||
Cost of goods sold
|
9,437
|
|
|
221
|
|
|
—
|
|
|
—
|
|
|
9,658
|
|
|||||
Selling, general and administrative
|
9,783
|
|
|
9,260
|
|
|
238
|
|
|
12,113
|
|
|
31,394
|
|
|||||
Depreciation and amortization
|
23,420
|
|
|
11,245
|
|
|
477
|
|
|
(310
|
)
|
|
34,832
|
|
|||||
Total operating expenses
|
75,877
|
|
|
41,366
|
|
|
2,030
|
|
|
7,251
|
|
|
126,524
|
|
|||||
Operating income (loss)
|
$
|
43,872
|
|
|
$
|
8,767
|
|
|
$
|
2,229
|
|
|
$
|
(11,866
|
)
|
|
$
|
43,002
|
|
(1)
|
SMB refers to Small and Medium Businesses.
|
(in thousands)
|
Wireless
|
|
Broadband
|
|
Tower
|
|
Corporate & Eliminations
|
|
Consolidated
|
||||||||||
External revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Postpaid
|
$
|
75,997
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
75,997
|
|
Prepaid
|
13,603
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,603
|
|
|||||
Tower lease
|
—
|
|
|
—
|
|
|
1,751
|
|
|
—
|
|
|
1,751
|
|
|||||
Cable, residential and SMB
|
—
|
|
|
33,581
|
|
|
—
|
|
|
—
|
|
|
33,581
|
|
|||||
Fiber, enterprise and wholesale
|
—
|
|
|
4,921
|
|
|
—
|
|
|
—
|
|
|
4,921
|
|
|||||
Rural local exchange carrier
|
—
|
|
|
5,581
|
|
|
—
|
|
|
—
|
|
|
5,581
|
|
|||||
Travel, installation, and other
|
4,971
|
|
|
1,654
|
|
|
—
|
|
|
—
|
|
|
6,625
|
|
|||||
Service revenue and other
|
94,571
|
|
|
45,737
|
|
|
1,751
|
|
|
—
|
|
|
142,059
|
|
|||||
Equipment
|
16,548
|
|
|
307
|
|
|
—
|
|
|
—
|
|
|
16,855
|
|
|||||
Total external revenue
|
111,119
|
|
|
46,044
|
|
|
1,751
|
|
|
—
|
|
|
158,914
|
|
|||||
Revenue from other segments
|
—
|
|
|
2,507
|
|
|
1,270
|
|
|
(3,777
|
)
|
|
—
|
|
|||||
Total revenue
|
111,119
|
|
|
48,551
|
|
|
3,021
|
|
|
(3,777
|
)
|
|
158,914
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of services
|
32,668
|
|
|
19,014
|
|
|
895
|
|
|
(3,080
|
)
|
|
49,497
|
|
|||||
Cost of goods sold
|
15,742
|
|
|
131
|
|
|
—
|
|
|
1
|
|
|
15,874
|
|
|||||
Selling, general and administrative
|
10,318
|
|
|
7,524
|
|
|
274
|
|
|
9,054
|
|
|
27,170
|
|
|||||
Depreciation and amortization
|
31,463
|
|
|
10,002
|
|
|
756
|
|
|
132
|
|
|
42,353
|
|
|||||
Total operating expenses
|
90,191
|
|
|
36,671
|
|
|
1,925
|
|
|
6,107
|
|
|
134,894
|
|
|||||
Operating income (loss)
|
$
|
20,928
|
|
|
$
|
11,880
|
|
|
$
|
1,096
|
|
|
$
|
(9,884
|
)
|
|
$
|
24,020
|
|
(in thousands)
|
Wireless
|
|
Broadband
|
|
Tower
|
|
Corporate & Eliminations
|
|
Consolidated
|
||||||||||
External revenue
|
|
|
|
|
|
|
|
|
|
||||||||||
Postpaid
|
$
|
148,197
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
148,197
|
|
Prepaid
|
25,541
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,541
|
|
|||||
Tower lease
|
—
|
|
|
—
|
|
|
3,626
|
|
|
—
|
|
|
3,626
|
|
|||||
Cable, residential and SMB
|
—
|
|
|
70,772
|
|
|
—
|
|
|
—
|
|
|
70,772
|
|
|||||
Fiber, enterprise and wholesale
|
—
|
|
|
11,151
|
|
|
—
|
|
|
—
|
|
|
11,151
|
|
|||||
Rural local exchange carrier
|
—
|
|
|
9,358
|
|
|
—
|
|
|
—
|
|
|
9,358
|
|
|||||
Travel, installation, and other
|
27,789
|
|
|
3,474
|
|
|
—
|
|
|
—
|
|
|
31,263
|
|
|||||
Service revenue and other
|
201,527
|
|
|
94,755
|
|
|
3,626
|
|
|
—
|
|
|
299,908
|
|
|||||
Equipment
|
22,360
|
|
|
446
|
|
|
—
|
|
|
—
|
|
|
22,806
|
|
|||||
Total external revenue
|
223,887
|
|
|
95,201
|
|
|
3,626
|
|
|
—
|
|
|
322,714
|
|
|||||
Revenue from other segments
|
—
|
|
|
4,718
|
|
|
4,363
|
|
|
(9,081
|
)
|
|
—
|
|
|||||
Total revenue
|
223,887
|
|
|
99,919
|
|
|
7,989
|
|
|
(9,081
|
)
|
|
322,714
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of services
|
66,676
|
|
|
39,883
|
|
|
2,254
|
|
|
(8,608
|
)
|
|
100,205
|
|
|||||
Cost of goods sold
|
21,965
|
|
|
364
|
|
|
—
|
|
|
—
|
|
|
22,329
|
|
|||||
Selling, general and administrative
|
19,211
|
|
|
18,759
|
|
|
764
|
|
|
23,651
|
|
|
62,385
|
|
|||||
Depreciation and amortization
|
48,719
|
|
|
22,116
|
|
|
947
|
|
|
(39
|
)
|
|
71,743
|
|
|||||
Total operating expenses
|
156,571
|
|
|
81,122
|
|
|
3,965
|
|
|
15,004
|
|
|
256,662
|
|
|||||
Operating income (loss)
|
$
|
67,316
|
|
|
$
|
18,797
|
|
|
$
|
4,024
|
|
|
$
|
(24,085
|
)
|
|
$
|
66,052
|
|
(in thousands)
|
Wireless
|
|
Broadband
|
|
Tower
|
|
Corporate & Eliminations
|
|
Consolidated
|
||||||||||
External revenue
|
|
|
|
|
|
|
|
|
|
||||||||||
Postpaid
|
$
|
152,179
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
152,179
|
|
Prepaid
|
26,733
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,733
|
|
|||||
Tower lease
|
—
|
|
|
—
|
|
|
3,514
|
|
|
—
|
|
|
3,514
|
|
|||||
Cable, residential and SMB
|
—
|
|
|
66,007
|
|
|
—
|
|
|
—
|
|
|
66,007
|
|
|||||
Fiber, enterprise and wholesale
|
—
|
|
|
9,749
|
|
|
—
|
|
|
—
|
|
|
9,749
|
|
|||||
Rural local exchange carrier
|
—
|
|
|
10,819
|
|
|
—
|
|
|
—
|
|
|
10,819
|
|
|||||
Travel, installation, and other
|
12,989
|
|
|
3,300
|
|
|
—
|
|
|
—
|
|
|
16,289
|
|
|||||
Service revenue and other
|
191,901
|
|
|
89,875
|
|
|
3,514
|
|
|
—
|
|
|
285,290
|
|
|||||
Equipment
|
31,839
|
|
|
628
|
|
|
—
|
|
|
—
|
|
|
32,467
|
|
|||||
Total external revenue
|
223,740
|
|
|
90,503
|
|
|
3,514
|
|
|
—
|
|
|
317,757
|
|
|||||
Revenue from other segments
|
—
|
|
|
4,929
|
|
|
2,540
|
|
|
(7,469
|
)
|
|
—
|
|
|||||
Total revenue
|
223,740
|
|
|
95,432
|
|
|
6,054
|
|
|
(7,469
|
)
|
|
317,757
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of services
|
65,200
|
|
|
38,075
|
|
|
1,841
|
|
|
(6,101
|
)
|
|
99,015
|
|
|||||
Cost of goods sold
|
30,169
|
|
|
342
|
|
|
—
|
|
|
—
|
|
|
30,511
|
|
|||||
Selling, general and administrative
|
21,397
|
|
|
15,093
|
|
|
557
|
|
|
18,845
|
|
|
55,892
|
|
|||||
Depreciation and amortization
|
61,833
|
|
|
19,993
|
|
|
1,436
|
|
|
270
|
|
|
83,532
|
|
|||||
Total operating expenses
|
178,599
|
|
|
73,503
|
|
|
3,834
|
|
|
13,014
|
|
|
268,950
|
|
|||||
Operating income (loss)
|
$
|
45,141
|
|
|
$
|
21,929
|
|
|
$
|
2,220
|
|
|
$
|
(20,483
|
)
|
|
$
|
48,807
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(in thousands)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Total consolidated operating income
|
$
|
43,002
|
|
|
$
|
24,020
|
|
|
$
|
66,052
|
|
|
$
|
48,807
|
|
Interest expense
|
(5,044
|
)
|
|
(7,522
|
)
|
|
(11,255
|
)
|
|
(15,476
|
)
|
||||
Other
|
1,573
|
|
|
1,176
|
|
|
2,306
|
|
|
2,463
|
|
||||
Income before income taxes
|
$
|
39,531
|
|
|
$
|
17,674
|
|
|
$
|
57,103
|
|
|
$
|
35,794
|
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Our Sprint affiliate agreement required T-Mobile to comply with certain restrictive operating requirements during the 90 day period following their Conversion Notice which ended on June 30, 2020. T-Mobile publicly announced on July 22, 2020 its intention to begin integration of the brands, rate plans, sales and network on August 2, 2020. Although the impact to Sprint customers in our affiliate area is uncertain at this point in time, the integration plans are likely to adversely affect our Wireless segment operating and financial results in future periods.
|
•
|
During the second quarter 2020, Sprint adopted the T-Mobile credit and collection policies for Sprint branded customers including those in the Shentel service area. Approximately 4,400 involuntary (non-payment) postpaid disconnects were accelerated into our second quarter subscriber results. Excluding this policy change, postpaid net additions for the quarter would have been 3,021.
|
•
|
When the T-Mobile merger with Sprint was announced, we put in place retention bonuses for certain employees with roles supporting our wireless segment. Payment of these bonuses is subject to various conditions being met, including the successful closing of the merger between Sprint and T-Mobile. On April 1, 2020, T-Mobile closed its acquisition of Sprint, and at that time, our payment of retention bonuses under this pre-existing plan became probable because these amounts will be paid if we either re-affiliate with T-Mobile or sell our wireless segment to T-Mobile. We recognized $1.2 million in expense during the second quarter of 2020 as a result, which was presented within the cost of service and selling, general, and administrative expense captions. Of the amount recognized, $0.4 million was related to Wireless, $0.2 million was related to Broadband, and $0.6 million was related to Corporate. We expect to incur $1.2 million in additional retention expense through the end of the vesting period, which we estimate to be in the fourth quarter 2021.
|
•
|
The stay-at-home directives by our governments spurred strong demand for broadband services during the second quarter 2020 resulting in record data net additions of 6,000 and the first quarter of positive video net additions since 2014.
|
•
|
Approximately 700 COVID-19 related non-payment service disconnections were deferred during the quarter ending June 30, 2020. We resumed normal collection practices on July 1, 2020 and expect this will have minimal impact on bad debt expense in future periods.
|
•
|
Our markets continued to be affected by the stay-at-home directives and the phased re-opening of local economies. We re-opened all the Sprint branded retail stores by the end of June that were temporarily closed in mid-March. Wireless postpaid gross additions and voluntary churn declined year over year approximately 28% and 23%, respectively, for the three months ended June 30, 2020 due to the store closures and lower store traffic from the stay-at-home directives.
|
•
|
As a Sprint affiliate, our wireless segment participated in the Keep Americans Connected pledge and deferred an estimated 2,300 COVID-19 related non-payment service disconnections during the quarter ended June 30, 2020. While the majority of these subscribers have agreed to payment plans with Sprint, we recognized contra-revenue of $1.2 million during the second quarter of 2020, which effectively represents the pass-through of Sprint’s bad debt expense for these customers. Sprint resumed normal collection practices on July 1, 2020.
|
•
|
During the second quarter of 2020, Sprint issued $1.4 million of credits to prepaid customers in our service territory to alleviate the impacts of COVID-19 and keep these customers connected. Issuance of these credits ceased on June 1, 2020.
|
•
|
Expense for payroll paid to idled employees and as a premium for certain employees interfacing with the general public, totaled $1.1 million for the three months ended June 30, 2020 and was presented within the cost of service and selling, general, and administrative expense captions.
|
•
|
With the stay-at-home directives continuing through the second quarter, we also reduced our wireless advertising spend for the three month period ended June 30, 2020 by $2.8 million from the comparable prior year period.
|
|
|
Three Months Ended June 30,
|
|
Change
|
||||||||||||||
($ in thousands)
|
|
2020
|
% of Revenue
|
|
2019
|
% of Revenue
|
|
$
|
|
%
|
||||||||
Revenue
|
|
$
|
169,526
|
|
100.0
|
|
|
$
|
158,914
|
|
100.0
|
|
|
10,612
|
|
|
6.7
|
|
Operating expenses
|
|
126,524
|
|
74.6
|
|
|
134,894
|
|
84.9
|
|
|
(8,370
|
)
|
|
(6.2
|
)
|
||
Operating income
|
|
43,002
|
|
25.4
|
|
|
24,020
|
|
15.1
|
|
|
18,982
|
|
|
79.0
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
|
(5,044
|
)
|
(3.0
|
)
|
|
(7,522
|
)
|
(4.7
|
)
|
|
(2,478
|
)
|
|
(32.9
|
)
|
||
Other income
|
|
1,573
|
|
0.9
|
|
|
1,176
|
|
0.7
|
|
|
397
|
|
|
33.8
|
|
||
Income before taxes
|
|
39,531
|
|
23.3
|
|
|
17,674
|
|
11.1
|
|
|
21,857
|
|
|
123.7
|
|
||
Income tax expense
|
|
10,284
|
|
6.1
|
|
|
4,524
|
|
2.8
|
|
|
5,760
|
|
|
127.3
|
|
||
Net income
|
|
$
|
29,247
|
|
17.3
|
|
|
$
|
13,150
|
|
8.3
|
|
|
16,097
|
|
|
122.4
|
|
|
|
Six Months Ended June 30,
|
|
Change
|
||||||||||||||
($ in thousands)
|
|
2020
|
% of Revenue
|
|
2019
|
% of Revenue
|
|
$
|
|
%
|
||||||||
Revenue
|
|
$
|
322,714
|
|
100.0
|
|
|
$
|
317,757
|
|
100.0
|
|
|
4,957
|
|
|
1.6
|
|
Operating expenses
|
|
256,662
|
|
79.5
|
|
|
268,950
|
|
84.6
|
|
|
(12,288
|
)
|
|
(4.6
|
)
|
||
Operating income
|
|
66,052
|
|
20.5
|
|
|
48,807
|
|
15.4
|
|
|
17,245
|
|
|
35.3
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
|
(11,255
|
)
|
(3.5
|
)
|
|
(15,476
|
)
|
(4.9
|
)
|
|
(4,221
|
)
|
|
(27.3
|
)
|
||
Other income
|
|
2,306
|
|
0.7
|
|
|
2,463
|
|
0.8
|
|
|
(157
|
)
|
|
(6.4
|
)
|
||
Income before taxes
|
|
57,103
|
|
17.7
|
|
|
35,794
|
|
11.3
|
|
|
21,309
|
|
|
59.5
|
|
||
Income tax expense
|
|
14,576
|
|
4.5
|
|
|
8,734
|
|
2.7
|
|
|
5,842
|
|
|
66.9
|
|
||
Net income
|
|
$
|
42,527
|
|
13.2
|
|
|
$
|
27,060
|
|
8.5
|
|
|
15,467
|
|
|
57.2
|
|
|
|
June 30,
2020 |
|
June 30,
2019 |
||
Retail PCS total subscribers - postpaid
|
|
846,428
|
|
|
811,719
|
|
Retail PCS phone subscribers
|
|
735,028
|
|
|
726,899
|
|
Retail PCS connected device subscribers
|
|
111,400
|
|
|
84,820
|
|
Retail PCS subscribers - prepaid
|
|
289,449
|
|
|
269,039
|
|
PCS market POPS (000) (1)
|
|
7,227
|
|
|
7,227
|
|
PCS covered POP (000) (1)
|
|
6,379
|
|
|
6,285
|
|
Macro base stations (cell sites)
|
|
1,968
|
|
|
1,910
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
Postpaid:
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
Gross PCS total subscriber additions
|
|
37,832
|
|
|
52,799
|
|
|
89,823
|
|
|
103,646
|
|
Gross PCS phone additions
|
|
26,567
|
|
|
39,948
|
|
|
63,301
|
|
|
77,734
|
|
Gross PCS connected device additions
|
|
11,265
|
|
|
12,851
|
|
|
26,522
|
|
|
25,912
|
|
Net PCS total subscriber (losses) additions (2)
|
|
(1,343
|
)
|
|
10,767
|
|
|
2,234
|
|
|
16,543
|
|
Net PCS phone (losses) additions
|
|
(3,967
|
)
|
|
4,069
|
|
|
(6,278
|
)
|
|
3,444
|
|
Net PCS connected device additions
|
|
2,624
|
|
|
6,698
|
|
|
8,512
|
|
|
13,099
|
|
PCS monthly retail total churn % (2)
|
|
1.55
|
%
|
|
1.74
|
%
|
|
1.73
|
%
|
|
1.81
|
%
|
PCS monthly phone churn %
|
|
1.38
|
%
|
|
1.62
|
%
|
|
1.57
|
%
|
|
1.68
|
%
|
PCS monthly connected device churn %
|
|
2.63
|
%
|
|
2.88
|
%
|
|
2.80
|
%
|
|
3.09
|
%
|
Prepaid:
|
|
|
|
|
|
|
|
|
||||
Gross PCS subscriber additions
|
|
39,083
|
|
|
33,753
|
|
|
78,157
|
|
|
74,732
|
|
Net PCS subscriber additions
|
|
10,353
|
|
|
1,819
|
|
|
15,437
|
|
|
10,335
|
|
PCS monthly retail churn %
|
|
3.38
|
%
|
|
3.97
|
%
|
|
3.76
|
%
|
|
4.06
|
%
|
(1)
|
"POPS" refers to the estimated population of a given geographic area. Market POPS are those within a market area which we are authorized to serve under our Sprint PCS affiliate agreements, and Covered POPS are those covered by our network. The data source for POPS is U.S. census data.
|
(2)
|
Includes an estimated 4,364 involuntary (nonpayment) postpaid disconnects were accelerated into our second quarter subscriber results due to a change in Sprint collection policy. Excluding this policy change, postpaid net additions for the three and six months ending June 30, 2020 would have been 3,021 and 6,598, respectively, and churn would have been 1.37% and 1.64%, respectively.
|
|
|
Three Months Ended June 30,
|
|
Change
|
||||||||||||||
($ in thousands)
|
|
2020
|
% of Revenue
|
|
2019
|
% of Revenue
|
|
$
|
|
%
|
||||||||
Wireless revenue:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross postpaid billings
|
|
$
|
102,879
|
|
85.9
|
|
|
$
|
102,053
|
|
91.8
|
|
|
826
|
|
|
0.8
|
%
|
Allocated bad debt
|
|
(6,061
|
)
|
(5.1
|
)
|
|
(4,274
|
)
|
(3.8
|
)
|
|
1,787
|
|
|
41.8
|
%
|
||
Amortization of contract asset and other
|
|
(7,001
|
)
|
(5.8
|
)
|
|
(5,636
|
)
|
(5.1
|
)
|
|
1,365
|
|
|
24.2
|
%
|
||
Sprint management fee and net service fee
|
|
(16,548
|
)
|
(13.8
|
)
|
|
(16,146
|
)
|
(14.5
|
)
|
|
402
|
|
|
2.5
|
%
|
||
Total postpaid service revenue
|
|
73,269
|
|
61.2
|
|
|
75,997
|
|
68.4
|
|
|
(2,728
|
)
|
|
(3.6
|
)%
|
||
Gross prepaid billings
|
|
30,966
|
|
25.9
|
|
|
30,328
|
|
27.3
|
|
|
638
|
|
|
2.1
|
%
|
||
Amortization of contract asset and other
|
|
(16,601
|
)
|
(13.9
|
)
|
|
(14,814
|
)
|
(13.3
|
)
|
|
1,787
|
|
|
12.1
|
%
|
||
Sprint management fee
|
|
(1,933
|
)
|
(1.6
|
)
|
|
(1,911
|
)
|
(1.7
|
)
|
|
22
|
|
|
1.2
|
%
|
||
Total prepaid service revenue
|
|
12,432
|
|
10.4
|
|
|
13,603
|
|
12.2
|
|
|
(1,171
|
)
|
|
(8.6
|
)%
|
||
Travel and other
|
|
24,438
|
|
20.4
|
|
|
4,971
|
|
4.5
|
|
|
19,467
|
|
|
391.6
|
%
|
||
Wireless service revenue and other
|
|
110,139
|
|
92.0
|
|
|
94,571
|
|
85.1
|
|
|
15,568
|
|
|
16.5
|
%
|
||
Equipment revenue
|
|
9,610
|
|
8.0
|
|
|
16,548
|
|
14.9
|
|
|
(6,938
|
)
|
|
(41.9
|
)%
|
||
Total wireless revenue
|
|
119,749
|
|
100.0
|
|
|
111,119
|
|
100.0
|
|
|
8,630
|
|
|
7.8
|
%
|
||
Wireless operating expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of services
|
|
33,237
|
|
27.8
|
|
|
32,668
|
|
29.4
|
|
|
569
|
|
|
1.7
|
%
|
||
Cost of goods sold
|
|
9,437
|
|
7.9
|
|
|
15,742
|
|
14.2
|
|
|
(6,305
|
)
|
|
(40.1
|
)%
|
||
Selling, general and administrative
|
|
9,783
|
|
8.2
|
|
|
10,318
|
|
9.3
|
|
|
(535
|
)
|
|
(5.2
|
)%
|
||
Depreciation and amortization
|
|
23,420
|
|
19.6
|
|
|
31,463
|
|
28.3
|
|
|
(8,043
|
)
|
|
(25.6
|
)%
|
||
Total wireless operating expenses
|
|
75,877
|
|
63.4
|
|
|
90,191
|
|
81.2
|
|
|
(14,314
|
)
|
|
(15.9
|
)%
|
||
Wireless operating income
|
|
$
|
43,872
|
|
36.6
|
|
|
$
|
20,928
|
|
18.8
|
|
|
22,944
|
|
|
109.6
|
%
|
|
|
Six Months Ended June 30,
|
|
Change
|
||||||||||||||
($ in thousands)
|
|
2020
|
% of Revenue
|
|
2019
|
% of Revenue
|
|
$
|
|
%
|
||||||||
Wireless revenue:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross postpaid billings
|
|
$
|
205,975
|
|
92.0
|
|
|
$
|
203,923
|
|
91.1
|
|
|
2,052
|
|
|
1.0
|
%
|
Allocated bad debt
|
|
(11,074
|
)
|
(4.9
|
)
|
|
(8,668
|
)
|
(3.9
|
)
|
|
2,406
|
|
|
27.8
|
%
|
||
Amortization of contract asset and other
|
|
(13,839
|
)
|
(6.2
|
)
|
|
(10,824
|
)
|
(4.8
|
)
|
|
3,015
|
|
|
27.9
|
%
|
||
Sprint management fee and net service fee
|
|
(32,865
|
)
|
(14.7
|
)
|
|
(32,252
|
)
|
(14.4
|
)
|
|
613
|
|
|
1.9
|
%
|
||
Total postpaid service revenue
|
|
148,197
|
|
66.2
|
|
|
152,179
|
|
68.0
|
|
|
(3,982
|
)
|
|
(2.6
|
)%
|
||
Gross prepaid billings
|
|
61,902
|
|
27.6
|
|
|
59,861
|
|
26.8
|
|
|
2,041
|
|
|
3.4
|
%
|
||
Amortization of contract asset and other
|
|
(32,493
|
)
|
(14.5
|
)
|
|
(29,351
|
)
|
(13.1
|
)
|
|
3,142
|
|
|
10.7
|
%
|
||
Sprint management fee
|
|
(3,868
|
)
|
(1.7
|
)
|
|
(3,777
|
)
|
(1.7
|
)
|
|
91
|
|
|
2.4
|
%
|
||
Total prepaid service revenue
|
|
25,541
|
|
11.4
|
|
|
26,733
|
|
11.9
|
|
|
(1,192
|
)
|
|
(4.5
|
)%
|
||
Travel and other
|
|
27,789
|
|
12.4
|
|
|
12,989
|
|
5.8
|
|
|
14,800
|
|
|
113.9
|
%
|
||
Wireless service revenue and other
|
|
201,527
|
|
90.0
|
|
|
191,901
|
|
85.8
|
|
|
9,626
|
|
|
5.0
|
%
|
||
Equipment revenue
|
|
22,360
|
|
10.0
|
|
|
31,839
|
|
14.2
|
|
|
(9,479
|
)
|
|
(29.8
|
)%
|
||
Total wireless revenue
|
|
223,887
|
|
100.0
|
|
|
223,740
|
|
100.0
|
|
|
147
|
|
|
0.1
|
%
|
||
Wireless operating expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of services
|
|
66,676
|
|
29.8
|
|
|
65,200
|
|
29.1
|
|
|
1,476
|
|
|
2.3
|
%
|
||
Cost of goods sold
|
|
21,965
|
|
9.8
|
|
|
30,169
|
|
13.5
|
|
|
(8,204
|
)
|
|
(27.2
|
)%
|
||
Selling, general and administrative
|
|
19,211
|
|
8.6
|
|
|
21,397
|
|
9.6
|
|
|
(2,186
|
)
|
|
(10.2
|
)%
|
||
Depreciation and amortization
|
|
48,719
|
|
21.8
|
|
|
61,833
|
|
27.6
|
|
|
(13,114
|
)
|
|
(21.2
|
)%
|
||
Total wireless operating expenses
|
|
156,571
|
|
69.9
|
|
|
178,599
|
|
79.8
|
|
|
(22,028
|
)
|
|
(12.3
|
)%
|
||
Wireless operating income
|
|
$
|
67,316
|
|
30.1
|
|
|
$
|
45,141
|
|
20.2
|
|
|
22,175
|
|
|
49.1
|
%
|
|
|
June 30,
2020 |
|
June 30,
2019 |
||
Broadband homes passed (1) (2)
|
|
220,442
|
|
|
206,262
|
|
Incumbent Cable
|
|
207,269
|
|
|
206,262
|
|
Glo Fiber
|
|
13,173
|
|
|
—
|
|
Broadband customer relationships (3)
|
|
101,816
|
|
|
88,860
|
|
|
|
|
|
|
||
Video:
|
|
|
|
|
|
|
RGUs
|
|
53,153
|
|
|
57,215
|
|
Penetration (4)
|
|
24.1
|
%
|
|
27.7
|
%
|
Digital video penetration (5)
|
|
94.3
|
%
|
|
90.3
|
%
|
Broadband:
|
|
|
|
|
|
|
RGUs
|
|
92,695
|
|
|
79,507
|
|
Incumbent Cable
|
|
91,364
|
|
|
79,507
|
|
Glo Fiber
|
|
1,331
|
|
|
—
|
|
Penetration (4)
|
|
42.0
|
%
|
|
38.5
|
%
|
Incumbent Cable penetration (4)
|
|
44.1
|
%
|
|
38.5
|
%
|
Glo Fiber penetration (4)
|
|
10.1
|
%
|
|
—
|
%
|
Voice:
|
|
|
|
|
|
|
RGUs
|
|
32,252
|
|
|
30,754
|
|
Penetration (4)
|
|
16.5
|
%
|
|
16.2
|
%
|
Total Cable and Glo Fiber RGUs
|
|
178,100
|
|
|
167,476
|
|
|
|
|
|
|
|
|
RLEC homes passed
|
|
25,852
|
|
|
25,814
|
|
RLEC customer relationships (3)
|
|
12,587
|
|
|
13,528
|
|
RLEC RGUs:
|
|
|
|
|
||
Data RLEC
|
|
7,755
|
|
|
8,424
|
|
Penetration (4)
|
|
30.0
|
%
|
|
32.6
|
%
|
Voice RLEC
|
|
13,812
|
|
|
14,873
|
|
Penetration (4)
|
|
53.4
|
%
|
|
57.6
|
%
|
Total RLEC RGUs
|
|
21,567
|
|
|
23,297
|
|
|
|
|
|
|
|
|
Total RGUs
|
|
199,667
|
|
|
190,773
|
|
|
|
|
|
|
|
|
Fiber route miles
|
|
6,478
|
|
|
5,833
|
|
Total fiber miles (6)
|
|
346,969
|
|
|
307,125
|
|
(1)
|
Homes and businesses are considered passed (“homes passed”) if we can connect them to our distribution system without further extending the transmission lines. Homes passed is an estimate based upon the best available information. Homes passed have access to video, broadband and voice services.
|
(2)
|
Includes approximately 16,600 RLEC homes passed where we are the dual incumbent telephone and cable provider.
|
(3)
|
Customer relationships represent the number of billed customers who receive at least one of our services.
|
(4)
|
Penetration is calculated by dividing the number of users by the number of homes passed or available homes, as appropriate.
|
(5)
|
Digital video penetration is calculated by dividing the number of digital video users by total video users. Digital video users are video customers who receive any level of video service via digital transmission. A dwelling with one or more digital set-top boxes or digital adapters counts as one digital video user.
|
(6)
|
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.
|
|
|
Three Months Ended June 30,
|
|
Change
|
|||||||||||||
($ in thousands)
|
|
2020
|
% of Revenue
|
|
2019
|
% of Revenue
|
|
$
|
|
%
|
|||||||
Broadband operating revenue
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cable, residential and SMB
|
|
$
|
35,829
|
|
71.5
|
|
$
|
33,581
|
|
69.2
|
|
|
2,248
|
|
|
6.7
|
|
Fiber, enterprise and wholesale
|
|
7,619
|
|
15.2
|
|
6,725
|
|
13.9
|
|
|
894
|
|
|
13.3
|
|
||
Rural local exchange carrier
|
|
4,830
|
|
9.6
|
|
6,041
|
|
12.4
|
|
|
(1,211
|
)
|
|
(20.0
|
)
|
||
Equipment and other
|
|
1,855
|
|
3.7
|
|
2,204
|
|
4.5
|
|
|
(349
|
)
|
|
(15.8
|
)
|
||
Total broadband revenue
|
|
50,133
|
|
100.0
|
|
48,551
|
|
100.0
|
%
|
|
1,582
|
|
|
3.3
|
|
||
Broadband operating expenses
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cost of services
|
|
20,640
|
|
41.2
|
|
19,014
|
|
39.2
|
|
|
1,626
|
|
|
8.6
|
|
||
Cost of goods sold
|
|
221
|
|
0.4
|
|
131
|
|
0.3
|
|
|
90
|
|
|
68.7
|
|
||
Selling, general, and administrative
|
|
9,260
|
|
18.5
|
|
7,524
|
|
15.5
|
|
|
1,736
|
|
|
23.1
|
|
||
Depreciation and amortization
|
|
11,245
|
|
22.4
|
|
10,002
|
|
20.6
|
|
|
1,243
|
|
|
12.4
|
|
||
Total broadband operating expenses
|
|
41,366
|
|
82.5
|
|
36,671
|
|
75.5
|
|
|
4,695
|
|
|
12.8
|
|
||
Broadband operating income
|
|
$
|
8,767
|
|
17.5
|
|
$
|
11,880
|
|
24.5
|
|
|
(3,113
|
)
|
|
(26.2
|
)
|
|
|
Six Months Ended June 30,
|
|
Change
|
|||||||||||||
($ in thousands)
|
|
2020
|
% of Revenue
|
|
2019
|
% of Revenue
|
|
$
|
|
%
|
|||||||
Broadband revenue
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cable, residential and SMB
|
|
$
|
70,772
|
|
70.8
|
|
$
|
66,007
|
|
69.2
|
|
|
4,765
|
|
|
7.2
|
|
Fiber, enterprise and wholesale
|
|
15,264
|
|
15.3
|
|
13,288
|
|
13.9
|
|
|
1,976
|
|
|
14.9
|
|
||
Rural local exchange carrier
|
|
9,962
|
|
10.0
|
|
11,722
|
|
12.3
|
|
|
(1,760
|
)
|
|
(15.0
|
)
|
||
Equipment and other
|
|
3,921
|
|
3.9
|
|
4,415
|
|
4.6
|
|
|
(494
|
)
|
|
(11.2
|
)
|
||
Total broadband revenue
|
|
99,919
|
|
100.0
|
|
95,432
|
|
100.0
|
%
|
|
4,487
|
|
|
4.7
|
|
||
Broadband operating expenses
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cost of services
|
|
39,883
|
|
39.9
|
|
38,075
|
|
39.9
|
|
|
1,808
|
|
|
4.7
|
|
||
Cost of goods sold
|
|
364
|
|
0.4
|
|
342
|
|
0.4
|
|
|
22
|
|
|
6.4
|
|
||
Selling, general, and administrative
|
|
18,759
|
|
18.8
|
|
15,093
|
|
15.8
|
|
|
3,666
|
|
|
24.3
|
|
||
Depreciation and amortization
|
|
22,116
|
|
22.1
|
|
19,993
|
|
20.9
|
|
|
2,123
|
|
|
10.6
|
|
||
Total broadband operating expenses
|
|
81,122
|
|
81.2
|
|
73,503
|
|
77.0
|
|
|
7,619
|
|
|
10.4
|
|
||
Broadband operating income
|
|
$
|
18,797
|
|
18.8
|
|
$
|
21,929
|
|
23.0
|
|
|
(3,132
|
)
|
|
(14.3
|
)
|
|
|
June 30,
2020 |
|
June 30,
2019 |
||
Macro towers owned
|
|
220
|
|
|
217
|
|
Small cell sites
|
|
8
|
|
|
—
|
|
Tenants (1)
|
|
413
|
|
|
377
|
|
Average tenants per tower
|
|
1.8
|
|
|
1.7
|
|
(1)
|
Includes 206 and 177 intercompany tenants for our Wireless segment as of June 30, 2020 and 2019, respectively.
|
|
|
Three Months Ended June 30,
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2020
|
% of Revenue
|
|
2019
|
% of Revenue
|
|
$
|
|
%
|
|||||
Tower revenue
|
|
$
|
4,259
|
|
100.0
|
|
$
|
3,021
|
|
100.0
|
|
1,238
|
|
|
41.0
|
Tower operating expenses
|
|
2,030
|
|
47.7
|
|
1,925
|
|
63.7
|
|
105
|
|
|
5.5
|
||
Tower operating income
|
|
$
|
2,229
|
|
52.3
|
|
$
|
1,096
|
|
36.3
|
|
1,133
|
|
|
103.4
|
|
|
Six Months Ended June 30,
|
|
Change
|
|||||||||||
($ in thousands)
|
|
2020
|
% of Revenue
|
|
2019
|
% of Revenue
|
|
$
|
|
%
|
|||||
Tower revenue
|
|
$
|
7,989
|
|
100.0
|
|
$
|
6,054
|
|
100.0
|
|
1,935
|
|
|
32.0
|
Tower operating expenses
|
|
3,965
|
|
49.6
|
|
3,834
|
|
63.3
|
|
131
|
|
|
3.4
|
||
Tower operating income
|
|
$
|
4,024
|
|
50.4
|
|
$
|
2,220
|
|
36.7
|
|
1,804
|
|
|
81.3
|
Three Months Ended June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(in thousands)
|
|
Wireless
|
|
Broadband
|
|
Tower
|
|
Corporate & Eliminations
|
|
Consolidated
|
||||||||||
Operating income
|
|
$
|
43,872
|
|
|
$
|
8,767
|
|
|
$
|
2,229
|
|
|
$
|
(11,866
|
)
|
|
$
|
43,002
|
|
Depreciation
|
|
19,545
|
|
|
11,078
|
|
|
477
|
|
|
(310
|
)
|
|
30,790
|
|
|||||
Amortization of intangible assets
|
|
4,301
|
|
|
167
|
|
|
—
|
|
|
—
|
|
|
4,468
|
|
|||||
OIBDA
|
|
67,718
|
|
|
20,012
|
|
|
2,706
|
|
|
(12,176
|
)
|
|
78,260
|
|
|||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,615
|
|
|
1,615
|
|
|||||
Deal advisory fees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,060
|
|
|
1,060
|
|
|||||
Adjusted OIBDA
|
|
$
|
67,718
|
|
|
$
|
20,012
|
|
|
$
|
2,706
|
|
|
$
|
(9,501
|
)
|
|
$
|
80,935
|
|
Three Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(in thousands)
|
|
Wireless
|
|
Broadband
|
|
Tower
|
|
Corporate & Eliminations
|
|
Consolidated
|
||||||||||
Operating income
|
|
$
|
20,928
|
|
|
$
|
11,880
|
|
|
$
|
1,096
|
|
|
$
|
(9,884
|
)
|
|
$
|
24,020
|
|
Depreciation
|
|
26,447
|
|
|
9,882
|
|
|
756
|
|
|
132
|
|
|
37,217
|
|
|||||
Amortization of intangible assets
|
|
5,016
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
5,136
|
|
|||||
OIBDA
|
|
52,391
|
|
|
21,882
|
|
|
1,852
|
|
|
(9,752
|
)
|
|
66,373
|
|
|||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
593
|
|
|
593
|
|
|||||
Adjusted OIBDA
|
|
$
|
52,391
|
|
|
$
|
21,882
|
|
|
$
|
1,852
|
|
|
$
|
(9,159
|
)
|
|
$
|
66,966
|
|
Six Months Ended June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(in thousands)
|
|
Wireless
|
|
Broadband
|
|
Tower
|
|
Corporate & Eliminations
|
|
Consolidated
|
||||||||||
Operating income
|
|
$
|
67,316
|
|
|
$
|
18,797
|
|
|
$
|
4,024
|
|
|
$
|
(24,085
|
)
|
|
$
|
66,052
|
|
Depreciation
|
|
40,555
|
|
|
21,795
|
|
|
947
|
|
|
(39
|
)
|
|
63,258
|
|
|||||
Amortization of intangible assets
|
|
9,015
|
|
|
321
|
|
|
—
|
|
|
—
|
|
|
9,336
|
|
|||||
OIBDA
|
|
116,886
|
|
|
40,913
|
|
|
4,971
|
|
|
(24,124
|
)
|
|
138,646
|
|
|||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,520
|
|
|
4,520
|
|
|||||
Deal advisory fees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,970
|
|
|
1,970
|
|
|||||
Adjusted OIBDA
|
|
$
|
116,886
|
|
|
$
|
40,913
|
|
|
$
|
4,971
|
|
|
$
|
(17,634
|
)
|
|
$
|
145,136
|
|
Six Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(in thousands)
|
|
Wireless
|
|
Broadband
|
|
Tower
|
|
Corporate & Eliminations
|
|
Consolidated
|
||||||||||
Operating income
|
|
$
|
45,141
|
|
|
$
|
21,929
|
|
|
$
|
2,220
|
|
|
$
|
(20,483
|
)
|
|
$
|
48,807
|
|
Depreciation
|
|
51,199
|
|
|
19,832
|
|
|
1,436
|
|
|
270
|
|
|
72,737
|
|
|||||
Amortization of intangible assets
|
|
10,634
|
|
|
161
|
|
|
—
|
|
|
—
|
|
|
10,795
|
|
|||||
OIBDA
|
|
106,974
|
|
|
41,922
|
|
|
3,656
|
|
|
(20,213
|
)
|
|
132,339
|
|
|||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,307
|
|
|
2,307
|
|
|||||
Adjusted OIBDA
|
|
$
|
106,974
|
|
|
$
|
41,922
|
|
|
$
|
3,656
|
|
|
$
|
(17,906
|
)
|
|
$
|
134,646
|
|
•
|
$10.0 million decline in acquisitions. In 2019, the Company acquired Big Sandy Broadband, Inc. for $10.0 million.
|
•
|
$12.5 million decrease in capital expenditures due primarily to a $30.1 million decline in the Wireless segment as the nTelos and Parkersburg network expansions were completed in the first half of 2019 and Richmond Sliver territory expansion projects have been postponed as we await further clarity on the impact of ongoing negotiations with the new T-Mobile, partially offset by $19.5 million in higher spending in the Broadband segment primarily driven by our Glo Fiber market expansion.
|
•
|
$7.6 million decrease in principal repayments on our term loans, and
|
•
|
$0.7 million decrease in payments for taxes related to share-based compensation vesting events.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1A.
|
RISK FACTORS
|
•
|
additional disruptions or delays in our operations or network performance, as well as network maintenance and construction, testing, supervisory and customer support activities, and inventory and supply procurement;
|
•
|
increases in operating costs, inventory shortages and/or a decrease in productivity related to travel bans and social distancing efforts, which could include delays in our ability to install broadband services at customer locations or require our vendors and contractors to incur additional costs that may be passed onto us;
|
•
|
a deterioration in our ability to operate in affected areas or delays in the supply of products or services to us from vendors that are needed for our efficient operations;
|
•
|
a decrease in the ability of our counterparties to meet their obligations to us in full, or at all;
|
•
|
a general reduction in business and economic activity may severely impact our customers and may cause them to be unable to pay for services provided; and
|
•
|
the potential negative impact on the health of our personnel, particularly if a significant number of them are impacted, could result in a deterioration in our ability to ensure business continuity during a disruption.
|
ITEM 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
($ in thousands, except per share amounts)
|
Number of Shares
Surrendered |
|
Average Price
Paid per Share |
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Approximate Dollar Value that May Yet be Purchased under the Plans or Programs
|
||||||
April 1 to April 30
|
—
|
|
|
N/A
|
|
|
—
|
|
|
$
|
72,765
|
|
|
May 1 to May 31
|
1,056
|
|
|
$
|
47.98
|
|
|
—
|
|
|
$
|
72,765
|
|
June 1 to June 30
|
3,624
|
|
|
$
|
51.33
|
|
|
—
|
|
|
$
|
72,765
|
|
Total
|
4,680
|
|
|
|
|
—
|
|
|
$
|
72,765
|
|
ITEM 6.
|
Exhibits Index
|
Exhibit No.
|
Exhibit
|
||
|
|
|
|
31.1*
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
|
||
|
|
|
|
31.2*
|
Certification of Principal Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
|
||
|
|
|
|
31.3*
|
Certification of Principal Accounting Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
|
||
|
|
||
32**
|
Certifications pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. § 1350.
|
||
|
|
|
|
(101)
|
Formatted in XBRL (Extensible Business Reporting Language)
|
||
|
|
|
|
|
101.INS
|
XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document
|
|
|
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
**
|
This certification is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (Securities Act), or the Exchange Act.
|
|
SHENANDOAH TELECOMMUNICATIONS COMPANY
|
|
|
|
/s/James J. Volk
|
|
James J. Volk
|
|
Senior Vice President - Chief Financial Officer
(Principal Financial Officer)
|
|
Date: July 30, 2020
|
1 Year Shenandoah Telecommunica... Chart |
1 Month Shenandoah Telecommunica... Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions