Shenandoah Telecommunications Company Reports First Quarter 2025 Results
Shenandoah Telecommunications (SHEN) reported mixed Q1 2025 results, with strong growth in its Glo Fiber segment despite overall net losses. Total revenue increased 26.9% to $87.9 million, driven by the Horizon acquisition and Glo Fiber expansion.
Key highlights include:
- Glo Fiber Expansion Markets saw 51% subscriber growth to 71,000
- Revenue from Glo Fiber Expansion grew 52% to $18.4 million
- Net loss widened to $9.1 million from $4.1 million year-over-year
- Adjusted EBITDA grew 43.3% to $27.6 million
The company added 5,400 new subscribers and 16,600 new passings in Glo Fiber markets. Total broadband homes passed increased by 128,000 to 604,000. The company maintains strong liquidity with $334.6 million available, including cash, credit facility, and government grants. Capital expenditures rose to $83.2 million, primarily for network expansion.
Shenandoah Telecommunications (SHEN) ha riportato risultati contrastanti nel primo trimestre 2025, con una forte crescita nel segmento Glo Fiber nonostante le perdite nette complessive. Il fatturato totale è aumentato del 26,9% raggiungendo 87,9 milioni di dollari, grazie all'acquisizione di Horizon e all'espansione di Glo Fiber.
I punti salienti includono:
- Nei mercati di espansione di Glo Fiber si è registrata una crescita del 51% degli abbonati, arrivati a 71.000
- I ricavi dall'espansione di Glo Fiber sono cresciuti del 52%, raggiungendo 18,4 milioni di dollari
- La perdita netta si è ampliata a 9,1 milioni di dollari rispetto ai 4,1 milioni dell'anno precedente
- L'EBITDA rettificato è aumentato del 43,3%, arrivando a 27,6 milioni di dollari
L'azienda ha aggiunto 5.400 nuovi abbonati e 16.600 nuove unità passate nei mercati Glo Fiber. Le abitazioni totali con accesso a banda larga sono aumentate di 128.000, raggiungendo 604.000. La società mantiene una forte liquidità con 334,6 milioni di dollari disponibili, inclusi contanti, linee di credito e sovvenzioni governative. Le spese in conto capitale sono salite a 83,2 milioni di dollari, principalmente per l'espansione della rete.
Shenandoah Telecommunications (SHEN) reportó resultados mixtos en el primer trimestre de 2025, con un fuerte crecimiento en su segmento Glo Fiber a pesar de pérdidas netas generales. Los ingresos totales aumentaron un 26,9% hasta 87,9 millones de dólares, impulsados por la adquisición de Horizon y la expansión de Glo Fiber.
Los aspectos más destacados incluyen:
- Los mercados de expansión de Glo Fiber experimentaron un crecimiento del 51% en suscriptores, alcanzando 71,000
- Los ingresos por la expansión de Glo Fiber crecieron un 52%, llegando a 18,4 millones de dólares
- La pérdida neta se amplió a 9,1 millones de dólares desde 4,1 millones año tras año
- El EBITDA ajustado creció un 43,3%, llegando a 27,6 millones de dólares
La compañía añadió 5,400 nuevos suscriptores y 16,600 nuevas conexiones en los mercados de Glo Fiber. Los hogares totales con banda ancha aumentaron en 128,000, alcanzando 604,000. La empresa mantiene una sólida liquidez con 334,6 millones de dólares disponibles, incluyendo efectivo, línea de crédito y subvenciones gubernamentales. Los gastos de capital aumentaron a 83,2 millones de dólares, principalmente para la expansión de la red.
Shenandoah Telecommunications (SHEN)은 2025년 1분기 실적에서 혼조세를 보였으며, 전체 순손실에도 불구하고 Glo Fiber 부문에서 강력한 성장을 기록했습니다. 총 매출은 Horizon 인수와 Glo Fiber 확장에 힘입어 26.9% 증가한 8,790만 달러를 기록했습니다.
주요 내용은 다음과 같습니다:
- Glo Fiber 확장 시장에서 가입자 수가 51% 증가하여 71,000명에 도달
- Glo Fiber 확장 매출은 52% 증가하여 1,840만 달러 기록
- 순손실은 전년 동기 대비 410만 달러에서 910만 달러로 확대
- 조정 EBITDA는 43.3% 증가하여 2,760만 달러 달성
회사는 Glo Fiber 시장에서 5,400명의 신규 가입자와 16,600개의 신규 연결을 추가했습니다. 총 광대역 가구 수는 128,000가구 증가하여 604,000가구에 이르렀습니다. 현금, 신용시설, 정부 보조금을 포함하여 3억 3,460만 달러의 강력한 유동성을 유지하고 있습니다. 자본 지출은 주로 네트워크 확장에 사용되어 8,320만 달러로 증가했습니다.
Shenandoah Telecommunications (SHEN) a publié des résultats mitigés pour le premier trimestre 2025, avec une forte croissance dans son segment Glo Fiber malgré des pertes nettes globales. Le chiffre d'affaires total a augmenté de 26,9 % pour atteindre 87,9 millions de dollars, porté par l'acquisition de Horizon et l'expansion de Glo Fiber.
Points clés :
- Les marchés d'expansion de Glo Fiber ont vu une croissance de 51 % des abonnés, atteignant 71 000
- Les revenus de l'expansion Glo Fiber ont augmenté de 52 % pour atteindre 18,4 millions de dollars
- La perte nette s'est creusée à 9,1 millions de dollars contre 4,1 millions d'une année sur l'autre
- L'EBITDA ajusté a progressé de 43,3 % pour atteindre 27,6 millions de dollars
La société a ajouté 5 400 nouveaux abonnés et 16 600 nouveaux raccordements sur les marchés Glo Fiber. Le nombre total de foyers éligibles au haut débit a augmenté de 128 000 pour atteindre 604 000. L'entreprise conserve une forte liquidité de 334,6 millions de dollars, comprenant trésorerie, ligne de crédit et subventions gouvernementales. Les dépenses d'investissement ont augmenté à 83,2 millions de dollars, principalement pour l'expansion du réseau.
Shenandoah Telecommunications (SHEN) meldete gemischte Ergebnisse für das erste Quartal 2025, mit starkem Wachstum im Glo Fiber-Segment trotz insgesamt netto Verluste. Der Gesamtumsatz stieg um 26,9 % auf 87,9 Millionen US-Dollar, getrieben durch die Übernahme von Horizon und die Expansion von Glo Fiber.
Wichtige Highlights sind:
- In den Glo Fiber Expansionsmärkten wuchs die Abonnentenzahl um 51 % auf 71.000
- Die Einnahmen aus der Glo Fiber Expansion stiegen um 52 % auf 18,4 Millionen US-Dollar
- Der Nettoverlust weitete sich von 4,1 Millionen auf 9,1 Millionen US-Dollar im Jahresvergleich aus
- Das bereinigte EBITDA wuchs um 43,3 % auf 27,6 Millionen US-Dollar
Das Unternehmen gewann 5.400 neue Abonnenten und 16.600 neue Anschlüsse in den Glo Fiber-Märkten hinzu. Die Gesamtzahl der mit Breitband versorgten Haushalte stieg um 128.000 auf 604.000. Das Unternehmen verfügt über eine starke Liquidität von 334,6 Millionen US-Dollar, einschließlich Bargeld, Kreditlinien und staatlichen Zuschüssen. Die Investitionsausgaben stiegen auf 83,2 Millionen US-Dollar, hauptsächlich für den Netzausbau.
- Glo Fiber Expansion Markets data subscribers grew 51% YoY to 71,000
- Glo Fiber Expansion Markets revenue increased 52% to $18.4M
- Total revenue grew 26.9% YoY to $87.9M
- Adjusted EBITDA grew 43.3% to $27.6M
- Strong Adjusted EBITDA margin improvement from 28% to 31%
- Added 16,600 new passings in Glo Fiber markets
- Total broadband homes passed increased by 128,000 to 604,000
- Strong liquidity position with $334.6M available (cash, revolver, and grants)
- Net loss increased to $9.1M vs $4.1M in Q1 2024
- Higher depreciation and amortization costs from expansion
- Incumbent Broadband Markets revenue declined 5% ($2.2M)
- Video RGUs decreased 14.1%
- Capital expenditures increased to $83.2M from $70.1M
- Total indebtedness reached $515.8M after borrowing $100M
Insights
Shentel reports mixed Q1 results with strong revenue/EBITDA growth but wider losses amid aggressive Glo Fiber expansion and Horizon integration.
Shentel's Q1 2025 results demonstrate a 26.9% revenue increase to
Despite the revenue growth, Shentel reported a widened net loss of
Adjusted EBITDA performance was strong, growing
Capital expenditures increased to
The contrasting trends of strong EBITDA growth against wider net losses highlight Shentel's current investment phase, where significant capital deployment is pressuring short-term profitability while building infrastructure for future growth.
EDINBURG, Va., April 30, 2025 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel” or the “Company”) (Nasdaq: SHEN) announced first quarter 2025 financial and operating results.
First Quarter 2025 Highlights
- Glo Fiber Expansion Markets1 data subscribers grew
51% over the same period in 2024 to approximately 71,000. - Glo Fiber Expansion Markets revenue grew
52% to$18.4 million . - Total revenue grew
26.9% compared to the same period in 2024 to$87.9 million . Excluding the former Horizon markets, total revenue grew5% to$72.9 million . - Net loss from continuing operations was
$9.1 million in the first quarter of 2025 compared with a net loss from continuing operations of$4.1 million in the first quarter of 2024. The increase in the net loss was due primarily to higher depreciation and amortization from Horizon and Glo Fiber network expansion. - Adjusted EBITDA2 grew
43.3% to$27.6 million . Excluding the former Horizon markets, Adjusted EBITDA grew$3.9 million , or20.6% .
“We are pleased with our growth in the first quarter of 2025, as we continued to execute well in our Glo Fiber Expansion Markets with 5,400 new subscribers, 16,600 new passings and
Shentel’s first-quarter earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, April 30, 2025. The webcast and related materials will be available on Shentel’s Investor Relations website at https://investor.shentel.com/.
First Quarter 2025 Results Compared with First Quarter 2024
- Revenue increased by
$18.7 million , or26.9% , to$87.9 million , primarily due to$15.2 million of revenues earned in the acquired Horizon markets. Excluding Horizon, revenues grew by$3.5 million , or5.0% , primarily due to Glo Fiber Expansion Markets Residential & SMB revenue growth of$5.6 million , or46.5% . This growth was partially offset by Incumbent Broadband Markets3 revenue decline of$2.2 million , or5.0% . Glo Fiber Expansion Markets revenue growth in Shentel’s legacy markets was driven by a46.3% year-over-year growth in data revenue generating units (“RGUs”) driven by the Company’s increase in passings. Incumbent Broadband Markets revenue decreased primarily due to lower video revenue driven by a14.1% decline in video RGUs and lower data revenue driven by a decrease in non-recurring other revenue. - Cost of services increased by
$7.0 million , or27.1% , due to$7.6 million of cost of services incurred in the acquired Horizon markets, partially offset by a$0.6 million decrease in cost of services incurred in the legacy Shentel markets, driven by a decrease in programming costs. - Selling, general and administrative expense increased by
$3.0 million , or10.8% , due to$3.2 million of selling, general and administrative costs incurred in the acquired Horizon markets and a$0.2 million decrease in the legacy Shentel markets driven by lower professional fees. - Restructuring, integration and acquisition expense of
$0.5 million in the three months ended March 31, 2025 was comparable with the three months ended March 31, 2024. - Depreciation and amortization increased by
$12.0 million , or68.9% , due to$9.2 million of depreciation and amortization related to the tangible and intangible assets acquired in the Horizon transaction and the Company’s expansion of its Glo Fiber network. - Total broadband homes passed grew 128,000 to approximately 604,000, including 363,000 Glo Fiber Expansion Market passings and 241,000 Incumbent Broadband Markets passings.
____________________________________
1 Glo Fiber Expansion Markets consists of FTTH passings in greenfield expansion markets in the Shentel and Horizon markets.
2 See “Non-GAAP Financial Measures” below for a reconciliation to the most comparable GAAP measure.
3 Incumbent Broadband Markets consists of Shentel Incumbent Cable Markets and Horizon Incumbent Telephone Markets with Fiber-To-The-Home (“FTTH”) passings.
Other Information
- Capital expenditures were
$83.2 million for the three months ended March 31, 2025 compared with$70.1 million in the comparable 2024 period. The$13.2 million increase in capital expenditures was primarily driven by capital expenditures in the Horizon markets and expansion of the networks in Glo Fiber Expansion Markets and government-subsidized markets. - The Company received
$6.9 million and$2.7 million in government grant cash reimbursements during the three months ended March 31, 2025 and 2024, respectively. - As of March 31, 2025, our cash and cash equivalents totaled
$87.5 million , the availability under our Revolver was$143.0 million , and the remaining reimbursements available under government grants was$104.1 million , which are subject to fulfilling the terms of the agreements, for total available liquidity of approximately$334.6 million . During the three months ended March 31, 2025, we borrowed a total of$100.0 million under our term loans and had total indebtedness of$515.8 million as of March 31, 2025.
Earnings Call Webcast
Date: Wednesday, April 30, 2025
Time: 8:30 a.m. ET
Listen via Internet: https://investor.shentel.com/
For Analysts, please register to dial-in at this link.
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 fiber optic and cable networks to residential and commercial customers in eight contiguous states in the eastern United States. The Company’s services include: broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services. The Company owns an extensive regional network with over 17,200 route miles of fiber. 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,” “plans,” “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, including our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Reports on Form 10-Q. Those factors may include, among others, the expected savings and synergies from the Horizon transaction may not be realized or may take longer or cost more than expected to realize, changes in overall economic conditions including rising inflation, regulatory requirements, changes in technologies, changes in competition, demand for our products and services, availability of labor resources and capital, natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as COVID-19, and other conditions. 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 OPERATIONS | ||||||||
| (in thousands, except per share amounts) | Three Months Ended March 31, | |||||||
| 2025 | 2024 | |||||||
| Residential & SMB - Incumbent Broadband Markets1, 3 | $ | 43,359 | $ | 43,809 | ||||
| Residential & SMB - Glo Fiber Expansion Markets2 | 18,444 | 12,118 | ||||||
| Commercial Fiber3 | 19,612 | 9,938 | ||||||
| RLEC & Other | 6,483 | 3,383 | ||||||
| Service revenue and other | 87,898 | 69,248 | ||||||
| Operating expenses: | ||||||||
| Cost of services exclusive of depreciation and amortization | 33,030 | 25,985 | ||||||
| Selling, general and administrative | 30,992 | 27,978 | ||||||
| Restructuring, integration and acquisition | 510 | 618 | ||||||
| Depreciation and amortization | 29,458 | 17,443 | ||||||
| Total operating expenses | 93,990 | 72,024 | ||||||
| Operating loss | (6,092 | ) | (2,776 | ) | ||||
| Other (expense) income: | ||||||||
| Interest expense | (4,892 | ) | (4,076 | ) | ||||
| Other income, net | 733 | 1,736 | ||||||
| Loss from continuing operations before income taxes | (10,251 | ) | (5,116 | ) | ||||
| Income tax benefit | (1,119 | ) | (1,026 | ) | ||||
| Loss from continuing operations | (9,132 | ) | (4,090 | ) | ||||
| Discontinued operations: | ||||||||
| Income from discontinued operations, net of tax | — | 1,981 | ||||||
| Gain on the sale of discontinued operations, net of tax | — | 216,805 | ||||||
| Total income from discontinued operations, net of tax | — | 218,786 | ||||||
| Net (loss) income | (9,132 | ) | 214,696 | |||||
| Dividends on redeemable noncontrolling interest | 1,472 | — | ||||||
| Net (loss) income attributable to common shareholders | $ | (10,604 | ) | $ | 214,696 | |||
| Net (loss) income per share attributable to common shareholders, basic and diluted: | ||||||||
| Loss from continuing operations | $ | (0.19 | ) | $ | (0.08 | ) | ||
| Income from discontinued operations, net of tax | — | 4.33 | ||||||
| Net (loss) income per share | $ | (0.19 | ) | $ | 4.25 | |||
| Weighted average shares outstanding | 54,959 | 50,520 | ||||||
_______________________________________________________
- Revenue from residential and small and medium business (“SMB”) customers in Incumbent Broadband Markets is primarily earned through the Company’s provision of data, video and voice services over primarily hybrid fiber coaxial cable and to a lesser extent fiber to the home (“FTTH”) networks in incumbent markets.
- Revenue from residential and SMB customers in Glo Fiber Expansion Markets is primarily earned through the Company’s provision of data, video and voice services over FTTH networks in new greenfield expansion markets.
- Shentel updated the presentation of certain Residential & SMB - Incumbent Broadband Markets and Commercial Fiber revenues in the prior year to conform with changes in how management views these lines of business.
| SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (in thousands) | March 31, 2025 | December 31, 2024 | |||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 87,547 | $ | 46,272 | |
| Accounts receivable, net of allowance for credit losses of | 29,749 | 29,722 | |||
| Income taxes receivable | 1,080 | 1,244 | |||
| Prepaid expenses and other | 16,088 | 17,282 | |||
| Total current assets | 134,464 | 94,520 | |||
| Investments | 15,534 | 15,709 | |||
| Property, plant and equipment, net | 1,483,796 | 1,438,538 | |||
| Goodwill and intangible assets, net | 157,275 | 157,723 | |||
| Operating lease right-of-use assets | 19,834 | 19,548 | |||
| Deferred charges and other assets | 14,550 | 14,235 | |||
| Total assets | $ | 1,825,453 | $ | 1,740,273 | |
| LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Current maturities of long-term debt, net of unamortized loan fees | $ | 10,348 | $ | 9,204 | |
| Accounts payable | 59,266 | 57,820 | |||
| Advanced billings and customer deposits | 16,432 | 16,104 | |||
| Accrued compensation | 11,172 | 16,283 | |||
| Current operating lease liabilities | 3,060 | 3,060 | |||
| Accrued liabilities and other | 11,716 | 12,100 | |||
| Total current liabilities | 111,994 | 114,571 | |||
| Long-term debt, less current maturities, net of unamortized loan fees | 504,199 | 407,675 | |||
| Other long-term liabilities: | |||||
| Deferred income taxes | 166,397 | 167,716 | |||
| Benefit plan obligations | 4,864 | 4,945 | |||
| Non-current operating lease liabilities | 10,945 | 10,794 | |||
| Other liabilities | 32,645 | 33,525 | |||
| Total other long-term liabilities | 214,851 | 216,980 | |||
| Commitments and contingencies | |||||
| Temporary equity: | |||||
| Redeemable noncontrolling interest | 83,936 | 82,464 | |||
| Shareholders’ equity: | |||||
| Common stock, no par value, authorized 96,000; 54,857 and 54,605 issued and outstanding at March 31, 2025 and December 31, 2024, respectively | — | — | |||
| Additional paid in capital | 150,857 | 147,733 | |||
| Retained earnings | 758,393 | 768,997 | |||
| Accumulated other comprehensive income, net of taxes | 1,223 | 1,853 | |||
| Total shareholders’ equity | 910,473 | 918,583 | |||
| Total liabilities, temporary equity and shareholders’ equity | $ | 1,825,453 | $ | 1,740,273 | |
| SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES | |||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (in thousands) | Three Months Ended March 31, | ||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net (loss) income | $ | (9,132 | ) | $ | 214,696 | ||
| Income from discontinued operations, net of tax | — | 218,786 | |||||
| Loss from continuing operations | (9,132 | ) | (4,090 | ) | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 28,984 | 17,320 | |||||
| Amortization of intangible assets | 474 | 123 | |||||
| Stock-based compensation expense, net of amount capitalized | 3,717 | 3,966 | |||||
| Deferred income taxes | (1,119 | ) | (1,026 | ) | |||
| Provision for credit losses | 288 | 756 | |||||
| Other, net | 480 | (184 | ) | ||||
| Changes in assets and liabilities | |||||||
| Accounts receivable | 2,490 | 1,726 | |||||
| Current income taxes | 164 | — | |||||
| Operating lease assets and liabilities, net | (135 | ) | 75 | ||||
| Other assets | (682 | ) | (4,495 | ) | |||
| Accounts payable | 992 | (38 | ) | ||||
| Other deferrals and accruals | (5,997 | ) | (1,218 | ) | |||
| Net cash provided by operating activities - continuing operations | 20,524 | 12,915 | |||||
| Net cash provided by operating activities - discontinued operations | — | 2,243 | |||||
| Net cash provided by operating activities | 20,524 | 15,158 | |||||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (83,236 | ) | (70,053 | ) | |||
| Government grants received | 6,929 | 2,710 | |||||
| Proceeds from sale of assets and other | 47 | — | |||||
| Net cash used in investing activities - continuing operations | (76,260 | ) | (67,343 | ) | |||
| Net cash provided by investing activities - discontinued operations | — | 305,827 | |||||
| Net cash (used in) provided by investing activities | (76,260 | ) | 238,484 | ||||
| Cash flows from financing activities: | |||||||
| Proceeds from credit facility borrowings | 100,000 | — | |||||
| Principal payments on long-term debt | (2,178 | ) | (1,312 | ) | |||
| Taxes paid for equity award issuances | (787 | ) | (1,456 | ) | |||
| Payments for financing arrangements and other | (24 | ) | (394 | ) | |||
| Net cash provided by (used in) financing activities | 97,011 | (3,162 | ) | ||||
| Net increase in cash and cash equivalents | 41,275 | 250,480 | |||||
| Cash and cash equivalents, beginning of period | 46,272 | 139,255 | |||||
| Cash and cash equivalents, end of period | $ | 87,547 | $ | 389,735 | |||
| Supplemental Disclosures of Cash Flow Information | |||||||
| Interest paid, net of amounts capitalized | $ | (4,262 | ) | $ | (3,955 | ) | |
| Income tax refunds received | $ | 164 | $ | — | |||
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin
The Company defines Adjusted EBITDA as (loss) income from continuing operations calculated in accordance with GAAP, adjusted for the impact of depreciation and amortization, impairment expense, 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 (loss) income 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. Adjusted EBITDA is also a significant performance measure used by the Company in its incentive compensation programs. 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 March 31, | ||||||||
| (in thousands) | 2025 | 2024 | ||||||
| Loss from continuing operations | $ | (9,132 | ) | $ | (4,090 | ) | ||
| Depreciation and amortization | 29,458 | 17,443 | ||||||
| Interest expense | 4,892 | 4,076 | ||||||
| Other income, net | (733 | ) | (1,736 | ) | ||||
| Income tax benefit | (1,119 | ) | (1,026 | ) | ||||
| Stock-based compensation | 3,717 | 3,966 | ||||||
| Restructuring, integration and acquisition | 510 | 618 | ||||||
| Adjusted EBITDA | $ | 27,593 | $ | 19,251 | ||||
| Adjusted EBITDA margin | 31 | % | 28 | % | ||||
Supplemental Information
In the below table, Shentel updated the presentation of certain Residential & SMB - Incumbent Broadband Markets and Commercial Fiber revenues in the prior year to conform with changes in how management views these lines of business.
Operating Statistics
| Three Months Ended March 31, | |||||
| 2025 | 2024 | ||||
| Homes and businesses passed (1) | |||||
| Incumbent Broadband Markets (4) | 240,788 | 216,514 | |||
| Glo Fiber Expansion Markets (5) | 362,861 | 259,567 | |||
| Total homes and businesses passed | 603,649 | 476,081 | |||
| Residential & Small and Medium Business ("SMB") Revenue Generating Units ("RGUs"): | |||||
| Incumbent Broadband Markets (4) | 111,860 | 108,958 | |||
| Glo Fiber Expansion Markets (5) | 70,565 | 46,729 | |||
| Broadband Data | 182,425 | 155,687 | |||
| Video | 38,395 | 40,148 | |||
| Voice | 26,037 | 24,039 | |||
| Total Residential & SMB RGUs (excludes RLEC) | 246,857 | 219,874 | |||
| Residential & SMB Penetration (2) | |||||
| Incumbent Broadband Markets (4) | 46.5 | % | 50.3 | % | |
| Glo Fiber Expansion Markets (5) | 19.4 | % | 18.0 | % | |
| Broadband Data | 30.2 | % | 32.7 | % | |
| Video | 6.4 | % | 8.4 | % | |
| Voice | 4.5 | % | 5.3 | % | |
| Fiber route miles | 17,224 | 10,132 | |||
| Total fiber miles (3) | 1,893,402 | 883,199 | |||
______________________________________________________
(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.
(4) Incumbent Broadband Markets consists of Shentel Incumbent Cable Markets and Horizon Incumbent Telephone Markets with FTTH passings.
(5) Glo Fiber Expansion Markets consists of FTTH passings in greenfield expansion markets in the Shentel and Horizon markets.
| Residential & SMB ARPU | ||||||
| Three Months Ended March 31, | ||||||
| 2025 | 2024 | |||||
| Residential & SMB Revenue: | ||||||
| Incumbent Broadband Markets | 27,875 | 27,505 | ||||
| Glo Fiber Expansion Markets | 15,764 | 10,193 | ||||
| Broadband Data | $ | 43,639 | $ | 37,698 | ||
| Video | 14,658 | 14,380 | ||||
| Voice | 2,560 | 2,462 | ||||
| Other | 946 | 1,387 | ||||
| Total Residential & SMB Revenue | $ | 61,803 | $ | 55,927 | ||
| Average RGUs: | ||||||
| Incumbent Broadband Markets | 111,528 | 109,255 | ||||
| Glo Fiber Expansion Markets | 67,868 | 44,163 | ||||
| Broadband Data | 179,396 | 153,418 | ||||
| Video | 39,256 | 41,294 | ||||
| Voice | 25,783 | 24,039 | ||||
| ARPU: (1) | ||||||
| Incumbent Broadband Markets | $ | 83.31 | $ | 83.92 | ||
| Glo Fiber Expansion Markets | $ | 77.42 | $ | 76.93 | ||
| Broadband Data | $ | 81.09 | $ | 81.91 | ||
| Video | $ | 124.46 | $ | 116.08 | ||
| Voice | $ | 33.09 | $ | 34.14 | ||
______________________________________________________
(1) Average Revenue Per RGU calculation = (Residential & SMB Revenue) / average RGUs / 3 months.
Shentel updated the presentation of certain revenues in the prior year to conform with changes in how management views these lines of business. This reclassification also resulted in updated ARPU values for the prior period. The 2024 reclassification are summarized in the following table:
| Residential & SMB ARPU | ||||||||||||||||||
| Q1'24 | Q2'24 | Q3'24 | Q4'24 | 2024 | ||||||||||||||
| Prior Reporting | ||||||||||||||||||
| Revenue: | ||||||||||||||||||
| Incumbent Broadband Markets | $ | 27,798 | $ | 28,324 | $ | 28,241 | $ | 28,489 | $ | 112,852 | ||||||||
| Glo Fiber Expansion Markets | 10,783 | 12,499 | 13,797 | 15,053 | 52,132 | |||||||||||||
| Broadband Data | 38,581 | 40,823 | 42,038 | 43,542 | 164,984 | |||||||||||||
| Video | 14,394 | 14,913 | 14,520 | 14,203 | 58,030 | |||||||||||||
| Voice | 3,023 | 3,283 | 3,275 | 3,184 | 12,765 | |||||||||||||
| Discounts, adjustments and other | 490 | 34 | (508 | ) | (403 | ) | (387 | ) | ||||||||||
| Total Residential & SMB Revenue | $ | 56,488 | $ | 59,053 | $ | 59,325 | $ | 60,526 | $ | 235,392 | ||||||||
| Commercial Fiber | 9,377 | 19,921 | 20,257 | 17,456 | 67,011 | |||||||||||||
| RLEC & Other | 3,383 | 6,825 | 8,017 | 7,430 | 25,655 | |||||||||||||
| Service revenue and other | $ | 69,248 | $ | 85,799 | $ | 87,599 | $ | 85,412 | $ | 328,058 | ||||||||
| Average RGUs: | ||||||||||||||||||
| Incumbent Broadband Markets | 109,255 | 111,689 | 111,224 | 111,384 | 110,888 | |||||||||||||
| Glo Fiber Expansion Markets | 44,163 | 50,892 | 56,290 | 62,387 | 53,432 | |||||||||||||
| Broadband Data | 153,418 | 162,581 | 167,514 | 173,771 | 164,320 | |||||||||||||
| Video | 41,294 | 42,443 | 41,630 | 40,596 | 41,491 | |||||||||||||
| Voice | 40,690 | 43,865 | 44,214 | 44,840 | 43,402 | |||||||||||||
| ARPU: | ||||||||||||||||||
| Incumbent Broadband Markets | $ | 84.81 | $ | 84.53 | $ | 84.64 | $ | 85.26 | $ | 84.81 | ||||||||
| Glo Fiber Expansion Markets | $ | 81.39 | $ | 81.86 | $ | 81.70 | $ | 80.42 | $ | 81.30 | ||||||||
| Broadband Data | $ | 83.83 | $ | 83.70 | $ | 83.65 | $ | 83.52 | $ | 83.67 | ||||||||
| Video | $ | 116.19 | $ | 117.12 | $ | 116.26 | $ | 116.62 | $ | 116.55 | ||||||||
| Voice | $ | 24.77 | $ | 24.95 | $ | 24.69 | $ | 23.67 | $ | 24.51 | ||||||||
| Residential & SMB ARPU | |||||||||||||||
| Q1'24 | Q2'24 | Q3'24 | Q4'24 | 2024 | |||||||||||
| Current Reporting | |||||||||||||||
| Revenue: | |||||||||||||||
| Incumbent Broadband Markets | $ | 27,505 | $ | 28,015 | $ | 27,876 | $ | 28,120 | $ | 111,516 | |||||
| Glo Fiber Expansion Markets | 10,193 | 11,840 | 12,980 | 14,169 | 49,182 | ||||||||||
| Broadband Data | 37,698 | 39,855 | 40,856 | 42,289 | 160,698 | ||||||||||
| Video | 14,380 | 14,894 | 14,495 | 14,173 | 57,942 | ||||||||||
| Voice | 2,462 | 2,526 | 2,508 | 2,442 | 9,938 | ||||||||||
| Other | 1,387 | 1,021 | 699 | 880 | 3,987 | ||||||||||
| Total Residential & SMB Revenue | $ | 55,927 | $ | 58,296 | $ | 58,558 | $ | 59,784 | $ | 232,565 | |||||
| Commercial Fiber | 9,938 | 20,678 | 21,024 | 18,198 | 69,838 | ||||||||||
| RLEC & Other | 3,383 | 6,825 | 8,017 | 7,430 | 25,655 | ||||||||||
| Service revenue and other | $ | 69,248 | $ | 85,799 | $ | 87,599 | $ | 85,412 | $ | 328,058 | |||||
| Average RGUs: | |||||||||||||||
| Incumbent Broadband Markets | 109,255 | 111,689 | 111,224 | 111,384 | 110,888 | ||||||||||
| Glo Fiber Expansion Markets | 44,163 | 50,892 | 56,290 | 62,387 | 53,432 | ||||||||||
| Broadband Data | 153,418 | 162,581 | 167,514 | 173,771 | 164,320 | ||||||||||
| Video | 41,294 | 42,443 | 41,630 | 40,596 | 41,491 | ||||||||||
| Voice | 24,039 | 23,143 | 23,392 | 23,968 | 23,636 | ||||||||||
| ARPU: (1) | |||||||||||||||
| Incumbent Broadband Markets | $ | 83.92 | $ | 83.61 | $ | 83.54 | $ | 84.15 | $ | 83.81 | |||||
| Glo Fiber Expansion Markets | $ | 76.93 | $ | 77.55 | $ | 76.86 | $ | 75.70 | $ | 76.70 | |||||
| Broadband Data | $ | 81.91 | $ | 81.71 | $ | 81.30 | $ | 81.12 | $ | 81.50 | |||||
| Video | $ | 116.08 | $ | 116.97 | $ | 116.06 | $ | 116.37 | $ | 116.37 | |||||
| Voice | $ | 34.14 | $ | 36.38 | $ | 35.74 | $ | 33.96 | $ | 35.04 | |||||
FAQ
How much did Shentel (SHEN) Glo Fiber subscribers grow in Q1 2025?
What caused Shentel (SHEN) Q1 2025 net loss of $9.1 million?
How much revenue did Shentel (SHEN) generate in Q1 2025?
What is Shentel's (SHEN) current liquidity position as of March 2025?
How many new homes did Shentel (SHEN) Glo Fiber pass in Q1 2025?
