Shenandoah Telecommunications Company Reports Third Quarter 2022 Results

EDINBURG, Va., Nov. 02, 2022 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel”) (Nasdaq: SHEN) announced third quarter 2022 financial and operating results.

Third Quarter 2022 Highlights

• Glo Fiber data net adds were approximately 4,000, an increase of 90.1% over the third quarter 2021 and 19.3% over the second quarter 2022.
• Revenue grew 7.5% to $66.9 million over the same period a year ago driven by 127.6% and 3.8% growth in Glo Fiber and incumbent cable data RGUs, respectively.
• Glo Fiber homes and businesses passed grew 16.4% sequentially to approximately 131,000.

“We had another record quarter for Glo Fiber net additions and we reached another important milestone in the third quarter with our Glo Fiber service contributing positive incremental Adjusted EBITDA for the first time since our launch of service three years ago,” said President and CEO, Christopher E. French. "We continue to build momentum against our competition and believe we are well positioned to continue to win market share with our fiber-to-the-home platform, strong liquidity position and de-levered balance sheet."

Shentel's third-quarter earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, November 2, 2022. The webcast and related materials will be available on Shentel’s Investor Relations website at https://investor.shentel.com/

Consolidated Third Quarter 2022 Results

• Revenue in the third quarter of 2022 grew 7.5% to $66.9 million compared with the third quarter of 2021, due to Broadband segment revenue growth of 7.7% and Tower segment revenue growth of 5.1%.

• Loss from continuing operations per share was $0.05 in the third quarter of 2022 compared with income per share from continuing operations of $0.13 in the third quarter of 2021. The decline was due primarily to higher depreciation from shortening the remaining life of Beam fixed assets and a lower non-cash tax benefit.

• Adjusted EBITDA in the third quarter of 2022 of $19.0 million was consistent with the third quarter of 2021, due to Tower segment growth of 15.0% offset by 5.3% higher Corporate expenses.

Broadband

• During the third quarter of 2022, the Company entered into a definitive asset purchase agreement (the "Spectrum Purchase Agreement") with a wireless carrier pursuant to which the Company agreed to sell certain spectrum licenses and leases utilized in the Company's Beam branded fixed wireless service for total consideration of approximately $21.1 million (the "Spectrum Transaction"). The total consideration will be composed of $17.3 million cash and approximately $3.8 million of liabilities to be assumed by the wireless carrier. The Spectrum Transaction is expected to close in the first half of 2023 subject to the receipt of regulatory approvals and other customary closing conditions. As a result of the Spectrum Transaction, the Company plans to cease its Beam operations at the remaining Beam fixed wireless sites upon or prior to the closing of the Spectrum Transaction. As a result of the cease of Beam service and related decommissioning of the remaining Beam fixed wireless sites after they cease operations, the Company has revised the useful lives for these sites to reflect operation through the cease of service date, resulting in the acceleration of depreciation for the related assets. Finally, as a result of the Spectrum Purchase Agreement, the Company re-classified the remaining Beam assets and liabilities as held for sale and is no longer reporting Beam customers in its Broadband Revenue Generating Units ("RGUs").

• Total broadband data Revenue Generating Units ("RGUs") as of September 30, 2022, were 130,238, representing 13.9% year over year growth. Penetration for incumbent cable and Glo Fiber were 52% and 16%, respectively, compared to 50% and 15%, respectively, as of September 30, 2021. Total Glo Fiber passings grew year over year by approximately 70,100.

• Broadband revenue in the third quarter of 2022 grew $4.5 million, or 7.7%, to $62.4 million compared with $57.9 million in the third quarter of 2021, primarily driven by a $3.9 million, or 8.7%, increase in Residential and Small and Medium Business ("SMB") revenue due to a 127.6% and 3.8% increase, respectively, in Glo Fiber and incumbent cable broadband data RGUs.

• Cost of services increased approximately $1.9 million, or 7.6%, compared with the three months ended September 30, 2021 due to increases in compensation and maintenance expenses. Compensation increased due to higher salary and wages, medical expenses and headcount to support Glo Fiber expansion. Maintenance increased due to higher cable replacement, fuel and field engineering costs.

• Selling, general and administrative expense increased $2.0 million, or 17.2%, compared with the three months ended September 30, 2021, due primarily to higher compensation expense, advertising, bad debt and property taxes. Compensation increased due to higher salary and wages, medical expenses and headcount to support Glo Fiber expansion.

• Depreciation and amortization expense increased $4.6 million, or 37.5%, compared with the three months ended September 30, 2021, primarily as a result of our network expansion of our Glo Fiber network and due to the acceleration of depreciation associated with Beam assets as discussed above.

• Broadband operating income in the third quarter of 2022 was $4.8 million, compared to $9.4 million in the third quarter of 2021, due primarily to higher depreciation.

• Broadband Adjusted EBITDA in the third quarter of 2022 was $22.2 million, consistent with the third quarter of 2021.

Tower

• Revenue increased approximately $0.2 million, or 5.1%, for the three months ended September 30, 2022 compared with the three months ended September 30, 2021, primarily due to an increase in revenue per tenant.

• Tower operating income in the third quarter of 2022 was $2.6 million, compared to $2.2 million in the third quarter of 2021.

• Tower Adjusted EBITDA in the third quarter of 2022 grew 15.1% to $3.0 million, compared with $2.6 million for the third quarter of 2021.

Other Information

• As of September 30, 2022, our cash and cash equivalents totaled $33.0 million and the availability under our delayed draw term loans and revolving line of credit was $375.0 million, for total available liquidity of $408.0 million. On July 1, 2022, we borrowed a total of $25.0 million in term loans. We expect to draw the remaining $275 million in delay draw term loans by June 30, 2023.

• Capital expenditures were $132.4 million for the nine months ended September 30, 2022 compared with $118.8 million in the comparable 2021 period. The $13.6 million increase in capital expenditures was primarily due to higher spending in the Broadband segment driven by the expansion of our Glo Fiber network.

Conference Call and Webcast

Date: Wednesday, November 2, 2022
Time: 8:30 A.M. (ET)
Dial in number: 833-630-1956

A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at http://investor.shentel.com/. 

A replay of the call will be available for a limited time on the Investor Relations page of the Company’s website.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company (Shentel) provides broadband services through its high speed, state-of-the-art cable, fiber optic and fixed wireless networks to customers in the Mid-Atlantic United States. The Company’s services include: broadband internet, video, and voice; fiber optic Ethernet, wavelength and leasing; and tower colocation leasing. The Company owns an extensive regional network with over 8,000 route miles of fiber and over 200 macro cellular towers. For more information, please visit www.shentel.com. 

This release contains forward-looking statements about Shentel regarding, among other things, its business strategy, its prospects and its financial position. These statements can be identified by the use of forward-looking terminology such as “believes,” “estimates,” “expects,” “intends,” “may,” “will,” “should,” “could,” or “anticipates” or the negative or other variation of these or similar words, or by discussions of strategy or risks and uncertainties. The forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to Shentel’s beliefs and expectations as to future events and trends affecting its business that are necessarily subject to uncertainties, many of which are outside Shentel’s control. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as, a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved, and actual results may differ materially from those contained in or implied by the forward-looking statements as a result of various factors. A discussion of other factors that may cause actual results to differ from management’s projections, forecasts, estimates and expectations is available in Shentel’s filings with the Securities and Exchange Commission. Those factors may include natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as COVID-19, changes in general economic conditions including high inflation, increases in costs, changes in regulation and other competitive factors. The forward-looking statements included are made only as of the date of the statement. Shentel undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events, except as required by law.

CONTACTS:
Shenandoah Telecommunications Company
Jim Volk
Senior Vice President and Chief Financial Officer
540-984-5168
Jim.Volk@emp.shentel.com 

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(in thousands, except per share amounts)	Three Months Ended September 30,								Nine Months Ended September 30,
	2022				2021				2022				2021
Service revenue and other	$	66,924			$	62,244			$	197,359			$	182,635
Operating expenses:
Cost of services exclusive of depreciation and amortization		27,477				25,747				80,572				73,819
Selling, general and administrative		22,227				20,238				69,152				60,711
Restructuring expense		641				1,160				1,031				1,821
Impairment expense		477				—				4,884				99
Depreciation and amortization		17,873				14,248				47,008				40,714
Total operating expenses		68,695				61,393				202,647				177,164
Operating (loss) income		(1,771	)			851				(5,288	)			5,471
Other (expense) income:
Other (expense) income, net		(1,208	)			138				(1,967	)			3,076
(Loss) income from continuing operations before income taxes		(2,979	)			989				(7,255	)			8,547
Income tax benefit		(251	)			(5,506	)			(699	)			(2,519	)
(Loss) income from continuing operations		(2,728	)			6,495				(6,556	)			11,066
Discontinued operations:
(Loss) income from discontinued operations, net of tax		—				(406	)			—				99,632
Gain on the sale of discontinued operations, net of tax		—				886,732				—				886,732
Total income from discontinued operations, net of tax		—				886,326				—				986,364
Net (loss) income		(2,728	)			892,821				(6,556	)			997,430
Other comprehensive income:
Unrealized income on interest rate hedge, net of tax		—				3,620				—				4,706
Comprehensive (loss) income	$	(2,728	)		$	896,441			$	(6,556	)		$	1,002,136
Net (loss) income per share, basic and diluted:
Basic - (Loss) income from continuing operations	$	(0.05	)		$	0.13			$	(0.13	)		$	0.22
Basic - Income from discontinued operations, net of tax	$	—			$	17.73			$	—			$	19.73
Basic net (loss) income per share	$	(0.05	)		$	17.86			$	(0.13	)		$	19.95
Diluted - (Loss) income from continuing operations	$	(0.05	)		$	0.13			$	(0.13	)		$	0.22
Diluted - Income from discontinued operations, net of tax	$	—			$	17.68			$	—			$	19.67
Diluted net (loss) income per share	$	(0.05	)		$	17.81			$	(0.13	)		$	19.89
Weighted average shares outstanding, basic		50,183				49,984				50,153				49,984
Weighted average shares outstanding, diluted		50,183				50,120				50,153				50,136

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)	September 30, 2022			December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	33,033		$	84,344
Accounts receivable, net of allowance for doubtful accounts of $371 and $352, respectively		23,592			22,005
Income taxes receivable		29,457			30,188
Prepaid expenses and other		11,915			29,830
Current assets held for sale		19,742			—
Total current assets		117,739			166,367
Investments		12,784			13,661
Property, plant and equipment, net		641,407			554,162
Intangible assets, net and goodwill		81,612			69,853
Operating lease right-of-use assets		55,749			56,414
Deferred charges and other assets		13,167			10,298
Non-current assets held for sale		—			19,978
Total assets	$	922,458		$	890,733
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt, net of unamortized loan fees	$	105		$	—
Accounts payable		35,836			28,542
Advanced billings and customer deposits		11,443			11,128
Accrued compensation		10,721			9,653
Current operating lease liabilities		2,962			3,318
Accrued liabilities and other		14,040			14,611
Current liabilities held for sale		3,834			38
Total current liabilities		78,941			67,290
Long-term debt, less current maturities, net of unamortized loan fees		24,869			—
Other long-term liabilities:
Deferred income taxes		84,639			86,014
Asset retirement obligations		9,727			9,615
Benefit plan obligations		7,711			8,216
Non-current operating lease liabilities		52,001			51,692
Other liabilities		22,059			21,824
Non-current liabilities held for sale		—			3,807
Total other long-term liabilities		176,137			181,168
Commitments and contingencies (Note 12)
Shareholders’ equity:
Common stock, no par value, authorized 96,000; 50,098 and 49,965 issued and outstanding at September 30, 2022 and December 31, 2021, respectively		—			—
Additional paid in capital		56,143			49,351
Retained earnings		586,368			592,924
Total shareholders’ equity		642,511			642,275
Total liabilities and shareholders’ equity	$	922,458		$	890,733

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)	Nine Months Ended September 30,
	2022				2021
Cash flows from operating activities:
Net (loss) income	$	(6,556	)		$	997,430
Income from discontinued operations, net of tax		—				986,364
(Loss) income from continuing operations		(6,556	)			11,066
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		47,008				40,714
Stock-based compensation expense		7,299				1,953
Impairment expense		4,884				99
Deferred income taxes		(1,374	)			4,180
Bad debt expense		1,252				755
Other, net		1,638				(31	)
Changes in assets and liabilities:
Accounts receivable		1,157				(1,195	)
Current income taxes		731				(6,870	)
Operating lease assets and liabilities, net		618				(214	)
Other assets		(1,056	)			(8,066	)
Accounts payable		(608	)			(5,626	)
Other deferrals and accruals		1,212				(5,193	)
Net cash provided by operating activities - continuing operations		56,205				31,572
Net cash provided by operating activities - discontinued operations		—				121,067
Net cash provided by operating activities		56,205				152,639
Cash flows from investing activities:
Capital expenditures		(132,357	)			(118,800	)
Proceeds from sale of investments		793				90
Proceeds from sale of assets and other		922				110
Net cash used in investing activities - continuing operations		(130,642	)			(118,600	)
Net cash provided by investing activities - discontinued operations		—				1,944,063
Net cash (used in) provided by investing activities		(130,642	)			1,825,463
Cash flows from financing activities:
Proceeds from credit facility borrowings		25,000				—
Taxes paid for equity award issuances		(986	)			(1,627	)
Dividends paid, net of dividends reinvested		—				(936,850	)
Payments for debt issuance costs		—				(841	)
Payments for financing arrangements and other		(888	)			(1,081	)
Net cash provided by (used in) financing activities - continuing operations		23,126				(940,399	)
Net cash used in financing activities - discontinued operations		—				(700,556	)
Net cash provided by (used in) financing activities		23,126				(1,640,955	)
Net (decrease) increase in cash and cash equivalents		(51,311	)			337,147
Cash and cash equivalents, beginning of period		84,344				195,397
Cash and cash equivalents, end of period	$	33,033			$	532,544
Supplemental Disclosures of Cash Flow Information
Interest paid	$	243			$	10,397
Income taxes paid	$	—			$	24,900

Non-GAAP Financial Measures
Adjusted EBITDA

The Company defines Adjusted EBITDA as net income (loss) from continuing operations calculated in accordance with GAAP, adjusted for the impact of depreciation and amortization, impairment, other income (expense), net, interest income, interest expense, income tax expense (benefit), stock compensation expense, transaction costs related to acquisition and disposition events (including professional advisory fees, integration costs, and related compensatory matters), restructuring expense, tax on equity award vesting and exercise events, and other non-comparable items. A reconciliation of net income (loss) from continuing operations, which is the most directly comparable GAAP financial measure, to Adjusted EBITDA is provided below herein.

Adjusted EBITDA margin is the Company’s calculation of Adjusted EBITDA, divided by revenue calculated in accordance with GAAP.

The Company uses Adjusted EBITDA and Adjusted EBITDA margin as supplemental measures of performance to evaluate operating effectiveness and assess its ability to increase revenues while controlling expense growth and the scalability of the Company’s business growth strategy. 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 September 30, 2022
(in thousands)		Broadband				Tower				Corporate & Eliminations				Consolidated
Net income (loss) from continuing operations		$	4,752			$	2,590			$	(10,070	)		$	(2,728	)
Depreciation and amortization			16,791				445				637				17,873
Impairment expense			477				—				—				477
Other expense (income), net			58				—				1,150				1,208
Income tax benefit			—				—				(251	)			(251	)
Stock-based compensation			—				—				1,771				1,771
Restructuring charges and other			169				—				472				641
Adjusted EBITDA		$	22,247			$	3,035			$	(6,291	)		$	18,991
Adjusted EBITDA margin			36	%			65	%		N/A					28	%

Three Months Ended September 30, 2021
(in thousands)		Broadband				Tower				Corporate & Eliminations				Consolidated
Net income (loss) from continuing operations		$	9,337			$	2,163			$	(5,005	)		$	6,495
Depreciation and amortization			12,211				468				1,569				14,248
Other expense (income), net			63				—				(201	)			(138	)
Income tax benefit			—				—				(5,506	)			(5,506	)
Stock-based compensation			—				—				1,119				1,119
Restructuring charges and other			676				6				2,048				2,730
Adjusted EBITDA		$	22,287			$	2,637			$	(5,976	)		$	18,948
Adjusted EBITDA margin			38	%			59	%		N/A					30	%

Nine Months Ended September 30, 2022
(in thousands)		Broadband				Tower				Corporate & Eliminations				Consolidated
Net income (loss) from continuing operations		$	16,921			$	7,628			$	(31,105	)		$	(6,556	)
Depreciation and amortization			42,724				1,562				2,722				47,008
Impairment expense			4,884				—				—				4,884
Other expense (income), net			177				—				1,790				1,967
Income tax benefit			—				—				(699	)			(699	)
Stock-based compensation			—				—				7,299				7,299
Restructuring charges and other			629				—				402				1,031
Adjusted EBITDA		$	65,335			$	9,190			$	(19,591	)		$	54,934
Adjusted EBITDA margin			36	%			65	%		N/A					28	%

Nine Months Ended September 30, 2021
(in thousands)		Broadband				Tower				Corporate & Eliminations				Consolidated
Net income (loss) from continuing operations		$	27,670			$	7,374			$	(23,978	)		$	11,066
Depreciation and amortization			35,648				1,398				3,668				40,714
Impairment expense			99				—				—				99
Other expense (income), net			195				—				(3,271	)			(3,076	)
Income tax benefit			—				—				(2,519	)			(2,519	)
Stock-based compensation			—				—				1,953				1,953
Restructuring charges and other			924				6				2,713				3,643
Adjusted EBITDA		$	64,536			$	8,778			$	(21,434	)		$	51,880
Adjusted EBITDA margin			38	%			64	%		N/A					28	%

Segment Results

Three Months Ended September 30, 2022:

(in thousands)	Broadband			Tower			Corporate & Eliminations				Consolidated
External revenue
Residential & SMB	$	48,700		$	—		$	—			$	48,700
Commercial Fiber		9,522			—			—				9,522
RLEC & Other		4,139			—			—				4,139
Tower lease		—			4,610			—				4,610
Service revenue and other		62,361			4,610			—				66,971
Intercompany revenue and other		25			67			(139	)			(47	)
Total revenue		62,386			4,677			(139	)			66,924
Operating expenses
Cost of services		26,193			1,384			(100	)			27,477
Selling, general and administrative		13,946			258			8,023				22,227
Restructuring expense		169			—			472				641
Impairment expense		477			—			—				477
Depreciation and amortization		16,791			445			637				17,873
Total operating expenses		57,576			2,087			9,032				68,695
Operating income (loss)	$	4,810		$	2,590		$	(9,171	)		$	(1,771	)

Three Months Ended September 30, 2021:

(in thousands)	Broadband			Tower			Corporate & Eliminations				Consolidated
External revenue
Residential & SMB	$	44,783		$	—		$	—			$	44,783
Commercial Fiber		9,059			—			—				9,059
RLEC & Other		3,972			—			—				3,972
Tower lease		—			4,356			—				4,356
Service revenue and other		57,814			4,356			—				62,170
Revenue for service provided to the discontinued Wireless operations		99			93			(118	)			74
Total revenue		57,913			4,449			(118	)			62,244
Operating expenses
Cost of services		24,333			1,504			(90	)			25,747
Selling, general and administrative		11,898			314			8,026				20,238
Restructuring expense		71			—			1,089				1,160
Depreciation and amortization		12,211			468			1,569				14,248
Total operating expenses		48,513			2,286			10,594				61,393
Operating income (loss)	$	9,400		$	2,163		$	(10,712	)		$	851

Nine Months Ended September 30, 2022:

(in thousands)	Broadband			Tower			Corporate & Eliminations				Consolidated
External revenue
Residential & SMB	$	143,512		$	—		$	—			$	143,512
Commercial Fiber		27,924			—			—				27,924
RLEC & Other		11,952			—			—				11,952
Tower lease		—			13,971			—				13,971
Service revenue and other		183,388			13,971			—				197,359
Intercompany revenue and other		124			255			(379	)			—
Total revenue		183,512			14,226			(379	)			197,359
Operating expenses
Cost of services		76,801			4,054			(283	)			80,572
Selling, general and administrative		41,376			982			26,794				69,152
Restructuring expense		629			—			402				1,031
Impairment expense		4,884			—			—				4,884
Depreciation and amortization		42,724			1,562			2,722				47,008
Total operating expenses		166,414			6,598			29,635				202,647
Operating income (loss)	$	17,098		$	7,628		$	(30,014	)		$	(5,288	)

Nine Months Ended September 30, 2021:

(in thousands)	Broadband			Tower			Corporate & Eliminations				Consolidated
External revenue
Residential & SMB	$	131,702		$	—		$	—			$	131,702
Commercial Fiber		21,975			—			—				21,975
RLEC & Other		11,208			—			—				11,208
Tower lease		—			8,525			—				8,525
Service revenue and other		164,885			8,525			—				173,410
Revenue for service provided to the discontinued Wireless operations		4,409			5,203			(387	)			9,225
Total revenue		169,294			13,728			(387	)			182,635
Operating expenses
Cost of services		70,050			4,070			(301	)			73,819
Selling, general and administrative		35,429			886			24,396				60,711
Restructuring expense		203			—			1,618				1,821
Impairment expense		99			—			—				99
Depreciation and amortization		35,648			1,398			3,668				40,714
Total operating expenses		141,429			6,354			29,381				177,164
Operating income (loss)	$	27,865		$	7,374		$	(29,768	)		$	5,471

Supplemental Information

Broadband Operating Statistics

	September 30, 2022			September 30, 2021
Broadband homes and businesses passed (1)	342,741			271,849
Incumbent Cable	211,829			211,013
Glo Fiber	130,912			60,836
Residential & Small and Medium Business ("SMB") RGUs:
Broadband Data	130,238			114,388
Incumbent Cable	109,132			105,116
Glo Fiber	21,106			9,272
Video	48,092			50,652
Voice	39,801			34,592
Total Residential & SMB RGUs (excludes RLEC)	218,131			199,632
Residential & SMB Penetration (2)
Broadband Data	38.0	%		42.1	%
Incumbent Cable	51.5	%		49.8	%
Glo Fiber	16.1	%		15.2	%
Video	14.0	%		18.6	%
Voice	12.2	%		13.6	%
Fiber route miles	8,072			7,219
Total fiber miles (3)	622,095			469,387

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(1)		Homes and businesses are considered passed (“passings") if we can connect them to our network without further extending the distribution system. Passings is an estimate based upon the best available information. Passings will vary among video, broadband data and voice services.
(2)		Penetration is calculated by dividing the number of users by the number of passings or available homes, as appropriate.
(3)		Total fiber miles are measured by taking the number of fiber strands in a cable and multiplying that number by the route distance. For example, a 10 mile route with 144 fiber strands would equal 1,440 fiber miles.

   

Broadband - Residential and SMB ARPU
	Three Months Ended September 30,							Nine Months Ended September 30,
	2022			2021				2022			2021
Residential and SMB Revenue:
Broadband	$	30,670		$	26,590			$	88,887		$	76,693
Incumbent Cable		26,502			24,780				78,488			72,421
Glo Fiber		4,168			1,810				10,399			4,272
Video		14,914			15,391				45,465			46,654
Voice		3,041			2,968				8,951			8,760
Discounts, adjustments and other		75			(166	)			209			(405	)
Total Revenue	$	48,700		$	44,783			$	143,512		$	131,702
Average RGUs:
Broadband Data		127,579			112,338				123,271			108,749
Incumbent Cable		108,481			104,150				107,603			102,319
Glo Fiber		19,098			8,188				15,668			6,430
Video		48,456			50,921				49,016			51,691
Voice		39,659			34,789				37,653			33,904
ARPU: (1)
Broadband	$	80.05		$	78.85			$	80.03		$	78.33
Incumbent Cable	$	81.43		$	79.31			$	81.05		$	78.64
Glo Fiber	$	72.75		$	73.69			$	73.74		$	73.82
Video	$	102.59		$	100.75			$	103.06		$	100.28
Voice	$	25.56		$	28.44			$	26.41		$	28.71

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(1)

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

   

Tower Operating Statistics

	September 30, 2022		September 30, 2021
Macro tower sites	222		223
Tenants	457		470
Average tenants per tower	2.0		2.0