Shenandoah Telecommunications Company Reports Net Income Increases 40% in Fourth Quarter and 20.6% for 2015

Fourth Quarter 2015 EPS of $0.24; Adjusted OIBDA Up 17.5%

- Operating Income Up 33% on Strong Cable Improvement of $4.1 Million

- Revenues Increase 5.4% Driven by Wireless and Cable Customer Growth

EDINBURG, Va., Feb. 26, 2016 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel”) (NASDAQ:SHEN) announces financial and operating results for the three months and year ended December 31, 2015.

Consolidated Fourth Quarter Results

For the quarter ended December 31, 2015, net income increased 40% to $12.1 million, compared to $8.6 million in the fourth quarter of 2014, primarily due to operating improvements in the Cable segment as well as continued growth in the Wireless and Wireline segments. Operating income was $21.7 million, an increase of 33% from the same quarter last year.

Adjusted OIBDA (Operating Income Before Depreciation and Amortization) increased 17.5% to $40.1 million in the fourth quarter of 2015 from $34.2 million in the fourth quarter of 2014. Total revenues were $87.3 million, an increase of 5.4% compared to $82.8 million for the 2014 fourth quarter. Cable segment revenues increased due to an increase in subscribers and Revenue Generating Units (RGUs), video price increases, as well as improved product mix with customers selecting higher-speed data packages. Wireless revenues decreased as customers shifted to service plans that excluded subsidized phones, while Wireline segment revenues increased due to higher fiber revenues, as well as higher internet service fees as customers upgraded their services. Total operating expenses were $65.6 million in the fourth quarter of 2015 compared to $66.5 million in the prior year period.

President and CEO Christopher E. French commented, “We are pleased to have delivered continued revenue growth and enhanced profitability in the fourth quarter, while also increasing our customer base, as demonstrated by the record growth in postpaid additions to our wireless business. Our upgraded wireless and cable networks provide reliable coverage and access to premium high speed internet service, positioning us well as the carrier of choice in the markets in which we operate.”

Consolidated Full Year Results

For the year ended December 31, 2015, net income increased 20.6% to $40.9 million, compared to $33.9 million in 2014. Operating income was $74.1 million, an increase of 19.6% as compared to $61.9 million in the prior year.

Adjusted OIBDA increased 14.2% to $150.9 million in 2015 from $132.1 million in 2014. Total revenues were $342.5 million, an increase of 4.8% compared to $326.9 million in 2014. Cable segment revenues increased due to an increase in subscribers and RGUs, video price increases, as well as improved product mix with customers selecting higher-speed data packages. Wireless revenues increased primarily as a result of growth in wireless subscribers, while Wireline segment revenues increased due to higher fiber revenues as well as higher internet service fees as customers upgraded their services. Total operating expenses were $268.4 million in 2015 compared to $265.0 million in the prior year.

Wireless Segment

Fourth Quarter average postpaid subscribers grew a record 6.7%, while postpaid service revenues in the Wireless segment decreased $1.2 million or 3.1% as compared to the fourth quarter of 2014 primarily as a result of postpaid customers selecting lower-priced service plans associated with leasing and installment billing programs for handsets. Offsetting the decrease in postpaid revenue was a decrease in the cost of postpaid handset subsidies of $1.2 million. In the fourth quarter, net prepaid service revenues grew $0.9 million, or 8.4%, due primarily to improved product mix and 1.1% growth in average prepaid customers as compared to the same period of 2014.

During the fourth quarter of 2015, net additions to postpaid subscribers were 8,985, up 84% compared to 4,891 net postpaid subscriber additions in the fourth quarter of 2014. Net prepaid subscribers declined by 2,264 during fourth quarter 2015, compared to 5,036 added in the fourth quarter of 2014.

Fourth quarter adjusted OIBDA in the Wireless segment was $27.4 million, an increase of 3.6% from the fourth quarter of 2014.

“Our state of the art wireless network provides reliable coverage, coupled with the strength of our service offering, drove record growth in our postpaid customer base during the quarter,” Mr. French stated. “Monthly service fees and handset subsidy costs have continued to decline as customers select lower revenue service plans related to handset financing and leasing plans.”

Cable Segment

Revenue in the Cable segment increased $3.5 million or 15.8% to $25.7 million, due to 3.8% growth in average RGUs (the sum of voice, data, and video users), video rate increases implemented in January 2015 to pass-through programming cost increases, and customers selecting higher speed data access packages. Operating expenses declined 2.6% to $23.5 million in the fourth quarter of 2015. Fourth quarter operating income was $2.2 million compared to an operating loss of $1.9 million in the prior year.

Revenue generating units totaled 126,071 at the end of 2015, an increase of 3.6% over December 31, 2014.

Adjusted OIBDA in the Cable segment for fourth quarter 2015 was $8.2 million, up 90% from $4.3 million in the fourth quarter of 2014.

Mr. French stated, “Customers are demanding more from their broadband provider, and our enhanced service capabilities and product offerings are attracting new customers and encouraging our existing customers to transition to upgraded monthly subscription plans.”

Wireline Segment

Revenue in the Wireline segment increased 15.3% to $18.1 million in the fourth quarter of 2015, as compared to $15.7 million in the fourth quarter of 2014. Carrier access and fiber revenue for the quarter was $11.8 million, an increase from $9.8 million for the same quarter last year, due to growth in new fiber contracts. Operating expenses increased 7.4% or $0.9 million to $13.5 million for fourth quarter 2015, primarily due to costs to support new fiber contracts.

Adjusted OIBDA for the Wireline segment for fourth quarter 2015 was $8.0 million, as compared to $6.3 million in fourth quarter 2014.

Other Information

On October 20, 2015, the Company declared a dividend of $0.48 per share payable December 1, 2015 to shareholders of record on November 5, 2015, with a payout of $11.6 million. The Company also declared a two-for-one stock split effective for shareholders of record as of December 31, 2015.

Capital expenditures were $30.0 million in the fourth quarter of 2015 compared to $17.0 million in the comparable 2014 period.

Cash and cash equivalents as of December 31, 2015 were $76.8 million, compared to $68.9 million at December 31, 2014. Total outstanding debt at December 31, 2015 totaled $201.3 million compared to $224.3 million as of December 31, 2014. The Company began making quarterly principal payments of $5.75 million on its debt in December 2014. According to the terms of the Company’s credit agreement, a decrease in the Company’s leverage triggered a 0.25% decrease in the interest rate on the Company’s outstanding debt during 2015. At December 31, 2015, debt as a percent of total assets was 32.0%. The amount available to the Company through its revolver facility was $50 million.

“Our balance sheet remains solid, providing a platform for continued growth of our customer base, and for improvements to our capabilities and service offerings. We look forward to the closing of the nTelos acquisition and to expanding our operations to include additional customers and new markets,” Mr. French concluded.

Conference Call and Webcast

The Company will host a conference call and simultaneous webcast today, Friday, February 26, 2016, at 10 A.M. Eastern Time.

Teleconference Information:
Friday, February 26, 2016 10:00 A.M. (ET)
Dial in number: 1-888-695-7639

Password: 51713132
Audio webcast: http://investor.shentel.com/

An audio replay of the call will be available approximately one hour after the call is complete, through March 4, 2016 by calling (855) 859-2056.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company (Shentel) provides a broad range of diversified communications services through its high speed, state-of-the-art network to customers in the Mid-Atlantic United States. The Company’s services include: wireless voice and data; cable video, internet and voice; fiber network and services; and local and long distance telephone. Shentel is the exclusive personal communications service (“PCS”) Affiliate of Sprint in portions of Pennsylvania, Maryland, Virginia and West Virginia. For more information, please visit www.shentel.com.

This release contains forward-looking statements that are subject to various risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of unforeseen factors. A discussion of factors that may cause actual results to differ from management's projections, forecasts, estimates and expectations is available in the Company filings with the SEC. Those factors may include changes in general economic conditions, increases in costs, changes in regulation and other competitive factors.


SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,December 31,
20152014
Cash and cash equivalents$76,812 $68,917
Other current assets 51,135 59,407
Total current assets 127,947 128,324
Investments 10,679 10,089
Net property, plant and equipment 410,018 405,907
Intangible assets, net 66,993 68,260
Deferred charges and other assets, net 13,103 6,662
Total assets$628,740 $619,242
Current maturities of long-term debt 23,000 23,000
Other current liabilities 38,237 36,154
Long-term debt, less current maturities 178,250 201,250
Total other liabilities 99,315 100,492
Total shareholders' equity 289,938 258,346
Total liabilities and shareholders' equity$628,740 $619,242


SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
20152014 20152014
Operating revenues$87,285 $82,810 $342,485 $326,946
Cost of goods and services 29,789 31,774 121,330 129,743
Selling, general, and administrative 18,192 17,534 76,367 69,370
Depreciation and amortization 17,583 17,176 70,702 65,890
Total operating expenses 65,564 66,484 268,399 265,003
Operating income 21,721 16,326 74,086 61,943
Other income (expense):
Interest expense (1,692) (2,029) (7,355) (8,148)
Gain (loss) on investments, net 116 (127) 105 208
Non-operating income, net 489 535 1,754 2,031
Income before income taxes 20,634 14,705 68,590 56,034
Income tax expense 8,526 6,056 27,726 22,151
Net income$12,108 $8,649 $40,864 $33,883
Basic and diluted income per share:
Net income – Basic$0.24 $0.18 $0.84 $0.70
Net income - Diluted$0.24 $0.18 $0.83 $0.70
Weighted average shares outstanding:
Basic 48,457 48,240 48,388 48,198
Diluted 49,206 48,830 49,024 48,720

Non-GAAP Financial Measure

In managing our business and assessing our financial performance, management supplements the information provided by financial statement measures prepared in accordance with GAAP with adjusted OIBDA, which is considered a “non-GAAP financial measure” under SEC rules.

Adjusted OIBDA is defined by us as operating income (loss) before depreciation and amortization, adjusted to exclude the effects of: certain non-recurring transactions; impairment of assets; gains and losses on asset sales; and share based compensation expense. Adjusted OIBDA should not be construed as an alternative to operating income as determined in accordance with GAAP as a measure of operating performance.

In a capital-intensive industry such as telecommunications, management believes that adjusted OIBDA and the associated percentage margin calculations are meaningful measures of our operating performance. We use adjusted OIBDA as a supplemental performance measure because management believes it facilitates comparisons of our operating performance from period to period and comparisons of our operating performance to that of other companies by excluding potential differences caused by the age and book depreciation of fixed assets (affecting relative depreciation expenses) as well as the other items described above for which additional adjustments were made. In the future, management expects that the Company may again report adjusted OIBDA excluding these items and may incur expenses similar to these excluded items. Accordingly, the exclusion of these and other similar items from our non-GAAP presentation should not be interpreted as implying these items are non-recurring, infrequent or unusual.

While depreciation and amortization are considered operating costs under generally accepted accounting principles, these expenses primarily represent the current period allocation of costs associated with long-lived assets acquired or constructed in prior periods, and accordingly may obscure underlying operating trends for some purposes. By isolating the effects of these expenses and other items that vary from period to period without any correlation to our underlying performance, or that vary widely among similar companies, management believes adjusted OIBDA facilitates internal comparisons of our historical operating performance, which are used by management for business planning purposes, and also facilitates comparisons of our performance relative to that of our competitors. In addition, we believe that adjusted OIBDA and similar measures are widely used by investors and financial analysts as measures of our financial performance over time, and to compare our financial performance with that of other companies in our industry.

Adjusted OIBDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. These limitations include the following:

  • it does not reflect capital expenditures;
  • many of the assets being depreciated and amortized will have to be replaced in the future and adjusted OIBDA does not reflect cash requirements for such replacements;
  • it does not reflect costs associated with share-based awards exchanged for employee services;
  • it does not reflect interest expense necessary to service interest or principal payments on indebtedness;
  • it does not reflect gains, losses or dividends on investments;
  • it does not reflect expenses incurred for the payment of income taxes; and
  • other companies, including companies in our industry, may calculate adjusted OIBDA differently than we do, limiting its usefulness as a comparative measure.

In light of these limitations, management considers adjusted OIBDA as a financial performance measure that supplements but does not replace the information reflected in our GAAP results.

The following table shows adjusted OIBDA for the three and twelve months ended December 31, 2015 and 2014:

Three Months EndedTwelve Months Ended
(in thousands)December 31,December 31,
2015201420152014
Adjusted OIBDA$40,143 $34,152 $150,902 $132,144

The following table reconciles adjusted OIBDA to operating income, which we consider to be the most directly comparable GAAP financial measure, for the three and twelve months ended December 31, 2015 and 2014:

Consolidated:
(in thousands)Three Months Ended Twelve Months Ended
December 31, December 31,
2015
2014
2015
2014
Operating income$21,721 $16,326 $74,086 $61,943
Plus depreciation and amortization 17,583 17,176 70,702 65,890
Plus (gain) loss on asset sales 6 243 235 2,054
Plus nTelos acquisition expenses 393 - 3,546 -
Plus share based compensation expense 440 407 2,333 2,257
Adjusted OIBDA$40,143 $34,152 $150,902 $132,144

The following tables reconcile adjusted OIBDA to operating income by major segment for the three and twelve months ended December 31, 2015 and 2014:

Wireless Segment:
(in thousands)Three Months Ended Twelve Months Ended
December 31, December 31,
20152014 20152014
Operating income$18,922 $18,185 $75,023 $69,882
Plus depreciation and amortization 8,328 7,949 34,416 31,111
Plus (gain) loss on asset sales (11) 192 62 (101)
Plus share based compensation expense 113 88 554 475
Adjusted OIBDA$27,352 $26,414 $110,055 $101,367


Cable Segment:
(in thousands)Three Months Ended Twelve Months Ended
December 31, December 31,
2015
2014
2015
2014
Operating income (loss)$2,208 ($1,928) $502 ($10,098)
Plus depreciation and amortization 5,811 6,113 23,097 23,148
Plus (gain) loss on asset sales 33 (28) 45 1,500
Plus share based compensation expense 146 149 811 848
Adjusted OIBDA$8,198 $4,306 $24,455 $15,398


Wireline Segment:
(in thousands)Three Months Ended Twelve Months Ended
December 31, December 31,
20152014 20152014
Operating income$4,634 $3,163 $16,404 $15,714
Plus depreciation and amortization 3,325 2,999 12,736 11,224
Plus loss on asset sales 37 80 169 655
Plus share based compensation expense 78 75 408 386
Adjusted OIBDA$8,074 $6,317 $29,717 $27,979


The following table shows selected operating statistics of the Wireless segment as of the dates shown:

Dec. 31, Dec. 31, Dec. 31,
2015 2014 2013
Retail PCS Subscribers – Postpaid 312,512 287,867 273,721
Retail PCS Subscribers – Prepaid 142,840 145,162 137,047
PCS Market POPS (000) (1) 2,433 2,415 2,397
PCS Covered POPS (000) (1) 2,224 2,207 2,067
CDMA Base Stations (sites) 552 537 526
Towers Owned 158 154 153
Non-affiliate Cell Site Leases (2) 202 198 217
Gross PCS Subscriber Additions – Postpaid 77,067 72,891 66,558
Net PCS Subscriber Additions – Postpaid 24,645 14,146 10,829
PCS Average Monthly Retail Churn % - Postpaid (3) 1.47% 1.76% 1.75%
Gross PCS Subscriber Additions – Prepaid 83,796 74,838 76,416
Net PCS Subscriber Additions (Losses) – Prepaid (2,322) 8,115 8,870
PCS Average Monthly Retail Churn % - Prepaid (3) 4.93% 4.00% 4.24%
1) POPS refers to the estimated population of a given geographic area and is based on information purchased from third party sources. Market POPS are those within a market area which the Company is authorized to serve under its Sprint PCS affiliate agreements, and Covered POPS are those covered by the Company’s network. Covered POPS increased in 2014 primarily as a result of the Company’s deployment of the 800 megahertz spectrum at existing cell sites.
2) The decrease from December 31, 2013 to December 31, 2014 is primarily a result of termination of Sprint iDEN leases associated with the former Nextel network.
3) PCS Average Monthly Retail Churn is the average of the monthly subscriber turnover, or churn, calculations for the period.

The following table shows selected operating statistics of the Wireline segment as of the dates shown:

Dec. 31,Dec. 31,Dec. 31,
201520142013
Telephone Access Lines (1) 20,25221,61222,106
Long Distance Subscribers 9,4769,5719,851
Video Customers (2) 5,3565,6926,342
DSL and Cable Modem Subscribers (3) 13,08612,74212,632
Fiber Route Miles 1,7361,5561,452
Total Fiber Miles (4) 123,89186,80184,600
1) Effective October 1, 2015, the Company launched cable modem services on its cable plant, and ceased the requirement that a customer have a telephone access line to purchase DSL service.
2) The wireline segment’s video service passes approximately 16,000 homes.
3) 2015 total includes 420 customers served via the coaxial cable network.
4) 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.


The following table shows selected operating statistics of the Cable segment as of the dates shown:

Dec. 31,
2015
Dec. 31,
2014
Dec. 31,
2013
Homes Passed (1) 172,538 171,589 170,470
Customer Relationships (2)
Video customers 48,184 49,247 51,197
Non-video customers 24,550 22,051 18,341
Total customer relationships 72,734 71,298 69,538
Video
Customers (3) 50,215 52,095 53,076
Penetration (4) 29.1% 30.4% 31.1%
Digital video penetration (5) 77.9% 65.9% 49.2%
High-speed Internet
Available Homes (6) 172,538 171,589 168,255
Customers (3) 55,690 51,359 45,776
Penetration (4) 32.3% 29.9% 27.2%
Voice
Available Homes (6) 169,801 168,852 163,282
Customers (3) 20,166 18,262 14,988
Penetration (4) 11.9% 10.8% 9.2%
Revenue Generating Units (7) 126,071 121,716 113,840
Fiber Route Miles 2,844 2,834 2,636
Total Fiber Miles (8) 76,949 72,694 69,296
Average Revenue Generating Units 124,054 117,744 110,611
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.
2. Customer relationships represent the number of customers who receive at least one of our services.
3. Generally, a dwelling or commercial unit with one or more television sets connected to our distribution system counts as one video customer. Where services are provided on a bulk basis, such as to hotels, universities and some multi-dwelling units, the revenue charged to the customer is divided by the rate for comparable service in the local market to determine the number of customer equivalents included in the customer counts shown above.
4. Penetration is calculated by dividing the number of customers by the number of homes passed or available homes, as appropriate.
5. Digital video penetration is calculated by dividing the number of digital video customers by total video customers. Digital video customers 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 customer.
6. Homes and businesses are considered available (“available homes”) if we can connect them to our distribution system without further extending the transmission lines and if we offer the service in that area.
7. Revenue generating units are the sum of video, voice and high-speed internet customers.
8. 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.

Segment Information

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision makers. The Company has three reportable segments, which the Company operates and manages as strategic business units organized by lines of business: (1) Wireless, (2) Cable, and (3) Wireline. A fourth segment, Other, primarily includes Shenandoah Telecommunications Company, the parent holding company.

The Wireless segment provides digital wireless service to a portion of a four-state area covering the region from Harrisburg, York and Altoona, Pennsylvania, to Harrisonburg, Virginia, as a Sprint PCS Affiliate. This segment also owns cell site towers built on leased land, and leases space on these towers to both affiliates and non-affiliated service providers.

The Cable segment provides video, internet and voice services in Virginia, West Virginia and Maryland, and leases fiber optic facilities throughout southern Virginia and West Virginia. It does not include video, internet and voice services provided to customers in Shenandoah County, Virginia.

The Wireline segment provides regulated and unregulated voice services, DSL internet access, and long distance access services throughout Shenandoah County and portions of Rockingham, Frederick, Warren and Augusta counties, Virginia. The segment also provides video services in portions of Shenandoah County, and leases fiber optic facilities throughout the northern Shenandoah Valley of Virginia, northern Virginia and adjacent areas along the Interstate 81 corridor through West Virginia, Maryland and portions of Pennsylvania.

Three months ended December 31, 2015
(in thousands)
WirelessCableWirelineOtherEliminationsConsolidated
Totals
External revenues
Service revenues$47,835 $23,178 $4,843 $- $- $75,856
Other 2,998 2,298 6,133 - - 11,429
Total external revenues 50,833 25,476 10,976 - - 87,285
Internal revenues 1,121 265 7,118 - (8,504) -
Total operating revenues 51,954 25,741 18,094 - (8,504) 87,285
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below 15,908 13,233 8,445 - (7,797) 29,789
Selling, general and administrative, exclusive of depreciation and amortization shown separately below 8,796 4,489 1,690 3,924 (707) 18,192
Depreciation and amortization 8,328 5,811 3,325 119 - 17,583
Total operating expenses 33,032 23,533 13,460 4,043 (8,504) 65,564
Operating income (loss)$18,922 $2,208 $4,634 $(4,043)$- $21,721


Three months ended December 31, 2014
(in thousands)
WirelessCableWirelineOtherEliminationsConsolidated
Totals
External revenues
Service revenues$48,035 $20,151 $4,663 $- $- $72,849
Other 3,215 2,022 4,724 - - 9,961
Total external revenues 51,250 22,173 9,387 - - 82,810
Internal revenues 1,157 59 6,305 - (7,521) -
Total operating revenues 52,407 22,232 15,692 - (7,521) 82,810
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below 17,835 13,015 7,791 - (6,867) 31,774
Selling, general and administrative, exclusive of depreciation and amortization shown separately below 8,438 5,033 1,739 2,978 (654) 17,534
Depreciation and amortization 7,949 6,113 2,999 115 - 17,176
Total operating expenses 34,222 24,161 12,529 3,093 (7,521) 66,484
Operating income (loss)$18,185 $(1,929)$3,163 $(3,093)$- $16,326
Twelve months ended December 31, 2015
(in thousands)
WirelessCableWirelineOtherEliminationsConsolidated
Totals
External revenues
Service revenues$192,752 $88,980 $19,386 $- $- $301,118
Other 11,609 7,793 21,965 - - 41,367
Total external revenues 204,361 96,773 41,351 - - 342,485
Internal revenues 4,440 849 26,069 - (31,358) -
Total operating revenues 208,801 97,622 67,420 - (31,358) 342,485
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below 63,570 54,611 31,668 - (28,519) 121,330
Selling, general and administrative, exclusive of depreciation and amortization shown separately below 35,792 19,412 6,612 17,390 (2,839) 76,367
Depreciation and amortization 34,416 23,097 12,736 453 - 70,702
Total operating expenses 133,778 97,120 51,016 17,843 (31,358) 268,399
Operating income (loss)$75,023 $502 $16,404 $(17,843)$- $74,086
Twelve months ended December 31, 2014
(in thousands)
WirelessCableWirelineOtherEliminationsConsolidated
Totals
External revenues
Service revenues$191,147 $77,179 $18,919 $- $- $287,245
Other 11,867 7,224 20,610 - - 39,701
Total external revenues 203,014 84,403 39,529 - - 326,946
Internal revenues 4,440 150 23,506 - (28,096) -
Total operating revenues 207,454 84,553 63,035 - (28,096) 326,946
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below 73,290 51,982 30,088 - (25,617) 129,743
Selling, general and administrative, exclusive of depreciation and amortization shown separately below 33,171 19,521 6,009 13,148 (2,479) 69,370
Depreciation and amortization 31,111 23,148 11,224 407 - 65,890
Total operating expenses 137,572 94,651 47,321 13,555 (28,096) 265,003
Operating income (loss)$69,882 $(10,098)$15,714 $(13,555)$- $61,943

CONTACTS: Shenandoah Telecommunications, Inc. Adele Skolits CFO and VP of Finance 540-984-5161 Adele.skolits@emp.shentel.com Or John Nesbett/Jennifer Belodeau Institutional Marketing Services (IMS) 203-972-9200 jnesbett@institutionalms.com

Source:Shenandoah Telecommunications Co