June 9, 2010
RBC
Technology, Media & Communications Conference
Exhibit 99.1
1
Safe Harbor Statement
This presentation includes “forward-looking statements” within the meaning of Section 27A of the
Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, regarding,
among other things, our business strategy, our prospects and our 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 similar words, or by discussions of strategy or risks and uncertainties. These
statements are based on current expectations of future events. If underlying assumptions prove
inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from the
Company’s expectations and projections. Important factors that could cause actual results to differ
materially from such forward-looking statements include, without limitation, risks related to the
following:
Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, regarding,
among other things, our business strategy, our prospects and our 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 similar words, or by discussions of strategy or risks and uncertainties. These
statements are based on current expectations of future events. If underlying assumptions prove
inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from the
Company’s expectations and projections. Important factors that could cause actual results to differ
materially from such forward-looking statements include, without limitation, risks related to the
following:
nIncreasing competition in the communications industry; and
nA complex and uncertain regulatory environment.
A further list and description of these risks, uncertainties and other factors can be found in the
Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009. Copies of this
Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.shentel.com or
on request from the Company. The Company does not undertake to update any forward-looking
statements as a result of new information or future events or developments.
Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009. Copies of this
Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.shentel.com or
on request from the Company. The Company does not undertake to update any forward-looking
statements as a result of new information or future events or developments.
2
Use of Non-GAAP Financial Measures
Included in this presentation are certain non-GAAP financial measures that are not determined in
accordance with US generally accepted accounting principles. These financial performance
measures are not indicative of cash provided or used by operating activities and exclude the effectors
of certain operating, capital and financing costs and may differ from comparable information provided
by other companies, and they should not be considered in isolation, as an alternative to, or more
meaningful than measures of financial performance determined in accordance with US generally
accepted accounting principles. These financial performance measures are commonly used in the
industry and are presented because Shentel believes they provide relevant and useful information to
investors. Shentel utilizes these financial performance measures to assess its ability to meet future
capital expenditure and working capital requirements, to incur indebtedness if necessary, return
investment to shareholders and to fund continued growth. Shentel also uses these financial
performance measures to evaluate the performance of its business and for budget planning
purposes.
accordance with US generally accepted accounting principles. These financial performance
measures are not indicative of cash provided or used by operating activities and exclude the effectors
of certain operating, capital and financing costs and may differ from comparable information provided
by other companies, and they should not be considered in isolation, as an alternative to, or more
meaningful than measures of financial performance determined in accordance with US generally
accepted accounting principles. These financial performance measures are commonly used in the
industry and are presented because Shentel believes they provide relevant and useful information to
investors. Shentel utilizes these financial performance measures to assess its ability to meet future
capital expenditure and working capital requirements, to incur indebtedness if necessary, return
investment to shareholders and to fund continued growth. Shentel also uses these financial
performance measures to evaluate the performance of its business and for budget planning
purposes.
3
Agenda
Introduction and Shentel Overview
Overview of Wireless
Overview of Cable
Overview of Wireline
4
Growth Strategy - Capitalize on Core Competencies
n Cable
u Focus on smaller less competitive markets
u Build clusters to gain operating efficiencies
u Upgrade networks to offer “Triple Play”
n Wireless
u Increase penetration in existing PCS footprint
u Look for new wireless opportunities in surrounding
geographic areas
geographic areas
n Wireline
u Attractive markets at reasonable prices
Segment Overview
Twelve Months Ending March 31, 2010
Twelve Months Ending March 31, 2010
Total External Revenues = $162.0 million
Revenue by Segment
Net Income from Continuing Operations
($ millions)
Revenue ($ millions)
1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated.
Wireless
Wireline
Cable
Operating Income ($ millions)
Operating Income Before Depreciation &
Amortization ($ millions)
Amortization ($ millions)
1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated.
8
Agenda
Introduction and Shentel Overview
Overview of Wireless
Overview of Cable
Overview of Wireline
PCS Overview
n Only remaining public Sprint
Nextel affiliate
Nextel affiliate
n 2.4 million licensed POPs
n 2.1 million covered POPs
n 225k total subscribers
u 11% penetration of covered
POPs
POPs
n 481 CDMA base stations
n 340 EVDO enabled cell sites
u 96% EVDO covered POPs
n $41,000 Estimated Average
household income
household income
10
Profile of the Sprint Nextel Relationship
• Current contract through 2019 with two 10 year extensions
• Upon expiration of contract - Shentel compensated based on
enterprise value
enterprise value
• Settlement simplification in place through contract unless
amended by both parties
amended by both parties
Ø8% of Revenue - Spectrum, Brand, National Platform
- Fixed for life of contract
Ø8.8% of revenue - all other settlement items (billing,
customer care, long distance, travel)
customer care, long distance, travel)
-Can change annually with maximum of 12%
• Launched 4G in York & Harrisburg, PA, May 2010
ØWholesale Clearwire Service
• Plan to be able to offer all CDMA prepaid offerings by end of
Q2 2010
Q2 2010
11
Key Operational Metrics - PCS
Periods Ending
Periods Ending
Retail Subscribers (000s)
Number of Cell Sites
Churn (%)
EVDO Sites
Non-EVDO Sites
12
Attractive Service Revenue Growth - PCS
12 Months Ending
12 Months Ending
Gross Billed PCS Revenue ($ millions)1
1 Before credits and fees
11 % CAGR
13
PCS Revenues
12 Months Ending
12 Months Ending
Billed Revenue ($ millions)
Up 5%
Bad Debt
Management Fee
Service Credits
Service Fee
Net Revenue
14
PCS Revenue per Subscriber
Period Ending
Period Ending
Gross Billed Revenue per Subscriber1
15
Wireless Segment
12 Months Ending
12 Months Ending
Reported Revenue ($ millions)
OIBDA ($ millions)
15% CAGR
Capital Expenditures - Wireless
12 Months Ending
12 Months Ending
Capital Expenditures by Category ($ millions)
# Cell Sites 346 411 476 503
% Covered POPs 79% 85% 87% 88%
# EVDO Sites 52 211 334 365
% POPs Covered 27% 86% 94% 95%
Other
Capacity
Coverage
EVDO
Towers
17
Agenda
Introduction and Shentel Overview
Overview of Wireless
Overview of Cable
Overview of Wireline
18
Cable TV Overview
n Complimentary (with LEC business)
u 16k Homes Passed
u 8k Video Subscribers
n Offensive positioning (Outside ILEC)
u 40k Homes Passed
u 15k Video and 3k Internet Subscribers
u Voice service initiated 3/31/10
n All upgraded by 9/30/10
19
Digital
Internet
Basic
20
Cable TV
12 Months Ending
12 Months Ending
Revenue ($ millions)
OIBDA ($ millions)
Includes Rapid Communications acquisition December 1, 2008
21
Deal Highlights - JetBroadband Acquisition
n Structured as an asset
purchase
purchase
n Purchase Price = $148
n 115 thousand homes
passed and serves 67
thousand RGUs
passed and serves 67
thousand RGUs
u 43 thousand video
customers
customers
u 22 thousand data
customers
customers
u 2 thousand voice
customers
customers
n Network
u 3,200 miles
u 900 miles of fiber
u 84% two way
n Competition
u No fiber to the home
u CenturyLink, Verizon
and Frontier
and Frontier
u Satellite providers
22
JBB Acquisition - Rationale
n Diversification
n Scale
n Below Market Penetration
n Geographic Fit
n Synergies
n Leveraging Core Competencies
n Coaxial Network
23
Percent of Homes Passed with Services
24
JBB Network
25
Key Operational Metrics - With Acquisition
Pro Forma for Periods Ending March 31, 2010
Pro Forma for Periods Ending March 31, 2010
Cable Homes Passed (in 000’s)
RGUs (in 000’s)
Revenues (in millions)
OIBDA (in millions)
26
Jet BB Deal - Financial Highlights
n Operating Income before
Interest and Depreciation
Interest and Depreciation
u $16.2 before Corporate
office costs
office costs
u $14.6 after Corporate
office costs
office costs
n Financing
u Syndicated debt deal
u $198m Term Loan
u $50m Undrawn
Revolver
Revolver
u Oversubscribed at
more than 150% of
needs
more than 150% of
needs
27
Level of Debt - Acquisition Impact
Pro Forma for Periods Ending March 31, 2010
Pro Forma for Periods Ending March 31, 2010
Debt (in millions)
Debt to EBITDA Ratio
28
Capital Expenditures by Segment ($ millions)
29
JBB Execution
n Success with Rapid Acquisition
n Network Interconnection
n Proven Technologies
n Similar Demographics
n Proximity
n Low Regulatory Risk
n Strategic Owner Appeal
30
Agenda
Introduction and Shentel Overview
Overview of PCS
Overview of Cable
Overview of Wireline
31
Wireline Customers
March 31, 2010
March 31, 2010
n 24.2k LEC access lines
n Acquisition of North River
Telephone closed November
2nd
Telephone closed November
2nd
u 0.9k access lines
n 11.5k DSL subscribers
u 46% Penetration of Access
Lines
Lines
n 3.0k dial-up Internet
subscribers
subscribers
n 10.9k long distance
subscribers
subscribers
n One FTTH community in
service outside of LEC area
service outside of LEC area
n Fiber Network
u Route miles: 1,570
32
Q&A
33
Appendix
34
Non-GAAP Financial Measure - Billed Revenue per Subscriber
Period Ending
Period Ending
35
Dollars in thousands | |||||
Wireless | Wireline | Cable | Other | Consolidated | |
Operating Income | $40,459 | $12,711 | ($7,172) | ($3,683) | $42,315 |
Depreciation and amortization | 20,660 | 8,090 | 4,045 | 308 | 33,103 |
OIBDA | $61,119 | $20,801 | ($3,127) | ($3,375) | $75,418 |
Non-GAAP Financial Measure - OIBDA
12 Months Ended 3/31/2010
12 Months Ended 3/31/2010
36
Dollars in thousands | |||||
Wireless | Wireline | Cable | Other | Consolidated | |
Operating Income | $40,082 | $13,926 | ($1,684) | ($4,589) | $47,735 |
Depreciation and amortization | 18,039 | 8,071 | 1,738 | 315 | 28,163 |
OIBDA | $58,121 | $21,997 | $54 | ($4,274) | $75,898 |
Non-GAAP Financial Measure - OIBDA
12 Months Ended 3/31/2009
12 Months Ended 3/31/2009
37
Dollars in thousands | |||||
Wireless | Wireline | Cable | Other | Consolidated | |
Operating Income | $29,739 | $14,199 | ($1,336) | ($5,082) | $37,520 |
Depreciation and amortization | 16,629 | 6,468 | 1,035 | 263 | 24,395 |
OIBDA | $46,368 | $20,667 | ($301) | ($4,819) | $61,915 |
Non-GAAP Financial Measure - OIBDA
12 Months Ended 3/31/2008
12 Months Ended 3/31/2008
June 9, 2010
RBC
Technology, Media & Communications Conference