Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 22, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SHENANDOAH TELECOMMUNICATIONS CO/VA/ | |
Entity Central Index Key | 354,963 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 24,222,433 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 |
UNAUDITED CONSOLIDATED BALANCE
UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 87,288 | $ 68,917 |
Accounts receivable, net | 32,025 | 30,371 |
Income taxes receivable | 0 | 14,752 |
Materials and supplies | 5,008 | 8,794 |
Prepaid expenses and other | 6,196 | 4,279 |
Deferred income taxes | 1,111 | 1,211 |
Total current assets | 131,628 | 128,324 |
Investments, including $2,515 and $2,661 carried at fair value | 10,380 | 10,089 |
Property, plant and equipment, net | 398,435 | 405,907 |
Other Assets | ||
Intangible assets, net | 67,274 | 68,260 |
Deferred charges and other assets, net | 12,527 | 6,662 |
Other assets, net | 79,801 | 74,922 |
Total assets | 620,244 | 619,242 |
Current Liabilities | ||
Current maturities of long-term debt | 23,000 | 23,000 |
Accounts payable | 8,008 | 11,151 |
Advanced billings and customer deposits | 11,818 | 12,375 |
Accrued compensation | 3,956 | 5,466 |
Income taxes payable | 1,675 | 0 |
Accrued liabilities and other | 8,294 | 7,162 |
Total current liabilities | 56,751 | 59,154 |
Long-term debt, less current maturities | 184,000 | 201,250 |
Other Long-Term Liabilities | ||
Deferred income taxes | 67,511 | 76,777 |
Deferred lease payable | 7,913 | 7,180 |
Asset retirement obligations | 7,159 | 6,928 |
Other liabilities | 9,469 | 9,607 |
Total other long-term liabilities | $ 92,052 | $ 100,492 |
Commitments and Contingencies | ||
Shareholders' Equity | ||
Common stock | $ 31,611 | $ 29,712 |
Accumulated other comprehensive income (loss) | (438) | 1,122 |
Retained earnings | 256,268 | 227,512 |
Total shareholders' equity | 287,441 | 258,346 |
Total liabilities and shareholders' equity | $ 620,244 | $ 619,242 |
UNAUDITED CONSOLIDATED BALANCE3
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Investments at fair value | $ 2,515 | $ 2,661 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) [Abstract] | ||||
Operating revenues | $ 85,212 | $ 82,268 | $ 255,202 | $ 244,136 |
Operating expenses: | ||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | 30,570 | 33,330 | 91,541 | 97,970 |
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 20,435 | 18,063 | 58,177 | 51,836 |
Depreciation and amortization | 19,118 | 16,731 | 53,119 | 48,714 |
Total operating expenses | 70,123 | 68,124 | 202,837 | 198,520 |
Operating income | 15,089 | 14,144 | 52,365 | 45,616 |
Other income (expense): | ||||
Interest expense | (1,808) | (2,007) | (5,663) | (6,119) |
Gain (loss) on investments, net | (211) | 239 | (12) | 335 |
Non-operating income, net | 391 | 409 | 1,265 | 1,496 |
Income before income taxes | 13,461 | 12,785 | 47,955 | 41,328 |
Income tax expense | 5,465 | 4,782 | 19,199 | 16,094 |
Net income | 7,996 | 8,003 | 28,756 | 25,234 |
Other comprehensive income: | ||||
Unrealized gain (loss) on interest rate hedge, net of tax | (979) | 476 | (1,560) | (784) |
Comprehensive income | $ 7,017 | $ 8,479 | $ 27,196 | $ 24,450 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.33 | $ 0.33 | $ 1.19 | $ 1.05 |
Diluted (in dollars per share) | $ 0.33 | $ 0.33 | $ 1.17 | $ 1.04 |
Weighted average shares outstanding, basic (in shares) | 24,203 | 24,113 | 24,182 | 24,091 |
Weighted average shares outstanding, diluted (in shares) | 24,535 | 24,393 | 24,483 | 24,334 |
UNAUDITED CONSOLIDATED STATEME5
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2013 | $ 26,759 | $ 204,962 | $ 2,594 | $ 234,315 |
Balance (in shares) at Dec. 31, 2013 | 24,040 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 0 | 33,883 | 0 | 33,883 |
Other comprehensive loss, net of tax | 0 | 0 | (1,472) | (1,472) |
Dividends declared ($0.47 per share) | 0 | (11,333) | 0 | (11,333) |
Dividends reinvested in common stock | $ 572 | 0 | 0 | 572 |
Dividends reinvested in common stock (in shares) | 19 | |||
Stock based compensation | $ 2,624 | 0 | 0 | 2,624 |
Stock options exercised | $ 1,141 | 0 | 0 | 1,141 |
Stock options exercised (in shares) | 51 | |||
Common stock issued for share awards | $ 0 | 0 | 0 | 0 |
Common stock issued for share awards (in shares) | 81 | |||
Common stock issued | $ 6 | 0 | 0 | 6 |
Common stock issued (in shares) | 1 | |||
Common stock repurchased | $ (1,785) | 0 | 0 | (1,785) |
Common stock repurchased (in shares) | (60) | |||
Net excess tax benefit from stock options exercised | $ 395 | 0 | 0 | 395 |
Balance at Dec. 31, 2014 | $ 29,712 | 227,512 | 1,122 | 258,346 |
Balance (in shares) at Dec. 31, 2014 | 24,132 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 0 | 28,756 | 0 | 28,756 |
Other comprehensive loss, net of tax | 0 | 0 | (1,560) | (1,560) |
Stock based compensation | 2,217 | 0 | 0 | 2,217 |
Stock options exercised | $ 818 | 0 | 0 | 818 |
Stock options exercised (in shares) | 35 | |||
Common stock issued for share awards | $ 0 | 0 | 0 | 0 |
Common stock issued for share awards (in shares) | 105 | |||
Common stock issued | $ 8 | 0 | 0 | 8 |
Common stock issued (in shares) | 2 | |||
Common stock repurchased | $ (1,799) | 0 | 0 | (1,799) |
Common stock repurchased (in shares) | (54) | |||
Net excess tax benefit from stock options exercised | $ 655 | 0 | 0 | 655 |
Balance at Sep. 30, 2015 | $ 31,611 | $ 256,268 | $ (438) | $ 287,441 |
Balance (in shares) at Sep. 30, 2015 | 24,220 |
UNAUDITED CONSOLIDATED STATEME6
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2014$ / shares | |
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract] | |
Dividends declared per share (in dollars per share) | $ 0.47 |
UNAUDITED CONSOLIDATED STATEME7
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows From Operating Activities | ||
Net income | $ 28,756 | $ 25,234 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 51,985 | 46,569 |
Amortization | 1,134 | 2,145 |
Provision for bad debt | 1,335 | 1,155 |
Stock based compensation expense | 1,893 | 1,850 |
Excess tax benefits on stock awards | (655) | (395) |
Deferred income taxes | (7,463) | (6,261) |
Net loss on disposal of equipment | 229 | 1,739 |
Realized loss on disposal of investments | 20 | 0 |
Unrealized (gain) loss on investments | 190 | (40) |
Net gains from patronage and equity investments | (540) | (667) |
Amortization of long term debt issuance costs | 430 | 453 |
Other | 323 | 1,295 |
(Increase) decrease in: | ||
Accounts receivable | (2,989) | (3,078) |
Materials and supplies | 286 | 3,111 |
Income taxes receivable | 14,752 | 14,434 |
Other assets | (3,990) | 354 |
Increase (decrease) in: | ||
Accounts payable | (4,174) | 2,411 |
Deferred lease payable | 733 | 760 |
Income taxes payable | 1,675 | 0 |
Other deferrals and accruals | (807) | 269 |
Net cash provided by operating activities | 83,123 | 91,338 |
Cash Flows From Investing Activities | ||
Acquisition of property, plant and equipment | (39,644) | (51,197) |
Proceeds from sale of equipment | 242 | 390 |
Cash distributions from investments | 38 | 40 |
Net cash used in investing activities | (39,364) | (50,767) |
Cash Flows From Financing Activities | ||
Principal payments on long-term debt | (17,250) | 0 |
Cash paid for debt issuance costs | (7,820) | 0 |
Excess tax benefits on stock awards | 655 | 395 |
Repurchases of stock | (1,799) | (1,785) |
Proceeds from issuances of stock | 826 | 1,146 |
Net cash used in financing activities | (25,388) | (244) |
Net increase in cash and cash equivalents | 18,371 | 40,327 |
Cash and cash equivalents: | ||
Beginning | 68,917 | 38,316 |
Ending | 87,288 | 78,643 |
Cash payments for: | ||
Interest | 5,550 | 5,927 |
Income taxes paid | $ 10,235 | $ 8,825 |
UNAUDITED CONSOLIDATED STATEME8
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Other cash flow information: | |
Capital expenditures | $ 1.1 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The interim consolidated financial statements of Shenandoah Telecommunications Company and Subsidiaries (collectively, the “Company”) are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the interim results have been reflected therein. All such adjustments were of a normal and recurring nature. These statements should be read in conjunction with the audited consolidated financial statements and related notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The balance sheet information at December 31, 2014 was derived from the audited December 31, 2014 consolidated balance sheet. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 2. Property, Plant and Equipment Property, plant and equipment consisted of the following (in thousands): September 30, 2015 December 31, 2014 Plant in service $ 700,828 $ 675,321 Plant under construction 27,735 18,078 728,563 693,399 Less accumulated amortization and depreciation 330,128 287,492 Net property, plant and equipment $ 398,435 $ 405,907 |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings per share [Abstract] | |
Earnings per share | 3. Earnings per share Basic net income per share was computed on the weighted average number of shares outstanding. Diluted net income per share was computed under the treasury stock method, assuming the conversion as of the beginning of the period, for all dilutive stock options. Of thousand and 698 thousand shares and options outstanding at , respectively, 46 thousand and zero were anti-dilutive, respectively. These shares and options have been excluded from the computations of diluted earnings per share for their respective period. There were no adjustments to net income for either period. |
Investments Carried at Fair Val
Investments Carried at Fair Value | 9 Months Ended |
Sep. 30, 2015 | |
Investments Carried at Fair Value [Abstract] | |
Investments Carried at Fair Value | 4. Investments Carried at Fair Value Investments include $ million and $2.7 million of investments carried at fair value at September 30, 2015 and December 31, 2014, respectively, consisting of equity, bond and money market mutual funds. Investments carried at fair value were acquired under a rabbi trust arrangement related to the Company’s nonqualified Supplemental Executive Retirement Plan (the “SERP”). The Company purchases investments in the trust to mirror the investment elections of participants in the SERP; gains and losses on the investments in the trust are reflected as increases or decreases in the liability owed to the participants. During the nine months ended September 30, 2015, the Company recognized $44 thousand in dividend and interest income from investments, and recorded net unrealized losses of $190 thousand on these investments. Fair values for these investments held under the rabbi trust were determined by Level 1 quoted market prices for the underlying mutual funds. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Financial Instruments [Abstract] | |
Financial Instruments | 5. Financial Instruments Financial instruments on the consolidated balance sheets that approximate fair value include: cash and cash equivalents, receivables, investments carried at fair value, payables, accrued liabilities, interest rate swaps and variable rate long-term debt. |
Derivative Instruments, Hedging
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income [Abstract] | |
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income | 6. Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income The Company’s objectives in using interest rate derivatives are to add stability to cash flows and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps (both those designated as cash flow hedges as well as those not designated as cash flow hedges) involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company entered into a pay-fixed, receive-variable interest rate swap of $174.6 million of notional principal in September 2012. This interest rate swap was designated as a cash flow hedge. The total outstanding notional amount of the cash flow hedge million as of September 30, 2015. The outstanding notional amount decreases as the Company makes scheduled principal payments on the debt. The effective portion of changes in the fair value of interest rate swaps designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Company uses its derivatives to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivative is recognized directly in earnings through interest expense. No hedge ineffectiveness was recognized during any of the periods presented. Amounts reported in accumulated other comprehensive income related to the interest rate swap designated and that qualifies as a cash flow hedge are reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. As of September 30, 2015, the Company estimates that $ million will be reclassified as an to interest expense during the next twelve months due to the interest rate swap since the hedge interest rate exceeds the variable interest rate on the debt. The table below presents the fair value of the Company’s derivative financial instrument as well as its classification on the consolidated balance sheet as of September 30, 2015 and December 31, 2014 (in thousands): Derivatives Fair Value as of Balance Sheet September 30, December 31, Derivatives designated as hedging instruments: Interest rate swap Accrued liabilities and other $ (1,141) $ (1,309 ) Deferred charges and other assets, net 402 3,180 Total derivatives designated as hedging instruments $ 739 $ 1,871 The fair value of interest rate swaps is determined using a pricing model with inputs that are observable in the market (Level 2 fair value inputs). The table below presents change in accumulated other comprehensive income by component for the nine months ended September 30, 2015 (in thousands): Gains and (Losses) on Cash Flow Hedges Income Tax (Expense) Benefit Accumulated Other Comprehensive Income (Loss) Balance as of December 31, 2014 $ 1,871 $ (749 ) $ 1,122 Other comprehensive loss before reclassifications (3,791 ) 1,521 (2,270 ) Amounts reclassified from accumulated other comprehensive income (to interest expense) 1,181 (471 ) 710 Net current period other comprehensive loss (2,610 ) 1,050 (1,560 ) Balance as of September 30, 2015 $ (739 ) $ 301 $ (438 ) |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information [Abstract] | |
Segment Information | 7. 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 September 30, 2015 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated Totals External revenues Service revenues $ 47,793 $ 22,284 $ 4,904 $ - $ - $ 74,981 Other 2,734 1,882 5,615 - - 10,231 Total external revenues 50,527 24,166 10,519 - - 85,212 Internal revenues 1,109 251 6,759 - (8,119 ) - Total operating revenues 51,636 24,417 17,278 - (8,119 ) 85,212 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 15,572 14,124 8,212 - (7,338 ) 30,570 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 9,027 4,948 1,688 5,553 (781 ) 20,435 Depreciation and amortization 9,644 5,948 3,404 122 - 19,118 Total operating expenses 34,243 25,020 13,304 5,675 (8,119 ) 70,123 Operating income (loss) $ 17,393 $ (603 ) $ 3,974 $ (5,675 ) $ - $ 15,089 Three months ended September 30, 2014 (in thousands) Wireless Cable (1) Wireline (1) Other Eliminations Consolidated Totals External revenues Service revenues $ 48,013 $ 19,173 $ 4,740 $ - $ - $ 71,926 Other 3,083 1,799 5,460 - - 10,342 Total external revenues 51,096 20,972 10,200 - - 82,268 Internal revenues 1,099 32 5,724 - (6,855 ) - Total operating revenues 52,195 21,004 15,924 - (6,855 ) 82,268 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 18,322 14,157 7,078 - (6,227 ) 33,330 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 8,645 5,107 1,533 3,406 (628 ) 18,063 Depreciation and amortization 7,895 5,864 2,875 97 - 16,731 Total operating expenses 34,862 25,128 11,486 3,503 (6,855 ) 68,124 Operating income (loss) $ 17,333 $ (4,124 ) $ 4,438 $ (3,503 ) $ - $ 14,144 Nine months ended September 30, 2015 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated Totals External revenues Service revenues $ 144,917 $ 65,802 $ 14,543 $ - $ - $ 225,262 Other 8,611 5,495 15,834 - - 29,940 Total external revenues 153,528 71,297 30,377 - - 255,202 Internal revenues 3,319 585 18,950 - (22,854 ) - Total operating revenues 156,847 71,882 49,327 - (22,854 ) 255,202 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 47,661 41,378 23,224 - (20,722 ) 91,541 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 26,996 14,924 4,923 13,466 (2,132 ) 58,177 Depreciation and amortization 26,089 17,286 9,411 333 - 53,119 Total operating expenses 100,746 73,588 37,558 13,799 (22,854 ) 202,837 Operating income (loss) $ 56,101 $ (1,706 ) $ 11,769 $ (13,799 ) $ - $ 52,365 Nine months ended September 30, 2014 (in thousands) Wireless Cable (1) Wireline (1) Other Eliminations Consolidated Totals External revenues Service revenues $ 143,112 $ 57,028 $ 14,255 $ - $ - $ 214,395 Other 8,653 5,202 15,886 - - 29,741 Total external revenues 151,765 62,230 30,141 - - 244,136 Internal revenues 3,283 91 17,202 - (20,576 ) - Total operating revenues 155,048 62,321 47,343 - (20,576 ) 244,136 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 55,455 38,969 22,297 - (18,751 ) 97,970 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 24,734 14,487 4,270 10,170 (1,825 ) 51,836 Depreciation and amortization 23,162 17,035 8,225 292 - 48,714 Total operating expenses 103,351 70,491 34,792 10,462 (20,576 ) 198,520 Operating income (loss) $ 51,697 $ (8,170 ) $ 12,551 $ (10,462 ) $ - $ 45,616 (1) Prior year figures have been recast to conform to current year presentation. A reconciliation of the total of the reportable segments’ operating income to consolidated income before taxes is as follows: Three Months Ended September 30, (in thousands) 2015 2014 Total consolidated operating income $ 15,089 $ 14,144 Interest expense (1,808 ) (2,007 ) Non-operating income, net 180 648 Income before taxes $ 13,461 $ 12,785 Nine Months Ended September 30, 2015 2014 Total consolidated operating income $ 52,365 $ 45,616 Interest expense (5,663 ) (6,119 ) Non-operating income (expense), net 1,253 1,831 Income before taxes $ 47,955 $ 41,328 The Company’s assets by segment are as follows: (in thousands) September 30, 2015 December 31, 2014 Wireless $ 243,962 $ 218,887 Cable 207,674 201,232 Wireline 98,975 98,081 Other 426,091 446,028 Combined totals 976,702 964,228 Inter-segment eliminations (356,458 ) (344,986 ) Consolidated totals $ 620,244 $ 619,242 During the third quarter of 2015, the Company discovered a programming logic error in its fixed assets system used to calculate depreciation expense. As a result, the increased depreciation expense by $2.6 million in the third quarter of 2015 ($2.0 million for the nine months ended September 30, 2015) and increased accumulated depreciation by $2.6 million. Most of the out-of-period depreciation expense correction affected the Company's Wireless segment, by $1.9 million and $1.6 million for the three and nine months ended September 30, 2015, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 8. Income Taxes The Company files U.S. federal income tax returns and various state and local income tax returns. Years prior to 2012 are no longer subject to examination. The Company is not subject to any state or federal income tax audits as of September 30, 2015. |
Acquisition of NTELOS Holdings
Acquisition of NTELOS Holdings Corporation | 9 Months Ended |
Sep. 30, 2015 | |
Acquisition of NTELOS Holdings Corporation [Abstract] | |
Acquisition of NTELOS Holdings Corporation | 9. Acquisition of NTELOS Holdings Corporation On August 11, 2015, the Company announced that it had entered into a definitive agreement to acquire NTELOS Holdings Corporation ("nTelos") for $9.25 per share in cash for a total equity value of approximately $208 million, after including shares expected to vest on change of control. At closing, the Company will pay off nTelos' outstanding debt, which was $523 million at June 30, 2015. Under the terms of the agreement, the Company will acquire all of nTelos' stock and operations including wireless network assets, retail stores and approximately 298,000 retail subscribers in the nTelos Western Markets. The Company will complete nTelos' plans to close down its Eastern Markets. The Company anticipates closing on the acquisition by early 2016. Concurrent with the signing of the agreement with nTelos, the Company and Sprint Corporation ("Sprint") entered into a series of agreements, including an Addendum to the Shentel Affiliate Agreement and related agreements, whereby the Company and Sprint will, among other things, exchange certain assets in the nTelos Western Markets. The Company will convert approximately 290,000 nTelos retail wireless customers into Sprint branded affiliate customers, and an additional 8,000 nTelos retail wireless customers into Sprint branded retail customers. Sprint will transition its existing retail wireless operations in the nTelos footprint, including approximately 291,000 Sprint retail customers homed in the nTelos footprint, to Sprint branded affiliate customers. These existing Sprint retail customers, in combination with the nTelos customers, will enable the Company to serve approximately 581,000 additional customers under its affiliate arrangement with Sprint. As part of the transaction, the Company and Sprint have also agreed to extend their Affiliate relationship by five years through 2029. Sprint will receive certain spectrum assets of nTelos, and has agreed to reduce the 8% and 6% Management Fee portions of the retained revenues that would otherwise be due to Sprint under the Affiliate Agreement by $252 million over an expected period of five to six years. In addition, at closing Sprint will purchase the nTelos equipment receivables for nTelos customers at a discounted amount to be paid over 24 months. The Company will finance the nTelos acquisition and network upgrade with $960 million in credit facilities (including term loans totaling $885 million and a revolver of $75 million) from a syndicate of lenders. Proceeds will be used to finance the transaction and refinance the Company’s existing outstanding indebtedness. This commitment is fully underwritten by CoBank, ACB; Royal Bank of Canada; and Fifth Third Bank. Upon the closing of the merger, the Company expects to have total long-term debt outstanding of approximately $810 million and cash of $75 million. The revolver and an additional $75 million in a delayed draw term loan are not expected to be drawn at close. During the three and nine months ended September 30, 2015, the Company has incurred $2.1 million and $3.2 million, respectively, of expenses associated with the planned acquisition of nTelos. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events On October 19, 2015, the Company’s Board of Directors declared a dividend of $0.48 per share, payable on December 1, 2015, to shareholders of record as of November 5, 2015. The Company expects to pay out approximately $11.6 million excluding the effect of dividend reinvestments. On October 19, 2015, the Board of Directors also declared a two-for-one stock split, effective for shareholders of record as of the close of business on December 31, 2015. Shareholders will receive one additional share of common stock of the Company for each share held on the record date. After the split, the Company will have approximately 48.5 million shares outstanding, and 96 million total authorized shares. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consisted of the following (in thousands): September 30, 2015 December 31, 2014 Plant in service $ 700,828 $ 675,321 Plant under construction 27,735 18,078 728,563 693,399 Less accumulated amortization and depreciation 330,128 287,492 Net property, plant and equipment $ 398,435 $ 405,907 |
Derivative Instruments, Hedgi20
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Derivative Financial Instrument as Well as its Classification on the Consolidated Balance Sheet | The table below presents the fair value of the Company’s derivative financial instrument as well as its classification on the consolidated balance sheet as of September 30, 2015 and December 31, 2014 (in thousands): Derivatives Fair Value as of Balance Sheet September 30, December 31, Derivatives designated as hedging instruments: Interest rate swap Accrued liabilities and other $ (1,141) $ (1,309 ) Deferred charges and other assets, net 402 3,180 Total derivatives designated as hedging instruments $ 739 $ 1,871 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below presents change in accumulated other comprehensive income by component for the nine months ended September 30, 2015 (in thousands): Gains and (Losses) on Cash Flow Hedges Income Tax (Expense) Benefit Accumulated Other Comprehensive Income (Loss) Balance as of December 31, 2014 $ 1,871 $ (749 ) $ 1,122 Other comprehensive loss before reclassifications (3,791 ) 1,521 (2,270 ) Amounts reclassified from accumulated other comprehensive income (to interest expense) 1,181 (471 ) 710 Net current period other comprehensive loss (2,610 ) 1,050 (1,560 ) Balance as of September 30, 2015 $ (739 ) $ 301 $ (438 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information [Abstract] | |
Selected Financial Data for Segments | 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 September 30, 2015 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated Totals External revenues Service revenues $ 47,793 $ 22,284 $ 4,904 $ - $ - $ 74,981 Other 2,734 1,882 5,615 - - 10,231 Total external revenues 50,527 24,166 10,519 - - 85,212 Internal revenues 1,109 251 6,759 - (8,119 ) - Total operating revenues 51,636 24,417 17,278 - (8,119 ) 85,212 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 15,572 14,124 8,212 - (7,338 ) 30,570 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 9,027 4,948 1,688 5,553 (781 ) 20,435 Depreciation and amortization 9,644 5,948 3,404 122 - 19,118 Total operating expenses 34,243 25,020 13,304 5,675 (8,119 ) 70,123 Operating income (loss) $ 17,393 $ (603 ) $ 3,974 $ (5,675 ) $ - $ 15,089 Three months ended September 30, 2014 (in thousands) Wireless Cable (1) Wireline (1) Other Eliminations Consolidated Totals External revenues Service revenues $ 48,013 $ 19,173 $ 4,740 $ - $ - $ 71,926 Other 3,083 1,799 5,460 - - 10,342 Total external revenues 51,096 20,972 10,200 - - 82,268 Internal revenues 1,099 32 5,724 - (6,855 ) - Total operating revenues 52,195 21,004 15,924 - (6,855 ) 82,268 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 18,322 14,157 7,078 - (6,227 ) 33,330 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 8,645 5,107 1,533 3,406 (628 ) 18,063 Depreciation and amortization 7,895 5,864 2,875 97 - 16,731 Total operating expenses 34,862 25,128 11,486 3,503 (6,855 ) 68,124 Operating income (loss) $ 17,333 $ (4,124 ) $ 4,438 $ (3,503 ) $ - $ 14,144 Nine months ended September 30, 2015 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated Totals External revenues Service revenues $ 144,917 $ 65,802 $ 14,543 $ - $ - $ 225,262 Other 8,611 5,495 15,834 - - 29,940 Total external revenues 153,528 71,297 30,377 - - 255,202 Internal revenues 3,319 585 18,950 - (22,854 ) - Total operating revenues 156,847 71,882 49,327 - (22,854 ) 255,202 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 47,661 41,378 23,224 - (20,722 ) 91,541 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 26,996 14,924 4,923 13,466 (2,132 ) 58,177 Depreciation and amortization 26,089 17,286 9,411 333 - 53,119 Total operating expenses 100,746 73,588 37,558 13,799 (22,854 ) 202,837 Operating income (loss) $ 56,101 $ (1,706 ) $ 11,769 $ (13,799 ) $ - $ 52,365 Nine months ended September 30, 2014 (in thousands) Wireless Cable (1) Wireline (1) Other Eliminations Consolidated Totals External revenues Service revenues $ 143,112 $ 57,028 $ 14,255 $ - $ - $ 214,395 Other 8,653 5,202 15,886 - - 29,741 Total external revenues 151,765 62,230 30,141 - - 244,136 Internal revenues 3,283 91 17,202 - (20,576 ) - Total operating revenues 155,048 62,321 47,343 - (20,576 ) 244,136 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 55,455 38,969 22,297 - (18,751 ) 97,970 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 24,734 14,487 4,270 10,170 (1,825 ) 51,836 Depreciation and amortization 23,162 17,035 8,225 292 - 48,714 Total operating expenses 103,351 70,491 34,792 10,462 (20,576 ) 198,520 Operating income (loss) $ 51,697 $ (8,170 ) $ 12,551 $ (10,462 ) $ - $ 45,616 (1) Prior year figures have been recast to conform to current year presentation. |
Reconciliation of Income from Continuing Operations from Segments to Consolidated | A reconciliation of the total of the reportable segments’ operating income to consolidated income before taxes is as follows: Three Months Ended September 30, (in thousands) 2015 2014 Total consolidated operating income $ 15,089 $ 14,144 Interest expense (1,808 ) (2,007 ) Non-operating income, net 180 648 Income before taxes $ 13,461 $ 12,785 Nine Months Ended September 30, 2015 2014 Total consolidated operating income $ 52,365 $ 45,616 Interest expense (5,663 ) (6,119 ) Non-operating income (expense), net 1,253 1,831 Income before taxes $ 47,955 $ 41,328 |
Assets by Segment | The Company’s assets by segment are as follows: (in thousands) September 30, 2015 December 31, 2014 Wireless $ 243,962 $ 218,887 Cable 207,674 201,232 Wireline 98,975 98,081 Other 426,091 446,028 Combined totals 976,702 964,228 Inter-segment eliminations (356,458 ) (344,986 ) Consolidated totals $ 620,244 $ 619,242 |
Property, Plant and Equipment22
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 728,563 | $ 693,399 |
Less accumulated amortization and depreciation | 330,128 | 287,492 |
Net property, plant and equipment | 398,435 | 405,907 |
Plant in Service [Member] | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | 700,828 | 675,321 |
Plant under Construction [Member] | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 27,735 | $ 18,078 |
Earnings per share (Details)
Earnings per share (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings per share [Abstract] | ||
Shares and options outstanding (in shares) | 664 | 698 |
Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 46 | 0 |
Investments Carried at Fair V24
Investments Carried at Fair Value (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Investments Carried at Fair Value [Abstract] | |||
Investments at fair value | $ 2,515 | $ 2,661 | |
Dividend and interest income from investments | 44 | ||
Net unrealized loss recognized | $ (190) | $ 40 |
Derivative Instruments, Hedgi25
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2012 | |
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income [Abstract] | |||
Notional amount of cash flow hedges | $ 157,200 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Accumulated Other Comprehensive Income (Loss), net of tax | 1,122 | ||
Accumulated Other Comprehensive Income (Loss), net of tax | (438) | ||
Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Amount of notional principal interest rate swap | $ 174,600 | ||
Gains and (Losses) on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income Loss Before Tax [Abstract] | |||
Accumulated Other Comprehensive Income (Loss), before Tax | 1,871 | ||
Other comprehensive loss before reclassifications, before tax | (3,791) | ||
Amounts reclassified from accumulated other comprehensive income (to interest expense), before tax | 1,181 | ||
Net current period other comprehensive loss, before tax | (2,610) | ||
Accumulated Other Comprehensive Income (Loss), before Tax | (739) | ||
Accumulated Other Comprehensive Income Loss, Tax [Abstract] | |||
Accumulated Other Comprehensive Income (Loss), tax | (749) | ||
Other comprehensive income before reclassifications, tax | 1,521 | ||
Amounts reclassified From accumulated other comprehensive income (to interest expense), tax | (471) | ||
Net current period other comprehensive loss | 1,050 | ||
Accumulated Other Comprehensive Income (Loss), tax | 301 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Accumulated Other Comprehensive Income (Loss), net of tax | 1,122 | ||
Other comprehensive income before reclassifications, net of tax | (2,270) | ||
Amounts reclassified from accumulated other comprehensive income (to interest expense), net of tax | 710 | ||
Net current period other comprehensive loss, net of tax | (1,560) | ||
Accumulated Other Comprehensive Income (Loss), net of tax | (438) | ||
Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified as an increase to interest expense during next twelve months | 1,100 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets (Liabilities), at Fair Value, Net | (739) | $ 1,871 | |
Designated as Hedging Instrument [Member] | Accrued Liabilities and Other [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives Liabilities, Fair Value | (1,141) | (1,309) | |
Designated as Hedging Instrument [Member] | Deferred Charges and Other Assets, Net [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets, Fair Value | $ 402 | $ 3,180 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015USD ($)State | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)SegmentState | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |||
Segment Information [Abstract] | |||||||
Number of reportable segments | Segment | 3 | ||||||
Non Sprint operations, number of states | State | 4 | 4 | |||||
External revenues [Abstract] | |||||||
Total operating revenues | $ 85,212 | $ 82,268 | $ 255,202 | $ 244,136 | |||
Operating expenses [Abstract] | |||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | 30,570 | 33,330 | 91,541 | 97,970 | |||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 20,435 | 18,063 | 58,177 | 51,836 | |||
Depreciation and amortization | 19,118 | 16,731 | 53,119 | 48,714 | |||
Total operating expenses | 70,123 | 68,124 | 202,837 | 198,520 | |||
Operating income (loss) | 15,089 | 14,144 | 52,365 | 45,616 | |||
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||
Total consolidated operating income | 15,089 | 14,144 | 52,365 | 45,616 | |||
Interest expense | (1,808) | (2,007) | (5,663) | (6,119) | |||
Non-operating income, net | 180 | 648 | 1,253 | 1,831 | |||
Income before income taxes | 13,461 | 12,785 | 47,955 | 41,328 | |||
Assets by segment [Abstract] | |||||||
Assets | 620,244 | 620,244 | $ 619,242 | ||||
Error Correction [Abstract] | |||||||
Depreciation | 51,985 | 46,569 | |||||
Accumulated depreciation | 330,128 | 330,128 | 287,492 | ||||
Correction of Programming Logic Error in Fixed Assets System Used to Calculate Depreciation Expense [Member] | |||||||
Error Correction [Abstract] | |||||||
Depreciation | 2,600 | ||||||
Error correction amount | 2,000 | ||||||
Accumulated depreciation | 2,600 | 2,600 | |||||
Wireless [Member] | |||||||
Assets by segment [Abstract] | |||||||
Assets | 243,962 | 243,962 | 218,887 | ||||
Wireless [Member] | Correction of Programming Logic Error in Fixed Assets System Used to Calculate Depreciation Expense [Member] | |||||||
Error Correction [Abstract] | |||||||
Depreciation | 1,900 | 1,600 | |||||
Cable [Member] | |||||||
Assets by segment [Abstract] | |||||||
Assets | 207,674 | 207,674 | 201,232 | ||||
Wireline [Member] | |||||||
Assets by segment [Abstract] | |||||||
Assets | 98,975 | 98,975 | 98,081 | ||||
Other [Member] | |||||||
Assets by segment [Abstract] | |||||||
Assets | 426,091 | 426,091 | 446,028 | ||||
Total Segments [Member] | |||||||
Assets by segment [Abstract] | |||||||
Assets | 976,702 | 976,702 | 964,228 | ||||
Reportable Segments [Member] | |||||||
External revenues [Abstract] | |||||||
Service revenues | 74,981 | 71,926 | 225,262 | 214,395 | |||
Other | 10,231 | 10,342 | 29,940 | 29,741 | |||
Total external revenues | 85,212 | 82,268 | 255,202 | 244,136 | |||
Internal revenues | 0 | 0 | 0 | 0 | |||
Total operating revenues | 85,212 | 82,268 | 255,202 | 244,136 | |||
Operating expenses [Abstract] | |||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | 30,570 | 33,330 | 91,541 | 97,970 | |||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 20,435 | 18,063 | 58,177 | 51,836 | |||
Depreciation and amortization | 19,118 | 16,731 | 53,119 | 48,714 | |||
Total operating expenses | 70,123 | 68,124 | 202,837 | 198,520 | |||
Operating income (loss) | 15,089 | 14,144 | 52,365 | 45,616 | |||
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||
Total consolidated operating income | 15,089 | 14,144 | 52,365 | 45,616 | |||
Reportable Segments [Member] | Wireless [Member] | |||||||
External revenues [Abstract] | |||||||
Service revenues | 47,793 | 48,013 | 144,917 | 143,112 | |||
Other | 2,734 | 3,083 | 8,611 | 8,653 | |||
Total external revenues | 50,527 | 51,096 | 153,528 | 151,765 | |||
Internal revenues | 1,109 | 1,099 | 3,319 | 3,283 | |||
Total operating revenues | 51,636 | 52,195 | 156,847 | 155,048 | |||
Operating expenses [Abstract] | |||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | 15,572 | 18,322 | 47,661 | 55,455 | |||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 9,027 | 8,645 | 26,996 | 24,734 | |||
Depreciation and amortization | 9,644 | 7,895 | 26,089 | 23,162 | |||
Total operating expenses | 34,243 | 34,862 | 100,746 | 103,351 | |||
Operating income (loss) | 17,393 | 17,333 | 56,101 | 51,697 | |||
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||
Total consolidated operating income | 17,393 | 17,333 | 56,101 | 51,697 | |||
Reportable Segments [Member] | Cable [Member] | |||||||
External revenues [Abstract] | |||||||
Service revenues | 22,284 | 19,173 | [1] | 65,802 | 57,028 | [1] | |
Other | 1,882 | 1,799 | [1] | 5,495 | 5,202 | [1] | |
Total external revenues | 24,166 | 20,972 | [1] | 71,297 | 62,230 | [1] | |
Internal revenues | 251 | 32 | [1] | 585 | 91 | [1] | |
Total operating revenues | 24,417 | 21,004 | [1] | 71,882 | 62,321 | [1] | |
Operating expenses [Abstract] | |||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | 14,124 | 14,157 | [1] | 41,378 | 38,969 | [1] | |
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 4,948 | 5,107 | [1] | 14,924 | 14,487 | [1] | |
Depreciation and amortization | 5,948 | 5,864 | [1] | 17,286 | 17,035 | [1] | |
Total operating expenses | 25,020 | 25,128 | [1] | 73,588 | 70,491 | [1] | |
Operating income (loss) | (603) | (4,124) | [1] | (1,706) | (8,170) | [1] | |
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||
Total consolidated operating income | (603) | (4,124) | [1] | (1,706) | (8,170) | [1] | |
Reportable Segments [Member] | Wireline [Member] | |||||||
External revenues [Abstract] | |||||||
Service revenues | 4,904 | 4,740 | [1] | 14,543 | 14,255 | [1] | |
Other | 5,615 | 5,460 | [1] | 15,834 | 15,886 | [1] | |
Total external revenues | 10,519 | 10,200 | [1] | 30,377 | 30,141 | [1] | |
Internal revenues | 6,759 | 5,724 | [1] | 18,950 | 17,202 | [1] | |
Total operating revenues | 17,278 | 15,924 | [1] | 49,327 | 47,343 | [1] | |
Operating expenses [Abstract] | |||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | 8,212 | 7,078 | [1] | 23,224 | 22,297 | [1] | |
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 1,688 | 1,533 | [1] | 4,923 | 4,270 | [1] | |
Depreciation and amortization | 3,404 | 2,875 | [1] | 9,411 | 8,225 | [1] | |
Total operating expenses | 13,304 | 11,486 | [1] | 37,558 | 34,792 | [1] | |
Operating income (loss) | 3,974 | 4,438 | [1] | 11,769 | 12,551 | [1] | |
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||
Total consolidated operating income | 3,974 | 4,438 | [1] | 11,769 | 12,551 | [1] | |
Reportable Segments [Member] | Other [Member] | |||||||
External revenues [Abstract] | |||||||
Service revenues | 0 | 0 | 0 | 0 | |||
Other | 0 | 0 | 0 | 0 | |||
Total external revenues | 0 | 0 | 0 | 0 | |||
Internal revenues | 0 | 0 | 0 | 0 | |||
Total operating revenues | 0 | 0 | 0 | 0 | |||
Operating expenses [Abstract] | |||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | 0 | 0 | 0 | 0 | |||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 5,553 | 3,406 | 13,466 | 10,170 | |||
Depreciation and amortization | 122 | 97 | 333 | 292 | |||
Total operating expenses | 5,675 | 3,503 | 13,799 | 10,462 | |||
Operating income (loss) | (5,675) | (3,503) | (13,799) | (10,462) | |||
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||
Total consolidated operating income | (5,675) | (3,503) | (13,799) | (10,462) | |||
Eliminations [Member] | |||||||
External revenues [Abstract] | |||||||
Service revenues | 0 | 0 | 0 | 0 | |||
Other | 0 | 0 | 0 | 0 | |||
Total external revenues | 0 | 0 | 0 | 0 | |||
Internal revenues | (8,119) | (6,855) | (22,854) | (20,576) | |||
Total operating revenues | (8,119) | (6,855) | (22,854) | (20,576) | |||
Operating expenses [Abstract] | |||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | (7,338) | (6,227) | (20,722) | (18,751) | |||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | (781) | (628) | (2,132) | (1,825) | |||
Depreciation and amortization | 0 | 0 | 0 | 0 | |||
Total operating expenses | (8,119) | (6,855) | (22,854) | (20,576) | |||
Operating income (loss) | 0 | 0 | 0 | 0 | |||
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||
Total consolidated operating income | 0 | $ 0 | 0 | $ 0 | |||
Assets by segment [Abstract] | |||||||
Assets | $ (356,458) | $ (356,458) | $ (344,986) | ||||
[1] | Prior year figures have been recast to conform to current year presentation. |
Acquisition of NTELOS Holding27
Acquisition of NTELOS Holdings Corporation (Details) $ / shares in Units, $ in Millions | Aug. 11, 2015USD ($)Customer$ / shares | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($)Customer | Jun. 30, 2015USD ($) |
Business Acquisition [Line Items] | ||||
Total debt outstanding | $ 810 | $ 810 | ||
Expected cash amount | 75 | 75 | ||
Expected to drawn amount after closing of the merger | 75 | $ 75 | ||
NTELOS Holdings Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Share price (in dollars per share) | $ / shares | $ 9.25 | |||
Total equity value | $ 208 | |||
Number of retail subscribers acquire | Customer | 298,000 | |||
Total debt outstanding | $ 523 | |||
Number of retail wireless customers convert into Sprint branded affiliate customers | Customer | 290,000 | |||
Additional number of retail wireless customers convert into Sprint branded retail customers | Customer | 8,000 | |||
Number of sprint retail customers homed to sprint branded customers | Customer | 291,000 | |||
Number of additional customers to serve under affiliate agreement with sprint | Customer | 581,000 | |||
Term of affiliate relationship agreement with sprint | 5 years | |||
Management fee on post paid services | 8.00% | |||
Management fee on prepaid services | 6.00% | |||
Amount of retained revenue reduced by Sprint under the affiliate agreement | $ 252 | |||
Period for purchase equipment receivables for customers at discount | 24 months | |||
Amount of expenses associated with acquisition | $ 2.1 | $ 3.2 | ||
NTELOS Holdings Corporation [Member] | Credit Facilities [Member] | ||||
Business Acquisition [Line Items] | ||||
Amount finance for acquisition and network upgrade by entity | 960 | |||
NTELOS Holdings Corporation [Member] | Term Loan [Member] | ||||
Business Acquisition [Line Items] | ||||
Amount finance for acquisition and network upgrade by entity | 885 | |||
NTELOS Holdings Corporation [Member] | Revolver [Member] | ||||
Business Acquisition [Line Items] | ||||
Amount finance for acquisition and network upgrade by entity | $ 75 | |||
NTELOS Holdings Corporation [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Expected period to reduce the retained revenues under the affiliate agreement | 5 years | |||
NTELOS Holdings Corporation [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Expected period to reduce the retained revenues under the affiliate agreement | 6 years |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | Oct. 19, 2015USD ($)$ / sharesshares | Sep. 30, 2015 |
Subsequent Event [Line Items] | ||
Date of declaration | Oct. 19, 2015 | |
Date of payment | Dec. 1, 2015 | |
Date of record | Nov. 5, 2015 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Dividend payable (in dollars per share) | $ / shares | $ 0.48 | |
Dividends payable | $ | $ 11.6 | |
Stock split conversion ratio | 2 | |
Additional shares issued as part of stock split (in shares) | 1 | |
Shares outstanding (in shares) | 48,500,000 | |
Shares authorized (in shares) | 96,000,000 |