Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 21, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-09881 | |
Entity Registrant Name | SHENANDOAH TELECOMMUNICATIONS COMPANY | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 54-1162807 | |
Entity Address, Address Line One | 500 Shentel Way | |
Entity Address, City or Town | Edinburg | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22824 | |
City Area Code | 540 | |
Local Phone Number | 984-4141 | |
Title of 12(b) Security | Common Stock (No Par Value) | |
Trading Symbol | SHEN | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 50,246,901 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000354963 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 48,396 | $ 44,061 |
Accounts receivable, net of allowance for doubtful accounts of $698 and $776, respectively | 15,854 | 20,615 |
Income taxes receivable | 5,079 | 29,755 |
Prepaid expenses and other | 12,762 | 11,509 |
Current assets held for sale | 22,432 | 22,622 |
Total current assets | 104,523 | 128,562 |
Investments | 13,118 | 12,971 |
Property, plant and equipment, net | 739,587 | 687,553 |
Goodwill and intangible assets, net | 81,392 | 81,515 |
Operating lease right-of-use assets | 54,999 | 53,859 |
Deferred charges and other assets | 13,021 | 13,259 |
Total assets | 1,006,640 | 977,719 |
Current liabilities: | ||
Current maturities of long-term debt, net of unamortized loan fees | 1,302 | 648 |
Accounts payable | 48,822 | 49,173 |
Advanced billings and customer deposits | 12,391 | 12,425 |
Accrued compensation | 6,857 | 9,616 |
Current operating lease liabilities | 2,946 | 2,829 |
Accrued liabilities and other | 16,103 | 17,906 |
Current liabilities held for sale | 3,815 | 3,824 |
Total current liabilities | 92,236 | 96,421 |
Long-term debt, less current maturities, net of unamortized loan fees | 98,655 | 74,306 |
Other long-term liabilities: | ||
Deferred income taxes | 86,335 | 84,600 |
Asset retirement obligations | 10,252 | 9,932 |
Benefit plan obligations | 3,887 | 3,758 |
Non-current operating lease liabilities | 51,629 | 50,477 |
Other liabilities | 20,866 | 20,218 |
Total other long-term liabilities | 172,969 | 168,985 |
Commitments and contingencies (Note 12) | ||
Shareholders’ equity: | ||
Common stock, no par value, authorized 96,000; 50,247 and 50,110 issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 0 | 0 |
Additional paid in capital | 60,160 | 57,453 |
Retained earnings | 582,620 | 580,554 |
Total shareholders’ equity | 642,780 | 638,007 |
Total liabilities and shareholders’ equity | $ 1,006,640 | $ 977,719 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 698 | $ 776 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 96,000 | 96,000 |
Common stock, shares issued (in shares) | 50,247 | 50,110 |
Common stock, shares, outstanding (in shares) | 50,247 | 50,110 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Service revenue and other [Member] | Service revenue and other [Member] |
Service revenue and other | $ 71,686 | $ 64,414 |
Operating expenses: | ||
Cost of services exclusive of depreciation and amortization | 26,567 | 26,339 |
Selling, general and administrative | 26,609 | 23,771 |
Depreciation and amortization | 15,782 | 14,684 |
Total operating expenses | 68,958 | 64,794 |
Operating income (loss) | 2,728 | (380) |
Other income (expense): | ||
Other income (expense), net | 1,117 | (170) |
Income (loss) before income taxes | 3,845 | (550) |
Income tax expense | 1,779 | 53 |
Net income (loss) | $ 2,066 | $ (603) |
Net income (loss) per share, basic and diluted: | ||
Basic net income (loss)per share (in dollars per share) | $ 0.04 | $ (0.01) |
Diluted net income (loss) per share (in dollars per share) | $ 0.04 | $ (0.01) |
Weighted average shares outstanding, basic (in shares) | 50,291 | 50,146 |
Weighted average shares outstanding, diluted (in shares) | 50,512 | 50,146 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Shares of Common Stock (no par value) | Additional Paid in Capital | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2021 | 49,965 | |||
Beginning balance at Dec. 31, 2021 | $ 642,275 | $ 49,351 | $ 592,924 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | (603) | (603) | ||
Stock based compensation (in shares) | 110 | |||
Stock-based compensation | 3,252 | 3,252 | ||
Common stock issued (in shares) | 1 | |||
Common stock issued | 8 | 8 | ||
Shares surrendered for settlement of employee taxes upon issuance of vested equity awards (in shares) | (27) | |||
Shares surrendered for settlement of employee taxes upon issuance of vested equity awards | (603) | (603) | ||
Ending balance (in shares) at Mar. 31, 2022 | 50,049 | |||
Ending balance at Mar. 31, 2022 | $ 644,329 | 52,008 | 592,321 | |
Beginning balance (in shares) at Dec. 31, 2022 | 50,110 | 50,110 | ||
Beginning balance at Dec. 31, 2022 | $ 638,007 | 57,453 | 580,554 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 2,066 | 2,066 | ||
Stock based compensation (in shares) | 196 | |||
Stock-based compensation | 3,852 | 3,852 | ||
Common stock issued (in shares) | 1 | |||
Common stock issued | 11 | 11 | ||
Shares surrendered for settlement of employee taxes upon issuance of vested equity awards (in shares) | (60) | |||
Shares surrendered for settlement of employee taxes upon issuance of vested equity awards | $ (1,156) | (1,156) | ||
Ending balance (in shares) at Mar. 31, 2023 | 50,247 | 50,247 | ||
Ending balance at Mar. 31, 2023 | $ 642,780 | $ 60,160 | $ 582,620 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,066 | $ (603) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 15,782 | 14,684 |
Stock-based compensation expense, net of amount capitalized | 3,717 | 3,143 |
Deferred income taxes | 1,735 | (349) |
Other, net | 740 | 1,017 |
Changes in assets and liabilities: | ||
Accounts receivable | 4,488 | 5,890 |
Current income taxes | 24,676 | 459 |
Operating lease assets and liabilities, net | 129 | 80 |
Other assets | (1,030) | (1,365) |
Accounts payable | (837) | (4,130) |
Other deferrals and accruals | (3,142) | (2,760) |
Net cash provided by operating activities | 48,324 | 16,066 |
Cash flows from investing activities: | ||
Capital expenditures | (67,671) | (45,693) |
Proceeds from sale of assets and other | 101 | 86 |
Net cash used in investing activities | (67,570) | (45,607) |
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 25,000 | 0 |
Taxes paid for equity award issuances | (1,156) | (603) |
Payments for financing arrangements and other | (263) | (219) |
Net cash provided by (used in) financing activities | 23,581 | (822) |
Net increase (decrease) in cash and cash equivalents | 4,335 | (30,363) |
Cash and cash equivalents, beginning of period | 44,061 | 84,344 |
Cash and cash equivalents, end of period | 48,396 | 53,981 |
Supplemental Disclosures of Cash Flow Information | ||
Interest paid | 1,327 | 0 |
Income tax refunds received | $ 25,030 | $ 0 |
Basis of Presentation and Other
Basis of Presentation and Other Information | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Other Information | Basis of Presentation and Other Information Shenandoah Telecommunications Company and its subsidiaries (“Shentel”, “we”, “our”, “us”, or the “Company”) provide broadband data, video and voice services to residential and commercial customers in portions of Virginia, West Virginia, Maryland, Pennsylvania and Kentucky, via fiber optic and hybrid fiber coaxial cable networks. We also lease dark fiber and provide Ethernet and Wavelength fiber optic services to enterprise and wholesale customers throughout the entirety of our service area. The Company also provides voice and DSL telephone services to customers in Virginia’s Shenandoah County and portions of adjacent counties as a Rural Local Exchange Carrier (“RLEC”). These integrated networks are connected by a fiber network. All of these operations are contained within our Broadband reporting segment. Our Tower segment owns 222 cell towers and leases colocation space on those towers to wireless communications providers. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. All normal recurring adjustments considered necessary for a fair presentation have been included. Certain disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2022. The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues and expenses and related disclosures. On an on-going basis we evaluate significant estimates and assumptions, including, but not limited to, revenue recognition, stock-based compensation, estimated useful lives of assets, impairment of goodwill and indefinite-lived intangible assets, intangible assets subject to amortization, and the computation of income taxes. Future events and their effects cannot be predicted with certainty; accordingly, the Company’s accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the financial statements will change as new events occur, as more experience is acquired, as additional information is obtained, and as the Company’s operating environment changes. Management evaluates and updates assumptions and estimates on an ongoing basis. Actual results may differ from these estimates under different assumptions or conditions. Adoption of New Accounting Standards There have been no material developments related to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company's unaudited condensed consolidated financial statements and note disclosures from those disclosed in the Company's Annual Report on Form 10-K for its fiscal year ended December 31, 2022, that would be expected to impact the Company. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Contract Assets The Company’s contract assets primarily include commissions incurred to acquire contracts with customers. The Company incurs commission expenses related to in-house and third-party vendors which are capitalized and amortized over the expected customer benefit period which is approximately six years. The Company's current contract assets are included in prepaid expenses and other and the Company's non-current contract assets are included in deferred charges and other assets in its unaudited condensed consolidated balance sheets. Amortization of capitalized commission expenses is recorded in selling, general and administrative expenses in the Company's unaudited condensed consolidated statements of operations. The following tables present the activity of current and non-current contract assets: Three Months Ended (in thousands) 2023 2022 Beginning Balance $ 8,646 $ 8,147 Commission payments 891 338 Contract asset amortization (781) (182) Ending Balance $ 8,756 $ 8,303 Contract Liabilities The Company’s contract liabilities include services that are billed in advance and recorded as deferred revenue, as well as installation fees that are charged upfront without transfer of commensurate goods or services to the customer. The Company’s current contract liabilities are included in advanced billings and customer deposits and the Company’s non-current contract liabilities are included in other liabilities in its unaudited condensed consolidated balance sheets. Shentel's current contract liability balances were $9.5 million as of March 31, 2023 and December 31, 2022 and Shentel's non-current contract liability balances were $1.6 million and $1.9 million as of March 31, 2023 and December 31, 2022, respectively. Shentel expects its current contract liability balances to be recognized within revenues during the twelve-month periods following the respective balance sheet dates and its non-current contract liability balances to be recognized within revenues after the twelve-month periods following the respective balance sheet dates. Refer to Note 13, Segment Reporting , for a summary of the Company's revenue streams. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments [Abstract] | |
Investments | Investments Investments consist of the following: (in thousands) March 31, December 31, SERP investments at fair value $ 1,993 $ 1,889 Cost method investments 10,792 10,749 Equity method investments 333 333 Total investments $ 13,118 $ 12,971 SERP Investments at Fair Value: The fair value of the SERP investments are based on unadjusted quoted prices in active markets and are classified as Level 1 of the fair value hierarchy. Changes to the investments' fair value are presented in Other income (expense), while the reciprocal changes in the liability are presented in selling, general and administrative expense. Cost Method Investments : Our investment in CoBank’s Class A common stock, derived from the CoBank patronage program, represented substantially all of our cost method investments with a balance of $10.1 million and $10.0 million at March 31, 2023 and December 31, 2022, respectively. We recognized approximately $0.1 million of patronage income in other income (expense) for the three months ended March 31, 2023 and 2022. The Company expects that approximately 88% of the patronage distributions will be collected in cash and 12% in equity in 2023. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consist of the following: ($ in thousands) Estimated Useful Lives March 31, December 31, Land $ 3,722 $ 3,722 Land improvements 10 years 3,483 3,483 Buildings and structures 10 - 45 years 94,488 93,461 Cable and fiber 15 - 30 years 635,083 593,771 Equipment and software 4 - 8 years 324,783 317,347 Plant in service 1,061,559 1,011,784 Plant under construction 161,576 144,534 Total property, plant and equipment 1,223,135 1,156,318 Less: accumulated depreciation and amortization (483,548) (468,765) Property, plant and equipment, net $ 739,587 $ 687,553 Property, plant and equipment net, increases were primarily attributable to capital expenditures in the Broadband segment due to expansion of Glo Fiber assets and market expansion. The Company's accounts payable as of March 31, 2023 and December 31, 2022 included amounts associated with capital expenditures of approximately $44.3 million and $43.8 million, respectively. Depreciation and amortization expense was $15.7 million and $14.5 million during the three months ended March 31, 2023 and 2022, respectively. On August 23, 2022, the Company entered into a definitive asset purchase agreement (the "Spectrum Purchase Agreement") with a wireless carrier pursuant to which the Company agreed to sell certain Federal Communications Commission ("FCC") spectrum licenses and leases previously utilized in the Company's Beam branded fixed wireless service for total consideration of approximately $21.5 million, composed of $17.7 million cash and approximately $3.8 million of liabilities to be assumed by the wireless carrier (the "Spectrum Transaction"). The Spectrum Transaction is expected to close by the end of the third quarter of 2023, subject to the receipt of regulatory approvals and other customary closing conditions. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets consist of the following: March 31, 2023 December 31, 2022 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Goodwill - Broadband $ 3,244 $ — $ 3,244 $ 3,244 $ — $ 3,244 Indefinite-lived intangibles: Cable franchise rights 64,334 — 64,334 64,334 — 64,334 FCC Spectrum licenses 12,122 — 12,122 12,122 — 12,122 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 76,597 — 76,597 76,597 — 76,597 Finite-lived intangibles: Subscriber relationships 28,425 (27,025) 1,400 28,425 (26,910) 1,515 Other intangibles 488 (337) 151 488 (329) 159 Total finite-lived intangibles 28,913 (27,362) 1,551 28,913 (27,239) 1,674 Total goodwill and intangible assets $ 108,754 $ (27,362) $ 81,392 $ 108,754 $ (27,239) $ 81,515 Amortization expense was $0.1 million and $0.2 million for the three months ended March 31, 2023 and 2022, respectively. As described in Note 4, Property, Plant and Equipment , the Company entered into the Spectrum Purchase Agreement to sell FCC spectrum licenses associated with Beam. As a result of the expected sale, the Company concluded that the FCC spectrum licenses met the held for sale criteria; accordingly, $13.8 million of indefinite-lived licenses and $5.9 million of finite-lived licenses are presented as held for sale, along with the corresponding $3.8 million of operating lease liabilities related to the finite-lived licenses. The Company evaluated the events described here and in Note 4, Property, Plant and Equipment and determined that these events do not represent a strategic shift in the Company’s business. |
Other Assets and Accrued Liabil
Other Assets and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Assets and Accrued Liabilities | Other Assets and Accrued Liabilities Prepaid expenses and other, classified as current assets, included the following: (in thousands) March 31, December 31, Prepaid maintenance expenses $ 8,413 $ 7,444 Broadband contract acquisition costs 2,985 2,809 Other 1,364 1,256 Prepaid expenses and other $ 12,762 $ 11,509 Deferred charges and other assets, classified as long-term assets, included the following: (in thousands) March 31, December 31, Broadband contract acquisition costs $ 5,771 $ 5,837 Prepaid expenses and other 7,250 7,422 Deferred charges and other assets $ 13,021 $ 13,259 Accrued liabilities and other, classified as current liabilities, included the following: (in thousands) March 31, December 31, Accrued programming costs $ 3,625 $ 3,306 Pension plan 3,478 3,341 Other current liabilities 9,000 11,259 Accrued liabilities and other $ 16,103 $ 17,906 Other liabilities, classified as long-term liabilities, included the following: (in thousands) March 31, December 31, Noncurrent portion of deferred lease revenue $ 19,180 $ 18,679 Noncurrent portion of financing leases 1,413 1,500 Other 273 39 Other liabilities $ 20,866 $ 20,218 In 2021, the Company adopted a resolution to terminate its pension plan. The expected termination will result in a payout of all existing obligations either through lump sum payments or through the purchase of annuity contracts at the option of the pension plan's participants. The Company expects the pension plan termination to be completed by June 30, 2023. Consequently, the net benefit plan obligation for the pension plan is presented in accrued liabilities and other in the Company's unaudited condensed consolidated balance sheets at March 31, 2023 and December 31, 2022, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. The components of lease costs were as follows: Classification Three Months Ended (in thousands) 2023 2022 Finance lease cost Amortization of leased asset Depreciation $ 119 $ 119 Interest of lease liabilities Interest expense 20 21 Operating lease cost Operating expense 1 1,843 2,663 Lease Cost $ 1,982 $ 2,803 _________________________________________ (1) Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. The following table summarizes the expected maturity of lease liabilities as of March 31, 2023: (in thousands) Operating Leases Finance Leases Total 2023 $ 3,946 $ 71 $ 4,017 2024 5,613 178 5,791 2025 5,379 180 5,559 2026 4,770 153 4,923 2027 3,992 155 4,147 2028 and thereafter 65,522 1,359 66,881 Total lease payments 89,222 2,096 91,318 Less: Interest (34,647) (584) (35,231) Present value of lease liabilities $ 54,575 $ 1,512 $ 56,087 Other information related to operating and finance leases was as follows: March 31, December 31, Operating leases Weighted average remaining lease term (years) 19.4 20.0 Weighted average discount rate 4.6 % 4.5 % Finance leases Weighted average remaining lease term (years) 13.1 13.9 Weighted average discount rate 5.2 % 5.2 % Three Months Ended (in thousands) 2023 2022 Cash paid for operating lease liabilities $ 1,684 $ 1,592 Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases) 1,265 1,640 We recognized $4.5 million and $5.4 million of operating lease revenue for the three months ended March 31, 2023 and 2022, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the unaudited condensed consolidated statements of operations. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place as of March 31, 2023: (in thousands) Operating Leases 2023 $ 11,549 2024 14,244 2025 13,318 2026 10,275 2027 8,784 2028 and thereafter 22,048 Total $ 80,218 |
Leases | Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. The components of lease costs were as follows: Classification Three Months Ended (in thousands) 2023 2022 Finance lease cost Amortization of leased asset Depreciation $ 119 $ 119 Interest of lease liabilities Interest expense 20 21 Operating lease cost Operating expense 1 1,843 2,663 Lease Cost $ 1,982 $ 2,803 _________________________________________ (1) Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. The following table summarizes the expected maturity of lease liabilities as of March 31, 2023: (in thousands) Operating Leases Finance Leases Total 2023 $ 3,946 $ 71 $ 4,017 2024 5,613 178 5,791 2025 5,379 180 5,559 2026 4,770 153 4,923 2027 3,992 155 4,147 2028 and thereafter 65,522 1,359 66,881 Total lease payments 89,222 2,096 91,318 Less: Interest (34,647) (584) (35,231) Present value of lease liabilities $ 54,575 $ 1,512 $ 56,087 Other information related to operating and finance leases was as follows: March 31, December 31, Operating leases Weighted average remaining lease term (years) 19.4 20.0 Weighted average discount rate 4.6 % 4.5 % Finance leases Weighted average remaining lease term (years) 13.1 13.9 Weighted average discount rate 5.2 % 5.2 % Three Months Ended (in thousands) 2023 2022 Cash paid for operating lease liabilities $ 1,684 $ 1,592 Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases) 1,265 1,640 We recognized $4.5 million and $5.4 million of operating lease revenue for the three months ended March 31, 2023 and 2022, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the unaudited condensed consolidated statements of operations. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place as of March 31, 2023: (in thousands) Operating Leases 2023 $ 11,549 2024 14,244 2025 13,318 2026 10,275 2027 8,784 2028 and thereafter 22,048 Total $ 80,218 |
Leases | Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. The components of lease costs were as follows: Classification Three Months Ended (in thousands) 2023 2022 Finance lease cost Amortization of leased asset Depreciation $ 119 $ 119 Interest of lease liabilities Interest expense 20 21 Operating lease cost Operating expense 1 1,843 2,663 Lease Cost $ 1,982 $ 2,803 _________________________________________ (1) Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. The following table summarizes the expected maturity of lease liabilities as of March 31, 2023: (in thousands) Operating Leases Finance Leases Total 2023 $ 3,946 $ 71 $ 4,017 2024 5,613 178 5,791 2025 5,379 180 5,559 2026 4,770 153 4,923 2027 3,992 155 4,147 2028 and thereafter 65,522 1,359 66,881 Total lease payments 89,222 2,096 91,318 Less: Interest (34,647) (584) (35,231) Present value of lease liabilities $ 54,575 $ 1,512 $ 56,087 Other information related to operating and finance leases was as follows: March 31, December 31, Operating leases Weighted average remaining lease term (years) 19.4 20.0 Weighted average discount rate 4.6 % 4.5 % Finance leases Weighted average remaining lease term (years) 13.1 13.9 Weighted average discount rate 5.2 % 5.2 % Three Months Ended (in thousands) 2023 2022 Cash paid for operating lease liabilities $ 1,684 $ 1,592 Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases) 1,265 1,640 We recognized $4.5 million and $5.4 million of operating lease revenue for the three months ended March 31, 2023 and 2022, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the unaudited condensed consolidated statements of operations. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place as of March 31, 2023: (in thousands) Operating Leases 2023 $ 11,549 2024 14,244 2025 13,318 2026 10,275 2027 8,784 2028 and thereafter 22,048 Total $ 80,218 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our Credit Agreement, dated July 1, 2021 (the “Credit Agreement”) contains (i) a $100 million, five-year undrawn revolving credit facility (the “Revolver”), (ii) a $150 million five-year delayed draw amortizing term loan (“Term Loan A-1”) and (iii) a $150 million seven-year delayed draw amortizing term loan (“Term Loan A-2” and collectively with Term Loan A-1, the “Term Loans”). The following loans were outstanding under the Credit Agreement: (in thousands) March 31, December 31, Term loan A-1 $ 50,000 $ 37,500 Term loan A-2 50,000 37,500 Total debt 100,000 75,000 Less: unamortized loan fees (43) (46) Total debt, net of unamortized loan fees $ 99,957 $ 74,954 Both Term Loan A-1 and Term Loan A-2 bear interest at one-month LIBOR plus a margin of 1.50%. The margin of 1.50% is variable and determined by the Company’s net leverage ratio. The interest rate was 6.36% and 5.89% at March 31, 2023 and December 31, 2022, respectively. The Company's cash payments for interest were $1.3 million during the three months ended March 31, 2023. Shentel had no debt outstanding during the three months ended March 31, 2022; therefore, the Company made no interest payments during the three months ended March 31, 2022. Shentel is charged commitment fees on unutilized portions of its Revolver and Term Loans. The Company recorded $0.2 million related to these fees for the three months ended March 31, 2023 and 2022 which is included in other income (expense), net in the unaudited condensed consolidated statements of operations. The Credit Agreement contains a borrowing deadline of June 30, 2023, after which the Company will not be able to borrow against the undrawn portion of the Term Loans. The Credit Agreement includes various covenants, including total net leverage ratio and debt service coverage ratio financial covenants. Shentel’s Term Loans require quarterly payments based on a percentage of the outstanding balance. Based on the outstanding balance as of March 31, 2023, Term Loan A-1 requires quarterly principal repayments of $0.3 million from September 30, 2023 through June 30, 2024; then increasing to $0.6 million quarterly from September 30, 2024 through March 31, 2026, with the remaining balance due June 30, 2026. Based on the outstanding balance as of December 31, 2022, Term Loan A-2 requires quarterly principal repayments of $0.1 million through March 31, 2028, with the remaining balance due June 30, 2028. The following table summarizes the expected payments of Shentel's outstanding borrowings as of March 31, 2023: (in thousands) Amount 2023 $ 875 2024 2,375 2025 3,000 2026 45,500 2027 500 2028 47,750 Total $ 100,000 The Credit Agreement is fully secured by a pledge and unconditional guarantee from the Company and all of its subsidiaries, except Shenandoah Telephone Company. This provides the lenders a security interest in substantially all of the assets of the Company. The International Exchange (ICE) Benchmark Administration ceased the publication of one-week and two-month LIBOR on December 31, 2021 and the remaining tenors (overnight, one-month, three-month, six-month and 12-month) will cease to be published on June 30, 2023. The Company's term loans and revolver identify LIBOR as a reference rate for tenors ceasing on June 30, 2023 and maturing after 2023. Alternative reference rates that replace LIBOR may not yield the same or similar economic results over the terms of the financial instruments. The transition from LIBOR could result in us paying higher or lower interest rates on our current LIBOR-indexed term loans. The Credit Agreement includes provisions that provide for the identification of a LIBOR replacement rate. Any changes to the reference rate will be agreed through an amendment to the Credit Agreement and are expected to reference the Secured Overnight Financing Rate and be entered into during 2023. Additionally, we expect to utilize the accounting relief available under Accounting Standards Codification ("ASC") 848, Reference Rate Reform, and therefore do not expect significant modification to current accounting. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files U.S. federal income tax returns and various state income tax returns. The Company is not subject to any state or federal income tax audits as of March 31, 2023. The Company's income tax returns are generally open to examination from 2019 forward and the net operating losses acquired in the acquisition of nTelos are open to examination from 2002 forward. The effective tax rates for the three months ended March 31, 2023 and 2022, differ from the statutory U.S. federal income tax rate of 21% primarily due to the state income taxes, excess tax benefits and other discrete items. Three Months Ended (in thousands) 2023 2022 Expected tax expense (benefit) at federal statutory $ 807 $ (115) State income tax expense (benefit), net of federal tax effect 210 (32) Excess tax deficiency from share-based compensation and other expense, net 762 200 Income tax expense $ 1,779 $ 53 The Company received $25.0 million in cash refunds for income taxes for the three months ended March 31, 2023. The Company made no cash payments and received no cash refunds for income taxes for the three months ended March 31, 2022. |
Stock Compensation and Earnings
Stock Compensation and Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation and Earnings (Loss) per Share | Stock Compensation and Earnings (Loss) per Share The Company granted approximately 343,000 restricted stock units ("RSUs") at a weighted average grant price of $18.86 to employees and directors during the three months ended March 31, 2023. Approximately 166,000 RSUs with a weighted average grant price of $25.29 vested and 8,000 RSUs with a weighted average grant price of $21.54 were forfeited during the three months ended March 31, 2023. The total fair value of RSUs vested was $4.2 million during the three months ended March 31, 2023. Approximately 819,000 RSUs with a weighted average grant price of $21.30 remained outstanding as of March 31, 2023. The Company granted approximately 134,000 Relative Total Shareholder Return RSUs (“RTSRs”) awards at a weighted average grant price of $23.64 to employees during the three months ended March 31, 2023. Approximately 30,000 RTSRs with a weighted average grant price of $56.32 vested and no RTSRs were forfeited during the three months ended March 31, 2023. The total fair value of RTSRs vested was $1.1 million during the three months ended March 31, 2023. Approximately 293,000 RTSRs with a weighted average grant price of $25.80 remained outstanding as of March 31, 2023. The amount of RTSRs issued are adjusted on the vesting date based upon the Company's stock performance compared to a group of peer companies. The vested amounts above exclude the adjustment and issuance of RTSRs based on actual performance, which totaled approximately 13,000 RTSRs, resulting in lower shares issued upon vesting of the RTSRs than originally granted. Stock-based compensation expense was as follows: Three Months Ended (in thousands) 2023 2022 Stock compensation expense 3,852 3,252 Capitalized stock compensation (135) (109) Stock compensation expense, net $ 3,717 $ 3,143 As of March 31, 2023, there was $15.2 million of total unrecognized compensation cost related to non-vested incentive awards which is expected to be recognized over weighted average period of 2.8 years. We utilize the treasury stock method to calculate the impact on diluted earnings (loss) per share that potentially dilutive stock-based compensation awards have. The following table indicates the computation of basic and diluted earnings (loss) per share: Three Months Ended (in thousands, except per share amounts) 2023 2022 Calculation of net income (loss) per share: Net income (loss) $ 2,066 $ (603) Basic weighted average shares outstanding 50,291 50,146 Basic net income (loss) per share $ 0.04 $ (0.01) Effect of stock-based compensation awards outstanding: Basic weighted average shares outstanding 50,291 50,146 Effect from dilutive shares and options outstanding 221 — Diluted weighted average shares outstanding 50,512 50,146 Diluted net income (loss) per share $ 0.04 $ (0.01) There were approximately 478,000 anti-dilutive equity awards outstanding during the three months ended March 31, 2023. There were approximately 147,000 potentially dilutive equity awards for the three months ended March 31, 2022; however, these securities were excluded from the calculation of diluted weighted average shares outstanding due to the fact that they were anti-dilutive as a result of the Company's net loss for the period. |
Government Grants
Government Grants | 3 Months Ended |
Mar. 31, 2023 | |
Government Grants [Abstract] | |
Government Grants | Government GrantsDuring the first quarter of 2023, Shentel received an additional $9.8 million in newly awarded grants to strategically expand the Company's broadband network in order to provide broadband services to unserved residences. The additional grants consisted of $9.4 million awarded under the Connect Maryland Network Infrastructure Grant Program in Maryland, and $0.4 million under the Line Extension Advancement and Development program in West Virginia. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are committed to make payments to satisfy our lease liabilities. The scheduled payments under those obligations are summarized in Note 7, Leases . We also have outstanding unconditional purchase commitments to procure marketing services and IT software licenses through 2026. From time to time the Company is involved in various litigation matters arising out of the normal course of business. The Company consults with legal counsel on those issues related to litigation and seeks input from other experts and advisors with |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Shentel has presented Residential & SMB - Cable Markets and Residential & SMB - Glo Fiber Markets separately for the three months ended March 31, 2023. These revenues were previously reported in one line under the description “Residential & SMB”. Shentel has amended the presentation for the three months ended March 31, 2022 for comparability. Three Months Ended March 31, 2023: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB - Cable Markets $ 44,756 $ — $ — $ 44,756 Residential & SMB - Glo Fiber Markets 7,003 — — 7,003 Commercial Fiber 11,698 — — 11,698 Tower lease — 4,538 — 4,538 RLEC & Other 3,691 — — 3,691 Service revenue and other 67,148 4,538 — 71,686 Intercompany revenue and other 55 38 (93) — Total revenue 67,203 4,576 (93) 71,686 Operating expenses Cost of services 25,429 1,192 (54) 26,567 Selling, general and administrative 15,571 450 10,588 26,609 Depreciation and amortization 14,867 513 402 15,782 Total operating expenses 55,867 2,155 10,936 68,958 Operating income (loss) $ 11,336 $ 2,421 $ (11,029) $ 2,728 Three Months Ended March 31, 2022: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB - Cable Markets $ 43,492 $ — $ — $ 43,492 Residential & SMB - Glo Fiber Markets 3,421 — — 3,421 Commercial Fiber 9,062 — — 9,062 Tower lease — 4,746 — 4,746 RLEC & Other 3,689 — — 3,689 Service revenue and other 59,664 4,746 — 64,410 Intercompany revenue and other 50 101 (147) 4 Total revenue 59,714 4,847 (147) 64,414 Operating expenses Cost of services 25,168 1,292 (121) 26,339 Selling, general and administrative 13,489 318 9,964 23,771 Depreciation and amortization 12,876 484 1,324 14,684 Total operating expenses 51,533 2,094 11,167 64,794 Operating income (loss) $ 8,181 $ 2,753 $ (11,314) $ (380) A reconciliation of the total of the reportable segments’ operating income (loss) to unaudited condensed consolidated income (loss) before income taxes is as follows: Three Months Ended (in thousands) 2023 2022 Total consolidated operating income (loss) $ 2,728 $ (380) Other income (expense), net 1,117 (170) Income (loss) before income taxes $ 3,845 $ (550) The Company’s chief operating decision maker (CODM) does not currently review total assets by segment since the assets are centrally managed and some of the assets are shared by the segments. Accordingly, total assets by segment are not provided. |
Basis of Presentation and Oth_2
Basis of Presentation and Other Information (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of New Accounting Principles | Adoption of New Accounting Standards There have been no material developments related to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company's unaudited condensed consolidated financial statements and note disclosures from those disclosed in the Company's Annual Report on Form 10-K for its fiscal year ended December 31, 2022, that would be expected to impact the Company. |
Investment | SERP Investments at Fair Value: The fair value of the SERP investments are based on unadjusted quoted prices in active markets and are classified as Level 1 of the fair value hierarchy. Changes to the investments' fair value are presented in Other income (expense), while the reciprocal changes in the liability are presented in selling, general and administrative expense. Cost Method Investments : Our investment in CoBank’s Class A common stock, derived from the CoBank patronage program, represented substantially all of our cost method investments with a balance of $10.1 million and $10.0 million at March 31, 2023 and December 31, 2022, respectively. We recognized approximately $0.1 million of patronage income in other income (expense) for the three months ended March 31, 2023 and 2022. The Company expects that approximately 88% of the patronage distributions will be collected in cash and 12% in equity in 2023. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Amortized and Capitalized Contract Cost | The following tables present the activity of current and non-current contract assets: Three Months Ended (in thousands) 2023 2022 Beginning Balance $ 8,646 $ 8,147 Commission payments 891 338 Contract asset amortization (781) (182) Ending Balance $ 8,756 $ 8,303 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments [Abstract] | |
Schedule of Other Investments | Investments consist of the following: (in thousands) March 31, December 31, SERP investments at fair value $ 1,993 $ 1,889 Cost method investments 10,792 10,749 Equity method investments 333 333 Total investments $ 13,118 $ 12,971 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following: ($ in thousands) Estimated Useful Lives March 31, December 31, Land $ 3,722 $ 3,722 Land improvements 10 years 3,483 3,483 Buildings and structures 10 - 45 years 94,488 93,461 Cable and fiber 15 - 30 years 635,083 593,771 Equipment and software 4 - 8 years 324,783 317,347 Plant in service 1,061,559 1,011,784 Plant under construction 161,576 144,534 Total property, plant and equipment 1,223,135 1,156,318 Less: accumulated depreciation and amortization (483,548) (468,765) Property, plant and equipment, net $ 739,587 $ 687,553 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Resulting from Acquisition | Goodwill and intangible assets consist of the following: March 31, 2023 December 31, 2022 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Goodwill - Broadband $ 3,244 $ — $ 3,244 $ 3,244 $ — $ 3,244 Indefinite-lived intangibles: Cable franchise rights 64,334 — 64,334 64,334 — 64,334 FCC Spectrum licenses 12,122 — 12,122 12,122 — 12,122 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 76,597 — 76,597 76,597 — 76,597 Finite-lived intangibles: Subscriber relationships 28,425 (27,025) 1,400 28,425 (26,910) 1,515 Other intangibles 488 (337) 151 488 (329) 159 Total finite-lived intangibles 28,913 (27,362) 1,551 28,913 (27,239) 1,674 Total goodwill and intangible assets $ 108,754 $ (27,362) $ 81,392 $ 108,754 $ (27,239) $ 81,515 |
Schedule of Finite-Lived Intangible Assets | Goodwill and intangible assets consist of the following: March 31, 2023 December 31, 2022 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Goodwill - Broadband $ 3,244 $ — $ 3,244 $ 3,244 $ — $ 3,244 Indefinite-lived intangibles: Cable franchise rights 64,334 — 64,334 64,334 — 64,334 FCC Spectrum licenses 12,122 — 12,122 12,122 — 12,122 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 76,597 — 76,597 76,597 — 76,597 Finite-lived intangibles: Subscriber relationships 28,425 (27,025) 1,400 28,425 (26,910) 1,515 Other intangibles 488 (337) 151 488 (329) 159 Total finite-lived intangibles 28,913 (27,362) 1,551 28,913 (27,239) 1,674 Total goodwill and intangible assets $ 108,754 $ (27,362) $ 81,392 $ 108,754 $ (27,239) $ 81,515 |
Other Assets and Accrued Liab_2
Other Assets and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Assets | Prepaid expenses and other, classified as current assets, included the following: (in thousands) March 31, December 31, Prepaid maintenance expenses $ 8,413 $ 7,444 Broadband contract acquisition costs 2,985 2,809 Other 1,364 1,256 Prepaid expenses and other $ 12,762 $ 11,509 |
Schedule of Other Assets, Noncurrent | Deferred charges and other assets, classified as long-term assets, included the following: (in thousands) March 31, December 31, Broadband contract acquisition costs $ 5,771 $ 5,837 Prepaid expenses and other 7,250 7,422 Deferred charges and other assets $ 13,021 $ 13,259 |
Summary of Accrued Liabilities and Other | Accrued liabilities and other, classified as current liabilities, included the following: (in thousands) March 31, December 31, Accrued programming costs $ 3,625 $ 3,306 Pension plan 3,478 3,341 Other current liabilities 9,000 11,259 Accrued liabilities and other $ 16,103 $ 17,906 |
Schedule of Other Noncurrent Liabilities | Other liabilities, classified as long-term liabilities, included the following: (in thousands) March 31, December 31, Noncurrent portion of deferred lease revenue $ 19,180 $ 18,679 Noncurrent portion of financing leases 1,413 1,500 Other 273 39 Other liabilities $ 20,866 $ 20,218 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Components of Lease Costs | The components of lease costs were as follows: Classification Three Months Ended (in thousands) 2023 2022 Finance lease cost Amortization of leased asset Depreciation $ 119 $ 119 Interest of lease liabilities Interest expense 20 21 Operating lease cost Operating expense 1 1,843 2,663 Lease Cost $ 1,982 $ 2,803 _________________________________________ (1) Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. Other information related to operating and finance leases was as follows: March 31, December 31, Operating leases Weighted average remaining lease term (years) 19.4 20.0 Weighted average discount rate 4.6 % 4.5 % Finance leases Weighted average remaining lease term (years) 13.1 13.9 Weighted average discount rate 5.2 % 5.2 % Three Months Ended (in thousands) 2023 2022 Cash paid for operating lease liabilities $ 1,684 $ 1,592 Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases) 1,265 1,640 |
Schedule of Expected Maturity of Lease Liabilities, Operating | The following table summarizes the expected maturity of lease liabilities as of March 31, 2023: (in thousands) Operating Leases Finance Leases Total 2023 $ 3,946 $ 71 $ 4,017 2024 5,613 178 5,791 2025 5,379 180 5,559 2026 4,770 153 4,923 2027 3,992 155 4,147 2028 and thereafter 65,522 1,359 66,881 Total lease payments 89,222 2,096 91,318 Less: Interest (34,647) (584) (35,231) Present value of lease liabilities $ 54,575 $ 1,512 $ 56,087 |
Schedule of Expected Maturity of Lease Liabilities, Financing | The following table summarizes the expected maturity of lease liabilities as of March 31, 2023: (in thousands) Operating Leases Finance Leases Total 2023 $ 3,946 $ 71 $ 4,017 2024 5,613 178 5,791 2025 5,379 180 5,559 2026 4,770 153 4,923 2027 3,992 155 4,147 2028 and thereafter 65,522 1,359 66,881 Total lease payments 89,222 2,096 91,318 Less: Interest (34,647) (584) (35,231) Present value of lease liabilities $ 54,575 $ 1,512 $ 56,087 |
Schedule of Minimum Rental Receipts Under Lease Agreement Lessor, Operating Leases | Below is a summary of our minimum rental receipts under the lease agreements in place as of March 31, 2023: (in thousands) Operating Leases 2023 $ 11,549 2024 14,244 2025 13,318 2026 10,275 2027 8,784 2028 and thereafter 22,048 Total $ 80,218 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The following loans were outstanding under the Credit Agreement: (in thousands) March 31, December 31, Term loan A-1 $ 50,000 $ 37,500 Term loan A-2 50,000 37,500 Total debt 100,000 75,000 Less: unamortized loan fees (43) (46) Total debt, net of unamortized loan fees $ 99,957 $ 74,954 |
Maturities of Long-term Debt | The following table summarizes the expected payments of Shentel's outstanding borrowings as of March 31, 2023: (in thousands) Amount 2023 $ 875 2024 2,375 2025 3,000 2026 45,500 2027 500 2028 47,750 Total $ 100,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Income Taxes | The effective tax rates for the three months ended March 31, 2023 and 2022, differ from the statutory U.S. federal income tax rate of 21% primarily due to the state income taxes, excess tax benefits and other discrete items. Three Months Ended (in thousands) 2023 2022 Expected tax expense (benefit) at federal statutory $ 807 $ (115) State income tax expense (benefit), net of federal tax effect 210 (32) Excess tax deficiency from share-based compensation and other expense, net 762 200 Income tax expense $ 1,779 $ 53 |
Stock Compensation and Earnin_2
Stock Compensation and Earnings (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock compensation expense | Stock-based compensation expense was as follows: Three Months Ended (in thousands) 2023 2022 Stock compensation expense 3,852 3,252 Capitalized stock compensation (135) (109) Stock compensation expense, net $ 3,717 $ 3,143 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table indicates the computation of basic and diluted earnings (loss) per share: Three Months Ended (in thousands, except per share amounts) 2023 2022 Calculation of net income (loss) per share: Net income (loss) $ 2,066 $ (603) Basic weighted average shares outstanding 50,291 50,146 Basic net income (loss) per share $ 0.04 $ (0.01) Effect of stock-based compensation awards outstanding: Basic weighted average shares outstanding 50,291 50,146 Effect from dilutive shares and options outstanding 221 — Diluted weighted average shares outstanding 50,512 50,146 Diluted net income (loss) per share $ 0.04 $ (0.01) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Data for Segments | Three Months Ended March 31, 2023: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB - Cable Markets $ 44,756 $ — $ — $ 44,756 Residential & SMB - Glo Fiber Markets 7,003 — — 7,003 Commercial Fiber 11,698 — — 11,698 Tower lease — 4,538 — 4,538 RLEC & Other 3,691 — — 3,691 Service revenue and other 67,148 4,538 — 71,686 Intercompany revenue and other 55 38 (93) — Total revenue 67,203 4,576 (93) 71,686 Operating expenses Cost of services 25,429 1,192 (54) 26,567 Selling, general and administrative 15,571 450 10,588 26,609 Depreciation and amortization 14,867 513 402 15,782 Total operating expenses 55,867 2,155 10,936 68,958 Operating income (loss) $ 11,336 $ 2,421 $ (11,029) $ 2,728 Three Months Ended March 31, 2022: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB - Cable Markets $ 43,492 $ — $ — $ 43,492 Residential & SMB - Glo Fiber Markets 3,421 — — 3,421 Commercial Fiber 9,062 — — 9,062 Tower lease — 4,746 — 4,746 RLEC & Other 3,689 — — 3,689 Service revenue and other 59,664 4,746 — 64,410 Intercompany revenue and other 50 101 (147) 4 Total revenue 59,714 4,847 (147) 64,414 Operating expenses Cost of services 25,168 1,292 (121) 26,339 Selling, general and administrative 13,489 318 9,964 23,771 Depreciation and amortization 12,876 484 1,324 14,684 Total operating expenses 51,533 2,094 11,167 64,794 Operating income (loss) $ 8,181 $ 2,753 $ (11,314) $ (380) |
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of the total of the reportable segments’ operating income (loss) to unaudited condensed consolidated income (loss) before income taxes is as follows: Three Months Ended (in thousands) 2023 2022 Total consolidated operating income (loss) $ 2,728 $ (380) Other income (expense), net 1,117 (170) Income (loss) before income taxes $ 3,845 $ (550) |
Basis of Presentation and Oth_3
Basis of Presentation and Other Information (Details) | 3 Months Ended |
Mar. 31, 2023 cell_site | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of cell towers built | 222 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Weighted-average customer benefit period | 6 years | |
Advanced billings and customer deposits | $ 12,391 | $ 12,425 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Amortized and Capitalized Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Capitalized Contract Cost [Roll Forward] | ||
Beginning Balance | $ 8,646 | $ 8,147 |
Commission payments | 891 | 338 |
Contract asset amortization | (781) | (182) |
Ending Balance | $ 8,756 | $ 8,303 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Future Performance Obligation (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligations | $ 9.5 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligations | $ 9.5 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligations | $ 1.9 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligations | $ 1.6 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation period | 1 year |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investments [Abstract] | ||
SERP investments at fair value | $ 1,993 | $ 1,889 |
Cost method investments | 10,792 | 10,749 |
Equity method investments | 333 | 333 |
Total investments | $ 13,118 | $ 12,971 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Apr. 26, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
SERP investments at fair value | $ 1,993,000 | $ 1,889,000 | ||
CoBank | ||||
Schedule of Equity Method Investments [Line Items] | ||||
SERP investments at fair value | 10,100,000 | $ 10,000,000 | ||
Other nonoperating income (expense) | $ 100,000 | $ 100,000 | ||
Percentage of patronage credit paid in cash | 88% | |||
Percentage of patronage credit paid in share | 12% | |||
Valley Network Partnership | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest, percentage | 20% | 20% | ||
Valley Network Partnership | Subsequent Event | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Distribution of capital | $ 100,000 | |||
Equity Method Investee | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue from related parties | 200,000 | |||
Related party costs | $ 28,200 |
Property, Plant and Equipment -
Property, Plant and Equipment - Table (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 1,223,135 | $ 1,156,318 |
Less: accumulated depreciation and amortization | (483,548) | (468,765) |
Property, plant and equipment, net | 739,587 | 687,553 |
Land | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 3,722 | 3,722 |
Land improvements | ||
Property, plant and equipment [Abstract] | ||
Estimated Useful Lives | 10 years | |
Total property, plant and equipment | $ 3,483 | 3,483 |
Buildings and structures | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 94,488 | 93,461 |
Buildings and structures | Minimum | ||
Property, plant and equipment [Abstract] | ||
Estimated Useful Lives | 10 years | |
Buildings and structures | Maximum | ||
Property, plant and equipment [Abstract] | ||
Estimated Useful Lives | 45 years | |
Cable and fiber | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 635,083 | 593,771 |
Cable and fiber | Minimum | ||
Property, plant and equipment [Abstract] | ||
Estimated Useful Lives | 15 years | |
Cable and fiber | Maximum | ||
Property, plant and equipment [Abstract] | ||
Estimated Useful Lives | 30 years | |
Equipment and software | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 324,783 | 317,347 |
Equipment and software | Minimum | ||
Property, plant and equipment [Abstract] | ||
Estimated Useful Lives | 4 years | |
Equipment and software | Maximum | ||
Property, plant and equipment [Abstract] | ||
Estimated Useful Lives | 8 years | |
Plant in service | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 1,061,559 | 1,011,784 |
Plant under construction | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 161,576 | $ 144,534 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 23, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||||
Accounts payable | $ 48,822 | $ 49,173 | ||
Depreciation and amortization | 15,700 | $ 14,500 | ||
Goodwill - Broadband | ||||
Property, Plant and Equipment [Line Items] | ||||
Accounts payable | $ 44,300 | $ 43,800 | ||
Asset Purchase Agreement | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset acquisition, consideration transferred | $ 21,500 | |||
Payments to acquire productive assets | 17,700 | |||
Asset acquisition, consideration transferred, liabilities incurred | $ 3,800 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | $ 76,597 | $ 76,597 |
Gross carrying amount | 28,913 | 28,913 |
Accumulated amortization and other | (27,362) | (27,239) |
Total | 1,551 | 1,674 |
Total intangible assets, gross carrying amount | 108,754 | 108,754 |
Intangible assets, net | 81,392 | 81,515 |
Subscriber relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 28,425 | 28,425 |
Accumulated amortization and other | (27,025) | (26,910) |
Total | 1,400 | 1,515 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 488 | 488 |
Accumulated amortization and other | (337) | (329) |
Total | 151 | 159 |
Cable franchise rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | 64,334 | 64,334 |
FCC Spectrum licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | 12,122 | 12,122 |
Railroad crossing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | 141 | 141 |
Goodwill - Broadband | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, gross | 3,244 | 3,244 |
Goodwill | $ 3,244 | $ 3,244 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 0.1 | $ 0.2 | |
Spectrum Purchase Agreements | Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived license | $ 13.8 | ||
Finite-lived license | 5.9 | ||
Operating lease liabilities | $ 3.8 |
Other Assets and Accrued Liab_3
Other Assets and Accrued Liabilities - Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Prepaid maintenance expenses | $ 8,413 | $ 7,444 |
Broadband contract acquisition costs | 2,985 | 2,809 |
Other | 1,364 | 1,256 |
Prepaid expenses and other | $ 12,762 | $ 11,509 |
Other Assets and Accrued Liab_4
Other Assets and Accrued Liabilities - Long-Term Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Broadband contract acquisition costs | $ 5,771 | $ 5,837 |
Prepaid expenses and other | 7,250 | 7,422 |
Deferred charges and other assets | $ 13,021 | $ 13,259 |
Other Assets and Accrued Liab_5
Other Assets and Accrued Liabilities - Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Accrued programming costs | $ 3,625 | $ 3,306 |
Pension plan | 3,478 | 3,341 |
Other current liabilities | 9,000 | 11,259 |
Accrued liabilities and other | $ 16,103 | $ 17,906 |
Other Assets and Accrued Liab_6
Other Assets and Accrued Liabilities - Long Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Noncurrent portion of deferred lease revenue | $ 19,180 | $ 18,679 |
Noncurrent portion of financing leases | 1,413 | 1,500 |
Other | 273 | 39 |
Other liabilities | $ 20,866 | $ 20,218 |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Amortization of leased asset | $ 119 | $ 119 |
Interest of lease liabilities | 20 | 21 |
Operating lease cost | 1,843 | 2,663 |
Lease Cost | $ 1,982 | $ 2,803 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liability - Lessee (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Operating Leases | |
2023 | $ 3,946 |
2024 | 5,613 |
2025 | 5,379 |
2026 | 4,770 |
2027 | 3,992 |
2028 and thereafter | 65,522 |
Total lease payments | 89,222 |
Less: Interest | (34,647) |
Present value of lease liabilities | 54,575 |
Finance Leases | |
2023 | 71 |
2024 | 178 |
2025 | 180 |
2026 | 153 |
2027 | 155 |
2028 and thereafter | 1,359 |
Total lease payments | 2,096 |
Less: Interest | (584) |
Present value of lease liabilities | 1,512 |
Total | |
2023 | 4,017 |
2024 | 5,791 |
2025 | 5,559 |
2026 | 4,923 |
2027 | 4,147 |
2028 and thereafter | 66,881 |
Total lease payments | 91,318 |
Less: Interest | (35,231) |
Present value of lease liabilities | $ 56,087 |
Leases - Other Information Rela
Leases - Other Information Related to Operating and Finance Leases (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term | 19 years 4 months 24 days | 20 years |
Operating lease, weighted average discount rate, percent | 4.60% | 4.50% |
Finance lease, weighted average remaining lease term | 13 years 1 month 6 days | 13 years 10 months 24 days |
Finance lease, weighted average discount rate, percent | 5.20% | 5.20% |
Leases - Operating Lease (Detai
Leases - Operating Lease (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 1,684 | $ 1,592 |
Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases) | $ 1,265 | $ 1,640 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Sublease income | $ 4.5 | $ 5.4 |
Leases - Maturity of Lease Li_2
Leases - Maturity of Lease Liability - Lessor (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 11,549 |
2024 | 14,244 |
2025 | 13,318 |
2026 | 10,275 |
2027 | 8,784 |
2028 and thereafter | 22,048 |
Total | $ 80,218 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 18 Months Ended | |||
Jul. 01, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2024 | Mar. 31, 2028 | Dec. 31, 2022 | Mar. 31, 2026 | |
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 6.36% | 5.89% | |||||
Interest paid | $ 1,327,000 | $ 0 | |||||
Line of credit facility, commitment fee amount | 200,000 | $ 200,000 | |||||
Total debt | 100,000,000 | $ 75,000,000 | |||||
Term loan A-1 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 150,000,000 | ||||||
Term of credit facility | 5 years | ||||||
Total debt | $ 50,000,000 | 37,500,000 | |||||
Term loan A-1 | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Quarterly principal payment period one | $ 300,000 | $ 600,000 | |||||
Term loan A-1 | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.50% | ||||||
Term loan A-2 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 150,000,000 | ||||||
Term of credit facility | 7 years | ||||||
Total debt | $ 50,000,000 | $ 37,500,000 | |||||
Term loan A-2 | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Quarterly principal payment period one | $ 100,000 | ||||||
Term loan A-2 | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.50% | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||
Term of credit facility | 5 years |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 100,000 | $ 75,000 |
Less: unamortized loan fees | (43) | (46) |
Total debt, net of unamortized loan fees | 99,957 | 74,954 |
Term loan A-1 | ||
Debt Instrument [Line Items] | ||
Total debt | 50,000 | 37,500 |
Term loan A-2 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 50,000 | $ 37,500 |
Debt - Maturities of Long-term
Debt - Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Maturities of Long-term Debt [Abstract] | ||
2023 | $ 875 | |
2024 | 2,375 | |
2025 | 3,000 | |
2026 | 45,500 | |
2027 | 500 | |
2028 | 47,750 | |
Total | $ 100,000 | $ 75,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Expected tax expense (benefit) at federal statutory | $ 807 | $ (115) |
State income tax expense (benefit), net of federal tax effect | 210 | (32) |
Excess tax deficiency from share-based compensation and other expense, net | 762 | 200 |
Income tax expense | $ 1,779 | $ 53 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax refunds received | $ 25,030 | $ 0 |
Income tax refunds received | $ 0 |
Stock Compensation and Earnin_3
Stock Compensation and Earnings (Loss) per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Anti-dilutive awards outstanding (fewer than)(in shares) | 478,000 | 147,000 |
Compensation, nonvested awards, compensation cost not yet recognized | $ 15.2 | |
Compensation, nonvested awards, cost not yet recognized, period for recognition | 2 years 9 months 18 days | |
Relative Total Shareholder Return Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 134,000 | |
Granted (in dollars per share) | $ 23.64 | |
Vested in period (in shares) | 30,000 | |
Vested (in usd per share) | $ 56.32 | |
Fair value of awards vested in period | $ 1.1 | |
Options outstanding (in shares) | 293,000 | |
Outstanding (in usd per share) | $ 25.80 | |
Anti-dilutive awards outstanding (fewer than)(in shares) | 13,000 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 343,000 | |
Granted (in dollars per share) | $ 18.86 | |
Vested in period (in shares) | 166,000 | |
Vested (in usd per share) | $ 25.29 | |
Fair value of awards vested in period | $ 4.2 | |
Cancelled (in shares) | 8,000 | |
Cancelled (in usd per share) | $ 21.54 | |
Options outstanding (in shares) | 819,000 | |
Outstanding (in usd per share) | $ 21.30 |
Stock Compensation and Earnin_4
Stock Compensation and Earnings (Loss) per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Net income (loss) | $ 2,066 | $ (603) |
Basic weighted average shares outstanding (in shares) | 50,291 | 50,146 |
Basic net income (loss)per share (in dollars per share) | $ 0.04 | $ (0.01) |
Effect from dilutive shares and options outstanding (in shares) | 221 | 0 |
Diluted weighted average shares outstanding (in shares) | 50,512 | 50,146 |
Diluted net income (loss) per share (in dollars per share) | $ 0.04 | $ (0.01) |
Stock Compensation and Earnin_5
Stock Compensation and Earnings (Loss) per Share - Schedule of Stock Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock compensation expense | $ 3,852 | $ 3,252 |
Capitalized stock compensation | (135) | (109) |
Stock compensation expense, net | $ 3,717 | $ 3,143 |
Government Grants (Details)
Government Grants (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Other Income [Line Items] | |
Increase (decrease) in grants receivable | $ 9,800 |
Maryland | |
Other Income [Line Items] | |
Increase (decrease) in grants receivable | 9,400 |
West Virginia | |
Other Income [Line Items] | |
Increase (decrease) in grants receivable | $ 400 |
Segment Reporting - Selected Fi
Segment Reporting - Selected Financial Data for Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
External revenue | ||
Service revenue and other | $ 71,686 | $ 64,414 |
Operating expenses | ||
Cost of services | 26,567 | 26,339 |
Selling, general and administrative | 26,609 | 23,771 |
Depreciation and amortization | 15,782 | 14,684 |
Operating income (loss) | 2,728 | (380) |
Operating Segments | ||
Operating expenses | ||
Selling, general and administrative | 26,609 | 23,771 |
Depreciation and amortization | 15,782 | 14,684 |
Total operating expenses | 68,958 | 64,794 |
Operating income (loss) | 2,728 | (380) |
Operating Segments | Broadband | ||
External revenue | ||
Service revenue and other | 67,203 | 59,714 |
Operating expenses | ||
Selling, general and administrative | 15,571 | 13,489 |
Depreciation and amortization | 14,867 | 12,876 |
Total operating expenses | 55,867 | 51,533 |
Operating income (loss) | 11,336 | 8,181 |
Operating Segments | Tower | ||
External revenue | ||
Service revenue and other | 4,576 | 4,847 |
Operating expenses | ||
Selling, general and administrative | 450 | 318 |
Depreciation and amortization | 513 | 484 |
Total operating expenses | 2,155 | 2,094 |
Operating income (loss) | 2,421 | 2,753 |
Intersegment Eliminations | ||
External revenue | ||
Service revenue and other | 0 | 4 |
Intersegment Eliminations | Broadband | ||
External revenue | ||
Service revenue and other | 55 | 50 |
Intersegment Eliminations | Tower | ||
External revenue | ||
Service revenue and other | 38 | 101 |
Intersegment Eliminations | Corporate & Eliminations | ||
External revenue | ||
Service revenue and other | (93) | (147) |
Corporate, Non-Segment | ||
Operating expenses | ||
Selling, general and administrative | 10,588 | 9,964 |
Depreciation and amortization | 402 | 1,324 |
Total operating expenses | 10,936 | 11,167 |
Operating income (loss) | (11,029) | (11,314) |
Residential & SMB - Cable Markets | Operating Segments | ||
External revenue | ||
Service revenue and other | 44,756 | 43,492 |
Residential & SMB - Cable Markets | Operating Segments | Broadband | ||
External revenue | ||
Service revenue and other | 44,756 | 43,492 |
Residential & SMB - Cable Markets | Operating Segments | Tower | ||
External revenue | ||
Service revenue and other | 0 | 0 |
Residential & SMB - Glo Fiber Markets | Operating Segments | ||
External revenue | ||
Service revenue and other | 7,003 | 3,421 |
Residential & SMB - Glo Fiber Markets | Operating Segments | Broadband | ||
External revenue | ||
Service revenue and other | 7,003 | 3,421 |
Residential & SMB - Glo Fiber Markets | Operating Segments | Tower | ||
External revenue | ||
Service revenue and other | 0 | 0 |
Commercial Fiber | Operating Segments | ||
External revenue | ||
Service revenue and other | 11,698 | 9,062 |
Commercial Fiber | Operating Segments | Broadband | ||
External revenue | ||
Service revenue and other | 11,698 | 9,062 |
Commercial Fiber | Operating Segments | Tower | ||
External revenue | ||
Service revenue and other | 0 | 0 |
Tower lease | Operating Segments | ||
External revenue | ||
Service revenue and other | 4,538 | 4,746 |
Tower lease | Operating Segments | Broadband | ||
External revenue | ||
Service revenue and other | 0 | 0 |
Tower lease | Operating Segments | Tower | ||
External revenue | ||
Service revenue and other | 4,538 | 4,746 |
RLEC & Other | Operating Segments | ||
External revenue | ||
Service revenue and other | 3,691 | 3,689 |
RLEC & Other | Operating Segments | Broadband | ||
External revenue | ||
Service revenue and other | 3,691 | 3,689 |
RLEC & Other | Operating Segments | Tower | ||
External revenue | ||
Service revenue and other | 0 | 0 |
Service revenue and other | Operating Segments | ||
External revenue | ||
Service revenue and other | 71,686 | 64,410 |
Service revenue and other | Operating Segments | Broadband | ||
External revenue | ||
Service revenue and other | 67,148 | 59,664 |
Service revenue and other | Operating Segments | Tower | ||
External revenue | ||
Service revenue and other | 4,538 | 4,746 |
Cost of services | Operating Segments | ||
Operating expenses | ||
Cost of services | 26,567 | 26,339 |
Cost of services | Operating Segments | Broadband | ||
Operating expenses | ||
Cost of services | 25,429 | 25,168 |
Cost of services | Operating Segments | Tower | ||
Operating expenses | ||
Cost of services | 1,192 | 1,292 |
Cost of services | Corporate, Non-Segment | ||
Operating expenses | ||
Cost of services | $ (54) | $ (121) |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | ||
Total consolidated operating income (loss) | $ 2,728 | $ (380) |
Other income (expense), net | 1,117 | (170) |
Income (loss) before income taxes | $ 3,845 | $ (550) |