SHEN - Earnings call transcript Q1 2019 | Shenandoah Telecommunications Company

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, everyone. Welcome to the Shenandoah Telecommunications First Quarter 2019 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Belodeau of IMS and Investor Relations for Shentel.

Jennifer Belodeau

you us. thank and morning, for joining Good The results XX, for today's call XXXX. review Shentel's is to first purpose of quarter ended March

morning, call call. Executive and this Woodward, audio Chris With Investor later Chief announcing today are page release Our we the Executive release our Heimbach, are made President, CFO. President website, be on Dave Operating in available press announced note remarks, prepared Vice will at Chief this and is Finance and the our that set call Senior Please this be Vice Jim French, an reviewing a our us results details conduct we'll of session. the and After forth today. on Officer; Officer; and President a question-and-answer included The www.shentel.com. in presentation replay were distributed press will

These you let forward-looking and which harbor our safe to me always, from the conference of we you results Hence, encouraged which statements. may As discussion SEC remind this presentation, differ a review. our cause refer may certain Slide risks contains to detailed in subject the various that provide our of to call are materially filings, and to disclaimer X you statements risk uncertainties. factors include actual

effort today reliance way, included Details are investors, an that our You're publicly our comparable Chris. in me and in X Chris. update turn call to slide obligation to financial Go these them appendix also GAAP include we to ahead, With of SEC we cautioned the any filings. on required forward-looking statements. measures, these including why reconciliations note to the reconciliations out to that measures, the presentation. today's non-GAAP let an measures. we over place Also, undertake no on provided These useful most in by are Slide use or not provide undue statements. law, comments information on Except as forward-looking to revise to

Christopher French

you, Good morning, Appreciate you everyone. joining Jen. us. Thank

quarter of to income. We continue deliver growth revenue consolidated solid significantly operating with and XXXX the first in results increased

the been exceed quarter and reliable We're upgraded expansion During We provider our first in our making our both we've and saw capacity have quarter achieved by we network the additions our high strong across metrics customer operating businesses. customer paying quarter, strategic in business. areas growth serve the the expectations. as speed The all-time been with to ongoing Wireless most in record we and Cable off. driven position strengthening investments first a

follow alternative optimistic proposed affiliate for progress positioned to the well the whatever would establish exceptional positioned are merger. Sprint formal the needs reach. to the dominant provide a wireless continue outcome, Sprint/T-Mobile competitor merger We're meet believe of to an We long-standing to We agreement Verizon. that outcomes AT&T the the Shentel our well we of our of customers. Regardless as and with service

Our continuing focus value remaining about to shareholders. long-term grow for our vigilant business while our sustaining remains

by increased basic and Adjusted for per million $XXX.X to for Slide our the prepaid million on X.X% Net XX.X%, a margin Wireless an quarter increase margin Operating OIBDA increased year postpaid compared you'll some of customers X.X% organic $X.XX revenues compared the and prior as segment OIBDA XX.X% of nearly $XX.X from share primarily driven and $XX.X Wireless XXXX. income to or X, customers. quarter OIBDA versus representing prepaid million diluted million Revenue X.X% $XXX.X increased of first growth diluted highlights see up highlights X.X% results or customers XXXX. summarize our year. to the X.X% to operating in quarter to Wireless and $X.XX million. per for X.X% an $XX.X quarter. of Moving X, to XXXX. was on in our the for Slide $X.X million were in last increased of performance the adjusted to increased the million, quarter million basic in million to XX% compared $XXX.X postpaid Adjusted we $XX.X income grew first to In period. $XX the the share in

and for Moving through Slide rate $XX.X growth the million more to Cable quarter costs. than due X, VoIP $XX.X higher X. to in to Slide OIBDA and due X% traffic compared the XXXX the broadband in programming wireless to primarily in operating migrating our declines video X.X% facilities. Revenue of segment in revenue adjusted were grew facilities cost-effective adjusted past million circuits implemented voice to broadband repricing driven from Cable primarily increases Wireline $XX.X to increased OIBDA primarily to ARPU. first in more On million circuit-switched by improved backhaul

of While this Wireline in it had cost unfavorably, operating lowering impacted and the segment. revenue benefit Wireless our

and We're recognize reporting contributions Before for our on value. strengthening a to terms I leaving company. the will the to but of off a agreement my his we procedures. shareholder transition, of in XXXX. in turn us and be and after call like his details We delivering be and the results. I processes for well continued leadership a at over growing thank and wish year of close I'll him Jim continue us start also to favorable now and successfully to change chapter take review to financial to reorganizing credit career. the financial and to the well our pleased next strong are helped year This best successful and positioned our our accounting our remarks, He position He's has department growth. Jim minute finance would renegotiated

James Woodward

the and XX. our We morning, on Thank results you, Slide changes quarterly Chris, in good show everyone.

Cable segment higher of infrastructure Operating XXXX. over in million expansion million of the packages income repricing share more VoIP the to investments $X $XX.X The facilities. XX% and by by growing data $XX.X million revenue was the or segment due a prior backhaul the last fiber first partially We speed primarily was quarter. in operating to Net million Wireless quarter down due income higher million necessary First $X.X $XXX.X to a $X.X million compared decrease share costs from for year's for increased costs reduced basic to and and $XXX.X first Cable circuits migrating traditional quarter per to increased offset cable access networks. or the per facilities and consolidated our to from network related and operations. expenses traffic basic deployment to support or X.X%, and decline $X.XX cost-effective XXXX the in compared by $X.XX voice to diluted the Wireless to quarter, circuit-switched diluted driven of the the primarily million

change. Moving OIBDA to to million, adjusted components for $XX by segment, increased a quarter was million. OIBDA Slide of which the XX, you will X.X% $XX.X see the the margin XX.X%. OIBDA first quarter-over-quarter illustrates driving representing quarter Continuing Adjusted results

committed fee reminder, nTelos, total Sprint waive and prepaid acquired $XXX.X reaches a we postpaid As month, when X% until up waived million fees, the to management X% million. management $X.X a to

the drivers changes as a On between quarter to provide receive in growth. and subscriber broadband the which well, broadband XX prepaid the the Wireline benefit The in broadband Slide about backhaul XXXX as in repricing. of service we're capabilities management and adjusted integration customers by OIBDA, of additional bridge $XXX,XXX which adjusted a which going shows change the and increased first resulting Sandy in with Cable XX, primarily Slide is million pleased circuit driven our for expect service and improved result increases XX, and $X.X our is quarter On 'XX OIBDA, a in increased an primarily XXXX of decreased revenue. We driven Over-the-top waived XXXX and enhance video postpaid between the strong grew by Wireless and we consistently Kentucky. presence coverage revenue. adjusted bridge we during driving breakdown Big XXXX. requiring OIBDA, provide quarter fee detailed to our first affiliate consumption, through driving capacity Slide broadband primarily the quarter

metrics capital XX. on our Slide to Turning

$XXX outstanding. we of March of XX, XXXX, million debt As had

including we by prepayment. During the million, first $XX quarter, $XX voluntary reduced a debt million

debt was well presentation X.Xx. XX, barring Dave. to to as decline. inside March debt of our the continue And ratio our significant over I'll and to Our any XXXX, expect levels now leverage And acquisitions, turn we X.XXx, covenant leverage

David Heimbach

operational year-over-year added subscribers. ARPU organic record Thanks, morning, start going some our growth, by of a first over year-over-year. subscribers X.X% subscriber I'll In the from we quarter broadband saw while XX,XXX Jim, highlights everyone. prepaid and Wireless Cable postpaid good Wireless segment, broadband growing X,XXX we where XX,XXX adding XXXX of and our

and million deploy our and enhance to continue our added networks. state-of-the-art ads XXX the also of any miles organic X,XXX gain Cable X,XXX for for were progress, upgraded In LTE to over total technology modulation. at were XXX,XXX new XXX-QAM about customer In a of quarter show our the Combined sites Wireless we year-over-year. experience, Wireline highest the we're we at segment, the customers our components to and and aggregation the On in additions these XX, enhancing we subscribers. make route all constructed postpaid gigabit XX X.X and the X.X and systems features have for We the DOCSIS to including for base fiber, of segments, out capacity on net and prepaid XXX our approximately Wireless first building of first added by XXX,XXX we prepaid. end Slide had subscribers carrier end speeds inter-band year. Net sites, continue track of significant and Cable data quarter net our for to Wireless change postpaid We and of quarter.

positive Sprint port-end X% year-over-year, stores, first increase XXXX. an quarter We and at versus representing XXX Boost with X.XX:X for continue ratio March branded port-out XXX a have XX% We and to respectively. of of finished stores the

quarter. prior both at Slide in can our occurring the and for with was comprised activity the X% data in first X.XX%, Postpaid and for high X.X% churn you an growth base is net of and all-time gross the in base consistent our postpaid Lastly, of devices. their quarter, quarter XX, postpaid of year. with metrics the On both now device tablets upgraded see

attrition, by actually We're free-line should that wholly year-over-year improvements However, it's which by as of mobile level offset account-level proud important rates reduced taken or time promotional which on churn X% only in free only like to of from heavily over these increase subject discounted We'd churn, free adds to points, with all subscriber continue contribute to an note from our was to, new postpaid promo the or $XX.XX lines postpaid no to level stabilization see material almost are roll-off. that we add-a-line to of then And postpaid that is with of or highlight roughly which, line slightly basis account-level lines. together base switching heavily service. year-over-year prepaid XX the discounted in expired $XX.XX. subscribers also lines postpaid ARPU, declined churn revenue-generating

to ARPU Richmond adds compared XXXX, territory subscribers. increased Moving $XX.XX XX. net add mix XX,XXX XX,XXX, Prepaid ARPU to were from to and which gross increased sliver higher quarter due expansion. included the Prepaid of adds Slide of higher first net X,XXX from primarily Boost the year-over-year $XX.XX to to approximately

prepaid net the approximately in X,XXX Sandy quarter, of the increased of partially approximately X,XXX Cable customer same on commission higher added due was prior that compared the video subs. of RGU was X.XX% pleased growth period, subscribers a XX.X% through by driven churn the penetration the speed VoIP annual RGUs organic. to XX to We're subscribers acquisition X,XXX Big increased video to life improvement to broadband During XX. and decrease result this to and the Both improvement from X,XXX primarily quarter first broadband churn, quarter. continued combination a from year report churn reduce XXX,XXX of and which in postpaid price and stores, the in XX% prior dealer by broadband. Now first quarter portance, to point Total Boost last average our more broadband offset XXX,XXX year show per the In of the revenue of declined moving we upgrades X.XX% and of to marketing? basis grew increases. incentives Slide reflecting early the compared X.X% a XX.X% addition to broadband a by year, to in driven per to upgraded and

XX% our approximately ARPU to are homes broadband the of To grow of X to continue while erosion. we second our progress, solid is migrated with up gig PowerHouse-branded minimizing in per XX% upgraded having speed the base of customers over our of to end, tremendous but ahead now capable opportunity broadband card, higher and are us new So significance greater rate of which our penetration. speeds with allowances data passed to areas provides making that market

cable over customers Shentel. competitive Our the while our the by service from goal to of expect come great is to the of wireless reach have speeds construct the fixed local migrating out provide continuing and in satellite, DSL, higher time base markets to deeper to mode our

capacity Lastly, Slide to XX was Approximately spending update including $XX.X spending. CapEx capital by driven million. was investments In $XX.X million Wireless provides the in an our quarter, of and the were total million expansion accounted upgrades. continued this and segment, expansion augments. fiber Cable Wireline driven in for our markets $XX.X by investments network of DOCSIS network and ongoing X.X acquired primarily our and

for acquired now and for Big broadband Sandy million $X.X year network Our approximately the the $XXX recently integration includes budget in cost markets. million upgrades

ready thank for questions. we're So you operator, much. very now And

Operator

Instructions]. [Operator

comes Our of from James. first Ric Prentiss question Raymond

Richard Prentiss

of couple A questions.

phone out quarter were versus Obviously, continues the as it phone break side how you assume First, to of lose you postpaid Sprint? for with side, I adds quarter had us on guys quarter, a the subs on nice the well. on but phone nonphone the much in the can

David Heimbach

this Ric, is Yes, Dave.

as activations since almost gross Xx our point So QX adds tablets, expect. a negative I cetera, slightly of last said, with add-a-lines in phone But watches, that gross year, up of was there. the are But phone Sprint, out year-over-year, well. as our also roughly points might XX% were for versus et gross you were you couple that X% category, Things result And XX% that our and of add-a-lines quarter. The of adds Sprint. represented net Internet mentioned data of might XX% interestingly, you IoT those roughly for

basis, net of increase the Internet a in on postpaid you saw the So was primarily driven in that by quarter Things.

Richard Prentiss

Okay.

net phone adds And postpaid so the adds? in positive quarter, did you have

David Heimbach

They units, were so Ric. XXX down basically flat, about

James Woodward

And an improvement year. over prior

Richard Prentiss

-- just versus Exactly, to the it This obviously. out nonphone, helps break ARPU the exactly. levels, just different phone

David Heimbach

Yes.

Richard Prentiss

about, how to of gross speaking seasonality But up we about levels. second, How were adds? gross strong adds, phone postpaid adds first, gross other. as should And as Yes. think and you well talked on wearables pretty it's the

the So level? But and postpaid stores. from we XX,XXX how I this assume that's add reflecting should network going forward the gross think

David Heimbach

which invest of we're our the natural has base, we've Yes. of thing, And of quarters interesting the Ric, Wireless to we to seen terms I Sprint's subscriber bullish last the is continue the with grow to promos, an over a the we've ability Apple Watch, particularly of they we demanding in amounts expanded of couple in the Look, be think, capital for happened us -- with on elevated particularly network, And wearables is seen why -- in version continue would. it's folks newer that that lot product. that add-a-line areas.

I demand that but respond the we driving neck little consumer that's we retail our our deemphasize of in as really bit and wearables we we've reps, still so a incentives downplayed we have to. and plans that, of And of our sale provide footprint more it's shift through commission our that. woods the And seen in had to a think, that the historically, have

Richard Prentiss

Yes.

one of call Tuesday Sprint they're last maybe hoping -- Okay. mentioned their on decision, me. said Deutsche And -- the for the Telekom in late June the during decision a on see federal on night merger. to Sprint/T-Mobile stages today last

stores, approved. narrow changes is need if affect does a "geographic focus"? approved if guys? operator, you reduce On they their the to the deal approved to that if need morning this on of their that alluded tactic, deal coverage to deal close is that the Sprint not they call their If they of less might Sprint call, to it's might to become the Softbank kind the was need nationwide-focused not and been area, might not How

James Woodward

Ric, is Hey, Jim. this

list I'm what good they we will And -- carrier do. a customers, our because network that obviously, to actually focused. So things growing, do you through we strong -- there. and But can us depend just impacts sure its services they get any the thinking a provide very it out of it both on have we capacity as coverage did, not from and that strong it's and and as are geographically are

I don't top is make really and game on might listed of our right impact the the that have plan in my to head, the just wouldn't of -- say see how the what off that they other So have I you would things changes parts Ric, country outlook is. an our wouldn't

Richard Prentiss

Unless they shift that to guys, up want more might and to you the... key

James Woodward

depending additional I would that well, to just geography, us, then obviously. have yes, that position with to no. to geography, they factor additional want current Oh, to that own. if would talk they If plans, we about conversation. But us they was then their longer-term they about thinking geography we with on But the come come yes, how and into

Richard Prentiss

are with coming M&A. guys where comfortable leverage having are And But debt you leverage M&A leverage to? are leverage with occur going? -- down You without where mentioned significant up head Okay. comfortable you did

James Woodward

really it X obviously, modeling -- a down on expect of and seem game. assets. or in would bit things are a broadband fast trying name we've market. in up, there our that that is we're in sleep what how on would goes what movement that that economic some together tax scale and when don't little There grow to any But change realizing that are still they -- opportunity has coming mean with be I there over, that of would folks as anybody lose was. laws we depending think maybe comes to got been And inquisitive I the the it goes. the don't it depend I that churn

in interested broadband. it's the to we're balance But continue just expansion. wireless to diversify also not portfolio, So and

Operator

Macquarie. next our Young question And Amy comes of from

Amy Yong

continues on and was to how then And should same the see I activity? promotional on impact Can churn. And up magnitude promote? going much their How much just increase? more you more And the Jim, is attributable there rates they to? And [indiscernible] you get wishes. to following the Sprint guess, change disciplined quantify grow comments Dave, for your forward room best second we churn where is [indiscernible] you like nicely. until feel [indiscernible] can to do question ARPU for

David Heimbach

Amy, because phone broadband? out and of you your quick the question connection ARPU in Was were follow-up kind there. on on cutting clarifying

Amy Yong

Yes.

David Heimbach

Okay. No problem.

What hard kind that It's is So undertakes. phrased various of is on question Wireless one I can activities the script given exactly We the and that fairly on how X% us the to churn postpaid it's actually for is, churn in our you base. to less tied what we have it's tell exposure to to our reiterate first add-a-line mentioned that you -- that's that much answer. I really side, way I'll into roll-off promo small the a tough of of promotional all, here, than XX% to -- the subscriber of only closer dig don't. -- Sprint churn

about good So that. we pretty feel

thing lines than is a I'd even adds roughly a other tell we're adding gross ago, whereas The XX quarter that you roughly XXX now. X,XXX down that that's to less quarter XX, months free

also about good So that as we over well. is which substantially feel the exposure dropping time,

to while gains, historically -- acquisition the perspective, that point-of-sale acquisition think management through churn that card. to can't and we do in ARPU the policy our our of to broadband drive prefer kind broadband control rate at had On of kind healthy space, and in due device from the So subscriber will we the Sprint large credit promotions incentives we but I part, best longer our that have and our legacy broadband that was, through term. we try reduce very runs, ARPU

we allowances. better that rate for out a customers, these rolled X.X raised have data new upgrades, launched far we we for DOCSIS As have provides our pricing and speeds greater card

trying are with penetration of our trying is So And journey around balance that to growing my currently stage at we this giving more strike. not to interest ARPU. that's the up balance and that

in like more not think, we -- which we So the ARPU customers. our to speed in our deeper year-over-year from grow driver, of that's long-term is, script with I year, that, did process because are last a leveraging go-forward broadband what you or basis, to upgrades to I ask XX% relationship us and something the would relationship expect

Operator

our And Riley from next the Silver of comes Zack B. question FBR.

Zachary Silver

best your and Jim, to you endeavor. wishes next

year-over-year XXXX The segment 'XX first quarter side, it margin is nice infrastructure that after to growth weigh to, the I should related OIBDA and due year. stepping upgrades driven of kind some Cable wondering margin margin on this And one of Cable is you was for OpEx margin had. down the some whether this I'm on really in by growth to in going in the expect just whether balance we the think,

David Heimbach

chime we some launch half this the while But subscriber by some well. in rate let Dave, this PowerHouse OIBDA delta if promotions variance margin quarter in our things: there terms increase on he'd of the we rate Cable margin of quarter Jim is a year in, back modest then year. like new costs maintenance in the first our driven card, to X in onetime legacy Zack, ran was I'll last negative segment were and really the drove OIBDA of expense. toward as And year-over-year, that preparing that the and acquisition card

leverage In terms customer can with performance this from penetration both segment products we're we grow margin year, to year deepening expansion the managing provide our service of point and the our advantage reinvest this respect the our in to enormous the Cable and to of to to Cable continuing penetration. higher competitive view, and is of relationships way in drive

deepening more growing and customer relationships it year margin this is on a focused year really than is expansion. OIBDA so So penetration

James Woodward

think, -- is just the investments Hey, relationship, some that folks, growth a there's customer -- Dave just made consciously that Dave the sure We segment. [indiscernible] strengthen to we cost. to kind And alternative I that said, made there look, things that -- to of due I going systemic. onetime be don't have, and our sales still right. plenty would I for to the matter broadband. in there, anything on of that no look are do don't to when some what Zack, I think see #X I pow is and always I look alternatives incentivize and make the at what on customers

Zachary Silver

and helpful. try Okay. following That's on more up And earlier. one question Ric's really then

Given appetite on that it, sense their outcome, have side then to would footprint? And other any you what at of what be would in of event be be mean, the an Sprint your I on this sell to of territory more the more of would capital-constrained no-deal do their appetite take point? your

James Woodward

not right, to if I'm But on deal take the answer shareholders. textbook, -- not, And Zack, going the similar just want our just good depend, we'll will mean a will what my but I question. yours. opportunities good looked And think at, because they shareholders. do, shareholders, that that of it or I won't want for I crystal I of as and know some for appetite's away. options like they the I'm the do to exactly look, to additional one out is for expansion to our were there is sounds it's we long-term ball long-term the it's this deal a good sure same Sprint broadband what there. walk to mean,

been them good expand little we've coverage. for helping partner really build think and a them their I in

they the deal exit So depends it merger. view when the world a on they just without how

Operator

Khorsand from of BWS next Our question comes Hamed Financial.

Hamed Khorsand

coming Wireless you're and coming being on visible bigger guys is I you from stores? more subscriber So seeing the you first the that growth are from side, just want Or that footprint? -- was off, opening is to a ask up

David Heimbach

see that, have as think result the continue footprint And years, Yes, to over of you I is And new Hamed, growth. around couple Both. because as continue dirt have on to subscriber X Dave. a expand dig taken store we to this we of in. know. territory expansions last we the strong we

Hamed Khorsand

there costs store the I threshold would of forth where leverage a move costs there's and mean lot is you from fixed these so and see operating a some involved. as startup And they actually openings on?

David Heimbach

the the the of Yes. incremental distribution. specific we're -- stores, openings, to doing, store most third-party we're doing through openings Most store of

pretty our lot see more costs of we continue point a to associated thinking operating use of every that networks, continue to capital submit startup day spend it's minimal. over the I with question, would evidence But we us having like you drive is that, spend we The margins leverage expansion And and at greater drive work circuits, margin here higher the will is as the of time our though, external time. and displace So in leverage still great to we question, a about Shentel, to invest things backhaul upgrade as one for operating incremental reprice we mode. growth to to operating and to expansion we said in backhaul. are and

And so your income see be to statement, short muted. and to manifest is ability to term some that of medium in the somewhat the going

James Woodward

correct tower, and expanding up, good that if up to up network, market power -- you've like to go -- build go Dave, And previous to want -- you're it's we Well, opportunity. with. haven't that as I then the straight you we I network, I... since this me if a Yes. you you talked it's right? something and lighting you're light and got -- -- growing to about Hamed, it's on a calls, but -- tower, The think I

David Heimbach

up. round Six them

James Woodward

to real I the investment the takes Right. witnessed and this of that's those But that subscribers, years you leverage that and as But get start comes. witness selling have where been to capital point. long into couple as a time,

distribution, So sales our to set there's your you opportunity just marketing margins into -- -- network networks. because CapEx start and you up gets higher your you selling got build yes, out and the think I and subscribers to but there, it leverage into those

Hamed Khorsand

just you could out a are goal a and margin? Or like And still actually are margin pull point standpoint? XX% you say operating versus dollars at generating you where in reaching that

James Woodward

territory still growing -- competitive at we are can planning about have same put acquired -- on to, focused and Well, so where been we the landscape and yes. Sprint, time. that the were But we changing the -- we've remaining goal? If a we're diligent maximizing we the point a we that out at that from

So it's not time. just one

Hamed Khorsand

CapEx normalized? is back the that of schedule, of next year purely what be because on going X.X And Is almost goes and last you're spent for just year? that you down to that Cable. double build and Or last is question spending DOCSIS

David Heimbach

Hamed, well expansion of a upgrade. mattering related -- things as the in principally to number, it's Yes. expansion footprint of just fiber but as that the DOCSIS that are X.X continued of our it's

Operator

And comes Dluzhevskiy from Sergey next question GAMCO. our of

Sergey Dluzhevskiy

Sprint/T-Mobile. on One follow-up

guess, given the So opportunities and a are what And seeing, high said is rejected? I most see we for that preparing you do and it merger at I do ones, this call on the is everything you've level, And recent what how envision approved? challenges including headlines if this? you that mean, you if are scenarios

James Woodward

Sergey, is Jim. this

we've fall-off really as starts starts XXX just the of the merger approved, with the if is word occur, is So of a kind where days It events of there and we about, quickly. that as revisit about will an business, merger purchased the whether talked approval that clock and opportunity those. to right? a the and I they not retain the not are it's to everybody towers. keep Wireless It's it's have PCS remind We negotiate or remain -- want an fiber, affiliate we the business -- of

and run The some but the at to do, that we'll out, business. point, [indiscernible]. be their Sprint also us mentioned, business top If XX else at continue I and someone our make we'll would will if discussion. if Sprint not revisit we'll So start T-Mobile territories I and have that expect to and back sit to they'll is is and want to we'll And game thing. They'll reach plan our don't open merger the for then operate a do. come to know what assessment, a become as approved, approved, merger point, needs

Sergey Dluzhevskiy

question on is as inorganic the as far Right. activities. Cable And second my side

criteria So is What which evaluate that [indiscernible]. Cable deal key are are you this you maybe evaluations Sandy year, obviously are the an view it you seeing? organic what you bit. And earlier potential pipeline? about going you're a a guys cable was forward? think Big acquired for I your how potential what those alluded And in acquisitions? And growth of the you to thinking Cable little as

James Woodward

coming organic. about as and there the of it, mind, in But are little of out seeing family-owned, it we or the ways. are market and folks. bit an acquisition, a interest, seeing So in these in think various talk held, Keep Cable I'll are about an can talk uptick companies about comes things the probably I lot Dave inventory -- uptick a those to and we

seeing roles, of and myself some Dave addition Development Officers processes, we the and our Some are for other -- them in Chief them were are also to Shentel. phone it's in their And a full-blown call. of

that know we time the that in out be talking we them home asset folks know their want put want would we meeting there them great And so a assets. going comes they and and when some to to who letting we to and are are that for may and them hands, their good

question M&A part in six are I Was some the is that. a we mainly there that conversations last yet, It's up. are it's of uptick seeing activity wouldn't So picking had? say flurry it but months. an you in another of that uptick

Sergey Dluzhevskiy

No.

activities you prioritize Just key in assets were saying, there's as Obviously, pickup versus criteria for you. others. certain [indiscernible]

James Woodward

Well, to to right? at at I'm much mean have hasn't our and going to to high-class look, from just look Shentel of we is discipline, a It about prioritization to -- and been be -- many a an we at couple decide and But not accretive That's them is them a just said, point, what them. whatever financial shareholders. looking have walked I of away this problem problem a too how that so Shentel. would for isn't because deal like to we're try I I because prioritize comes. it's good of be just have. this going

-- that Central we're you right, playbook looking we're new kind we're Virginia. -- I geographically adjacent. also here open we somewhere and West add the obviously is The interested establishing tell are tuck-ins, of Virginia But other at in same would we're run did beach to thing that in to

are So square -- want but evaluations to... a do those you accretion, price. share Dave,

David Heimbach

you think I questions, his got yes.

James Woodward

questions, your all answer Sergey? that Does

Sergey Dluzhevskiy

Yes. Thank you.

Operator

to not would further remarks. any further to any I'm back Jim showing this turn Woodward questions for And Instructions]. the at like time. call now I over [Operator

James Woodward

joining Take and forward future our for thank the progress. care, Well, day. updating I great wishes. continued have to on us that the you well thank you Chris know Dave for in and and today, you a look And

Operator

you thank you a Everyone, and today's today's gentlemen, program, may wonderful participating This disconnect. day. Ladies Thank have all for conference. you. and in does conclude

Shenandoah Telecommunications (SHEN) 12 May 192019 Q1 Earnings call transcript