x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended June 30, 2011
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
For the transition period from__________ to __________
|
VIRGINIA
|
54-1162807
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer ¨ | Accelerated filer þ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
Page Numbers | |||
PART I.
|
FINANCIAL INFORMATION
|
||
Item 1.
|
Financial Statements
|
||
3-4
|
|||
5
|
|||
6
|
|||
7-8
|
|||
9-14
|
|||
Item 2.
|
15-32
|
||
Item 3.
|
32
|
||
Item 4.
|
33
|
||
PART II.
|
OTHER INFORMATION
|
||
Item 1A.
|
34
|
||
Item 2.
|
34
|
||
Item 6.
|
35
|
||
36
|
|||
37
|
ASSETS
|
June 30,
2011
|
December 31,
2010
|
||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$ | 25,431 | $ | 27,453 | ||||
Accounts receivable, net
|
20,614 | 20,634 | ||||||
Income taxes receivable
|
3,419 | 2,576 | ||||||
Materials and supplies
|
6,576 | 6,360 | ||||||
Prepaid expenses and other
|
3,718 | 3,770 | ||||||
Assets held for sale
|
7,867 | 9,305 | ||||||
Deferred income taxes
|
715 | 702 | ||||||
Total current assets
|
68,340 | 70,800 | ||||||
Investments, including $2,375 and $2,287 carried at fair value
|
8,691 | 9,090 | ||||||
Property, plant and equipment, net
|
289,337 | 280,051 | ||||||
Other Assets
|
||||||||
Intangible assets, net
|
85,543 | 90,389 | ||||||
Cost in excess of net assets of businesses acquired
|
10,962 | 10,962 | ||||||
Deferred charges and other assets, net
|
4,426 | 5,145 | ||||||
Net other assets
|
100,931 | 106,496 | ||||||
Total assets
|
$ | 467,299 | $ | 466,437 |
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
June 30,
2011
|
December 31,
2010
|
||||||
Current Liabilities
|
||||||||
Current maturities of long-term debt
|
$ | 19,559 | $ | 14,823 | ||||
Accounts payable
|
10,953 | 12,237 | ||||||
Advanced billings and customer deposits
|
8,989 | 8,067 | ||||||
Accrued compensation
|
1,401 | 3,278 | ||||||
Liabilities held for sale
|
799 | 910 | ||||||
Accrued liabilities and other
|
6,849 | 5,583 | ||||||
Total current liabilities
|
48,550 | 44,898 | ||||||
Long-term debt, less current maturities
|
169,500 | 180,289 | ||||||
Other Long-Term Liabilities
|
||||||||
Deferred income taxes
|
36,494 | 35,902 | ||||||
Deferred lease payable
|
3,949 | 3,734 | ||||||
Asset retirement obligations
|
6,777 | 6,542 | ||||||
Other liabilities
|
4,887 | 4,767 | ||||||
Total other liabilities
|
52,107 | 50,945 | ||||||
Commitments and Contingencies
|
||||||||
Shareholders’ Equity
|
||||||||
Common stock
|
20,651 | 19,833 | ||||||
Retained earnings
|
176,491 | 170,472 | ||||||
Total shareholders’ equity
|
197,142 | 190,305 | ||||||
Total liabilities and shareholders’ equity
|
$ | 467,299 | $ | 466,437 |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Operating revenues
|
$ | 61,555 | $ | 42,361 | $ | 121,983 | $ | 83,959 | ||||||||
Operating expenses:
|
||||||||||||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below
|
25,216 | 15,278 | 51,277 | 29,336 | ||||||||||||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below
|
13,901 | 10,810 | 27,239 | 18,590 | ||||||||||||
Depreciation and amortization
|
14,444 | 8,483 | 28,382 | 16,724 | ||||||||||||
Total operating expenses
|
53,561 | 34,571 | 106,898 | 64,650 | ||||||||||||
Operating income
|
7,994 | 7,790 | 15,085 | 19,309 | ||||||||||||
Other income (expense):
|
||||||||||||||||
Interest expense
|
(2,846 | ) | (266 | ) | (4,665 | ) | (576 | ) | ||||||||
Gain (loss) on investments, net
|
(124 | ) | (76 | ) | (249 | ) | (142 | ) | ||||||||
Non-operating income, net
|
290 | 182 | 508 | 269 | ||||||||||||
Income from continuing operations before income taxes
|
5,314 | 7,630 | 10,679 | 18,860 | ||||||||||||
Income tax expense
|
2,276 | 3,117 | 4,581 | 7,766 | ||||||||||||
Net income from continuing operations
|
3,038 | 4,513 | 6,098 | 11,094 | ||||||||||||
Earnings (loss) from discontinued operations, net of tax
(expense) benefit of $31, $(38), $52 and $(150), respectively
|
(46 | ) | 59 | (79 | ) | 233 | ||||||||||
Net income
|
$ | 2,992 | $ | 4,572 | $ | 6,019 | $ | 11,327 | ||||||||
Basic and diluted income (loss) per share:
|
||||||||||||||||
Net income from continuing operations
|
$ | 0.13 | $ | 0.19 | $ | 0.25 | $ | 0.47 | ||||||||
Net earnings (loss) from discontinued operations
|
- | - | - | 0.01 | ||||||||||||
Net income
|
$ | 0.13 | $ | 0.19 | $ | 0.25 | $ | 0.48 | ||||||||
Weighted average shares outstanding, basic
|
23,772 | 23,738 | 23,769 | 23,718 | ||||||||||||
Weighted average shares, diluted
|
23,797 | 23,781 | 23,823 | 23,757 |
Share
|
Common
Stock
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total
|
||||||||||||||||
Balance, December 31, 2009
|
23,681 | $ | 17,890 | $ | 160,230 | $ | (2,448 | ) | $ | 175,672 | ||||||||||
Comprehensive income:
|
||||||||||||||||||||
Net income
|
- | - | 18,075 | - | 18,075 | |||||||||||||||
Reclassification adjustment for unrealized loss from pension plans included in net income, net of tax
|
- | - | - | 2,596 | 2,596 | |||||||||||||||
Net unrealized gain from pension plans, net of tax
|
- | - | - | (148 | ) | (148 | ) | |||||||||||||
Total comprehensive income
|
20,523 | |||||||||||||||||||
Dividends declared ($0.33 per share)
|
- | - | (7,833 | ) | - | (7,833 | ) | |||||||||||||
Dividends reinvested in common stock
|
29 | 520 | - | - | 520 | |||||||||||||||
Stock-based compensation
|
- | 792 | - | - | 792 | |||||||||||||||
Common stock issued through exercise of incentive stock options
|
57 | 561 | - | - | 561 | |||||||||||||||
Net excess tax benefit from stock options exercised
|
- | 70 | - | - | 70 | |||||||||||||||
Balance, December 31, 2010
|
23,767 | $ | 19,833 | $ | 170,472 | $ | - | $ | 190,305 | |||||||||||
Comprehensive income:
|
||||||||||||||||||||
Net income
|
- | - | 6,019 | - | 6,019 | |||||||||||||||
Total comprehensive income
|
6,019 | |||||||||||||||||||
Stock-based compensation
|
- | 902 | - | - | 902 | |||||||||||||||
Common stock issued for share awards
|
19 | - | - | - | - | |||||||||||||||
Common stock repurchased
|
(5 | ) | (92 | ) | - | - | (92 | ) | ||||||||||||
Common stock issued
|
- | 8 | - | - | 8 | |||||||||||||||
Balance, June 30, 2011
|
23,781 | $ | 20,651 | $ | 176,491 | $ | - | $ | 197,142 |
Six Months Ended
June 30,
|
||||||||
2011
|
2010
|
|||||||
Cash Flows From Operating Activities
|
||||||||
Net income
|
$ | 6,019 | $ | 11,327 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
22,333 | 16,503 | ||||||
Amortization
|
6,049 | 221 | ||||||
Provision for bad debt
|
1,929 | 366 | ||||||
Stock based compensation expense
|
902 | 279 | ||||||
Pension settlement and curtailment expenses
|
- | 3,964 | ||||||
Excess tax benefits on stock option exercises
|
- | (70 | ) | |||||
Deferred income taxes
|
579 | 204 | ||||||
Net loss on disposal of equipment
|
111 | 158 | ||||||
Realized loss on disposal of investments
|
27 | 147 | ||||||
Unrealized (gains) losses on investments
|
(104 | ) | (94 | ) | ||||
Net (gain) loss from patronage and equity investments
|
173 | 15 | ||||||
Other
|
113 | 61 | ||||||
Changes in assets and liabilities:
|
||||||||
(Increase) decrease in:
|
||||||||
Accounts receivable
|
(1,919 | ) | (2,320 | ) | ||||
Materials and supplies
|
(216 | ) | 671 | |||||
Income taxes receivable
|
(843 | ) | 5,531 | |||||
Increase (decrease) in:
|
||||||||
Accounts payable
|
(1,224 | ) | (3,853 | ) | ||||
Deferred lease payable
|
214 | 165 | ||||||
Income taxes payable
|
- | 954 | ||||||
Other prepaids, deferrals and accruals
|
198 | 891 | ||||||
Net cash provided by operating activities
|
$ | 34,341 | $ | 35,120 | ||||
Cash Flows From Investing Activities
|
||||||||
Purchase and construction of property, plant and equipment
|
$ | (31,631 | ) | $ | (19,264 | ) | ||
Proceeds from sale of assets
|
920 | - | ||||||
Proceeds from sale of equipment
|
184 | 249 | ||||||
Purchase of investment securities
|
(84 | ) | (66 | ) | ||||
Proceeds from sale of investment securities
|
386 | 46 | ||||||
Net cash used in investing activities
|
$ | (30,225 | ) | $ | (19,035 | ) |
Six Months Ended
June 30,
|
||||||||
2011
|
2010
|
|||||||
Cash Flows From Financing Activities
|
||||||||
Principal payments on long-term debt
|
$ | (6,054 | ) | $ | (2,259 | ) | ||
Excess tax benefits on stock option exercises
|
- | 70 | ||||||
Repurchases of stock
|
(92 | ) | - | |||||
Proceeds from exercise of incentive stock options
|
8 | 554 | ||||||
Net cash used in financing activities
|
$ | (6,138 | ) | $ | (1,635 | ) | ||
Net increase (decrease) in cash and cash equivalents
|
$ | (2,022 | ) | $ | 14,450 | |||
Cash and cash equivalents:
|
||||||||
Beginning
|
27,453 | 12,054 | ||||||
Ending
|
$ | 25,431 | $ | 26,504 | ||||
Supplemental Disclosures of Cash Flow Information
|
||||||||
Cash payments for:
|
||||||||
Interest
|
$ | 3,872 | $ | 752 | ||||
Income taxes
|
$ | 4,793 | $ | 1,189 |
June 30, 2011
|
December 31, 2010
|
|||||||
Assets held for sale:
|
||||||||
Property, plant and equipment, net
|
$ | 5,740 | $ | 6,614 | ||||
Intangible assets, net
|
706 | 706 | ||||||
Deferred charges
|
739 | 1,310 | ||||||
Other assets
|
682 | 675 | ||||||
$ | 7,867 | $ | 9,305 | |||||
Liabilities:
|
||||||||
Other liabilities
|
$ | 799 | $ | 910 |
Three Months Ended
June 30,
|
||||||||
2011
|
2010
|
|||||||
Operating revenues
|
$ | 3,031 | $ | 3,255 | ||||
Earnings (loss) before income taxes
|
$ | (77 | ) | $ | 98 |
Six Months Ended
June 30,
|
||||||||
2011
|
2010
|
|||||||
Operating revenues
|
$ | 6,337 | $ | 6,702 | ||||
Earnings (loss) before income taxes
|
$ | (131 | ) | $ | 383 |
June 30, 2011
|
December 31, 2010
|
|||||||
Plant in service
|
$ | 496,103 | $ | 466,658 | ||||
Plant under construction
|
22,526 | 25,515 | ||||||
518,629 | 492,173 | |||||||
Less accumulated amortization and depreciation
|
229,292 | 212,122 | ||||||
Net property, plant and equipment
|
$ | 289,337 | $ | 280,051 |
Wireless
|
Wireline
|
Cable TV
|
Other
|
Eliminations
|
Consolidated
Totals
|
|||||||||||||||||||
External revenues
|
||||||||||||||||||||||||
Service revenues
|
$ | 33,806 | $ | 3,660 | $ | 14,602 | $ | - | $ | - | $ | 52,068 | ||||||||||||
Other
|
2,927 | 4,407 | 2,153 | - | - | 9,487 | ||||||||||||||||||
Total external revenues
|
36,733 | 8,067 | 16,755 | - | - | 61,555 | ||||||||||||||||||
Internal revenues
|
801 | 4,199 | 79 | - | (5,079 | ) | - | |||||||||||||||||
Total operating revenues
|
37,534 | 12,266 | 16,834 | - | (5,079 | ) | 61,555 | |||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||
Costs of goods and services, exclusive of depreciation and amortization shown separately below
|
13,391 | 4,817 | 11,435 | 30 | (4,457 | ) | 25,216 | |||||||||||||||||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below
|
7,651 | 1,866 | 4,234 | 772 | (622 | ) | 13,901 | |||||||||||||||||
Depreciation and amortization
|
6,140 | 2,155 | 6,088 | 61 | - | 14,444 | ||||||||||||||||||
Total operating expenses
|
27,182 | 8,838 | 21,757 | 863 | (5,079 | ) | 53,561 | |||||||||||||||||
Operating income (loss)
|
10,352 | 3,428 | (4,923 | ) | (863 | ) | - | 7,994 |
(In thousands)
|
Wireless
|
Wireline
|
Cable TV
|
Other
|
Eliminations
|
Consolidated
Totals
|
||||||||||||||||||
External revenues
|
||||||||||||||||||||||||
Service revenues
|
$ | 26,264 | $ | 3,623 | $ | 3,679 | $ | - | $ | - | $ | 33,566 | ||||||||||||
Other
|
3,008 | 5,395 | 392 | - | - | 8,795 | ||||||||||||||||||
Total external revenues
|
29,272 | 9,018 | 4,071 | - | - | 42,361 | ||||||||||||||||||
Internal revenues
|
759 | 3,439 | 14 | - | (4,212 | ) | - | |||||||||||||||||
Total operating revenues
|
30,031 | 12,457 | 4,085 | - | (4,212 | ) | 42,361 | |||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||
Costs of goods and services, exclusive of depreciation and amortization shown separately below
|
9,993 | 4,594 | 4,367 | 65 | (3,741 | ) | 15,278 | |||||||||||||||||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below
|
4,820 | 3,334 | 2,224 | 903 | (471 | ) | 10,810 | |||||||||||||||||
Depreciation and amortization
|
5,286 | 1,935 | 1,195 | 67 | - | 8,483 | ||||||||||||||||||
Total operating expenses
|
20,099 | 9,863 | 7,786 | 1,035 | (4,212 | ) | 34,571 | |||||||||||||||||
Operating income (loss)
|
9,932 | 2,594 | (3,701 | ) | (1,035 | ) | - | 7,790 |
Six months ended June 30, 2011
|
||||||||||||||||||||||||
(In thousands)
|
Wireless
|
Wireline
|
Cable TV
|
Other
|
Eliminations
|
Consolidated
Totals
|
||||||||||||||||||
External revenues
|
||||||||||||||||||||||||
Service revenues
|
$ | 66,010 | $ | 7,245 | $ | 29,062 | $ | - | $ | - | $ | 102,317 | ||||||||||||
Other
|
6,402 | 9,077 | 4,187 | - | - | 19,666 | ||||||||||||||||||
Total external revenues
|
72,412 | 16,322 | 33,249 | - | - | 121,983 | ||||||||||||||||||
Internal revenues
|
1,590 | 8,028 | 116 | - | (9,734 | ) | - | |||||||||||||||||
Total operating revenues
|
74,002 | 24,350 | 33,365 | - | (9,734 | ) | 121,983 | |||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||
Costs of goods and services, exclusive of depreciation and amortization shown separately below
|
27,004 | 9,350 | 23,359 | 64 | (8,500 | ) | 51,277 | |||||||||||||||||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below
|
14,197 | 3,667 | 8,863 | 1,746 | (1,234 | ) | 27,239 | |||||||||||||||||
Depreciation and amortization
|
12,374 | 4,105 | 11,786 | 117 | - | 28,382 | ||||||||||||||||||
Total operating expenses
|
53,575 | 17,122 | 44,008 | 1,927 | (9,734 | ) | 106,898 | |||||||||||||||||
Operating income (loss)
|
20,427 | 7,228 | (10,643 | ) | (1,927 | ) | - | 15,085 |
Six months ended June 30, 2010
|
||||||||||||||||||||||||
(In thousands)
|
Wireless
|
Wireline
|
Cable TV
|
Other
|
Eliminations
|
Consolidated
Totals
|
||||||||||||||||||
External revenues
|
||||||||||||||||||||||||
Service revenues
|
$ | 52,791 | $ | 7,000 | $ | 7,292 | $ | - | $ | - | $ | 67,083 | ||||||||||||
Other
|
5,968 | 10,137 | 771 | - | - | 16,876 | ||||||||||||||||||
Total external revenues
|
58,759 | 17,137 | 8,063 | - | - | 83,959 | ||||||||||||||||||
Internal revenues
|
1,505 | 6,700 | 24 | - | (8,229 | ) | - | |||||||||||||||||
Total operating revenues
|
60,264 | 23,837 | 8,087 | - | (8,229 | ) | 83,959 | |||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||
Costs of goods and services, exclusive of depreciation and amortization shown separately below
|
19,871 | 8,757 | 7,834 | 132 | (7,258 | ) | 29,336 | |||||||||||||||||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below
|
8,923 | 5,166 | 3,757 | 1,715 | (971 | ) | 18,590 | |||||||||||||||||
Depreciation and amortization
|
10,525 | 3,860 | 2,199 | 140 | - | 16,724 | ||||||||||||||||||
Total operating expenses
|
39,319 | 17,783 | 13,790 | 1,987 | (8,229 | ) | 64,650 | |||||||||||||||||
Operating income (loss)
|
20,945 | 6,054 | (5,703 | ) | (1,987 | ) | - | 19,309 |
Three Months Ended
June 30,
|
||||||||
2011
|
2010
|
|||||||
Total consolidated operating income
|
$ | 7,994 | $ | 7,790 | ||||
Interest expense
|
(2,846 | ) | (266 | ) | ||||
Non-operating income (expense), net
|
166 | 106 | ||||||
Income from continuing operations before income taxes
|
$ | 5,314 | $ | 7,630 |
Six Months Ended
June 30,
|
||||||||
2011
|
2010
|
|||||||
Total consolidated operating income
|
$ | 15,085 | $ | 19,309 | ||||
Interest expense
|
(4,665 | ) | (576 | ) | ||||
Non-operating income (expense), net
|
259 | 127 | ||||||
Income from continuing operations before income taxes
|
$ | 10,679 | $ | 18,860 |
(In thousands)
|
June 30,
2011
|
December 31,
2010
|
||||||
Wireless
|
$ | 127,021 | $ | 124,854 | ||||
Wireline
|
80,944 | 78,552 | ||||||
Cable TV
|
209,519 | 208,039 | ||||||
Other (includes assets held for sale)
|
395,251 | 393,340 | ||||||
Combined totals
|
812,735 | 804,785 | ||||||
Inter-segment eliminations
|
(345,436 | ) | (338,348 | ) | ||||
Consolidated totals
|
$ | 467,299 | $ | 466,437 |
June
2011
|
December
2010
|
|||||||
CoBank (fixed term loan)
|
$ | 5,777 | $ | 6,984 | ||||
CoBank Term Loan A
|
182,683 | 187,428 | ||||||
Other debt
|
599 | 700 | ||||||
189,059 | 195,112 | |||||||
Current maturities
|
19,559 | 14,823 | ||||||
Total long-term debt
|
$ | 169,500 | $ | 180,289 |
ITEM
2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
*
|
The Wireless segment provides digital wireless service to a portion of a four-state area covering the region from Harrisburg, York and Altoona, Pennsylvania, to Harrisonburg, Virginia, as a Sprint PCS Affiliate of Sprint Nextel. This segment also owns cell site towers built on leased land, and leases space on these towers to both affiliates and non-affiliated service providers.
|
|
*
|
The Wireline segment provides regulated and unregulated voice services, dial-up and DSL internet access, and long-distance access services throughout Shenandoah County and portions of northwestern Augusta County, Virginia, and leases fiber optic facilities, throughout the northern Shenandoah Valley of Virginia, northern Virginia and adjacent areas along the Interstate 81 corridor, including portions of West Virginia and Maryland.
|
|
*
|
The Cable TV segment provides video, internet and voice services in franchise areas throughout Virginia, West Virginia and Maryland.
|
|
*
|
A fourth segment, Other, primarily includes Shenandoah Telecommunications Company, the parent holding company, as well as certain general and administrative costs historically charged to Converged Services that cannot be allocated to discontinued operations.
|
(in thousands)
|
Three Months Ended
June 30,
|
Change
|
||||||||||||||
2011
|
2010
|
$ | % | |||||||||||||
Operating revenues
|
$ | 61,555 | $ | 42,361 | $ | 19,194 | 45.3 | |||||||||
Operating expenses
|
53,561 | 34,571 | 18,990 | 54.9 | ||||||||||||
Operating income
|
7,994 | 7,790 | 204 | 2.6 | ||||||||||||
Interest expense
|
(2,846 | ) | (266 | ) | (2,580 | ) | (969.8 | ) | ||||||||
Other income (expense)
|
166 | 106 | 60 | 56.6 | ||||||||||||
Income before taxes
|
5,314 | 7,630 | (2,316 | ) | (30.4 | ) | ||||||||||
Income tax expense
|
2,276 | 3,117 | 841 | 27.0 | ||||||||||||
Net income from continuing operations
|
$ | 3,038 | $ | 4,513 | $ | (1,475 | ) | (32.7 | ) |
(in thousands)
|
Six Months Ended
June 30,
|
Change
|
||||||||||||||
2011
|
2010
|
$ | % | |||||||||||||
Operating revenues
|
$ | 121,983 | $ | 83,959 | $ | 38,024 | 45.3 | |||||||||
Operating expenses
|
106,898 | 64,650 | 42,248 | 65.3 | ||||||||||||
Operating income
|
15,085 | 19,309 | (4,224 | ) | (21.9 | ) | ||||||||||
Interest expense
|
(4,665 | ) | (576 | ) | (4,089 | ) | 709.9 | |||||||||
Other income (expense)
|
259 | 127 | 132 | 103.9 | ||||||||||||
Income before taxes
|
10,679 | 18,860 | (8,181 | ) | (43.4 | ) | ||||||||||
Income tax expense
|
4,581 | 7,766 | 3,185 | 41.0 | ||||||||||||
Net income from continuing operations
|
$ | 6,098 | $ | 11,094 | $ | (4,996 | ) | (45.0 | ) |
June 30,
2011
|
Dec. 31,
2010
|
June 30,
2010
|
Dec. 31,
2009
|
|||||||||||||
Retail PCS Subscribers – Postpaid (1)
|
240,862 | 234,809 | 227,437 | 222,818 | ||||||||||||
Retail PCS Subscribers – Prepaid
|
91,332 | 66,956 | n/a | n/a | ||||||||||||
PCS Market POPS (000) (2)
|
2,397 | 2,337 | 2,337 | 2,327 | ||||||||||||
PCS Covered POPS (000) (2)
|
2,114 | 2,049 | 2,046 | 2,033 | ||||||||||||
CDMA Base Stations (sites)
|
507 | 496 | 483 | 476 | ||||||||||||
EVDO-enabled sites
|
393 | 381 | 346 | 334 | ||||||||||||
EVDO Covered POPS (000) (2)
|
2,045 | 1,981 | 1,959 | 1,940 | ||||||||||||
Towers
|
149 | 146 | 142 | 140 | ||||||||||||
Non-affiliate cell site leases
|
219 | 216 | 210 | 196 |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Gross PCS Subscriber Additions – Postpaid
|
14,673 | 14,740 | 30,159 | 29,668 | ||||||||||||
Net PCS Subscriber Additions – Postpaid
|
3,037 | 2,911 | 6,053 | 4,619 | ||||||||||||
Gross PCS Subscriber Additions – Prepaid
|
22,864 | n/a | 46,034 | n/a | ||||||||||||
Net PCS Subscriber Additions – Prepaid
|
11,089 | n/a | 24,376 | n/a | ||||||||||||
PCS Average Monthly Retail Churn % - Postpaid
|
1.62 | % | 1.66 | % | 1.69 | % | 1.79 | % | ||||||||
PCS Average Monthly Retail Churn % - Prepaid
|
4.58 | % | n/a | 4.53 | % | n/a |
|
1)
|
Postpaid subscriber counts for December 31, 2010 have been reduced by 888 to exclude certain rate plans incorrectly counted as subscribers in the latter months of 2010.
|
|
2)
|
POPS refers to the estimated population of a given geographic area and is based on information purchased from third parties. Market POPS are those within a market area which the Company is authorized to serve under its Sprint PCS affiliate agreements, and Covered POPS are those covered by the Company’s network.
|
(in thousands)
|
Three Months Ended
June 30,
|
Change
|
||||||||||||||
2011
|
2010
|
$ | % | |||||||||||||
Segment operating revenues
|
|
|
||||||||||||||
Wireless service revenue
|
$ | 33,806 | $ | 26,264 | $ | 7,542 | 28.7 | |||||||||
Tower lease revenue
|
2,199 | 2,006 | 193 | 9.6 | ||||||||||||
Equipment revenue
|
1,059 | 1,287 | (228 | ) | (17.7 | ) | ||||||||||
Other revenue
|
470 | 474 | (4 | ) | (0.8 | ) | ||||||||||
Total segment operating revenues
|
37,534 | 30,031 | 7,503 | 25.0 | ||||||||||||
Segment operating expenses
|
||||||||||||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below
|
13,391 | 9,993 | 3,398 | 34.0 | ||||||||||||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below
|
7,651 | 4,820 | 2,831 | 58.7 | ||||||||||||
Depreciation and amortization
|
6,140 | 5,286 | 854 | 16.2 | ||||||||||||
Total segment operating expenses
|
27,182 | 20,099 | 7,083 | 35.2 | ||||||||||||
Segment operating income
|
$ | 10,352 | $ | 9,932 | $ | 420 | 4.2 |
(in thousands)
|
Six Months Ended
June 30,
|
Change
|
||||||||||||||
2011
|
2010
|
$ | % | |||||||||||||
Segment operating revenues
|
|
|
||||||||||||||
Wireless service revenue
|
$ | 66,010 | $ | 52,791 | $ | 13,219 | 25.0 | |||||||||
Tower lease revenue
|
4,375 | 3,954 | 421 | 10.6 | ||||||||||||
Equipment revenue
|
2,628 | 2,505 | 123 | 4.9 | ||||||||||||
Other revenue
|
989 | 1,014 | (25 | ) | (2.5 | ) | ||||||||||
Total segment operating revenues
|
74,002 | 60,264 | 13,738 | 22.8 | ||||||||||||
Segment operating expenses
|
||||||||||||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below
|
27,004 | 19,871 | 7,133 | 35.9 | ||||||||||||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below
|
14,197 | 8,923 | 5,274 | 59.1 | ||||||||||||
Depreciation and amortization
|
12,374 | 10,525 | 1,849 | 17.6 | ||||||||||||
Total segment operating expenses
|
53,575 | 39,319 | 14,256 | 36.3 | ||||||||||||
Segment operating income
|
$ | 20,427 | $ | 20,945 | $ | (518 | ) | (2.5 | ) |
June 30,
2011
|
Dec. 31,
2010(1)
|
June 30,
2010(1)
|
Dec. 31,
2009(1)
|
|||||||||||||
Homes Passed (2)
|
180,050 | 178,763 | 56,395 | 56,268 | ||||||||||||
Video
|
||||||||||||||||
Customers (3)
|
65,870 | 67,235 | 23,500 | 23,022 | ||||||||||||
Penetration (4)
|
36.6 | % | 37.6 | % | 41.7 | % | 40.9 | % | ||||||||
Digital video customers (5)
|
23,666 | 22,855 | 8,199 | 6,487 | ||||||||||||
Digital video penetration (5)
|
35.9 | % | 34.0 | % | 34.9 | % | 28.2 | % | ||||||||
High-speed Internet
|
||||||||||||||||
Available Homes (6)
|
150,623 | 144,099 | 33,301 | 25,748 | ||||||||||||
Customers (3)
|
33,680 | 31,832 | 4,261 | 2,525 | ||||||||||||
Penetration (4)
|
22.4 | % | 22.1 | % | 12.8 | % | 9.8 | % | ||||||||
Voice
|
||||||||||||||||
Available Homes (6)
|
129,027 | 118,652 | 27,914 | - | ||||||||||||
Customers (3)
|
7,794 | 6,340 | 840 | 22 | ||||||||||||
Penetration (4)
|
6.0 | % | 5.3 | % | 3.0 | % | n/a | |||||||||
Revenue Generating Units (7)
|
131,010 | 128,262 | 36,800 | 32,056 | ||||||||||||
Total Fiber Miles
|
33,548 | 31,577 | 4,726 | 4,558 | ||||||||||||
Fiber Route Miles (8)
|
1,854 | 1,389 | 417 | 403 |
|
1)
|
In March 2011, the Company transferred five properties from its Converged Services subsidiary to Shentel Cable. Operating results for these 5 properties had been included in discontinued operations in prior periods. The Company has reclassified their operating results to continuing operations for all prior periods, and the customer counts for prior periods have been revised to include customers at these properties. As of December 31, 2010, these properties included 233 video customers, 449 internet customers, and 14 voice customers. Customer counts for prior periods were not significantly different for these properties. The Company also increased the number of internet customers as of December 31, 2010 by 503 customers, due to a
computational error. In July 2010, the Company acquired cable operations covering approximately 115 thousand video homes passed, 101 thousand high-speed internet available homes, and 85 thousand voice available homes. These systems served approximately 41 thousand video subscribers, 21 thousand high-speed internet subscribers, and 3 thousand voice subscribers. In December 2010, the Company acquired two small systems covering approximately 7 thousand video homes passed, approximately 3 thousand video customers and 1 thousand high-speed internet customers.
|
|
2)
|
Homes and businesses are considered passed (“homes passed”) if we can connect them to our distribution system without further extending the transmission lines. Homes passed is an estimate based upon the best available information.
|
|
3)
|
Generally, a dwelling or commercial unit with one or more television sets connected to our distribution system counts as one video customer. Where video or internet services are provided on a bulk basis, such as to hotels and some multi-dwelling units, the revenue charged to the customer is divided by the rate for comparable service in the local market to determine the number of customer equivalents included in the customer counts shown above.
|
|
4)
|
Penetration is calculated by dividing the number of customers by the number of homes passed or available homes, as appropriate.
|
|
5)
|
Digital video customers are those who receive any level of video service via digital transmission. A dwelling with one or more digital set-top boxes counts as one digital video customer. Digital video penetration is calculated by dividing the number of digital video customers by total video customers.
|
|
6)
|
Homes and businesses are considered available (“available homes”) if we can connect them to our distribution system without further extending the transmission lines and if we offer the service in that area. Homes passed in Shenandoah County are excluded from available homes as we do not offer high-speed internet or voice services over our co-axial distribution network in this market.
|
|
7)
|
Revenue generating units are the sum of video, digital video, voice and high-speed internet customers. Consistent with industry practices, each digital video customer counts as two revenue generating units.
|
|
8)
|
Fiber miles are measured by taking the number of fiber strands in a cable and multiplying that number by the route distance. For example, a 10 mile route with 144 fiber strands would equal 1,440 fiber miles.
|
(in thousands)
|
Three Months Ended
June 30,
|
Change
|
||||||||||||||
2011
|
2010
|
$ | % | |||||||||||||
|
||||||||||||||||
Segment operating revenues
|
||||||||||||||||
Service revenue
|
$ | 14,602 | $ | 3,679 | $ | 10,923 | 296.9 | |||||||||
Equipment and other revenue
|
2,232 | 406 | 1,826 | 449.8 | ||||||||||||
Total segment operating revenues
|
16,834 | 4,085 | 12,749 | 312.0 | ||||||||||||
Segment operating expenses
|
||||||||||||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below
|
11,435 | 4,367 | 7,068 | 161.9 | ||||||||||||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below
|
4,234 | 2,224 | 2,010 | 90.4 | ||||||||||||
Depreciation and amortization
|
6,088 | 1,195 | 4,893 | 409.5 | ||||||||||||
Total segment operating expenses
|
21,757 | 7,786 | 13,971 | 179.4 | ||||||||||||
Segment operating loss
|
$ | (4,923 | ) | $ | (3,701 | ) | $ | (1,222 | (33.0 | ) |
(in thousands)
|
Six Months Ended
June 30,
|
Change
|
||||||||||||||
2011
|
2010
|
$ | % | |||||||||||||
|
||||||||||||||||
Segment operating revenues
|
||||||||||||||||
Service revenue
|
$ | 29,062 | $ | 7,292 | $ | 21,770 | 298.5 | |||||||||
Equipment and other revenue
|
4,303 | 795 | 3,508 | 441.3 | ||||||||||||
Total segment operating revenues
|
33,365 | 8,087 | 25,278 | 312.6 | ||||||||||||
Segment operating expenses
|
||||||||||||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below
|
23,359 | 7,834 | 15,525 | 198.2 | ||||||||||||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below
|
8,863 | 3,757 | 5,106 | 135.9 | ||||||||||||
Depreciation and amortization
|
11,786 | 2,199 | 9,587 | 436.0 | ||||||||||||
Total segment operating expenses
|
44,008 | 13,790 | 30,218 | 219.1 | ||||||||||||
Segment operating loss
|
$ | (10,643 | ) | $ | (5,703 | ) | $ | (4,940 | ) | (86.6 | ) |
June 30,
2011
|
Dec. 31,
2010
|
June 30,
2010
|
Dec. 31,
2009
|
|||||||||||||
Wireline Segment
|
||||||||||||||||
Telephone Access Lines
|
23,461 | 23,706 | 24,040 | 24,358 | ||||||||||||
Long Distance Subscribers
|
10,647 | 10,667 | 10,804 | 10,851 | ||||||||||||
Total Fiber Miles
|
73,064 | 71,118 | 68,092 | 53,511 | ||||||||||||
Fiber Route Miles (1)
|
1,301 | 1,267 | 1,267 | 837 | ||||||||||||
DSL Subscribers
|
12,200 | 11,946 | 11,670 | 10,985 | ||||||||||||
Dial-up Internet Subscribers
|
1,733 | 2,190 | 2,677 | 3,359 |
|
(1)
|
Fiber miles are measured by taking the number of fiber strands in a cable and multiplying that number by the route distance. For example, a 10 mile route with 144 fiber strands would equal 1,440 fiber miles.
|
(in thousands)
|
Three Months Ended
June 30,
|
Change
|
||||||||||||||
2011
|
2010
|
$ | % | |||||||||||||
Segment operating revenues
|
||||||||||||||||
Service revenue
|
$ | 4,021 | $ | 3,859 | $ | 162 | 4.2 | |||||||||
Access revenue
|
3,647 | 3,657 | (10 | ) | (0.3 | ) | ||||||||||
Facilities lease revenue
|
3,934 | 3,742 | 192 | 5.1 | ||||||||||||
Equipment revenue
|
7 | 10 | (3 | ) | (30.0 | ) | ||||||||||
Other revenue
|
657 | 1,189 | (532 | ) | (44.7 | ) | ||||||||||
Total segment operating revenues
|
12,266 | 12,457 | (191 | ) | (1.5 | ) | ||||||||||
Segment operating expenses
|
||||||||||||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below
|
4,817 | 4,594 | 223 | 4.9 | ||||||||||||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below
|
1,866 | 3,334 | (1,468 | ) | (44.0 | ) | ||||||||||
Depreciation and amortization
|
2,155 | 1,935 | 220 | 11.4 | ||||||||||||
Total segment operating expenses
|
8,838 | 9,863 | (1,025 | ) | (10.4 | ) | ||||||||||
Segment operating income
|
$ | 3,428 | $ | 2,594 | $ | 834 | 32.2 |
(in thousands)
|
Six Months Ended
June 30,
|
Change
|
||||||||||||||
2011
|
2010
|
$ | % | |||||||||||||
Segment operating revenues
|
||||||||||||||||
Service revenue
|
$ | 7,976 | $ | 7,478 | $ | 498 | 6.7 | |||||||||
Access revenue
|
6,865 | 6,861 | 4 | 0.1 | ||||||||||||
Facilities lease revenue
|
7,718 | 7,105 | 613 | 8.6 | ||||||||||||
Equipment revenue
|
18 | 28 | (10 | ) | (35.7 | ) | ||||||||||
Other revenue
|
1,773 | 2,365 | (592 | ) | (25.0 | ) | ||||||||||
Total segment operating revenues
|
24,350 | 23,837 | 513 | 2.2 | ||||||||||||
Segment operating expenses
|
||||||||||||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below
|
9,350 | 8,757 | 593 | 6.8 | ||||||||||||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below
|
3,667 | 5,166 | (1,499 | ) | (29.0 | ) | ||||||||||
Depreciation and amortization
|
4,105 | 3,860 | 245 | 6.4 | ||||||||||||
Total segment operating expenses
|
17,122 | 17,783 | (661 | ) | (3.7 | ) | ||||||||||
Segment operating income
|
$ | 7,228 | $ | 6,054 | $ | 1,174 | 19.4 |
|
·
|
it does not reflect capital expenditures;
|
|
·
|
the assets being depreciated and amortized will often have to be replaced in the future and adjusted OIBDA does not reflect cash requirements for such replacements;
|
|
·
|
it does not reflect costs associated with share-based awards exchanged for employee services;
|
|
·
|
it does not reflect interest expense necessary to service interest or principal payments on indebtedness;
|
|
·
|
it does not reflect expenses incurred for the payment of income taxes and other taxes; and
|
|
·
|
other companies, including companies in our industry, may calculate adjusted OIBDA differently than we do, limiting its usefulness as a comparative measure.
|
(in thousands)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
||||||||||||||||
Adjusted OIBDA
|
$ | 23,031 | $ | 20,426 | $ | 44,369 | $ | 40,328 |
(in thousands)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
|
|||||||||||||||
Operating income
|
$ | 7,994 | $ | 7,790 | $ | 15,085 | $ | 19,309 | ||||||||
Plus depreciation and amortization
|
14,444 | 8,483 | 28,382 | 16,724 | ||||||||||||
OIBDA
|
22,438 | 16,273 | 43,467 | 36,033 | ||||||||||||
Plus pension settlement and curtailment expense
|
- | 3,781 | - | 3,781 | ||||||||||||
Plus business acquisition expenses
|
- | 235 | - | 235 | ||||||||||||
Plus share based compensation expense
|
593 | 137 | 902 | 279 | ||||||||||||
Adjusted OIBDA
|
$ | 23,031 | $ | 20,426 | $ | 44,369 | $ | 40,328 |
(in thousands)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
|
|||||||||||||||
Operating income
|
$ | 10,352 | $ | 9,932 | $ | 20,427 | $ | 20,945 | ||||||||
Plus depreciation and amortization
|
6,140 | 5,286 | 12,374 | 10,525 | ||||||||||||
OIBDA
|
16,492 | 15,218 | 32,801 | 31,470 | ||||||||||||
Plus pension settlement and curtailment expense
|
- | 1,014 | - | 1,014 | ||||||||||||
Plus share based compensation expense
|
165 | 49 | 250 | 100 | ||||||||||||
Adjusted OIBDA
|
$ | 16,657 | $ | 16,281 | $ | 33,051 | $ | 32,584 |
(in thousands)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
|
|||||||||||||||
Operating income (loss)
|
$ | (4,923 | ) | $ | (3,701 | ) | $ | (10,643 | ) | $ | (5,703 | ) | ||||
Plus depreciation and amortization
|
6,088 | 1,195 | 11,786 | 2,199 | ||||||||||||
OIBDA
|
1,165 | (2,506 | ) | 1,143 | (3,504 | ) | ||||||||||
Plus pension settlement and curtailment expense
|
- | 597 | - | 597 | ||||||||||||
Plus business acquisition expenses
|
- | 235 | - | 235 | ||||||||||||
Plus share based compensation expense
|
220 | 27 | 335 | 56 | ||||||||||||
Adjusted OIBDA
|
$ | 1,385 | $ | (1,647 | ) | $ | 1,478 | $ | (2,616 | ) |
(in thousands)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
|
|||||||||||||||
Operating income
|
$ | 3,428 | $ | 2,594 | $ | 7,228 | $ | 6,054 | ||||||||
Plus depreciation and amortization
|
2,155 | 1,935 | 4,105 | 3,860 | ||||||||||||
OIBDA
|
5,583 | 4,529 | 11,333 | 9,914 | ||||||||||||
Plus pension settlement and curtailment expense
|
- | 1,960 | - | 1,960 | ||||||||||||
Plus business acquisition expenses
|
- | - | - | - | ||||||||||||
Plus share based compensation expense
|
132 | 38 | 200 | 78 | ||||||||||||
Adjusted OIBDA
|
$ | 5,715 | $ | 6,527 | $ | 11,533 | $ | 11,952 |
Actual
|
Covenant Requirement at
June 30, 2011
|
||||
Total Leverage Ratio
|
2.16 |
2.50 or Lower
|
|||
Debt Service Coverage Ratio
|
5.03 |
2.25 or Higher
|
|||
Equity to Assets Ratio
|
42.2 | % |
35.0% or Higher
|
||
Fixed Charge Coverage Ratio
|
0.86 |
0.80 or Higher
|
|||
Minimum Liquidity Balance
|
$ | 73.8M |
$15.0M or Higher
|
ITEM
3.
|
ITEM
4.
|
CONTROLS AND PROCEDURES
|
PART II.
|
OTHER INFORMATION
|
ITEM
1A.
|
Risk Factors
|
ITEM
2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Number of Shares
Purchased
|
Average Price Paid per Share
|
|||||||
April 1 to April 30
|
2 | $ | 18.11 | |||||
May 1 to May 31
|
2,580 | $ | 16.92 | |||||
June 1 to June 30
|
2,714 | $ | 17.81 | |||||
Total
|
5,296 | $ | 17.38 |
ITEM
6.
|
Exhibits
|
10.47
|
Second Amendment to the Credit Agreement dated as of July 30, 2010, among Shenandoah Telecommunications Company, CoBank, ACB, Branch Banking and Trust Company, Wells Fargo Bank, N.A., and other Lenders, filed as Exhibit 10.47 to the Company’s Current Report on Form 8-K dated April 29, 2011.
|
10.48
|
Third Amendment to the Credit Agreement dated as of July 30, 2010, among Shenandoah Telecommunications Company, CoBank, ACB, Branch Banking and Trust Company, Wells Fargo Bank, N.A., and other Lenders.
|
10.49
|
Letter Agreement modifying section 10.2.7.2 of Addendum X dated March 15, 2010 to Sprint PCS Management Agreement by and among Sprint Spectrum L.P., WirelessCo, L.P., APC PCS, LLC, PhillieCo, L.P., Sprint Communications Company L.P. and Shenandoah Personal Communications Company.
|
10.50
|
Fourth Amendment to the Credit Agreement dated as of July 30, 2010, among Shenandoah Telecommunications Company, CoBank, ACB, Branch Banking and Trust Company, Wells Fargo Bank, N.A., and other Lenders.
|
31.1
|
Certification of President and Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
|
31.2
|
Certification of Vice President - Finance and Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
|
32
|
Certifications pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. § 1350.
|
SHENANDOAH TELECOMMUNICATIONS COMPANY
|
||
(Registrant)
|
||
/s/Adele M. Skolits
|
||
Adele M. Skolits
|
||
Vice President - Finance and Chief Financial Officer
|
||
Date: August 8, 2011
|
ExhibitNo.
|
Exhibit
|
|
10.47
|
Second Amendment to the Credit Agreement dated as of July 30, 2010, among Shenandoah Telecommunications Company, CoBank, ACB, Branch Banking and Trust Company, Wells Fargo Bank, N.A., and other Lenders, filed as Exhibit 10.47 to the Company’s Current Report on Form 8-K dated April 29, 2011.
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Third Amendment to the Credit Agreement dated as of July 30, 2010, among Shenandoah Telecommunications Company, CoBank, ACB, Branch Banking and Trust Company, Wells Fargo Bank, N.A., and other Lenders.
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Letter Agreement modifying section 10.2.7.2 of Addendum X dated March 15, 2010 to Sprint PCS Management Agreement by and among Sprint Spectrum L.P., WirelessCo, L.P., APC PCS, LLC, PhillieCo, L.P., Sprint Communications Company L.P. and Shenandoah Personal Communications Company.
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Fourth Amendment to the Credit Agreement dated as of July 30, 2010, among Shenandoah Telecommunications Company, CoBank, ACB, Branch Banking and Trust Company, Wells Fargo Bank, N.A., and other Lenders.
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Certification of President and Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
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Certification of Vice President - Finance and Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
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Certifications pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. 1350.
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Sprint Nextel
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Jeff D. Hallock
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6480 Sprint Parkway
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VP, National Channels
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KSOPHMO510-5A275
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Overland Park, KS 66251
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Phone: (913) 735-1051 Fax 913-523-0021
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SPRINT SPECTRUM L.P. | |||
By: | /s/ Jeff Hallock | ||
Name: | Jeff Hallock | ||
Title: | VP, National Channels | ||
WIRELESSCO, L.P. | |||
By: | /s/ Jeff Hallock | ||
Name: | Jeff Hallock | ||
Title: | VP, National Channels | ||
APC PCS, LLC | |||
By: | /s/ Jeff Hallock | ||
Name: | Jeff Hallock | ||
Title: | VP, National Channels | ||
PHILLIECO, L.P. | |||
By: | /s/ Jeff Hallock | ||
Name: | Jeff Hallock | ||
Title: | VP, National Channels | ||
SPRINT COMMUNICATIONS COMPANY L.P. | |||
By: | /s/ Jeff Hallock | ||
Name: | Jeff Hallock | ||
Title: | VP, National Channels | ||
NEXTEL COMMUNICATIONS, INC. | |||
By: | /s/ Jeff Hallock | ||
Name: | Jeff Hallock | ||
Title: | VP, National Channels |
SHENANDOAH PERSONAL COMMUNICATIONS COMPANY | |||
By: | |||
Name: | |||
Title: |
1.
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I have reviewed this quarterly report on Form 10-Q of Shenandoah Telecommunications Company;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e
))
and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/S/ CHRISTOPHER E. FRENCH
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Christopher E. French, President and Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q of Shenandoah Telecommunications Company;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/S/CHRISTOPHER E. FRENCH
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Christopher E. French
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President and Chief Executive Officer
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August 8, 2011
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/
S/ADELE M. SKOLITS
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Adele M. Skolits
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Vice President - Finance and
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Chief Financial Officer
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August 8, 2011
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