Shenandoah Telecommunications Co (SHEN, Financial) filed Quarterly Report for the period ended 2010-09-30.
Shenandoah Telecommunications Co has a market cap of $454.2 million; its shares were traded at around $19.19 with a P/E ratio of 19.2 and P/S ratio of 2.9. The dividend yield of Shenandoah Telecommunications Co stocks is 1.7%. Shenandoah Telecommunications Co had an annual average earning growth of 16.2% over the past 10 years.SHEN is in the portfolios of Tweedy Browne of Tweedy Browne CO LLC.
On July 8, 2010, the Company acquired the right to receive a share of revenues from approximately 50,000 Virgin Mobile customers in our service area, and effective July 11, 2010, the Company began selling Virgin Mobile and Boost prepaid products and services. Based upon the initial subscriber base acquired, the Company expects to recognize approximately $0.9 million in monthly revenue and approximately $0.3 million in monthly expenses related to prepaid customers. The Company will also recognize amortization on the $6.9 million capitalized purchase price of the acquired contract for the 50,000 acquired Virgin Mobile subscribers. The amortization of the contract costs will approximate the life of the customers acquired, gradually decreasing over the expected four year life of this asset. In future periods, the Company expects to incur significant costs of acquisition (including handset subsidies, commissions, and other sales and marketing costs) in the month of a new customer activation. New customers are expected to generate net income over the course of their service. Due to expensing all costs of acquisition in the month of acquisition, the Company expects that the sale of prepaid products and services will have a net negative impact on operating results until the base of customers is sufficient such that the aggregate monthly revenue less recurring expenses exceeds the up-front costs for new activations.
For the three months ended September 30, 2010, operating revenues increased $13.0 million, or 32.5%, primarily due to $7.4 million of revenue associated with the JetBroadBand acquisition, $2.4 million of pre-paid wireless revenue, $2.6 million of additional on-going Wireless revenue and an incremental $0.6 million of revenue in the Cable segment. The increase in Wireless revenues included a one-time adjustment of $0.8 million related to re-calculated straight-line rent amounts adjusted during the third quarter of 2010. The remaining increases in Wireless and Cable revenues resulted primarily from increases in customers and services provided.
For the three months ended September 30, 2010, operating expenses increased $18.0 million, or 61.1%, compared to the 2009 period. The Cable Segment accounted for $12.7 million of this increase; the acquired JetBroadBand operations added approximately $10.3 million of incremental costs, while the existing Shentel Cable operations accounted for $3.6 million of the quarter over quarter increase. Included in the $10.3 million of incremental JetBroadBand-related operating expenses were approximately $3.0 million of one-time costs related to the acquisition. In the Wireless Segment, the new prepaid activities generated $4.1 million of incremental expenses, including approximately $1.5 million in handset subsidies, $1.1 million in amortization of the purchase price of the existing subscribers, and $1.4 million in pass-through costs from Sprint Nextel.
For the nine months ended September 30, 2010, operating revenues increased $16.6 million, or 13.8%, primarily due Cable Segment revenues associated with the acquired JetBroadBand operations, totaling $7.4 million in 2010, and to $2.4 million in Wireless Segment revenues associated with prepaid subscribers beginning July 1, 2010. Other Cable Segment revenues increased $0.9 million in 2010 over 2009, while other Wireless segment revenues increased $5.0 million. This increase in Wireless Segment revenues included a one-time adjustment of $0.8 million to straight-line rent computations for a small number of co-location leases. Wireline revenues included an adjustment of $1.0 million related to re-calculated settlements due from NECA recorded in the second quarter of 2010, including $0.7 million related to 2008 and 2009.
For the nine months ended September 30, 2010, operating expenses increased $26.0 million, or 30.2%, compared to the 2009 period. Expenses recognized in connection with the final settlement of the Company s defined benefit pension plan, and the curtailment loss associated with the Company s SERP plan, totaled $3.8 million during the second quarter of 2010. The incremental costs of the acquired JetBroadBand operations included within the Company s Cable segment totaled $10.9 million, including approximately $3.1 million of expenses associated with closing the transaction. Existing Shentel Cable operations accounted for $5.5 million of the year over year increase. Operating costs associated with prepaid wireless subscribers totaled $4.1 million as noted previously. All other operating expenses increased $1.7 million, net, in the first nine months of 2010, compared to the comparable 2009 period.
Read the The complete Report
Shenandoah Telecommunications Co has a market cap of $454.2 million; its shares were traded at around $19.19 with a P/E ratio of 19.2 and P/S ratio of 2.9. The dividend yield of Shenandoah Telecommunications Co stocks is 1.7%. Shenandoah Telecommunications Co had an annual average earning growth of 16.2% over the past 10 years.SHEN is in the portfolios of Tweedy Browne of Tweedy Browne CO LLC.
Highlight of Business Operations:
During the second quarter of 2010, the Company completed the settlement of its defined benefit pension plan following the receipt of a favorable tax determination letter in February, 2010. In order to complete the settlement, the Company contributed $977 thousand during June 2010 to fully fund the pension obligations, and recognized $3.6 million of pension expense from other comprehensive income. During the second quarter of 2010, the Company also curtailed future participation in the Company s SERP. Current participants may remain in the SERP and will continue to earn returns on invested balances, but the Company will make no further contributions to the SERP and no new participants will be eligible to join the SERP. As a result of the curtailment, the Company recognized a curtailment loss of $666 thousand, consisting of actuarial losses previously recorded in other comprehensive income.On July 8, 2010, the Company acquired the right to receive a share of revenues from approximately 50,000 Virgin Mobile customers in our service area, and effective July 11, 2010, the Company began selling Virgin Mobile and Boost prepaid products and services. Based upon the initial subscriber base acquired, the Company expects to recognize approximately $0.9 million in monthly revenue and approximately $0.3 million in monthly expenses related to prepaid customers. The Company will also recognize amortization on the $6.9 million capitalized purchase price of the acquired contract for the 50,000 acquired Virgin Mobile subscribers. The amortization of the contract costs will approximate the life of the customers acquired, gradually decreasing over the expected four year life of this asset. In future periods, the Company expects to incur significant costs of acquisition (including handset subsidies, commissions, and other sales and marketing costs) in the month of a new customer activation. New customers are expected to generate net income over the course of their service. Due to expensing all costs of acquisition in the month of acquisition, the Company expects that the sale of prepaid products and services will have a net negative impact on operating results until the base of customers is sufficient such that the aggregate monthly revenue less recurring expenses exceeds the up-front costs for new activations.
For the three months ended September 30, 2010, operating revenues increased $13.0 million, or 32.5%, primarily due to $7.4 million of revenue associated with the JetBroadBand acquisition, $2.4 million of pre-paid wireless revenue, $2.6 million of additional on-going Wireless revenue and an incremental $0.6 million of revenue in the Cable segment. The increase in Wireless revenues included a one-time adjustment of $0.8 million related to re-calculated straight-line rent amounts adjusted during the third quarter of 2010. The remaining increases in Wireless and Cable revenues resulted primarily from increases in customers and services provided.
For the three months ended September 30, 2010, operating expenses increased $18.0 million, or 61.1%, compared to the 2009 period. The Cable Segment accounted for $12.7 million of this increase; the acquired JetBroadBand operations added approximately $10.3 million of incremental costs, while the existing Shentel Cable operations accounted for $3.6 million of the quarter over quarter increase. Included in the $10.3 million of incremental JetBroadBand-related operating expenses were approximately $3.0 million of one-time costs related to the acquisition. In the Wireless Segment, the new prepaid activities generated $4.1 million of incremental expenses, including approximately $1.5 million in handset subsidies, $1.1 million in amortization of the purchase price of the existing subscribers, and $1.4 million in pass-through costs from Sprint Nextel.
For the nine months ended September 30, 2010, operating revenues increased $16.6 million, or 13.8%, primarily due Cable Segment revenues associated with the acquired JetBroadBand operations, totaling $7.4 million in 2010, and to $2.4 million in Wireless Segment revenues associated with prepaid subscribers beginning July 1, 2010. Other Cable Segment revenues increased $0.9 million in 2010 over 2009, while other Wireless segment revenues increased $5.0 million. This increase in Wireless Segment revenues included a one-time adjustment of $0.8 million to straight-line rent computations for a small number of co-location leases. Wireline revenues included an adjustment of $1.0 million related to re-calculated settlements due from NECA recorded in the second quarter of 2010, including $0.7 million related to 2008 and 2009.
For the nine months ended September 30, 2010, operating expenses increased $26.0 million, or 30.2%, compared to the 2009 period. Expenses recognized in connection with the final settlement of the Company s defined benefit pension plan, and the curtailment loss associated with the Company s SERP plan, totaled $3.8 million during the second quarter of 2010. The incremental costs of the acquired JetBroadBand operations included within the Company s Cable segment totaled $10.9 million, including approximately $3.1 million of expenses associated with closing the transaction. Existing Shentel Cable operations accounted for $5.5 million of the year over year increase. Operating costs associated with prepaid wireless subscribers totaled $4.1 million as noted previously. All other operating expenses increased $1.7 million, net, in the first nine months of 2010, compared to the comparable 2009 period.
Read the The complete Report
