Shenandoah Telecommunications Co. (NASDAQ:SHEN) Q3 2018 Earnings Conference Call Transcript

Nov 06, 2018 • 10:00 am ET

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Shenandoah Telecommunications Co. (NASDAQ:SHEN) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Shenandoah Telecommunications Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this call is being recorded.

I would now like to introduce a host for today's conference, John Nesbett of IMS and IR for Shentel. Please go ahead, sir.

Executive
Jennifer Belodeau

Good morning. We have Jen Belodeau for John. Good morning and thank you for joining us. The purpose of today's call is to review Shentel's results for the quarter ended September 30th, 2018. And our results were announced in a press release distributed this morning and a presentation we'll be reviewing is included on our Investor page at our website, www.shentel.com. Please note that an audio replay of the call will be made available later today. The details are set forth in the press release announcing this call.

With us on the call today are Chris French, President and CEO; Dave Heimbach, EVP and COO; and Jim Woodward, SVP, Finance and CFO. After our prepared remarks, we'll conduct a question-and-answer session.

(Forward-Looking Cautionary Statements)

Also, in an effort to provide useful information to investors, we note on slide 3 that our comments today include non-GAAP financial measures. Details on these measures, including why we use them, and reconciliations to the most comparable GAAP measures are included in our SEC filings. These reconciliations are also provided in an appendix to today's slide presentation.

I'll turn the call over to Chris now. Go ahead, Chris.

Executive
Christopher French

Thanks, Jen. Good morning, everyone. Thank you for joining us. Our third quarter results continue to build on our momentum from the first half of the year as evidenced by a solid revenue improvement, triple digit growth in operating income, enhanced net profitability and improved adjusted OIBDA performance.

Our focus throughout 2018 has been on operational execution, maximizing the competitive advantage provided by our state-of-the-art network and the strength of our expanded wireless territory, which now reaches a market of more than 7 million people. We continue to focus on achieving higher distribution and activation levels across the markets we serve. We are continuing to monitor progress on the proposed Sprint-T-Mobile merger. We're optimistic that our long-standing affiliate agreement with Sprint, position Shentel well for whatever outcome is reached. From a competitive standpoint, we believe a merger would be beneficial in establishing a stronger competitor against the much larger AT&T and Verizon.

Shentel has had a successful relationship with Sprint during the past 20 years, especially in our rural market build-out, and we would welcome the opportunity to continue to provide value to the new combined company. We look forward to more clarity as the future unfolds, but our current focus remains on continuing to grow our Wireless business while providing excellent coverage and service to our Sprint customers.

Moving to our results. On slide 5, you'll see that revenue increased to $158.7 million,