Shenandoah Telecommunications Company Reports Improved Operating Results And Growth In Customers For The Third Quarter 2010

EDINBURG, Va., Nov. 3, 2010 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (Shentel) (Nasdaq:SHEN) announces financial and operating results for the three months ended September 30, 2010.

Third Quarter 2010 Highlights

Highlights for the quarter include:

Consolidated

• Completed the acquisition of the cable operations of JetBroadBand Holdings, LLC ("JetBroadBand") for $148 million in cash less working capital adjustments. The acquired cable operations offer video, high speed Internet and voice services, representing approximately 66,000 revenue generating units in southern Virginia and southern West Virginia. The acquired networks pass approximately 115,000 homes. The purchase price was financed by a $198 million credit facility arranged by CoBank, ACB. The acquired cable operations' operating results have been included in the Company's Cable Television segment.
• Revenue of $53.1 million, an increase of 32% from third quarter 2009
• Net income from continuing operations of $4.2 million, compared to net income of $6.3 million in third quarter 2009
• Adjusted operating income before depreciation and amortization (adjusted OIBDA) of $21.1 million, an increase of $2.2 million from the third quarter of 2009
• Acquired the right to future net revenues related to approximately 50,000 existing Virgin Mobile customers and the right to offer Boost and Virgin Mobile services beginning July, 2010

Wireless

• 3,175 net post-paid additions of PCS customers
• 230,612 total post-paid PCS customers at quarter end, up 5.1% from September 30, 2009
• Post-paid churn was 1.88% compared to 2.17% in third quarter 2009
• 6,296 net pre-paid additions of PCS customers, excluding those purchased
• 56,203 total pre-paid PCS customers at quarter end
• Pre-paid churn was 5.02%

Cable

• Revenue generating units increased 4,083 during the third quarter of 2010, excluding the effect of the acquisition, compared to a decrease of 279 in the third quarter of 2009
• In October 2010, all acquired customers were transferred to the Company's billing platform

Wireline

• Sold the telephone directory for $4 million in cash

President and CEO Christopher E. French commented, "With the completion of the JetBroadBand acquisition and the initiation of pre-paid wireless activities, we are pleased that we quickly began to see gains in customers and revenues in these new markets. We also continue to see growth in our other markets, particularly in our PCS and existing cable businesses."