Shenandoah Telecommunications Company Reports 87% Increase In Net Income For First Quarter 2013

EDINBURG, Va., May 3, 2013 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (Shentel) (Nasdaq:SHEN) announces financial and operating results for the three months ended March 31, 2013.

First Quarter 2013 Highlights

Highlights for the quarter include:
  • Revenue of $76.0 million, an increase of 10.4% from first quarter 2012
  • Net income from continuing operations of $8.4 million, up 90.0% from $4.4 million in first quarter of 2012
  • Net income of $8.4 million, up 87% from $4.5 million in the first quarter of 2012
  • Adjusted operating income before depreciation and amortization (adjusted OIBDA) of $29.6 million, up 11% from the first quarter of 2012
  • Net postpaid PCS customer additions of 1,065 and net prepaid customer additions of 6,227 in the first quarter
  • At March 31, 2013, the Company had 263,957 postpaid PCS customers and 134,404 prepaid customers, up 5.3% and 17.5%, respectively, from March 31, 2012
  • PCS Postpaid churn was 1.87% in the first quarter of 2013 compared to 1.86% in first quarter 2012. Prepaid churn was 3.87% in the first quarter of 2013 compared to 3.65% in first quarter 2012
  • Cable segment revenue generating units totaled 116,576 at March 31, 2013, a 2.3% increase since March 31, 2012 
  • As of March 31, 2013, the Company had upgraded 232 of its 521 cell sites to 4G LTE, covering 70% of our covered PCS POPs

President and CEO Christopher E. French commented, "Our first quarter results demonstrated significant improvement over the prior year period. Revenues and subscriber counts are increasing, while growth in operating expenses has slowed in recent periods. We are on track with deployment of 4G LTE service as part of Sprint Nextel's Network Vision project, and extending this service to 70% of our covered population."

Consolidated First Quarter Results

For the quarter ended March 31, 2013, net income from continuing operations was $8.4 million compared to $4.4 million in the first quarter of 2012. Operating income for the first quarter of 2013 was $15.2 million, up $6.4 million or 72% from the first quarter of 2012. Adjusted OIBDA (as defined below) increased to $29.6 million in the first quarter of 2013 from $26.7 million in the first quarter of 2012. 

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