• Shenandoah Telecommunications Company Reports Fourth Quarter and Full Year 2022 Results

    المصدر: Nasdaq GlobeNewswire / 22 فبراير 2023 07:00:02   America/New_York

    EDINBURG, Va., Feb. 22, 2023 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel”) (Nasdaq: SHEN) announced fourth quarter and full year 2022 financial and operating results.

    2022 Highlights for Continuing Operations

    • Glo Fiber data customers grew 113.5% year over year to approximately 24,000.
    • Glo Fiber passings grew by approximately 72,300, or 96.1%, to approximately 147,000.
    • Revenue grew 9.0% to $267.4 million.
    • Net loss in 2022 was $8.4 million, compared with net income of $7.9 million in 2021. The Company discontinued its Beam fixed wireless operations in 2022 and incurred $12.2 million in accelerated depreciation, impairment and restructuring charges.
    • Adjusted EBITDA grew 15.6% to $76.0 million.

    “We executed very well on our Glo Fiber business plan in 2022, more than doubling our customers and expanding our network passings 96%. Key operating metrics including cost to pass, customer satisfaction, and average revenue per user ("ARPU") met or exceeded plan,” said President and CEO, Christopher E. French. "As we continue to execute on our Fiber First growth plan, we are ramping up construction and sales to take advantage of the attractive market opportunity."

    Shentel's fourth-quarter earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, February 22, 2023. The webcast and related materials will be available on Shentel’s Investor Relations website at https://investor.shentel.com/.

    Full Year 2022 Results

    Broadband

    • Total Broadband Data Revenue Generating Units ("RGUs") grew 16,208, or 13.8%, in 2022 to 133,930. Glo Fiber Data RGUs grew 12,909, or 113.5%, year-over-year to 24,286 driven by network expansion of approximately 72,300 passings and churn of 1.1%. Incumbent Cable Data RGUs grew 3,299 to 109,644. Penetration for Incumbent Cable and Glo Fiber were 51.7% and 16.5%, respectively, as of December 31, 2022.
    • Broadband revenue grew $20.9 million, or 9.2%, to $249.0 million. Residential & SMB revenue increased approximately $16.4 million, or 9.3%, during 2022 primarily driven by 13.8% growth in data RGUs. Commercial Fiber revenue increased approximately $3.9 million or 11.2% during 2022 due to increased connections. Rural Local Exchange Carrier (RLEC) & Other revenue increased approximately $0.6 million, or 3.8%, compared with 2021.
    • Broadband operating expenses increased approximately $29.1 million, or 14.6%, to $228.3 million in 2022, compared with 2021, primarily due to $12.2 million in accelerated depreciation, impairment and restructuring charges due to cessation of Beam operations and services, $6.6 million in higher payroll costs due to additional employees and higher incentive costs, $2.5 million in higher advertising costs to support the expansion of Glo Fiber, $1.6 million in higher maintenance due to higher fuel, supplies, and contractor costs, $2.0 million in higher software related costs and professional fees resulting from operational system upgrades, and $1.7 million increases in bad debt and operating taxes.
    • Broadband operating income in 2022 was $20.7 million, compared with $28.8 million in 2021.
    • Broadband Adjusted EBITDA in 2022 grew 7.5% to $90.0 million, compared with $83.7 million in 2021.

    Tower

    • Total macro towers and tenants were 222 and 446, respectively, as of December 31, 2022 as compared with 223 and 485, respectively, as of December 31, 2021.
    • Revenue increased approximately $1.2 million, or 6.9%, in 2022 to $18.9 million compared with 2021. This increase was primarily driven by a 4.1% increase in average revenue per tenant.
    • Operating expenses increased approximately $0.7 million, or 8.3%, in 2022 compared with 2021, primarily driven by higher costs of service as a result of higher rent costs and higher depreciation.
    • Tower operating income in 2022 was $9.5 million, compared with $9.0 million in 2021.
    • Tower Adjusted EBITDA grew 7.7% to $11.9 million, compared with $11.1 million in 2021.

    Consolidated Fourth Quarter 2022 Results

    • Revenue in the fourth quarter of 2022 grew 11.8% to $70.0 million primarily due to growth of 11.4% in the Broadband segment and 18.0% in the Tower segment.
    • Loss from continuing operations in the fourth quarter of 2022 was $1.8 million, compared with loss from continuing operations of $3.1 million in the fourth quarter of 2021.
    • Adjusted EBITDA in the fourth quarter of 2022 increased $7.2 million, or 51.9%, to $21.0 million due to growth of 28.7% in the Broadband segment, 19.2% growth in the Tower segment and a 16.4% decline in in corporate expenses.

    Broadband

    • Broadband revenue in the fourth quarter of 2022 grew $6.7 million, or 11.4%, to $65.5 million compared with $58.8 million in the fourth quarter of 2021, primarily driven by $4.6 million or 10.1% increase in Residential and SMB revenue as a result of a 13.8% increase in broadband data RGUs and a $1.01 improvement for data ARPU. Commercial fiber grew 22.9% to $10.9 million from higher enterprise and backhaul connections. RLEC revenue grew 1.3% to $4.1 million due primarily to government support revenue.
    • Broadband operating expenses in the fourth quarter of 2022 were $61.9 million compared with $57.8 million in the fourth quarter of 2021. The increase was primarily due to $2.3 million in additional depreciation primarily attributable to Beam assets described above, $0.9 million in higher advertising to support the Glo Fiber expansion and $0.8 million in higher software development and professional fees as Shentel upgrades its information technology resources.
    • Broadband net income in the fourth quarter of 2022 was $3.5 million, compared with $0.9 million in the fourth quarter of 2021.
    • Broadband Adjusted EBITDA in the fourth quarter of 2022 grew 28.7% to $24.6 million, compared with $19.1 million for the fourth quarter of 2021.

    Tower

    • Tower revenue increased $0.7 million, or 18.0%, to $4.7 million due to higher average revenue recognized per tenant.
    • Tower net income in the fourth quarter of 2022 was $1.9 million, compared with $1.6 million for the fourth quarter of 2021.
    • Tower Adjusted EBITDA in the fourth quarter of 2022 grew 19.2% to $2.7 million, compared with $2.3 million for the fourth quarter of 2021.

    Other Information

    • Capital expenditures were $189.6 million for the year ended December 31, 2022 compared with $160.1 million in 2021. The $29.5 million increase in capital expenditures was primarily due to higher spending in the Broadband segment driven by the expansion of Glo Fiber.
    • The Company declared and paid a cash dividend of $0.08 per share in the fourth quarter 2022.
    • As of December 31, 2022, our cash and cash equivalents totaled $44.1 million and the availability under our delayed draw term loans and revolving line of credit was $325.0 million, for total available liquidity of $369.1 million. During 2022, we borrowed a total of $75.0 million under our term loans. We expect to draw the remaining $225.0 million in delay draw term loans by June 30, 2023.

    Conference Call and Webcast

    Date: Wednesday, February 22, 2023
    Time: 8:30 a.m. (ET)
    Dial in number: (800) 715-9871

    A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at http://investor.shentel.com/.

    A replay of the call will be available for a limited time on the Investor Relations page of the Company’s website.

    About Shenandoah Telecommunications

    Shentel provides broadband services through its high speed, state-of-the-art fiber-optic and cable networks to customers in the Mid-Atlantic United States. The Company's services include: broadband internet, video, and voice; fiber-optic Ethernet, wavelength and leasing; and tower colocation leasing. The Company owns an extensive regional network with over 8,300 route miles of fiber and over 220 macro cellular towers. For more information, please visit www.shentel.com.

    This release contains forward-looking statements about Shentel regarding, among other things, its business strategy, its prospects and its financial position. These statements can be identified by the use of forward-looking terminology such as “believes,” “estimates,” “expects,” “intends,” “may,” “will,” “should,” “could,” or “anticipates” or the negative or other variation of these or similar words, or by discussions of strategy or risks and uncertainties. The forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to Shentel’s beliefs and expectations as to future events and trends affecting its business that are necessarily subject to uncertainties, many of which are outside Shentel’s control. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as, a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved, and actual results may differ materially from those contained in or implied by the forward-looking statements as a result of various factors. A discussion of other factors that may cause actual results to differ from management’s projections, forecasts, estimates and expectations is available in Shentel’s filings with the Securities and Exchange Commission. Those factors may include natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as COVID-19, changes in general economic conditions including high inflation, increases in costs, changes in regulation and other competitive factors. The forward-looking statements included are made only as of the date of the statement. Shentel undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events, except as required by law.

    CONTACTS:
          Shenandoah Telecommunications Company
          Jim Volk
          Senior Vice President - Chief Financial Officer
          540-984-5168
          Jim.Volk@emp.shentel.com



    SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
    (in thousands, except per share amounts)
    (Figures for the quarters ended December 31, 2022 and 2021 are unaudited)

     Quarter Ended December 31,  Year Ended December 31,
      2022   2021   2022   2021 
    Service revenue and other$70,012  $62,604  $267,371  $245,239 
    Operating expenses:       
    Cost of services exclusive of depreciation and amortization 26,974   28,480   107,546   102,299 
    Selling, general and administrative 23,240   21,740   92,392   82,451 
    Restructuring expense 220   (94)  1,251   1,727 
    Impairment expense 357   5,887   5,241   5,986 
    Depreciation and amortization 21,891   14,492   68,899   55,206 
    Total operating expenses 72,682   70,505   275,329   247,669 
    Operating loss (2,670)  (7,901)  (7,958)  (2,430)
    Other (expense) income:       
    Other (expense) income, net 619   5,589   (1,348)  8,665 
    (Loss) income from continuing operations before income taxes (2,051)  (2,312)  (9,306)  6,235 
    Income tax expense (benefit) (228)  825   (927)  (1,694)
    Income (loss) from continuing operations (1,823)  (3,137)  (8,379)  7,929 
    Discontinued operations:       
    Income from discontinued operations, net of tax —   (4,965)  —   94,667 
    Gain on the sale of discontinued operations, net of tax —   9,503   —   896,235 
    Total income from discontinued operations, net of tax —   4,538   —   990,902 
    Net (loss) income$(1,823) $1,401  $(8,379) $998,831 
            
    Net (loss) income per share, basic and diluted:       
    Basic - (Loss) income from continuing operations$(0.04) $(0.06) $(0.17) $0.16 
    Basic - Income from discontinued operations, net of tax$—  $0.09  $—  $19.81 
    Basic net (loss) income per share$(0.04) $0.03  $(0.17) $19.97 
            
    Diluted - (Loss) income from continuing operations$(0.04) $(0.06) $(0.17) $0.16 
    Diluted - Income from discontinued operations, net of tax$—  $0.09  $—  $19.76 
    Diluted net (loss) income per share$(0.04) $0.03  $(0.17) $19.92 
            
    Weighted average shares outstanding, basic 50,194   50,046   50,155   50,026 
    Weighted average shares outstanding, diluted 50,194   50,046   50,155   50,149 



    SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS

    (in thousands) 2022   2021 
    ASSETS   
    Current assets:   
    Cash and cash equivalents$44,061  $84,344 
    Accounts receivable, net of allowance for doubtful accounts of $776 and $352, respectively 20,615   22,005 
    Income taxes receivable 29,755   30,188 
    Prepaid expenses and other 11,509   29,830 
    Current assets held for sale 22,622   — 
    Total current assets 128,562   166,367 
    Investments 12,971   13,661 
    Property, plant and equipment, net 687,553   554,162 
    Goodwill and intangible assets, net 81,515   89,831 
    Operating lease right-of-use assets 53,859   56,414 
    Deferred charges and other assets 13,259   10,298 
    Total assets$977,719  $890,733 
    LIABILITIES AND SHAREHOLDERS’ EQUITY   
    Current liabilities:   
    Current maturities of long-term debt, net of unamortized loan fees$648  $— 
    Accounts payable 49,173   28,542 
    Advanced billings and customer deposits 12,425   11,128 
    Accrued compensation 9,616   9,653 
    Current operating lease liabilities 2,829   3,318 
    Accrued liabilities and other 17,906   14,649 
    Current liabilities held for sale 3,824   — 
    Total current liabilities 96,421   67,290 
    Long-term debt, less current maturities, net of unamortized loan fees 74,306   — 
    Other long-term liabilities:   
    Deferred income taxes 84,600   86,014 
    Asset retirement obligations 9,932   9,615 
    Benefit plan obligations 3,758   8,216 
    Non-current operating lease liabilities 50,477   51,692 
    Other liabilities 20,218   25,631 
    Total other long-term liabilities 168,985   181,168 
    Commitments and contingencies (Note 13)   
    Shareholders’ equity:   
    Common stock, no par value, authorized 96,000; 50,110 and 49,965 issued and outstanding at December 31, 2022 and 2021, respectively —   — 
    Additional paid in capital 57,453   49,351 
    Retained earnings 580,554   592,924 
    Total shareholders’ equity 638,007   642,275 
    Total liabilities and shareholders’ equity$977,719  $890,733 



    SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES      
    CONSOLIDATED STATEMENTS OF CASH FLOWS

    (in thousands) 2022   2021   2020 
    Cash flows from operating activities:     
    Net (loss) income$(8,379) $998,831  $125,673 
    Income from discontinued operations, net of tax —   990,902   124,097 
    (Loss) income from continuing operations (8,379)  7,929   1,576 
    Adjustments to reconcile net income to net cash provided by operating activities:     
    Depreciation 68,175   54,389   47,964 
    Amortization 724   817   739 
    Accretion of asset retirement obligations 531   421   333 
    Bad debt expense 1,972   1,028   1,220 
    Stock-based compensation expense, net of amount capitalized 8,528   3,408   5,907 
    Deferred income taxes (1,414)  22,263   14,906 
    Restructuring expense 1,251   1,727   — 
    Impairment expense 5,241   5,986   — 
    Other, net (824)  481   (1,311)
    Changes in assets and liabilities:     
    Accounts receivable (583)  163   (7,318)
    Current income taxes 434   (25,149)  (15,896)
    Operating lease right-of-use assets 6,322   4,779   3,980 
    Other assets (451)  (7,005)  (2,505)
    Accounts payable 19   2,976   (663)
    Lease liabilities (5,471)  (4,333)  (3,067)
    Other deferrals and accruals (1,180)  (6,427)  7,494 
    Net cash provided by operating activities - continuing operations 74,895   63,453   53,359 
    Net cash (used in) provided by operating activities - discontinued operations —   (314,387)  249,508 
    Net cash provided by (used in) operating activities 74,895   (250,934)  302,867 
          
    Cash flows from investing activities:     
    Capital expenditures (189,609)  (160,101)  (120,450)
    Cash disbursed for acquisitions —   —   (1,890)
    Refund received (cash disbursed) for deposit on FCC spectrum leases 3,996   —   (16,118)
    Proceeds from sale of assets and other 1,434   366   370 
    Net cash used in investing activities - continuing operations (184,179)  (159,735)  (138,088)
    Net cash provided by (used in) investing activities - discontinued operations —   1,944,089   (17,500)
    Net cash (used in) provided by investing activities (184,179)  1,784,354   (155,588)
          
    Cash flows from financing activities:     
    Proceeds from term loan borrowings 75,000   —   — 
    Payments for debt issuance costs —   (841)  — 
    Dividends paid, net of dividends reinvested (3,991)  (940,256)  (16,424)
    Taxes paid for equity award issuances (1,076)  (1,627)  (2,217)
    Payments for financing arrangements and other (932)  (1,193)  (769)
    Net cash provided by (used in) financing activities - continuing operations 69,001   (943,917)  (19,410)
    Net cash used in financing activities - discontinued operations —   (700,556)  (34,123)
    Net cash provided by (used in) financing activities 69,001   (1,644,473)  (53,533)
    Net (decrease) increase in cash and cash equivalents (40,283)  (111,053)  93,746 
    Cash and cash equivalents, beginning of period 84,344   195,397   101,651 
    Cash and cash equivalents, end of period$44,061  $84,344  $195,397 



    Non-GAAP Financial Measures
    Adjusted EBITDA

    The Company defines Adjusted EBITDA as net income (loss) from continuing operations calculated in accordance with GAAP, adjusted for the impact of depreciation and amortization, impairment, other income (expense), net, interest income, interest expense, income tax expense (benefit), stock compensation expense, transaction costs related to acquisition and disposition events (including professional advisory fees, integration costs, and related compensatory matters), restructuring expense, tax on equity award vesting and exercise events, and other non-comparable items. A reconciliation of net income (loss) from continuing operations, which is the most directly comparable GAAP financial measure, to Adjusted EBITDA is provided below herein.

    Adjusted EBITDA margin is the Company’s calculation of Adjusted EBITDA, divided by revenue calculated in accordance with GAAP.

    The Company uses Adjusted EBITDA and Adjusted EBITDA margin as supplemental measures of performance to evaluate operating effectiveness and assess its ability to increase revenues while controlling expense growth and the scalability of the Company’s business growth strategy. Adjusted EBITDA is also a significant performance measure used by the Company in its incentive compensation programs. The Company believes that the exclusion of the expense and income items eliminated in calculating Adjusted EBITDA and Adjusted EBITDA margin provides management and investors a useful measure for period-to-period comparisons of the Company’s core operating results by excluding items that are not comparable across reporting periods or that do not otherwise relate to the Company’s ongoing operations. Accordingly, the Company believes that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating the Company’s operating results. However, use of Adjusted EBITDA and Adjusted EBITDA margin as analytical tools has limitations, and investors and others should not consider them in isolation or as substitutes for analysis of our financial results as reported under GAAP. In addition, other companies may calculate Adjusted EBITDA and Adjusted EBITDA margin or similarly titled measures differently, which may reduce their usefulness as comparative measures.

    Year Ended December 31, 2022        
    (in thousands) Broadband Tower Corporate &
    Eliminations    		 Consolidated
    Net income (loss) from continuing operations $20,467  $9,512  $(38,358) $(8,379)
    Depreciation and amortization  63,175   2,416   3,308   68,899 
    Impairment expense  5,241   —   —   5,241 
    Other expense (income), net  240   —   1,108   1,348 
    Income tax expense (benefit)  —   —   (927)  (927)
    Stock-based compensation  —   —   8,528   8,528 
    Restructuring charges and transaction related fees  849   —   402   1,251 
    Adjusted EBITDA $89,972  $11,928  $(25,939) $75,961 
             
    Adjusted EBITDA margin  36%  63%  N/A   28%


    Year Ended December 31, 2021        
    (in thousands) Broadband Tower Corporate &
    Eliminations    		 Consolidated
    Net income (loss) from continuing operations $28,571  $9,016  $(29,658) $7,929 
    Depreciation and amortization  47,937   2,053   5,216   55,206 
    Impairment expense  5,986   —   —   5,986 
    Other expense (income), net  261   —   (8,926)  (8,665)
    Income tax expense (benefit)  —   —   (1,694)  (1,694)
    Stock-based compensation  —   —   3,408   3,408 
    Restructuring charges and transaction related fees  924   6   2,626   3,556 
    Adjusted EBITDA $83,679  $11,075  $(29,028) $65,726 
             
    Adjusted EBITDA margin  37%  63%  N/A   27%


    Quarter Ended December 31, 2022        
    (in thousands) Broadband Tower Corporate &
    Eliminations    		 Consolidated
    Net income (loss) $3,546  $1,884  $(7,253) $(1,823)
    Depreciation and amortization  20,451   854   586   21,891 
    Impairment expense  357   —   —   357 
    Other expense (income), net  63   —   (682)  (619)
    Income tax expense (benefit)  —   —   (228)  (228)
    Stock-based compensation  —   —   1,229   1,229 
    Restructuring charges and transaction related fees  220   —   —   220 
    Adjusted EBITDA $24,637  $2,738  $(6,348) $21,027 
             
    Adjusted EBITDA margin  38%  58%  N/A   30%


    Quarter Ended December 31, 2021        
    (in thousands) Broadband Tower Corporate &
    Eliminations    		 Consolidated
    Net income (loss) $897  $1,643  $(5,677) $(3,137)
    Depreciation and amortization  12,289   655   1,548   14,492 
    Impairment expense  5,887   —   —   5,887 
    Other expense (income), net  70   (1)  (5,658)  (5,589)
    Income tax expense (benefit)  —   —   825   825 
    Stock-based compensation  —   —   1,455   1,455 
    Restructuring charges and transaction related fees  —   —   (87)  (87)
    Adjusted EBITDA $19,143  $2,297  $(7,594) $13,846 
             
    Adjusted EBITDA margin  33%  58%  N/A   22%



    Segment Results

    Year ended December 31, 2022:



    (in thousands)    		 Broadband Tower Corporate &
    Eliminations    		 Consolidated
    External revenue        
    Residential & SMB $193,974  $—  $—  $193,974 
    Commercial Fiber  38,821   —   —   38,821 
    RLEC & Other  16,035   —   —   16,035 
    Tower lease  —   18,541   —   18,541 
    Service revenue and other  248,830   18,541   —   267,371 
    Intercompany revenue and other  185   378   (563)  — 
    Total revenue  249,015   18,919   (563)  267,371 
    Operating expenses        
    Cost of services  102,267   5,712   (433)  107,546 
    Selling, general and administrative  56,776   1,279   34,337   92,392 
    Restructuring expense  849   —   402   1,251 
    Impairment expense  5,241   —   —   5,241 
    Depreciation and amortization  63,175   2,416   3,308   68,899 
    Total operating expenses  228,308   9,407   37,614   275,329 
    Operating income (loss) $20,707  $9,512  $(38,177) $(7,958)


    Year ended     December 31, 2021:

    (in thousands) Broadband Tower Corporate &
    Eliminations    		 Consolidated
    External revenue        
    Residential & SMB $177,530  $—  $—  $177,530 
    Commercial Fiber  30,842   —   —   30,842 
    RLEC & Other  15,249   —   —   15,249 
    Tower lease  —   12,393   —   12,393 
    Service revenue and other  223,621   12,393   —   236,014 
    Revenue for service provided to the discontinued Wireless operations  4,459   5,311   (545)  9,225 
    Total revenue  228,080   17,704   (545)  245,239 
    Operating expenses        
    Cost of services  97,283   5,438   (422)  102,299 
    Selling, general and administrative  47,840   1,197   33,414   82,451 
    Restructuring expense  202   —   1,525   1,727 
    Impairment expense  5,986   —   —   5,986 
    Depreciation and amortization  47,937   2,053   5,216   55,206 
    Total operating expenses  199,248   8,688   39,733   247,669 
    Operating income (loss) $28,832  $9,016  $(40,278) $(2,430)


    Quarter ended     December 31, 2022:



    (in thousands)    		 Broadband Tower Corporate &
    Eliminations    		 Consolidated
    External revenue        
    Residential & SMB $50,462  $—  $—  $50,462 
    Commercial Fiber  10,897   —   —   10,897 
    RLEC & Other  4,083   —   —   4,083 
    Tower lease  —   4,570   —   4,570 
    Service revenue and other  65,442   4,570   —   70,012 
    Intercompany revenue and other  61   123   (184)  — 
    Total revenue  65,503   4,693   (184)  70,012 
    Operating expenses        
    Cost of services  25,466   1,658   (150)  26,974 
    Selling, general and administrative  15,400   297   7,543   23,240 
    Restructuring expense  220   —   —   220 
    Impairment expense  357   —   —   357 
    Depreciation and amortization  20,451   854   586   21,891 
    Total operating expenses  61,894   2,809   7,979   72,682 
    Operating income (loss) $3,609  $1,884  $(8,163) $(2,670)


    Quarter ended     December 31, 2021:



    (in thousands)    		 Broadband Tower Corporate &
    Eliminations    		 Consolidated
    External revenue        
    Residential & SMB $45,828  $—  $—  $45,828 
    Commercial Fiber  8,867   —   —   8,867 
    RLEC & Other  4,041   —   —   4,041 
    Tower lease  —   3,868   —   3,868 
    Service revenue and other  58,736   3,868   —   62,604 
    Revenue for service provided to the discontinued Wireless operations  50   108   (158)  — 
    Total revenue  58,786   3,976   (158)  62,604 
    Operating expenses        
    Cost of services  27,233   1,368   (121)  28,480 
    Selling, general and administrative  12,411   311   9,018   21,740 
    Restructuring expense  (1)  —   (93)  (94)
    Impairment expense  5,887   —   —   5,887 
    Depreciation and amortization  12,289   655   1,548   14,492 
    Total operating expenses  57,819   2,334   10,352   70,505 
    Operating income (loss) $967  $1,642  $(10,510) $(7,901)



    Supplemental Information

    Broadband Operating Statistics

      December 31,
    2022    		 December 31,
    2021
    Broadband homes and businesses passed (1) 359,529  286,309 
    Incumbent Cable 212,050  211,120 
    Glo Fiber 147,479  75,189 
         
    Residential & SMB RGUs:    
    Broadband Data 133,930  117,722 
    Incumbent Cable 109,644  106,345 
    Glo Fiber 24,286  11,377 
    Video 46,975  49,945 
    Voice 39,951  34,513 
    Total Residential & SMB RGUs (excludes RLEC) 220,856  202,180 
         
    Residential & SMB Penetration (2)    
    Broadband Data 37.3% 41.1%
    Incumbent Cable 51.7% 50.4%
    Glo Fiber 16.5% 15.1%
    Video 13.1% 17.4%
    Voice 11.7% 12.8%
         
    Fiber route miles 8,346  7,392 
    Total fiber miles (3) 656,033  518,467 

    ______________________________________________________
    (1)   Homes and businesses are considered passed (“passings”) if we can connect them to our network without further extending the distribution system. Passings is an estimate based upon the best available information. Passings will vary among video, broadband data and voice services.
    (2)   Penetration is calculated by dividing the number of users by the number of passings or available homes, as appropriate.
    (3)   Total 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.


    Broadband - Residential and SMB ARPU        
      Quarter Ended December 31, Year Ended December 31,
       2022   2021   2022   2021 
    Residential and SMB Revenue:        
    Broadband Data $31,916  $27,741  $120,803  $104,434 
    Incumbent Cable  26,945   25,427   105,433   97,848 
    Glo Fiber  4,971   2,314   15,370   6,586 
    Video  14,558   15,202   60,023   61,856 
    Voice  3,079   2,932   12,030   11,692 
    Discounts and adjustments  909   (47)  1,118   (452)
    Total Revenue $50,462  $45,828  $193,974  $177,530 
             
    Average RGUs:        
    Broadband Data  132,123   116,277   125,484   110,631 
    Incumbent Cable  109,403   105,907   108,053   103,216 
    Glo Fiber  22,720   10,370   17,431   7,415 
    Video  47,571   50,400   48,654   51,368 
    Voice  39,910   34,561   38,217   34,068 
             
    ARPU:        
    Broadband Data $80.46  $79.45  $80.14  $78.62 
    Incumbent Cable $82.10  $80.03  $81.31  $79.00 
    Glo Fiber $72.93  $74.38  $73.48  $74.02 
    Video $102.01  $100.54  $102.80  $100.35 
    Voice $25.72  $28.28  $26.23  $28.60 

    (1)   Average Revenue Per Data RGU calculation = (Residential & SMB Revenue * 1,000) / average data RGUs / 12 months

    Tower Operating Statistics

      December 31,
    2022
    		 December 31,
    2021
    Macro tower sites 222  223 
    Tenants 446  485 
    Average tenants per tower 1.9  2.1 

     


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