QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from__________ to __________ |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Title of Class) | (Trading Symbol) | (Name of Exchange on which Registered) | (The number of shares of the registrant's common stock outstanding on October 26, 2023) |
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company |
Page Numbers | ||||||||||||||
PART I. | FINANCIAL INFORMATION | |||||||||||||
Item 1. | Financial Statements | |||||||||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||||||||||
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||||
Unaudited Condensed Consolidated Statements of Shareholders’ Equity | ||||||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||||||||
Notes to Unaudited Condensed Consolidated Financial Statements | ||||||||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||||||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | |||||||||||||
Item 4. | Controls and Procedures | |||||||||||||
PART II. | OTHER INFORMATION | |||||||||||||
Item 1. | Legal Proceedings | |||||||||||||
Item 1A. | Risk Factors | |||||||||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||||||||
Item 5. | Other Information | |||||||||||||
Item 6. | Exhibits | |||||||||||||
Signatures | ||||||||||||||
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowance for doubtful accounts of $ | |||||||||||
Income taxes receivable | |||||||||||
Prepaid expenses and other | |||||||||||
Current assets held for sale | |||||||||||
Total current assets | |||||||||||
Investments | |||||||||||
Property, plant and equipment, net | |||||||||||
Goodwill and intangible assets, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Deferred charges and other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current maturities of long-term debt, net of unamortized loan fees | $ | $ | |||||||||
Accounts payable | |||||||||||
Advanced billings and customer deposits | |||||||||||
Accrued compensation | |||||||||||
Current operating lease liabilities | |||||||||||
Accrued liabilities and other | |||||||||||
Current liabilities held for sale | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, less current maturities, net of unamortized loan fees | |||||||||||
Other long-term liabilities: | |||||||||||
Deferred income taxes | |||||||||||
Asset retirement obligations | |||||||||||
Benefit plan obligations | |||||||||||
Non-current operating lease liabilities | |||||||||||
Other liabilities | |||||||||||
Total other long-term liabilities | |||||||||||
Commitments and contingencies (Note 13) | |||||||||||
Shareholders’ equity: | |||||||||||
Common stock, | |||||||||||
Additional paid in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income, net of taxes | |||||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||
(in thousands, except per share amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of services exclusive of depreciation and amortization | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Restructuring expense | |||||||||||||||||||||||
Impairment expense | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income (loss) | ( | ( | |||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Other income (expense), net | ( | ( | |||||||||||||||||||||
Income (loss) before income taxes | ( | ( | |||||||||||||||||||||
Income tax expense (benefit) | ( | ( | |||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Unrealized income on interest rate hedge, net of tax | |||||||||||||||||||||||
Comprehensive income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Net income (loss) per share, basic and diluted: | |||||||||||||||||||||||
Basic net income (loss) per share | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Diluted net income (loss) per share | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Weighted average shares outstanding, basic | |||||||||||||||||||||||
Weighted average shares outstanding, diluted | |||||||||||||||||||||||
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Shares of Common Stock (no par value) | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | ||||||||||||||||||||||||||||||
Common stock issued | — | — | — | |||||||||||||||||||||||||||||
Unrealized income on interest rate hedge, net of tax | — | — | — | |||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Shares of Common Stock (no par value) | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | ||||||||||||||||||||||||||||||
Common stock issued | — | — | ||||||||||||||||||||||||||||||
Shares surrendered for settlement of employee taxes upon issuance of vested equity awards | ( | ( | — | — | ( | |||||||||||||||||||||||||||
Unrealized income on interest rate hedge, net of tax | — | — | — | |||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Shares of Common Stock (no par value) | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Net loss | — | — | ( | — | ( | |||||||||||||||||||||||||||
Stock-based compensation | — | — | ||||||||||||||||||||||||||||||
Common stock issued | — | — | — | |||||||||||||||||||||||||||||
Shares surrendered for settlement of employee taxes upon issuance of vested equity awards | ( | ( | — | — | ( | |||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Shares of Common Stock (no par value) | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Net loss | — | — | ( | — | ( | |||||||||||||||||||||||||||
Stock-based compensation | — | — | ||||||||||||||||||||||||||||||
Common stock issued | — | — | ||||||||||||||||||||||||||||||
Shares surrendered for settlement of employee taxes upon issuance of vested equity awards | ( | ( | — | — | ( | |||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ |
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES | |||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(in thousands) | Nine Months Ended September 30, | ||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation expense, net of amount capitalized | |||||||||||
Impairment expense | |||||||||||
Deferred income taxes | ( | ||||||||||
Bad debt expense | |||||||||||
Gain on sale of FCC spectrum licenses | ( | ||||||||||
Other, net | |||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Current income taxes | |||||||||||
Operating lease assets and liabilities, net | |||||||||||
Other assets | ( | ||||||||||
Accounts payable | ( | ( | |||||||||
Other deferrals and accruals | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from the sale of FCC spectrum licenses | |||||||||||
Proceeds from sale of investments | |||||||||||
Proceeds from sale of assets and other | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from credit facility borrowings | |||||||||||
Payments for debt issuance costs | ( | ||||||||||
Taxes paid for equity award issuances | ( | ( | |||||||||
Payments for financing arrangements and other | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Supplemental Disclosures of Cash Flow Information | |||||||||||
Interest paid | $ | $ | |||||||||
Income tax refunds received, net | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Beginning Balance | $ | $ | $ | $ | |||||||||||||||||||
Commission payments | |||||||||||||||||||||||
Contract asset amortization | ( | ( | ( | ( | |||||||||||||||||||
Ending Balance | $ | $ | $ | $ |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
SERP investments at fair value | $ | $ | |||||||||
Cost method investments | |||||||||||
Equity method investments | |||||||||||
Total investments | $ | $ |
($ in thousands) | Estimated Useful Lives | September 30, 2023 | December 31, 2022 | ||||||||||||||
Land | $ | $ | |||||||||||||||
Land improvements | |||||||||||||||||
Buildings and structures | |||||||||||||||||
Cable and fiber | |||||||||||||||||
Equipment and software | |||||||||||||||||
Plant in service | |||||||||||||||||
Plant under construction | |||||||||||||||||
Total property, plant and equipment | |||||||||||||||||
Less: accumulated depreciation and amortization | ( | ( | |||||||||||||||
Property, plant and equipment, net | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization and Other | Net | Gross Carrying Amount | Accumulated Amortization and Other | Net | |||||||||||||||||||||||||||||
Goodwill - Broadband | $ | $ | — | $ | $ | $ | — | $ | |||||||||||||||||||||||||||
Indefinite-lived intangibles: | |||||||||||||||||||||||||||||||||||
Cable franchise rights | — | — | |||||||||||||||||||||||||||||||||
FCC Spectrum licenses | — | — | |||||||||||||||||||||||||||||||||
Railroad crossing rights | — | — | |||||||||||||||||||||||||||||||||
Total indefinite-lived intangibles | — | — | |||||||||||||||||||||||||||||||||
Finite-lived intangibles: | |||||||||||||||||||||||||||||||||||
Subscriber relationships | ( | ( | |||||||||||||||||||||||||||||||||
Other intangibles | ( | ( | |||||||||||||||||||||||||||||||||
Total finite-lived intangibles | ( | ( | |||||||||||||||||||||||||||||||||
Total goodwill and intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Prepaid maintenance expenses | $ | $ | |||||||||
Broadband contract acquisition costs | |||||||||||
Interest rate swaps | |||||||||||
Other | |||||||||||
Prepaid expenses and other | $ | $ |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Broadband contract acquisition costs | $ | $ | |||||||||
Interest rate swaps | |||||||||||
Prepaid expenses and other | |||||||||||
Deferred charges and other assets | $ | $ |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Accrued programming costs | $ | $ | |||||||||
Pension plan | |||||||||||
Other current liabilities | |||||||||||
Accrued liabilities and other | $ | $ |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Noncurrent portion of deferred lease revenue | $ | $ | |||||||||
Noncurrent portion of financing leases | |||||||||||
Other | |||||||||||
Other liabilities | $ | $ |
Classification | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Finance lease cost | |||||||||||||||||||||||||||||
Amortization of leased assets | Depreciation | $ | $ | $ | $ | ||||||||||||||||||||||||
Interest on lease liabilities | Interest expense | ||||||||||||||||||||||||||||
Operating lease cost | Operating expense1 | ||||||||||||||||||||||||||||
Lease cost | $ | $ | $ | $ |
(in thousands) | Operating Leases | Finance Leases | Total | |||||||||||||||||
2023 | $ | $ | $ | |||||||||||||||||
2024 | ||||||||||||||||||||
2025 | ||||||||||||||||||||
2026 | ||||||||||||||||||||
2027 | ||||||||||||||||||||
2028 and thereafter | ||||||||||||||||||||
Total lease payments | ||||||||||||||||||||
Less: Interest | ( | ( | ( | |||||||||||||||||
Present value of lease liabilities | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Operating leases | |||||||||||
Weighted average remaining lease term (years) | |||||||||||
Weighted average discount rate | % | % | |||||||||
Finance leases | |||||||||||
Weighted average remaining lease term (years) | |||||||||||
Weighted average discount rate | % | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Cash paid for operating lease liabilities | $ | $ | $ | $ | |||||||||||||||||||
Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases) |
(in thousands) | Operating Leases | |||||||
2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 and thereafter | ||||||||
Total | $ |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Term loan A-1 | $ | $ | |||||||||
Term loan A-2 | |||||||||||
Total debt | |||||||||||
Less: unamortized loan fees | ( | ( | |||||||||
Total debt, net of unamortized loan fees | $ | $ |
(in thousands) | Amount | |||||||
2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Total | $ |
(in thousands) | September 30, 2023 | ||||||||||
Balance sheet line item of derivative financial instruments: | |||||||||||
Prepaid expenses and other | $ | ||||||||||
Deferred charges and other assets | |||||||||||
Total derivatives designated as hedging instruments | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Expected tax expense (benefit) at federal statutory | $ | $ | ( | $ | $ | ( | |||||||||||||||||
State income tax expense (benefit), net of federal tax effect | ( | ( | |||||||||||||||||||||
Revaluation of deferred tax liabilities | ( | ( | |||||||||||||||||||||
Excess tax deficiency from share-based compensation and other expense, net | |||||||||||||||||||||||
Income tax expense (benefit) | $ | $ | ( | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Stock compensation expense | |||||||||||||||||||||||
Capitalized stock compensation | ( | ( | ( | ( | |||||||||||||||||||
Stock compensation expense, net | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Calculation of net income (loss) per share: | |||||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Basic weighted average shares outstanding | |||||||||||||||||||||||
Basic net income (loss) per share | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Effect of stock-based compensation awards outstanding: | |||||||||||||||||||||||
Basic weighted average shares outstanding | |||||||||||||||||||||||
Effect from dilutive shares and options outstanding | |||||||||||||||||||||||
Diluted weighted average shares outstanding | |||||||||||||||||||||||
Diluted net income (loss) per share | $ | $ | ( | $ | $ | ( |
(in thousands) | Broadband | Tower | Corporate & Eliminations | Consolidated | |||||||||||||||||||
External revenue | |||||||||||||||||||||||
Residential & SMB - Cable Markets | $ | $ | $ | — | $ | ||||||||||||||||||
Residential & SMB - Glo Fiber Markets | — | ||||||||||||||||||||||
Commercial Fiber | — | ||||||||||||||||||||||
Tower lease | — | ||||||||||||||||||||||
RLEC & Other | — | ||||||||||||||||||||||
Service revenue and other | — | ||||||||||||||||||||||
Intercompany revenue and other | ( | ||||||||||||||||||||||
Total revenue | ( | ||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Cost of services | ( | ||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Impairment expense | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income (loss) | $ | $ | $ | ( | $ |
(in thousands) | Broadband | Tower | Corporate & Eliminations | Consolidated | |||||||||||||||||||
External revenue | |||||||||||||||||||||||
Residential & SMB - Cable Markets | $ | $ | $ | — | $ | ||||||||||||||||||
Residential & SMB - Glo Fiber Markets | — | ||||||||||||||||||||||
Commercial Fiber | — | ||||||||||||||||||||||
Tower lease | — | ||||||||||||||||||||||
RLEC & Other | — | ||||||||||||||||||||||
Service revenue and other | — | ||||||||||||||||||||||
Intercompany revenue and other | ( | ( | |||||||||||||||||||||
Total revenue | ( | ||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Cost of services | ( | ||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Restructuring expense | |||||||||||||||||||||||
Impairment expense | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income (loss) | $ | $ | $ | ( | $ | ( |
(in thousands) | Broadband | Tower | Corporate & Eliminations | Consolidated | |||||||||||||||||||
External revenue | |||||||||||||||||||||||
Residential & SMB - Cable Markets | $ | $ | $ | — | $ | ||||||||||||||||||
Residential & SMB - Glo Fiber Markets | — | ||||||||||||||||||||||
Commercial Fiber | — | ||||||||||||||||||||||
Tower lease | — | ||||||||||||||||||||||
RLEC & Other | — | ||||||||||||||||||||||
Service revenue and other | — | ||||||||||||||||||||||
Intercompany revenue and other | ( | ||||||||||||||||||||||
Total revenue | ( | ||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Cost of services | ( | ||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Impairment expense | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income (loss) | $ | $ | $ | ( | $ |
(in thousands) | Broadband | Tower | Corporate & Eliminations | Consolidated | |||||||||||||||||||
External revenue | |||||||||||||||||||||||
Residential & SMB - Cable Markets | $ | $ | $ | — | $ | ||||||||||||||||||
Residential & SMB - Glo Fiber Markets | — | ||||||||||||||||||||||
Commercial Fiber | — | ||||||||||||||||||||||
Tower lease | — | ||||||||||||||||||||||
RLEC & Other | — | ||||||||||||||||||||||
Service revenue and other | — | ||||||||||||||||||||||
Intercompany revenue and other | ( | ||||||||||||||||||||||
Total revenue | ( | ||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Cost of services | ( | ||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Restructuring expense | |||||||||||||||||||||||
Impairment expense | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income (loss) | $ | $ | $ | ( | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Total consolidated operating income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Other income (expense), net | ( | ( | |||||||||||||||||||||
Income (loss) before income taxes | $ | $ | ( | $ | $ | ( |
Three Months Ended September 30, | Change | |||||||||||||||||||||||||||||||
($ in thousands) | 2023 | % of Revenue | 2022 | % of Revenue | $ | % | ||||||||||||||||||||||||||
Revenue | $ | 71,842 | 100.0 | $ | 66,924 | 100.0 | 4,918 | 7.3 | ||||||||||||||||||||||||
Operating expenses | 70,355 | 97.9 | 68,695 | 102.6 | 1,660 | 2.4 | ||||||||||||||||||||||||||
Operating income (loss) | 1,487 | 2.1 | (1,771) | (2.6) | 3,258 | 184.0 | ||||||||||||||||||||||||||
Other income (expense), net | 826 | 1.1 | (1,208) | (1.8) | 2,034 | (168.4) | ||||||||||||||||||||||||||
Income (loss) before income taxes | 2,313 | 3.2 | (2,979) | (4.5) | 5,292 | 177.6 | ||||||||||||||||||||||||||
Income tax expense | 720 | 1.0 | (251) | (0.4) | 971 | 386.9 | ||||||||||||||||||||||||||
Net income (loss) | $ | 1,593 | 2.2 | $ | (2,728) | (4.1) | 4,321 | (158.4) |
Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||
($ in thousands) | 2023 | % of Revenue | 2022 | % of Revenue | $ | % | ||||||||||||||||||||||||||
Revenue | $ | 214,869 | 100.0 | $ | 197,359 | 100.0 | 17,510 | 8.9 | ||||||||||||||||||||||||
Operating expenses | 208,285 | 96.9 | 202,647 | 102.7 | 5,638 | 2.8 | ||||||||||||||||||||||||||
Operating income (loss) | 6,584 | 3.1 | (5,288) | (2.7) | 11,872 | (224.5) | ||||||||||||||||||||||||||
Other income (expense), net | 2,120 | 1.0 | (1,967) | (1.0) | 4,087 | (207.8) | ||||||||||||||||||||||||||
Income (loss) before income taxes | 8,704 | 4.1 | (7,255) | (3.7) | 15,959 | (220.0) | ||||||||||||||||||||||||||
Income tax expense | 3,255 | 1.5 | (699) | (0.4) | 3,954 | 565.7 | ||||||||||||||||||||||||||
Net income (loss) | $ | 5,449 | 2.5 | $ | (6,556) | (3.3) | 12,005 | (183.1) |
September 30, 2023 | September 30, 2022 | |||||||||||||
Broadband homes and businesses passed (1) | 415,971 | 342,741 | ||||||||||||
Cable Markets | 213,317 | 211,829 | ||||||||||||
Glo Fiber Markets | 202,654 | 130,912 | ||||||||||||
Residential & Small and Medium Business ("SMB") Revenue Generating Units ("RGUs"): | ||||||||||||||
Broadband Data | 146,797 | 130,238 | ||||||||||||
Cable Markets | 109,404 | 109,132 | ||||||||||||
Glo Fiber Markets | 37,393 | 21,106 | ||||||||||||
Video | 44,050 | 48,092 | ||||||||||||
Voice | 40,699 | 39,801 | ||||||||||||
Total Residential & SMB RGUs (excludes RLEC) | 231,546 | 218,131 | ||||||||||||
Residential & SMB Penetration (2) | ||||||||||||||
Broadband Data | 35.3 | % | 38.0 | % | ||||||||||
Cable Markets | 51.3 | % | 51.5 | % | ||||||||||
Glo Fiber Markets | 18.5 | % | 16.1 | % | ||||||||||
Video | 10.6 | % | 14.0 | % | ||||||||||
Voice | 10.2 | % | 12.2 | % | ||||||||||
Residential & SMB Average Revenue per User ("ARPU") (3) | ||||||||||||||
Broadband Data | $ | 80.95 | $ | 80.05 | ||||||||||
Cable Markets | $ | 82.22 | $ | 81.43 | ||||||||||
Glo Fiber Markets | $ | 77.00 | $ | 72.75 | ||||||||||
Video | $ | 105.72 | $ | 102.59 | ||||||||||
Voice | $ | 25.14 | $ | 25.56 | ||||||||||
Fiber route miles | 9,387 | 8,072 | ||||||||||||
Total fiber miles (4) | 813,273 | 622,095 |
Three Months Ended September 30, | Change | |||||||||||||||||||||||||||||||
($ in thousands) | 2023 | % of Revenue | 2022 | % of Revenue | $ | % | ||||||||||||||||||||||||||
Broadband operating revenue | ||||||||||||||||||||||||||||||||
Residential & SMB - Cable Markets (1) | $ | 43,679 | 64.8 | $ | 43,805 | 70.2 | (126) | (0.3) | ||||||||||||||||||||||||
Residential & SMB - Glo Fiber Markets (1) | 9,325 | 13.8 | 4,895 | 7.8 | 4,430 | 90.5 | ||||||||||||||||||||||||||
Commercial Fiber | 10,418 | 15.4 | 9,523 | 15.3 | 895 | 9.4 | ||||||||||||||||||||||||||
RLEC & Other | 4,027 | 6.0 | 4,163 | 6.7 | (136) | (3.3) | ||||||||||||||||||||||||||
Total broadband revenue | 67,449 | 100.0 | 62,386 | 100.0 | 5,063 | 8.1 | ||||||||||||||||||||||||||
Broadband operating expenses | ||||||||||||||||||||||||||||||||
Cost of services | 26,266 | 38.9 | 26,193 | 42.0 | 73 | 0.3 | ||||||||||||||||||||||||||
Selling, general, and administrative | 14,615 | 21.7 | 13,946 | 22.4 | 669 | 4.8 | ||||||||||||||||||||||||||
Restructuring expense | — | — | 169 | 0.3 | (169) | (100.0) | ||||||||||||||||||||||||||
Impairment expense | 1,532 | 2.3 | 477 | 0.8 | 1,055 | 221.2 | ||||||||||||||||||||||||||
Depreciation and amortization | 15,729 | 23.3 | 16,791 | 26.9 | (1,062) | (6.3) | ||||||||||||||||||||||||||
Total broadband operating expenses | 58,142 | 86.2 | 57,576 | 92.3 | 566 | 1.0 | ||||||||||||||||||||||||||
Broadband operating income | $ | 9,307 | 13.8 | $ | 4,810 | 7.7 | 4,497 | 93.5 |
Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||
($ in thousands) | 2023 | % of Revenue | 2022 | % of Revenue | $ | % | ||||||||||||||||||||||||||
Broadband operating revenue | ||||||||||||||||||||||||||||||||
Residential & SMB - Cable Markets (1) | $ | 132,838 | 66.0 | $ | 131,141 | 71.5 | 1,697 | 1.3 | ||||||||||||||||||||||||
Residential & SMB - Glo Fiber Markets (1) | 24,492 | 12.2 | 12,371 | 6.7 | 12,121 | 98.0 | ||||||||||||||||||||||||||
Commercial Fiber | 32,373 | 16.1 | 27,930 | 15.2 | 4,443 | 15.9 | ||||||||||||||||||||||||||
RLEC & Other | 11,626 | 5.8 | 12,070 | 6.6 | (444) | (3.7) | ||||||||||||||||||||||||||
Total broadband revenue | 201,329 | 100.0 | 183,512 | 100.0 | 17,817 | 9.7 | ||||||||||||||||||||||||||
Broadband operating expenses | ||||||||||||||||||||||||||||||||
Cost of services | 76,447 | 38.0 | 76,801 | 41.9 | (354) | (0.5) | ||||||||||||||||||||||||||
Selling, general, and administrative | 46,110 | 22.9 | 41,376 | 22.5 | 4,734 | 11.4 | ||||||||||||||||||||||||||
Restructuring expense | — | — | 629 | 0.3 | (629) | (100.0) | ||||||||||||||||||||||||||
Impairment expense | 2,552 | 1.3 | 4,884 | 2.7 | (2,332) | (47.7) | ||||||||||||||||||||||||||
Depreciation and amortization | 45,902 | 22.8 | 42,724 | 23.3 | 3,178 | 7.4 | ||||||||||||||||||||||||||
Total broadband operating expenses | 171,011 | 84.9 | 166,414 | 90.7 | 4,597 | 2.8 | ||||||||||||||||||||||||||
Broadband operating income | $ | 30,318 | 15.1 | $ | 17,098 | 9.3 | 13,220 | 77.3 |
September 30, 2023 | September 30, 2022 | |||||||||||||
Macro tower sites | 220 | 222 | ||||||||||||
Tenants | 446 | 457 | ||||||||||||
Average tenants per tower | 2.0 | 2.0 |
Three Months Ended September 30, | Change | |||||||||||||||||||||||||||||||
($ in thousands) | 2023 | % of Revenue | 2022 | % of Revenue | $ | % | ||||||||||||||||||||||||||
Tower revenue | $ | 4,644 | 100.0 | $ | 4,677 | 100.0 | (33) | (0.7) | ||||||||||||||||||||||||
Tower operating expenses | 2,547 | 54.8 | 2,087 | 44.6 | 460 | 22.0 | ||||||||||||||||||||||||||
Tower operating income | $ | 2,097 | 45.2 | $ | 2,590 | 55.4 | (493) | (19.0) |
Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||
($ in thousands) | 2023 | % of Revenue | 2022 | % of Revenue | $ | % | ||||||||||||||||||||||||||
Tower revenue | $ | 13,973 | 100.0 | $ | 14,226 | 100.0 | (253) | (1.8) | ||||||||||||||||||||||||
Tower operating expenses | 6,968 | 49.9 | 6,598 | 46.4 | 370 | 5.6 | ||||||||||||||||||||||||||
Tower operating income | $ | 7,005 | 50.1 | $ | 7,628 | 53.6 | (623) | (8.2) |
(in thousands, except per share amounts) | Number of Shares Surrendered | Average Price Paid per Share | |||||||||
July 1 to July 31 | — | $— | |||||||||
August 1 to August 31 | — | $— | |||||||||
September 1 to September 30 | — | $— | |||||||||
Total | — |
Exhibit No. | Exhibit Description | ||||||||||
31.1* | Certification of Principal Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | ||||||||||
31.2* | Certification of Principal Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | ||||||||||
31.3* | Certification of Principal Accounting Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | ||||||||||
32** | Certifications pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. § 1350. | ||||||||||
(101) | Formatted in Inline XBRL (Extensible Business Reporting Language) | ||||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document | ||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SHENANDOAH TELECOMMUNICATIONS COMPANY | |||||
/s/ James J. Volk | |||||
James J. Volk | |||||
Senior Vice President and Chief Financial Officer (Principal Financial Officer) | |||||
Date: November 3, 2023 |
/S/CHRISTOPHER E. FRENCH | |||||
Christopher E. French | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
November 3, 2023 | |||||
/S/JAMES J. VOLK | |||||
James J. Volk | |||||
Senior Vice President – Chief Financial Officer | |||||
(Principal Financial Officer) | |||||
November 3, 2023 |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 767 | $ 776 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 96,000 | 96,000 |
Common stock, shares issued (in shares) | 50,264 | 50,110 |
Common stock, shares, outstanding (in shares) | 50,264 | 50,110 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenues: | ||||
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Service revenue and other [Member] | Service revenue and other [Member] | Service revenue and other [Member] | Service revenue and other [Member] |
Service revenue and other | $ 71,842 | $ 66,924 | $ 214,869 | $ 197,359 |
Operating expenses: | ||||
Cost of services exclusive of depreciation and amortization | 27,751 | 27,477 | 80,394 | 80,572 |
Selling, general and administrative | 24,402 | 22,227 | 76,702 | 69,152 |
Restructuring expense | 0 | 641 | 0 | 1,031 |
Impairment expense | 1,532 | 477 | 2,552 | 4,884 |
Depreciation and amortization | 16,670 | 17,873 | 48,637 | 47,008 |
Total operating expenses | 70,355 | 68,695 | 208,285 | 202,647 |
Operating income (loss) | 1,487 | (1,771) | 6,584 | (5,288) |
Other income (expense): | ||||
Other income (expense), net | 826 | (1,208) | 2,120 | (1,967) |
Income (loss) before income taxes | 2,313 | (2,979) | 8,704 | (7,255) |
Income tax expense (benefit) | 720 | (251) | 3,255 | (699) |
Net income (loss) | 1,593 | (2,728) | 5,449 | (6,556) |
Other comprehensive income: | ||||
Unrealized income on interest rate hedge, net of tax | 1,115 | 0 | 3,242 | 0 |
Comprehensive income (loss) | $ 2,708 | $ (2,728) | $ 8,691 | $ (6,556) |
Net income (loss) per share, basic and diluted: | ||||
Basic net income (loss) per share (in dollars per share) | $ 0.03 | $ (0.05) | $ 0.11 | $ (0.13) |
Diluted net income (loss) per share (in dollars per share) | $ 0.03 | $ (0.05) | $ 0.11 | $ (0.13) |
Weighted average shares outstanding, basic (in shares) | 50,379 | 50,183 | 50,346 | 50,153 |
Weighted average shares outstanding, diluted (in shares) | 50,836 | 50,183 | 50,623 | 50,153 |
Basis of Presentation and Other Information |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Other Information | Basis of Presentation and Other Information Shenandoah Telecommunications Company and its subsidiaries (“Shentel”, “we”, “our”, “us”, or the “Company”) provide broadband data, video and voice services to residential and commercial customers in portions of Virginia, West Virginia, Maryland, Pennsylvania and Kentucky, via fiber optic and hybrid fiber coaxial cable networks. We also lease dark fiber and provide Ethernet and Wavelength fiber optic services to enterprise and wholesale customers throughout the entirety of our service area. The Company also provides voice and DSL telephone services to customers in Virginia’s Shenandoah County and portions of adjacent counties as a Rural Local Exchange Carrier (“RLEC”). These integrated networks are connected by a fiber network. All of these operations are contained within our Broadband reporting segment. Our Tower segment owns 220 cell towers and leases colocation space on those towers to wireless communications providers. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. All normal recurring adjustments considered necessary for a fair presentation have been included. Certain disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2022. The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues and expenses and related disclosures. On an on-going basis we evaluate significant estimates and assumptions, including, but not limited to, revenue recognition, stock-based compensation, estimated useful lives of assets, impairment of goodwill and indefinite-lived intangible assets, intangible assets subject to amortization, the computation of income taxes and the fair value of interest rate swaps. Future events and their effects cannot be predicted with certainty; accordingly, the Company’s accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the financial statements will change as new events occur, as more experience is acquired, as additional information is obtained, and as the Company’s operating environment changes. Management evaluates and updates assumptions and estimates on an ongoing basis. Actual results may differ from these estimates under different assumptions or conditions. Adoption of New Accounting Standards There have been no material developments related to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s unaudited condensed consolidated financial statements and note disclosures from those disclosed in the Company’s Annual Report on Form 10-K for its fiscal year ended December 31, 2022, that would be expected to impact the Company.
|
Revenue from Contracts with Customers |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | Revenue from Contracts with Customers Contract Assets The Company’s contract assets primarily include commissions incurred to acquire contracts with customers. The Company incurs commission expenses related to in-house and third-party vendors which are capitalized and amortized over the expected customer benefit period which is approximately six years. The Company’s current contract assets are included in prepaid expenses and other and the Company’s non-current contract assets are included in deferred charges and other assets in its unaudited condensed consolidated balance sheets. Amortization of capitalized commission expenses is recorded in selling, general and administrative expenses in the Company’s unaudited condensed consolidated statements of comprehensive income (loss). The following tables present the activity of current and non-current contract assets:
Contract Liabilities The Company’s contract liabilities include services that are billed in advance and recorded as deferred revenue, as well as installation fees that are charged upfront without transfer of commensurate goods or services to the customer. The Company’s current contract liabilities are included in advanced billings and customer deposits and the Company’s non-current contract liabilities are included in other liabilities in its unaudited condensed consolidated balance sheets. Shentel’s current contract liability balances were $10.1 million and $9.5 million as of September 30, 2023 and December 31, 2022, respectively, and Shentel’s non-current contract liability balances were $1.0 million and $1.9 million as of September 30, 2023 and December 31, 2022, respectively. Shentel expects its current contract liability balances to be recognized within revenues during the twelve-month periods following the respective balance sheet dates and its non-current contract liability balances to be recognized within revenues after the twelve-month periods following the respective balance sheet dates. Refer to Note 14, Segment Reporting, for a summary of the Company’s revenue streams.
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Investments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Investments consist of the following:
SERP Investments at Fair Value: The fair value of the SERP investments are based on unadjusted quoted prices in active markets and are classified as Level 1 of the fair value hierarchy. Changes to the investments’ fair value are presented in Other income (expense), while the reciprocal changes in the liability are presented in selling, general and administrative expense. Cost Method Investments: Shentel’s investment in CoBank’s Class A common stock, derived from the CoBank patronage program, represented substantially all of the Company’s cost method investments with a balance of $10.0 million at both September 30, 2023 and December 31, 2022, respectively. We recognized approximately $0.1 million and $13.7 thousand of patronage income in other income (expense) for the three months ended September 30, 2023 and 2022, respectively, and approximately $0.4 million and $40.5 thousand during the nine months ended September 30, 2023 and 2022, respectively. The Company expects that approximately 88% of the patronage distributions will be collected in cash and 12% in equity in 2023. Equity Method Investments: At December 31, 2022, the Company had a 20.0% ownership interest in Valley Network Partnership (“ValleyNet”). During 2023, ValleyNet ceased operations and was dissolved. In April 2023, Shentel received a payment of $0.1 million, representing Shentel’s remaining capital in the partnership, and the investment balance was derecognized from Shentel’s unaudited condensed consolidated balance sheets. Prior to the commencement of dissolution proceedings, the Company and ValleyNet purchased capacity on one another’s fiber network, through related party transactions.
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Property, Plant and Equipment |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consist of the following:
Property, plant and equipment, net increases were primarily attributable to capital expenditures in the Broadband segment due to expansion of Glo Fiber assets and market expansion. The Company’s accounts payable as of September 30, 2023 and December 31, 2022 included amounts associated with capital expenditures of approximately $41.4 million and $43.8 million, respectively. Depreciation and amortization expense was $16.5 million and $17.7 million during the three months ended September 30, 2023 and 2022, respectively, and $48.3 million and $46.4 million during the nine months ended September 30, 2023 and 2022, respectively.
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Goodwill and Intangible Assets |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets consist of the following:
Amortization expense was $0.2 million during the three months ended September 30, 2023 and 2022, and $0.4 million and $0.6 million during the nine months ended September 30, 2023 and 2022, respectively. On August 23, 2022, the Company entered into a definitive asset purchase agreement (the “Spectrum Purchase Agreement”) with a wireless carrier pursuant to which the Company agreed to sell certain Federal Communications Commission (“FCC”) spectrum licenses and leases previously utilized in the Company’s Beam branded fixed wireless service for total consideration of approximately $21.1 million, composed of $17.3 million cash and approximately $3.8 million of liabilities to be assumed by the wireless carrier (the “Spectrum Transaction”). The Spectrum Transaction closed on July 6, 2023. As a result of the expected sale, the Company concluded that the FCC spectrum licenses met the held for sale criteria. Accordingly, $13.8 million of indefinite-lived licenses and $5.9 million of finite-lived licenses are presented as held for sale, along with the corresponding $3.8 million of operating lease liabilities related to the finite-lived licenses, as of December 31, 2022. Upon the closing of the Spectrum Transaction, the respective balances were derecognized, resulting in a gain of $1.3 million recorded in other income (expense). The Company evaluated these events and determined that the Spectrum Transaction does not represent a strategic shift in the Company’s business.
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Other Assets and Accrued Liabilities |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets and Accrued Liabilities | Other Assets and Accrued Liabilities Prepaid expenses and other, classified as current assets, included the following:
Deferred charges and other assets, classified as long-term assets, included the following:
Accrued liabilities and other, classified as current liabilities, included the following:
Other liabilities, classified as long-term liabilities, included the following:
In 2021, Shentel’s Board of Directors adopted a resolution to terminate its pension plan. The Company terminated the pension plan and all benefits were distributed in June 2023 through the combination of lump sum payments and the purchase of non-participating annuity contracts at the option of the pension plan participants. The Company made an additional $2.9 million contribution from its cash balance as a result of the settlement and recognized a settlement gain of $0.7 million in other income (expense) for the nine months ended September 30, 2023.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company leases various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. The components of lease costs were as follows:
_________________________________________ (1)Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. The following table summarizes the expected maturity of lease liabilities as of September 30, 2023:
Other information related to operating and finance leases was as follows:
The Company recognized $4.7 million and $4.0 million of operating lease revenue for the three months ended September 30, 2023 and 2022, respectively, and $13.9 million and $13.8 million of operating lease revenue for the nine months ended September 30, 2023 and 2022, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the unaudited condensed consolidated statements of comprehensive income (loss). Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place as of September 30, 2023:
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Leases | Leases The Company leases various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. The components of lease costs were as follows:
_________________________________________ (1)Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. The following table summarizes the expected maturity of lease liabilities as of September 30, 2023:
Other information related to operating and finance leases was as follows:
The Company recognized $4.7 million and $4.0 million of operating lease revenue for the three months ended September 30, 2023 and 2022, respectively, and $13.9 million and $13.8 million of operating lease revenue for the nine months ended September 30, 2023 and 2022, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the unaudited condensed consolidated statements of comprehensive income (loss). Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place as of September 30, 2023:
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Leases | Leases The Company leases various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. The components of lease costs were as follows:
_________________________________________ (1)Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. The following table summarizes the expected maturity of lease liabilities as of September 30, 2023:
Other information related to operating and finance leases was as follows:
The Company recognized $4.7 million and $4.0 million of operating lease revenue for the three months ended September 30, 2023 and 2022, respectively, and $13.9 million and $13.8 million of operating lease revenue for the nine months ended September 30, 2023 and 2022, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the unaudited condensed consolidated statements of comprehensive income (loss). Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place as of September 30, 2023:
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Our Credit Agreement, dated July 1, 2021 (the “Credit Agreement”) contains (i) a $100 million, five-year undrawn revolving credit facility (the “Revolver”), (ii) a $150 million five-year delayed draw amortizing term loan (“Term Loan A-1”) and (iii) a $150 million seven-year delayed draw amortizing term loan (“Term Loan A-2” and collectively with Term Loan A-1, the “Term Loans”). The following loans were outstanding under the Credit Agreement:
In May 2023, Shentel amended the Credit Agreement resulting in (a) a change of the floating index rate from the one-month term London Inter-Bank Offered Rate (“LIBOR”) to the one-month term Secured Overnight Financing Rate (“SOFR”), (b) an extension of the borrowing deadline under the Term Loans from June 30, 2023 to December 31, 2023, and (c) an extension of the first principal repayment date for the Term Loans from September 30, 2023 to March 31, 2024. Management evaluated the amendment and concluded that the amendment event represents a modification of the existing Credit Agreement; therefore, modification accounting was applied. Both Term Loan A-1 and Term Loan A-2 bore interest at one-month LIBOR plus a margin of 1.50% until May 2023 and now bear interest at one-month term SOFR plus a margin of 1.50%. The margin of 1.50% is variable and determined by the Company’s net leverage ratio. The interest rate was 6.92% and 5.89% at September 30, 2023 and December 31, 2022, respectively. The Company incurred interest expense of $2.3 million and $0.5 million during the three months ended September 30, 2023 and 2022, respectively, and $5.4 million and $1.2 million during the nine months ended September 30, 2023 and 2022, respectively. Shentel is charged commitment fees on unutilized portions of its Revolver and Term Loans. The Company recorded $0.1 million and $0.2 million related to these fees during the three months ended September 30, 2023 and 2022, respectively, and $0.4 million and $0.6 million related to these fees for the nine months ended September 30, 2023 and 2022, respectively. Both interest expense and commitment fees are included in other income (expense), net in the unaudited condensed consolidated statements of comprehensive income (loss). The Credit Agreement contains a borrowing deadline of December 31, 2023, after which the Company will not be able to borrow against the undrawn portion of the Term Loans. The Credit Agreement includes various covenants, including total net leverage ratio and debt service coverage ratio financial covenants. Shentel’s Term Loans require quarterly payments based on a percentage of the outstanding balance. Based on the outstanding balance as of September 30, 2023, Term Loan A-1 requires quarterly principal repayments of $0.5 million from March 31, 2024 through June 30, 2024; then increasing to $0.9 million quarterly from September 30, 2024 through March 31, 2026, with the remaining balance due June 30, 2026. Based on the outstanding balance as of September 30, 2023, Term Loan A-2 requires quarterly principal repayments of $0.2 million from March 31, 2024 through March 31, 2028, with the remaining balance due June 30, 2028. The following table summarizes the expected payments of Shentel’s outstanding borrowings as of September 30, 2023:
The Credit Agreement is fully secured by a pledge and unconditional guarantee from the Company and all of its subsidiaries, except Shenandoah Telephone Company. This provides the lenders a security interest in substantially all of the assets of the Company.
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Derivatives and Hedging |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging | Derivatives and Hedging During the second quarter of 2023, Shentel entered into pay fixed (2.90%), receive variable (one-month term SOFR) interest rate swaps totaling $150.0 million of notional principal (the “Swaps”). The Swaps contain monthly payment terms beginning in May 2024, which extend through their maturity dates in June 2026. The Swaps are designated as cash flow hedges, representing 50% of the Company’s expected outstanding debt (including expected future borrowings under the Term Loans). The Company uses the Swaps to manage its exposure to interest rate risk for its long-term variable-rate Term Loans. The table below presents the fair value of the Swaps as well as their classification in the unaudited condensed consolidated balance sheets. The fair value of these instruments was estimated using an income approach and observable market inputs (Level 2):
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The Company files U.S. federal income tax returns and various state income tax returns. The Company is not subject to any state or federal income tax audits as of September 30, 2023. The Company’s income tax returns are generally open to examination from 2019 forward and the net operating losses acquired in the acquisition of nTelos are open to examination from 2002 forward. The effective tax rates for the three and nine months ended September 30, 2023 and 2022, differ from the statutory U.S. federal income tax rate of 21% primarily due to the state income taxes, excess tax benefits and other discrete items.
The Company received $25.6 million in cash refunds for income taxes for the nine months ended September 30, 2023. The Company made no cash payments and received no cash refunds for income taxes for the nine months ended September 30, 2022.
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Stock Compensation and Earnings (Loss) per Share |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Compensation and Earnings (Loss) per Share | Stock Compensation and Earnings (Loss) per Share The Company granted approximately 385,000 restricted stock units (“RSUs”) at a weighted average grant price of $19.05 to employees and directors during the nine months ended September 30, 2023. Approximately 190,000 RSUs with a weighted average grant price of $25.01 vested and 9,000 RSUs with a weighted average grant price of $21.65 were forfeited during the nine months ended September 30, 2023. The total fair value of RSUs vested was $4.8 million during the nine months ended September 30, 2023. Approximately 836,000 RSUs with a weighted average grant price of $21.21 remained outstanding as of September 30, 2023. The Company granted approximately 134,000 Relative Total Shareholder Return RSUs (“RTSRs”) awards at a weighted average grant price of $23.64 to employees during the nine months ended September 30, 2023. Approximately 30,000 RTSRs with a weighted average grant price of $56.32 vested and no RTSRs were forfeited during the nine months ended September 30, 2023. The total fair value of RTSRs vested was $1.1 million during the nine months ended September 30, 2023. Approximately 293,000 RTSRs with a weighted average grant price of $25.80 remained outstanding as of September 30, 2023. The amount of RTSRs issued are determined on the vesting date based upon the Company’s stock performance compared to a group of peer companies. The vested amounts above exclude the vesting date adjustment and issuance of RTSRs based on actual performance, which totaled approximately 13,000 RTSRs, resulting in lower shares issued upon vesting of the RTSRs than originally granted. Stock-based compensation expense was as follows:
As of September 30, 2023, there was $10.9 million of total unrecognized compensation cost related to non-vested incentive awards which is expected to be recognized over weighted average period of 2.3 years. We utilize the treasury stock method to calculate the impact on diluted earnings (loss) per share that potentially dilutive stock-based compensation awards have. The following table indicates the computation of basic and diluted earnings (loss) per share:
There were approximately 330 and 172,000 anti-dilutive equity awards outstanding during the three and nine months ended September 30, 2023, respectively. There were approximately 252,000 and 165,000 potentially dilutive equity awards for the three and nine months ended September 30, 2022, respectively; however, these securities were excluded from the calculation of diluted weighted average shares outstanding due to the fact that they were anti-dilutive as a result of the Company’s net loss for the periods.
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Government Grants |
9 Months Ended |
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Sep. 30, 2023 | |
Government Grants [Abstract] | |
Government Grants | Government GrantsDuring the nine months ended September 30, 2023, Shentel was awarded an additional $18.3 million in new grants to strategically expand the Company’s broadband network in order to provide broadband services to unserved residences. The additional grants consisted of $9.4 million awarded under the Connect Maryland Network Infrastructure Grant Program in Maryland, $6.3 million awarded under the Virginia Telecommunications Initiative in Virginia, and $2.2 million and $0.4 million under the Major Broadband Project Strategies and Line Extension Advancement and Development programs, respectively, in West Virginia. The Company recognizes grant receivables at the time it becomes probable that the Company will be eligible to receive the grant, which is estimated to correspond with the date when specified build-out milestones are achieved. As a result of these programs, the Company received $0.4 million in cash reimbursements during the nine months ended September 30, 2023 and has recorded approximately $1.4 million in accounts receivable as of September 30, 2023. The Company did not recognize any material amounts under these programs during the nine months ended September 30, 2022 or as of December 31, 2022. |
Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesWe are committed to make payments to satisfy our lease liabilities. The scheduled payments under those obligations are summarized in Note 7, Leases. We also have outstanding unconditional purchase commitments to procure marketing services and IT software licenses through 2026.From time to time the Company is involved in various litigation matters arising out of the normal course of business. The Company consults with legal counsel on those issues related to litigation and seeks input from other experts and advisors with respect to such matters. Estimating the probable losses or a range of probable losses resulting from litigation, government actions and other legal proceedings is inherently difficult and requires an extensive degree of judgment, particularly where the matters involve indeterminate claims for monetary damages, may involve discretionary amounts, present novel legal theories, are in the early stages of the proceedings, or are subject to appeal. Whether any losses, damages or remedies ultimately resulting from such matters could reasonably have a material effect on the Company’s business, financial condition, results of operations, or cash flows will depend on a number of variables, including, for example, the timing and amount of such losses or damages (if any) and the structure and type of any such remedies. The Company’s management does not presently expect any litigation matters to have a material adverse impact on the Company’s financial position, results of operations and cash flows |
Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting Shentel has presented Residential & SMB - Cable Markets and Residential & SMB - Glo Fiber Markets separately for the three and nine months ended September 30, 2023. These revenues were previously reported in one line under the description “Residential & SMB”. Shentel has amended the presentation for the three and nine months ended September 30, 2022 for comparability. Three Months Ended September 30, 2023:
Three Months Ended September 30, 2022:
Nine Months Ended September 30, 2023:
Nine Months Ended September 30, 2022:
A reconciliation of the total of the reportable segments’ operating income (loss) to unaudited condensed consolidated income (loss) before income taxes is as follows:
The Company’s chief operating decision maker (CODM) does not currently review total assets by segment since the assets are centrally managed and some of the assets are shared by the segments. Accordingly, total assets by segment are not provided.
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Subsequent Events |
9 Months Ended |
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Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 24, 2023, Shentel entered into a definitive agreement to acquire 100% of the equity interests in Horizon Acquisition Parent LLC (“Horizon” or “Horizon Telcom”) for $385 million (the “Horizon Transaction”). Consideration will consist of $305 million in cash and $80 million of Shentel common stock. Horizon is a leading commercial fiber provider in Ohio and adjacent states serving national wireless providers, carriers, enterprises, and government, education and healthcare customers. Based in Chillicothe, Ohio, Horizon was founded in 1895 as the incumbent local exchange carrier (“ILEC”) in Ross County, Ohio and rapidly expanded its fiber network over the past 14 years. Most recently, Horizon has pursued a strategy of investing in Fiber-to-the-Home (“FTTH”) in tier 3 & 4 markets in Ohio. Financing •Shentel intends to fund the Horizon Transaction with a combination of existing cash resources, revolving credit facility capacity and an amended and upsized credit facility. The Company has received $275 million in financing commitments from CoBank, Bank of America, Citizens Bank, N.A., and Fifth Third Bank, N.A.. •GCM Grosvenor (“GCM”), a selling unit holder of Horizon, will exchange its equity interest in Horizon for 4.08 million shares of Shentel common stock with an aggregate value of $80 million based on a reference price of $19.60 resulting in GCM owning approximately 7% of Shentel’s fully diluted common shares after the transaction is closed. •Shentel has entered into a 7% Participating Exchangeable Perpetual Preferred Stock (“Preferred Stock”) investment agreement with Energy Capital Partners (“ECP”), an existing Shentel shareholder and long-time infrastructure investor, to provide $81 million of growth capital to fund the FTTH network expansion, the government grant projects and general corporate purposes. The dividend can be paid in cash or in-kind at the option of the Company. The Preferred Stock can be exchanged for Shentel common stock at an exchange price of $24.50, a 25% premium to the reference price of $19.60, under certain conditions as outlined in the investment agreement. This financing is expected to close in conjunction with the Horizon Transaction. •The Company plans to raise additional growth capital for the FTTH network expansion, government grant projects and general corporate purposes, which may include exploring strategic alternatives for its tower portfolio. The Horizon Transaction is subject to certain regulatory approvals and other customary closing conditions and is expected to close in the first half of 2024. Shentel is in the process of evaluating the impact of the Horizon Transaction on its consolidated financial statements and related disclosures.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Pay vs Performance Disclosure | ||||
Net income (loss) | $ 1,593 | $ (2,728) | $ 5,449 | $ (6,556) |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Other Information (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of New Accounting Standards | Adoption of New Accounting Standards There have been no material developments related to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s unaudited condensed consolidated financial statements and note disclosures from those disclosed in the Company’s Annual Report on Form 10-K for its fiscal year ended December 31, 2022, that would be expected to impact the Company.
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Investments | SERP Investments at Fair Value: The fair value of the SERP investments are based on unadjusted quoted prices in active markets and are classified as Level 1 of the fair value hierarchy. Changes to the investments’ fair value are presented in Other income (expense), while the reciprocal changes in the liability are presented in selling, general and administrative expense. Cost Method Investments: Shentel’s investment in CoBank’s Class A common stock, derived from the CoBank patronage program, represented substantially all of the Company’s cost method investments with a balance of $10.0 million at both September 30, 2023 and December 31, 2022, respectively. We recognized approximately $0.1 million and $13.7 thousand of patronage income in other income (expense) for the three months ended September 30, 2023 and 2022, respectively, and approximately $0.4 million and $40.5 thousand during the nine months ended September 30, 2023 and 2022, respectively. The Company expects that approximately 88% of the patronage distributions will be collected in cash and 12% in equity in 2023. Equity Method Investments: At December 31, 2022, the Company had a 20.0% ownership interest in Valley Network Partnership (“ValleyNet”). During 2023, ValleyNet ceased operations and was dissolved. In April 2023, Shentel received a payment of $0.1 million, representing Shentel’s remaining capital in the partnership, and the investment balance was derecognized from Shentel’s unaudited condensed consolidated balance sheets. Prior to the commencement of dissolution proceedings, the Company and ValleyNet purchased capacity on one another’s fiber network, through related party transactions.
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Revenue from Contracts with Customers (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortized and Capitalized Contract Cost | The following tables present the activity of current and non-current contract assets:
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Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Investments | Investments consist of the following:
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Property, Plant and Equipment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following:
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Goodwill and Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets Resulting from Acquisition | Goodwill and intangible assets consist of the following:
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Schedule of Finite-Lived Intangible Assets | Goodwill and intangible assets consist of the following:
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Other Assets and Accrued Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Assets | Prepaid expenses and other, classified as current assets, included the following:
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Schedule of Other Assets, Noncurrent | Deferred charges and other assets, classified as long-term assets, included the following:
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Summary of Accrued Liabilities and Other | Accrued liabilities and other, classified as current liabilities, included the following:
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Schedule of Other Noncurrent Liabilities | Other liabilities, classified as long-term liabilities, included the following:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Lease Costs | The components of lease costs were as follows:
_________________________________________ (1)Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. Other information related to operating and finance leases was as follows:
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Schedule of Expected Maturity of Lease Liabilities, Operating | The following table summarizes the expected maturity of lease liabilities as of September 30, 2023:
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Schedule of Expected Maturity of Lease Liabilities, Financing | The following table summarizes the expected maturity of lease liabilities as of September 30, 2023:
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Schedule of Minimum Rental Receipts Under Lease Agreement Lessor, Operating Leases | Below is a summary of our minimum rental receipts under the lease agreements in place as of September 30, 2023:
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | The following loans were outstanding under the Credit Agreement:
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Maturities of Long-term Debt | The following table summarizes the expected payments of Shentel’s outstanding borrowings as of September 30, 2023:
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Derivatives and Hedging (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments Fair Value | The table below presents the fair value of the Swaps as well as their classification in the unaudited condensed consolidated balance sheets. The fair value of these instruments was estimated using an income approach and observable market inputs (Level 2):
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Income Taxes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Income Taxes | The effective tax rates for the three and nine months ended September 30, 2023 and 2022, differ from the statutory U.S. federal income tax rate of 21% primarily due to the state income taxes, excess tax benefits and other discrete items.
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Stock Compensation and Earnings (Loss) per Share (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock compensation expense | Stock-based compensation expense was as follows:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table indicates the computation of basic and diluted earnings (loss) per share:
|
Segment Reporting (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Selected Financial Data for Segments | Three Months Ended September 30, 2023:
Three Months Ended September 30, 2022:
Nine Months Ended September 30, 2023:
Nine Months Ended September 30, 2022:
|
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Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of the total of the reportable segments’ operating income (loss) to unaudited condensed consolidated income (loss) before income taxes is as follows:
|
Basis of Presentation and Other Information (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
cell_site
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of cell towers built | 220 |
Revenue from Contracts with Customers - Amortized and Capitalized Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Capitalized Contract Cost [Roll Forward] | ||||
Beginning Balance | $ 8,742 | $ 8,427 | $ 8,646 | $ 8,147 |
Commission payments | 755 | 983 | 2,439 | 2,630 |
Contract asset amortization | (822) | (729) | (2,410) | (2,096) |
Ending Balance | $ 8,675 | $ 8,681 | $ 8,675 | $ 8,681 |
Investments - Other Investments (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Investments [Abstract] | ||
SERP investments at fair value | $ 2,027 | $ 1,889 |
Cost method investments | 10,657 | 10,749 |
Equity method investments | 234 | 333 |
Total investments | $ 12,918 | $ 12,971 |
Investments - Narrative (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
Apr. 30, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Schedule of Equity Method Investments [Line Items] | ||||||
SERP investments at fair value | $ 2,027,000 | $ 2,027,000 | $ 1,889,000 | |||
CoBank | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
SERP investments at fair value | 10,000,000 | 10,000,000 | ||||
Other nonoperating income (expense) | $ 100,000 | $ 13,700 | $ 400,000 | $ 40,500 | ||
Percentage of patronage credit paid in cash | 88.00% | 88.00% | ||||
Percentage of patronage credit paid in share | 12.00% | 12.00% | ||||
Valley Network Partnership | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest, percentage | 20.00% | 20.00% | 20.00% | |||
Distribution of capital | $ 100,000 |
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Property, Plant and Equipment [Line Items] | |||||
Accounts payable | $ 43,360 | $ 43,360 | $ 49,173 | ||
Depreciation and amortization | 16,500 | $ 17,700 | 48,300 | $ 46,400 | |
Goodwill - Broadband | |||||
Property, Plant and Equipment [Line Items] | |||||
Accounts payable | $ 41,400 | $ 41,400 | $ 43,800 |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Jul. 06, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization expense | $ 200 | $ 200 | $ 400 | $ 600 | ||
Proceeds from the sale of FCC spectrum licenses | $ 17,300 | $ 0 | ||||
Spectrum Purchase Agreements | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Sale proceeds | $ 21,100 | |||||
Proceeds from the sale of FCC spectrum licenses | 17,300 | |||||
Discontinued operation, liabilities assumed by acquirer | 3,800 | |||||
Gain on sale | $ 1,300 | |||||
Spectrum Purchase Agreements | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Indefinite-lived license | $ 13,800 | |||||
Finite-lived license | 5,900 | |||||
Operating lease liabilities | $ 3,800 |
Other Assets and Accrued Liabilities - Current Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Prepaid maintenance expenses | $ 7,024 | $ 7,444 |
Broadband contract acquisition costs | 3,037 | 2,809 |
Interest rate swaps | 1,321 | 0 |
Other | 3,012 | 1,256 |
Prepaid expenses and other | $ 14,394 | $ 11,509 |
Other Assets and Accrued Liabilities - Long-Term Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Broadband contract acquisition costs | $ 5,638 | $ 5,837 |
Interest rate swaps | 3,048 | 0 |
Prepaid expenses and other | 7,139 | 7,422 |
Deferred charges and other assets | $ 15,825 | $ 13,259 |
Other Assets and Accrued Liabilities - Current Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Accrued programming costs | $ 2,967 | $ 3,306 |
Pension plan | 0 | 3,341 |
Other current liabilities | 8,796 | 11,259 |
Accrued liabilities and other | $ 11,763 | $ 17,906 |
Other Assets and Accrued Liabilities - Long Term Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Noncurrent portion of deferred lease revenue | $ 18,387 | $ 18,679 |
Noncurrent portion of financing leases | 1,397 | 1,500 |
Other | 294 | 39 |
Other liabilities | $ 20,078 | $ 20,218 |
Other Assets and Accrued Liabilities - Narrative (Details) - USD ($) $ in Millions |
1 Months Ended | 9 Months Ended |
---|---|---|
Jun. 30, 2023 |
Sep. 30, 2023 |
|
Other Liabilities Disclosure [Abstract] | ||
Employer contributions | $ 2.9 | |
Other comprehensive income (loss), defined benefit plan, settlement and curtailment gain (loss), after tax | $ 0.7 |
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Leases [Abstract] | ||||
Amortization of leased assets | $ 120 | $ 119 | $ 358 | $ 357 |
Interest on lease liabilities | 20 | 21 | 59 | 63 |
Operating lease cost | 1,693 | 2,680 | 5,298 | 8,342 |
Lease cost | $ 1,833 | $ 2,820 | $ 5,715 | $ 8,762 |
Leases - Maturity of Lease Liability - Lessee (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Operating Leases | |
2023 | $ 1,265 |
2024 | 5,862 |
2025 | 5,529 |
2026 | 4,682 |
2027 | 3,854 |
2028 and thereafter | 66,096 |
Total lease payments | 87,288 |
Less: Interest | (34,660) |
Present value of lease liabilities | 52,628 |
Finance Leases | |
2023 | 20 |
2024 | 178 |
2025 | 180 |
2026 | 153 |
2027 | 155 |
2028 and thereafter | 1,359 |
Total lease payments | 2,045 |
Less: Interest | (545) |
Present value of lease liabilities | 1,500 |
Total | |
2023 | 1,285 |
2024 | 6,040 |
2025 | 5,709 |
2026 | 4,835 |
2027 | 4,009 |
2028 and thereafter | 67,455 |
Total lease payments | 89,333 |
Less: Interest | (35,205) |
Present value of lease liabilities | $ 54,128 |
Leases - Other Information Related to Operating and Finance Leases (Details) |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term | 19 years 3 months 18 days | 19 years 9 months 18 days |
Operating lease, weighted average discount rate, percent | 4.90% | 4.50% |
Finance lease, weighted average remaining lease term | 12 years 7 months 6 days | 13 years 1 month 6 days |
Finance lease, weighted average discount rate, percent | 5.20% | 5.20% |
Leases - Operating Lease (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Leases [Abstract] | ||||
Cash paid for operating lease liabilities | $ 1,662 | $ 1,513 | $ 4,843 | $ 4,616 |
Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases) | $ 508 | $ 1,213 | $ 2,229 | $ 3,283 |
Leases - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Leases [Abstract] | ||||
Sublease income | $ 4.7 | $ 4.0 | $ 13.9 | $ 13.8 |
Leases - Maturity of Lease Liability - Lessor (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Leases [Abstract] | |
2023 | $ 4,311 |
2024 | 16,206 |
2025 | 15,126 |
2026 | 12,086 |
2027 | 10,596 |
2028 and thereafter | 25,199 |
Total | $ 83,524 |
Debt - Credit Agreement (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Total debt | $ 150,000 | $ 75,000 |
Less: unamortized loan fees | (94) | (46) |
Total debt, net of unamortized loan fees | 149,906 | 74,954 |
Term loan A-1 | ||
Debt Instrument [Line Items] | ||
Total debt | 75,000 | 37,500 |
Term loan A-2 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 75,000 | $ 37,500 |
Debt - Maturities of Long-term Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Maturities of Long-term Debt [Abstract] | ||
2023 | $ 0 | |
2024 | 3,563 | |
2025 | 4,500 | |
2026 | 69,187 | |
2027 | 750 | |
2028 | 72,000 | |
Total debt, net of unamortized loan fees | $ 150,000 | $ 75,000 |
Derivatives and Hedging - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Derivatives, Fair Value [Line Items] | ||||
Unrealized gain (loss) on derivatives, net | $ 1,100 | $ 0 | $ 3,200 | $ 0 |
Tax on unrealized gain (loss) on derivatives | $ (400) | $ (1,100) | ||
Interest rate swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, variable interest rate | 2.90% | 2.90% | ||
Payments for derivative instruments | $ 150,000 | $ 150,000 | ||
Expected outstanding debt | 50.00% | 50.00% |
Derivatives and Hedging - Schedule of Derivative Instruments (Fair Value) (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Derivatives, Fair Value [Line Items] | |
Total derivatives designated as hedging instruments | $ 4,369 |
Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | |
Derivatives, Fair Value [Line Items] | |
Total derivatives designated as hedging instruments | 1,321 |
Designated as Hedging Instrument | Deferred Charges and Other Assets, Net | |
Derivatives, Fair Value [Line Items] | |
Total derivatives designated as hedging instruments | $ 3,048 |
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Expected tax expense (benefit) at federal statutory | $ 486 | $ (626) | $ 1,828 | $ (1,524) |
State income tax expense (benefit), net of federal tax effect | 124 | (148) | 468 | (361) |
Revaluation of deferred tax liabilities | 0 | (108) | 0 | (108) |
Excess tax deficiency from share-based compensation and other expense, net | 110 | 631 | 959 | 1,294 |
Income tax expense (benefit) | $ 720 | $ (251) | $ 3,255 | $ (699) |
Income Taxes - Narrative (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Income Tax Disclosure [Abstract] | |
Income tax refunds received, net | $ 25.6 |
Stock Compensation and Earnings (Loss) per Share - Schedule of Stock Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-Based Payment Arrangement [Abstract] | ||||
Stock compensation expense | $ 2,220 | $ 1,942 | $ 8,950 | $ 7,751 |
Capitalized stock compensation | (176) | (171) | (586) | (452) |
Stock compensation expense, net | $ 2,044 | $ 1,771 | $ 8,364 | $ 7,299 |
Stock Compensation and Earnings (Loss) per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-Based Payment Arrangement [Abstract] | ||||
Net income (loss) | $ 1,593 | $ (2,728) | $ 5,449 | $ (6,556) |
Basic weighted average shares outstanding (in shares) | 50,379 | 50,183 | 50,346 | 50,153 |
Basic net income (loss) per share (in dollars per share) | $ 0.03 | $ (0.05) | $ 0.11 | $ (0.13) |
Effect from dilutive shares and options outstanding (in shares) | 457 | 0 | 277 | 0 |
Diluted weighted average shares outstanding (in shares) | 50,836 | 50,183 | 50,623 | 50,153 |
Diluted net income (loss) per share (in dollars per share) | $ 0.03 | $ (0.05) | $ 0.11 | $ (0.13) |
Government Grants (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Other Income [Line Items] | |
Increase (decrease) in grants receivable | $ 18.3 |
Cash reimbursements | 0.4 |
Grants receivable | 1.4 |
Maryland | |
Other Income [Line Items] | |
Increase (decrease) in grants receivable | 9.4 |
West Virginia | Major Broadband Project Strategies | |
Other Income [Line Items] | |
Increase (decrease) in grants receivable | 2.2 |
West Virginia | Line Extension Advancement and Development Programs | |
Other Income [Line Items] | |
Increase (decrease) in grants receivable | 0.4 |
VIRGINIA | |
Other Income [Line Items] | |
Increase (decrease) in grants receivable | $ 6.3 |
Segment Reporting - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | ||||
Total consolidated operating income (loss) | $ 1,487 | $ (1,771) | $ 6,584 | $ (5,288) |
Other income (expense), net | 826 | (1,208) | 2,120 | (1,967) |
Income (loss) before income taxes | $ 2,313 | $ (2,979) | $ 8,704 | $ (7,255) |
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