GlobeNewswire Inc | Feb 25, 2021 07:00AM EST

February 25, 2021

EDINBURG, Va., Feb. 25, 2021 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (Shentel) (Nasdaq: SHEN) announced fourth quarter and full year 2020 financial and operating results.

2020 Highlights

-- Record Broadband data net additions of approximately 18,800 with Glo Fiber and Beam contributing approximately 4,000 and 100, respectively -- Added approximately 27,000 Glo Fiber homes passed and eight new franchise agreements expanding franchise passings to over 116,000 -- Launched Beam fixed wireless broadband service in the fourth quarter 2020 to approximately 9,400 homes passed in four counties in Virginia

2020 was a very successful and pivotal year for our Company, as we built momentum executing our Broadband strategy. Our incumbent cable business had a record year of data net additions, driven by our upgraded DOCSIS 3.1 cable network, the value of our Powerhouse rate card, and the increase in customers working and learning from home, said President and CEO, Christopher E. French. Our first full year of Glo Fiber exceeded our expectations for construction pace, penetration rates and churn, validating our investment thesis. We are also pleased to have successfully launched our Beam fixed wireless service in October, providing an additional means to deliver broadband services. We are excited that the foundational investments made in our integrated broadband network will support sustainable high growth rates for the next several years.

Shentel's fourth-quarter earnings conference call will be webcast at 8:30 a.m. ET on Thursday, February25, 2021. The webcast and related materials will be available on Shentels Investor Relations website at https://investor.shentel.com/.

Consolidated Full Year 2020 Results

-- Revenue grew 6.7% to $220.8 million driven by 31% growth in Tower and 5.4% growth in Broadband segments. -- Adjusted OIBDA increased 15.8% to $57.2 million in 2020 due to strong growth in Towers and a 13.3% decline in Corporate expenses. -- Operating loss in 2020 was $(1.1) million, compared with $(0.7) million in 2019. -- Earnings from continuing operations per diluted share was $0.05 compared to $0.05 in 2019 and earnings from discontinued operations grew 131.8% to $2.48 per diluted share 2020.

Broadband

-- Total Broadband Data Revenue Generating Units ("RGUs") as of December31, 2020 were 102,812, representing 22.3% year over year growth. -- Incumbent cable Broadband Data RGUs as of December31, 2020 were 98,555, representing 17.4% year over year growth. Data penetration grew year over year from 40.6% to 47.2% driven by strong demand for high speed Internet, the enhanced value of our Powerhouse rate card and demand from Covid-19 induced work and learn from home mandates. Churn declined 20 basis points year over year to 1.6%. Broadband average revenue per user (ARPU) decreased 1.0% to $77.97, in 2020, driven by sales of a discounted pre-paid rate plan offered to credit-challenged customers as a result of the pandemic. -- Glo Fiber Broadband Data RGUs as of December31, 2020 were 4,158. Penetration grew to 14.5% driven by strong demand for high speed Internet fiber-based services and differentiated local customer service. 2020 churn and ARPU were 0.84% and $78.90, respectively. Total Glo Fiber passings grew approximately 28.2% sequentially, from the third quarter 2020, to 28,652. -- Beam Broadband Data RGUs as of December31, 2020 were 99. ARPU was $73.17 for the period since the launch in October 2020. -- The Company acquired Canaan Cable on December 31, 2020 for $2.1 million. RGUs acquired in the deal totaled approximately one thousand, which have not been included in our reporting of revenue, RGUs, or ARPU for 2020. -- Total Broadband revenue grew $10.4 million or 5.4% to $204.3 million. Residential & SMB revenue increased approximately $12.7 million, or 8.9%, during 2020 primarily driven by 22.3% growth in broadband penetration. Commercial Fiber revenue increased approximately $2.3 million during 2020 due to an increase in new enterprise and backhaul recurring revenue of $4.0 million partially offset by a $1.6 million decline in amortized upfront fee revenue. Rural Local Exchange Carrier (RLEC) & Other revenue decreased approximately $4.7 million, or 22.0%, compared with 2019 due primarily to a decline in residential DSL subscribers, lower governmental support and lower intercompany phone service. We expect RLEC revenue to continue to decline as subscribers migrate to faster speed data services provided by our dual-incumbent cable franchise in Shenandoah County, Virginia. -- Broadband operating expenses increased approximately $12.6 million, or 8.4%, to $164.0 million in 2020, compared with 2019, primarily due to $7.9 million of higher compensation expense due to the combination of Glo Fiber and Beam start-up staffing, higher incentive accrual from strong operating results, COVID supplemental pay for customer interfacing employees and enhanced benefit plans. Higher software fees and professional services drove an additional increase of $2.8 million which was driven by higher software fees and licenses and professional services. Other general and administrative expenses increased by $0.6 million. Depreciation and amortization expense also increased by $2.5 million. -- Broadband Adjusted OIBDA in 2020 grew 0.5% to $81.5 million, compared with $81.2 million in 2019. -- Broadband operating income in 2020 was $40.4 million, compared with $42.6 million in 2019.

Tower

-- Total macro towers and tenants were 223 and 427, respectively, as of December31, 2020, as compared to 225 and 404, respectively, as of December31, 2019. -- Revenue increased approximately $4.1 million, or 31.3%, in 2020 to $17.1 million compared with 2019. This increase was due to an 5.7% increase in tenants and 23.4% increase in average revenue per tenant driven by amendments to intercompany leases. -- Operating expenses increased approximately $1.5 million compared to the prior year period, due primarily to increases in ground lease rent expense and professional services. -- Tower AdjustedOIBDA grew 29.7% to $10.7 million, compared with $8.3 million in 2019. -- Tower operating income in 2020 was $8.8 million, compared with $6.3 million in 2019.

Consolidated Fourth Quarter 2020 Results

-- Revenue in the fourth quarter of 2020 grew 8.5% to $58.1 million due to the growth of 20.4% in Towers and 7.8% in Broadband segments. -- Adjusted OIBDA in the fourth quarter of 2020 grew 20.4% to $15.7 million due to 18.2% decline in Corporate expenses, 18.9% growth in Towers and 3.1% growth in Broadband. -- Operating income in the fourth quarter of 2020 was $1.6 million compared with a loss of $(0.6) million in the fourth quarter of 2019. -- Earnings from continuing operations per diluted share was $0.03 compared to $(0.01) in the fourth quarter 2019 and earnings from discontinued operations grew 216.7% to $0.95 per diluted share from the fourth quarter 2020.

Broadband

-- Broadband revenue in the fourth quarter of 2020 grew $3.9 million or 7.8% to $53.7 million compared with $50.0 million in the fourth quarter of 2019, primarily driven by $4.3 million or 11.6% increase in Residential and SMB revenue on 22.3% increase in data subscribers. Commercial fiber grew 8.7% to $8.7 million from higher enterprise and backhaul connections. RLEC revenue declined 20.5% to $4.2 million due primarily to lower DSL subscribers and intercompany phone service. -- Broadband operating expenses in the fourth quarter of 2020 were $43.0 million compared to $40.4 million in the fourth quarter of 2019. The increase was primarily due to a $1.8 million increase in compensation expense due to a combination of Glo Fiber and Beam start-up staffing, higher incentive accrual from strong operating results and enhanced benefit plans, and $1.2 million in higher maintenance of the expanding network. -- Broadband Adjusted OIBDA in the fourth quarter of 2020 grew 3.5% to $21.4 million, compared with $20.7 million for the fourth quarter of 2019. -- Broadband Operating income in the fourth quarter of 2020 was $10.7 million, compared to $9.4 million in the fourth quarter of 2019.

Tower

-- Tower revenue grew 20.4% to $4.6 million due to 5.5% increase in tenants and 16.2% increase in revenue per tenant due to amendments to intercompany leases. -- Tower AdjustedOIBDA in the fourth quarter of 2020 grew 18.9% to $2.9 million, compared with $2.4 million for the fourth quarter of 2019. -- Tower operating income in the fourth quarter of 2020 was consistent with 2019.

Other Information

-- As previously announced, T-Mobile exercised an option to purchase our Wireless assets and operations pursuant to an appraisal process that determined the sale price to be $1.95 billion, inclusive of an estimated closing adjustment for the unrealized waived management fee. We expect to enter into a definitive asset purchase agreement with T-Mobile during the first quarter 2021 and expect that the transaction will close during the second quarter 2021, subject to customary closing conditions and required regulatory approvals. -- As previously announced, the Company currently expects the after-tax proceeds from the sale of our wireless assets and operations to be approximately $1.5 billion and will be used repay approximately $702 million of outstanding term loans and terminate the credit agreement and to fund a special dividend of $18.75 per share to Shentels shareholders. The Company expects to pay the special dividend in the second quarter 2021 after the close of the transaction, subject to the approval of Shentels Board of Directors. -- At December31, 2020 the Company had $697.9 million of outstanding debt principal that is required to be fully repaid upon the disposition of Wireless operations and assets. Additionally, the Company intends to repay $4.0 million of swap liabilities. As of December31, 2020, the Company had liquidity of approximately $270.4 million, including$75.0 millionof revolving line of credit availability. -- Capital expenditures were $120.5 million for the year ended December31, 2020 compared with $67.0 million in 2019. The $53.4 million increase in capital expenditures was primarily due to higher spending in the Broadband segment driven by the expansion of Glo Fiber and Beam. -- The Company declared and paid a cash dividend of $0.34 per share, in the fourth quarter 2020, representing a 17.2% increase over the 2019 dividend.

2021 OutlookShentel is affirming the full-year 2021 guidance issued by the Company on February 3, 2021. As previously conveyed, full year guidance for 2021 is summarized as follows:

($ in millions) Year Ending December 31, Year 2021 2020 Ended % Change % Change December 2020 to 2019 to Guidance Actual 31, 2021 2020 2019 Midpoint Low High

Revenue $ 241 $ 248 $ 221 $ 207 10.6 % 6.8 %Operating Income $ 7 $ 14 $ (1 ) $ (1 ) nm ? %(loss)Adjusted OIBDA $ 69 $ 76 $ 57 $ 49 27.2 % 16.3 %Capital $ 157 $ 168 $ 120 $ 67 35.4 % 79.1 %Expenditures

Adjusted OIBDA is a non-GAAP financial measure that is not determined in accordance with US generally accepted accounting principles. Reconciliations of this non-GAAP financial measures are provided in this press release after the consolidated financial statements.

Conference Call and Webcast Teleconference Information: Date: February25, 2021 Time: 8:30 A.M. (ET) Dial in number: 1-888-695-7639 Password: 6067574 Audio webcast: http://investor.shentel.com/

An audio replay of the call will be available approximately two hours after the call is complete, through March26, 2021 by calling (855) 859-2056.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company (Shentel) provides a broad range of diversified communications services through its high speed, state-of-the-art wireless, cable and fiber optic and fixed wireless networks to customers in the Mid-Atlantic United States. The Companys services include: broadband internet, video, and digital voice; fiber optic Ethernet, wavelength and leasing; telephone voice and digital subscriber line; tower colocation leasing; and wireless voice and data. Shentel is the exclusive personal communications service (PCS) Affiliate of Sprint in a multi-state area covering large portions of central and western Virginia, south-central Pennsylvania, West Virginia, and portions of Maryland, and Kentucky. For more information, please visit www.shentel.com.

This release contains forward-looking statements that are subject to various risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of unforeseen factors. A discussion of factors that may cause actual results to differ from management's projections, forecasts, estimates and expectations, is available in the Companys filings with the SEC. Those factors may include changes in general economic conditions, increases in costs, changes in regulation and other competitive factors.

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

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)

Quarter Ended December 31, Year Ended December 31, 2020 2019 2020 2019Service revenue and $ 58,132 $ 53,602 $ 220,775 $ 206,862 otherOperating expenses: Cost of services 23,036 20,949 88,203 82,949 Selling, general and 20,789 20,225 85,016 77,846 administrativeDepreciation and 12,693 12,978 48,703 46,786 amortizationTotal operating 56,518 54,152 221,922 207,581 expensesOperating income 1,614 (550 ) (1,147 ) (719 )(loss)Other income: Other income, net 84 (178 ) 3,187 3,280 Income before income 1,698 (728 ) 2,040 2,561 taxesIncome tax expense 98 168 (586 ) 173 (benefit)Income (loss) fromcontinuing 1,600 (896 ) 2,626 2,388 operationsIncome fromdiscontinued 47,675 15,439 124,097 53,568 operations, net oftaxNet income 49,275 14,543 126,723 55,956 Net income pershare, basic and diluted:Basic - Income(loss) from $ 0.03 $ (0.01 ) $ 0.05 $ 0.05 continuingoperationsBasic - Income fromdiscontinued $ 0.96 $ 0.30 $ 2.49 $ 1.07 operations, net oftaxBasic net income per $ 0.99 $ 0.29 $ 2.54 $ 1.12 share Diluted - Income(loss) from $ 0.03 $ (0.01 ) $ 0.05 $ 0.05 continuingoperationsDiluted - Incomefrom discontinued $ 0.95 $ 0.30 $ 2.48 $ 1.07 operations, net oftaxDiluted net income $ 0.98 $ 0.29 $ 2.53 $ 1.12 per share Weighted averageshares outstanding, 49,922 49,762 49,901 49,811 basicWeighted averageshares outstanding, 50,010 49,762 50,024 50,101 diluted

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands)

December 31, December 31, 2020 2019 Cash and cash equivalents $ 195,397 $ 101,651 Other current assets 80,024 85,125 Current assets held for sale 1,133,294 55,077 Total current assets 1,408,715 241,853 Investments 13,769 12,388 Property, plant and equipment, net 440,427 363,087 Intangible assets, net and Goodwill 106,759 88,241 Operating lease right-of-use assets 50,387 42,568 Deferred charges and other assets, net 11,650 9,267 Non-current assets held for sale ? 1,141,498 Total assets $ 2,031,707 $ 1,898,902 Current liabilities held for sale 452,202 $ 53,912 Total current liabilities 755,859 $ 99,665 Long-term debt, less current maturities ? 688,464 Non-current liabilities held for sale ? 368,423 Other liabilities 241,252 216,010 Total shareholders? equity 582,394 472,428 Total liabilities and shareholders? equity $ 2,031,707 $ 1,898,902

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) 2020 2019Cash flows from operating activities: Net income $ 126,723 $ 55,956 Income from operations of discontinued operations, net 124,097 53,568 of taxIncome from continuing operations 2,626 2,388 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation 47,964 46,313 Amortization of intangible assets 739 473 Bad debt expense 1,220 1,743 Stock based compensation expense, net of amount 5,907 3,367 capitalizedDeferred income taxes 15,310 16,848 Other adjustments (978 ) (4,359 )Changes in assets and liabilities (19,429 ) (24,444 )Net cash provided by operating activities ? continuing 53,359 42,329 operationsNet cash provided by operating activities ? 249,508 216,816 discontinued operationsNet cash provided by operating activities 302,867 259,145 Cash flows from investing activities: Capital expenditures (120,450 ) (67,048 )Cash disbursed for acquisitions (1,890 ) (10,000 )Cash disbursed for FCC spectrum licenses (16,118 ) (16,742 )Proceeds from sale of assets and other 370 112 Net cash used in investing activities ? continuing (138,088 ) (93,678 )operationsNet cash used in investing activities ? discontinued (17,500 ) (71,656 )operationsNet cash used in investing activities (155,588 ) (165,334 ) Cash flows from financing activities: Dividends paid, net of dividends reinvested (16,424 ) (13,943 )Taxes paid for equity award issuances (2,217 ) (2,910 )Other (769 ) (7,195 )Net cash used in financing activities ? continuing (19,410 ) (24,048 )operationsNet cash used in financing activities ? discontinued (34,123 ) (53,198 )operationsNet cash used in financing activities (53,533 ) (77,246 ) Net increase in cash and cash equivalents 93,746 16,565 Cash and cash equivalents, beginning of period 101,651 85,086 Cash and cash equivalents, end of period $ 195,397 $ 101,651

Non-GAAP Financial MeasuresAdjusted OIBDA

Adjusted OIBDA represents Operating income before depreciation, amortization of intangible assets, stock-based compensation and certain other items of revenue, expense, gain or loss not reflective of our operating performance, which may or may not be recurring in nature.

Adjusted OIBDA is a non-GAAP financial measure that we use to evaluate our operating performance in comparison to our competitors. Management believes that analysts and investors use Adjusted OIBDA as a supplemental measure of operating performance to facilitate comparisons with other telecommunications companies. This measure isolates and evaluates operating performance by excluding the cost of financing (e.g., interest expense), as well as the non-cash depreciation and amortization of past capital investments, non-cash share-based compensation expense, and certain other items of revenue, expense, gain or loss not reflective of our operating performance.

Adjusted OIBDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for operating income, net income or any other measure of financial performance reported in accordance with U.S. Generally Accepted Accounting Principles (GAAP).

The following tables reconcile Adjusted OIBDA to operating income, which we consider to be the most directly comparable GAAP financial measure:

Year Ended December 31, 2020(in thousands) Broadband Tower Corporate & Consolidated EliminationsOperating income (loss)from continuing $ 40,360 $ 8,823 $ (50,330 ) $ (1,147 )operationsDepreciation 40,337 1,906 5,721 47,964 Amortization 739 ? ? 739 OIBDA 81,436 10,729 (44,609 ) 47,556 Share-based ? ? 5,907 5,907 compensation expenseDeal advisory fees 101 ? 3,679 3,780 Adjusted OIBDA $ 81,537 $ 10,729 $ (35,023 ) $ 57,243

Year Ended December 31, 2019(in thousands) Broadband Tower Corporate & Consolidated EliminationsOperating income (loss)from continuing $ 42,597 $ 6,295 $ (49,611 ) $ (719 )operationsDepreciation 38,093 1,976 6,244 46,313 Amortization 473 ? ? 473 OIBDA 81,163 8,271 (43,367 ) 46,067 Share-based compensation ? ? 3,367 3,367 expenseAdjusted OIBDA $ 81,163 $ 8,271 $ (40,000 ) $ 49,434

Quarter ended December 31, 2020(in thousands) Broadband Tower Corporate & Consolidated EliminationsOperating income (loss)from continuing $ 10,710 $ 2,379 $ (11,475 ) $ 1,614 operationsDepreciation 10,377 492 1,573 12,442 Amortization 251 ? ? 251 OIBDA 21,338 2,871 (9,902 ) 14,307 Share-based compensation ? ? 601 601 expenseDeal advisory fees 101 ? 677 778 Adjusted OIBDA $ 21,439 $ 2,871 $ (8,624 ) $ 15,686

Quarter Ended December 31, 2019(in thousands) Broadband Tower Corporate & Consolidated EliminationsOperating income (loss)from continuing $ 9,392 $ 2,539 $ (12,481 ) $ (550 )operationsDepreciation 11,157 (125 ) 1,780 12,812 Amortization 166 ? ? 166 OIBDA 20,715 2,414 (10,701 ) 12,428 Share-based compensation ? ? 597 597 expenseAdjusted OIBDA $ 20,715 $ 2,414 $ (10,104 ) $ 13,025

2021 Outlook ? Adjusted OIBDA

($ in millions) Year Ending December 31, Year Ended 2021 2020 December 31, Guidance Actual 2019 Low High Operating Income (loss) $ 7 $ 14 $ (1 ) $ (1 )Depreciation $ 54 $ 54 $ 48 $ 46 Amortization $ 1 $ 1 $ 1 $ 1 Stock comp $ 6 $ 6 $ 6 $ 3 Deal advisory fees $ ? $ ? $ 3 $ ? Restructuring and other $ 1 $ 1 $ ? $ ? Adjusted OIBDA $ 69 $ 76 $ 57 $ 49

Segment Results

Year ended December31, Corporate &2020 Broadband Tower Eliminations Consolidated(in thousands)External revenue Residential & SMB $ 154,956 $ ? $ ? $ 154,956 Commercial Fiber 24,431 ? ? 24,431 RLEC & Other 15,971 ? ? 15,971 Tower lease ? 7,402 ? 7,402 Service revenue and 195,358 7,402 ? 202,760 otherRevenue for serviceprovided to the 8,989 9,653 (627 ) 18,015 discontinued WirelessoperationsTotal revenue 204,347 17,055 (627 ) 220,775 Operating expenses Cost of services 83,439 4,896 (132 ) 88,203 Selling, general and 39,472 1,430 44,114 85,016 administrativeDepreciation and 41,076 1,906 5,721 48,703 amortizationTotal operating 163,987 8,232 49,703 221,922 expensesOperating income (loss) $ 40,360 $ 8,823 $ (50,330 ) $ (1,147 )

Year ended December31, Corporate &2019 Broadband Tower Eliminations Consolidated(in thousands)External revenue Residential & SMB $ 142,290 $ ? $ ? $ 142,290 Commercial Fiber 23,004 ? ? 23,004 RLEC & Other 18,257 ? ? 18,257 Tower lease ? 6,965 ? 6,965 Service revenue and 183,551 6,965 ? 190,516 otherRevenue for serviceprovided to the 10,392 6,020 (66 ) 16,346 discontinued WirelessoperationsTotal revenue 193,943 12,985 (66 ) 206,862 Operating expenses Cost of services 79,235 3,777 (63 ) 82,949 Selling, general and 33,545 937 43,364 77,846 administrativeDepreciation and 38,566 1,976 6,244 46,786 amortizationTotal operating 151,346 6,690 49,545 207,581 expensesOperating income (loss) $ 42,597 $ 6,295 $ (49,611 ) $ (719 )

Quarter ended Corporate &December31, 2020 Broadband Tower Eliminations Consolidated(in thousands)External revenue Residential & SMB $ 40,786 $ ? $ ? $ 40,786 Commercial Fiber 6,669 ? ? 6,669 RLEC & Other 4,091 ? ? 4,091 Tower lease ? 1,912 ? 1,912 Service revenue and 51,546 1,912 ? 53,458 otherRevenue for serviceprovided to the 2,171 2,653 (150 ) 4,674 discontinued WirelessoperationsTotal revenue 53,717 4,565 (150 ) 58,132 Operating expenses Cost of services 21,867 1,359 (190 ) 23,036 Selling, general and 10,512 335 9,942 20,789 administrativeDepreciation and 10,628 492 1,573 12,693 amortizationTotal operating expenses 43,007 2,186 11,325 56,518 Operating income (loss) $ 10,710 $ 2,379 $ (11,475 ) $ 1,614

Quarter ended Corporate &December31, 2019 Broadband Tower Eliminations Consolidated(in thousands)External revenue Residential & SMB $ 36,586 $ ? $ ? $ 36,586 Commercial Fiber 5,992 ? ? 5,992 RLEC & Other 4,458 ? ? 4,458 Tower lease ? 1,599 ? 1,599 Service revenue and 47,036 1,599 ? 48,635 otherRevenue for serviceprovided to the 2,794 2,191 (18 ) 4,967 discontinued WirelessoperationsTotal revenue 49,830 3,790 (18 ) 53,602 Operating expenses Cost of services 19,887 1,073 (11 ) 20,949 Selling, general and 9,228 303 10,694 20,225 administrativeDepreciation and 11,323 (125 ) 1,780 12,978 amortizationTotal operating expenses 40,438 1,251 12,463 54,152 Operating income (loss) $ 9,392 $ 2,539 $ (12,481 ) $ (550 )

Supplemental Information

Broadband Operating Statistics

December 31, December 31, 2020 2019Broadband homes passed (1) 246,790 208,298 Incumbent Cable 208,691 206,575 Glo Fiber 28,652 1,723 Beam 9,447 ? Broadband customer relationships (2) 109,458 100,890 Residential & SMB RGUs: Broadband Data 102,812 84,045 Incumbent Cable 98,555 83,919 Glo Fiber 4,158 126 Beam 99 ? Video 52,817 53,673 Voice 32,646 31,380 Total Residential & SMB RGUs (excludes RLEC) 188,275 169,098 Residential & SMB Penetration (3) Broadband Data 41.7 % 40.3 %Incumbent Cable 47.2 % 40.6 %Glo Fiber 14.5 % 7.3 %Beam 1.0 % ? %Video 21.4 % 25.8 %Voice 14.8 % 16.2 % Fiber route miles 6,794 6,139 Total fiber miles (5) 394,316 320,444

_______________(1) Homes and businesses are considered passed (homes passed) if we can connect them to our network without further extending the distribution system. Homes passed is an estimate based upon the best available information. Homes passed will vary among video, broadband data and voice services.(2) Customer relationships represent the number of billed customers who receive at least one of our services.(3) Penetration is calculated by dividing the number of users by the number of homes passed or available homes, as appropriate.(4) Average Revenue Per Data RGU calculation = (Residential & SMB Revenue * 1,000) / average data RGUs / 3 months(5) Total fiber miles are measured by taking the number of fiber strands in a cable and multiplying that number by the route distance.For example, a 10 mile route with 144 fiber strands would equal 1,440 fiber miles.

Broadband -Residential and SMB ARPU Quarter Ended December Year Ended December 31, 31, 2020 2019 2020 2019Residential and SMB Revenue:Broadband $ 23,618 $ 19,377 $ 86,715 $ 75,604 Incumbent Cable 22,787 19,377 85,127 75,604 Glo Fiber 819 ? 1,576 ? Beam 12 ? 12 ? Video 14,840 14,783 59,422 59,980 Voice 2,912 2,850 11,441 11,311 Discounts and (524 ) (425 ) (2,561 ) (4,605 )adjustmentsTotal Revenue $ 40,846 $ 36,585 $ 155,017 $ 142,290 Average RGUs: Broadband Data 100,826 83,196 92,730 80,035 Incumbent Cable 97,210 83,196 90,983 80,035 Glo Fiber 3,534 ? 1,665 ? Beam 82 ? 82 ? Video 53,410 54,327 53,150 56,830 Voice 33,310 31,113 32,381 30,726 ARPU: Broadband $ 78.08 $ 77.64 $ 77.93 $ 78.72 Incumbent Cable $ 78.14 $ 77.64 $ 77.97 $ 78.72 Glo Fiber $ 77.25 $ ? $ 78.90 $ ? Beam $ 73.17 $ ? $ 73.17 $ ? Video $ 92.62 $ 90.70 $ 93.17 $ 87.95 Voice $ 29.14 $ 30.53 $ 29.44 $ 30.68

Tower Operating Statistics

December 31, December 31, 2020 2019Macro tower sites 223 225 Tenants (1) 427 404 Average tenants per tower 1.8 1.8

_______________(1)Includes 221, 201 and 174 intercompany tenants for our Wireless operations, (reported as a discontinued operation), as of December 31, 2020, 2019 and 2018, respectively.