Shenandoah Telecommunications Company Announces First Quarter Results at Annual Shareholders' Meeting

Apr 17, 2001, 01:00 ET from Shenandoah Telecommunications Company

    EDINBURG, Va., April 17 /PRNewswire/ -- At its annual meeting of
 shareholders, Shenandoah Telecommunications Company (Nasdaq: SHET) announced
 un-audited revenues and earnings for the three months ended March 31, 2001.
 Revenues for the quarter were $17.7 million, an increase of $4.4 million or 33
 percent compared to first quarter 2000 results.  Revenue growth was driven by
 increases in cellular roaming, PCS services, fiber network leases, and
 increased usage of the Company's local switching networks.
     Operating expenses increased significantly during the first quarter as an
 expected result of the Company's preparation for, and launching of, Sprint PCS
 service in its Central Pennsylvania market.  Total operating expenses
 increased by $4.4 million to $13.8 million, due to large increases in network
 operating costs and selling, general and administrative costs.  Under its
 affiliation with Sprint PCS, the Company is now the exclusive provider of
 Sprint PCS services in the additional markets of Harrisburg, York, and
 Hanover, Pennsylvania.  With these additional markets, the Company's PCS
 network now serves a combined market population of just over 2 million.  The
 Company experienced an increase of 18 percent in its PCS customer base, adding
 4,200 net customers during the quarter.
     Net income for the quarter decreased to $0.5 million, primarily as a
 result of a $1.4 million non-operating expense, which includes a $1.3 million
 write down of the Company's investments and partnership interests.  These
 write downs reflect the current reduction in market values of the investments.
 This non-operating expense item is a $1.9 million decrease from first quarter
 2000's results.  The Company also incurred increased interest costs due to the
 financing of its PCS network buildout.
     For the remainder of 2001, the Company anticipates significantly increased
 operating expenses associated with the PCS network expansion in Central
 Pennsylvania.  These increased expenses will continue to negatively impact
 ongoing operations and net income, and should result in reductions from prior
 year results.
     As previously announced, full year 2000 consolidated net income increased
 to $9.9 million, an increase of 53%.  Net income from ongoing operations,
 which excludes gains and losses on external investments and the $4.3 million
 after tax gain on the sale of a limited partnership interest in the Virginia
 RSA 6 cellular operation, increased by 4% to $6.3 million in 2000.  Revenues
 increased 41% to $59.7 million from $42.2 million in 1999.  The Company's
 wireless operations were principally responsible for the revenue growth during
 2000.
     During the annual meeting of shareholders, the current Class III directors
 -- Dick D. Bowman, Christopher E. French, and James E. Zerkel, II, were
 re-elected for three-year terms.  There were approximately 2.1 million shares
 represented at the meeting, out of a total of 3.8 million shares outstanding.
     Shenandoah Telecommunications Company is a holding company which provides
 a broad range of telecommunications services through its eight operating
 subsidiaries.  The Company is traded on the NASDAQ National Market, under the
 symbol "SHET."  The Company's operating subsidiaries provide local telephone,
 cable, internet access, interexchange facilities, cellular and PCS services,
 along with many other associated services, to the Quad State region from
 Harrisonburg, Virginia to Harrisburg and Altoona, Pennsylvania.
 
     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 Company filings with the SEC.  Those factors
 may include changes in general economic conditions, increases in costs and
 other competitive factors.
     For further information, contact Laurence F. Paxton at 540-984-5222.
 
 

SOURCE Shenandoah Telecommunications Company
    EDINBURG, Va., April 17 /PRNewswire/ -- At its annual meeting of
 shareholders, Shenandoah Telecommunications Company (Nasdaq: SHET) announced
 un-audited revenues and earnings for the three months ended March 31, 2001.
 Revenues for the quarter were $17.7 million, an increase of $4.4 million or 33
 percent compared to first quarter 2000 results.  Revenue growth was driven by
 increases in cellular roaming, PCS services, fiber network leases, and
 increased usage of the Company's local switching networks.
     Operating expenses increased significantly during the first quarter as an
 expected result of the Company's preparation for, and launching of, Sprint PCS
 service in its Central Pennsylvania market.  Total operating expenses
 increased by $4.4 million to $13.8 million, due to large increases in network
 operating costs and selling, general and administrative costs.  Under its
 affiliation with Sprint PCS, the Company is now the exclusive provider of
 Sprint PCS services in the additional markets of Harrisburg, York, and
 Hanover, Pennsylvania.  With these additional markets, the Company's PCS
 network now serves a combined market population of just over 2 million.  The
 Company experienced an increase of 18 percent in its PCS customer base, adding
 4,200 net customers during the quarter.
     Net income for the quarter decreased to $0.5 million, primarily as a
 result of a $1.4 million non-operating expense, which includes a $1.3 million
 write down of the Company's investments and partnership interests.  These
 write downs reflect the current reduction in market values of the investments.
 This non-operating expense item is a $1.9 million decrease from first quarter
 2000's results.  The Company also incurred increased interest costs due to the
 financing of its PCS network buildout.
     For the remainder of 2001, the Company anticipates significantly increased
 operating expenses associated with the PCS network expansion in Central
 Pennsylvania.  These increased expenses will continue to negatively impact
 ongoing operations and net income, and should result in reductions from prior
 year results.
     As previously announced, full year 2000 consolidated net income increased
 to $9.9 million, an increase of 53%.  Net income from ongoing operations,
 which excludes gains and losses on external investments and the $4.3 million
 after tax gain on the sale of a limited partnership interest in the Virginia
 RSA 6 cellular operation, increased by 4% to $6.3 million in 2000.  Revenues
 increased 41% to $59.7 million from $42.2 million in 1999.  The Company's
 wireless operations were principally responsible for the revenue growth during
 2000.
     During the annual meeting of shareholders, the current Class III directors
 -- Dick D. Bowman, Christopher E. French, and James E. Zerkel, II, were
 re-elected for three-year terms.  There were approximately 2.1 million shares
 represented at the meeting, out of a total of 3.8 million shares outstanding.
     Shenandoah Telecommunications Company is a holding company which provides
 a broad range of telecommunications services through its eight operating
 subsidiaries.  The Company is traded on the NASDAQ National Market, under the
 symbol "SHET."  The Company's operating subsidiaries provide local telephone,
 cable, internet access, interexchange facilities, cellular and PCS services,
 along with many other associated services, to the Quad State region from
 Harrisonburg, Virginia to Harrisburg and Altoona, Pennsylvania.
 
     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 Company filings with the SEC.  Those factors
 may include changes in general economic conditions, increases in costs and
 other competitive factors.
     For further information, contact Laurence F. Paxton at 540-984-5222.
 
 SOURCE  Shenandoah Telecommunications Company