Shenandoah Telecommunications Company (Shentel) (Nasdaq: Shentel) announces financial and operating results for the third quarter and nine months ended September 30, 2009. President and CEO, Christopher E. French commented, "Despite a difficult economic environment, our company experienced solid operating results in the quarter, while continuing to invest in upgrading and improving all of our networks, especially PCS and the newly acquired cable operations. Development of and growth in these operations is an important part of our plans for long-term growth in earnings. During the quarter we continued to make improvements in our PCS network, further improving coverage and extending high speed data service to 94 percent of our covered population. We are fortunate that our financial strength has allowed us to continue to invest in growth at a time when many companies are retrenching, and we believe these investments position us well for when economic conditions improve."
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For the quarter ended September 30, 2009, net income from continuing operations was $6.3 million compared to $7.4 million in third quarter 2008. The third quarter of 2009 included an after-tax loss of $0.8 million from the cable operations acquired in December 2008, which are undergoing upgrades. The Company's total revenues for third quarter 2009 were $40.1 million, compared to $37.4 million for the same quarter in 2008, an increase of 7%. Third quarter operating expenses increased to $29.5 million in 2009 from $24.9 million in 2008. The increase in revenues is primarily a result of higher revenues in our PCS unit and the revenues of the newly acquired cable operations. The increase in PCS revenues is a result of an increase in average PCS subscribers of 7%. The increase in operating expenses results from costs associated with the new cable operations, improvements and expansion of our PCS and fiber optic networks, and associated depreciation Spending should then begin to decline over the next several quarters as enhancements to the PCS network focus on success-based spending to address capacity issues, followed by reduced spending as planned cable network upgrades are completed. Shenandoah’s Board of Directors declared a cash dividend of $0.32 per share, payable December 1, 2009 to shareholders of record on November 10, 2009. This represents an increase of $0.02 per share, or 7%, over the 2008 dividend. Shenandoah Telecommunications Company is a holding company that provides a broad range of telecommunications services through its operating subsidiaries. The Company is traded on the NASDAQ Global Select Market under the symbol "SHEN." The Company's operating subsidiaries provide local and long distance telephone, Internet and data services, cable television, wireless voice and data services, alarm monitoring, and telecommunications equipment, along with many other associated solutions in the Mid-Atlantic United States.
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