Shenandoah Telecommunications to Make Positive Adjustment to Financial Results
January 03, 2013
By Jyothi Shanbhag
, TMCnet Contributor
Shenandoah Telecommunications (Shentel (News - Alert)) plans to make adjustments to its operating results for the current quarter and fiscal year to show a reduction of approximately $11.8 million in expense related to Shentel's participation in Sprint (News - Alert) Nextel's program for the sale of prepaid wireless plans.
Shenandoah Telecommunications has been making progress on the upgrade of its wireless network to offer 4G LTE (News - Alert) service as part of Sprint Nextel's Network Vision project. The company has even continued to experience customer growth in its postpaid wireless markets, adding 3,842 net retail postpaid customers during the third quarter of 2012, compared to the 2,686 added during the third quarter of 2011.
Now, the company will record an adjustment to its operating results for the current quarter and fiscal year as it commenced recalculation of certain expenses, including the cost of handsets, costs per gross addition and cash cost per user, associated with the program.
The adjustment will be revealed in Shentel's operating results for the fourth quarter of its fiscal year ending December 31, 2012 and will be recorded in Shentel's financial statements for fiscal 2012.
Officials at Shenandoah said the revised methodology is expected to contribute to improved profit margins for their wireless segment in future fiscal periods.
The company expects to spend a total of approximately $115 million on capital expenditures to implement 4G LTE services in its PCS service area in conjunction with Sprint Nextel’s (News - Alert) Network Vision project, $55 million during 2012 and $60 million in 2013, in addition to ongoing capital spending to support capacity needs on the wireless network.
Shenandoah Telecommunications is a holding company offering telecommunications services through its operating subsidiaries. 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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Edited by Rachel Ramsey