Good morning, everyone. Welcome to Shenandoah Telecommunications Third Quarter 2024 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Kirk Andrews, Director of Financial Planning and Analysis for Shentel.

Good morning, and thank you for joining us. The purpose of today's call is to review Shentel's results for the third quarter 2024. Our results were announced in a press release distributed this morning, and the presentation we'll be reviewing is included on the Investor page at our shentel.com website. Please note that an audio replay of this call will be made available later today. The details are set forth in the press release announcing this call. With us on the call today are Chris French, President and Chief Executive Officer; Ed McKay, Executive Vice President and Chief Operating Officer; Jim Volk, Senior Vice President of Finance and CFO. After our prepared remarks, we will conduct a question-and-answer session. As always, let me refer you to Slide 2 of the presentation, which contains our safe harbor disclaimer and remind you that this conference call may include forward-looking statements subject to certain risks and uncertainties. These may cause our actual results to differ materially from the statements. Therefore, we have provided a detailed discussion of various risk factors in our SEC filings, which you are encouraged to review. You are cautioned not to place undue reliance on these forward-looking statements. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements. And with that, I will now turn the call over to Chris. Go ahead, Chris.

Thanks, Kirk. We appreciate everyone joining us this morning and hope everyone is well. I will start my comments with an update on our Horizon integration on Slide 4. We've made significant progress during our seven months of ownership. We launched the Glo Fiber brand in Ohio and implemented leadership changes in the second quarter. Most recently, we successfully completed four of the six back-office system integrations, including the billing system conversion, which was the most complex of the six systems to convert. Work is well underway for the ERP and payroll conversions, which we expect to complete by January 2025. We've also integrated the commercial sales teams with one team now serving our carrier and wholesale customers for the combined company. We believe this change will provide upside in our sales bookings as we can provide more on-net solutions. The former Horizon customer care team has migrated over to the Shentel platform, providing better efficiencies and enhanced tools to provide a quality customer experience. We've also aligned our compensation and benefit programs to start in January 2025. We now have clear line of sight to realize our synergy savings and have upsized our target savings to $11 million. We expect the second quarter of 2025 will be the first quarter when all the synergy savings will be realized. I'll now turn to Slide 5 to give an update on our strategy execution. We ended the second quarter with approximately 320,000 Glo Fiber passings. We constructed and released to sales 101,000 new passings over the past year in addition to 15,500 passings we acquired with the Horizon transaction. This gives a 58% growth rate from a year ago. As of the end of September, we have over 59,000 Glo Fiber customers, also representing a 58% year-over-year growth rate. We have a record quarter with 6,000 net subscriber additions, and good sales momentum has continued into the fourth quarter. With that, I'll now turn the call over to Jim to review the details of our financial results.

Thank you, Chris, and good morning. I'll start on Slide 7 for our financial results for the third quarter. Revenue grew 30% to $87.6 million in the third quarter 2024. The former Horizon markets contributed $16.9 million of revenue. Excluding the former Horizon markets, revenue grew $3.3 million or 4.9% over the same period a year ago. We had another record quarter Glo Fiber third quarter revenue of $15.1 million. The Glo Fiber legacy markets grew revenue, subscribers and ARPU by 56%, 54% and 7%, respectively. The legacy Glo Fiber revenue growth of $5.3 million was partially offset by declines in commercial and incumbent broadband markets revenue. Commercial revenue declined $1.5 million due to the expected decline in T-Mobile revenue. As reported throughout 2023, T-Mobile disconnected backhaul circuits as part of the decommissioning of the former Sprint network. The revenue declines reflects a full period of these disconnects and a reduction in related early termination fees. Incumbent broadband markets revenue declined $1.3 million due to lower video and installation revenue. Incumbent broadband data revenue was flat with the same period in 2023 as ARPU growth offset the 1% decline in data RGUs. Adjusted EBITDA grew 31% to $26.6 million in the third quarter 2024. The former Horizon markets contributed $4.7 million of adjusted EBITDA. Excluding the former Horizon markets, adjusted EBITDA grew 8% from the same period a year ago. The slower-than-usual growth in adjusted EBITDA was due primarily to the expected decline in T-Mobile revenue. Adjusted EBITDA margin increased from 27% in the second quarter 2024 to 30% in the third quarter of 2024, driven by Glo Fiber revenue growth and the Horizon synergy savings beginning to be realized. We expect margins to improve in future quarters with continued growth in Glo Fiber revenue and as we realize the full $11 million in target expense synergies. I'd now like to update you on our liquidity and debt positions on Slide 8. Liquidity was $473 million on September 30, including $43 million in cash, $175 million in available delayed draw term loans, $143 million in available revolver capacity and $112 million in remaining reimbursements available under government grants. As previously disclosed, we have been awarded $143 million in government grants to expand our broadband network to unserved homes and upgrade parts of our middle-mile network. We have collected $31 million in grant funds to date and expect to collect the remaining when we complete these projects over the next two years. At the end of the third quarter, we had $345 million of outstanding debt. The first major maturity is June 2026. Our net leverage ratio based on our annualized third quarter 2024 adjusted EBITDA is 2.8 times. For bank loan purposes, net leverage is approximately 2.6 times when you consider add-backs for expected synergies and Glo Fiber market losses. And now I'll turn the call over to Ed.

Thank you, Jim, and good morning. I'll start on Slide 10 with our integrated broadband network. We are currently constructing fiber in 28 markets and quickly evolving into a fiber-dominant network provider. We now pass approximately 554,000 homes and businesses with broadband services, and approximately 59% of these passings are served via fiber in our greenfield Glo Fiber expansion markets or as part of government-subsidized projects to bring broadband to unserved areas. In the third quarter, our engineering and construction teams added over 300 route miles of fiber and, our extensive regional fiber optic network now consists of approximately 16,400 fiber route miles. Slide 11 provides additional details on our fiber construction metrics. We added approximately 24,000 new fiber passings in the third quarter, improving our construction pace by nearly 18% over the third quarter of 2023. We now pass approximately 326,000 homes and businesses with fiber, including nearly 16,000 in former Horizon greenfield markets and over 6,000 in government-subsidized areas that were previously unserved. Our construction pipeline remains robust with 337,000 additional passings in various stages of engineering, permitting and construction, including 51,000 new passings in former Horizon markets. As we ramp up construction in Glo Fiber expansion markets, we continue to see strong customer growth as shown on Slide 12. As Chris mentioned, we had a record quarter for sales, adding approximately 6,000 net customers and reaching over 59,000 total customers at the end of the third quarter. Our total number of data, video and voice revenue-generating units reached 71,000 at the end of the quarter, up approximately 55% year-over-year. The broadband data penetration rate in our Glo Fiber expansion markets remained constant year-over-year at 18.5% as we constructed more than 101,000 new passings over the past 12 months. Our broadband data average revenue per user increased 6%…

Thank you. We’ll now begin the question-and-answer session. [Operator Instructions] Our first question comes from Rob Palmisano from Raymond James. Please go ahead.

Hey, guys. Good morning. So have you seen any uptick in activity from Verizon in particular, but really any other competitors in your markets? And also, separately, some states have been putting BEAD funding out for bid. Anything in your territory that looks attractive and any meaningful amounts of -- or territories that you might be bidding on? Thank you.

Hey, Rob, this is Ed. I'll take that one. So as far as the Verizon question, we have not seen any significant new Verizon activity as far as fiber builds in our markets. As far as the BEAD question, we do see some opportunities in our incumbent telephone footprint areas, but those opportunities, we don't feel are nearly as big as the opportunities where we've already received grants through The American Rescue Plan Act funds. So we're looking at BEAD closely, but some opportunity, but it's going to be a modest opportunity for us.

Great. Thank you.

Thank you for the question. Coming to the next question. Our next question comes from the line of Hamed Khorsand from BWS Financial. Please go ahead.

Hey, good morning. First off, I just want to see, as far as the 6,000 adds you had this quarter, are you seeing any benefits from Horizon? Or is that primarily Shentel?

So that 6,000 number is a combined number, but that is primarily the legacy Shentel markets. Our number of fiber passings in the legacy Shentel markets is significantly larger than the Horizon markets. In the Horizon markets, we only have about 15,000 to 16,000 passings right now. But that will grow over time.

And that was going to be my follow-up, is there a timing as to when you would see the revenue synergies as far as Horizon is concerned?

As far as the revenue synergies on the commercial side or just in general?

In general, but primarily just because you're now Glo Fiber in Ohio as well.

Well, the big key there is ramping the construction engine back up for fiber-to-the-home. Horizon has hit the pause button on that construction. We've now restarted construction. We have about 51,000 new fiber passings in our construction pipeline. We've actually started construction. We turned up additional passings in October. So we're -- we should see some additional increases in customers in the fourth quarter in the Horizon markets with that new construction.

And now that your footprint is getting bigger, is there going to be any kind of seasonality in the net adds number for Glo Fiber?

We typically see second -- excuse me, third quarter as a large growth opportunity. The August time frame is typically our -- one of our larger months. So we'll continue to see seasonality similar to what we've seen in the past.

Okay. Thank you.

You’re welcome.

At this time, there are no further questions on the queue. May I hand the call back to Mr. Jim Volk for closing remarks?

Yeah. Thanks, everyone, for joining the call this morning. I hope you have a good day, and we look forward to updating you in future quarters of our progress with Glo Fiber and the rest of our broadband business. Thank you.

That does conclude today's conference call. Thank you for your participating. You may now disconnect your lines.