Segment Information

3 Months Ended

Mar. 31, 2015

Segment Information [Abstract]

Segment Information

7.  Segment Information

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision makers.  The Company has three reportable segments, which the Company operates and manages as strategic business units organized by lines of business: (1) Wireless, (2) Cable, and (3) Wireline.   A fourth segment, Other, primarily includes Shenandoah Telecommunications Company, the parent holding company.

The Wireless segment provides digital wireless service to a portion of a four-state area covering the region from Harrisburg, York and Altoona, Pennsylvania, to Harrisonburg, Virginia, as a Sprint PCS Affiliate.  This segment also owns cell site towers built on leased land, and leases space on these towers to both affiliates and non-affiliated service providers.

The Cable segment provides video, internet and voice services in Virginia, West Virginia and Maryland, and leases fiber optic facilities throughout southern Virginia and West Virginia. It does not include video, internet and voice services provided to customers in Shenandoah County, Virginia.

The Wireline segment provides regulated and unregulated voice services, DSL internet access, and long distance access services throughout Shenandoah County and portions of Rockingham, Frederick, Warren and Augusta counties, Virginia. The segment also provides video services in portions of Shenandoah County, and leases fiber optic facilities throughout the northern Shenandoah Valley of Virginia, northern Virginia and adjacent areas along the Interstate 81 corridor through West Virginia, Maryland and portions of Pennsylvania.

Three months ended March 31, 2015
(in thousands)
	Wireless		Cable			Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	48,375	$	21,401		$	4,750	$	-		$	-		$	74,526
Other		3,030		1,762			4,969		-			-			9,761
Total external revenues		51,405		23,163			9,719		-			-			84,287
Internal revenues		1,104		148			5,866		-			(7,118	)		-
Total operating revenues		52,509		23,311			15,585		-			(7,118	)		84,287
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		16,187		13,618			7,334		17			(6,465	)		30,691
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		9,052		4,892			1,498		3,944			(653	)		18,733
Depreciation and amortization		7,831		5,480			2,924		102			-			16,337
Total operating expenses		33,070		23,990			11,756		4,063			(7,118	)		65,761
Operating income (loss)	$	19,439	$	(679	)	$	3,829	$	(4,063	)	$	-		$	18,526

Three months ended March 31, 2014
(in thousands)
	Wireless		Cable (1)			Wireline (1)		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	47,232	$	18,874		$	4,596	$	-		$	-		$	70,702
Other		2,756		1,580			5,414		-			-			9,750
Total external revenues		49,988		20,454			10,010		-			-			80,452
Internal revenues		1,091		26			5,765		-			(6,882	)		-
Total operating revenues		51,079		20,480			15,775		-			(6,882	)		80,452
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		18,657		12,390			7,482		-			(6,293	)		32,236
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		8,432		4,646			1,244		3,416			(589	)		17,149
Depreciation and amortization		7,196		5,404			2,697		90			-			15,387
Total operating expenses		34,285		22,440			11,423		3,506			(6,882	)		64,772
Operating income (loss)	$	16,794	$	(1,960	)	$	4,352	$	(3,506	)	$	-		$	15,680

(1) Prior year figures have been recast to conform to current year presentation.

A reconciliation of the total of the reportable segments’ operating income to consolidated income before taxes is as follows:

	Three Months Ended March 31,
(in thousands)	2015			2014
Total consolidated operating income	$	18,526		$	15,680
Interest expense		(1,915	)		(2,048	)
Non-operating income, net		534			610
Income before taxes	$	17,145		$	14,242

The Company’s assets by segment are as follows:

(in thousands)	March 31, 2015			December 31, 2014
Wireless	$	206,109		$	218,887
Cable		208,736			201,232
Wireline		95,614			98,081
Other		461,505			446,028
Combined totals		971,964			964,228
Inter-segment eliminations		(356,458	)		(344,986	)
Consolidated totals	$	615,506		$	619,242