Segment Reporting

9 Months Ended

Sep. 30, 2019

The Company's reportable segments, which the Company operates and manages as strategic business units that are organized according to major product and service offerings, include: Wireless, Cable, Wireline and Other. A general description of the products and services offered and the customers served by each of these segments is as follows:

•

Wireless provides digital wireless service as a Sprint PCS Affiliate to a portion of a multi-state area covering large portions of central and western Virginia, south-central Pennsylvania, West Virginia, and portions of Maryland, North Carolina, Kentucky, and Ohio. In these areas, the Company is the exclusive provider of Sprint-branded wireless mobility communications network products and services on the 800 MHz, 1900 MHz and 2.5 GHz spectrum bands.


•	Cable provides video, broadband and voice services in the cable franchise areas in portions of Virginia, West Virginia, western Maryland, and eastern Kentucky, and leases fiber optic facilities and provides fiber transport services throughout its service area. It does not include video, broadband and voice services provided to customers in Shenandoah County, Virginia.


•	Wireline provides video and broadband services in the cable franchise area and regulated and unregulated voice and broadband services in Shenandoah County, Virginia, and leases fiber optic facilities and provides fiber transport services throughout portions of Virginia, West Virginia, Maryland and Pennsylvania.


•	Other operations are represented by Shenandoah Telecommunications Company, the parent holding company that provides investing and management services to its subsidiaries.

Three Months Ended September 30, 2019



(in thousands)	Wireless		Cable		Wireline		Other			Eliminations			Consolidated
External revenue
Service revenue	$	91,108	$	30,829	$	5,446	$	—		$	—		$	127,383
Equipment revenue	15,975		292		53		—			—			16,320
Tower revenue	1,660		—		—		—			—			1,660
Other revenue	395		2,392		7,002		—			—			9,789
Total external revenue	109,138		33,513		12,501		—			—			155,152
Internal revenue	1,290		1,591		6,643		—			(9,524		)	—
Total operating revenue	110,428		35,104		19,144		—			(9,524		)	155,152
Operating expenses
Cost of services	34,044		15,790		9,104		—			(8,774		)	50,164
Cost of goods sold	15,571		156		98		—			—			15,825
Selling, general and administrative	9,882		6,636		1,938		9,472			(750		)	27,178
Depreciation and amortization	27,200		6,226		3,077		123			—			36,626
Total operating expenses	86,697		28,808		14,217		9,595			(9,524		)	129,793
Operating income (loss)	$	23,731	$	6,296	$	4,927	$	(9,595	)	$	—		$	25,359

Three Months Ended September 30, 2018



(in thousands)	Wireless		Cable		Wireline		Other			Eliminations			Consolidated
External revenue
Service revenue	$	96,299	$	28,578	$	5,443	$	—		$	—		$	130,320
Equipment revenue	15,666		234		63		—			—			15,963
Tower revenue	1,639		—		—		—			—			1,639
Other revenue	1,232		2,104		7,473		—			—			10,809
Total external revenue	114,836		30,916		12,979		—			—			158,731
Internal revenue	1,263		1,266		6,643		—			(9,172		)	—
Total operating revenue	116,099		32,182		19,622		—			(9,172		)	158,731
Operating expenses
Cost of services	32,253		14,837		9,266		(12		)	(8,458		)	47,886
Cost of goods sold	14,940		78		19		(1		)	—			15,036
Selling, general and administrative	11,191		5,331		1,780		9,864			(714		)	27,452
Depreciation and amortization	30,363		6,102		3,435		128			—			40,028
Total operating expenses	88,747		26,348		14,500		9,979			(9,172		)	130,402
Operating income (loss)	$	27,352	$	5,834	$	5,122	$	(9,979	)	$	—		$	28,329

Nine Months Ended September 30, 2019



(in thousands)	Wireless		Cable		Wireline		Other			Eliminations			Consolidated
External revenue
Service revenue	$	282,533	$	91,250	$	16,489	$	—		$	—		$	390,272
Equipment revenue	47,814		817		156		—			—			48,787
Tower revenue	4,985		—		—		—			—			4,985
Other revenue	1,060		6,895		20,910		—			—			28,865
Total external revenue	336,392		98,962		37,555		—			—			472,909
Internal revenue	3,830		4,541		20,025		—			(28,396		)	—
Total operating revenue	340,222		103,503		57,580		—			(28,396		)	472,909
Operating expenses
Cost of services	101,085		47,138		27,234		—			(26,278		)	149,179
Cost of goods sold	45,740		443		153		—			—			46,336
Selling, general and administrative	31,836		17,898		5,769		29,685			(2,118		)	83,070
Depreciation and amortization	90,469		19,239		10,057		393			—			120,158
Total operating expenses	269,130		84,718		43,213		30,078			(28,396		)	398,743
Operating income (loss)	$	71,092	$	18,785	$	14,367	$	(30,078	)	$	—		$	74,166

Nine Months Ended September 30, 2018



(in thousands)	Wireless		Cable		Wireline		Other			Eliminations			Consolidated
External revenue
Service revenue	$	284,154	$	85,797	$	16,052	$	—		$	—		$	386,003
Equipment revenue	48,859		537		155		—			—			49,551
Tower revenue	4,934		—		—		—			—			4,934
Other revenue	1,963		6,276		20,643		—			—			28,882
Total external revenue	339,910		92,610		36,850		—			—			469,370
Internal revenue	3,746		3,394		21,591		—			(28,731		)	—
Total operating revenue	343,656		96,004		58,441		—			(28,731		)	469,370
Operating expenses
Cost of services	99,491		45,118		28,441		—			(26,688		)	146,362
Cost of goods sold	45,749		197		61		—			—			46,007
Selling, general and administrative	35,693		14,940		5,183		32,344			(2,043		)	86,117
Depreciation and amortization	95,853		18,305		10,069		405			—			124,632
Total operating expenses	276,786		78,560		43,754		32,749			(28,731		)	403,118
Operating income (loss)	$	66,870	$	17,444	$	14,687	$	(32,749	)	$	—		$	66,252