U.S. Markets closed

Shenandoah announces positive adjustment to financial results

Shenandoah announced that it will record an adjustment to its operating results for the current quarter and fiscal year to reflect a reduction of approximately $11.8M in expense related to Shentel's participation in Sprint Nextel's program for the sale of prepaid wireless plans. The adjustment will be reflected in Shentel's operating results for the fourth quarter of its fiscal year ending December 31 and will be recorded in Shentel's financial statements for FY12. In December, these discussions resulted in a redetermination of the costs allocated by Sprint Nextel to the company, resulting in the positive adjustment to the company's financial results and receipt by the company of a cash payment in reimbursement of $11.8M of previously-charged expense for the period from July 2010 to September 30, 2012. Had these revised cost allocations been effective for fiscal years 2010 and 2011 and the first three quarters of 2012, the operating expense would have been reduced by $1.2M, $4.9M, and $5.7M, respectively. The company expects that the revised methodology for calculating expense allocable to the company under the Sprint Nextel prepaid services program will contribute to improved profit margins for its wireless segment in future fiscal periods.