Shenandoah Telecommunications Company (Shentel) reported significant financial developments in its latest 10-Q filing for the period ending September 30, 2024. The company experienced a notable increase in total assets, which rose to $1.695 billion from $1.214 billion at the end of 2023. This growth was primarily driven by the acquisition of Horizon Acquisition Parent LLC, completed on April 1, 2024, for a total purchase price of $416.2 million, which included $349.4 million in cash and $71.8 million in common stock.

Shentel's total revenue for the three months ended September 30, 2024, reached $87.6 million, a 30% increase from $67.4 million in the same period of 2023. This growth was fueled by substantial contributions from the newly acquired Horizon, which generated $16.9 million in revenue during the quarter. The company also reported a net loss of $5.3 million for Q3 2024, a stark contrast to the net income of $1.6 million reported in Q3 2023. The loss was attributed to increased operating expenses, including a $5.1 million rise in selling, general, and administrative expenses, largely due to costs associated with the Horizon acquisition.

For the nine months ended September 30, 2024, Shentel's total revenue increased to $242.6 million from $201.2 million in the prior year, marking a 20.6% rise. The net income for this period surged to $196.6 million, compared to $5.4 million in the same period of 2023, largely due to the gain on the sale of its tower portfolio, which amounted to $294.3 million.

The company’s cash and cash equivalents decreased significantly to $43.1 million from $139.3 million at the end of 2023, reflecting substantial cash outflows related to the Horizon acquisition and capital expenditures. Total current liabilities also increased to $123.1 million from $98.4 million, while total shareholders' equity rose to $925.4 million from $652.7 million, driven by the issuance of Series A Preferred Stock and retained earnings.

Shentel's capital expenditures for the nine months ended September 30, 2024, totaled $226.5 million, exceeding net cash provided by operating activities by $178.1 million. The company anticipates that capital expenditures will continue to outpace cash flows from operations as it expands its Glo Fiber broadband network.

Overall, Shentel's strategic acquisition and expansion efforts have positioned the company for growth, despite the challenges reflected in its recent financial performance.