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Shenandoah Telecommunications Reports Positive Adjustment To Financial Results

12/28/2012 9:30 AM ET

Shenandoah Telecommunications Co. or Shentel (SHEN: Quote) said it would record an adjustment to its operating results for the current quarter and fiscal year to reflect about $11.8 million reduction in expense pertaining to Shentel's participation in Sprint Nextel's program for the sale of prepaid wireless plans. According to the company, the expense reduction reflects the recalculation of certain expenses, including the cost of handsets, costs per gross addition, and cash cost per user, related to the program.

Also, the adjustment would be reflected in Shentel's operating results for the fourth quarter of 2012 and would be recorded in Shentel's fiscal 2012 statements.

The Company engaged in talks with Sprint Nextel on its prepaid results and the appropriate allocation of Sprint Nextel's cost to the company under the general terms of its deals. Shentel expects the revised methodology for calculating expense allocable to the company under the Sprint Nextel prepaid services program to contribute to improved profit margins for its wireless segment in future fiscal periods.

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by RTT Staff Writer

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