53 ■ 2003 ANNUAL REPORT
The $5.0 million placed in escrow, as part of the sales agreement on the Virginia 10 RSA limited partnership, should be
released after February 28, 2005.  There are no known claims that have been filed against the amount in escrow.
The Company spent $12.5 million on capital projects in 2003, or about $7.0 million below what was budgeted for the
year.  The variance was primarily due to postponing construction of an additional diverse fiber route and the delay of
the second phase of renovations on the Shentel Center in Edinburg, Virginia.
The Company has no other off-balance sheet arrangements and has not entered into any transactions involving
unconsolidated, limited purpose entities or commodity contracts.
Capital expenditures budgeted for 2004 total approximately $30 million, including approximately $20 million for
additional PCS base stations, additional towers, and switch upgrades to enhance the PCS network.  Improvements and
replacements of approximately $5 million are planned for the telephone operation.  The remaining $5 million covers
building renovations, vehicles, office equipment, and other miscellaneous capital needs.
The Company anticipates using funds from operations, to the extent they are available to fund the capital expenditures
and the payment of debt and interest.  Due to lower than expected tax expenses in 2003, the Company will apply the
tax receivable to the 2004-year tax liability.  It is anticipated by no later than second quarter of 2004, additional federal
tax payments will be due based on anticipated profits expected to be generated in the operation.
Management anticipates its operations will generate similar operating cash flows in 2004, compared to those of
continuing operations in 2003, although there are events outside the control of the Company that could have an adverse
impact on cash flows from operations.  The events that could adversely impact operating cash flow results include, but
are not limited to; changes in overall economic conditions, regulatory requirements, changes in technologies,
availability of labor resources and capital, and other conditions.  The PCS subsidiary's operations are dependent upon
Sprint’s ability to execute certain functions such as billing, customer care, and collections; their ability to develop and
implement successful marketing programs and new products and services; and their ability to effectively and
economically manage other operating activities under the Company's agreements with Sprint.  Additionally, the
Company's ability to attract and maintain a sufficient customer base is critical to maintaining a positive cash flow from
operations.  These items individually and/or collectively could impact the Company’s results.
The Company expects to generate adequate cash to meet its short-term and long-term cash needs, including working
capital requirements, capital projects and debt payments, and to fund potential dividend payments from cash on hand,
operating cash flow, and amounts expected to be available under the Company’s existing financing facilities and its
anticipated financing facilities discussed above. The Company may, at its election, liquidate some of its investments to
generate additional cash for its capital needs as market conditions allow.
Recently Issued Accounting Standards
In December 2003, the FASB issued FASB Interpretation No. 46 (revised December 2003),“Consolidation of Variable
Interest Entities,” which addresses how a business enterprise should evaluate whether it has a controlling financial
interest in an entity through means other than voting rights and accordingly should consolidate the entity. FIN 46R
replaces FASB Interpretation No. 46, “Consolidation of Variable Interest Entities,” (VIE), which was issued in January
2003. The Company will be required to apply FIN 46R to variable interests in VIEs created after December 31, 2003.