insurance and pension costs.  During 2003, the Company added several positions to expand the management team to
support the Company’s growing operations.
Selling, general and administrative expenses were $26.0 million, down $0.1 million or 0.4%.  Customer support costs
were $8.7 million, an increase of $0.9 million or 11.4%.  The growth in Sprint wireless subscribers is primarily
responsible for this change.  Advertising expense was $4.6 million, an increase of $0.3 million or 6.4%.  The change is
primarily due to increased marketing efforts in support of the PCS operations in both the Quad State and Central Penn
markets.  PCS sales staff expenses were $2.8 million, an increase of $0.1 million or 1.5% compared to 2002.  Other
sales staff expenses increased $0.3 million to $1.3 million as the Company worked to expand its other services in areas
outside its historically defined service area. Bad debt expense decreased $2.6 million or 58.3%.
increased $0.5 million or 12.7%, due to new assets deployed in the operation.  There was no amortization of goodwill in
2003 or 2002, compared to goodwill amortization of $360 thousand expensed in 2001, due to the required accounting
change.
SHENANDOAH TELECOMMUNICATIONS COMPANY ■ 48
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS