Uniti Group Inc. · NASDAQ:UNIT
Uniti — Q3 2024 Earnings Presentation
26 slides from Uniti's earnings presentation, Oct 30, 2024
Slide 1: 3Q24 Financial Earnings
3Q24 Financial Earnings October 30, 2024
Slide 2: Forward-looking statements
2 This presentation includes forward-looking statements that are subject to risks and uncertainties that could cause actual future events and results to differ materially from those expressed in the forward-looking statements. Forward-looking statements are typically identified by words or phrases s
Slide 3: Presenters
3 Paul Sunu Chief Executive Officer Drew Smith Chief Financial Officer & Treasurer Genesis White VP, Investor Relations & Assistant Treasurer
Slide 4: Strategic priorities
4 Be the PREMIER broadband provider Be the TRUSTED communications and security advisor Be the INNOVATIVE wholesale leader OPERATIONS & SUPPORT Be the unwavering foundation that aligns, nurtures and enables us to be our best Focus o diversity and inclusion Prioritize quality and trust. Do it right th
Slide 5: Third quarter highlights
5 Adjusted EBITDAR of $361M, up 2% year to date(1) Strong Strategic Revenue Trends Continued focus on Strategic & Advanced IP portfolios, which now represent 88% of total Enterprise Market service revenue(3)(4) Wholesale had solid performance highlighted by high demand from telecom, cable and conten
Slide 6: 1 Gbps consumer premises passed by type
1,290 1,352 1,396 1,437 1,466 1,485 34 40 48 54 64 77 12 14 15 17 23 33 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 1 Gbps Consumer Premises Passed by Type (in 000’s) RDOF PPP Strategic 136K 1 Gbps Consumer Premises Constructed Year to Date 6 1,553 1,595 1,336 1,406
Slide 7: Homes in Kinetic footprint with access to available speeds
72% 76% 79% 81% 81% 44% 50% 53% 57% 58% 10% 22% 29% 34% 36% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2020 2021 2022 2023 3Q24 25 Mbps+ 100 Mbps+ 1Gbps % of Homes in Kinetic Footprint with Access to Available Speeds 7
Slide 8: Consumer fiber subscription growth
23 20 18 17 17 25.8% 26.3% 26.6% 26.9% 27.3% 20% 21% 22% 23% 24% 25% 26% 27% 28% 275 300 325 350 375 400 425 450 475 3Q23 4Q23 1Q24 2Q24 3Q24 401 383 363 418 435 Ended 3Q with Consumers on 1G capable facilities, up 17K from 2Q24 Penetration Consumer Fiber Subscription Growth Shows Strong Adoption of
Slide 9: Newest fiber cohorts showing strong penetration early
< 1 Year Cohorts 18% 16% 22% 15% 15% 20% 22% 25% 26% 27% 24% 29% 28% 26% 23% 23% 29% 22% 21% 26% 27% 29% 30% 30% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 26% 24% 19% 4Q23 1Q24 2Q24 Newest Fiber Cohorts Are Showing Strong Penetration Early Note: Cohort penetration reflect
Slide 10: Financial Overview
Financial Overview 2023 2023 2023 2024 2024 2024 Q3 Q4 YE Q1 Q2 Q3 Revenue and Sales Kinetic Market $ 530 $ 540 $ 2,143 $ 547 $ 529 $ 512 Enterprise Market 346 314 1,369 316 287 279 Wholesale Market 115 103 437 114 100 112 Service Revenue $ 991 $ 958 $ 3,948 $ 977 $ 916 $ 903 Product & Fiber Sales 1
Slide 11: TDM retirement accelerates cost reduction
TDM Retirement Accelerates Cost Reduction and Improves Customer Experience 11 Interconnection Expenses (in millions) 3Q23 3Q24 YoY Annualized Annualized Change % TDM $ 64 $ 32 (51%) IP/Ethernet $ 235 $ 210 (10%) Last Mile Access $ 299 $ 242 (19%) TDM $ 38 $ 9 (77%) IP/Ethernet $ 18 $ 14 (22%) Networ
Slide 12: Net liquidity and debt maturity
$0 $0 $… $0 $1,400 $800 $- $250 $500 $750 $1,000 $1,250 $1,500 2024 2025 2026 2027 2028 2029 2030 2031 $475 Debt Maturity as of November 10, 2022 Revolver Draw Note: Available capacity under credit facility excludes outstanding letters of credit of $133.9 million of which $104.7 million was issued t
Slide 13: Kinetic fully owned and operated metrics
Broadband Consumers(1) Fiber Broadband Consumers(1) Fiber Route Miles(1)(4) Fiber Households Today(1) Fiber Households – Build Plan(1) Windstream Owns 100GB POPs(1) Total Consumer Revenues(2) Kinetic Owned Assets(3) E&W Owned Assets(3) Kinetic Fully Owned and Operated Metrics 208K (20.9%) 115K (31.2
Slide 14: 2024 guidance
14 (all $ in millions) 2023 Results 2024 Guidance Adjusted EBITDAR(1) $1,488M Approximately flat y-o-y (adjusted for ACP expiration)(2) Capex, net(3) $798M Approximately $700M Unlevered Free Cash Flow(4) $155M Approximately $140M Fiber Consumer Customer Additions 96K 75K (lowered from previous: “Sim
Slide 15: Appendix: Quarterly supplemental schedules (Pro Forma)
Quarterly supplemental schedules (Pro Forma) Appendix 15
Slide 16: Supplemental Financial Information
Supplemental Financial Information ‘Windstream Holdings I, LLC ("Windstream", "we", "us", "our". or "the Company") has presented in this Investor Supplement unaudited adjusted results, which excludes depreciation and amortization, straight-line expense under the master leases with Uniti Group, Inc.
Slide 17: Unaudited adjusted results of operations (Holdings I)
Supplemental Financial Information WINDSTREAM HOLDINGS I LLC UNAUDITED ADJUSTED RESULTS OF OPERATIONS (NON-GAAP) (QUARTERLY SUPPLEMENTAL INFORMATION forthe quarterly period a the years 2024 snd 2 a milions) 2023 ADIUSTED RESULTS OF OPERATIONS: Tota exis ge, ered Tota End 3d Qe, Oe, Tage evens and sa
Slide 18: Debt leverage ratio and liquidity
Supplemental Financial Information WINDSTREAM HOLDINGS II, LLC UNAUDITED ADJUSTED RESULTS OF OPERATIONS (NON-GAAP) QUARTERLY SUPPLEMENTAL INFORMATION for the quarterly periods in the years 2024 and 2023 (a millions) Asof Debt Leverage Ratio: 9/30/2024 Long-term debt, including current maturities (E)
Slide 19: Revenue and adjusted EBITDAR supplement
Supplemental Financial Information WINDSTREAM HOLDINGS Il, LLC QUARTERLY SUPPLEMENTAL INFORMATION - REVENUE AND ADJUSTED EBITDAR SUPPLEMENT for the quarterly periods in the years 2024 and 2023, (in millions) 2024 2023 Reveames and sales: Total 3 Oi 2nd Qe Tat Total EN 3rd Qt 2a Gi Tate Kinetic Marke
Slide 20: Quarterly supplemental information: business segments
Supplemental Financial Information WINDSTREAM HOLDINGS Il, LLC (QUARTERLY SUPPLEMENTAL INFORMATION - BUSINESS SEGMENTS forthe quarterly periods in the vears 2024 and 2023 la maiions) 2024 2003, Toal seg iad OE Tage Foal wage 3 Qe id OE, Tage ‘Kinetic Reventes and sles ‘Broadband bandes s s iss s sms
Slide 21: Business segments: total segment revenues and expenses
Supplemental Financial Information WINDSTREAM HOLDINGS I, LLC (QUARTERLY SUPPLEMENTAL INFORMATION - BUSINESS SEGMENTS for the quarterly periods in the Years 2024 and 2023, (a millions) 2004 2023 Toul 3 2nd Qe Tie Toul “HQ 3a Qt: 3nd Qu Tau ‘Total segment revenues and expenses Reventes and sales: Ser
Slide 22: Operating statistics
Supplemental Financial Information WINDSTREAM HOLDINGS I, LLC (QUARTERLY SUPPLEMENTAL INFORMATION - OPERATING STATISTICS for the qusterly periods in the years 2024 and 2023 (Cnits in thousands, Dollars in millions, exceps per wit amounts) ‘Kinetic Operating Metrics: ‘Next Gen consumer broadband cust
Slide 23: Non-GAAP reconciliations
Supplemental Financial Information \WINDSTREAM HOLDINGS I. LLC (QUARTERLY SUPPLEMENTAL INFORMATION - NON-GAAP RECONCILIATIONS forthe quatery period inthe yeas 2028 and 2028 anions) 20 20 Teal IgE IgE Teal TOE Sd Qu ge ADJUSTED FREE CASH FLOW: ‘Operating insome (os) s om2 so $a s soa) sen s 69 sus ‘D
Slide 24: No Offer or Solicitation
No Offer or Solicitation This communication and the information contained in it are provided for information purposes only and are not intended to be and shall not constitute a solicitation of any vote or approval, or an offer to sell or solicitation of an offer to buy, or an invitation or recommend
Slide 25: Forward-Looking Statements
Forward-Looking Statements This communication contains forward-looking statements, including within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can often be identified by terms such as “may,” “will,” “appears,” “should,” “expects,” “plans,” “antici
Slide 26: Merger forward-looking statement cautions
There can be no assurance that the Merger will be implemented or that plans of the respective directors and management of Uniti and Windstream for the Merged Group will proceed as currently expected or will ultimately be successful. Investors are strongly cautioned not to place undue reliance on for