Uniti Group Inc. · NASDAQ:UNIT
Uniti — Q4 2024 Earnings Presentation
34 slides from Uniti's earnings presentation, Feb 21, 2025
Slide 1: Fourth Quarter and Full Year 2024 Financial Results
Fourth Quarter and Full Year 2024 Financial Results Conference Call Presentation February 21, 2025 Together, Building the Future
Slide 2: Cautionary Statement
Cautionary Statement 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 in
Slide 3: Cautionary Statement: Forward-Looking Statements
Cautionary Statement Forward-Looking Statements Certain statements in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended from time to time. Those forward-looking statements include all statements that are
Slide 4: 2024 Priorities Achieved
2024 Priorities Achieved ▪ 2024 Strategic Recurring Revenue Growth of ~5% Continued Best-in-Class ▪ 2024 Strategic Recurring Adjusted EBITDA Growth of ~8% Execution ▪ 2024 Consolidated New Sales Bookings MRR Growth of ~27% Current Business Plan ▪ Inaugural ABS Transaction Completed Fully Funded ▪ Ex
Slide 5: 2025 Priorities
2025 Priorities ▪ Targeting 2025 Strategic Recurring Revenue Growth at Uniti of 4% - 6% Continued Best-in-Class Execution ▪ Targeting 2025 Strategic Recurring Adjusted EBITDA Growth at Uniti of 8% - 10% ▪ Ability to Expand Uniti’s Current ABS Facility Optionality to Fund New Business Plan ▪ Potentia
Slide 6: Strategic Recurring Financial Growth
Strategic Recurring Financial Growth ($ in millions) Strategic Recurring Revenue Growth(3) 4% - 6% 4.9% 4.4% Strategic Fiber Revenue 2025 MRR Growth Outlook(1) $35 - $40 $365 - $370 2023 2024 2025 Estimate Strategic Recurring ~4% to ~6% Year-Over-Year Growth Adjusted EBITDA Growth(3) 8% - 10% 7.9% (
Slide 7: Success-Based Capital Intensity & Payback Trend
Success-Based Capital Intensity & Payback Trend ▪ Stable Bookings, Rising NRCs and Declining Paybacks Lead to Lower Capital Intensity Net Success-Based New Sales Bookings Capital Intensity(1) Budgeted Capex 35% 34% $40.5 ($ in millions) 27% $34.5 20% - 25% $26.4 $24.2 $20.2 $18.5 $11.3 $11.6 $10.6 $
Slide 8: Consolidated New Sales Bookings & Cumulative Lease-Up
Consolidated New Sales Bookings & Cumulative Lease-Up ▪ Consolidated New Sales Bookings MRR of $0.8 Million in the Fourth Quarter of 2024; Up 40% from Prior Year Period o 2024 Full Year Consolidated New Sales Bookings MRR of $3.3 Million; Up 27% from Prior Year ▪ Initial Aggregate Cash Yields on Maj
Slide 9: Hyperscaler / Gen AI Opportunity
Hyperscaler / Gen AI Opportunity Global Gen AI TAM Uniti Implications Current 2030 ▪ Substantial Increased TAM $ in Billions $ in Billions for Fiber $1,800 ▪ Training Phase Used to Strategically Expand the Uniti $300 Network with Economically $200 Attractive Deals $40 $15 $50 ▪ Inference Usage Will
Slide 10: Fourth Quarter 2024 Consolidated Results
Fourth Quarter 2024 Consolidated Results ($ in millions) Revenue(1) Adjusted EBITDA(2) (3) AFFO (2) $293 $286 $72 $239 $71 $231 $31 $27 $215 $222 $210 $214 $92 $92 4Q23 4Q24 4Q23 4Q24 4Q23 4Q24 As Reported As Reported As Reported As Reported As Reported As Reported Uniti Leasing Uniti Fiber Uniti Le
Slide 11: Achieved Original Full Year 2024 Outlook
Achieved Original Full Year 2024 Outlook ($ in millions, except per share data) 2024 Original 2024 Original 2024 Original Outlook Outlook Range Outlook Midpoint Actuals Range Achieved Consolidated Revenue $1,154 - $1,174 $1,164 $1,167 Strategic Fiber MRR Growth 4% - 6% 5% ~5% Consolidated Adjusted E
Slide 12: Growth Capital Investments Overview
Growth Capital Investments Overview 2015 - 2023 2024(1) Cumulative TCI Investment(2) ~$1.2 Billion ~$159 Million ~$1.4 Billion GCI Investment(3) ~$794 Million ~$231 Million ~$1.0 Billion Total Network Investment(4) ~$2.0 Billion ~$390 Million ~$2.4 Billion TCI Revenue(5) ~$237 Million ~$51 Million ~
Slide 13: Full Year 2025 Outlook
Full Year 2025 Outlook(1) ($ in millions, except per share data) Revenue Adjusted EBITDA(2) (3) $1,167 $1,206 $940 $976 $286 $304 $112 $125 $881 $902 $851 $872 2024 2025 2024 2025 As Reported Outlook As Reported Outlook Uniti Leasing Uniti Fiber Uniti Leasing Uniti Fiber AFFO(2) AFFO/Diluted Share(2
Slide 14: Solid Trajectory Expected to Continue in 2025
Solid Trajectory Expected to Continue in 2025 ($ in millions, except per share data) 2024 2025 Actuals Outlook(1) Consolidated Revenue $1,167 $1,196 - $1,216 Strategic Fiber MRR Growth 4% 4% to 6% Consolidated Adjusted EBITDA(2) $940 $966 to $986 AFFO / Diluted Common Share $1.35 $1.40 to $1.47 Cons
Slide 15: Uniti's Cost of Capital Continues to Improve
Uniti’s Cost of Capital Continues to Improve February 2023 Opportunities Exist to Further Lower Our Issued $2.6 Billion Cost of Capital Through Opportunistic Debt of Secured Notes with Coupon of Refinancings and Alternative Attractive 10.5% Sources, such as ABS February 2024 Announces $350 Million A
Slide 16: New Uniti Financial Profile
New Uniti Financial Profile 2025 Pro Forma ▪ Kinetic Consumer Revenue(2) ($ in millions) Estimate Expected to Grow ~2% in 2025 Kinetic $2,045 - $2,055 ▪ Strategic Fiber Infrastructure Fiber Infrastructure $800 - $810 Revenue(3) Expected to Grow ~5% Core Fiber Revenue $2,845 - $2,865 in 2025 Managed
Slide 17: Uniti + Windstream Merger Overview
Uniti + Windstream Merger Overview
Slide 18: Creating a Premier Insurgent Fiber Provider
Creating a Premier Insurgent Fiber Provider ~237K ~4.4M Fiber Route Residential Miles(1) Households ~75% ~150K % Network Inventory On-Net Available Locations(2) ~600K 300+ Near-Net Metro Locations(3) Markets ~12.8K ~2.6K Fiber-to-the-Tower Small Cell Connections Connections Company’s Combined Tier I
Slide 19: Bring Kinetic On-Net and Accelerate FTTH Build Plan
Bring Kinetic On-Net and Accelerate FTTH Build Plan Current Structure(1) New Uniti Uniti Windstream Current (1) Year End 2025 2029 Fiber Route Miles(2) 145,000 92,000 237,000 240,000 - 245,000 260,000+ % On-Net 95%+ ~15% ~60% ~70% 95%+ Revenue(3) % of Revenue from - ~35% ~30% ~25% < 5% Legacy Servic
Slide 20: New Uniti Positioned to Capture Hyperscaler AI Growth Opportunities
New Uniti is Well-Positioned to Capture Hyperscaler AI Growth Opportunities Differentiated Customer Relationships/ High-Strand Count Fiber MLAs Implemented WIN Uniti ▪ Expanded TAM Uniti WIN ▪ Diverse Product Set Serving Greater Number of Customers Product Capabilities Distributed End Points ▪ Excep
Slide 21: Merger Pre-Close Priorities
Merger Pre-Close Priorities STATUS Execute Operationally at Uniti and Windstream DONE Present Unified Investor Relations Messaging with Windstream DONE Refine Strategy to Simplify Dual Silo Capital Structure for New Uniti DONE Refine Expanded FTTH Build Plan On-Track Develop Integration Plan to Achi
Slide 22: Appendix
Appendix
Slide 23: Key 2025 Outlook Ranges
Key 2025 Outlook Ranges(1) $ in millions, except per share data Uniti Leasing Uniti Fiber Consolidated Revenue $897 - $907 $299 - $309 $1,196 - $1,216 Adjusted EBITDA(2) $966 - $986 Interest Expense, Net(3) - - $532 Net Success-Based Capex(4) $180 - $190 $80 - $90 $260 - $280 AFFO to Common Sharehol
Slide 24: Reconciliation of Uniti Non-GAAP Financial Measures
Reconciliation of Uniti Non-GAAP Financial Measures(1) $ in millions Uniti Uniti 4Q23 4Q24 Net income $30.7 $21.6 Depreciation and amortization 79.1 80.0 Interest expense 123.1 129.7 Income tax benefit (5.6) (3.7) EBITDA $227.4 $227.5 Stock-based compensation 3.1 3.4 Adjustments for unconsolidated e
Slide 25: Reconciliation of Uniti Non-GAAP Financial Measures
Reconciliation of Uniti Non-GAAP Financial Measures(1) $ in millions 2024 Leasing Uniti Fiber Corporate Uniti Net income (loss) $680.2 ($11.3) ($575.5) $93.4 Depreciation and amortization 182.4 132.4 - 314.8 Interest expense - - 511.4 511.4 Income tax expense (benefit) 1.2 (19.0) 0.2 (17.6) EBITDA $
Slide 26: Reconciliation of Uniti Non-GAAP Financial Measures
Reconciliation of Uniti Non-GAAP Financial Measures(1) $ in millions Uniti Uniti Uniti 4Q23 4Q24 2024 Net income attributable to common shares $30.4 $21.0 $91.3 Real estate depreciation and amortization 56.1 58.5 226.4 Gain on sale of real estate, net of tax (0.7) (0.0) (18.9) Participating securiti
Slide 27: Reconciliation of Uniti Non-GAAP Financial Measures
Reconciliation of Uniti Non-GAAP Financial Measures(1) $ in millions 2025 Outlook(2) Leasing(2) Uniti Fiber(2) Corporate(2) Uniti(2) Net income (loss) $678 ($9) ($561) $108 Depreciation and amortization 187 136 - 323 Interest expense - - 532 532 Income tax expense (benefit) 2 (6) - (4) EBITDA $867 $
Slide 28: Reconciliation of Uniti Non-GAAP Financial Measures
Reconciliation of Uniti Non-GAAP Financial Measures(1) $ in millions Uniti 2025 Outlook(2) Net income attributable to common shares $105 Real estate depreciation and amortization 234 Participating securities’ share in earnings 3 Participating securities’ share in FFO (10) FFO attributable to common
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures We refer to EBITDA, Adjusted EBITDA, Funds From Operations (“FFO”) (as defined by the National Association of Real Estate Investment Trusts (“NAREIT”)) and Adjusted Funds From Operations (“AFFO”) in our analysis of our results of operations, which are not required by, or
Slide 30: Glossary
Glossary 4G: The fourth generation of cellular wireless standards that is widely deployed by cellular operators today with the ability to transport data at rates up to 100 MBPS Internet access for mobile users. 5G: The fifth generation of cellular wireless standards that began to be deployed in 2019
Slide 31: Glossary
Glossary Core Adjusted EBITDA: Represents Adjusted EBITDA principally generated from leasing and lit services of the fiber network, as well as Adjusted EBITDA that are ancillary to the fiber network, including managed services. Core Adjusted EBITDA also includes non-recurring Adjusted EBITDA that is
Slide 32: Glossary
Glossary Growth Capital Investments (“GCI”): Capital expenditures on long-term, value-accretive fiber and related assets in the ILEC and CLEC territories owned by Uniti and leased to Windstream. Integration Capex: Capital expenditures made specifically with respect to recent acquisitions that are es
Slide 33: Glossary
Glossary NRC (non-recurring charge): Upfront customer payments that are primarily associated with an executed fiber-related contract that utilizes either newly constructed or already owned fiber, and the fiber is intended to be owned by Uniti on a long-term basis. Optronics: Various types of equipme
Slide 34: Glossary
Glossary Success-Based Capex: Gross capital expenditures related to installing existing or anticipated contractual customer service orders. Does not include capital expenditures related to integration, maintenance, and other, such as IT-related capex. Switch: A switch is an electronic device that se