Uniti Group Inc. · NASDAQ:UNIT
Uniti — Q2 2024 Earnings Presentation
23 slides from Uniti's earnings presentation, Aug 1, 2024
Slide 1: 2Q24 Financial Earnings July 31, 2024
2Q24 Financial Earnings July 31, 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 phr
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: premier broadband, trusted advisor, innovative wholesale leader
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: Second quarter highlights
5 Adjusted EBITDAR of $362M, up 4% year to date (1) Strong Strategic Revenue Trends ▪ Continued focus on Strategic & Advanced IP portfolios, which now represent 89% of total Enterprise Market service revenue (3)(4) ▪ Wholesale had solid performance highlighted by high demand from telecom, cable and
Slide 6: 1 Gbps consumer premises passed by type
1,258 1,290 1,352 1,396 1,437 1,466 26 34 40 48 54 64 10 12 14 15 17 23 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1 Gbps Consumer Premises Passed by Type (in 000’s) RDOF PPP Strategic 94K 1 Gbps Consumer Premises Constructed Year to Date 6 1,553 1,294 1,336 1,406 1,459
Slide 7: Homes in Kinetic footprint with access to available speeds
72% 76% 79% 81% 81% 44% 50% 53% 57% 58% 10% 22% 29% 34% 36% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2020 2021 2022 2023 2Q24 25 Mbps+ 100 Mbps+ 1Gbps % of Homes in Kinetic Footprint with Access to Available Speeds 7
Slide 8: Consumer fiber subscription growth shows strong adoption
24 23 20 18 17 25.5% 25.8% 26.3% 26.6% 26.9% 20% 21% 22% 23% 24% 25% 26% 27% 28% 275 300 325 350 375 400 425 450 475 2Q23 3Q23 4Q23 1Q24 2Q24 383 363 340 401 418 Ended 2Q with Consumers on 1G capable facilities, up 17K from 1Q24 Penetration Consumer Fiber Subscription Growth Shows Strong Adoption of
Slide 9: Newest fiber cohorts are showing strong penetration early
< 1 Year Cohorts 18% 16% 22% 15% 15% 20% 22% 25% 26% 27% 24% 29% 28% 23% 23% 29% 22% 21% 26% 27% 29% 30% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 25% 24% 20% 3Q23 4Q23 1Q24 Newest Fiber Cohorts Are Showing Strong Penetration Early Note: Cohort penetration reflects consumers o
Slide 10: Financial Overview
Financial Overview 2023 2023 2023 2023 2024 2024 Q2 Q3 Q4 YE Q1 Q2 Revenue and Sales Kinetic Market 537$ 530$ 540$ 2,143$ 547$ 529$ Enterprise Market 338 346 314 1,369 316 287 Wholesale Market 106 115 103 437 114 100 Service Revenue 980$ 991$ 958$ 3,948$ 977$ 916$ Product & Fiber Sales 11 11 9 39 24
Slide 11: TDM retirement accelerates cost reduction and improves customer experience
TDM Retirement Accelerates Cost Reduction and Improves Customer Experience 11 Interconnection Expenses (in millions) 2Q23 2Q24 YoY Annualized Annualized Change % TDM 79$ 38$ (51%) IP/Ethernet 242$ 216$ (11%) Last Mile Access 321$ 255$ (21%) TDM 46$ 12$ (74%) IP/Ethernet 19$ 15$ (19%) Network Access
Slide 12: Debt maturity and net liquidity
$250 $0 $0 $0 $0 $708 $1,400 $- $250 $500 $750 $1,000 $1,250 $1,500 2023 2024 2025 2026 2027 2028 $475 Debt Maturity as of November 10, 2022 Revolver Draw Note : Available capacity under credit facility excludes outstanding letters of credit of $134.1 million of which $104.6 million w as issued to U
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 215K (20.7%) 1
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 Similar to 2023 Fiber Pr
Slide 15: Quarterly supplemental schedules (Pro Forma) Appendix
Quarterly supplemental schedules (Pro Forma) Appendix 15
Slide 16: Supplemental Financial Information
Supplemental Financial Information Windstream Holdings Il, 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: Supplemental Financial Information
Su pplemental Financial Information WINDSTREAM HOLDINGS Il, LLC UNAUDITED ADJUSTED RESULTS OF OPERATIONS (NON-GAAP) (QUARTERLY SUPPLEMENTAL INFORMATION for the quarterly periods in the years 2024 and 2023, Gamilions) 2m 2023 ADJUSTED RESULTS OF OPERATIONS: Foal Ta OH Tg Taal Tg Bdge al Ta ‘Revetes a
Slide 18: Supplemental Financial Information
Supplemental Financial Information WINDSTREAM HOLDINGS Il, LLC UNAUDITED ADJUSTED RESULTS OF OPERATIONS (NON-GAAP) (QUARTERLY SUPPLEMENTAL INFORMATION for the quarterly periods in the years 2024 and 2023, (iu millions) Debt Leverage Ratio: Long-term debt, including current maturities (E) ‘Addl Capit
Slide 19: Revenue and Adjusted EBITDAR Supplement
WINDSTREAM HOLDINGS II, LLC Supplemental Financial Information QUARTERLY SUPPLEMENTAL INFORMATION - REVENUE AND ADJUSTED EBITDAR SUPPLEMENT for the quarterly periods in the years 2024 and 2023 (a millions) Revenues and sales Kinetic Market Enterprise Market Wholesale Market Total service revennes Pr
Slide 20: Supplemental Financial Information: Business Segments
Supplemental Financial Information WINDSTREAM HOLDINGS IL, LLC (QUARTERLY SUPPLEMENTAL INFORMATION - BUSINESS SEGMENTS forthe quarterly periods in the years 2024 and 2023 (amillions) 20m 2028, Taal Bede Tage Foal cer Sad Ow Briers in. Kinet Revenes and sles: Broadband bundles S640 3048 Ss 3033 3008
Slide 21: Supplemental Financial Information: Business Segments
Supplemental Financial Information WINDSTREAM HOLDINGS Il, LLC (QUARTERLY SUPPLEMENTAL INFORMATION - BUSINESS SEGMENTS for the quarterly periods in the years 2024 and 2023 amillions) 2024 2023, Toul Tad Qe Tae Total Fh Oe, 3rd Qe THOe. Total segment revenues and expenses Reventes and sales: Service
Slide 22: Supplemental Financial Information: Operating Statistics
Supplemental Financial Information WINDSTREAM HOLDINGS 11, LLC (QUARTERLY SUPPLEMENTAL INFORMATION - OPERATING STATISTICS for the quarterly periods in the years 2024 and 2023, (Units in thousands, Dollars in milions, excep per wait amounts) 20 2023 Tot Ind Qe. err Toad En Sid Qu 2nd Qe. Tae. ‘Kineti
Slide 23: No Offer or Solicitation
23 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 recomm