Uniti Group Inc. · NASDAQ:UNIT
Uniti — Q1 2024 Earnings Presentation
24 slides from Uniti's earnings presentation, May 3, 2024
Slide 1: 1Q24 Financial Earnings
1Q24 Financial Earnings May 2, 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
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: 1Q24 highlights
5 Adjusted EBITDAR of $406M (1) , up 7% y - o - y; Completed sale of IPv4 assets for over $100M Strong Strategic Revenue Trends ▪ Strategic & Advanced IP services revenue grew slightly y - o - y; ~85% of total Enterprise Market service revenue (2)(3) now comes from Strategic & Advanced IP ▪ Wholesal
Slide 6: 1 Gbps premises passed
162 169 170 170 173 174 178 180 184 1,012 1,111 1,174 1,237 1,294 1,336 1,406 1,459 1,508 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 1 Gbps Premises Passed (in 000’s) SMB Consumer 1,174 1,280 1,344 1,407 1,510 1,692 53K 1 Gbps Premises Constructed in
Slide 7: Homes in Kinetic footprint with access to speeds
72% 76% 79% 81% 81% 44% 50% 53% 57% 58% 10% 22% 29% 34% 35% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2020 2021 2022 2023 1Q24 25 Mbps+ 100 Mbps+ 1Gbps % of Homes in Kinetic Footprint with Access to Available Speeds 7
Slide 8: Consumer fiber subscription growth
29 24 23 20 18 24.4% 25.5% 25.8% 26.3% 26.6% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 250 275 300 325 350 375 400 425 450 1Q23 2Q23 3Q23 4Q23 1Q24 383 316 363 340 401 Ended 1Q with Consumers on 1G capable facilities, up 18K from 4Q23 Penetration Consumer Fiber Subscription Growth Shows Strong Ado
Slide 9: Newest fiber cohorts showing strong penetration
< 1 Year Cohorts 18% 16% 22% 15% 15% 20% 22% 25% 26% 27% 24% 29% 23% 23% 29% 22% 21% 26% 27% 29% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 27% 23% 20% 2Q23 3Q23 4Q23 Newest Fiber Cohorts Are Showing Strong Penetration Early Note: Cohort penetration reflects consumers on 1G capable
Slide 10: Financial Overview
Financial Overview 2023 2023 2023 2023 2023 2024 Q1 Q2 Q3 Q4 YE Q1 Revenue and Sales Kinetic Market 536$ 537$ 530$ 540$ 2,143$ 547$ Enterprise Market 371 338 346 314 1,369 316 Wholesale Market 113 106 115 103 437 114 Service Revenue 1,019$ 980$ 991$ 958$ 3,948$ 977$ Product & Fiber Sales 8 11 11 9 3
Slide 11: TDM retirement accelerates cost reduction
TDM Retirement Accelerates Cost Reduction and Improves Customer Experience 11 Interconnection Expenses (in millions) 1Q23 1Q24 YoY Annualized Annualized Change % TDM 100$ 52$ (48%) IP/Ethernet 243 221 (9%) Last Mile Access 344$ 273$ (21%) TDM 53$ 20$ (63%) IP/Ethernet 19 16 (15%) Network Access 72$
Slide 12: Debt maturity and liquidity
$250 $0 $0 $0 $0 $710 $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 $140.6 million of which $111.0 million w as issued to U
Slide 13: Kinetic fully owned and operated metrics
Fiber Route Miles (1) Fiber Broadband Consumers (1) Broadband Consumers (1) Windstream Owns 100GB POPs (1) Fiber Households – Build Plan (1) Fiber Households Today (1) E&W Owned Assets (3) Kinetic Owned Assets (3) Total Consumer Revenues (2) Kinetic Fully Owned and Operated Metrics 219K (20.5%) 116K
Slide 14: 2024 Guidance
14 2024 Guidance 2023 Results (all $ in millions) Approximately flat y - o - y (adjusted for ACP expiration) (2) $1,488M Adjusted EBITDAR (1) Approximately $700M $798M Capex, net (3) Approximately $140M $155M Unlevered Free Cash Flow (4) Similar to 2023 96K Fiber Consumer Customer Additions Similar
Slide 15: Appendix: Quarterly supplemental schedules (Pro Forma)
Quarterly supplemental schedules (Pro Forma) Appendix 15
Slide 16: Investor supplement basis of presentation
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, Ine, (
Slide 17: Unaudited adjusted results of operations (non-GAAP)
Supplemental Financial Information WINDSTREAM HOLDINGS Il, LLC UNAUDITED ADIUSTED RESULTS OF OPERATIONS (NON-GAAP) (QUARTERLY SUPPLEMENTAL INFORMATION, foe the quarterly periods in the years 2024 and 2028, 20 2003 ADJUSTED RESULTS OF OPERATIONS: Ts10n Toul “ah Ow. EI aoe ino evens and sales: Service
Slide 18: Debt leverage ratio and liquidity
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 (in millions) Debt Leverage Ratio: ‘Long-term debt, including current matuities (E) ‘Add; Capital
Slide 19: Revenue and Adjusted EBITDAR supplement
Supplemental Financial Information WINDSTREAM HOLDINGS II, LLC QUARTERLY SUPPLEMENTAL INFORMATION - REVENUE AND ADJUSTED EBITDAR SUPPLEMENT for the quarterly periods in the years 2024 and 2023 (In millions) 024 2023 Revemtes and sales Ts Qtr OT 3rd Qtr, 2nd Qi 1s Qt Kinetic Market $ aS 5 03S S00 TS
Slide 20: Quarterly supplemental information - business segments
Supplemental Financial Information |WINDSTREAM HOLDINGS I, LLC [QUARTERLY SUPPLEMENTAL INFORMATION - BUSINESS SEOMENTS ‘Sete guns pend athe yar 209 ad 2028 (inion) ‘Kinehe ‘Revenesadsles ‘Broadbend bundles Voie and ober Conner ‘sal busines DOF fine Sis USF End wer srcarger Serocerevenics Product sle
Slide 21: Business segments: total segment revenues and expenses
Supplemental Financial Information WINDSTREAM HOLDINGS II, LLC (QUARTERLY SUPPLEMENTAL INFORMATION - BUSINESS SEGMENTS for the quarterly periods inthe years 2024 and 2023 (asiions 2004 2023 Ts 08 Tou TOE HOw Tae icc “Total segment revenues and expenses Revenues and sales Senge revemies Ss 967 $3980
Slide 22: Quarterly supplemental information - operating statistics
Supplemental Financial Information \WINDSTREAM HOLDINGS HL. LLC (QUARTERLY SUPPLEMENTAL INFORMATION - OPERATING STATISTICS the quarely periods in the yen 2028 and 2023 (Unis in thousands, Dll in millions, exoep% pe wit amounts) ‘Kinetic Operating Mees: "Next Gen senseme Doadbant customers iNet custo
Slide 23: Non-GAAP reconciliations
Supplemental Financial Information QUARTERLY SUPPLEMENTAL INFORMATION - NON-GAAP RECONCILIATIONS fore qty pelos i the ens 2024 al 2003 (Gamitions) Tage ‘Operating income (ess) s moss ‘Depecaen sd amortization expense 200 EBIDA, S005 Adjusamens ‘Staialin expense wader nase ses with Unit om ma rea {Ca
Slide 24: Reconciliation of previously reported to revised segment information
Supplemental Financial Information WINDSTREAM HOLDINGS II LLC RECONCILIATION OF PREVIOUSLY REPORTED TO REVISED SEGMENT AND CONSOLIDATED INFORMATION for the year ended December 31, 2023 (In millions) Total Kinetic Enterprise Wholesale OfficeSuite__Eliminations_ Consolidated Revenues and sales: Total