Uniti Group Inc. · NASDAQ:UNIT
Uniti — Q2 2021 Earnings Presentation
23 slides from Uniti's earnings presentation, Aug 27, 2021
Slide 1: 2Q21 Earnings Presentation
1 Sensitivity: Confidential 2Q21 Earnings Presentation August 16, 2021
Slide 2: Safe Harbor Statement
2 Sensitivity: Confidential Safe Harbor Statement 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 statement
Slide 3: Participants
3 Sensitivity: Confidential Participants Tony Thomas Chief Executive Officer Bob Gunderman Chief Financial Officer Chris King VP, Investor Relations Drew Smith Treasurer
Slide 4: Second Quarter 2021 Highlights
4 Sensitivity: Confidential Second Quarter 2021 Highlights 1 Gbps & Interconnection Progress Adjusted EBITDAR of $424M Adjusted EBITDAR growth both sequentially (for third consecutive quarter) and year-over-year Consolidated adjusted EBITDAR margin of 37.8% up ~250 bps y-o-y Consolidated cash expens
Slide 5: 2021 Priorities
5 Sensitivity: Confidential 2021 Priorities Accelerate Path to Growth Expand 1 Gig Broadband Improving Enterprise Revenue Trends Fast Track TDM Exit Maintain Product & Software Leadership Consistently Deliver Excellent Customer Experiences .. $1.75 billion 5-year fiber program begins in earnest this
Slide 6: Significant Market Share Growth over Multi-Year Period
6 Sensitivity: Confidential -45 14 28 60 23 -50 -30 -10 10 30 50 70 2017 2018 2019 2020 YTD 2021 …is Producing Significant Market Share Growth over Multi-Year Period Net Broadband Additions Enhanced Kinetic Broadband Speed Capabilities Driving Market Share Gains 57% 61% 70% 72% 74% 12% 15% 42% 44% 4
Slide 7: Consumers Enjoying Faster Speed Tiers
7 Sensitivity: Confidential Consumers Enjoying Faster Speed Tiers 44% 47% 51% 53% 54% 56% 58% 60% 62% 63% 19% 22% 26% 29% 32% 36% 38% 41% 42% 44% 7% 9% 15% 18% 20% 22% 23% 25% 26% 27% 0% 20% 40% 60% 80% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 25 Mbps + 50 Mbps + 100 Mbps + Consumer Speed D
Slide 8: More Speed Available to Activate
8 Sensitivity: Confidential More Speed Available to Activate Across all speed tiers, only 48% of Kinetic Consumers are on max speed available 312 149 145 332 193 Max Speed Available by Customer Count <25Mbps 25 Mbps to 49 Mbps 50 Mbps to 99 Mbps 100 Mbps to 1 Gbps 1 Gbps+ 28% 36% 49% 65% 82% 0% 10%
Slide 9: Gbps Broadband Expansion Acceleration
9 Sensitivity: Confidential 1 Gbps Broadband Expansion Acceleration 90 94 99 106 127 131 134 128 169 260 309 462 587 721 0 100 200 300 400 500 600 700 800 900 1000 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1 Gbps Premises Passed (in 000’s) SMB Consumer 263 359 415 589 718 855 134K 1 Gbps Consumer Premises
Slide 10: Strong Consumer Revenue Results Driven by Customer Growth and Stable ARPU
10 Sensitivity: Confidential $286 $287 $292 $295 $297 $302 $76.75 $76.34 $76.78 $77.41 $78.01 $79.02 $65.00 $70.00 $75.00 $80.00 $275 $280 $285 $290 $295 $300 $305 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Consumer Revenue ($ in millions) Household ARPU (actuals) Strong Consumer Revenue Results Driven by Custom
Slide 11: Enterprise Strategic Revenue Growth Continues
11 Sensitivity: Confidential 16.7% 18.2% 19.7% 20.7% 22.2% 0% 4% 8% 12% 16% 20% 24% 2Q20 3Q20 4Q20 1Q21 2Q21 63% 57% 62% 78% 62% 30% 40% 50% 60% 70% 80% 90% 2Q20 3Q20 4Q20 1Q21 2Q21 Enterprise Strategic Revenue Growth Continues .. Cloud services, increasing bandwidth demand & software enabled networ
Slide 12: Financial Overview
12 Sensitivity: Confidential Financial Overview (1) 2020 Q1 Q2 Q3 Q4 YE Q1 Q2 Revenue Kinetic 555 $ 550 $ 553 $ 549 $ 2,208 $ 546 $ 555 $ Enterprise 544 533 516 496 2,089 481 471 Wholesale 73 75 75 73 295 76 76 Segment Service Revenue 1,172 1,157 1,144 1,119 4,591 1,103 1,101 Product Sales 21 20 18
Slide 13: Significant Interconnection Cost Reduction Opportunities Remain
13 Sensitivity: Confidential Significant Interconnection Cost Reduction Opportunities Remain TDM Retirement to Accelerate Cost Reduction and Improve Customer Experience Interconnection Expenses (in millions)(1) .. 2Q21 annualized run-rate of ~$990M in interconnection, network facility and fiber expe
Slide 14: Strong Balance Sheet with No Near-Term Maturities
14 Sensitivity: Confidential Strong Balance Sheet with No Near-Term Maturities $0 $0 $0 $0 $0 $0 $730 $1,400 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 2020 2021 2022 2023 2024 2025 2026 2027 2028 $500 Term Loan(1) Senior First Lien Notes Undrawn Revolver Debt Maturity as of June 30, 2021 Net Liqui
Slide 15: 2021 Financial and Operational Guidance
15 Sensitivity: Confidential 2021 Financial and Operational Guidance • Adjusted EBITDAR down ~ 1% from 2020 level • Capex flat from 2020 level; anticipate ~$200-$225 million of Uniti GCI funding • ~$170 million in cash interest; minimal cash taxes • Broadband Net Adds of ~ 60,000 • Low single-digit
Slide 16: Appendix
16 Sensitivity: Confidential Appendix Contents: • Quarterly supplemental schedules (Pro Forma)
Slide 17: Supplemental Financial Information
17 Sensitivity: Confidential Supplemental Financial Information
Slide 18: Unaudited Pro Forma Adjusted Results of Operations (Non-GAAP)
18 Sensitivity: Confidential Supplemental Financial Information WINDSTREAM HOLDINGS II, LLC UNAUDITED PRO FORMA ADJUSTED RESULTS OF OPERATIONS (NON-GAAP) QUARTERLY SUPPLEMENTAL INFORMATION for the quarterly periods in the years 2021 and 2020 (In millions) ADJUSTED RESULTS OF OPERATIONS: Total 2nd Qt
Slide 19: Quarterly Supplemental Information - Revenue Supplement
19 Sensitivity: Confidential Supplemental Financial Information WINDSTREAM HOLDINGS II, LLC UNAUDITED PRO FORMA ADJUSTED RESULTS OF OPERATIONS (NON-GAAP) QUARTERLY SUPPLEMENTAL INFORMATION - REVENUE SUPPLEMENT for the quarterly periods in the years 2021 and 2020 (In millions) Service revenues: Total
Slide 20: Supplemental Financial Information
20 Sensitivity: Confidential Supplemental Financial Information
Slide 21: Pro Forma Adjusted Results: Total Segment Revenues and Expenses
21 Sensitivity: Confidential Supplemental Financial Information WINDSTREAM HOLDINGS II, LLC UNAUDITED PRO FORMA ADJUSTED RESULTS OF OPERATIONS (NON-GAAP) QUARTERLY SUPPLEMENTAL INFORMATION for the quarterly periods in the years 2021 and 2020 (In millions) Total 2nd Qtr. 1st Qtr. Total 4th Qtr. 3rd Q
Slide 22: Quarterly Supplemental Information: Kinetic Operating Metrics
22 Sensitivity: Confidential Supplemental Financial Information WINDSTREAM HOLDINGS II, LLC QUARTERLY SUPPLEMENTAL INFORMATION for the quarterly periods in the years 2021 and 2020 (Units in thousands, Dollars in millions, except per unit amounts) Total 2nd Qtr. 1st Qtr. Total 4th Qtr. 3rd Qtr. 2nd Q
Slide 23: Pro Forma Adjusted Consolidated Results: Adjusted Free Cash Flow
23 Sensitivity: Confidential Supplemental Financial Information WINDSTREAM HOLDINGS II, LLC UNAUDITED PRO FORMA ADJUSTED CONSOLIDATED RESULTS (NON-GAAP) QUARTERLY SUPPLEMENTAL INFORMATION for the quarterly periods in the years 2021 and 2020 (In millions) Total 2nd Qtr. 1st Qtr. Total 4th Qtr. 3rd Qt