Consolidated Communications Reports First Quarter 2021 Results

Rhea-AI Summary

Consolidated Communications Holdings (CNSL) reported Q1 2021 results, revealing a revenue of $324.8 million, a slight decrease of 0.3% from the previous year. Broadband revenue increased by 2.6% to $1.7 million. The company continues its fiber expansion, upgrading 46,000 passings to Gig+ FTTP, aiming for 70% coverage by 2025. However, net loss was $62.1 million with a GAAP net loss per share of ($0.80). Operating expenses rose by 2.6%, while capital expenditures surged to $76 million due to ongoing network projects. Guidance for 2021 includes capital expenditures between $400 million and $420 million.

Positive

• Broadband revenue increased by 2.6%, signaling growth in core services.
• The company upgraded 46,000 passings to Gig+ FTTP, a key part of their growth strategy.
• Strong execution of the fiber-first strategy is evident with ongoing expansion plans.

Negative

• Net loss of $62.1 million compared to net income of $15.6 million a year ago.
• Total net debt leverage ratio stands at 3.41x, indicating significant debt levels.
• Operating expenses increased by $5.3 million, impacting profitability.

Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) (the “Company” or “Consolidated”) reported results for the first quarter 2021.

“Our first-quarter results demonstrate we’re delivering on our fiber growth plans as we upgraded approximately 46,000 passings to Gig+ FTTP and are sustaining an eight-quarter track record of year-over-year broadband revenue growth,” said Bob Udell, president and chief executive officer at Consolidated Communications. “The fast start to the year demonstrates our team’s strong execution of our fiber-first strategy.”

“We are on track to close on the final stage of the Searchlight investment following FCC and state approvals which are expected in the third quarter 2021,” added Udell. “Our fiber expansion plan is fully funded and we are embarking on the Company’s most important growth and transformation period yet as we bring highly competitive, gigabit broadband services to at least 70% of our footprint by 2025.”

Financial Results for the First Quarter

• Revenue totaled $324.8 million, a decline of 0.3% compared to the first quarter 2020.
  • Broadband revenue increased 2.6% or $1.7 million.
  • Video services revenue declined $2.3 million reflecting our strategy change to streaming Over-The-Top services bundled with broadband services.
  • Voice services revenue declined $4.2 million or 4.7% across all customer channels.
  • Subsidies declined $1.1 million primarily due to reductions in support from Texas High Cost Funds.
  • Other Products and Services revenue increased $6.2 million. Non-recurring revenue associated with network builds for public-private partnerships totaled $6.5 million.
• Operating expenses increased $5.3 million or 2.6% compared to the same period last year. First quarter operating expenses included $8 million in expense related to public-private partnership network builds and initial fiber expansion costs.
• Income from operations totaled $38.3 million in the first quarter, an increase of $974,000 or 2.6%. The year-over-year change was primarily due to a decline in depreciation and amortization expense of $7.1 million, partially offset by an increase of $5.3 million in operating expenses and slightly lower revenue.
• Net interest expense was $48.4 million, an increase of $16.3 million, as a result of the recapitalization of the balance sheet associated with the Oct. 2, 2020 refinancing, the receipt of the $350 million Searchlight strategic investment and additional borrowings during the quarter. Interest expense increased $5.6 million due to the higher mix of senior notes in the Company’s external debt and additional borrowings under the Company’s credit agreement during the quarter. Non-cash interest on the Searchlight note combined with amortization of deferred financing costs and the discount totaled $10.2 million. The Company expects to continue to make payment in kind (PIK) interest payments on the Searchlight note.
• At March 31, 2021, the Company recognized a non-cash loss of $57.6 million related to a change in the fair value of the Searchlight contingent payment obligations.
• Cash distributions from the Company’s wireless partnerships totaled $9.4 million, a decline of $700,000 from a year ago.
• Other income, net was $12.3 million compared to $15.2 million in the first quarter 2020. The change was primarily due to lower income from the Company’s minority interest in wireless partnerships, a gain of $3.7 million on an asset sale in the first quarter of 2020 offset by a decrease in non-operating pension/OPEB expense of $1.9 million.
• On a GAAP basis, net loss was $62.1 million, compared to net income of $15.6 million for the same period a year ago. GAAP net loss per share was ($0.80). Adjusted diluted net income (loss) per share excludes certain items as outlined in the table provided in this release. Adjusted diluted net income per share was $0.21 in the first quarter of 2021, compared to $0.23 in the first quarter of 2020.
• Adjusted EBITDA was $126.6 million, a decrease 3.8% from the first quarter 2020 primarily due to certain expenses associated with the startup of the fiber expansion plans.
• The total net debt leverage ratio was 3.41x with $325.1 million cash and cash equivalents.
• Capital expenditures totaled $76 million in the first quarter, compared to $42.4 million in the first quarter of 2020, driven by the Company’s fiber build expansion plan and investment in digital transformation technology.

On April 26, 2021, Consolidated’s shareholders approved the issuance to Searchlight of additional shares of common stock equal to 20% or more of the Company’s outstanding common stock. Those shares are issuable to Searchlight pursuant to a contingent payment right, which is convertible upon receipt of FCC and certain state regulatory approvals. FCC approval is also required for the closing of the second stage of the transaction and the investment by Searchlight of its remaining $75 million investment. The Company has received Hart-Scott-Rodino approval of the transaction.

2021 Outlook

Consolidated Communications affirmed its previous outlook for 2021 which is outlined below.

• Capital expenditures are expected to be in a range of $400 million to $420 million, reflecting a higher level of spending to support the fiber expansion plan.
• Adjusted EBITDA is expected to be in a range of $500 million to $510 million, reflecting the start-up and acceleration of the Company’s growth plan.
• Cash interest expense is expected to be in a range of $130 million to $135 million, and was updated on April 5, 2021 with the Company’s announcement of a repricing of its term loan.
• Cash income taxes are expected to be in a range of $2 million to $4 million.

Conference Call

Consolidated’s first-quarter 2021 earnings conference call will be webcast live today at 10 a.m. ET. The webcast and materials will be available on the Investor Relations section of the Company’s website at http://ir.consolidated.com. The live conference call dial-in number for analysts and investors is 833-794-0898, conference ID 7369367. A telephonic replay of the conference call will be available through May 6 and can be accessed by calling 800-585-8367, enter ID 7369367.

About Consolidated Communications

Consolidated Communications Holdings, Inc. (NASDAQ: CNSL) is a leading broadband and business communications provider serving consumers, businesses, and wireless and wireline carriers across rural and metro communities and a 23-state service area. Leveraging an advanced fiber network spanning 47,400 fiber route miles, Consolidated Communications offers a wide range of communications solutions, including: high-speed Internet, data, phone, security, managed services, cloud services and wholesale, carrier solutions. From our first connection 125 years ago, Consolidated is dedicated to turning technology into solutions, connecting people and enriching how they work and live. Visit www.consolidated.com for more information.

Use of Non-GAAP Financial Measures

This press release, as well as the conference call, includes disclosures regarding “EBITDA,” “adjusted EBITDA,” “total net debt to last 12 month adjusted EBITDA ratio” or “Net debt leverage ratio,” “free cash flow” and “adjusted diluted net income (loss) per share,” all of which are non-GAAP financial measures and described in this section as not being in compliance with Regulation S-X. Accordingly, they should not be construed as alternatives to net cash from operating or investing activities, cash and cash equivalents, cash flows from operations, net income or net income per share as defined by GAAP and are not, on their own, necessarily indicative of cash available to fund cash needs as determined in accordance with GAAP. In addition, not all companies use identical calculations, and the non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. A reconciliation of the differences between these non-GAAP financial measures and the most directly comparable financial measures presented in accordance with GAAP is included in the tables that follow.

Adjusted EBITDA is comprised of EBITDA, adjusted for certain items as permitted or required by the lenders under our credit agreement in place at the end of each quarter in the periods presented. The tables that follow include an explanation of how adjusted EBITDA is calculated for each of the periods presented with the reconciliation to net income. EBITDA is defined as net earnings before interest expense, income taxes, depreciation and amortization on a historical basis.

We present adjusted EBITDA for several reasons. Management believes adjusted EBITDA is useful as a means to evaluate our ability to fund our estimated uses of cash (including interest on our debt). In addition, we have presented adjusted EBITDA to investors in the past because it is frequently used by investors, securities analysts and other interested parties in the evaluation of companies in our industry, and management believes presenting it here provides a measure of consistency in our financial reporting. Adjusted EBITDA, referred to as Available Cash in our credit agreement, is also a component of the restrictive covenants and financial ratios contained in our credit agreement that requires us to maintain compliance with these covenants and limit certain activities, such as our ability to incur debt. The definitions in these covenants and ratios are based on adjusted EBITDA after giving effect to specified charges. In addition, adjusted EBITDA provides our board of directors with meaningful information, with other data, assumptions and considerations, to measure our ability to service and repay debt. We present the related “total net debt to last 12 month adjusted EBITDA ratio” or “Net debt leverage ratio” principally to put other non-GAAP measures in context and facilitate comparisons by investors, security analysts and others; this ratio differs in certain respects from the similar ratio used in our credit agreement. These measures differ in certain respects from the ratios used in our senior notes indenture.

These non-GAAP financial measures have certain shortcomings. In particular, adjusted EBITDA does not represent the residual cash flows available for discretionary expenditures, since items such as debt repayment and interest payments are not deducted from such measure. Because adjusted EBITDA is a component of the ratio of total net debt to last twelve month adjusted EBITDA, these measures are also subject to the material limitations discussed above. In addition, the ratio of total net debt to last twelve month adjusted EBITDA is subject to the risk that we may not be able to use the cash on the balance sheet to reduce our debt on a dollar-for-dollar basis. Management believes this ratio is useful as a means to evaluate our ability to incur additional indebtedness in the future.

Free cash flow represents net cash provided by operating activities adjusted for capital expenditures, cash dividends, and proceeds received from the sale of assets, refinancing and investment. Free cash flow is a measure of operating cash flows available for corporate purposes after providing sufficient fixed asset additions. The tables that follow include a calculation of free cash flow for each of the periods presented with a reconciliation to net cash provided by operating activities. Free cash flow provides useful information to investors in the evaluation of our operating performance and liquidity.

We present the non-GAAP measure “adjusted diluted net income (loss) per share” because our net income (loss) and net income (loss) per share are regularly affected by items that occur at irregular intervals or are non-cash items. We believe that disclosing these measures assists investors, securities analysts and other interested parties in evaluating both our company over time and the relative performance of the companies in our industry.

Safe Harbor

Certain statements in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These forward-looking statements reflect, among other things, our current expectations, plans, strategies, and anticipated financial results. There are a number of risks, uncertainties, and conditions that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include a number of factors related to our business, including the uncertainties relating to the impact of the novel coronavirus (COVID-19) pandemic on the Company’s business, results of operations, cash flows, stock price and employees; the possibility that any of the anticipated benefits of the strategic investment from Searchlight or our refinancing of outstanding debt, including our senior secured credit facilities, will not be realized; the outcome of any legal proceedings that may be instituted against the Company or its directors; the ability to obtain regulatory approvals and meet other closing conditions to the investment on a timely basis or at all, including the risk that regulatory approvals required for the investment are not obtained subject to conditions that are not anticipated or that could adversely affect the Company or the expected benefits of the investment; the anticipated use of proceeds of the strategic investment; economic and financial market conditions generally and economic conditions in our service areas; various risks to the price and volatility of our common stock; changes in the valuation of pension plan assets; the substantial amount of debt and our ability to repay or refinance it or incur additional debt in the future; our need for a significant amount of cash to service and repay the debt restrictions contained in our debt agreements that limit the discretion of management in operating the business; regulatory changes, including changes to subsidies, rapid development and introduction of new technologies and intense competition in the telecommunications industry; risks associated with our possible pursuit of acquisitions; system failures; cyber-attacks, information or security breaches or technology failure of ours or of a third party; losses of large customers or government contracts; risks associated with the rights-of-way for the network; disruptions in the relationship with third party vendors; losses of key management personnel and the inability to attract and retain highly qualified management and personnel in the future; changes in the extensive governmental legislation and regulations governing telecommunications providers and the provision of telecommunications services; new or changing tax laws or regulations; telecommunications carriers disputing and/or avoiding their obligations to pay network access charges for use of our network; high costs of regulatory compliance; the competitive impact of legislation and regulatory changes in the telecommunications industry; and liability and compliance costs regarding environmental regulations; and risks associated with discontinuing paying dividends on our common stock. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements are discussed in more detail in our filings with the SEC, including our reports on Form 10-K and Form 10-Q. Many of these circumstances are beyond our ability to control or predict. Moreover, forward-looking statements necessarily involve assumptions on our part. These forward-looking statements generally are identified by the words “believe,” “expect,” “anticipate,” “estimate,” “project,” “intend,” “plan,” “should,” “may,” “will,” “would,” “will be,” “will continue” or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company and its subsidiaries to be different from those expressed or implied in the forward-looking statements. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements that appear throughout this press release. Furthermore, forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we disclaim any intention or obligation to update or revise publicly any forward-looking statements. You should not place undue reliance on forward-looking statements.

Tag: [Consolidated-Communications-Earnings]

Consolidated Communications Holdings, Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share and per share amounts)
(Unaudited)
		March 31,				December 31,
		2021				2020
ASSETS
Current assets:
Cash and cash equivalents		$	325,142			$	155,561
Accounts receivable, net			125,677				137,646
Income tax receivable			1,072				1,072
Prepaid expenses and other current assets			48,574				46,382
Total current assets			500,465				340,661
Property, plant and equipment, net			1,772,678				1,760,152
Investments			110,801				111,665
Goodwill			1,035,274				1,035,274
Customer relationships, net			103,522				113,418
Other intangible assets			10,590				10,557
Other assets			140,490				135,573
Total assets		$	3,673,820			$	3,507,300
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	27,174			$	25,283
Advance billings and customer deposits			49,144				49,544
Accrued compensation			64,971				74,957
Accrued interest			41,439				21,194
Accrued expense			86,978				81,931
Current portion of long-term debt and finance lease obligations			5,018				17,561
Total current liabilities			274,724				270,470
Long-term debt and finance lease obligations			2,105,779				1,932,666
Deferred income taxes			167,096				171,021
Pension and other post-retirement obligations			291,273				300,373
Convertible security interest			241,027				238,701
Contingent payment rights			180,829				123,241
Other long-term liabilities			80,586				81,600
Total liabilities			3,341,314				3,118,072
Shareholders' equity:
Common stock, par value $0.01 per share; 100,000,000 shares authorized, 79,983,431 and 79,227,607 shares outstanding as of March 31, 2021 and December 31, 2020, respectively			800				792
Additional paid-in capital			527,115				525,673
Accumulated deficit			(96,613	)			(34,514	)
Accumulated other comprehensive loss, net			(105,507	)			(109,418	)
Noncontrolling interest			6,711				6,695
Total shareholders' equity			332,506				389,228
Total liabilities and shareholders' equity		$	3,673,820			$	3,507,300

Consolidated Communications Holdings, Inc.
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
(Unaudited)
		Three Months Ended
		March 31,
		2021				2020
Net revenues		$	324,766			$	325,662
Operating expenses:
Cost of services and products			143,979				137,755
Selling, general and administrative expenses			66,850				67,817
Depreciation and amortization			75,611				82,738
Income from operations			38,326				37,352
Other income (expense):
Interest expense, net of interest income			(48,415	)			(32,095	)
Gain (loss) on extinguishment of debt			(11,980	)			234
Change in fair value of contingent payment rights			(57,588	)			—
Other income, net			12,274				15,173
Income (loss) before income taxes			(67,383	)			20,664
Income tax expense (benefit)			(5,300	)			5,041
Net income (loss)			(62,083	)			15,623
Less: net income attributable to noncontrolling interest			16				76
Net income (loss) attributable to common shareholders		$	(62,099	)		$	15,547
Net income (loss) per basic and diluted common shares attributable to common shareholders		$	(0.80	)		$	0.22

Consolidated Communications Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
		Three Months Ended
		March 31,
		2021				2020
OPERATING ACTIVITIES
Net income (loss)		$	(62,083	)		$	15,623
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			75,611				82,738
Cash distributions from wireless partnerships in excess of (less than) earnings			11				(307	)
Pension and post-retirement contributions in excess of expense			(8,770	)			(8,571	)
Non-cash, stock-based compensation			1,450				890
Amortization of deferred financing costs and discounts			4,283				1,196
Loss (gain) on extinguishment of debt			11,980				(234	)
Loss on change in fair value of contingent payment rights			57,588				—
Other adjustments, net			7,507				(4,138	)
Changes in operating assets and liabilities, net			10,913				(2,207	)
Net cash provided by operating activities			98,490				84,990
INVESTING ACTIVITIES
Purchase of property, plant and equipment, net			(75,960	)			(42,389	)
Proceeds from sale of assets			24				2,187
Proceeds from sale of investments			1,198				426
Net cash used in investing activities			(74,738	)			(39,776	)
FINANCING ACTIVITIES
Proceeds from bond offering			400,000				—
Proceeds from issuance of long-term debt			150,000				10,000
Payment of finance lease obligations			(1,598	)			(2,674	)
Payment on long-term debt			(397,000	)			(46,588	)
Retirement of senior notes			—				(4,208	)
Payment of financing costs			(5,573	)			—
Net cash provided by (used in) financing activities			145,829				(43,470	)
Net change in cash and cash equivalents			169,581				1,744
Cash and cash equivalents at beginning of period			155,561				12,395
Cash and cash equivalents at end of period		$	325,142			$	14,139

Consolidated Communications Holdings, Inc.
Consolidated Revenue by Category
(Dollars in thousands)
(Unaudited)
		Three Months Ended
		March 31,
		2021			2020
Commercial and carrier:
Data and transport services (includes VoIP)		$	90,348		$	89,572
Voice services			44,279			45,720
Other			9,719			11,712
			144,346			147,004
Consumer:
Broadband (VoIP and Data)			65,755			64,076
Video services			16,781			19,131
Voice services			40,420			43,176
			122,956			126,383
Subsidies			17,339			18,454
Network access			31,603			31,465
Other products and services			8,522			2,356
Total operating revenue		$	324,766		$	325,662

Consolidated Communications Holdings, Inc.
Consolidated Revenue Trend by Category
(Dollars in thousands)
(Unaudited)
		Three Months Ended
		Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q1 2020
Commercial and carrier:
Data and transport services (includes VoIP)		$	90,348		$	92,781		$	90,153		$	89,572		$	89,572
Voice services			44,279			44,862			45,343			45,775			45,720
Other			9,719			12,128			10,909			10,406			11,712
			144,346			149,771			146,405			145,753			147,004
Consumer:
Broadband (VoIP and Data)			65,755			66,253			67,163			65,567			64,076
Video services			16,781			17,547			18,452			19,213			19,131
Voice services			40,420			41,431			42,775			43,121			43,176
			122,956			125,231			128,390			127,901			126,383
Subsidies			17,339			17,402			18,064			18,069			18,454
Network access			31,603			31,314			32,009			30,473			31,465
Other products and services			8,522			2,406			2,198			2,980			2,356
Total operating revenue		$	324,766		$	326,124		$	327,066		$	325,176		$	325,662

Consolidated Communications Holdings, Inc.
Schedule of Adjusted EBITDA Calculation
(Dollars in thousands)
(Unaudited)
		Three Months Ended
		March 31,
		2021				2020
Net income (loss)		$	(62,083	)		$	15,623
Add (subtract):
Income tax expense (benefit)			(5,300	)			5,041
Interest expense, net			48,415				32,095
Depreciation and amortization			75,611				82,738
EBITDA			56,643				135,497
Adjustments to EBITDA (1):
Other, net (2)			1,688				(3,476	)
Investment income (accrual basis)			(9,556	)			(10,579	)
Investment distributions (cash basis)			9,377				10,064
Pension/OPEB expense (benefit)			(2,541	)			(584	)
Loss (gain) on extinguishment of debt			11,980				(234	)
Change in fair value of contingent payment right			57,588				—
Non-cash compensation (3)			1,450				890
Adjusted EBITDA		$	126,629			$	131,578

Notes:
(1) These adjustments reflect those required or permitted by the lenders under our credit agreement.
(2) Other, net includes income attributable to noncontrolling interests, acquisition and non-recurring related costs, and certain miscellaneous items.
(3) Represents compensation expenses in connection with our Restricted Share Plan, which because of the non-cash nature of the expenses are excluded from adjusted EBITDA.

Consolidated Communications Holdings, Inc.
Total Net Debt to LTM Adjusted EBITDA Ratio
(Dollars in thousands)
(Unaudited)
		March 31,
		2021
Summary of Outstanding Debt:
Term loans, net of discount $12,607		$	987,268
6.50% Senior secured notes due 2028			750,000
5.00% Senior secured notes due 2028			400,000
Finance leases			16,692
Total debt as of March 31, 2021			2,153,960
Less deferred debt issuance costs			(43,163	)
Less cash on hand			(325,142	)
Total net debt as of March 31, 2021		$	1,785,655
Adjusted EBITDA for the twelve months ended March 31, 2021		$	524,275
Total Net Debt to last twelve months Adjusted EBITDA			3.41x

Consolidated Communications Holdings, Inc.
Schedule of Free Cash Flow Calculation
(Dollars in thousands)
(Unaudited)
		Three Months Ended
		March 31,
		2021				2020
Net cash provided by operating activities		$	98,490			$	84,990
Add (subtract):
Capital expenditures			(75,960	)			(42,389	)
Proceeds from the sale of assets			24				2,187
Net proceeds from refinancing			148,498				—
Free cash flow		$	171,052			$	44,788

Consolidated Communications Holdings, Inc.
Reconciliation of Net Income to Adjusted EBITDA Guidance
(Dollars in millions)
(Unaudited)
	Twelve Months Ended
	December 31, 2021
	Range
	Low				High
Net income	$	31			$	41
Add:
Income tax expense		10				20
Interest expense, net		150				145
Depreciation and amortization		305				300
EBITDA		496				506
Adjustments to EBITDA (1):
Other, net (2)		1				1
Pension/OPEB expense		(4	)			(4	)
Non-cash compensation (3)		7				7
Adjusted EBITDA	$	500			$	510

Notes:
(1) These adjustments reflect those required or permitted by the lenders under our credit agreement.
(2) Other, net includes income attributable to noncontrolling interests, cash distributions less equity earnings from our investments, dividend income, acquisition and non-recurring related costs and certain miscellaneous items.
(3) Represents compensation expenses in connection with our Restricted Share Plan, which because of the non-cash nature of the expenses are excluded from adjusted EBITDA.

Consolidated Communications Holdings, Inc.
Adjusted Net Income (Loss) and Net Income (Loss) Per Share
(Dollars in thousands, except per share amounts)
(Unaudited)
		Three Months Ended
		March 31,
		2021				2020
Net income (loss)		$	(62,083	)		$	15,623
Integration and severance related costs, net of tax			1,156				297
Storm costs (recoveries), net of tax			—				82
Loss (gain) on extinguishment of debt, net of tax			8,743				(177	)
Change in fair value of contingent payment rights			57,588				—
Non-cash interest expense for Searchlight note including amortization of discount and fees			10,201				—
Non-cash interest expense for swaps, net of tax			(182	)			(183	)
Non-cash stock compensation, net of tax			1,058				673
Adjusted net income		$	16,481			$	16,315
Weighted average number of shares outstanding			78,029				71,153
Adjusted diluted net income per share		$	0.21			$	0.23

Notes:
Calculations above assume a 27.0% and 24.4% effective tax rate for the three months ended March 31, 2021 and 2020, respectively.

Consolidated Communications Holdings, Inc.
Key Operating Statistics
(Unaudited)
Operating Metrics		March 31,				December 31,				QoQ							March 31,				YoY
In thousands		2021				2020				Change				% Change			2020				Change				% Change
Consumer Addressable Market
≥ FTTP 1 Gig+ capable (1)			321				275				46			16.7	%			273				48			17.5	%
Fiber Node/DSL			2,421				2,461				(40	)		(1.6	%)			2,448				(26	)		(1.1	%)
Total Passings			2,742				2,736				6			0.2	%			2,721				21			0.8	%
≥ 1 Gig capable %			12	%			10	%						1.7	%			10	%						1.8	%
Note: (1) Company launched multi-year, Gig+ network investment plan. In Q1 2021, completed 45,800 of target 300,000 FTTP upgrades for 2021 and 1.6 million by 2025, with at least 70% Gig coverage.
		March 31,				December 31,				QoQ							March 31,				YoY
		2021				2020				Change				% Change			2020				Change				% Change
Data and Internet Connections			794,224				792,200				2,024			0.3	%			786,125				8,099			1.0	%
Voice Connections			768,083				779,590				(11,507	)		(1.5	%)			820,620				(52,537	)		(6.4	%)
Video Connections			73,986				76,041				(2,055	)		(2.7	%)			82,633				(8,647	)		(10.5	%)
Consumer Data ARPU		$	55.24			$	54.41			$	0.83			1.5	%		$	51.65			$	3.59			7.0	%
Consumer ARPU		$	75.19			$	75.25			$	(0.06	)		(0.1	%)		$	73.32			$	1.87			2.6	%
Fiber route network miles (long-haul, metro and FTTP) (2)			47,364				46,664				700			1.5	%			37,757				9,607			25.4	%
On-net buildings			13,910				13,564				346			2.6	%			12,536				1,374			11.0	%
Note: (2) FTTP miles added to fiber route network miles beginning in Q2 2020, which were previously not included. Prior period amounts have not been restated to the current period presentation.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005326/en/

FAQ

What were Consolidated Communications' Q1 2021 financial results?

Consolidated Communications reported Q1 2021 revenue of $324.8 million, a slight decrease of 0.3% from the previous year, with a net loss of $62.1 million.

How much did Consolidated invest in capital expenditures in Q1 2021?

In Q1 2021, Consolidated Communications' capital expenditures totaled $76 million, driven by its fiber expansion plan.

What is the revenue outlook for Consolidated Communications in 2021?

Consolidated Communications expects capital expenditures between $400 million and $420 million for 2021.

What key developments occurred in Consolidated Communications' fiber expansion?

The company upgraded approximately 46,000 passings to Gig+ FTTP and aims to cover 70% of its footprint by 2025.

What was the adjusted EBITDA for Consolidated Communications in Q1 2021?

Adjusted EBITDA for Q1 2021 was $126.6 million, a decrease of 3.8% from the same period last year.