Uniti Group Inc. Reports Fourth Quarter and Full Year 2024 Results
Uniti Group (UNIT) reported its Q4 and full-year 2024 results, with net income of $21.6M for Q4 and $93.4M for the full year. The company achieved Q4 revenues of $293.3M and full-year revenues of $1.2B. Earnings per diluted share were $0.09 in Q4 and $0.38 for the full year, while AFFO per diluted share reached $0.35 and $1.35 respectively.
The company highlighted a 5% growth in core recurring strategic fiber revenue compared to 2023, with Q4 consolidated bookings up 40% year-over-year. Uniti recently completed a $589M fiber securitization notes offering with a weighted average yield of ~6.5%. The company maintains a strong liquidity position with $655.6M in unrestricted cash and available credit, while its leverage ratio stands at 5.80x based on net debt to Q4 2024 annualized Adjusted EBITDA.
Uniti Group (UNIT) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, con un reddito netto di 21,6 milioni di dollari per il Q4 e 93,4 milioni di dollari per l'intero anno. L'azienda ha raggiunto ricavi di 293,3 milioni di dollari nel Q4 e ricavi totali di 1,2 miliardi di dollari per l'intero anno. Gli utili per azione diluiti sono stati di 0,09 dollari nel Q4 e 0,38 dollari per l'intero anno, mentre l'AFFO per azione diluita ha raggiunto rispettivamente 0,35 e 1,35 dollari.
L'azienda ha evidenziato una crescita del 5% nei ricavi strategici ricorrenti di fibra rispetto al 2023, con prenotazioni consolidate nel Q4 aumentate del 40% rispetto all'anno precedente. Uniti ha recentemente completato un'offerta di note di cartolarizzazione della fibra da 589 milioni di dollari con un rendimento medio ponderato di circa il 6,5%. L'azienda mantiene una solida posizione di liquidità con 655,6 milioni di dollari in contante non vincolato e credito disponibile, mentre il suo rapporto di indebitamento si attesta a 5,80x basato sul debito netto rispetto all'EBITDA aggiustato annualizzato del Q4 2024.
Uniti Group (UNIT) informó sus resultados del cuarto trimestre y del año completo 2024, con un ingreso neto de 21,6 millones de dólares para el Q4 y 93,4 millones de dólares para el año completo. La compañía logró ingresos de 293,3 millones de dólares en el Q4 y ingresos totales de 1,2 mil millones de dólares para el año completo. Las ganancias por acción diluida fueron de 0,09 dólares en el Q4 y 0,38 dólares para el año completo, mientras que el AFFO por acción diluida alcanzó 0,35 y 1,35 dólares respectivamente.
La empresa destacó un crecimiento del 5% en los ingresos estratégicos recurrentes de fibra en comparación con 2023, con reservas consolidadas del Q4 que aumentaron un 40% interanual. Uniti completó recientemente una oferta de notas de titulización de fibra por 589 millones de dólares con un rendimiento promedio ponderado de aproximadamente el 6,5%. La compañía mantiene una sólida posición de liquidez con 655,6 millones de dólares en efectivo no restringido y crédito disponible, mientras que su ratio de apalancamiento se sitúa en 5,80x basado en la deuda neta respecto al EBITDA ajustado anualizado del Q4 2024.
유니티 그룹 (UNIT)은 2024년 4분기 및 연간 결과를 발표했으며, 4분기 순이익은 2160만 달러, 연간 순이익은 9340만 달러를 기록했습니다. 이 회사는 4분기 매출 2억 9330만 달러, 연간 매출 12억 달러를 달성했습니다. 희석 주당 순이익은 4분기 0.09달러, 연간 0.38달러였으며, 희석 주당 AFFO는 각각 0.35달러와 1.35달러에 도달했습니다.
회사는 2023년 대비 전략적 섬유 수익에서 5%의 성장을 강조했으며, 4분기 통합 예약은 전년 대비 40% 증가했습니다. 유니티는 최근 약 6.5%의 가중 평균 수익률로 5억 8900만 달러 규모의 섬유 유동화 증권 발행을 완료했습니다. 이 회사는 6억 5560만 달러의 제한 없는 현금 및 사용 가능한 신용을 보유하고 있으며, 2024년 4분기 연간 조정 EBITDA 대비 순부채 기준으로 5.80배의 레버리지 비율을 유지하고 있습니다.
Uniti Group (UNIT) a publié ses résultats du quatrième trimestre et de l'année complète 2024, avec un revenu net de 21,6 millions de dollars pour le Q4 et de 93,4 millions de dollars pour l'année entière. L'entreprise a réalisé des revenus de 293,3 millions de dollars au Q4 et des revenus totaux de 1,2 milliard de dollars pour l'année entière. Le bénéfice par action diluée était de 0,09 dollar au Q4 et de 0,38 dollar pour l'année entière, tandis que l'AFFO par action diluée a atteint respectivement 0,35 et 1,35 dollar.
L'entreprise a souligné une croissance de 5% des revenus stratégiques récurrents en fibre par rapport à 2023, avec des réservations consolidées au Q4 en hausse de 40% d'une année sur l'autre. Uniti a récemment complété une offre de titres de titrisation de fibre de 589 millions de dollars avec un rendement moyen pondéré d'environ 6,5%. L'entreprise maintient une solide position de liquidité avec 655,6 millions de dollars en liquidités non restreintes et en crédit disponible, tandis que son ratio d'endettement se situe à 5,80x basé sur la dette nette par rapport à l'EBITDA ajusté annualisé du Q4 2024.
Uniti Group (UNIT) hat seine Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 bekannt gegeben, mit einem Nettoergebnis von 21,6 Millionen Dollar für das Q4 und 93,4 Millionen Dollar für das gesamte Jahr. Das Unternehmen erzielte Q4-Umsätze von 293,3 Millionen Dollar und Gesamtumsätze von 1,2 Milliarden Dollar. Der Gewinn pro verwässerter Aktie betrug 0,09 Dollar im Q4 und 0,38 Dollar für das gesamte Jahr, während das AFFO pro verwässerter Aktie 0,35 und 1,35 Dollar erreichte.
Das Unternehmen hob ein Wachstum von 5% im Kerngeschäftsbereich der strategischen Glasfaser-Einnahmen im Vergleich zu 2023 hervor, wobei die konsolidierten Buchungen im Q4 im Jahresvergleich um 40% gestiegen sind. Uniti hat kürzlich eine Glasfaser-Verbriefungsanleihe im Wert von 589 Millionen Dollar mit einer gewichteten durchschnittlichen Rendite von etwa 6,5% abgeschlossen. Das Unternehmen hält eine starke Liquiditätsposition mit 655,6 Millionen Dollar an unbeschränkten liquiden Mitteln und verfügbarem Kredit, während das Verhältnis von Verschuldung zu netto Schulden im Vergleich zum annualisierten Adjusted EBITDA für das Q4 2024 bei 5,80x liegt.
- Net income growth to $93.4M for full year 2024
- 40% increase in Q4 consolidated bookings year-over-year
- 5% growth in core recurring strategic fiber revenue
- Successful completion of $589M fiber securitization offering
- Strong liquidity position with $655.6M in cash and available credit
- High leverage ratio at 5.80x
- Relatively low AFFO per diluted share at $1.35 for full year
Insights
The Q4 and FY2024 results reveal Uniti Group's strategic evolution and improving financial foundation. The standout achievement is the landmark
- Provides a new, cost-effective funding source with a
6.5% weighted average yield - Enables the redemption of
$125 million of higher-cost debt (10.50% notes) - Demonstrates the monetization potential of Uniti's infrastructure assets
The company's operational metrics show encouraging trends. The
Segment performance reveals the strength of Uniti's business model:
- Uniti Leasing generated
$880.5 million in annual revenue with impressive97% Adjusted EBITDA margins - Uniti Fiber contributed
$286.4 million in revenue with39% Adjusted EBITDA margins - Combined net success-based capital expenditures remained well-controlled at
$312.1 million
The positioning for emerging technologies, particularly Generative AI and network convergence, represents a strategic advantage. These trends are driving increased demand for high-capacity fiber infrastructure, potentially creating long-term growth opportunities for Uniti's asset base.
The pending Windstream merger, expected to close in H2 2025, could significantly reshape Uniti's business model. The recent refinancing activities at both companies, pushing out 2028 maturities, demonstrate proactive liability management and create a more stable foundation for the combined entity.
Recently Completed Landmark ABS Financing Provides Attractive Alternative Source of Capital While Further Strengthening Uniti’s Balance Sheet
Provides Initial 2025 Outlook
- Net Income of
$21.6 Million and$93.4 Million for the Fourth Quarter and Full Year, Respectively - Net Income of
$0.09 and$0.38 Per Diluted Common Share for the Fourth Quarter and Full Year, Respectively - AFFO of
$0.35 and$1.35 Per Diluted Common Share for the Fourth Quarter and Full Year, Respectively
LITTLE ROCK, Ark., Feb. 21, 2025 (GLOBE NEWSWIRE) -- Uniti Group Inc. (“Uniti” or the “Company”) (Nasdaq: UNIT) today announced its results for the fourth quarter and full year 2024.
“2024 was a transformational year for Uniti with the announcement of our upcoming merger with Windstream, solid growth across our business segments, and continued work to improve and strengthen our balance sheet. Our core recurring strategic fiber revenue grew approximately
Mr. Gunderman continued, “Turning to our balance sheet, we continue to work diligently to enhance and strengthen our capital structure prior to completing the merger with Windstream. We recently completed our landmark inaugural ABS transaction that provides Uniti with an attractive source of capital, and used a portion of those proceeds to redeem some of our most expensive debt. Also, together with recent refinancing activity at Windstream, we have successfully pushed out a meaningful portion of the combined company’s upcoming debt maturities, specifically those that were set to mature in 2028. Finally, we continue to make meaningful progress on our merger with Windstream and remain on track to close the transaction by the second half of 2025.”
QUARTERLY RESULTS
Consolidated revenues for the fourth quarter of 2024 were
Uniti Fiber contributed
Uniti Leasing contributed revenues of
Combined gross capital expenditures for both Uniti Fiber and Uniti Leasing were
FULL YEAR RESULTS
Consolidated revenues for the year ended December 31, 2024 were
Uniti Fiber contributed
Uniti Leasing contributed revenues of
FINANCING TRANSACTIONS
On February 3, 2025, Uniti announced that it had closed on its previously announced inaugural
Uniti used a portion of the net proceeds to repay and terminate its existing ABS bridge facility, and to redeem
LIQUIDITY
At year-end, the Company had approximately
FULL YEAR 2025 OUTLOOK
Our 2025 outlook includes the estimated impact from the recent ABS financing and partial redemption of the
The Company’s consolidated outlook for 2025 is as follows (in millions):
| Full Year 2025 | ||||||||
| Revenue | $ | 1,196 | to | $ | 1,216 | |||
| Net income attributable to common shareholders | 95 | to | 115 | |||||
| Adjusted EBITDA (1) | 966 | to | 986 | |||||
| Interest expense, net (2) | 532 | to | 532 | |||||
| Attributable to common shareholders: | ||||||||
| FFO (1) | 322 | to | 342 | |||||
| AFFO (1) | 369 | to | 389 | |||||
| Weighted-average common shares outstanding – diluted | 280 | to | 280 | |||||
| ________________________ | ||||||||
| (1) See “Non-GAAP Financial Measures” below. (2) See “Components of Interest Expense” below. | ||||||||
CONFERENCE CALL
Uniti will hold a conference call today to discuss this earnings release at 8:30 AM Eastern Time (7:30 AM Central Time). The conference call will be webcast live on Uniti’s Investor Relations website at investor.uniti.com. Those parties interested in participating via telephone may register on the Company’s Investor Relations website or by clicking here. A replay of the call will also be made available on the Investor Relations website.
ABOUT UNITI
Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of fiber and other wireless solutions for the communications industry. As of December 31, 2024, Uniti owns approximately 145,000 fiber route miles, 8.8 million fiber strand miles, and other communications real estate throughout the United States. Additional information about Uniti can be found on its website at www.uniti.com.
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 recommendation to subscribe for, acquire or buy securities of Uniti, Windstream Holdings II (“Windstream”) or Windstream Parent, Inc., the proposed combined company following the closing of the Merger (as defined below) (“New Uniti”) or any other financial products or securities, in any place or jurisdiction, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made in the United States absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or pursuant to an exemption from, or in a transaction not subject to, such registration requirements.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the contemplated merger (the “Merger”), New Uniti has filed a registration statement on Form S-4 with the SEC, as amended (No. 333-281068), which was declared effective by the SEC on February 12, 2025 and contains a definitive proxy statement/prospectus and other documents. The definitive proxy statement/prospectus was mailed to stockholders of Uniti seeking their approval of the transaction-related proposals. This communication is not a substitute for any registration statement, proxy statement/prospectus or other documents that have been or may be filed with the SEC in connection with the Merger.
THE DEFINITIVE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGER CONTAIN IMPORTANT INFORMATION ABOUT UNITI, WINDSTREAM, NEW UNITI, THE MERGER AND RELATED MATTERS. INVESTORS SHOULD READ THE DEFINITIVE PROXY STATEMENT/PROSPECTUS AND SUCH OTHER DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY SUPPLEMENTS THERETO, CAREFULLY AND IN THEIR ENTIRETY BEFORE THEY MAKE ANY DECISION WITH RESPECT TO THE MERGER. The definitive proxy statement/prospectus, any supplements thereto and all other documents filed with the SEC in connection with the Merger are available free of charge on the SEC’s website (at www.sec.gov). Copies of documents filed with the SEC by Uniti have been and will continue to be made available free of charge on Uniti's investor relations website (at https://investor.uniti.com/financial-information/sec-filings).
PARTICIPANTS IN THE SOLICITATION
Uniti, Windstream and their respective directors and certain of their executive officers and other employees may be deemed to be participants in the solicitation of proxies from Uniti’s stockholders in connection with the Merger. Information about Uniti’s directors and executive officers is set forth in the sections titled “Proposal No. 1 Election of Directors” and “Security Ownership of Certain Beneficial Owners and Management” included in Uniti’s proxy statement for its 2024 annual meeting of stockholders, which was filed with the SEC on April 11, 2024 (and which is available at https://www.sec.gov/Archives/edgar/data/1620280/000110465924046100/0001104659-24-046100-index.htm), the section titled “Directors, Executive Officers and Corporate Governance” included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 29, 2024 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1620280/000162828024008054/unit-20231231.htm), and subsequent statements of beneficial ownership on file with the SEC and other filings made from time to time with the SEC. Additional information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of Uniti stockholders in connection with the Merger, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in the definitive proxy statement/prospectus filed by Uniti with the SEC (and which is available at https://www.sec.gov/Archives/edgar/data/1620280/000110465925012218/tm2412846-31_defm14a.htm).
FORWARD-LOOKING STATEMENTS
Certain statements in this press release and today’s conference call 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 not historical statements of fact, including, without limitation, our 2025 financial outlook, expectations regarding lease-up of our network, strong demand trends, business strategies, growth prospects, and statements regarding the Merger and potential synergies, potential cost savings and the future performance of New Uniti (together with Windstream and Uniti, the “Merged Group”). In addition, this communication contains statements concerning the intentions, beliefs and expectations, plans, strategies and objectives of the directors and management of Uniti and Windstream for Uniti and Windstream, respectively, and the Merged Group, the anticipated timing for and outcome and effects of the Merger (including expected benefits to shareholders of Uniti), expectations for the final capital structure, ongoing development and growth potential of the Merged Group and the future operation of Uniti, Windstream and the Merged Group.
Words such as "anticipate(s)," "expect(s)," "intend(s)," “estimate(s),” “foresee(s),” "plan(s)," "believe(s)," "may," "will," "would," "could," "should," "seek(s)," “appear(s),” “target(s),” “project(s),” “contemplate(s),” “predict(s),” “potential,” “continue(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained. Factors which could materially alter our expectations include, but are not limited to, the future prospects of Windstream, our largest customer; the ability and willingness of our customers to renew their leases with us upon their expiration, and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant; the availability of and our ability to identify suitable acquisition opportunities and our ability to acquire and lease the respective properties on favorable terms; the risk that we fail to fully realize the potential benefits of acquisitions or have difficulty integrating acquired companies; our ability to generate sufficient cash flows to service our outstanding indebtedness and fund our capital funding commitments; our ability to access debt and equity capital markets; the impact on our business or the business of our customers as a result of credit rating downgrades and fluctuating interest rates; our ability to retain our key management personnel; changes in the U.S. tax law and other state, federal or local laws, whether or not specific to real estate investment trusts; covenants in our debt agreements that may limit our operational flexibility; the possibility that we may experience equipment failures, natural disasters, cyber-attacks or terrorist attacks for which our insurance may not provide adequate coverage; other risks inherent in the communications industry and in the ownership of communications distribution systems, including potential liability relating to environmental matters and illiquidity of real estate investments; the satisfaction of the conditions precedent to the consummation of the Merger, including, without limitation, the receipt of shareholder and regulatory approvals on the terms desired or anticipated; unanticipated difficulties or expenditures relating to the Merger, including, without limitation, difficulties that result in the failure to realize expected synergies, efficiencies and cost savings from the Merger within the expected time period (if at all); potential difficulties in Uniti’s and Windstream’s ability to retain employees as a result of the announcement and pendency of the Merger; risks relating to the value of New Uniti’s securities to be issued in connection with the Merger; disruptions of Uniti’s and Windstream’s current plans, operations and relationships with customers caused by the announcement and pendency of the Merger; legal proceedings that may be instituted against Uniti or Windstream following announcement of the Merger; funding requirements; regulatory restrictions (including changes in regulatory restrictions or regulatory policy); and additional factors described in our reports filed with the SEC, including Uniti’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, periodic current reports on Form 8-K and other documents filed with the SEC.
There can be no assurance that the Merger will be implemented or that plans of the respective directors and management of Uniti and Windstream for the Merged Group will proceed as currently expected or will ultimately be successful. Investors are strongly cautioned not to place undue reliance on forward-looking statements, including in respect of the financial or operating outlook for Uniti, Windstream or the Merged Group (including the realization of any potential cost savings or expected synergies). See also “Additional Information and Where to Find it.”
All forward-looking statements are based on information and estimates available at the time of this communication and are not guarantees of future performance.
Except as required by applicable law, Uniti does not assume any obligation to, and expressly disclaims any duty to, provide any additional or updated information or to update any forward-looking statements, whether as a result of new information, future events or results, or otherwise. Nothing in this communication will, under any circumstances (including by reason of this communication remaining available and not being superseded or replaced by any other presentation or publication with respect to Uniti, Windstream or the Merged Group, or the subject matter of this communication), create an implication that there has been no change in the affairs of Uniti or Windstream since the date of this communication.
NON-GAAP PRESENTATION
This release and today’s conference call contain certain supplemental measures of performance that are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). Such measures should not be considered as alternatives to GAAP. Further information with respect to and reconciliations of such measures to the nearest GAAP measure can be found herein.
| Uniti Group Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (In thousands, except per share data) | ||||||||
| December 31, 2024 | December 31, 2023 | |||||||
| Assets: | ||||||||
| Property, plant and equipment, net | $ | 4,209,747 | $ | 3,982,069 | ||||
| Cash and cash equivalents | 155,593 | 62,264 | ||||||
| Restricted cash and cash equivalents | 28,254 | — | ||||||
| Accounts receivable, net | 51,418 | 46,358 | ||||||
| Goodwill | 157,380 | 157,380 | ||||||
| Intangible assets, net | 275,414 | 305,115 | ||||||
| Straight-line revenue receivable | 108,870 | 90,988 | ||||||
| Operating lease right-of-use assets, net | 126,791 | 125,105 | ||||||
| Other assets, net | 40,556 | 118,117 | ||||||
| Deferred income tax assets, net | 128,045 | 109,128 | ||||||
| Assets held for sale | — | 28,605 | ||||||
| Derivative asset | 77 | — | ||||||
| Total Assets | $ | 5,282,145 | $ | 5,025,129 | ||||
| Liabilities and Shareholders’ Deficit | ||||||||
| Liabilities: | ||||||||
| Accounts payable, accrued expenses and other liabilities, net | $ | 89,688 | $ | 119,340 | ||||
| Settlement payable | 71,785 | 163,583 | ||||||
| Intangible liabilities, net | 145,703 | 156,397 | ||||||
| Accrued interest payable | 143,901 | 133,683 | ||||||
| Deferred revenue | 1,400,952 | 1,273,661 | ||||||
| Dividends payable | 665 | 36,162 | ||||||
| Operating lease liabilities | 80,504 | 84,404 | ||||||
| Finance lease obligations | 17,190 | 18,110 | ||||||
| Notes and other debt, net | 5,783,597 | 5,523,579 | ||||||
| Liabilities held for sale | — | 331 | ||||||
| Total liabilities | 7,733,985 | 7,509,250 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ Deficit: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, and outstanding: 237,513 shares at December 31, 2024 and 236,559 shares at December 31, 2023 | 24 | 24 | ||||||
| Additional paid-in capital | 1,236,045 | 1,221,824 | ||||||
| Accumulated other comprehensive loss | (634 | ) | — | |||||
| Distributions in excess of accumulated earnings | (3,687,808 | ) | (3,708,240 | ) | ||||
| Total Uniti shareholders’ deficit | (2,452,373 | ) | (2,486,392 | ) | ||||
| Noncontrolling interests – operating partnership units and non-voting convertible preferred stock | 533 | 2,271 | ||||||
| Total shareholders’ deficit | (2,451,840 | ) | (2,484,121 | ) | ||||
| Total Liabilities and Shareholders’ Deficit | $ | 5,282,145 | $ | 5,025,129 | ||||
| Uniti Group Inc. | |||||||||||||||
| Consolidated Statements of Income (Loss) | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues: | |||||||||||||||
| Uniti Leasing | $ | 221,661 | $ | 214,923 | $ | 880,490 | $ | 852,772 | |||||||
| Uniti Fiber | 71,654 | 70,733 | 286,437 | 297,059 | |||||||||||
| Total revenues | 293,315 | 285,656 | 1,166,927 | 1,149,831 | |||||||||||
| Costs and Expenses: | |||||||||||||||
| Interest expense, net | 129,671 | 123,106 | 511,364 | 512,349 | |||||||||||
| Depreciation and amortization | 79,948 | 79,149 | 314,810 | 310,528 | |||||||||||
| General and administrative expense | 24,473 | 25,401 | 105,019 | 102,732 | |||||||||||
| Operating expense (exclusive of depreciation, accretion and amortization) | 33,624 | 34,398 | 140,377 | 144,276 | |||||||||||
| Transaction related and other costs | 7,666 | 2,806 | 38,734 | 12,611 | |||||||||||
| Loss (gain) on sale of real estate | 46 | (740 | ) | (18,953 | ) | (2,164 | ) | ||||||||
| Goodwill impairment | — | — | — | 203,998 | |||||||||||
| Other (income) expense, net | — | (2,937 | ) | (301 | ) | 18,386 | |||||||||
| Total costs and expenses | 275,428 | 261,183 | 1,091,050 | 1,302,716 | |||||||||||
| Income (loss) before income taxes and equity in earnings from unconsolidated entities | 17,887 | 24,473 | 75,877 | (152,885 | ) | ||||||||||
| Income tax benefit | (3,686 | ) | (5,575 | ) | (17,555 | ) | (68,474 | ) | |||||||
| Equity in earnings from unconsolidated entities | — | (672 | ) | — | (2,662 | ) | |||||||||
| Net income (loss) | 21,573 | 30,720 | 93,432 | (81,749 | ) | ||||||||||
| Net income (loss) attributable to noncontrolling interests | 3 | 14 | 26 | (36 | ) | ||||||||||
| Net income (loss) attributable to shareholders | 21,570 | 30,706 | 93,406 | (81,713 | ) | ||||||||||
| Participating securities’ share in earnings | (587 | ) | (317 | ) | (2,080 | ) | (1,207 | ) | |||||||
| Dividends declared on convertible preferred stock | (5 | ) | (5 | ) | (20 | ) | (20 | ) | |||||||
| Net income (loss) attributable to common shareholders | $ | 20,978 | $ | 30,384 | $ | 91,306 | $ | (82,940 | ) | ||||||
| Net income (loss) attributable to common shareholders – Basic | $ | 20,978 | $ | 30,384 | $ | 91,306 | $ | (82,940 | ) | ||||||
| Impact of if-converted dilutive securities | — | — | — | — | |||||||||||
| Net income (loss) attributable to common shareholders – Diluted | $ | 20,978 | $ | 30,384 | $ | 91,306 | $ | (82,940 | ) | ||||||
| Weighted average number of common shares outstanding: | |||||||||||||||
| Basic | 237,495 | 236,547 | 237,306 | 236,401 | |||||||||||
| Diluted | 237,495 | 236,547 | 237,306 | 236,401 | |||||||||||
| Earnings (loss) per common share: | |||||||||||||||
| Basic | $ | 0.09 | $ | 0.13 | $ | 0.38 | $ | (0.35 | ) | ||||||
| Diluted | $ | 0.09 | $ | 0.13 | $ | 0.38 | $ | (0.35 | ) | ||||||
| Uniti Group Inc. | ||||||||||
| Consolidated Statements of Cash Flows | ||||||||||
| (In thousands) | ||||||||||
| Year Ended December 31, | ||||||||||
| 2024 | 2023 | |||||||||
| Cash flow from operating activities: | ||||||||||
| Net income (loss) | $ | 93,432 | $ | (81,749 | ) | |||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||
| Depreciation and amortization | 314,810 | 310,528 | ||||||||
| Amortization of deferred financing costs and debt discount | 22,738 | 18,498 | ||||||||
| Loss on debt extinguishment | — | 31,187 | ||||||||
| Interest rate cap amortization | 1,489 | — | ||||||||
| Deferred income taxes | (18,917 | ) | (68,497 | ) | ||||||
| Equity in earnings of unconsolidated entities | — | (2,662 | ) | |||||||
| Distributions of cumulative earnings from unconsolidated entities | — | 3,964 | ||||||||
| Cash paid for interest rate cap | (2,200 | ) | — | |||||||
| Straight-line revenues and amortization of below-market lease intangibles | (30,584 | ) | (37,944 | ) | ||||||
| Stock-based compensation | 13,508 | 12,491 | ||||||||
| Goodwill impairment | — | 203,998 | ||||||||
| (Gain) Loss on asset disposals | (872 | ) | (573 | ) | ||||||
| Gain on sale of real estate | (18,953 | ) | (2,164 | ) | ||||||
| Gain on sale of unconsolidated entity | — | (2,646 | ) | |||||||
| Accretion of settlement payable | 6,224 | 10,506 | ||||||||
| Other | 2,767 | 701 | ||||||||
| Changes in assets and liabilities: | ||||||||||
| Accounts receivable | (5,060 | ) | (3,727 | ) | ||||||
| Other assets | 15,961 | 15,795 | ||||||||
| Accounts payable, accrued expenses and other liabilities | (27,648 | ) | (54,577 | ) | ||||||
| Net cash provided by operating activities | 366,695 | 353,129 | ||||||||
| Cash flow from investing activities: | ||||||||||
| Capital expenditures | (354,834 | ) | (417,002 | ) | ||||||
| Proceeds from sale of equipment | 2,397 | 3,146 | ||||||||
| Proceeds from sale of real estate, net of cash | 40,241 | 2,545 | ||||||||
| Proceeds from sale of unconsolidated entity | 40,000 | — | ||||||||
| Net cash used in investing activities | (272,196 | ) | (411,311 | ) | ||||||
| Cash flow from financing activities: | ||||||||||
| Repayment of debt | (122,942 | ) | (2,263,662 | ) | ||||||
| Proceeds from issuance of notes | 309,000 | 2,600,000 | ||||||||
| Dividends paid | (108,455 | ) | (107,405 | ) | ||||||
| Payments of settlement payable | (98,022 | ) | (98,022 | ) | ||||||
| Borrowings under revolving credit facility | 130,000 | 506,000 | ||||||||
| Payments under revolving credit facility | (338,000 | ) | (486,000 | ) | ||||||
| Proceeds from ABS Loan Facility | 275,000 | — | ||||||||
| Finance lease payments | (2,652 | ) | (2,262 | ) | ||||||
| Payments for financing costs | (15,778 | ) | (26,955 | ) | ||||||
| Payment for settlement of common stock warrant | — | (56 | ) | |||||||
| Proceeds from termination of bond hedge option | — | 59 | ||||||||
| Costs related to the early repayment of debt | — | (44,303 | ) | |||||||
| Distributions paid to noncontrolling interests | (37 | ) | (48 | ) | ||||||
| Payment for exchange of noncontrolling interest | (92 | ) | — | |||||||
| Employee stock purchase program | 657 | 730 | ||||||||
| Payments related to tax withholding for stock-based compensation | (1,595 | ) | (1,433 | ) | ||||||
| Net cash provided by financing activities | 27,084 | 76,643 | ||||||||
| Net increase in cash, restricted cash and cash equivalents | 121,583 | 18,461 | ||||||||
| Cash, restricted cash and cash equivalents at beginning of period | 62,264 | 43,803 | ||||||||
| Cash, restricted cash and cash equivalents at end of period | $ | 183,847 | $ | 62,264 | ||||||
| Non-cash investing and financing activities: | ||||||||||
| Property and equipment acquired but not yet paid | $ | 10,186 | $ | 8,798 | ||||||
| Tenant capital improvements | 263,087 | 167,763 | ||||||||
| Sale of unconsolidated entity | — | 40,000 | ||||||||
| Uniti Group Inc. | ||||||||||||||||
| Reconciliation of Net Income to FFO and AFFO | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) attributable to common shareholders | $ | 20,978 | $ | 30,384 | $ | 91,306 | $ | (82,940 | ) | |||||||
| Real estate depreciation and amortization | 58,504 | 56,132 | 226,419 | 221,115 | ||||||||||||
| Gain on sale of real estate assets, net of tax | 46 | (740 | ) | (18,905 | ) | (2,164 | ) | |||||||||
| Participating securities share in earnings | 587 | 317 | 2,080 | 1,207 | ||||||||||||
| Participating securities share in FFO | (2,178 | ) | (766 | ) | (6,344 | ) | (2,064 | ) | ||||||||
| Real estate depreciation and amortization from unconsolidated entities | — | 435 | — | 1,740 | ||||||||||||
| Adjustments for noncontrolling interests | (8 | ) | (26 | ) | (42 | ) | (100 | ) | ||||||||
| FFO attributable to common shareholders | 77,929 | 85,736 | 294,514 | 136,794 | ||||||||||||
| Transaction related and other costs | 7,666 | 2,806 | 38,734 | 12,611 | ||||||||||||
| Amortization of deferred financing costs and debt discount | 5,964 | 4,523 | 22,738 | 18,498 | ||||||||||||
| Write off of deferred financing costs and debt discount | — | — | — | 10,412 | ||||||||||||
| Gain on extinguishment of debt | — | — | — | (1,269 | ) | |||||||||||
| Costs related to the early repayment of debt | — | — | — | 51,997 | ||||||||||||
| Stock based compensation | 3,388 | 3,083 | 13,508 | 12,491 | ||||||||||||
| Gain on sale of unconsolidated entity, net of tax | — | (2,476 | ) | — | (2,476 | ) | ||||||||||
| Non-real estate depreciation and amortization | 21,444 | 23,016 | 88,391 | 89,413 | ||||||||||||
| Goodwill impairment, net of tax | — | — | — | 151,856 | ||||||||||||
| Straight-line revenues and amortization of below-market lease intangibles | (6,226 | ) | (9,149 | ) | (30,584 | ) | (37,944 | ) | ||||||||
| Maintenance capital expenditures | (2,175 | ) | (1,624 | ) | (8,064 | ) | (6,962 | ) | ||||||||
| TCI revenue amortization | (13,641 | ) | (12,339 | ) | (50,889 | ) | (46,967 | ) | ||||||||
| Other, net | (2,365 | ) | (2,332 | ) | (9,414 | ) | (4,370 | ) | ||||||||
| Adjustments for equity in earnings from unconsolidated entities | — | 320 | — | 1,280 | ||||||||||||
| Adjustments for noncontrolling interests | (2 | ) | (3 | ) | (13 | ) | (112 | ) | ||||||||
| AFFO attributable to common shareholders | $ | 91,982 | $ | 91,561 | $ | 358,921 | $ | 385,252 | ||||||||
| Reconciliation of Diluted FFO and AFFO: | ||||||||||||||||
| FFO Attributable to common shareholders – Basic | $ | 77,929 | $ | 85,736 | $ | 294,514 | $ | 136,794 | ||||||||
| Impact of if-converted dilutive securities | 5,967 | 7,011 | 25,825 | 27,269 | ||||||||||||
| FFO Attributable to common shareholders – Diluted | $ | 83,896 | $ | 92,747 | $ | 320,339 | $ | 164,063 | ||||||||
| AFFO Attributable to common shareholders – Basic | $ | 91,982 | $ | 91,561 | $ | 358,921 | $ | 385,252 | ||||||||
| Impact of if-converted dilutive securities | 5,747 | 6,976 | 25,277 | 28,038 | ||||||||||||
| AFFO Attributable to common shareholders – Diluted | $ | 97,729 | $ | 98,537 | $ | 384,198 | $ | 413,290 | ||||||||
| Weighted average common shares used to calculate basic earnings per common share (1) | 237,495 | 236,547 | 237,306 | 236,401 | ||||||||||||
| Impact of dilutive non-participating securities | — | — | — | — | ||||||||||||
| Impact of if-converted dilutive securities | 42,044 | 53,401 | 48,024 | 53,701 | ||||||||||||
| Weighted average common shares used to calculate diluted FFO and AFFO per common share (1) | 279,539 | 289,948 | 285,330 | 290,102 | ||||||||||||
| Per diluted common share: | ||||||||||||||||
| EPS | $ | 0.09 | $ | 0.13 | $ | 0.38 | $ | (0.35 | ) | |||||||
| FFO | $ | 0.30 | $ | 0.32 | $ | 1.12 | $ | 0.57 | ||||||||
| AFFO | $ | 0.35 | $ | 0.34 | $ | 1.35 | $ | 1.42 | ||||||||
| (1) For periods in which FFO to common shareholders is a loss, the weighted average common shares used to calculate diluted FFO per common share is equal to the weighted average common shares used to calculate basic earnings per share. |
| Uniti Group Inc. | ||||||||||||||||
| Reconciliation of EBITDA and Adjusted EBITDA | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
Net income (loss) | $ | 21,573 | $ | 30,720 | $ | 93,432 | $ | (81,749 | ) | |||||||
| Depreciation and amortization | 79,948 | 79,149 | 314,810 | 310,528 | ||||||||||||
| Interest expense, net | 129,671 | 123,106 | 511,364 | 512,349 | ||||||||||||
| Income tax benefit | (3,686 | ) | (5,575 | ) | (17,555 | ) | (68,474 | ) | ||||||||
| EBITDA | $ | 227,506 | $ | 227,400 | $ | 902,051 | $ | 672,654 | ||||||||
| Stock-based compensation | 3,388 | 3,083 | 13,508 | 12,491 | ||||||||||||
| Transaction related and other costs | 7,666 | 2,806 | 38,734 | 12,611 | ||||||||||||
| Gain on sale of real estate | 46 | (740 | ) | (18,953 | ) | (2,164 | ) | |||||||||
| Goodwill impairment | — | — | — | 203,998 | ||||||||||||
| Other, net | 849 | (2,180 | ) | 4,726 | 20,893 | |||||||||||
| Adjustments for equity in earnings from unconsolidated entities | — | 755 | — | 3,019 | ||||||||||||
| Adjusted EBITDA | $ | 239,455 | $ | 231,124 | $ | 940,066 | $ | 923,502 | ||||||||
| Adjusted EBITDA: | ||||||||||||||||
| Uniti Leasing | $ | 214,460 | $ | 209,478 | $ | 851,178 | $ | 829,557 | ||||||||
| Uniti Fiber | 31,071 | 27,011 | 111,557 | 115,723 | ||||||||||||
| Corporate | (6,076 | ) | (5,365 | ) | (22,669 | ) | (21,778 | ) | ||||||||
| $ | 239,455 | $ | 231,124 | $ | 940,066 | $ | 923,502 | |||||||||
| Annualized Adjusted EBITDA (1) | $ | 939,578 | ||||||||||||||
| As of December 31, 2024: | ||||||||||||||||
| Total Debt (2) | $ | 5,603,690 | ||||||||||||||
| Unrestricted cash and cash equivalents | 155,593 | |||||||||||||||
| Net Debt | $ | 5,448,097 | ||||||||||||||
| Net Debt/Annualized Adjusted EBITDA | 5.80x | |||||||||||||||
________________________
(1) Calculated as Adjusted EBITDA for the most recently reported three-month period, excluding net contributions of
(2) Includes
| Uniti Group Inc. | ||
| Projected Future Results (1) | ||
| (In millions) | ||
| Year Ended December 31, 2025 | ||
| Net income attributable to common shareholders | ||
| Participating securities’ share in earnings | 3 | |
| Net income (2) | 98 to 118 | |
| Interest expense, net (3) | 532 | |
| Depreciation and amortization | 323 | |
| Income tax benefit | (4) | |
| EBITDA (2) | 949 to 969 | |
| Stock-based compensation | 14 | |
| Transaction related and other costs (4) | 3 | |
| Adjusted EBITDA (2) | ||
________________________
(1) These ranges represent management’s best estimates based on the underlying assumptions as of the date of this press release. Future acquisitions, capital market transactions, changes in market conditions, and other factors are excluded from our projections. There can be no assurance that our actual results will not differ materially from the estimates set forth above.
(2) The components of projected future results may not add due to rounding.
(3) See “Components of Projected Interest Expense” below.
(4) Future transaction related costs not mentioned herein are not included in our current outlook.
| Uniti Group Inc. | ||
| Projected Future Results (1) | ||
| (Per Diluted Share) | ||
| Year Ended December 31, 2025 | ||
| Net income attributable to common shareholders – Basic | ||
| Real estate depreciation and amortization | 0.98 | |
| Participating securities’ share in earnings and FFO, net | (0.03) | |
| FFO attributable to common shareholders – Basic (2) | ||
| Impact of if-converted securities | (0.14) | |
| FFO attributable to common shareholders – Diluted (2) | ||
| FFO attributable to common shareholders – Basic (2) | ||
| Transaction related and other costs (3) | - | |
| Amortization of deferred financing costs and debt discount | 0.11 | |
| Accretion of settlement payable (4) | 0.01 | |
| Stock-based compensation | 0.06 | |
| Non-real estate depreciation and amortization | 0.37 | |
| Straight-line revenues | (0.08) | |
| Maintenance capital expenditures | (0.03) | |
| Other, net | (0.24) | |
| AFFO attributable to common shareholders – Basic (2) | ||
| Impact of if-converted securities | (0.15) | |
| AFFO attributable to common shareholders – Diluted (2) | ||
________________________
(1) These ranges represent management’s best estimates based on the underlying assumptions as of the date of this press release. Future acquisitions, capital market transactions, changes in market conditions, and other factors are excluded from our projections. There can be no assurance that our actual results will not differ materially from the estimates set forth above.
(2) The components of projected future results may not add to FFO and AFFO attributable to common shareholders due to rounding.
(3) Future transaction related and other costs are not included in our current outlook.
(4) Represents the accretion of the Windstream settlement payable to its stated value. At the effective date of the settlement, we recorded the payable on the balance sheet at its initial fair value, which will be accreted based on an effective interest rate of
| Uniti Group Inc. | |||
| Components of Projected Interest Expense (1) | |||
| (In millions) | |||
| Year Ended December 31, 2025 | |||
| Interest expense on debt obligations | $ | 504 | |
| Accretion of Windstream settlement payable | 2 | ||
| Amortization of deferred financing cost and debt discounts | 26 | ||
| Interest expense, net (2) | $ | 532 | |
________________________
(1) These ranges represent management’s best estimates based on the underlying assumptions as of the date of this press release. Future acquisitions, capital market transactions, changes in market conditions, and other factors are excluded from our projections. There can be no assurance that our actual results will not differ materially from the estimates set forth above.
(2) The components of interest expense may not add to the total due to rounding.
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 presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). While we believe that net income, as defined by GAAP, is the most appropriate earnings measure, we also believe that EBITDA, Adjusted EBITDA, FFO and AFFO are important non-GAAP supplemental measures of operating performance for a REIT.
We define “EBITDA” as net income, as defined by GAAP, before interest expense, provision for income taxes and depreciation and amortization. We define “Adjusted EBITDA” as EBITDA before stock-based compensation expense and the impact, which may be recurring in nature, of transaction and integration related costs, costs associated with Windstream’s bankruptcy, costs associated with litigation claims made against us, and costs associated with the implementation of our enterprise resource planning system, (collectively, “Transaction Related and Other Costs”), costs related to the settlement with Windstream, goodwill impairment charges, severance costs, amortization of non-cash rights-of-use assets, the write off of unamortized deferred financing costs, costs incurred as a result of the early repayment of debt, including early tender and redemption premiums and costs associated with the termination of related hedging activities, gains or losses on dispositions, changes in the fair value of contingent consideration and financial instruments, and other similar or infrequent items (although we may not have had such charges in the periods presented). Adjusted EBITDA includes adjustments to reflect the Company’s share of Adjusted EBITDA from unconsolidated entities. We believe EBITDA and Adjusted EBITDA are important supplemental measures to net income because they provide additional information to evaluate our operating performance on an unleveraged basis. In addition, Adjusted EBITDA is calculated similar to defined terms in our material debt agreements used to determine compliance with specific financial covenants. Since EBITDA and Adjusted EBITDA are not measures calculated in accordance with GAAP, they should not be considered as alternatives to net income determined in accordance with GAAP.
Because the historical cost accounting convention used for real estate assets requires the recognition of depreciation expense except on land, such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that uses historical cost accounting for depreciation could be less informative. Thus, NAREIT created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP. FFO is defined by NAREIT as net income attributable to common shareholders computed in accordance with GAAP, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization and impairment charges, and includes adjustments to reflect the Company’s share of FFO from unconsolidated entities. We compute FFO in accordance with NAREIT’s definition.
The Company defines AFFO, as FFO excluding (i) Transaction Related and Other Costs; (ii) costs related to the litigation settlement with Windstream, accretion on our settlement obligation, and gains on the prepayment of our settlement obligation as these items are not reflective of ongoing operating performance; (iii) goodwill impairment charges; (iv) certain non-cash revenues and expenses such as stock-based compensation expense, amortization of debt and equity discounts, amortization of deferred financing costs, depreciation and amortization of non-real estate assets, amortization of non-cash rights-of-use assets, straight line revenues, non-cash income taxes, and the amortization of other non-cash revenues to the extent that cash has not been received, such as revenue associated with the amortization of tenant capital improvements; and (v) the impact, which may be recurring in nature, of the write-off of unamortized deferred financing fees, additional costs incurred as a result of the early repayment of debt, including early tender and redemption premiums and costs associated with the termination of related hedging activities, severance costs, taxes associated with tax basis cancellation of debt, gains or losses on dispositions, changes in the fair value of contingent consideration and financial instruments and similar or infrequent items less maintenance capital expenditures. AFFO includes adjustments to reflect the Company’s share of AFFO from unconsolidated entities. We believe that the use of FFO and AFFO, and their respective per share amounts, combined with the required GAAP presentations, improves the understanding of operating results of REITs among investors and analysts, and makes comparisons of operating results among such companies more meaningful. We consider FFO and AFFO to be useful measures for reviewing comparative operating performance. In particular, we believe AFFO, by excluding certain revenue and expense items, can help investors compare our operating performance between periods and to other REITs on a consistent basis without having to account for differences caused by unanticipated items and events, such as transaction and integration related costs. The Company uses FFO and AFFO, and their respective per share amounts, only as performance measures, and FFO and AFFO do not purport to be indicative of cash available to fund our future cash requirements. While FFO and AFFO are relevant and widely used measures of operating performance of REITs, they do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity or operating performance.
Further, our computations of EBITDA, Adjusted EBITDA, FFO and AFFO may not be comparable to that reported by other REITs or companies that do not define FFO in accordance with the current NAREIT definition or that interpret the current NAREIT definition or define EBITDA, Adjusted EBITDA and AFFO differently than we do.
INVESTOR AND MEDIA CONTACTS:
Paul Bullington, 251-662-1512
Senior Vice President, Chief Financial Officer & Treasurer
paul.bullington@uniti.com
Bill DiTullio, 501-850-0872
Senior Vice President, Investor Relations & Treasury
bill.ditullio@uniti.com
This press release was published by a CLEAR® Verified individual.
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