Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) (the "Company" or "Consolidated"), a top 10 fiber provider in the U.S., today reported results for the fourth quarter and full year 2023.
Fourth Quarter 2023 Results
Revenue totaled $275.2 million
Overall consumer revenue was $113.9 million
Consumer fiber revenue was $37.9 million
Total consumer broadband net adds were 6,998
Consumer broadband revenue was $76.5 million
Commercial data services revenue was $54.5 million
Carrier data-transport revenue was $31.7 million
Net loss was ($58.6 million). Adjusted EBITDA was $86.7 million
Total committed capital expenditures were $91.5 million
Cost of services and products and selling, general and administrative expenses collectively decreased $12.6 million versus the prior year largely due to the divestiture of the Kansas City operations on Nov. 30, 2022, lower video programming costs, lower advertising expense, lower access expense and a reduction in salaries driven by the cost savings initiative.
Net interest expense was $41.6 million, an increase of $8.4 million versus the prior year, primarily as a result of higher interest on the term loan. The Company had 77% of its total debt at a fixed rate through September 2026. As of Dec. 31, 2023, the weighted average cost of debt was 7.04%.
Net loss in the fourth quarter of 2023 was ($58.6 million) compared to net loss of ($45.5 million) in the fourth quarter of 2022, which included $5.8 million of income from discontinued operations. Net loss per share was ($0.52) in the fourth quarter of 2023 as compared to net loss per share of ($0.41) in the fourth quarter of 2022. Adjusted diluted net income (loss) per share excludes certain items as outlined in the table provided in this release. Adjusted diluted net loss per share from continuing operations was ($0.26) compared to ($0.17) in the fourth quarter of 2022.
Capital Expenditures
Total committed capital expenditures were $91.5 million, driven by 49,132 new fiber passings, fourth quarter fiber adds, and reflect the usage of existing inventory for install and build activity.
Full-Year 2023 Results
Revenue totaled $1.11 billion
Overall consumer revenue was $451.0 million
Consumer fiber revenue was $127.7 million
Total consumer broadband net adds were 25,761
Consumer broadband revenue was $290.8 million
Commercial data services revenue was $214.7 million
Carrier data-transport revenue was $127.2 million
Net loss was ($294.4 million). Adjusted EBITDA was $319.2 million
Total committed capital expenditures were $511.8 million
Capital Structure
As of Dec. 31, 2023, the Company maintained liquidity with cash and short-term investments of approximately $4.8 million and $214 million of available borrowing capacity on the revolving credit facility, subject to certain covenants. The net debt leverage ratio for the trailing 12 months ended Dec. 31, 2023, was 6.73x.
Pending Transaction
As previously announced, on Oct. 16, 2023, Consolidated entered into an agreement to be acquired by Searchlight and BCI in an all-cash transaction with an enterprise value of approximately $3.1 billion, including the assumption of debt. On Jan. 31, 2024, at a special meeting of shareholders, approximately 75% of disinterested shareholders voted to approve the proposal to adopt the merger agreement and approve the pending transaction. The transaction will result in Consolidated becoming a private company and is expected to close by the first quarter of 2025, subject to customary closing conditions, including receipt of regulatory approvals. The transaction is not subject to a financing condition. Following the closing of the transaction, shares of Consolidated common stock will no longer be traded or listed on any public securities exchange.
In light of the transaction, Consolidated will not host an earnings conference call.
About Consolidated Communications
Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) is dedicated to moving people, businesses and communities forward by delivering the most reliable fiber communications solutions. Consumers, businesses and wireless and wireline carriers depend on Consolidated for a wide range of high-speed internet, data, phone, security, cloud and wholesale carrier solutions. With a network spanning over 60,000 fiber route miles, Consolidated is a top 10 U.S. fiber provider, turning technology into solutions that are backed by exceptional customer support. Learn more at consolidated.com.
Use of Non-GAAP Financial Measures
This press release includes disclosures regarding "EBITDA," "adjusted EBITDA," "Net debt leverage ratio," "adjusted diluted net income (loss) per share," and "Normalized revenue," all of which are non-GAAP financial measures. 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 these non-GAAP financial measures to 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 (loss) from continuing operations. EBITDA is defined as income (loss) from continuing operations 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 "Net debt leverage ratio" principally to help investors understand how we measure leverage and facilitate comparisons by investors, security analysts and others. Total net debt is defined as the current and long-term portions of debt and finance lease obligations less cash, cash equivalents and short-term investments, deferred debt issuance costs and discounts on debt. Our Net debt leverage ratio differs in certain respects from the similar ratio used in our credit agreement or against comparable measures of certain other companies in our industry. 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. In addition, the Net debt leverage ratio 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.
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.
Forward-Looking Statements
Certain statements in this press release, including those relating to the current expectations, plans, strategies, and the timeline for consummating the take private transaction with Searchlight and BCI by the first quarter of 2025, are forward-looking statements and are made pursuant to the safe harbor provisions of the Private 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, including: significant competition in all parts of our business and among our customer channels; our ability to adapt to rapid technological changes; shifts in our product mix that may result in a decline in operating profitability; continued receipt of support from various funds established under federal and state laws; disruptions in our networks and infrastructure and any related service delays or disruptions could cause us to lose customers and incur additional expenses; cyber-attacks may lead to unauthorized access to confidential customer, personnel and business information that could adversely affect our business; our operations require substantial capital expenditures and our business, financial condition, results of operations and liquidity may be impacted if funds for capital expenditures are not available when needed; our ability to obtain and maintain necessary rights-of-way for our networks; our ability to obtain necessary hardware, software and operational support from third-party vendors; substantial video content costs continue to rise; our ability to enter into new collective bargaining agreements or renew existing agreements; our ability to attract and/or retain certain key management and other personnel in the future; risks associated with acquisitions and the realization of anticipated benefits from such acquisitions; increasing attention to, and evolving expectations for, environmental, social and governance initiatives; unfavorable changes in financial markets could affect pension plan investments; weak economic conditions; the risk that the proposed transaction may not be completed in a timely manner or at all; the possibility that any or all of the various conditions to the consummation of the proposed transaction may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations or restrictions placed on such approvals); the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive transaction agreement relating to the proposed transaction, including in circumstances which would require the Company to pay a termination fee; the effect of the announcement or pendency of the proposed transaction on the Company's ability to attract, motivate or retain key executives and employees, its ability to maintain relationships with its customers, suppliers and other business counterparties, or its operating results and business generally; risks related to the proposed transaction diverting management's attention from the Company's ongoing business operations; the amount of costs, fees and expenses related to the proposed transaction; the risk that the Company's stock price may decline significantly if the proposed transaction is not consummated; the risk of shareholder litigation in connection with the proposed transaction, including resulting expense or delay; and the other risk factors described in Part I, Item 1A of Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023 and the other risk factors identified from time to time in the Company's other filings with the SEC. Filings with the SEC are available on the SEC's website at http://www.sec.gov. 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. 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, undue reliance should not be placed on forward-looking statements, which are based on the information currently available to us and speak only as of the date they are made. Except as required under federal securities laws or the rules and regulations of the Securities and Exchange Commission, we disclaim any intention or obligation to update or revise publicly any 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)
December 31, December 31, December 31, December 31,
2023 2023 2023 2022
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ -------------------- ------------------------------------------------------ ------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ $ 4,765 $ $ $ 325,852
Short-term investments -- -- -- 87,951 87,951 87,951
Accounts receivable, net 121,194 121,194 121,194 119,675 119,675 119,675
Income tax receivable 2,880 2,880 2,880 1,670 1,670 1,670
Prepaid expenses and other current assets 56,843 56,843 56,843 62,996 62,996 62,996
Assets held for sale 70,473 70,473 70,473 -- -- --
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total current assets 256,155 256,155 256,155 598,144 598,144 598,144
Property, plant and equipment, net 2,449,009 2,449,009 2,449,009 2,234,122 2,234,122 2,234,122
Investments 8,887 8,887 8,887 10,297 10,297 10,297
Goodwill 814,624 814,624 814,624 929,570 929,570 929,570
Customer relationships, net 18,616 18,616 18,616 43,089 43,089 43,089
Other intangible assets 10,557 10,557 10,557 10,557 10,557 10,557
Other assets 70,578 70,578 70,578 61,315 61,315 61,315
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total assets $ $ 3,628,426 $ $ 3,887,094
==================== ==================== ============== ==================== ==================== ==================== ============== ====================
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ $ 60,073 $ $ 33,096
Advance billings and customer deposits 44,478 44,478 44,478 46,664 46,664 46,664
Accrued compensation 58,151 58,151 58,151 60,903 60,903 60,903
Accrued interest 18,694 18,694 18,694 18,201 18,201 18,201
Accrued expense 114,022 114,022 114,022 95,206 95,206 95,206
Current portion of long-term debt and finance lease obligations 18,425 18,425 18,425 12,834 12,834 12,834
Liabilities held for sale 3,402 3,402 3,402 -- -- --
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total current liabilities 317,245 317,245 317,245 266,904 266,904 266,904
Long-term debt and finance lease obligations 2,134,916 2,134,916 2,134,916 2,129,462 2,129,462 2,129,462
Deferred income taxes 210,648 210,648 210,648 274,309 274,309 274,309
Pension and other post-retirement obligations 137,616 137,616 137,616 123,644 123,644 123,644
Other long-term liabilities 48,637 48,637 48,637 47,326 47,326 47,326
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total liabilities 2,849,062 2,849,062 2,849,062 2,841,645 2,841,645 2,841,645
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Series A Preferred Stock, par value $0.01 per share; 10,000,000 shares authorized, 434,266 and 456,343 shares outstanding as of December 31, 2023 and December 31, 2022, respectively; liquidation preference of $520,957 and $477,047 as of December 31, 2023 and December 31, 2022, respectively 372,590 372,590 372,590 328,680 328,680 328,680
Shareholders' equity:
Common stock, par value $0.01 per share; 150,000,000 shares authorized, 116,172,568 and 115,167,193 shares outstanding as of December 31, 2023 and December 31, 2022, respectively 1,162 1,162 1,162 1,152 1,152 1,152
Additional paid-in capital 681,757 681,757 681,757 720,442 720,442 720,442
Accumulated deficit (262,380 (262,380 (262,380 ) (11,866 (11,866 (11,866 )
Accumulated other comprehensive loss, net (21,872 (21,872 (21,872 ) (610 (610 (610 )
Noncontrolling interest 8,107 8,107 8,107 7,651 7,651 7,651
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total shareholders' equity 406,774 406,774 406,774 716,769 716,769 716,769
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
| |
| Consolidated Communications Holdings, Inc.
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Three Months Ended Three Months Ended Year Ended
December 31, December 31, December 31, December 31,
-------------------------------------------------------- -------------------- -------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------
2023 2023 2023 2022 2023 2022
-------------------------------------------------------- -------------------- ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Net revenues $ $ 275,178 $ $ 295,976 $ $ 1,110,120 $ $ 1,191,263
Operating expenses:
Cost of services and products 120,539 120,539 120,539 133,652 133,652 133,652 511,866 511,866 511,866 546,661 546,661 546,661
Selling, general and administrative expenses 80,575 80,575 80,575 80,035 80,035 80,035 340,252 340,252 340,252 301,667 301,667 301,667
Transaction costs 11,797 11,797 11,797 -- -- -- 13,783 13,783 13,783 -- -- --
Loss on impairment of assets held for sale -- -- -- -- -- -- 77,755 77,755 77,755 131,698 131,698 131,698
Loss (gain) on disposal of assets (2,900 (2,900 (2,900 ) 23,396 23,396 23,396 9,480 9,480 9,480 4,233 4,233 4,233
Depreciation and amortization 78,321 78,321 78,321 79,614 79,614 79,614 315,162 315,162 315,162 300,166 300,166 300,166
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Income (loss) from operations (13,154 (13,154 (13,154 ) (20,721 (20,721 (20,721 ) (158,178 (158,178 (158,178 ) (93,162 (93,162 (93,162 )
Other income (expense):
Interest expense, net of interest income (41,630 (41,630 (41,630 ) (33,236 (33,236 (33,236 ) (151,964 (151,964 (151,964 ) (124,978 (124,978 (124,978 )
Other, net (3,200 (3,200 (3,200 ) 3,953 3,953 3,953 8,477 8,477 8,477 13,378 13,378 13,378
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Loss from continuing operations before income taxes (57,984 (57,984 (57,984 ) (50,004 (50,004 (50,004 ) (301,665 (301,665 (301,665 ) (204,762 (204,762 (204,762 )
Income tax benefit (10,699 (10,699 (10,699 ) (9,244 (9,244 (9,244 ) (51,607 (51,607 (51,607 ) (27,058 (27,058 (27,058 )
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Loss from continuing operations (47,285 (47,285 (47,285 ) (40,760 (40,760 (40,760 ) (250,058 (250,058 (250,058 ) (177,704 (177,704 (177,704 )
Discontinued operations:
Income from discontinued operations -- -- -- 839 839 839 -- -- -- 23,467 23,467 23,467
Gain (loss) on sale of discontinued operations -- -- -- (20 (20 (20 ) -- -- -- 389,885 389,885 389,885
Income tax expense (benefit) -- -- -- (4,974 (4,974 (4,974 ) -- -- -- 94,999 94,999 94,999
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Income from discontinued operations -- -- -- 5,793 5,793 5,793 -- -- -- 318,353 318,353 318,353
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Net income (loss) (47,285 (47,285 (47,285 ) (34,967 (34,967 (34,967 ) (250,058 (250,058 (250,058 ) 140,649 140,649 140,649
Less: dividends on Series A preferred stock 11,314 11,314 11,314 10,352 10,352 10,352 43,910 43,910 43,910 40,104 40,104 40,104
Less: net income attributable to noncontrolling interest 15 15 15 171 171 171 456 456 456 564 564 564
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Net income (loss) attributable to common shareholders $ $ (58,614 ) $ $ (45,490 ) $ $ (294,424 ) $ $ 99,981
==================== ==================== ============== ==================== ==================== ==================== ============== ==================== ==================== ==================== ============== ==================== ==================== ==================== ============== ====================
Net income (loss) per common share - basic and diluted:
Loss from continuing operations $ $ (0.52 ) $ $ (0.46 ) $ $ (2.60 ) $ $ (1.90 )
Income from discontinued operations -- -- -- 0.05 0.05 0.05 -- -- -- 2.77 2.77 2.77
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
| |
| Consolidated Communications Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
Three Months Ended Three Months Ended Three Months Ended Year Ended
December 31, December 31, December 31, December 31,
------------------------------------------------------------------------------------------- -------------------- -------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------
2023 2023 2023 2022 2023 2022
------------------------------------------------------------------------------------------- -------------------- ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ --------------------------------------------------
OPERATING ACTIVITIES
Net income (loss) $ $ (47,285 ) $ $ (34,967 ) $ $ (250,058 ) $ $ 140,649
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization 78,321 78,321 78,321 79,614 79,614 79,614 315,162 315,162 315,162 300,166 300,166 300,166
Deferred income tax expense (benefit) (11,395 (11,395 (11,395 ) (11,055 (11,055 (11,055 ) (56,092 (56,092 (56,092 ) 58,894 58,894 58,894
Cash distributions from wireless partnerships in excess of earnings -- -- -- 79 79 79 -- -- -- 5,697 5,697 5,697
Pension and post-retirement contributions less than (in excess) of expense 3,414 3,414 3,414 (5,214 (5,214 (5,214 ) (5,827 (5,827 (5,827 ) (29,205 (29,205 (29,205 )
Non-cash, stock-based compensation 2,165 2,165 2,165 2,784 2,784 2,784 7,613 7,613 7,613 10,755 10,755 10,755
Amortization of deferred financing costs and discounts 2,429 2,429 2,429 1,856 1,856 1,856 8,051 8,051 8,051 7,331 7,331 7,331
Loss on impairment of assets held for sale -- -- -- -- -- -- 77,755 77,755 77,755 131,698 131,698 131,698
Loss (gain) on sale of partnership interests -- -- -- 20 20 20 -- -- -- (389,885 (389,885 (389,885 )
Loss (gain) on disposal of assets (2,900 (2,900 (2,900 ) 23,396 23,396 23,396 9,480 9,480 9,480 4,233 4,233 4,233
Other adjustments, net 574 574 574 191 191 191 (1,673 (1,673 (1,673 ) (367 (367 (367 )
Changes in operating assets and liabilities, net (13,329 (13,329 (13,329 ) (51,125 (51,125 (51,125 ) 10,176 10,176 10,176 (16,256 (16,256 (16,256 )
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- --------------------
Net cash provided by operating activities 11,994 11,994 11,994 5,579 5,579 5,579 114,587 114,587 114,587 223,710 223,710 223,710
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- --------------------
INVESTING ACTIVITIES
Purchase of property, plant and equipment, net (90,838 (90,838 (90,838 ) (123,022 (123,022 (123,022 ) (515,035 (515,035 (515,035 ) (619,981 (619,981 (619,981 )
Purchase of investments -- -- -- (262,948 (262,948 (262,948 ) -- -- -- (302,907 (302,907 (302,907 )
Proceeds (disbursements) from sale of assets (135 (135 (135 ) 1,661 1,661 1,661 5,954 5,954 5,954 22,918 22,918 22,918
Proceeds from business dispositions, net -- -- -- 79,781 79,781 79,781 -- -- -- 105,823 105,823 105,823
Proceeds from sale and maturity of investments -- -- -- 175,859 175,859 175,859 91,623 91,623 91,623 327,419 327,419 327,419
Proceeds from sale of partnership interests, net -- -- -- (6,601 (6,601 (6,601 ) -- -- -- 482,966 482,966 482,966
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- --------------------
Net cash provided by (used in) investing activities (90,973 (90,973 (90,973 ) (135,270 (135,270 (135,270 ) (417,458 (417,458 (417,458 ) 16,238 16,238 16,238
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- --------------------
FINANCING ACTIVITIES
Payment of finance lease obligations (4,079 (4,079 (4,079 ) (2,725 (2,725 (2,725 ) (15,338 (15,338 (15,338 ) (9,836 (9,836 (9,836 )
Payment of financing costs (500 (500 (500 ) (2,603 (2,603 (2,603 ) (500 (500 (500 ) (2,603 (2,603 (2,603 )
Share repurchases for minimum tax withholding (1,294 (1,294 (1,294 ) (1,178 (1,178 (1,178 ) (2,378 (2,378 (2,378 ) (1,292 (1,292 (1,292 )
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- --------------------
Net cash used in financing activities (5,873 (5,873 (5,873 ) (6,506 (6,506 (6,506 ) (18,216 (18,216 (18,216 ) (13,731 (13,731 (13,731 )
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- --------------------
Net change in cash and cash equivalents (84,852 (84,852 (84,852 ) (136,197 (136,197 (136,197 ) (321,087 (321,087 (321,087 ) 226,217 226,217 226,217
Cash and cash equivalents at beginning of period 89,617 89,617 89,617 462,049 462,049 462,049 325,852 325,852 325,852 99,635 99,635 99,635
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- --------------------
| |
| Consolidated Communications Holdings, Inc.
Consolidated Revenue by Category
(Dollars in thousands)
(Unaudited)
Three Months Ended Three Months Ended Three Months Ended Year Ended
December 31, December 31, December 31, December 31,
----------------------------------- -------------------- ---------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------
2023 2023 2023 2022 2023 2022
----------------------------------- -------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
Consumer:
Broadband (Data and VoIP) $ $ 76,458 $ $ 69,002 $ $ 290,847 $ $ 272,146
Voice services 29,935 29,935 29,935 34,314 34,314 34,314 125,166 125,166 125,166 144,853 144,853 144,853
Video services 7,460 7,460 7,460 11,876 11,876 11,876 34,957 34,957 34,957 54,153 54,153 54,153
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
113,853 113,853 113,853 113,853 115,192 115,192 115,192 450,970 450,970 450,970 471,152 471,152 471,152
----------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Commercial:
Data services (includes VoIP) 54,473 54,473 54,473 56,662 56,662 56,662 214,707 214,707 214,707 228,466 228,466 228,466
Voice services 31,217 31,217 31,217 34,676 34,676 34,676 127,909 127,909 127,909 142,274 142,274 142,274
Other 10,521 10,521 10,521 10,320 10,320 10,320 39,883 39,883 39,883 43,100 43,100 43,100
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
96,211 96,211 96,211 101,658 101,658 101,658 382,499 382,499 382,499 413,840 413,840 413,840
96,211
----------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Carrier:
Data and transport services 31,713 31,713 31,713 33,752 33,752 33,752 127,248 127,248 127,248 137,378 137,378 137,378
Voice services 2,868 2,868 2,868 3,685 3,685 3,685 15,588 15,588 15,588 14,772 14,772 14,772
Other 243 243 243 338 338 338 1,168 1,168 1,168 1,688 1,688 1,688
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
34,824 34,824 34,824 34,824 37,775 37,775 37,775 144,004 144,004 144,004 153,838 153,838 153,838
----------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Subsidies 6,902 6,902 6,902 13,078 13,078 13,078 27,888 27,888 27,888 33,382 33,382 33,382
Network access 22,217 22,217 22,217 26,308 26,308 26,308 90,250 90,250 90,250 104,644 104,644 104,644
Other products and services 1,171 1,171 1,171 1,965 1,965 1,965 14,509 14,509 14,509 14,407 14,407 14,407
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
| |
| Consolidated Communications Holdings, Inc.
Consolidated Revenue Trend by Category
(Dollars in thousands)
(Unaudited)
Three Months Ended Three Months Ended Three Months Ended
----------------------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Q4 2023 Q4 2023 Q4 2023 Q3 2023 Q3 2023 Q2 2023 Q2 2023 Q1 2023 Q1 2023 Q4 2022 Q4 2022
----------------------------------- -------------------- -------------------------------------------------------------- -------------------------------------------------------------- -------------------------------------------------------------- -------------------------------------------------------------- ------------------------------------------
Consumer:
Broadband (Data and VoIP) $ $ 76,458 $ $ 75,089 $ $ 71,339 $ $ 67,961 $ $ 69,002
Voice services 29,935 29,935 29,935 31,616 31,616 31,616 31,352 31,352 31,352 32,263 32,263 32,263 34,314 34,314 34,314
Video services 7,460 7,460 7,460 8,541 8,541 8,541 9,362 9,362 9,362 9,594 9,594 9,594 11,876 11,876 11,876
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
113,853 113,853 113,853 115,246 115,246 115,246 112,053 112,053 112,053 109,818 109,818 109,818 115,192 115,192 115,192
113,853
----------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Commercial:
Data services (includes VoIP) 54,473 54,473 54,473 53,870 53,870 53,870 53,230 53,230 53,230 53,134 53,134 53,134 56,662 56,662 56,662
Voice services 31,217 31,217 31,217 31,825 31,825 31,825 32,236 32,236 32,236 32,631 32,631 32,631 34,676 34,676 34,676
Other 10,521 10,521 10,521 9,228 9,228 9,228 10,378 10,378 10,378 9,756 9,756 9,756 10,320 10,320 10,320
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
96,211 96,211 96,211 94,923 94,923 94,923 95,844 95,844 95,844 95,521 95,521 95,521 101,658 101,658 101,658
96,211
----------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Carrier:
Data and transport services 31,713 31,713 31,713 31,388 31,388 31,388 31,224 31,224 31,224 32,923 32,923 32,923 33,752 33,752 33,752
Voice services 2,868 2,868 2,868 4,090 4,090 4,090 4,263 4,263 4,263 4,367 4,367 4,367 3,685 3,685 3,685
Other 243 243 243 262 262 262 313 313 313 350 350 350 338 338 338
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
34,824 34,824 34,824 35,740 35,740 35,740 35,800 35,800 35,800 37,640 37,640 37,640 37,775 37,775 37,775
34,824
----------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Subsidies 6,902 6,902 6,902 6,878 6,878 6,878 7,072 7,072 7,072 7,036 7,036 7,036 13,078 13,078 13,078
Network access 22,217 22,217 22,217 20,842 20,842 20,842 22,747 22,747 22,747 24,444 24,444 24,444 26,308 26,308 26,308
Other products and services 1,171 1,171 1,171 10,025 10,025 10,025 1,646 1,646 1,646 1,667 1,667 1,667 1,965 1,965 1,965
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
| |
| Consolidated Communications Holdings, Inc.
Reconciliation of Historical Revenue by Category to Normalized Revenue by Category
(Dollars in thousands)
(Unaudited)
Three Months Ended Three Months Ended Three Months Ended Year Ended Year Ended
December 31, 2022 December 31, 2022 December 31, 2022 December 31, 2022 December 31, 2022
----------------------------------- -------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Historical Historical Historical Adjustments (1) Adjustments (1) Normalized Normalized Historical Historical Adjustments (1) Adjustments (1) Normalized Normalized
----------------------------------- -------------------- ------------------------------------------------------------------------- ----------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- -------------------------------------------------------------- -----------------------------------------------------
Consumer:
Broadband (Data and VoIP) $ $ 69,002 $ $ $ (1,138 ) $ $ 67,864 $ $ $ 272,146 $ $ $ (6,732 ) $ $ 265,414
Voice services 34,314 34,314 34,314 (328 (328 (328 ) 33,986 33,986 33,986 144,853 144,853 144,853 (2,067 (2,067 (2,067 ) 142,786 142,786 142,786
Video services 11,876 11,876 11,876 (1,679 (1,679 (1,679 ) 10,197 10,197 10,197 54,153 54,153 54,153 (9,684 (9,684 (9,684 ) 44,469 44,469 44,469
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- ---------- --------------------
115,192 115,192 115,192 (3,145 (3,145 (3,145 ) 112,047 112,047 112,047 471,152 471,152 471,152 (18,483 (18,483 (18,483 ) 452,669 452,669 452,669
115,192
----------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- ---------- --------------------
Commercial:
Data services (includes VoIP) 56,662 56,662 56,662 (2,952 (2,952 (2,952 ) 53,710 53,710 53,710 228,466 228,466 228,466 (15,355 (15,355 (15,355 ) 213,111 213,111 213,111
Voice services 34,676 34,676 34,676 (818 (818 (818 ) 33,858 33,858 33,858 142,274 142,274 142,274 (4,864 (4,864 (4,864 ) 137,410 137,410 137,410
Other 10,320 10,320 10,320 (179 (179 (179 ) 10,141 10,141 10,141 43,100 43,100 43,100 (1,039 (1,039 (1,039 ) 42,061 42,061 42,061
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- ---------- --------------------
101,658 101,658 101,658 (3,949 (3,949 (3,949 ) 97,709 97,709 97,709 413,840 413,840 413,840 (21,258 (21,258 (21,258 ) 392,582 392,582 392,582
101,658
----------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- ---------- --------------------
Carrier:
Data and transport services 33,752 33,752 33,752 (171 (171 (171 ) 33,581 33,581 33,581 137,378 137,378 137,378 (4,095 (4,095 (4,095 ) 133,283 133,283 133,283
Voice services 3,685 3,685 3,685 (2 (2 (2 ) 3,683 3,683 3,683 14,772 14,772 14,772 (14 (14 (14 ) 14,758 14,758 14,758
Other 338 338 338 (3 (3 (3 ) 335 335 335 1,688 1,688 1,688 (11 (11 (11 ) 1,677 1,677 1,677
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- ---------- --------------------
37,775 37,775 37,775 (176 (176 (176 ) 37,599 37,599 37,599 153,838 153,838 153,838 (4,120 (4,120 (4,120 ) 149,718 149,718 149,718
37,775
----------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- ---------- --------------------
Subsidies 13,078 13,078 13,078 -- -- -- 13,078 13,078 13,078 33,382 33,382 33,382 (49 (49 (49 ) 33,333 33,333 33,333
Network access 26,308 26,308 26,308 (303 (303 (303 ) 26,005 26,005 26,005 104,644 104,644 104,644 (1,715 (1,715 (1,715 ) 102,929 102,929 102,929
Other products and services 1,965 1,965 1,965 (121 (121 (121 ) 1,844 1,844 1,844 14,407 14,407 14,407 (490 (490 (490 ) 13,917 13,917 13,917
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- ---------- --------------------
Total operating revenue $ $ 295,976 $ $ (7,694 ) $ $ 288,282 $ $ 1,191,263 $ $ (46,115 ) $ $ 1,145,148
==================== ==================== ========== ==================== ==================== ==================== ============== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ========= ==================== ==================== ========== ====================
Notes:
| |
| Consolidated Communications Holdings, Inc.
Reconciliation of Loss from Continuing Operations to Adjusted EBITDA
(Dollars in thousands)
(Unaudited)
Three Months Ended Three Months Ended Three Months Ended Year Ended
December 31, December 31, December 31, December 31,
----------------------------------------------------- -------------------- -------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------
2023 2023 2023 2022 2023 2022
----------------------------------------------------- -------------------- ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ --------------------------------------------------
Loss from continuing operations $ $ (47,285 ) $ $ (40,760 ) $ $ (250,058 ) $ $ (177,704 )
Add (subtract):
Income tax benefit (10,699 (10,699 (10,699 ) (9,244 (9,244 (9,244 ) (51,607 (51,607 (51,607 ) (27,058 (27,058 (27,058 )
Interest expense, net 41,630 41,630 41,630 33,236 33,236 33,236 151,964 151,964 151,964 124,978 124,978 124,978
Depreciation and amortization 78,321 78,321 78,321 79,614 79,614 79,614 315,162 315,162 315,162 300,166 300,166 300,166
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- --------------------
EBITDA 61,967 61,967 61,967 62,846 62,846 62,846 165,461 165,461 165,461 220,382 220,382 220,382
Adjustments to EBITDA (1):
Other, net (2) 20,697 20,697 20,697 11,902 11,902 11,902 57,534 57,534 57,534 29,656 29,656 29,656
Pension/OPEB benefit 4,751 4,751 4,751 (3,412 (3,412 (3,412 ) 1,356 1,356 1,356 (12,309 (12,309 (12,309 )
Loss (gain) on disposal of assets (2,900 (2,900 (2,900 ) 23,396 23,396 23,396 9,480 9,480 9,480 4,233 4,233 4,233
Loss on impairment -- -- -- -- -- -- 77,755 77,755 77,755 131,698 131,698 131,698
Non-cash compensation (3) 2,165 2,165 2,165 2,784 2,784 2,784 7,613 7,613 7,613 10,755 10,755 10,755
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- --------------------
Adjusted EBITDA from continuing operations 86,680 86,680 86,680 97,516 97,516 97,516 319,199 319,199 319,199 384,415 384,415 384,415
Investment distributions from discontinued operations -- -- -- 4,142 4,142 4,142 -- -- -- 29,165 29,165 29,165
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- ---------- --------------------
Adjusted EBITDA $ $ 86,680 $ $ 101,658 $ $ 319,199 $ $ 413,580
==================== ==================== ============== ==================== ==================== ==================== ============== ==================== ==================== ==================== ============== ==================== ==================== ==================== ========== ====================
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.
| |
| Consolidated Communications Holdings, Inc.
Reconciliation of Loss Attributable to Common Shareholders from Continuing Operations to Adjusted Loss from Continuing Operations and Calculation of Adjusted Diluted Net Income (Loss) Per Common Share
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Three Months Ended Three Months Ended Year Ended
December 31, December 31, December 31, December 31,
-------------------------------------------------------------------------------------------------------- -------------------- -------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------
2023 2023 2023 2022 2023 2022
-------------------------------------------------------------------------------------------------------- -------------------- ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Loss from continuing operations $ $ (47,285 ) $ $ (40,760 ) $ $ (250,058 ) $ $ (177,704 )
Less: dividends on Series A preferred stock 11,314 11,314 11,314 10,352 10,352 10,352 43,910 43,910 43,910 40,104 40,104 40,104
Less: net income attributable to noncontrolling interest 15 15 15 171 171 171 456 456 456 564 564 564
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Loss attributable to common shareholders from continuing operations (58,614 (58,614 (58,614 ) (51,283 (51,283 (51,283 ) (294,424 (294,424 (294,424 ) (218,372 (218,372 (218,372 )
Adjustments to loss attributable to common shareholders:
Dividends on Series A preferred stock 11,314 11,314 11,314 10,352 10,352 10,352 43,910 43,910 43,910 40,104 40,104 40,104
Integration and severance related costs, net of tax 9,551 9,551 9,551 1,498 1,498 1,498 26,604 26,604 26,604 3,081 3,081 3,081
Loss on impairment of assets held for sale -- -- -- -- -- -- 77,755 77,755 77,755 131,698 131,698 131,698
Loss (gain) on disposition of assets, net of tax (2,141 (2,141 (2,141 ) 17,354 17,354 17,354 6,999 6,999 6,999 3,140 3,140 3,140
Non-cash pension settlement charge, net of tax 4,727 4,727 4,727 -- -- -- 4,727 4,727 4,727 -- -- --
Non-cash interest expense for swaps, net of tax -- -- -- (339 (339 (339 ) (732 (732 (732 ) (1,274 (1,274 (1,274 )
Tax impact of non-deductible goodwill 2,618 2,618 2,618 2,931 2,931 2,931 -- -- -- (8,187 (8,187 (8,187 )
Change in deferred tax rate 112 112 112 (2,417 (2,417 (2,417 ) 112 112 112 (3,062 (3,062 (3,062 )
Other, tax 1,749 1,749 1,749 622 622 622 1,749 1,749 1,749 622 622 622
Non-cash stock compensation, net of tax 1,598 1,598 1,598 2,065 2,065 2,065 5,621 5,621 5,621 7,977 7,977 7,977
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Adjusted net loss from continuing operations $ $ (29,086 ) $ $ (19,217 ) $ $ (127,679 ) $ $ (44,273 )
==================== ==================== ============== ==================== ==================== ==================== ============== ==================== ==================== ==================== ============== ==================== ==================== ==================== ============== ====================
Weighted average number of common shares outstanding 113,338 113,338 113,338 111,929 111,929 111,929 113,096 113,096 113,096 111,754 111,754 111,754
==================== ==================== ============== ==================== ==================== ==================== ============== ==================== ==================== ==================== ============== ==================== ==================== ==================== ============== ====================
Adjusted diluted net income (loss) per common share:
Adjusted net loss from continuing operations $ $ (0.26 ) $ $ (0.17 ) $ $ (1.13 ) $ $ (0.40 )
Adjusted income from discontinued operations excluding gain on sale of partnership interests, net of tax -- -- -- 0.01 0.01 0.01 -- -- -- 0.16 0.16 0.16
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
$ $ $ (0.26 ) $ $ (0.16 ) $ $ (1.13 ) $ $ (0.24 )
======================================================================================================== ==================== ==================== ============== ==================== ==================== ==================== ============== ==================== ==================== ==================== ============== ==================== ==================== ==================== ============== ====================
Notes:
| |
| Consolidated Communications Holdings, Inc.
Reconciliation of Total Net Debt to LTM Adjusted EBITDA Ratio
(Dollars in thousands)
(Unaudited)
December 31, December 31, December 31,
2023 2023 2023
--------------------------------------------------------- -------------------- ------------------------------------------------------------
Long-term debt and finance lease obligations:
Term loans, net of discount $7,017 $ $ 992,858
6.50% Senior secured notes due 2028 750,000 750,000 750,000
5.00% Senior secured notes due 2028 400,000 400,000 400,000
Finance leases 39,240 39,240 39,240
-------------------- -------------------- -------------------- --------------------
Total debt as of December 31, 2023 2,182,098 2,182,098 2,182,098
Less: deferred debt issuance costs (28,757 (28,757 (28,757 )
Less: cash, cash equivalents and short-term investments (4,765 (4,765 (4,765 )
-------------------- -------------------- -------------------- --------------------
Total net debt as of December 31, 2023 $ $ 2,148,576
==================== ==================== ==================== ====================
Adjusted EBITDA for the 12 months ended December 31, 2023 $ $ 319,199
| |
| Consolidated Communications Holdings, Inc.
Key Operating Metrics
(Unaudited)
2022 2023
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ -------------------- -------------------- -------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
-------------------------------------------------- -------------------------------------------------- -------------------------------------------------- -------------------------------------------------- ------------------------------------------------------------ -------------------------------------------------- -------------------------------------------------- -------------------------------------------------- -------------------------------------------------- ------------------------------------------------------------
Passings
-----------------------------------------------------
Total Fiber Gig+ Capable Passings (1)(5)(6) 689,406 689,406 689,406 831,779 831,779 831,779 947,974 947,974 947,974 1,008,660 1,008,660 1,008,660 1,008,660 1,008,660 1,008,660 1,062,518 1,062,518 1,062,518 1,119,956 1,119,956 1,119,956 1,187,076 1,187,076 1,187,076 1,236,208 1,236,208 1,236,208 1,236,208 1,236,208 1,236,208
Total DSL/Copper Passings (2)(3)(5)(6) 2,059,025 2,059,025 2,059,025 1,920,214 1,920,214 1,920,214 1,807,381 1,807,381 1,807,381 1,617,077 1,617,077 1,617,077 1,617,077 1,617,077 1,617,077 1,564,889 1,564,889 1,564,889 1,509,875 1,509,875 1,509,875 1,447,539 1,447,539 1,447,539 1,401,535 1,401,535 1,401,535 1,401,535 1,401,535 1,401,535
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Passings (1)(2)(3)(5)(6) 2,748,431 2,748,431 2,748,431 2,751,993 2,751,993 2,751,993 2,755,355 2,755,355 2,755,355 2,625,737 2,625,737 2,625,737 2,625,737 2,625,737 2,625,737 2,627,407 2,627,407 2,627,407 2,629,831 2,629,831 2,629,831 2,634,615 2,634,615 2,634,615 2,637,743 2,637,743 2,637,743 2,637,743 2,637,743 2,637,743
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- --------------------
% Fiber Gig+ Coverage/Total Passings 25 25 25 % 30 30 30 % 34 34 34 % 38 38 38 % 38 38 38 % 40 40 40 % 43 43 43 % 45 45 45 % 47 47 47 % 47 47 47 %
Consumer Broadband Connections
-----------------------------------------------------
Fiber Gig+ Capable (3) 93,812 93,812 93,812 103,455 103,455 103,455 115,598 115,598 115,598 122,872 122,872 122,872 122,872 122,872 122,872 135,209 135,209 135,209 153,860 153,860 153,860 175,748 175,748 175,748 195,195 195,195 195,195 195,195 195,195 195,195
DSL/Copper (2)(3) 286,338 286,338 286,338 277,758 277,758 277,758 266,314 266,314 266,314 244,586 244,586 244,586 244,586 244,586 244,586 234,653 234,653 234,653 222,969 222,969 222,969 210,473 210,473 210,473 198,024 198,024 198,024 198,024 198,024 198,024
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Consumer Broadband Connections (2)(3) 380,150 380,150 380,150 381,213 381,213 381,213 381,912 381,912 381,912 367,458 367,458 367,458 367,458 367,458 367,458 369,862 369,862 369,862 376,829 376,829 376,829 386,221 386,221 386,221 393,219 393,219 393,219 393,219 393,219 393,219
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- --------------------
Consumer Broadband Net Adds
-----------------------------------------------------
Total Fiber Gig+ Capable Net Adds (7) 7,690 7,690 7,690 9,643 9,643 9,643 12,143 12,143 12,143 10,599 10,599 10,599 40,075 40,075 40,075 12,337 12,337 12,337 18,651 18,651 18,651 21,888 21,888 21,888 19,447 19,447 19,447 72,323 72,323 72,323
DSL/Copper Net Adds (7) (8,544 (8,544 (8,544 ) (8,580 (8,580 (8,580 ) (11,444 (11,444 (11,444 ) (10,783 (10,783 (10,783 ) (39,351 (39,351 (39,351 ) (9,933 (9,933 (9,933 ) (11,684 (11,684 (11,684 ) (12,496 (12,496 (12,496 ) (12,449 (12,449 (12,449 ) (46,562 (46,562 (46,562 )
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Consumer Broadband Net Adds (7) (854 (854 (854 ) 1,063 1,063 1,063 699 699 699 (184 (184 (184 ) 724 724 724 2,404 2,404 2,404 6,967 6,967 6,967 9,392 9,392 9,392 6,998 6,998 6,998 25,761 25,761 25,761
Consumer Broadband Penetration %
-----------------------------------------------------
Fiber Gig+ Capable (on fiber passings) 13.6 13.6 13.6 % 12.4 12.4 12.4 % 12.2 12.2 12.2 % 12.2 12.2 12.2 % 12.2 12.2 12.2 % 12.7 12.7 12.7 % 13.7 13.7 13.7 % 14.8 14.8 14.8 % 15.8 15.8 15.8 % 15.8 15.8 15.8 %
DSL/Copper (on DSL/copper passings) 13.9 13.9 13.9 % 14.5 14.5 14.5 % 14.7 14.7 14.7 % 15.1 15.1 15.1 % 15.1 15.1 15.1 % 15.0 15.0 15.0 % 14.8 14.8 14.8 % 14.5 14.5 14.5 % 14.1 14.1 14.1 % 14.1 14.1 14.1 %
Total Consumer Broadband Penetration % 13.8 13.8 13.8 % 13.9 13.9 13.9 % 13.9 13.9 13.9 % 14.0 14.0 14.0 % 14.0 14.0 14.0 % 14.1 14.1 14.1 % 14.3 14.3 14.3 % 14.7 14.7 14.7 % 14.9 14.9 14.9 % 14.9 14.9 14.9 %
Consumer Average Revenue Per Unit (ARPU)
-----------------------------------------------------
Fiber Gig+ Capable $ $ 63.88 $ $ 64.95 $ $ 65.61 $ $ 67.14 $ $ 65.42 $ $ 67.51 $ $ 68.29 $ $ 68.78 $ $ 68.14 $ $ 66.90
DSL/Copper $ $ 50.78 $ $ 52.36 $ $ 53.87 $ $ 53.55 $ $ 53.36 $ $ 53.21 $ $ 55.88 $ $ 57.18 $ $ 56.27 $ $ 55.83
Churn
-----------------------------------------------------
Fiber Consumer Broadband Churn (7) 0.9 0.9 0.9 % 1.1 1.1 1.1 % 1.2 1.2 1.2 % 1.1 1.1 1.1 % 1.1 1.1 1.1 % 1.0 1.0 1.0 % 1.3 1.3 1.3 % 1.3 1.3 1.3 % 1.2 1.2 1.2 % 1.2 1.2 1.2 %
DSL/Copper Consumer Broadband Churn (7) 1.3 1.3 1.3 % 1.6 1.6 1.6 % 1.8 1.8 1.8 % 1.7 1.7 1.7 % 1.6 1.6 1.6 % 1.5 1.5 1.5 % 1.7 1.7 1.7 % 2.0 2.0 2.0 % 2.0 2.0 2.0 % 1.8 1.8 1.8 %
Consumer Broadband Revenue ($ in thousands)
-----------------------------------------------------
Fiber Broadband Revenue (4) $ $ 17,242 $ $ 19,218 $ $ 21,558 $ $ 24,016 $ $ 82,034 $ $ 26,136 $ $ 29,613 $ $ 34,004 $ $ 37,916 $ $ 127,668
Copper and Other Broadband Revenue 48,669 48,669 48,669 48,374 48,374 48,374 48,083 48,083 48,083 44,986 44,986 44,986 190,112 190,112 190,112 41,825 41,825 41,825 41,726 41,726 41,726 41,085 41,085 41,085 38,542 38,542 38,542 163,179 163,179 163,179
-------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Consumer Broadband Revenue $ $ 65,911 $ $ 67,592 $ $ 69,641 $ $ 69,002 $ $ 272,146 $ $ 67,961 $ $ 71,339 $ $ 75,089 $ $ 76,458 $ $ 290,847
Consumer Voice Connections (3) 316,634 316,634 316,634 306,458 306,458 306,458 294,441 294,441 294,441 276,779 276,779 276,779 276,779 276,779 276,779 267,509 267,509 267,509 258,680 258,680 258,680 249,081 249,081 249,081 239,587 239,587 239,587 239,587 239,587 239,587
Video Connections (3) 58,812 58,812 58,812 55,225 55,225 55,225 51,339 51,339 51,339 35,039 35,039 35,039 35,039 35,039 35,039 32,426 32,426 32,426 28,934 28,934 28,934 26,158 26,158 26,158 21,900 21,900 21,900 21,900 21,900 21,900
Fiber route network miles (long-haul, metro and FttP) 54,239 54,239 54,239 56,093 56,093 56,093 57,498 57,498 57,498 57,865 57,865 57,865 57,865 57,865 57,865 57,569 57,569 57,569 58,836 58,836 58,836 59,915 59,915 59,915 60,438 60,438 60,438 60,438 60,438 60,438
On-net buildings (3) 15,446 15,446 15,446 15,618 15,618 15,618 15,715 15,715 15,715 14,427 14,427 14,427 14,427 14,427 14,427 14,520 14,520 14,520 14,735 14,735 14,735 14,928 14,928 14,928 15,105 15,105 15,105 15,105 15,105 15,105
Notes:
(1) In Q1 2021, the Company launched a multi-year fiber build plan to upgrade 1.6 million passings or 70% of our service area to fiber Gig+ capable services. As of December 31, 2023, 227,548 passings for 2023 were upgraded to FttP and total fiber passings were 1,236,208 or 47% of the Company's service area.
(2) The sale of the non-core Ohio operations resulted in a reduction of approximately 5,658 DSL/Copper passings and 3,560 DSL/Copper broadband connections in the first quarter of 2022.
(3) The sale of the net assets of our Kansas City operations in the fourth quarter of 2022 resulted in a reduction of approximately 135,144 DSL/Copper passings, 3,325 fiber broadband connections, 10,945 DSL/Copper broadband connections, 6,670 consumer voice connections, 13,425 video connections and 1,415 on-net buildings. Prior period amounts have not been adjusted to reflect the sale.
(4) Fiber broadband revenue includes revenue from our Kansas City operations of approximately $0.3 million for the quarter ended December 31, 2022 and approximately $0.5 million for each of the quarters ended March 31, 2022 through September 30, 2022. Amounts have not been adjusted to reflect the sale.
(5) Passings counts are estimates of single family units, multi-dwelling units, and multi-tenant units within consumer, small business and enterprise. These counts are based upon the information available at this time and are subject to updates as additional information becomes available.
(6) When a passing is both fiber and DSL/Copper capable it is counted as a fiber passing.
| |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240304282812/en/
SOURCE: Consolidated Communications
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Investor and Media Contacts
Philip Kranz, Investor Relations
+1 217-238-8480
Philip.kranz@consolidated.com
Jennifer Spaude, Media Relations
+1 507-386-3765
Jennifer.spaude@consolidated.com
| |
COMTEX_448764476/1006/2024-03-05T08:00:01 |
0.12% $0.01
