Uniti Group Inc (UNIT)

Uniti Group Inc. Reports Fourth Quarter and Full Year 2023 Results
February 29 2024 - 08:00AM

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Uniti Group Inc. (“Uniti” or the “Company”) (Nasdaq: UNIT) today announced its results for the fourth quarter and full year 2023.
“2023 was another productive year for Uniti. Our core recurring strategic fiber business continues to demonstrate its resiliency with top line growth of 5% in 2023 when compared to 2022 and continued declining net success-based capital intensity. Non-recurring revenue was predictably lower in 2023 than in 2022 due to lower ETL fees and one-time low-margin equipment sales, which we have decided to largely exit in 2024. As a result, our full year 2023 Adjusted EBITDA and AFFO results were essentially in-line with our previous full year guidance,” commented President and Chief Executive Officer, Kenny Gunderman.

Mr. Gunderman continued, “Despite a challenging economic backdrop, Uniti successfully fully financed its current business plan by refinancing $3.1 billion of its outstanding debt in 2023, while also raising up to $437 million of additional capital through the ABS bridge financing and recent non-core asset sales at premium multiples. These initiatives result in our current business plan being fully funded, no material permanent debt maturities until 2027, and over 95% of our consolidated debt being fixed rate.”

QUARTERLY RESULTS

Consolidated revenues for the fourth quarter of 2023 were $285.7 million. Net income and Adjusted EBITDA were $30.7 million and $231.1 million, respectively, for the same period, achieving Adjusted EBITDA margins of approximately 81%. Net income attributable to common shares was $30.4 million for the period. AFFO attributable to common shareholders was $91.6 million, or $0.34 per diluted common share.

Uniti Fiber contributed $70.7 million of revenues and $27.0 million of Adjusted EBITDA for the fourth quarter of 2023, achieving Adjusted EBITDA margins of approximately 38%. Uniti Fiber’s net success-based capital expenditures during the quarter were $20.7 million.

Uniti Leasing contributed revenues of $214.9 million and Adjusted EBITDA of $209.5 million for the fourth quarter. During the quarter, Uniti Leasing deployed capital expenditures of $23.1 million.

FULL YEAR RESULTS

Consolidated revenues for the year ended December 31, 2023 were $1.1 billion. Net loss and Adjusted EBITDA were $81.7 million and $923.5 million, respectively, for the same period. Net loss attributable to common shares was $82.9 million for the period, and included a $204.0 million goodwill impairment charge related to our Uniti Fiber segment that was driven by an increase in the macro interest rate environment. AFFO attributable to common shareholders was $385.3 million, or $1.42 per diluted common share.

Uniti Fiber contributed $297.1 million of revenues and $115.7 million of Adjusted EBITDA for the full year of 2023, achieving Adjusted EBITDA margins of approximately 39%. Uniti Fiber’s net success-based capital expenditures for the full year of 2023 were $118.3 million.

Uniti Leasing contributed revenues of $852.8 million and Adjusted EBITDA of $829.6 million for the full year of 2023. For the full year of 2023, Uniti Leasing deployed capital expenditures of $277.2 million primarily related to the construction of approximately 4,100 new route miles of valuable fiber infrastructure.

FINANCING TRANSACTIONS

On February 26th, Uniti announced that it had entered into an asset-backed Bridge Loan and Security Agreement for up to $350 million of borrowings pursuant to a multi-draw term loan facility (the “ABS Facility”) through an indirect, bankruptcy remote subsidiary of the Company. Borrowings under the ABS Facility will bear interest at an initial rate equal to Term SOFR for the applicable interest period plus an applicable margin of 3.75%, subject to customary step-ups in the applicable margin based on how long the ABS Facility remains outstanding. The ABS Facility will mature 18 months from the initial draw date and is subject to customary covenants.

INVESTMENT TRANSACTIONS

On February 26th, Uniti also announced multiple asset sales that it recently completed. First, Uniti sold its remaining investment interest in the fiber network operated by Bluebird Network LLC. In addition, Uniti sold to CableSouth Media III, LLC (“SwyftFiber”) the fiber network assets previously leased to SwyftFiber since its 2018 sale leaseback transaction with Uniti. As part of the agreement, Uniti will continue to have access to certain strands within the SwyftFiber network at zero cost. Finally, Uniti recently completed the sale of essentially all of its remaining wireless towers to CTI Towers, Inc., a portfolio company of Palistar Capital LP. Total cash consideration for these transactions was approximately $87 million.

LIQUIDITY

At year-end, the Company had approximately $354.3 million of unrestricted cash and cash equivalents, and undrawn borrowing availability under its revolving credit agreement. The Company’s leverage ratio at year-end was 6.03x based on net debt to fourth quarter 2023 annualized Adjusted EBITDA.

On February 22, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.15 per common share, payable on April 12, 2024, to stockholders of record on March 28, 2024.

FULL YEAR 2024 OUTLOOK

Our 2024 outlook includes the estimated impact from the recent ABS Facility, the planned exit of most one-time equipment sales, the recently completed asset sales, and the upcoming maturity of the remaining 4.00% exchangeable notes due June 2024. Our outlook excludes future acquisitions, capital market transactions, and future transaction-related and other costs not mentioned herein.

$.15 exdividend date tomorrow.

It's a bear raid.

I think it's ready.

Uniti Investors Reach $39M Deal In Securities Fraud Suit

An Arkansas federal judge gave a preliminary approved an almost $39 million securities class action settlement resolving Uniti Group Inc. investors' claims that the real estate investment trust and wireless solutions provider hid a prohibited sale-leaseback transaction with its parent company relating to a 2015 spinoff.
The settlement is on behalf of investors who bought or acquired Uniti common stock between April 24, 2015, and June 24, 2019.

About time this turd moved... running out of time value.

ROFL youre replying to a 14 month old post, lololol try to stay current

$UNIT bulls and bears Uniti Group Inc Nasdaq Unit Short Squeeze

Uniti Group Inc. (“Uniti”) (Nasdaq: UNIT) announced today that its President and Chief Executive Officer, Kenny Gunderman, and Vice President, Finance and Investor Relations, Bill DiTullio, are scheduled to participate at the Goldman Sachs 28th Annual Communacopia Conference. The presentation is scheduled for 9:40 AM ET on September 18, 2019 in New York, NY.

Pure junk!

Look at Tailored Brands ($TLRD) pays over 15% dividend, Exdiv 9/16

YUP, that mismanaged BANKRUPT company took away UNITs handsome .60 cent quarterly dividend, THATS the only reason I was interested in UNIT

UNIT on WINMQ "We hope that Windstream and its constituents will focus on building a sustainable plan for Windstream's future rather than pursuing meritless litigation that gambles with the stability of the business and puts at risk the customers it serves."

You can thank WINQ for UNIT's problems.

WINDSTREAM's bankruptcy antics are hurting UNIT

UNIT being taken down by WINMQ

UNITs going BANKRUPT?

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=149901235

Great potential after getting over the Windstream hump-meanwhile traders will have fun with UNIT. Buy Buy Buy IMHO

POSITIVE RESULTS COULD PRODUCE 20% JUMP.

Expectations are low in UNITI GROUP and options are pointing to a fall to $10, we are looking for a positive move and buy alerts placed above $13 but also sells below $10, either way volatility is expected and we are biased to the long side. Analysts have a underweight price target of $9.

nice little pop today...still lots of room to the previous highs...

It's all relative...the divvy is a secondary Benny if one caught the bottom

Ya but having to cut the dividend by .55 cents doesnt leave much play. Ahhhh it was a quarterly dividend play, no big whoop, there are others who pay more than this troubled one.

still climbing off that bottom.....

Thanks! Definitely will check it out.

For anyone who was chasing Uniti's healthy dividend before the cut, this competitor can pick up that slack. Same communications related business, comparitive share price, overall healthy company to take a look at.

https://ir.consolidated.com/stock-information/dividends-splits

Thank you very much!

Suggestions??

There are better places to park your bread instead of holding this for 90 days to collect a nickel. Like a monthly divy payer vs quarterly like UNIT

Bad news was expected and factored in.

based on pre market it doesn't look as bad as I thought? Looks like the 9's might hold. Think most of it has already been digested and factored in!

What also is a killer is their creditors don’t trust them with their money anymore. Raising their line of credit by 2% higher wipes a lot of AFFO out.

I anticipate the market to crush UNIT today, but I also think shares below $7 would be good to buy and hold. UNIT will make it out one day.

Reminds me of what happened to Kinder Morgan a little bit. It took KMI 3 years, but now they have less debt and a better overall picture.

Wow pretty sobering! It was pretty much to be expected and factored in at this point. Probably won't be a very good day here?

Uniti Group (NASDAQ:UNIT) declares $0.05/share quarterly dividend, -91.7% decrease from prior dividend of $0.60.
Forward yield 2.0%
Payable April 15; for shareholders of record April 1; ex-div March 29.

Yeah, going long on this one and hoping for the best. Good luck.

Unit was $18.00 a month ago, its been sucking for a while but now with the divy cut, could be a shorts dream

Whoops! Guess tomorrow will suck then....

How do you figure that!? Tonights announcement that they cut their quarterly dividend by .55 cents is NOT good news

WHO called it!?

https://ih.advfn.com/stock-market/NASDAQ/uniti-group-inc-UNIT/stock-news/79516625/uniti-group-inc-declares-0-05-per-share-quarterl

Tomorrow's going to be a pretty good day guys!

If WINMQ cant make their payments UNIT slides in to a world of hurt

Yes, what you say is true, but a divi suspend or cut would likely cause another collapse.

Turnaround in process

The share price has already crashed! It was over $18.00 bucks taken down to $8.34 just last week, if thats not a crash from the WINMQ fallout I dont know what is

Yes, I did see that. Also that the cost of money is going up for them and future dividends may be paid in stock. I just find it very odd that the share price is not collapsing. I guess some folks just don't believe the bad news yet. There should be much more clarity after the conference call tomorrow at 4:15PM unless they delay it again.

Not yet. That does seem odd. I certainly will not throw any money down yet though.

I did not assume you said anything...I am asking you a question...

Where did I say ANY of that ASSUMPTION on your part???

It's all relative ...The 52 week low was $8 bucks. So from that perspective it is up....Are you saying there is no prospects for a turnaround? As for the going concern statement - was that there for how many qtrs or is it new for this 10K? Just curious

No? UNIT was north of $18.00 bucks a month ago

does not seem like there is panic in the air...