CNSL - Earnings call transcript Q3 2017 | Consolidated Communications Holdings, Inc.

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Operator

Good morning, ladies and gentlemen and welcome to the Consolidated Communications Holdings Third Quarter 2017 Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Ms. Lisa Hood, Vice President and Treasurer. Ma’am, you may begin.

Lisa Hood

morning good and you everyone. Thank joining We quarter for third today call. appreciate you earnings our us

and On me Chief events in our and call and the Safe results Today’s Executive our the filings. Harbor discussion risks with remarks, call A SEC Officer and website. Udell, prepared our Please and Chief up subject financial President forward-looking provisions which that are is with about factors future for Steve includes of our review SEC, will results and expected future in in to available Childers, we Financial that questions. Consolidated’s After today Officer. uncertainties. discussion open are the affect Bob on are release the statements press may filings contained

certain discussion non-GAAP measures. today’s addition, will financial In include

I earnings consolidated.com. measures Our website their equivalents. our the has of on over these reconciliations that, posted turn release section GAAP to Investor of Relations to Bob been will It nearest the Udell. include call does at With

Bob Udell

everyone to our Good dividend of our want Consolidated I a joining third you, announcing Communications This Lisa. shareholders. to dividend value for you the investors. predictable call. and begin quarterly payment Board consecutive our thank has quarter XXth by our commitment declared to our demonstrates to return Thank as morning,

improvement course, One dividend of the financial coverage benefits combination with in our an of was, of the FairPoint business ratio.

the payout and focused of third been July With was activities. our start we on companies acquisition Since in fast initiatives quarter, on X, the operations on our we FairPoint of the included combined XX.X%. ratio integration closed have

initiatives, million X target key years of of is course, One our $XX to within synergies closing. of of achieve the

cumulative to as quarter, synergies, end good run-rate a the in which over recognized of We third the $XX right is plan. and million off on are we have of start

we integration on with and customer with disciplined projects in have have past impact. synergy acquisitions, we As based prioritized done a the approach to

well that XX of ERP speeds resourced transition increase at projects as the into high-value projects, which as and and a pain have common availability platform will points. reporting end financial We identified customer include reduce broadband year

are addition, our within In facilitating the projects employees expanded collaboration among these teams.

to are build carrier, around consumer customer of and commercial XC our our strategy committed groups. We playbook, leveraging

reduction For have service wait the call already center we time consumer, of seen from reconnects a order streamline install. reducing in are seasonal to times, the process in and

We three the fast-paced the a identified for the New sales schedule product markets have commercial quarters. in and next leadership Northern development England have

track of As I in the record we have said Consolidated and will equally be successful am FairPoint. confident integrations the our integration a proven team with has past, of successful

early weather the As in customers’ these Texas experienced and during only many Due during experienced Florida significant in and of with Houston Hurricane area network August service employees, resiliency are Irma aware, minor storms. Hurricane impacting at quarter of our the events Florida Harvey of end disruptions you the to and the September. our

rapidly and team’s for sites. water, loads backup emergency our them we affected post-storm their this our recovery. our take of and their my sincere on employees support I the access safely in of thanks team want opportunity skilled to work commend pass preparing for storms to to and affected the outstanding. took our response on advanced to soon management, preparation technicians able were as as the including deploy wrecks, Through network sites, could prefab Our was and which software

Now, let quarter results. turn to third me the

by to with being declining is in combined a private are X.X% This turn revenues of services. Texas, channel, utilized legacy offset FairPoint in services for commercial growth to X.X%. Ethernet network was Consolidated XX.X%. site the partially of our includes gigabit for revenues capacity Year-over-year, XX which X.X% growth takes a Ethernet voice up This telemedicine. which service up Ethernet combined medical be course growth providing solution network the for revenues the First, service markets, for with is and

our opening share sales on wallet expanding customers existing selling. focus and to more teams through doors continue Our of solutions of based prospects

addition, customers, a of as solve cloud helping way problems. In our target business are services real our we leveraging

result, cloud seeing are consistent As growth disaster we and secured managed services, a and voice, as recovery such Ethernet-enabled in solutions. WiFi Cloud

our we associated to to Turning carrier during contracts. experienced some solid and results sales quarter see activity power channel, continue the with

activity XX, quarter, sold with as dialog continues on bandwidth our towers to small another During X,XXX. new fiber we connected and cell bringing consider and carriers upgraded they RFP the and towers total dark solutions. XX active

on our quarters, consumer fiber customers compression contract sales experience speeds continue channel renewals overall improves we retention. prior increased to customer stronger services While from increases to to and bandwidth revenue increasing higher than due price competition other and are in Within providers. taking

Consolidated, or FairPoint In can or contrast near-term get for more. have legacy above XXX former higher plans X% homes XX% XX mentioned can only the For can get XX% subscribe to of meg XXX and broadband-capable meg. of that get higher a to we geographies. XX broadband-capable homes I can several XX% and meg or projects meg only FairPoint,

plan of into England. speed extend is a CCI New those to the Northern One efforts plan availability growth

continue unified go-to-market portal business makes technologies in-home we implementing with total our product we greater We use on in and to quality complement our over-the-top and third percentage. to the strategy over In On offerings speeds availability September, partnerships announced provide the broadband in will revenue portfolio video believe the strategy XX% increase Increasing priority. that services is for approximately in broadband by launch the and of of our key to to and are grow this video exceptional offerings. broadband. grow basis, from is our offering to average the last. experience value-added be legacy HBO we also easier over-the-top NOW. speed additional the And as for not combined network markets are an a to afforded similar services certainly speed access such the redefining Faster video to what a and customers. We consumer This FairPoint connection CCI is our broadband legacy customers. the the over-the-top areas layering

high we targeted infrastructure. you broadband increase was we of And our being proven is investments, financial percentage have XX%, FairPoint are the bandwidth as as of associated this continue this historical form have reduced that and remind financial with deliver fiber we business expect we which in and expect to network percentage percentage acquisitions. pre-FairPoint to the and something will I that over as leverage increase past in realized. services We benefits The cost savings acquisition

combined speeds initiatives integration We will continue strategic to to us broadband across to footprint. and our on of our expand execution allow availability focus and

to will over financial review. the Steve? turn Steve for call the I Now,

Steve Childers

after results a Thanks million morning morning for quarter quarter include down with revenue ILEC. million of due of FairPoint. compared XX% million $X with moving associated year. revenues results I of the In everyone. higher broadband divestitures million third excluding the service to the of forma business financial Bob. customers to down bandwidth of of Consumer Iowa. services. ago same Iowa to sale pro equipment or last of with results, $XX.X were that higher consumer down from Operating $XXX XXXX $X.X $XX.X which the compared and Voice million $X.X quarter $XXX.X the revenues to services sales million Good were This adjusted was the our will after full the for IT revenue for million, FairPoint adjusting and year the coming ARPU a with XX% quarter increased operational review associated aggregate,

consolidating quarter, on million, low-margin In However, transport a revenue carrier data video voice churn the increases revenue flat. million. managed side to as over-the-top being million. our and strategy. $X.X on and while commercial services in stayed are consumer services, decreased digital video broadband Other million partially down increased commercial $XXX.X primarily by $X.X $X.X we focus were offset Again, revenue broadband

of partially associated expenses, revenue Iowa were to CAF remained compensation to post-retirement quarter and center XXXX. depreciation, access early $X of by business who adjusted impacted are one-time savings compression, quarter benefits in of facility last by carrier million. of These with Our exit left intercarrier a a the of Texas. the Network to savings the million for the decline with remaining by rates of the same is ILEC, $XX.X divestitures Operating Iowa rates. million commercial again due approximately XXXX continues the synergies were and reductions third switched and $XX.X compared salary due deal associated Subsidies after cost employees, year-over-year lease Subsidies $X million revenues funding realization million year, down to exclusive $XXX.X offset while well approximately business impacted on access $XXX,XXX and of for associated channel with in down were reductions of remains $XXX.X termination adjusting million associated with pension price decline amortization, II as the the flat. to the million. fees quarter of ILEC $X.X sale since step data in EIS third the by access the to as

in a XXXX, $XX.X for $XXX,XXX elimination of in New post-employment employees on liability health the We change non-cash and third FairPoint also little million incurred the Other expense increased storm year-over-year. the $XX.X recovery million with benefit pension hurricanes. expenses over post-retirement quarter associated In for recognized XXXX. the the conjunction in Northern due employees. of This to OPEB Union the active England the with plan occurred contract benefits change during for of the renegotiation Union

had reduced million FairPoint fully by interest was over that of for $XX.X non-cash the result by quarter benefit the million the of a quarter third OPEB expense income amortized of in compared XXXX. As to the million $XXX and the contract, and liabilities XXXX. Net end new $XX.X

the financial successful their refinancing As FairPoint benefits did acquisition was a the we December. to last of one debt reminder, of that the

the for finance has third the to attractive was which million our per income $X.X million to of cost per an certain and with and third share estimate our We by from quarter $X.X and these offset being the for were ILEC Weighing all amortization. the high of associated $X.XX compares rates compared to revenue. certain been year quarters. as very savings. under the in income, wireless period on net partnerships terms well items net third EIS was depreciation and purchase term Net quarter by factors of existing adjusting income XXXX. depreciation intangibles being services $X.XX share been and in at earnings Cash of in related $X.X ago. these is and impacted in approximately Adjusted significant increased and the adjusted and release, million income by third $XXX,XXX revalued. business in quarter million in same basis Other and voice as loss loan have assets The distributions table quarter has XXXX $XXX.X outlined impacted the after-tax on as XXXX. able FairPoint amortization are and adjusted $X.X this per Iowa per a compared decline in to for year-over-year which We is deal million and are press share $XXX.X to cash was as our partially both was the due million EBITDA broadband share divestitures facility zero, resulted annual a the the changes margin net

are capital million in In previously and of the with realization. revenue into expenses we back we the As discussed, offsetting business. $XX.X revenue synergy or quarter, XX% pressure the lower invested

We target with deployments. opportunities on a continue focus fiber to success-based

have approximately $XX liquidity in standpoint, entered hand million thresholds. quarter on cash our investments and a and paybacks available meet capital Our internal with the under From to our million return revolver. $XX.X we

was ratio net X.XXx. on For quarter, pro a the basis leverage forma third total our

Additionally in effects payout be the first synergies, financing XX.X% available pro gives anticipate cash was of of the yield to a in X of significantly benefit improves this our realized terms giving operating within be the will of X.XXx. net we resulting synergies $XX of forma dividend the dividends us would for closing, years our approximately Cash access dividend the improve FairPoint’s as already flow, $XX.X tax million and The ratio transaction targeted under million leverage quarter. net to FairPoint acquisition coverage strong losses. significantly that

X, January shareholders our to XXXX XXth the the reaffirming of per full dividend of approximately record Bob January earnings Board declared which as on I Today, consecutive the payable remarks. now With turn transaction Please in call for table include our quarter, will if year $X.XX as we are second XX. share updated to XXXX on are February reference over closing back that, Directors common of guidance. has the on FairPoint, guidance X we and for closing Our the release for our XXXX. quarterly

Bob Udell

even with Thank am more we provides and excited our fiber ability summary, the confident been capital our integrate in you, footprint. FairPoint for and are and transaction expands I our flexibility surprises strengthens business operations. Steve. increased associated execute to significantly combination, to In no strategy cash There about effectively which have the on flows, our the

value delivering more we are to Thank through shareholders to for committed call building even and time an dividend stronger and the are focused We our our to longstanding taking today. join business. our on you competitive

will We take now questions. Operator?

Operator

Thank Cowen & the first from question of Company. Charbonneau line you. comes Our [Operator Instructions] with Jon

line Your is open.

Jon Charbonneau

I for and appreciate that you business couple should over taking guidance I are growth carrier not the your year-over-year. questions. within it quarters? FairPoint? we commercial for goal recommend be with now Thanks your the thinking you Thank speaking, X% believed about that to you. broadly How or do we but providing grow Great. Previously think the XXXX, segment how about business roughly And was next

Bob Udell

Yes, morning, good Jon.

we that out what are on due wars. price compression experiencing price If to the the front, squeeze we some doing are you at carrier unlimited trading price really on is look the

the some and players the bandwidth of midst out for site price are trading wireless growth. we think more longer per in are I terms

you those it that at when still next that looking we So, grow but contracts. we to re-write going in line, have of the temporary for based I revenue look that it’s contracts provide some opportunities and to work be are us to sites on think still more through of aggregate, still the quarters few for the

the And of spreading and are can commercial we space customers front. the that equity-backed have competing price bit of a a the a and based going match aggressively on are players view that space enterprise into to some that the that’s multiple flip building that private on entered business,

to we are long-haul footprint. when that our the for but So, expand business, compete careful being this continuing fiber are we in we for we are and

by we do to So, have a get price of footprint. can growing competitive we great on more our where offsetting job areas we think those

us going the and to be here we that but in will a growth think we guidance. it’s hoped had X% a year, tempered for. bit, next going So, give be not It’s the we to more have quarter

Steve Childers

pile you this is can just Jon, with on, Hey, maybe Steve. results. I If third quarter help

think for versus the commercial FairPoint at just think – – XX% quarter you and overall were the the if we over the number As million look $X.X down you FairPoint, about carrier Consolidated site. quarter, came of for about the that the down from

are other and are transport about we increase a Consolidated in FairPoint we would where we negative legacy on and site, in the just have on bit the On shown and X.X% a data transport up voice. data little in side, and down

hitting wanted on So, are as and quite think that I in growth holding and numbers I Bob side. but we is we tremendous legacy the there Consolidated we in on not have opportunity think said, commercial the carrier, FairPoint

Jon Charbonneau

you. Great. Thank

Operator

next is Goldman line question And from our Scott the with Jefferies. of

open. is line Your

Scott Goldman

guess taking questions. morning. for I couple questions. thanks Hi, the Good a of

could you markets us for about? Steve, the if we on you of up, you CPE in be wanted other those the that? to update in to priority you you with share or connectivity was the On something to there know revenue project think Bob, the increasing And markets Wondering XX% front? for and on increased should that today, speeds Bob, those one that did then FairPoint on maybe Northeast carrier and consumer sort buildings? just just XX Thanks. And you get progress housekeeping only fiber where side, connectivity, drives in to Is what mentioned being or go quickly did carrier, are thinking two-parter XXX of meg, X% then meg. just the can and commercial in I commercial do the maybe think you speeds fiber a how think the need little of you secondly that terms the have that where us leverage else

Steve Childers

gather Scott, I his the the with question for will start other last can multi-parters Yes. Bob there. thoughts and

for maybe base. different on about that some little that’s revenue areas data companies and business transport bit plus all make-ready recurring a that combination and have other building So, of number, the hearing both so CPE a contracts, about of

number other on to so of around of a little bit, of The going are one-time but make-ready bit a exactly XX% you right, that’s the FairPoint side. equipment, bit a that is bounce probably if it’s was and projects primarily little little

Bob Udell

Yes.

that the FairPoint customers are XXX had Regarding we have in and at areas in in starting CCI, look higher days the XX% the meg markets operating to the over area into meg FairPoint and if really copper the this have consumer, plus higher deal or we increase using the legacy are you promote XX just already and – available. VDSLX a XX quarter-over-quarter type technology

and can, in possible. we is XXX getting meg focus to running as is as fast Our as places

still the plans some of are a are it’s to XXX accomplish of be speeds out in based cases quarter-over-quarter getting investment product, some building XX going first where Capital product then and the meg available to increase but XX an to We meg. QuickStart eventually progressive that, meg on

so, number have markets initially, exploited and product the old marketed. been we gig where some grow, FairPoint a continue the but to will upside in or passing see And you that – hasn’t files

an even good XX getting there have customers. stage before and speeds, now so there the implementation that those at really X machine promos. is block centers of the upgrade and X building is and meg So right the many ready opportunity call still about potential, feel for of There provisioning

places you especially as that can So, will we it’s process upgrade still XX XXXX to beyond. but cards, VDSLX+ early, through us speeds and see and some the where expansions get deploy promotional meg we facilities, additional fiber in even as haven’t the higher, started well

miss commercial the again me your give I front, On so question, don’t it.

Scott Goldman

the activity see you take past market, Northeast place just three, quarters? fiber in leveraging FairPoint wondering had wanting the about some of or how out how fiber mentioned that next that connectivity, can rolling the quickly you the of that I four Yes. increase in know, to

Bob Udell

bit Well, I and move carrier the transactions. commercial marketing we the FairPoint consumer be faster to than will on the and a little ease those the think of able of the need because front

initiated pricing reset Consolidated picking uncompetitive On and was activity the and in we way momentum. the that’s The actually around consistent have that some markets product the FairPoint some front, have Metro Ethernet. with it commercial up the markets we

actually of plan terms with past, overlays buildings opportunity. past, of buildings In and fast-start that’s the with the consumer building part

had have make on to that dent order So, fiber that those yet I the meaningful that’s already lit are commercial started, the getting exists a required just probably but buildings of opportunity we footprint in not market impact say can’t a on the there. past, because that exist additional with

So stay tuned, will with we opportunity market are there hurdle there pass enough but the network more organized we buildings, to existing continue to attack. is that getting

Scott Goldman

both. you Thank

Operator

comes the Michael Investments. Rollins Our from next question Citi line with of

open. line Your is

Bob Udell

Good morning, Michael.

Michael Rollins

Sorry. pro you could was markets? your improve in if bit investment about footprint competition a how Consolidated morning. opportunities, broadband Thanks. of the with forma in do see And you with the the acquired to I Good talk if about capabilities has newly competitors talk wondering now could terms the you across cable much to FairPoint, broadband respect the footprint?

Bob Udell

so in on is are video we being the continue our moving the in dissimilar FairPoint competition, a consumer them some real Consolidated with legacy of more cable in in The some very capability portal. than our than the And them market with Consolidated combined up no strategy percentage of pipe have similar rest if footprint focus that an while to broadband speeds XX-year really leading areas based we a probably the have MetroCast, to our looks of would they markets. the of unified one little Northern history business. of to England competing I product on say through involved to and the on playbook good in Comcast, And And fact, similar. there drawing Charter, markets, front it’s and And small not is cable product we markets. that various and a at I too historical used unique have guess competitors players New Vermont, thing with the are people over-the-top in have

are gives biggest building for us That’s first the the our we step. the buck a investment, fast-start look XXX of segment. get the that now terms mode as areas can overlays the capital a bank when first passings the with we with meg extending at VDSLX+ we fiber In right prioritized, that in where

doing We node are coverage. fill-in a residential for

the passings business, the We are at time. also picking same up

the in we expansion a project, So, other it’s on starts we both the multi-layered the pre-sales opportunities for it’s then that consumer any the the progress. commercial with build-out with approach have teams and then like and sales front done [indiscernible] a and fiber of as quota assignment

is quarter. going fourth be capital to there So in some

projects If appreciably as to you are we at on look more quarter our based equipment spend you’ll guidance on fourth our possible. to get guidance, in see the capital make going we these

New got seasonality some of make fiber placements in have more little We the of bit a challenging. that the weather England will Northern

in make the quarter, third that running. get So to through the there second but will place pickup get the the and winter again to going in sure electronics we we are ground can

Michael Rollins

Thanks much. very

Operator

question next Barry And Hamilton. comes our of from Sine with Drexel the you. line Thank

line Your open. is

Barry Sine

gentlemen. Hey, good morning

First the brand? have now, England the related of you they then you in for and while? is FairPoint is seeing be in investing this happy growth? and talk pretty are have a now asset this what and consumer the could a about quarter coming And on now you a and one that that to New perception that you asset you Northern got perhaps employee perception hand the have in basis, that the market are owned known What been over on for driving all, seeing there somebody

Steve Childers

Barry. Thanks, Yes.

is works, a came years delivery but from history of XX of with service some the the still Verizon is they were embraced with is stigma bad the first bad and the build-out, speed of it The good times good, network. the the how fiber there. focus, a perception. customer challenged The Let the really the work, machine for a brand new through FairPoint the later me I regulators us closing or of transition think demonstrative systems anxious and start robust

And we customer some got perception have upside. so

I have to an that have the escalations. gotten escalations what trend We to in keep track of is talked weekly line group

improved have we week a areas upside weather We storms two, The win or hearts that’s we that back will England New a on minds. an set delivery Northern historically any the for some give dates in feel week natural last in to I at but have the us about encountered already. customers’ installs in opportunity I and example, with event. had least And really challenge have good will area in you allows would seasonal disconnects necessarily quickly would just legacy FairPoint and reconnect option suspend temporary on that and disconnect already and reconnects and improving customers self-serve suspend market them. to have have we a They to and then centers. customers call seasonal you altogether rushed and times workflow the And lose wait come than the and to temporary is service, would in rather that wouldn’t disconnect back. that we

a and spread we little to of of anticipation media social going the identify pursue discreetly change we that through build So points mouth that hopefully things as in will first quarter. word customer like pain we are grassroots, customer and that, brand

through town halls. the including I front, cautious concern got efficiency but were They messages, operator the a partner, process, brings the strategic we for same their the optimism. and change an base is but On opportunities in there being of we and employee are have and so new medias, the recorded through employee excited different that’s think prospects about

enrollment one decisions decisions and seen communication our for And thing their in are is that’s before. ever have positive on feedback very and seeing ideas so those of more they the the than they context

terms there the And company changes they so Consolidated’s don’t when very run the say that through now, well X,XXX employees that of go participation. or be with is a to wave positive, is that’s history But to a management, in very there be and will and liking. my situation case line those like would that going responsiveness have bargain for always you I positive to X and as but is the employees as X,XXX the continued expectations trend their been X always has employees that exceed isn’t to of that relationships in

Barry Sine

And carriers, tower of into the rural seem for the example, at then look is if to I opportunity, T-Mobile broadcast it going spectrum announcements some would on their building by markets. out and me the

one your positioned some but then was other Northern would of in of pretty and AT&T it tower the the for next some opportunity net business of Maine England, areas that or What’s not just talking optimism ones these fiber first are seem your to doing for about. think over portfolio sense well opportunities carriers build, the of your I two? the your New me is rural and year first

Steve Childers

Yes.

conservative want business. but in right there We space are excitement, lot that very tell our will of I now you we that in activity a is and that

to network. is me smaller Tier we markets in to year Tier good what than opportunity, to very tower volume is of are be something it our seen more going footprint and And so next we the X commercial – X, have benefits XXXX in because X, last year That’s we it. of those There at. is going I the out activity appears pursuing activity aggressively up are build we next couple towns we have months and would end more to that expand owning into when and that brings Tier say

So I am but optimistic, optimistic. am I cautiously

Barry Sine

question, you dividend any give the And going visibility partnership forward? gears, flow then us last Verizon on shifting can

Steve Childers

and Steve. back, dropped million last is we again, if history Pittsburgh had some million know LTE market markets for were programs CapEx we, $XX the this Verizon rural based the some kind Super for X consistently like you the Barry, that $XX year think I Hey, the of Bowl Houston down And had about upgrades. I years, on think X, you in of in in look one

are had P&Ls their quarter So year and CapEx this put one we like overhang the CapEx beginning coming spend, you little bit because actually remember of with a we have into that together. year, this of behind

we – year last the in to of the are this So, compared year. half first half this up of will be

going and $XX they it’s to of that expecting. on $XX I we of if little it some hoping to sort see bit, be some as had unbundled range. the what expecting million, year through but are get are stabilization have million they think will we see are to million on $XX I be think cash investments we in competition $XX this the flow, to maybe bar and low of make down but we sort a million still Maybe

Barry Sine

Okay. very Thank much, gentlemen. you

Operator

Frank from And Raymond our next question is with James. Louthan

Your line is open.

Bob Udell

morning. Good

Frank Louthan

of little I FairPoint talk am but sorry of apologize You the I to there of what call, getting? part missed I if upgrading you business a this. at bit beginning have probably and products I of us sort the more of led and are strategy consumer then about traction covered traction the to and a getting as a the you the how legacy are of first kind going talk that the far that is types sort us strategy subscribers the and are your markets you getting as market with in in data today?

Bob Udell

Yes. did on comment me And Frank, that. it we way. approach this let

the field we marketing and into and can and the service days demand. meter, are services XXX call the centers so deal we the focused that issues, are folks initially technicians, when the tackling out We the really turn on blocking handle

been on haven’t And so real yet. we promotions aggressive

for XXX,XXX or on today that we passings is in work marketed There the capability XX footprint files and are availability a build in been has product step the get to. there. a the haven’t meg areas XX the plus gig continue out minus continuing and to higher aggressively The FairPoint been that first can expanding of meg

XX backbone and ample accelerate from for that, So, XXX to. XX And as market aggressively there addition are well for we in there the bringing exploiting our meg, to is of exists fiber strategy to as VDSL the nodes meg that’s meg, respectively. to filling availability that copper us footprint

to will that of in advance field-ups the with it’s quarter, occur launch. we first timed brand like there in capacity So, but the re-branding is going to be that as the feel prior

quarter in We up are in to we to right we continue marketing, targeted early did flexibility with mention guidance very in expand our step going afford I marketing will now. to a CapEx the the but see we And as specific do fourth stages branching. our consistent are really some

Frank Louthan

re-branding properties, Charter bit seen bulk have of in that what the the you the – your and of And properties, gotten the legacy territories, us of properties looking to couple update to the you in passed copper, And at the FairPoint other you. you slowed they respectively? the thank then kind think of a from Okay, that’s give extent down percentage and or couple impact what are can fact groups? through the locations other by and a an fiber of all a being coaxial

Bob Udell

Let that first. start part of second the me with

my notes X%, the – the X% If range. it’s FairPoint fiber looking you passings the copper are at look here, for market, predominantly in so and

in XX availability XXX over meg HFC opportunity with FairPoint product the And takes with footprint fairly fill in we quickly, to and advance an XX% that pro hybrid see has of to HFC and and remembering afford copper, so it our in XX% to copper. from legacy fiber fiber in of are and forma continue meg, a we XX% footprint positioning XX% that aggregate, down copper the Consolidated, fiber lengths fiber XX roughly meg copper. ourselves but loop nodes, mix. in And expect that our shorten starting meg fibers same coax XXX XX% that and and network broken We and that

Frank Louthan

impact? re-branding the on And Okay.

Bob Udell

Yes.

re-branding, the As pulling far until not are quarter. trigger as first we that really

as do so brand FairPoint it’s consolidated of we a quarter. slower really a then in the cut flash evolution And will first company of operating a and

Frank Louthan

Okay, great. you. Thank

Operator

Fargo. And of line our from with next question comes Jennifer the Fritzsche Wells

line is Your open.

Jennifer Fritzsche

happened question the silly secondly, at you picture to that, I I kind to of behavior? And promotional had what in of that? two more. seeing will behavior guess markets do just you FairPoint? bigger the of are seems I protecting kind it that we we If are on picture for I more of have one then Mike they the will could top might beginning see Thank that you and you aggressive bigger and had in know parts. respond cable, Frank’s like broadband Consolidated get One, like Great. taking to then kind to Are the which or of cause to in either competitive And question, market. question incorporates I call if to what’s might call respond but losses to recently, that that’s many the anything, that that need question. like video look that, cable terms a what just in at base sword silly that tipping Frank’s of feel I

Bob Udell

Okay. now, understand And about re-branding. the asking charter I think I to bridging was back Frank’s question he whether

you If look we spikes City with little pullback. across through our have is then good example Google’s entry seen Kansas cable footprint, or rational and history, a behavior

our can that of by-market basis. on the prepared are for with playbook on we basis but market are adjustable so that that, compete diversity same, because with really go a to The the easily well a condition. portfolio, the specific is market-by-market levers we compete specific And

aggressive We where better. because don’t to in aggressively even New had a meg haven’t positioning, to very offer having England, or quite where XX marketed seen we I think Northern compared – not frankly, FairPoint’s be they aggressive they can behavior

as in of effectively. video we WiFi have the process test and this of the do new so we of and resources effectively And technicians, where dedicated the we continue which and in-home is quality our product mapping a deployed sets, educating the to I terms can were So, we can their we just we that our reps effective are last the competitive that that strength. and our service the competitors techs delivery have cable going watch think standard quarter investments make continue compete become and offer hands England and those in with and be The starting check sure voice service Northern closely, competitive prioritizes getting that’s to think New bandwidth to make, we to past, product process. on that positioning a signal we they are this in of and positioning I in

well I we positioned. So think are

rational closely We FairPoint and but behavior in will of we any watch seen that the for haven’t markets, specific appropriately. respond

Jennifer Fritzsche

is Got think it. that really each CapEx might free fiber for this aggressively I speculation know for have But have, any will I in that, pickup the And of boards affect we of what type effort. don’t is on those more on you you I – flow follow-up and one, the Of is pretty cash X dividends dividend? there therefore JVs regions any indication XXXX that if own spending their one realized bring. Verizon there could Verizon,

Steve Childers

don’t question, bit as we XXXX. a get you Jennifer, is say, that’s for Steve, quite a right, a this have we right it’s ball now that’s crystal a and question so

partners they to advertised that plans We each with about those the right in and markets. are spends we our now particularly markets White, what particular does to are them metro, spend do metro PA. big the X ongoing on those related Houston those boards, CTO have Tom areas. limited dialog insight one on X the CapEx includes in related And of JVs, as area Texas, X those are, XG and their the and in Pittsburgh for we so some partnership not sit have well it again in as in

Jennifer Fritzsche

Got it. Great, thank you.

Operator

I showing Thank you. turn further not questions. Udell the over And I to closing for back call am any will Bob remarks.

Bob Udell

presents that a expected is great of you the had and hoped We thank FairPoint asset We hope you the for third the want day. call us will us quarter’s and and the that join next we to be. joining The you as have to for quarter. for opportunities acquisition thank progressing for and are our for everything and expected integration us questions

Operator

Ladies may Everyone have great now and gentlemen, program day. this does disconnect. a you and conclude the

Consolidated Communications (CNSL) 5 Nov 172017 Q3 Earnings call transcript