UNIT - Earnings call transcript Q3 2017

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Operator

Welcome to Uniti Group Third Quarter 2017 Conference Call. My name is Norma, and I'll be your operator for today. A webcast of this call will be available on the company's website, www.uniti.com, beginning November 3, 2017, and will remain available for 14 days. [Operator Instructions]. The company would like to remind you that today's remarks include forward-looking statements, and actual results could differ materially from those projected in these statements. cause filings to with could in are that company's the the factors actual differ results discussed The SEC. accounting accordance Discussions certain during generally in financial include accepted with measures that the were not call principles. also prepared Reconciliation of measures most current found comparable direct report be -- on financial can dated the to today. measures the GAAP in non-GAAP those measures financial company's Form X-K Group's turn Chief like I to the call to would Officer, Executive Uniti Kenny Gunderman. now over sir. ahead, Please go

Kenneth Gunderman

joining. Good and afternoon, you for everyone, thank

take dark business see for needs is by accelerate demand assets our with and is operating cycle. services to to of our advantage infrastructure good continue efforts We We We macro to market towers densification of [indiscernible] across of excellent strategy of fiber, our investment services cells, developing another the all and communications products over current for units. expected depending upon of delivered strong performance multi-year momentum a lit requirements. network believe us customers' the small complete quarter positions excellent carriers well of wireless and portfolio

Uniti to Turning Fiber.

of the largest platforms quarter, We During services. cells, fiber-to-the-macro have acquisitions enterprise and Telecom. one fiber, We're fiber services closed of pure-play very the E-Rate third excited our to in have now the and deploy small Light operating to Southern we country. ability Hunt now the tower, dark

carrier trends remain for X XG competition attractive for less these business highly services markets, insatiable us, positive All the are among very densification of still needs demand there's lines secular foreseeable for but where of and our network operate and future. customers. growing the X Tier in high-bandwidth We and

M&A. wireless as operating schools. carriers, of from sales for and future second quarter data our Uniti and pace carriers quarter. from and XX% XX% national trend upgrades similar upgrades at business XX% the through platform of third bandwidth from the local the driven outstanding being wireless by provides an came fiber to continue sales XX the Fiber's Bandwidth bookings are addition, unlimited during a bookings In X other carriers. plans enterprise the our K accretive

were boosted fiber dark and bookings by small wireless backhaul quarter Third cells orders.

signed have cell for the small in either carriers our billing and of X,XXX national X with services over cells X now have We nodes contracted agreements master small or backlog.

over quarter usage and Our cells. of customers is data network the high-count Uniti and rates where wireless growth events fiber several wireless passes onetime for locations posted network and colleges excellent driving still solid small the material XXX some Fiber during millennials' our highest results. of universities wireless are had

to addition a that team more In closing to we accelerate installed reduction a leadership in effected the size X efforts. than business, the sizable force new acquisitions our synergy the doubled of and

Hurricane one wireless which, Irma, made conscious In tropical joint addition, forecasted several Florida. destruction and for towards bring decision hurricanes our storms, our of planning devastating customers. redeploy faced was preparation and activation away storm, hurricane from to we a personnel revenue to preparation with to our In team the

the response integration. compliments for relatively planning from not cause did our of Although very significant with favorable preparation some duration direct many associated storms markets. was worst, modest any network outages. to that but On greater the the that of costs, even quick these costs prepared proud team's efforts we in and our minimized and the There were network received for fortunate damage. customers restoration opportunity we were of number We our small I and the were preparation

an update will we investments with forecasted. was additional we is work previously provide next some of but earnings modest that schedule, continue connection Our call. what to off-net expect are drive currently We're opportunities. identify ahead in ability and with to reduce ongoing, we new focused synergies the This capital meaningful efforts on above our hope to costs

On the cell to extended small that stakeholders various time regulatory adversely address continues the with front, to for work permitting to actively impact continue we the industry.

well We Wireline of and and met as Telecommunications FCC the practices Competition with authority, as have to regulatory FCC include with on barriers which deployment potentially the Bureau. of proceedings Bureau FCC's use staff the recently at other commissioners' in the offices Wireless all several We're may measures. X working branching reducing of broadband, best aimed the

to on alleviate industry other deployments. The delays We July processes and associations for the state regulatory in with facing that help small of legislation may federal that believe we aim various state of that Florida such have many eventually a worked have promoted permitting bill we're streamline and that cell permitting state. passed local

abatements within small However, moratoria or new law. local pending jurisdictions ordinances processing with cell on the the Florida have development state of implemented consistent the of applications many

amount might ours of of We development ordinances and for limit its impediments they the have local with worked XX, and requirements of establishing localities these simultaneously abatement collaboratively seek the had on place. that like impose many technical reduce the and small moratoria previously place. October to try registration permitting an Florida on their such and companies time cells that these are in in and ordinance lifted released financial to to to that been On deployments in Tampa related

with in similar matters. other to Florida work numerous -- jurisdictions with and other elsewhere on We continue

Towers. to Turning

excellent or on portfolio, see tower to lease see in executed in we and network lease-up quarters. lease-up the of our XX% We've to approximately continue our more orders Mexico. XX expect We for rate coming orders activity co-locations

in believe continue is recent market. especially communications Mexico We in mission-critical to increasingly infrastructure launch important AT&T's with that

to positioned well are benefit. We

see to cells as in small towers macro We a XG world. integrated fiber, to and as our particularly all also infrastructure of portfolio, converge part having towers continue benefits

the tower and component growth segment years. a future strong Towers Uniti our momentum in have in be diversification and We will expect revenue of

M&A to Turning our pipeline.

on Our organic top diversification capital. track M&A remains remaining and our deploy priority growth through opportunities strategy with to

normal cautious During on the executing more new in quarter, given our than were the M&A. securities, extreme volatility we

high, engaged. However, are levels corporate remain development activity and actively counterparties

businesses our fiber pipeline us our cause multiples transactions relatively so X adjacent and on and sale-leaseback markets remains assets. the proprietary, call. last for cautious Valuation from As our Tier network quarter. XX% Tier focused unchanged not are did remain lose approach in X on a fiber We to assets opportunities during any both over reminder,

disciplined our You to be transactions underwriting should in and of capital our us practices. both with past expect structure consistent of deployed

the of continues highly XX% goal to Our which we be achieving. to revenue over diversification remain achieve XX next confident months,

with Before few I turn we about respond will Mark, be Windstream. let questions litigation it and a U.S. to able me to make Bank. current not comments regarding Aurelius Windstream's Unfortunately, to over

their and litigation, have X, XXXX, November we which scheduled I counsel well-respected has we continue anticipate and know, will additional are for the Windstream with involved master comply so. and remind a publicly the will [indiscernible] time earnings spin-off not you in law call firms litigation to to As Windstream as party initial outcome, competent do expect stated everyone the favorable they they Windstream to very at appropriate. I advisers to would ultimately intent that as have that lease a and Windstream address have they're

very I protect interest. over necessary Mark. We closely call to turn are that, will if to prepared act and to the our With shareholders' are following events

Mark Wallace

had solid AFFO tax diluted million our common to for shares million. Consolidated reported agreements income reported likelihood $X.XX Southern NOL for includes result for attributable Thanks, for principally third adjusted of $XX.X from Light Kenny, with prior richer utilization, Sequentially, transaction-related the tax that EBITDA of E-Rate sufficiently for everyone. were increased the quarter Net quarter $X.X Light margins contingent and in be income margins per established an effect a Fiber mix expectations. adjusted fair We AFFO as revenues principally million common the of The were Net in any $XXX.X the the was customers. good a $XXX.X EBITDA afternoon, a revenues are million reduced. on XX.X% release the valuation consolidated or enterprise, as Neither Uniti wholesale of improved from share. allowance valuation million. of cost previously and EBITDA acquiring non-cash purposes, after of line change for allowance the today quarter million. with and quarter, tax million Southern income and that these with the Hunt quarter consideration and results allowance. $XX.X was in both $X.X $X XX.X% of valuation the resulted of deferred quarter to excluded. deferred in acquisition the of for GAAP change value items of adjusted

the customer expected for As be that development EBITDA mix at over vastly of third quarter year now to the total completed We backlog revenues these and cell be Uniti has over over Southern Hunt our was result network XX to million on XXX nearly Uniti in development the Southeast believe future select this revenues. sales Uniti or reported of of small was contract a Fiber at X X.X% balance and products, capabilities, fiber particularly the total that efforts. during are maximize next markets activated million potential break-even you $XX completed of for now dark including year-to-date or our X in in towards Fiber Towers towers with and Notably, focused allows will is $X.X our the this combined XXXX. dark million quarter, component as for to our XX% recall, an adjusted early improve Fiber billion CapEx towers. $X.X of including a is backlog success-based us acquisitions NMS years. and revenues quarter Net Towers the should has Light and on builds. of of revenues and XX% Maintenance CapEx the Uniti Uniti to develop our of been over lease-up assets. $XXX million acquisition quarter, of bringing at and quarter deployed this strategy contract, team the $X.X million integration of near $XX important under fiber deployments. the The completed completions towers. Uniti Fiber closed third

over Latin EBITDA for adjusted positive We were than has expect unit a segment quarter of and great $XXX.X Towers EBITDA adjusted this quarter. America $XXX.X to employees, million with in Uniti growth of Leasing XX year million this an revenues third X.Xx in now ratio ago. fourth X for the year, tenancy Uniti since going forward. turn prospects of less basis an we milestone started the Towers Uniti business on important

benefited benefited improvements On our of segment Leasing spinoff, we a have nearly since completed $XX Windstream Windstream. by by tenant from basis to our this million cumulative Our improvements made of our million network $XXX with capital from capital. quarter

capital to markets. now our Turning

secured our remains $XXX credit revolving X.Xx. million million facility. At ratio quarter-end, adjusted X.Xx, million of annualized balance shape great leverage debt and $XX sheet cash quarter-end, our outstanding At in unrestricted EBITDA ample to was $XXX had under and we Our with was only liquidity. borrowings net

Our regular earlier an $X.XX quarterly this week, of dividend cash share per of $X.XX representing per annual -- was $X.XX declared dividend rate share.

to now Turning guidance. our

reminder, our $XXX million $XXX consolidated our of range date EBITDA X. as reported incorporates outlook year and and and On range Hunt we expect As Light between acquisitions of Southern between on a XXXX to million. $XXX this a the July $XXX adjusted revenues to for closing and million basis, million

down slowing year this guidance, down about of million reflects or $X or of both XX% is $XXX margin hurricane-related million consolidated similar projects; $XXX earlier the report million dark business to which our by but reflecting break deployment X second, million cell to factors, $XX mentioned improvements Leasing schedules million will Uniti million, $XXX from year. will consolidated by moratorium for adjusted expected small our our the outlook million and months. two Revenues guidance made and than from unit. at quarter, revenues, midpoint prior construction from the revenues non-cash are adjusted recent $XX Our about tenant at last of constraints Uniti capital delays are our Leasing EBITDA $XXX is slightly be $XXX segment higher and be guidance, first, approximately the midpoint, Fiber approximately EBITDA which between the let our including amortization Kenny me fiber expected prior of million higher X Windstream. to in that

revenues Uniti Our approximately for and million, EBITDA million and adjusted fourth adjusted respectively, of reflecting XX%. quarter $XX $XX.X guidance implies of an EBITDA Fiber margin

Hunt outlook and from and the realized least quarter Light fourth Southern of million. million expect our of in months rate to continue $X.X cost savings XX at $XX.X run provide includes cost close, within to savings We

with realized are savings that additional off-net modest We be there cost can optimistic are investment. capital that

$X is year. expected currently update evaluating million $XX including Uniti to towards opportunities, Fiber lease revenue for XXXX ground with to Towers on be are you $XX this slightly those expected for for is to approximately $XXX $XX million this development. investments $XX and year to for call. our is Uniti million million with below breakeven. million be next We million, success-based and CapEx adjusted Uniti million balance expected to EBITDA Net between we'll be $XXX CapEx tower the Towers

segment Our Consumer is with about $X adjusted to of EBITDA report XX% or million million adjusted expected $XX EBITDA revenues CLEC this of year margins. about

to items. corporate Moving

$XX million, of discount We cost G&A expect interest stock-based to amortization corporate debt, year be million million Corporate including expense including the to and $XX million, approximately $X compensation. approximately be this amortization. should expense $XXX related financing of

TRS $X existing cash be Fiber, NOLs this we when Uniti to later of sheltered early of Our a related million future guidance entities by which taxes or includes the should year reorganization complete our also next. in

and to outstanding for year million weighted year The AFFO to AFFO Accordingly, per XXXX we fourth the and between $X.XX diluted to diluted with share. shares range Southern per common approximately be of common and Hunt for of approximately XXX full approximately was the impact expect midpoint reported common a prefunding be We the $X.XX $X.XX on Light expect share XXX outstanding million. acquisitions $X.XX. full average weighted shares quarter average

midpoint Excluding guidance have the impact, AFFO would $X.XX. been our prefunding

on based As guidance of transfers conferences future. such has that wanted included We to transferred continue and fiber-related so range prior with and confirm our adjustments. I'll purchase transfer that operator, intended of our -- allocation And to that, of to reminder, quarter-end, mentioned QRS. TRS subsequent full from components $XX such outlook our to take in calls made. further release ready our we note Last, change a that I dark is we questions. do subject had about our is to the to the finalization issued on assets of The we're afternoon. this to million first that press price to intend now do in been

Operator

Instructions]. [Operator

Louthan from Our Frank from Raymond first James. question comes

Frank Louthan

delays, that If kind any you out? have you So just quarter? with give up storm some You on picked some the in the states many color seeing that. how gets pushed are it the And of issues? chance Or is can that Or delays in of of those in there's cell could matter get for negotiating is it the any uniform any that faster. a small town? municipalities, of if state legislation states along the just with rules the might that that some move small process every us

Kenneth Gunderman

Frank, this the Thanks for question. is Kenny.

part of your with I is question, So is the the a respect answer first there think to yes, chance.

being I in think here. we -- we're -- I conservative think appropriately we're our guidance

and so passed recent the But And most the my at obviously, level, real where municipalities on a time So and that's to there bill the seeing the -- spending constituents effect help biggest I and are. there chance, various to municipal Florida, cells question, as markets And our largely with that. that's [indiscernible] facilitate making is we're resources is there. in municipal of focused your deployments point that you these remarks, in we're many secondly, small where progress. because we're positive of mentioned movement where state-wide a was is out, was, on state there. where really rightly with meetings our holdup with the But as is we're state

I progress, we do so. we expected. think than making to the and expect what it's is But just reality continue to slower we're

Frank Louthan

local -- well, Or these And signed? California? you municipalities? these that do you another think get all Will state bill it, preempt that -- is there is

Kenneth Gunderman

that Hard will to ultimately preempt movement, we but the the that It's preempt municipalities. it will point. this but It's new say at doubt municipalities. relatively positive doubt it

Operator

America. from David of Our Bank comes next of Barden question

David Barden

about on we where rating at funding looking your downshifting kind at out CapEx And would of kind minus be Uniti hat more is about funds investment banker the of use on on limited think burn up kind guess, your the spending you comfort quarter just, of a the I XX% say, use I is cost maybe is EBITDA capacity burn run Telcom that do that maybe you plus second of of million bigger Cincinnati rate, to, $XX that million helpful. this in Hawaiian could the how level about cap light at because Fiber there I LEC market $XX transactions efficiently, kind those resources of putting available of Frontier is and relative plus that's space, in hand, the add guess, at looking carnage then the Uniti cash your Kenny, looking plus of a if that business that just than how all think Bell together. coming put and question right Windstream, of

anchor As is significant that the of in space you something Or to hope box transformative part kind hope this that of is you're things repairs just and space, the the now? it the of group out get do just of wants maybe of any hatches in kind right you think kind of down to kind look better? the batten that given and that across Windstream there try and and

Kenneth Gunderman

Sure. first the Mark, want you part? take to

Mark Wallace

Yes.

fourth So are half about broadly, of the so intensity But received actually -- down third Uniti for the this year. million than did mentioned, that current in of and say one to we cash We're in $XX the of to the out that intensity we've capital the forward projects quarter projects. those not that higher in fiber Fiber, and David, this million expected so I in is so our flow as would on from some in that the level. fiber over, net CapEx, more amount about reason go I'd capital is turned some at say is I probably projects turned expect quarter, the the we get Fiber that what fourth delays sites quarter we to I dark in what to sites your the funding the future. Uniti XX% the small was and those at cell kind -- continued comfortable over arrangements Because question the additional of it going dark the to be quarter, around $XX in think is be on quarter into success-based thing likely in point

on already before, have projects potential, mentioned tenants, anchor those the we we long-term double-digit at projects. think yields I've good growth that are that have and on As ones great already those

we'll past. in -- as that continue the and do we So have to

Kenneth Gunderman

second in to that out space. with the seen we're So to up question, there. part of David, some in it M&A your us. respect your LEC think I interesting not that players do we've is encouraging interested That's rolling not

true, strategy however, we're Cincinnati synergies. about least, I Telcom and for at out tried a acquiring those it your is over do there and out think is acquisition those in for about are and parties acquiring with box for thinking cost and question the businesses, buyers out thinking still there So tried-and-true the not still about and That's rationale taking transformative properties. most I appropriate Consolidated deals. been the those that there of transactions, scale combining we part LECs But interested think Bell thinking Hawaiian FairPoint, demonstrates years. for and are to businesses a acquiring bigger because

transformative are transformative addition one there us that we about out larger smaller we'll including of XX% on. that it's ones the We in very acquisitions, continue confident And mid-sized are diversification things excited focus acquisitions because for we're us thinking to goal goal. remain there and the our and the one to reasons that in transaction could in deals help achieve about and

Operator

Williams comes and Our from next Cowen from Greg Company. question

Gregory Williams

happens lower talk just said hear lot Would is be risk fiber light. came second prefer why just They or April XXXX in this talks bit, would the fiber not my just could I I And seem around ever insights payments. to sort assets. Your both I not, of $XXX sides timing I'm of reflecting whether think would spinoff. really of stocks the like sort to I that your if restructuring? hear fiber interested million for I up curious before a question any Windstream you just after like philosophy. $X of imagine they any Windstream's was to or see to to it EarthLink, argument. about have have billion for it lease want just to to that And fiber if Windstream renegotiation? else. still I the a in payments or contemplated swapping you'd maybe your in assets. quite and anything to but a was be

Kenneth Gunderman

This Sure, Kenny. Greg. is

question, before now not or the changing So discussions had negotiations have any discussions any either and going payment. with not we discussions after with having respect lease have any your to first We're we're to Windstream not about any about event. or

may are questions, all. several there all Windstream think is our assets, there had about your respect We we're we're so having Look, discussions. miss minds sales. you With those asset, that about I range so not clear think asset that So some. strategies pursuing that pleased and not at thinking in to the leverage some very there to of about, question I could as that spin It's were we pretty about are markets we a invest that understand network, original talking from that in. value the the outside they've happened, talked because they that XX% asset that regulatory looking of and see publicly, that booked of their talked perspective. was from that you when The chose about about that not ourselves recall, they're we they we valuable

fiber they states regulatory transaction. didn't have including they [indiscernible]. that the the acquired about EarthLink they several since potential that some So fiber [indiscernible] are were because , just include secondly, concerned original there And

we [indiscernible] is a we're specifically, in if follow-up usually of answer obviously would assets, in And back I interested missed are and acquisition Don't any. if your we'd of I assets any be those the on there think comment the to mode, I question big [indiscernible] be at And some with but looking available, think we could the are -- So those be. probably two drivers. to with about want stuff.

Operator

[Operator Instructions].

Niknam question Our Deutsche from Bank. comes from next Matthew

Matthew Niknam

to you I and I One, midpoint, help the on share if AFFO us so two per Can And guidance. deal want the down better the Kenny, somewhat then at comments the on the about what in parts understand, actually there's secondly, a some pipeline. AFFO Fiber, share were per reduction, I taking unchanged, your just Just -- interest is I moving despite think, of reconcile Uniti $X.XX could. yet guide. EBITDA appreciate

wondering what the may seeing potential of walk couple be light of any of in in -- more taking, I whether longer of the in your you what's of gone last Just guess, you're a deals deal volatility some months. that Are just sort of away partners out in light little given some securities any active bit losing on on are the or discussions?

Mark Wallace

Matt, this Mark. is

with start your I'll question. So first

the of -- year I we taxes So on that Fiber entities EBITDA to that so that related that cash also referred need with I our get fiber we there. and X $X of small primarily this second Uniti million really we -- TRS acquisitions we $X half utilize reduction the reorganized the the $X existing our NOLs. the are It's to incur It's cell adjusted that the things. reduction delays X our mentioned TRS can that associated AFFO million expect is so the in dark in to, million to of

AFFO, EBITDA Leasing segment, offsets the tenant have line, line. it EBITDA the much which additional the we pretty that and it's offset and To capital for principally your the taxes amortization capital that same, EBITDA on stayed Uniti X amortization the items on revenue but and of it's adjusted the tenant it the improvement out Fiber. of improvement doesn't is adjusted reduction because point million help on million, the reflects ranges on $X the AFFO other $X cash that revenue and So

Kenneth Gunderman

And us, definitively I Matt, haven't happening question, definitively. been with new never of say second what's approached I counterparties that could can't so because say respect to around by your that we

us We show don't concern of have what's about think counterparties have so, and away of say view with or let Although we that. that had somewhat types going conversations I and the what's is temporary, on. move happening I any -- talking our And and we're any can from of know would not we say is artificial. certainly it's course, people those I

So don't been any there think certainly We directly. pullback. seen haven't I any has

is of fact, tell capital because both what's what material increase very us inbound In finance to would seen transactions. you private of large amount help a calls and looking we've I from in of happening, small actually the sources

say X whole I more it or probably the that in than can't so X so. a past about And has up absolutely lot picked over is weeks it that, or but something velocity

Operator

Our question Morgan Stanley. Simon of from comes Flannery next

Simon Flannery

the on staying just M&A Kenny, side.

Is of a or down that a that something that You bit that this being hopeful said either here little you you're you're do the the sort a capital see get an a to tower convert during -- is your about on able U.S.? just quiet you like you thoughts build-to-suit you'll that? waiting thought things want that how are the talk higher settle or concern then sense stock there Do on Can Or quarter. to talked don't that What Is see side, the play things this some market? Mexico. some you be will And there and to price stock the out? issue lot about at are point? just just use about side? to opportunity about latest you

Kenneth Gunderman

Simon. Sure,

at cost of So part securities we obviously, and your of -- that's our look an our capital. everyday, we first question, important

on with focus the that. we So and happening happened stock been to has bonds, what with need and

temporary happening term. be caused also believe resolution rightfully as us way. But in be that we I that to think it near cautious, view and the positive right, situation, some there's in And that we both disciplined a so -- has now so to going a initially to and what's

some fact, accumulate had our and so to inbound lose capital actually weren't could we by we've being more little of was view going the with slowing that a opportunities any in opportunities private And and cautious, interest that down from sources.

like but I out, as it We're more are fiber with think use So where that, to to that will have your that that the carriers, that with a opportunistically. but we we relationship to And U.S. I to carriers a being was respect With as that we question, prudent but deepen opportunities our combination part the feel a business. directly there's first, think we also feeling can our an just that and we deals view temporary. fiber company can great playing to we opportunity was of proprietary the it second -- of drive view to be opportunity, things into this so business the find is where oh, those continue case. think continue towers,

We have there future, more materialize talk favorably, in I be in will more there seen able continue we'll that. to that think, I think And the from so about probably be relative and to side. near activity our probably XXXX,

Simon Flannery

Is to buying or existing that suit portfolios? build

Kenneth Gunderman

We directly best be cash competing buyers build with that Simon, portfolios this opportunity is carrier, like do we is appealing dealing -- appealing. the we're to opportunities the versus not versus other where directly economics big build-to-suit where tower think, with companies. look us could speaking, That carrier. in to means dealing against economically that suit definitely of we're buying our we're towers, market believe, the where And those

Operator

of Rollins Our next Citi. from Michael comes question

Michael Rollins

you history provide curious they a are revenue the the Windstream. lease was is to if that share, you how to of from of the as And reported much maybe last more back lease with even go into amount time quarter, generates the I spinoff assets you? about or could to Windstream tied particular, the the you bit in and just context able if of

Kenneth Gunderman

was establish the those spin-off X with lease business accounting the advisers, than second part part, would not is for I and was detail different and value market your time say say I'm fairly if the I of of behind rather I think a fair were market advisers that. analysis then analysis, sure payment into led then lot that, question, sort firms, actually, would value Michael, to also supplement at of and fair X that a the X there, establish hired adviser exhaustive And follow what but on So a what getting first there to I another a the big of to associated assets. -- there

process to your part And the the was question. up didn't follow that sorry, second of I'm the leading spinoff. So I

Michael Rollins

can from of you off to totality maybe they if is you the much reported Windstream's the it at lease you? last how the assets quarter, either at of So or tied and time the Windstream's describe that revenue look revenue you spun

Kenneth Gunderman

Okay. that answer very hard question. Yes, to

what and have said the -- so acquired earlier I guess, that we mentioned the you point. -- be But proxy as we, think and acquisitions. that we assets, Windstream's So network hard before, roughly XX% of good, a I made to also I a starting of couple remember would

how in sure also, of in. factor were not of our with network. I'm not intertwine would But business included the that rest parts the asset that the still So the pool

where if still fiber those the that segments properties, acquire we own. a the state network didn't traverses customers for So we do or example, there's from traffic allied

Mark, So I'd add. to like think that to give as on as you be I give able have probably more to that's much clarity Michael, thoughts, I can any unless question, about but

Mark Wallace

No, not all. at

Operator

JPMorgan. from Cusick Phil from comes question next Our

Philip Cusick

a stock willing follow then? at the I the would bit is to know questions, use this and would understand, look little deal? sort stock first. would Or it's just want do to up would transformative I given high I a burner sort be to back, and That's so want use something pretty obligation of your But price on stock to you what think, and that's that this dividend much. the and if David on like of I dilutive comes -- a deal, you the Simon's

Kenneth Gunderman

Yes.

clarified you I'm that. So glad Phil, good question.

this our is that at structured very depressed stock had levels remind probably issued to prices. was we've past, structured our not the past the would strike that folks negotiated but in of stock at high we price, of securities the in securities So issue when things one

acquired So the share. to was preferred -- selling PEG, issued when for we $XX we PEG price a example, to a convertible the owners, strike the and the

sources I opportunities so for there that's interest why to of capital. Phil, of think back sort out And private from earlier I us, made comment that I about those tie are and inbound the

are think those I opportunities.

Philip Cusick

revolver deals given second, obligations for you you cash, using fully your then flow's And committed? your already could you with comfortable CapEx the come as deals -- like last that about cash that think for are couple

Kenneth Gunderman

then Well, can Phil, jump in. I'll start, Mark and

don't net know, -- deal. opportunities some transactions triple -- you CapEx so on depends think have the have could that as sale-leaseback of I high the be no requirements In at sale-leasebacks many associated that are near-term margin looking that we're it CapEx very requirements. with and them,

cost Fiber will we think on I So to then, think, and how to, to as overlaid for we with CapEx Two, very temporary, one. continue of so plus so would chose we again, remind our that based, XX% have that's liquidity you lever three, capital. overhang the that if people think back our of to and do do easy this But Mark, our well. situation long ratchet is Uniti that to continue that? add we just is be this think to success will us always situation want a about with we as it at and

Mark Wallace

the or do agree both dependent can is impact construction we your that structured to the really a question's is instrument size of attractive with mentioned opco/propco all it and well, that the facts I extent have on -- So is I the what also mean, what wise. think impacts at with structure security transaction transaction that then something either I and that. that on other or the structure with depends very be other They capital -- else the transaction I transaction our may as time the transaction. but what long-term associated arrangements.

the of kind So dependent fact at time.

Philip Cusick

then you changed? like has on I now And How are. you you can. asked, but said Windstream it call last quarter assets, buying I Last the additional were same sounds interested that one not if Great. in when

Kenneth Gunderman

question. Yes. Good

Windstream customer. think where a be would quarter, I the our difference on talking So is assets we're last sale-leaseback about

earlier, where not it As we there assets different I the would or a I be that understood be Windstream. of referring outright, on ourselves use question would sold those customer have was to assets assets, those -- uses thought either would

Philip Cusick

see. I

not in you'd interested example, dark if be sell they fiber, for interested So Windstream, were in to of still sale-leasebacks but more that.

Kenneth Gunderman

Potentially, yes.

Operator

And this turn Kenny concludes the the back Q&A portion of for over Gunderman to today's conference. closing to I'd remarks. Mr. like call

Kenneth Gunderman

in close I'd you all thanking to we we for outstanding Thank Fiber first hurricanes. again field forward loyal Group, our by many our us progress interest you and tirelessly you. on Uniti who recent our Uniti today, provide Thank and during joining look employees, customer service worked especially updating to technicians to the appreciate like your next quarter.

Operator

participation conference. Ladies thank today's you and gentlemen, your in for

You wonderful may a disconnect. Have day.

Uniti (UNIT) 2 Nov 172017 Q3 Earnings call transcript