UNIT - Earnings call transcript Q4 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Uniti Group’s Fourth Quarter 2020 Conference Call. My name is Andrew, 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 March 1, 2021, and will remain available for 14 days. At this time, all participants are in a listen-only mode. Participants on the call will have opportunity to ask questions following the company’s prepared remarks. to actual that from results in statements. like forward-looking remarks those would these and statements, could company remind today’s you include projected The differ materially discussed cause SEC. to The with actual that company’s filings could differ factors are in the the results this call. reference slides remarks and its posted those to will to encouraged are refer afternoon materials company’s on website, The you during this estimates December reflect and results the three best ended as the months and preliminary of hereof. for on as XX, financial available are All XX XXXX date information of based company’s and the works subject complete auditors are to audit Results change complete as to financial its work. the company and to results their its work

the In be Executive non-GAAP ahead, GAAP turn measures dated Accepted now I the Accepting can would addition, found include measures Mr. to comparable financial Group’s current over -- also not in financial most X-K the Principles. directly with Form Please certain report will go Reconciliation of Generally today. Kenny measures that Gunderman. Accounting call discussions to Uniti those financial prepared during to call on like Gunderman. were company’s in the Officer, Chief accordance

Kenny Gunderman

Good you thank Thanks, everyone, for joining. afternoon, Andrew. and

XXXX I’d future for was Uniti’s value for accomplishments and review to and our tremendous stock strategy. Ballade Uniti that Before I that up success. refresh true volatility accretive go-forward first saw a like our operational Uniti performance, on set year recap XXXX transformational to our

which simultaneously agreement. and a lease in a strengthened participated successfully deleveraging settlement our customer, we billion revalidated entering First, of largest value enhancing $X while our

demonstrated under executing a $X.X lease-up sales within on XX% by funnel and million already revenues by contract. our success have of $XXX increasing Secondly, national assets we grew by months our and network of billion new those few

profile. Next, significantly we our our and debt liquidity improved maturities extended

fiber. non-core and recurring the In estate completed from on of monthly a industry margin we us churn XX% revenue high divestiture had year a with portfolio, leading terrific now X.X% focus that our operationally. position short, real we with operations Lastly,

a critical technologies other we expect wholesale video connective all future It and feed country, providers to In our Turning a broadband conferencing, virtualization work on independent four greater the daily remote our traffic. that virtually of our and XXX has seen wireless, fixed explosion traffic to years, are roughly of is of roughly network past increase to and the gigs satellite XX as enabling slide for fiber-to-the-home, delivery. times from the network in onto tissue is e-learning, the gigs, our usage only and agnostic general enabling environments, trajectory culture. one a largest ramps as of to in the peak and of all mission telemedicine are we mobile continued current well presentation. are XG Fiber broadband, four XX continue. that traffic broadband

healthcare, education, As accelerated durability further staying COVID-XX trends industries our such particularly elevated. proof our wireless government been Demand critical business, to have of not has model, have been many as that to connected. of little virtualization the pandemic brought actually but of disruption the from the and customers only

buildings five to fiber to of in hard proprietary replicate years network lease-up XXX,XXX route miles customer and that slide possibilities. shared In with with new this Turning and economics provide strategy to sales economically. anchor is industry tremendous years valuable country and of stable alone, new we’ve in miles addressing a relationships built cells, five. growing tailwinds the us unique eighth fiber, and through and anchor fiber the X,XXX past efforts small strand with Uniti three M&A the these build infrastructure our connected long-term portfolio amassed largest only homes. portfolio We’ve and

success tremendous of to access We’re for and network our strategy. demand seeing our

and national portfolio XX long-haul a growing as on Turning our states, profitable, metro opportunistically to Uniti including managed driving and highly in customers. wireless schools At we’re managed Fiber, provider and U.S. our largely across M&A. Uniti passively fiber actively and through less we’re slide proprietary routes revenue enterprise, providing to targeting At Leasing, X wholesale customers competitive and Tier solutions, and lease-up six. Southeastern the X government markets

Our strategy and these with is along customer of driving demand. underserved our relationships targeting markets national scale unique

Fiber us Dish an With given Dish, advantage Uniti with build efforts its to national announced competitors. one restructuring already of we’ve As Southeastern leveraging providers making provide us, behind across four named in these solutions few and agreement Within infrastructure Dense example, our more the United recently is the of our out now Dish reaffirmed, our a for market XXXX. network speed and to as over begun our portfolio in volatility has months for XG strategy in existing announcements, to we cost our positioned were markets, targeted tremendous success in which now a to our States. a fiber its

slide to seven. Turning

Our continued through for priorities focus revenue driven our with anchor driving while expanding high attractive recurring will margin new year a on network economic builds. this selectively be lease-up,

We expand continue our executing funnel. revenue will by M&A also our on to and passive base network opportunistically reach proprietary to look

true will socially Uniti few Lastly, these as report of of nature ESG workforce. respond and mission in to our world to we our publishing responsible network, hurricanes, growing critical committed months, the our first manner. are and ability the our COVID-XX, efforts, essential next an operating In be unrivaled and summarizes disasters, class its including business natural and that to nature such environmentally the

on the that cash lease-up These on of bills expected since have XX% sold year lease-up-to-date wireless to annualized of completed. the generate in anchor sold of times the a relatively Today, we on basis, within million year cumulative major timeframe. XX%. XXXX. sold Turning wireless to generate yield expect $X.X which yield expected remain very been leasing operational in additional incremental and our the lease-up we’ve is years new three initial now bills up to $X.X cash and doubling these cash highly recurring revenue Southeast markets Including our to dynamics increase projects, our demonstrates we’ve successful million, yields a growth Tier incremental the competitive an we In MRR MRR, is underutilized on results, had continue XXXX our networks eight million slide major X in alone, the construction trajectory the we cumulative a X flow $XX approximately of network will fiber we coming resulting in yield. lease-up began The four strong. and anchor our is

effectively enterprise that working our revenue These XX%. good from markets anchor that and grew we expand approximately reinforce our and strategy XX% in grew bookings on on In quarter are our came in Fiber MRR to fourth XX% fact, the results demonstrates network small sales we bookings from fiber sales is are dark $X.X follow that manner fourth in executing lease-up. Uniti over non-wireless the cell of of year, quarter customers. and and were the while prior choosing a disciplined million revenue approximately

bandwidth bookings to during related XX% year over from to the non-wireless totaled MRR, non-wireless XX% total MRR full related installed wireless quarter $X of Uniti million fourth with of million prior of to gross with upgrades. bookings $X.X Fiber the installs the X% For related year. opportunities, and increasing XX%

MRR we full year. MRR installed the installs non-wireless of from prior $X.X million up year For with the XX%

over is At slide nine. of to actively Leasing in us that miles to making strand fiber X parties the lease market we continue available wholesale fiber to one largest million to market. Uniti of players Turning third the

strands. from contract interest reflecting wholesale our we as sales pipeline well of the XX% Approximately as opportunities continued billion acquire significant strategic these total our the Our settlement Windstream. fiber today utilize value, part $X as of of the represents with of approximately customers, fiber value

years. today executed remaining monetizing on revenues $XXX be opportunities assets of average contract contract and million, term to with our they’ve under total that We portfolio of continue remaining an of successful in represent XX

we Leasing, the XX of plus margins proprietary opportunities continuing structures thought Windstream. a primarily are at Sale fiber slide have nature IRUs and types we revenues provide compare long-term offerings no different expand to of our under Given driven a and pursue. of and executed proceeds Uniti we’ve enter required. upfront helpful lease CapEx to on dark million are economics. new return to acquired Traditional with $XXX be then These leasebacks leases remaining fiber where from contrast million fiber fiber XX% to acquire generate our we have opportunities acquired minimal and to -- dark immediately network the tenant and of $XX with Lumen and the reach contract, of would we anchor

operating upfront These years TPx, lit term transactions services we partner revenue and and then retain in transaction actively we Our multiples XX others examples. lease underlying to our to at contractual double-digit a revenue grow our are CableSouth proceeds, fiber immediately over year an revenue managed net IRU. existing where of with the sell form access which and generate transactions or average the year XX network, the the of transactions substantially. extend OpCo/PropCo

sold our and as operators. lease transaction For long-term sold northeast our both simultaneously we our of operations part we of into transaction Midwest operations and recently our fiber Bluebird example, agreements Everstream as part entered with

customers acquire we sale fiber partners. anchor Lastly, from customers, yields at fiber pre-existing whereby leaseback newly access we CapEx who built and leaseback immediately attractive programs that are anchor to typically growth provide to then

of these structures. approximately Over years, from the upfront two transaction total past proceeds we’ve generated $XXX various million

revenues we under generate mentioned substantial with related I capacity currently As $XXX for contract available yields to attractive lease-up. remaining fiber these X% million initial which of of earlier, to XX%, transactions, have additional

deploy investments margin added $XX and leases a to of relating the to markets in Windstream X% initial XXX% Turning approximately Program providing XX, growth within with These an and to we $XXX our escalator the time. we under with Tier substantial Windstream. markets annual over of slide near In XXXX to X markets. Windstream be opportunities these the capital subject X revenue. yield GCI ILEC primarily million capital competition Most will invested master in results X.X% little GCI to with XXXX, expect at are million to Program of similar

approximately investments for that, resulting creative to we’ve combining long-term $XX Uniti lease-up cumulative turn ensure yield lease-up of when XX%. sold fiber on With making a tenant. Leasing. slide sold criteria. request to our meets meet by the from of committed more million is a cash return including annualized XX, X% major As Uniti the generated initial Uniti and the over today the the over revenue, these criteria, anchor Uniti lease-up in Mark. to has will On we underwriting than proximately anchor yield has made I doubling wireless reviewed must a with it Each thoroughly thresholds reminder, minimal projects to being have call certain value

Mark Wallace

today. of information and everyone. and as estimates this year afternoon, quarterly reflects is afternoon I’ll full information The based Good on preliminary company’s review the Thanks. available

results March to and review expect may want are our results complete audit I XX-K than that are working year believe independent now differ later on no file from to XXXX will Actual both of and outlook. are We my primarily to fully our With complete these XX-K working shortly auditors We financial to be brief filing their But Xth. quarter our Form our fourth focus and a comments XXXX that, work. estimates. performance. full give I’ll completed

I As as position infrastructure. number with both balance in we today that fourth structure. on to Uniti communication investment and standpoint, start continue results. actions our on XX. operational I’ll cycle well start dividends long-term thoughts quarter sheet, and with Please Kenny benefit comment to year slide a capital commercial from my our execute the up this -- will of wrap from

$X.XX. $XXX AFFO EBITDA $XXX Fiber of to and investment well million $XXX expect revenues attributable million, Windstream, of dark consolidated per straight X% Leasing, achieving common perform quarter diluted revenues attributable loss Accepted million, report Uniti we to We is expected of common of annual reflect Net shares of common million The EBITDA consolidated share to prior adjusted revenue margin the for we adjusted share $XX $XXX diluted agreement. to at up impairment AFFO expected includes Principles. to million million charge is adjusted as recognition result costs. $X line The of related goodwill each, $XXX The under million or Uniti GCI to segment of acquired Generally of our share, Accounting IRU our under annual assessment XX%. while settlement report At $XX be contracts year, and per $X.XX required the charge a we’re other MLAs fiber and an segment lease expected transaction the as growth million, and expect the of subsequent respectively, from which impairment an from related approximately and to EBITDA to escalators. year-over-year Windstream goodwill

During program. the valuable about quarter, Uniti miles were investment million towards year $XX related year million network million, GCI ILEC the Uniti’s to strand of XX route These XX,XXX related mostly fiber X,XXX the were capital growth Windstream $XX XXXX bringing approximately $XX and Leasing full deployed investments to initiatives, owned states. added investment different GCI ILEC and investments approximately across miles of full

these XXXX of yield making will a recall, million. investments XXX the our leases on of cell the anniversary ultimately $X.X escalator. added the under dark investments X.X% fourth annual the the annualized small generate in Southeast annualized sites we footprint year X% of At over wireless during initial subject at revenues for Uniti rent $X.X you’ll during carriers investments made quarter, As Uniti billion rent. cash fiber payment turned Fiber, across adding to to cash are master The one

year, cell have full quarter dark we about approximately of to two backlog are cell revenue. revenue. We next be for representing $X than estimated within we incremental XXX to small an million Fiber our the representing turned increase over that expected due in fiber higher deploy dark XXX sites sites, remaining Uniti billion fiber in recurring annualized non-core expect to revenues small currently the annualized and revenue. years, the of $X.X For

adjusted our of business losses result non-core slightly expected than to within a higher expectations end. down that was by expected While below wound business, year EBITDA substantially construction is as be

are in timing build $XX adjusted million capital construction, upfront net were accelerated in in of fourth CapEx quarter a than at margin planned and payments. million of be $XX EBITDA NRC the XX%. base XXXX non-core of fiber that Uniti to support expected approximately the higher occur attributable Fiber should was Excluding in key of deployment success previously line out to

We achieving during of of We X%. about CapEx maintenance builds deployment also the fiber incurred aggregate completed the quarter, and revenues. cell X% remaining legacy $X of initial major dark million or small an yield our anchor of

that turn drive have we mentioned Please these earlier, we XXXX and Kenny and will second projects of including yield yields higher As with OpCo/PropCo the announced even these have our XX% the to I’ll our with both will record Everstream, Everstream certain book XX guidance. early year aggregate settlement expected fill time. which closing million notes outlook related pretax Uniti to on generated in of lease-up $XX cover Fiber as we sold were offering gain includes quarter Northeast transaction of the partial operations over from lease-up in transaction tender. is of be previously slide EBITDA to-date XXXX close cash the now continued this required in of of impact unsecured AFFO. and of These gains dark X.X% fiber on in and IRU the approximately excluded Upon of Windstream. sale the contract to part expect a adjusted

of excludes posted in outlook A preliminary included materials mentioned full reconciliation XXXX results the future our website not and today. year current market statements. materially capital from and specifically to Our XXXX these presentation future costs other is transactions herein. we on acquisitions, results our transaction differ could Actual forward-looking related outlook

year for million the impact Our primarily full Leasing, expected the we of adjusted Uniti XXXX year-over-year EBITDA expect revenues be segment. adjusted reflects full and rent revenues increase of $XXX Beginning following $XXX and Windstream for million, at million the and recognition year The line margins outlook in XX%. respectively, success GCI each each X% million the the base includes acquired straight midpoint, master EBITDA Uniti the representing straight-line under to MLAs with CapEx estimated investments. investments. master Windstream leases EBITDA a reflects rent Outlook $XXX escalators. $XXX million include contracts investments. and relates Leasing, associated lease to impact at of with GCI and IRU of Windstream and which full to year The of Revenue Windstream/GCI we net related $XX adjusted for

grow EBITDA support will ILEC we and continued highlights pace up kinetic Windstream, $XX adjusted and and We that for across and the transaction. expect most diversified IRU be leases the $XX and healthy IRU multiple third assets fiber million to are a at XX% dark across high speed multiple acquired of revenue to of of Everstream contracts expected Slide internet investments Windstream’s non- the This where XXXX rollout revenues levels. offerings are these XX% Windstream fiber dark the million, and markets. parties from respectively, the part XX includes is

We specifically are targeting given area significant over this growth several the pipeline for Uniti fiber inventory. the strength years, of next available sales and Leasing

with bookings weighted with deployed, revenue year opportunities guidance fiber fiber year annualized realized half XXXX, expected that of year. of is lease-up revenues our are revenue national that expected full are acquired towards this network, of Windstream. the we fully rate when of Therefore, opportunities our not to run of from the full the approximately this For $X.X the given year expected lease-up typical heavily with generate for coming million more XX% several cycle. utilize associated to be annualized next The impact be cell back to until includes

leaseback including While other to any opportunities, transaction. Windstream we guidance transaction of excuse OpCo/PropCo the Everstream sale and pursue than our transaction, are me, XXXX for in continue these we not

impacted for year-over-year CapEx of to Uniti business, Turning these Net Adjusting noted by this adjusted impact is the increase $XX XXXX and expected to as transaction from Uniti the expansion expected the $XXX year year respectively, million million Fiber revenue adjusted I year XX% XX, down at $XXX decline contribute Fiber to expect by success to two and of reflecting Uniti Fibers prior part our of winding X% at our to operations are for midpoint and guidance. Everstream XX%, earlier. from million. slide being Fiber $XXX XX% million to non-core Uniti and margin this items, the of of of last EBITDA, we of construction outlook sale revenue is base the for northeast year. our EBITDA

support We as from anchor as well of this capital additional have continued lease-up to of be in deploy expected is XX%, completed about expect XX% to we in builds, greenfield markets where builds. down intensity recently to Capital a year handful wireless in those XXXX. pursue

We expect the to within manage mid-XX% to intensity continue range. to time capital over down our be

‘XX $X approximately million. We CapEx for expect maintenance of

XX. Turning to slide

consolidated revenues and at we million diluted XXX be to between AFFO year adjusted basis, with common billion share share to diluted we and a $X.XX range On XXXX expect the common For expect midpoint. of per midpoint per $X.X $X.XX $X.XX a per diluted EBITDA full to be share.

of for contemplates approximately payment Notes write-off tender of our this $XXX million, guidance segments cost Our consolidated due and expense. tender compensation Reported including write-off early our excluding year interest to expense and early year the payments. first related include SG&A full should stock-based tender million million of Senior the XXXX. X.XX% $XX deferred the financing of expense million an XXXX $XX additional financing, $XX Corporate of amounts premium in be allocated approximately deferred $XX Unsecured in excluding premium million, quarter to will costs interest are business of

shares of agreement. million to XXX of impact XXXX average issued year settlement the creditors compared shares, be shares XXXX, We full year in Windstream reflecting of as approximately million diluted certain part weighted million outstanding expect the the full XX.X to for the common we to shares XXX

outlook, a XX, reconciliation guidance for outlook to my appendix As year full we our ranges comments of in XXXX this presentation. a of summarizes of which some to preliminary On are slide components tabular provided our included key reminder, have XXXX afternoon. our the results

to our now structure. Turning capital

the On into lenders to modified commitments its to subject providing pricing and amendment successfully In an Senior greater to continue date debt closed new restricted net approvals. used on issued X.X% hand an pursuing cash due Unsecured XX% notes XXXX. plus December that year with to XX% outstanding flexibility including of $X debt due realize Notes And our the XXXX. X.XX% approximately redeem payments, billion of February we also from -- Unsecured our and to agreement in Through offering Notes regulatory the borrowing Certain successful credit we by approximately On we will XXXX, at cash maturity purchase XXth, offering accrued undrawn upsize by or the improve unsecured April XXth. refinancing limitations routine years. lower proceeds the February on significantly a existing savings financial cash Uniti our or flexibility of extends outstanding equivalents The -- work from related capacity. Xnd, Senior removed, had par six were all strategic annual notice investments, or $XXX permitted together unrestricted combined of notes, restrictions and and were a to improves of that due remaining million, $X.X to and unpaid permitted million and December, and to entered for million revolver billion XXXX $XXX initiatives. incurrence, expect interest approximately $XX exceeded Uniti to costs. ended we We interest cost and had maturity our XX%

at times end stood ratio at adjusted year leverage X.XX annualized to based net Our on EBITDA. debt

of decide they REIT decision. Both allocation appropriate favorably that X% under based dividend on dividend dividend of our stock levels, are April metrics stockholders of February $XXX income recent dividend Xst XX% compare capital year the annualized our Board of XXXX, outlook, of capital to dividend dividend payable payout Accordingly, be allocation levels, tax the on recent February the a XXXX a just XXth. our for record midpoint the debt of declared grow excluding including $X.XX and approximately to XXXX. per XX% XXth, yield outlook. maintain million, has to with the on gains. about the -- of April of future allowed today in peers dividends the and based trading to represents capital This attributable levels these declared is estimate this ratio XX, that our the to strong our agreement, Board these a represents the at share decided provide to taxable under on should on year, At Regarding flexibility

capital. attractive contractual markets and set by XX Uniti Last, high and March we recurring cost opportunities Uniti earlier, expect Xth. annual has capital Fiber. may Uniti file that we of our including made Uniti report a both Slide advantage take closely to that our continue to highlights lease-up reminder, efforts I to unique As deployments monitor improve ongoing have -- constantly valuable generate through through ongoing our Leasing to margin XX-K and our assets revenue on at a

are and We providing company the auditors on fully regarding to of time their internal extension statements complete information Furthermore, several the an filing and control. financial give more our work to all investors about financial have Windstream. asked

Our XX-K, in include preliminary filed Windstream unaudited will annual XXXX year section financial fourth on report. of full MD&A quarter report when Form information and that the

filing We audited financial expect last statements for of following Kenny. the final Uniti its and call supplemental over now those will back to and receipt turn audited year by I to file completion statements. a Windstream’s

Kenny Gunderman

still bankruptcy. Thanks, we Please applied discount turn there’s compare other substantial fundamentals compared to and REITs a to XX, publicly that Mark. Windstream’s to slide believe valuation when from infrastructure Uniti of traded our favorably communications resulting many

highlights a space. unique As Uniti communications infrastructure slide opportunity XX is in the

in early a tailwinds investment We’re years of the for foreseeable growth the for provide will Uniti cycle that multiyear future.

strategy assets of a contract have XX% with unique of churn attractive $X recurring monthly and term. with replicate billion portfolio years revenue, and nine We hard a differentiated under economics, revenues and of average X.X% remaining including of a restructure to

that, we now Operator, to We a execution funnel. of take are organic also M&A proven growth ready questions. proprietary and record have value With track a accretive

Operator

Louthan Raymond Your first from James. Frank of Thank you. with the comes line question [Operator Instructions]

Frank Louthan

right. Great. All

the have just on us clear can you better kind you So you of the with -- then that And of in are ultimate more had the that’s give are to the little now stable generally to sort process that the going as do the be are opportunity we a new on forward? declared you’ve all assume that on fiber what that? a looking and rate think you detail dividend, dividend revenue Thanks. is sell-through with at Windstream, where with look have

Kenny Gunderman

Yeah. of take Kenny. Frank, those. it’s both I’ll

And got low have dividend, to is options the balance M&A, a ratio our I it terrific think Mark our alluded, compared the payout a we’ve be use -- as liquidity. group. strong to also strong or dividend. organic whether on sheet, And paying capital, peer the AFFO or we

way at on against sure, putting continue. -- together, that prepared is Board with our of so in his think when for relatively we investing raising foreseeable billion a dividend don’t the yield, sales the he have But looks that network enough focus, about they that think you about X% as when we those about paying we And sell think that the months we’re have. the all currently that there’s we to peers. national funnel comparable I I talked you higher think yield, most wholesale sales our or respect there’s, about because and to But opportunities XX XX mentioned also too remarks, national from a sales the I we is within wholesale discussions few business $X.X our reps definitely doubling billion and high to putting conversations those side stable uses continue err organic level that’s $X the and gets the of the teams, on and opportunities level With lease-up we so, just capital, for the the terrific our future. various to that in think, mean, balanced network, feel terrific those. I

be about so Frankly, of think extent shows incremental where closing critical that are, where that real settlement, would feel of success in we doubling much is door be. great And is. that demand there we’re revenue through months million on But is the under thought I clearly contract of we we’d it. $XXX just just of showing ahead if early where funnel the and really, within revenue thought and and we I strong few following I indication really how so a and really way to compare opportunity with

good it. about really feel So

Frank Louthan

Okay. That’s really Great. Thanks very helpful.

Kenny Gunderman

you, Frank. Thank

Operator

our you. question next Thank the line And comes Long Barclays. from with of Tim

Tim Long

Thank as well. Two could I you. if

auctions First, on started perspectives with a and there’s mentioned you the healthy But on Dish been C-band and there. your wireless here, maybe obviously, just XG. going going pretty lot offer

could So be potential a bit increased digital there, you appetite second, be X markets on divide X programs just have might about talk to where government and you could kind maybe going Tier participating? Thank you. of And there’s about and that little might opportunities? bit we a and little then given talk the impacts think you

Kenny Gunderman

continued we Demand it flows, know, mean, year and of amount of selective during we’ve seen wireless we’re definitely really the people last markets, been see but markets, any the Tim. about our strength. we -- is our certainly, ebbs saw steady heightened in strong. and I customers saw anchor COVID Hey, a take COVID demand. very, very And slowdown I on. from [ph], kind not our We did X really us, months, Yeah. talk the And -- the month for MO Tier about bills that’s

I’ve some of be to lack going and to So we’ve couple we’re said before, pursue from we’ve continues not churn this trends, others unexpected, demand decommissioned. and a never see from -- felt sites the and that our to Sprint A like one, wireless but carriers never of being case.

a carrier going offset think we great great from there’s coming offset about an intuitive years to the and market. one opportunity right, be related really about symmetry We America parts commitments And Dish. wireless this see said volatility to another first that by and little ago, in new one good by T-Mobile would year that of the this coming the feel that new we when there’s and and more we feel with more there a and expect be invest rural that X, was to there, announced the demand national there being network the And merger a decommissioning next T-Mobile couple we near-term into be away ETL a certainly will longer more really reaches That’ll X especially markets. more into good And but their Tier customer, it our than than X the expansive revenue. sites year. about felt over term the

need think spending opportunity. need that third-party think to the they believe the be build amount auction to carriers the because we that they So And capital capital with there’s third for and -- more that more we nice the going means are really us, to offset the providers others, them, that I a help fiber on for priority. of demand them from C-band definitely

demand, increase the fourth strong XX% quarter remarks cells, demand. quarter last in prepared see referenced Small we year. over net-net, I’ve So that steady in my same it

think of that. start really chest deeper trajectory the a of of we’ve our to talked as the our going that a to small is started chest. core in a business cells -- tool We’ve prioritize it’s also starting central growing And to it eventually our would entire that fiber focus get But see again, continue. their we’re started carriers in really I today. about to It’s small the to talked about as the into and markets as not product always as part opposed markets prioritization business.

partners So do. feel a I great to With us. about federal our positive subsidies, subsidies various think net don’t We it. get respect leaseback definitely are cell but for direct those

other cell for think That’s to the telecom support just broadband. the in does a rural bipartisan been Windstream case for a we decades of some continued and general think there’s know, there’s continue. as of that’s -- leaseback and course, partners going you many, Of just general many many I and

nature on tailwinds one multiple broadband -- the the of is of broadband we connectivity going the for focus multitude so critical to is And infrastructure by just of more mission revalidated think during Uniti. and -- COVID, and

Tim Long

Okay. Thank you.

Operator

David question Thank next you. And from our of the Barden comes Bank with America. of line

David Barden

investors to a we’ve guess, look -- your, we to should going have could picture will historically, us to for comfort later. like. a I about think as your respect relative of I you But is obviously, Mark, And in I disclosure you at how thank the satisfaction feel kind Thanks here could with more give regarding size if this Windstream, then, plan we you. around you you nature, which disclosure guys. will you of kind XXXX don’t quarter. this get and performing taking sharing relationship don’t what and of how both Thank them with stage. level wondering was they’re know, deals, of Hey, funnel with characterize for to Hey, lot Kenny, terms the questions. had

Kenny Gunderman

Hi, David.

as of try mean, fellows much the of XX% six-year I I’ll plus still some banker that, pretty in deals with the -- terms trying pie and that’s back in disclose track I’m of five-year, in to to XX% yeah, been plus actual the just reference I’ll what plus, XX% a have to And which, to and counterparty participating direct right? some of used So strong of so our opposed conversations by demonstrated deals, funnel run So, processes, record, we a is to terminology. hindsight, of charts nature. proprietary easily in same But we’ve over really proprietary. course, use the

about a to deals. related, that’s versus funnel in we’re larger future leasing be And bolt-on probably a So third deals and fiber companies consistent the would indicates acquiring a third transformative and would leasing buying focus really say, then what I I talked that continues just activity. what say, it’s for outright. third again, about portfolios on we’ve past, continued where with the

the tell the private would things continues tremendous a these capital, portfolio, together enterprise all cells, and So with with space And over willingness variety unique interest pitch, focusing a small driven in at and I a towers. fiber, our be capital, horses. years, of so focused of apples bring demonstrated Uniti we of work including amount course, especially fiber-to-the-home, our we’ve actually macro ways, infrastructure to fiber, of to partnering including that’s those fiber, wireless fever that on with on several amount just funnel. capital, past creative in since the a you there’s

and continue too we David, there take over Mark excited I very results. coming and about can quarters. on. want their But the activity about your see to you’ll I’m comment to think our some specifically add opportunities Windstream on going So don’t to question our

imagine can our to But desire the do You the some results. investors us of need and of we the doing complexity see of that. recognize

in and going be disclosure some some mentioned there’s Mark prepared coming his -- Windstream to remarks, as also in his his on there’s So see. in disclosure result websites that can you

with pleased progress. the We’re

investing We’re they’ve be investing progress and network over harden the program GCI our XX we’re ILEC. particularly And business. working broadband to next kinetic really the own That’s in to five with really years, that’s pleased the the where in been our with business. going years. where the That’s

progress. So we feel really that good about

Mark Wallace

This Dave. Mark. Hi, Okay. is

me add Let comments. to Kenny’s just on

information some recently on their it’s publish did Windstream investor.windstream.com. and website So

can perspective provides includes go about So other information the results. windstream.com their investors their CEO on letter and that some

to that. So encourage you I read

David Barden

ability the Thanks, up, good Mark. rates and could a with kind if up, like, this opportunity bounce deals? news of bad news expectation Uniti or moving follow do is opportunity? for affect capital one How was your kind And inflation moving rates this average I and having of XX-year weighted just a and rising of the and rates to do your of up cost

Kenny Gunderman

with Mark, one. do you start to want that

Mark Wallace

Sure. Yeah.

has minimally Spreads there of continued had say and that to looked I’ll today. rate they those, strong. expect would particularly probably clearly has volatility, haven’t chance but that, to today, that very even I move look, be weeks. to But So, market yield over pretty high I say a I’d there a treasury improved look last has been the this, I’d -- the couple say

the us I a to improve to continue be opportunity materially, that going improving until how that’s on debt certainly the capital, starts debt, really I of having I going continuing our that going our still I -- to we’ve look to think execute of and rate we to to have so you more of cost don’t I cost treasury think opportunity. of for spread terms affect on in us So opportunities forward cost forward it that. is think real to to able volatility to think recently don’t expect seen

David Barden

guys. Appreciate right. All Thanks Great. it.

Operator

the next Brett And our with question Goldman Feldman you. line from of Thank Sachs. comes

Brett Feldman

taking for Thanks Hi. the question.

you the annualized as pipeline the in Windstream. it? $X XX% was be. nine, any potentially the execute uplift insights you with would a lot highlight us give you and slide contracts to And would fiber. I you where what against back you Because it to I billion. through the if of literally imagine to that I those only us what then opportunities, revenues the geographies if fiber curious go of would could is help those those So leasing duration could of have from utilizing quite be also think acquired the

to then if I So I you helpful? your and you the you. some heard was being follow and how competitive amount mentioned you funnel you it? the just think in a revenue convert Mark, of around I talked was EBITDA, could up, sure Thank that, could that’d be quarter able to last hoping a this significant revisit is insights there you’ve about one item one-time give us as impact. non-core I non-recurring conviction if And given quickly wasn’t

Kenny Gunderman

is very it’s and Yeah. funnel hundreds small of Good you as questions. opportunities from ones can ones. so imagine, large of Brett, made to they Kenny. Yeah. The up -- very range

agreements, but these going access, the But weight most be XX-year, the if longer a right? not terms. so the five-year, But so agreements. term XX-year to in XX-year it’s number, selling other We’re are be is bigger not about weighted going nature, answer. XX-year it’s and opportunities And perfect to towards think agreements, those -- -- you that of wholesale towards passive, this words, more to weighted so -- heavily

directionally. your nature, of I competitive about terms In right question the think you’re

get the going definition routes the by So lot cities, a there’s are you and less be more beyond you’re Anytime to of -- competitive almost unique. here. unique NFL routes

I gives the So this known ago, correct what ones we of think think advantage intertwine competitive a acquired the about with I What’s we us is now made more also a you’re acquisition CenturyLink, couple network we’ve that. Lumen. more from including years of -- as when past, in

of on the a from SFN X,XXX route we’ve CableSouth almost TPx. addition built quasi national and fiber from and bought miles our network bought own. We’ve from networks also others, to in We

customers why all the continuing the to we’re us on wholesale trick for the intertwined grow that’s that unique provide that’s and our unique more M&A, proprietary creative networks can the funnel, a solutions really the So customers you create to more And proprietary those basis. have, portfolio carrier to to look the grow of provide to with on opportunity route more side. solutions you you because to tailored the

Brett Feldman

the one-time Got on it. And item.

Mark Wallace

because which sales, of -- equipment was But mostly we as had mind little were they’re sale. that keep about about also non-core effect on margin. classify we those Those lower million equipment very in have $XX revenue. EBITDA, Yeah. It

Brett Feldman

you. Thank

Operator

comes our Simon question Stanley. Morgan Thank line Flannery you. the from next with And of

Simon Flannery

was Windstream talk there. good returns But could about revenue to Thank again Great. grow GCI It’s some attractive the you your evening. just the to concentration. you. Good Windstream. continues the getting of numbers getting we’re also Kenny, with base see

management on just make bifurcation, evolve? What’s more insight is getting that’s talked and the around business So, you about pipeline incentives difference are the think little of the timing color the Mark, time? in thinking cetera. of the now maybe want businesses, impact topic and be the How the any Sprint that us et on you below give mix how of how you past, looking going to past in do to think you’ve if could the amount great? a at least And at any that that here? in to churn, look looking bit versus likely over your you then, about GCI, that’d XX%, I

Kenny Gunderman

questions. Simon. Yeah. Hey, Good

to of We’re number. -- top a added -- with higher about obviously, Windstream and GCI that’s on a revenue be the Windstream the X.X% escalator going that, the grows core at

that disruption increasing. resulting cash very been just confident in that a that like it. bankruptcy. revenue the is point your base to and in before we We never did bankruptcy flow and So the feel during There’s

I have X% our Leasing. we make exactly don’t about closer it, our me comment revenue But your next So of want bifurcation, it through a feel gravy when strategy our parts By terms in growing great we or like just growing very are years to to -- you’re you and four five at years. are that very organic five-year Windstream diverse XX% one-year that. Uniti With growth lot XX% non-Windstream talking -- but go going focused M&A that plan, to mentioned. I our you we And just they’re growth obviously over guidance. look definition, then I And just reinforce, happens, towards and through executing feel just diversification least at business I business think, other in organic on just of strategy When and our could our in about those you the and growth. when said, about the overlay diversifying of and that at to least terms of on almost about good fiber to growth diversification. beyond of tell headway target

continue but on we’re great think business not down, to EBITDA we’re very to number we’ve got our concerned number there, execute of going we that focused and So areas still because and because opportunities we’re about driving on other revenue the growth those. in

Simon Flannery

Okay. Thank you.

Kenny Gunderman

Simon, I am sorry.

Simon Flannery

Yeah.

have churn, expect given churn to much On the that Sprint just and you revenue how you there just these -- specific timings?

Kenny Gunderman

Oh! sprint churn. Yeah. The

maybe revenue two think, I next Dish. the, have opportunity years, million $X I with yeah, than by $X over two the that year, the and a between years, we be somewhere think, and So, offset to that’ll also again, And million million more half recurring to $XX ETL of revenue.

Simon Flannery

Thanks.

Operator

Thank you.

comes question the next of RBC Capital Your Markets. from Lee with line Bora

Bora Lee

questions. the for Thanks taking

sales operate pipeline, pipeline looking color that recognition? First, you’re in sales provide secondly, to just that you’re various from revenue on the you there of data then, you’ve breakdown through assets it little you exploring centers. bit to sales time going retail about a could centers, or talk to data actually takes what you forums as in cycle And you if the terms contract move of some mentioned the think bracket edge leaseback? of exploring about you internally or back initial and could the are Can actually deals stages how for leasing they

Kenny Gunderman

dollar Hey, existing to short longer so XX-month new those upon cycles. is, it’s a the sell it that to question Leasing obviously to answer six-month billion from an customer varies answer are certainly is cycles, funnel Uniti nine-month sales And and sales based on anywhere whether The varies Bora. the it longer your or customer.

who bought building was to we feel many you’d Similar recognize, So, for again that how months, we’ve works. a place moment in or MLAs nine outright, space numerous I get with an time, centers cases. now never all acquire a is my within an that for place some some very in the the many these data because data our are towers. in six new about months, M&A to for those states with I of traverse manner about opportunities deals because facilities comment all edge solutions customers, and weeks, of opportunity in putting our got and buying to portfolio. think, shown way better in back really know found enter overnight respect this to never fiber cases data the of data MLA that names or complicated new at are same looked virtually at us us. we’ve longer by because to us centers, there. centers them. build decided edge some tower you’re in on network With and we’ve be our days large happens to for environment, customers, there that logos, want together that And because for you of we’ve who carrier We bigger We But And XX example, that economical to the that is opportunity edge we’re opportunities. the centers, organically it markets got leasing opportunity to customers months, types towers,

those forth, them up facilities providing to cooling you’re -- so to that’s would to and we power so And would with whether and own we those operate the also certainly respect leasing facilities and extent and others. and

have anchor to on lot and of So that at those more looking our we spending report with we coming quarters. a the customers time are in opportunities may good

Bora Lee

Thank you.

Operator

back now the for would CEO, that to turn for all have remarks. to the And Kenny you. like Gunderman Q&A. Thank closing time over I today we is call any

Kenny Gunderman

of to further joining us updating calls. for you, look We you Group in your and all appreciate all Thank today. Uniti forward Andrew. on future Thank you interest

Operator

today’s gentlemen, may and conference and now participating you Ladies concludes for you disconnect. call. this Thank

Uniti (UNIT) 2 Mar 212020 Q4 Earnings call transcript