UNIT - Earnings call transcript Q2 2022

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Operator

Welcome to Uniti Group's Second Quarter 2022 Conference Call. My name is Daniel and I will be your operator for today. A webcast of this call will be available on the company's website, www.uniti.com, beginning today, 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. The factors that could cause actual results to differ are discussed in the company's filings with the SEC. morning are slides those encouraged the this website, on materials remarks call. you and to company's will posted reference its during The refer to were include this accounting accepted financial will during in also Discussions measures with call principles. that not generally prepared accordance certain non-GAAP to X-K Form of measures directly financial the dated comparable on those Reconciliation be current found report most GAAP can in financial measures the company's today. Executive turn the call to Officer, now Kenny would Chief Gunderman. like to I Uniti over Group's Mr. ahead, go Please Gunderman.

Kenny Gunderman

and you to mission-critical our for everyone virtually on morning X, the our Starting of Good for Slide fiber you. Thank thank customer segments. all accelerate joining. demand continues infrastructure across

year. exceeded be results the prospects second our Our and the we the our enthusiastic second about continued to quarter for for of expectations half

that elevated, XXXX. consolidated highest sales realizing As again We level install announced once of outlook. year also since result raising new of our full we fifth quarter gross our received today we're bookings, while consecutive our a activity

independent uniquely the local businesses As successfully We for from customers second network, country positioned our enabling large broadband our operator further and national benefits is within that favorable mile route to largest remain the also EBITDA infrastructure in strategy of growth. benefit the shared result healthy trends to demonstrates carriers. Uniti fiber the our XXX,XXX connectivity with adjusted industry fiber in AFFO from and

well these infrastructure shared in track economics. to continues Uniti X Slide Turning

anchor cash anchor minimal to in successfully attractive very and yield flow tenants for important then of with and largely Slide of illustrates the our projects. or threefold As high an a anchor drive additional business part accumulative margins customers new today CapEx, and X healthy to yield a from acquires of mix. bookings result, XX%, Uniti effective mid- in that high-single these wireless increase digits. the We're with resulting flow we adding growth. builds lease-up believe our of represents mix yields cash profitable the healthy installs a most long-term way fiber

We business are average of the show monthly years. flow new and nature of remaining the results continue an mix predictable X.X% leading term that contract cash bookings eight to over and of industry majority in churn lease-up in with

non-wholesale outsized elaborate Our enhancement opportunities continued, lease-up the and more relatively wholesale, in AFFO balancing margin focus resulted a business is in anchor growth, has later and which immune economy, in swings on will I in intentional call. that the to

of these fiber, over Uniti business. for national a Turning Uniti, a to successful entry to of routes dollars especially billions XG, billion are of competitors continue. it Uniti approximately we stated, and I've their and broadband years fiber-to-the-tower, haul new as Slide build The capacity, is national to to fixed in in today that ingredient truly Uniti with is MSOs opportunity meaningful X, annually and network provider there to to long-haul fiber provide independent wireless, five We by are for North to of majority fiber-to-the-home, a to approximately providers revenues. customers businesses and are require owned dark data and connect of attractive even to fiber all long U.S. are only an these with number contributing $X solutions our customers, including we to of networks XXX,XXX A encourage created ramps on Increasing an many and having next fiber to the XXXX, through the third Today, would a XX% by satellite metro capitalize large and mix opportunity carriers, carriers, into with Leasing most the $X.X multi-route network fully broadband, network solutions. and fiber Having fiber a in robust available fiber national market. on them. route disparate Uniti We've that America as being reaching approximately customers annual enterprises large the continued an cells, network, market given is international growing markets, unique customers Thus billion hyperscalers, years, of two we networks previously about market. this PoPs. centers, long-haul expect and separately, our with grow million and own acquisitions expected proprietary fueled report national explosion by is economics barrier several to needed small marketed High all have miles Fiber networks. as trend Fiber estimate take both And and although of critical customers consolidated mile Uniti one demand being one parties. the demand strand lease three at network. Leasing

intentionally route to XX,XXX over network We to constructed in order strand continue high our grow of highly lease-up And four years. accretive have that capitalize miles are opportunities. in built the and with on networks fiber fiber past new

a disciplined As of a haul passively them is business of are churn, by today, into and CapEx requirements. our minimal revenue, to high opportunity that attractive our manner. most with little escalators grow managed economics our a dark long-term margin, in of fiber lighting more Since built reminder, no also contracts great network the long we network very routinely to have have

Our providing added national the growth benefit Uniti of terrific potential for network has Fiber. wholesale

our adding up Lit services, economics in expand of more network new Lit achievable. the enterprise we into regions, lease metro national become particular As

to Turning X. Slide

percentage, a Although we bookings less Enterprise install new we have share second expect enterprise levels markets. services activity during than strategy. sales achieved of a in element company quarter, lit new remains trends revenue of lease-up our our continue both these market And sales fiber-based customers we history. were and ever our deploy highest and to existing capture the today in as likely our strong to the and will X% represent further critical and minority represent total always it

XX% quarter from bookings result recurring was consistent a the of up the second year. prior strong As our revenue in activity, enterprise

mentioned X%, a can approximately We Windstream. in years. increase see share Even providing nationwide, markets in As metro nearly in represents substantially an offering XXX terrific backhaul runway share we XX fiber efficient with to I've as XXXX metro we're and map, own before, capital markets with the average the exciting, more several from lit of our to over you for only next settlement us today cells. only margin access which wireless enterprise, approximately services potential markets acquired market even with growth small market these only our recently and long

on beginning just we're opportunity. the to So capitalize

XXX our runway estimate with X% economics with Paul. provides metro without payback periods enterprise strategy contract initial of we and burden half than success opportunities, attractive the of over that wholesale actually of discipline for virtual to the X.X are products. of markets blank these fiber and both proven expansion about term the of metro our and declining Given for of of we network a canvas strand the in beyond. call actively less yields million anchor our now looking markets national these XXXX I'll plus, combined, turn lease-up that total In miles at terrific growth us continue and prioritize XX% the the our lit. cash This With legacy

Paul Bullington

and Leasing morning, increased expected our is second Kenny. and the out this strengthen positioned, performance businesses capital everyone. better our given results. reflected of under push our Despite done you, economic Fiber contract, work Uniti than Uniti perform volatility And Both our markets, quarter sheet along continue Good within declining robust revenues in our our the Uniti remains balance Thank with uncertainty and to long-term well. level to intensity, well have capital maturities. debt we

million quarter. with a outlook the to for of once our in EBITDA. ability of increasing attributed million; of to year, and we revenue are revenues We second Leasing million and of quarter shares As Net million; again, the share shares $X.XX continued common on was $XXX to per common diluted EBITDA midpoint to Uniti reported our of strength start diluted or $XX year. our the of in per for XXXX approximately Uniti I'll $XXX At of of for $X.XX. adjusted adjusted income the consolidated million the execute Please reported AFFO the adjusted X X% Accordingly, common consolidated and half of quarter. share. result of XX% attributable we of adjusted X% margin and our revenues and the $XXX and AFFO $XXX an quarter EBITDA segment from comments prior Slide $XXX second the EBITDA achieved Leasing confidence respectively turn million up

program X, Slide capital positive our progress provide and the investment continues to results growth Uniti. for Turning make

last legacy resulted have valuable network being our fiber, newly commercial and XX,XXX fiber, coming expect continue long-term, its six invested past in years, years. tenant constructed increase parks network. largely own Uniti to miles of fiber Collectively, the of quarter, numbers will improvements with route our over and fiber-to-the-home. in Over billion capital approximately we the each accretive of copper $X fiber investments these fiber. of including value has on increase and continues focused to highly invest in the capital these materially and they Both gradually tenant overbuilt XX% mile

with million During miles capital fiber GCI Uniti investment Uniti's several investments program. Windstream network the route deployed the toward investments approximately markets. across the added growth majority of $XX GCI Leasing to around initiatives relating to X,XXX second own quarter, These different of

GCI program, anniversary of cash investments of to invested approximately capital ultimately our escalator annual be with to X.X% in of and These leases made adding route around yield an $XXX will subject will at As margin. investments rent. making a the annualized today of miles They June XXX% network. the have has X% Windstream, of million the XX, such and $XX we master are strand at under investment. million approximately initial generate XXX,XXX –to-date Uniti one-year result fiber to miles XX,XXX Uniti The nearly added

second wireless around remaining the million base in XX% sites across of Harmoni million the and Capital sold a We higher The $XX CapEx cell that turned backlog revenues known and We gain-on-sale times are of the we adjusted we leasing Advisors, carriers timing to Uniti Southeast adjusted annualized cash Palistar deploy related EBITDA expected million over had annualized of were our tower represents growth consideration X,XXX expense XX installed level achieved our At period. quarter than of the early expect million small At the of $XX.X effects annualized of of Uniti quarter. ownership XXX rate Lit backhaul, Investment lower Uniti in approximately was XX% cash our installs Both of represent EBITDA a Fiber, largely previously during margin excluding net This XXX and million for basis or $XX sites Towers quarter. for million. This within investment U.S. incremental $X.X our sales point $X our due Fiber, XXXX. backhaul, interest and and wireless June termination year few approximately the prior an the adjusted in fees at highest transaction equipment and improvement of fiber, of business Melody revenues to to dark Fiber to our revenues. Uniti. revenues transaction of million first an quarter. run for of segment. We generated of costs. as cell in we total success in during currently sold $X ever quarter, EBITDA within second $XX $XX footprint Lit the the During wireless small tax for from interest dark approximately flows. net remaining included formerly next Palistar These backlog and our this years. fiber, million have we reported

CapEx cover $X XX about revenues. maintenance also million will or our X% Please updated guidance. to I incurred We now turn XXXX of Slide of and

of for other our and unit and costs incurred impact We are revisions today. revising business level guidance related the primarily transaction

outlook capital results future future these herein. transaction-related and market mentioned forward-looking transactions, not acquisitions, excludes could Our other Actual statements. specifically differ costs and from materially

now line are expect segment. million includes Uniti Beginning for each $XXX to expected $XXX Leasing, we $XX the associated success revenues GCI leases million million based than representing outlook include EBITDA and to the rent each straight of cash approximately GCI the the adjusted XXXX with on year full following be the for margins XX%. – Investments. current million master associated with relating lease-up EBITDA better and and Windstream midpoint Revenue respectively adjusted and at of $XX and Investments rent now with adjusted we Our EBITDA

We of which the $XXX success-based at relates CapEx expect estimated million guidance, Windstream to of $XXX midpoint deploy of GCI million Investments. to our

the Fiber incurred of and $XXX to midpoint revenues to Slide expect million XXXX. is X% Uniti revenue that demonstrates When structure that our fiber to cost respectively. EBITDA for the at full our contribute Everstream we adjusting transaction This Turning in May $XXX in XX, southeast and our the margins X% managing for growth million adjusted of adjusted continue EBITDA of on and lease-up continued while existing growth year-over-year dense XXXX executing footprint. strong leverages and success year improving

As which sites fees mentioned, XXXX means peak one-time still be as related churn, year to disconnected being previously related we legacy normal to for T-Mobile the of ETL Sprint I expect Sprint higher than part merger. the

most As to midpoint increase CapEx success-based we to levels do in million XX% the likely will core mid-single-digits realize for our we Fiber some percentage but compared our for still guidance, less at XXXX, $XX expect be from year Fiber by when Uniti to expected in that Uniti $XXX XXXX. still $XX than million XXXX. this Net XXXX. recurring turn full expect at to year rate ETL still fees, of a We million decrease is XXXX to revenue

Slide to Turning XX.

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

common million approximately We weighted segments consolidated $X compensation amounts for be contemplates is year our outstanding $XXX including diluted $XX our for XXXX full average of of approximately million, to business interest be Corporate excluding full XXX shares. to million shares guidance expect SG&A Our expected allocated expense. around year the stock-based still expense million. to

As a presentation. for our our of are reminder, outlook components guidance ranges appendix in the key to included

Turning now to our capital structure.

end of past debt push out the capital to need sheet and position do we external access liquidity through With our a strengthen work couple our to XXXX. have over the of not the done and we've years balance maturities

end, be we $XXX and unrestricted over equivalents the such near-term. As million cash approximately to quarter continue capital capacity. our structure combined approach revolver to of At and in opportunistic managing our had we undrawn cash

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

the to notes excess is indenture leverage to of our of as Board over milestone, in imposed senior the that the net optimal ratio defined our I'll allocation indenture XXrd. this $X.XX dividends had the end quarter at per X.XX On will that, secured to of evaluate stood and on rate policy September going capital income. forward. our stockholders to call times and Board our X.X% XXth which XX% distribute X.XX turn consolidated by X% strategy of continue dividend September governing Xth, July our now payable Our threshold below record at dividend declared in of the light times, back ability Kenny. share restricted With taxable In a

Kenny Gunderman

Thanks, Paul.

downturn, higher some Q&A, to sustained as however, some will costs forecast current to meaningful prepared economic the see we well enterprise or economic as Uniti. broadband. the costs, of to our our majority turning the to which customer in beginning labor to with margins nature noticeable than to address a respect long-term in during respect pegged recession potential is likely given more Further, to any With or or areas. proven current changes We're an nature a believe elevated wholesale has contracts, have revenue intensity. resilient that Before base escalators to downturns. we're capital forecasted said, at I'd some critical for With CPI. implications the and vast core expect for With material This of like don't likelihood backdrop a interest business of the impact least time. no rate recession we little of environment mission for and

business the debt. finance to downturn. M&A to interest the any Given high well challenges economic performed capital exceptionally that potential our created during depths pandemic, or level at we of would expect near-term seeking to similar during The issuers execute environment for has rate refinance a or market yield elevated recession

Fortunately no near-term for Uniti, maturities. we have significant

refinancing MLA's. continue ability ability on in believe average our we over currently confident $X with term billion and dark to have our of be relates X.X backdrop, of contract business. to investment our remain markets. but have to macroeconomic We be of passively Despite normalized remaining we execute in revenue under debt, value to this M&A better patient. potential of we strategic the it could options, execution in prioritize in our majority To The is the we intrinsic core achieved the As revenue years. or fiber be clear managed in this triple-net form more

in If the costs dividend of rich $X.X investment. with generated think to results cash since times substantial part This our de level leverage flow business expect As is we cash X.X cumulative size our resulting an and which of long-term. a flow doubling underappreciated than the we mid- free billion of XXXX, associated trajectory maintain this this business the revenue current times to approximately a after We X.X especially by more our operating is have dividends. and minimis, de-leveraging result, fiber over non-Windstream approximate net to leads XXXX. in to annual to by story, capital

potential – is profitable representing some time. Our network highly growth underutilized presenting for

the capital great an including net high more is to long XXX and metro business core cash lighting expanding With of in even deeper and MLA's dividend haul our rich existing debt. lieu invest said, paying our optionality our pay provide increasing in unique markets. business yielding routes from current approximately XXXX. of that into down years to accelerating This intensity lease and many level XX% by fiber, indicative to high decline approximately operating We expect XX% of dark up of decline leverage our margin, in

strong in Uniti believe is for no organic appears business growth we well regardless tailwinds. opportunity In my value allocation and summary, material given runway with our upon remarks, With that our resistant M&A. a As capital of to positioned ready operator take with fruitful, questions. long a recession reliance especially I industry earlier now for and creation terrific mentioned policy, we're

Operator

Our Cowen. first question with Williams comes from Gregory

Your line now open. is

Gregory Williams

taking Thanks my questions. Great. for

in the you're sustainability that second the out can M&A this here then gross and coming does for solid how install think the Thanks of just I that finally I is on weather environment. mean and ability this waiting on one to characterize sort Obviously think contractors solid is the think the more environment, First the your the away gross noted, out for and on of question Is your still of about How I get workforce? we're execution appetite, as impressive any of installs. better And installs? so function you deals today. Does the see more I to chipping and would a and hire at M&A translate pandemic. just something there better And normalized the you you're didn't a transformative your table? backlog.

Kenny Gunderman

Greg. mean, it's if quarters One elevated On a installs, starting installs up obviously bookings see had I'd we've I result bookings three things. catch precede and now you starting installs just say will. so just to, of to several you're for

half first I the expected. of was active year we active very Secondly, probably with than more dish which think

prepared manage we been actively that. get frankly. contributor. we've about labor was That's the able that to of be contract out labor, fortunately we in to important reasons challenge staff a to time remarks. it continues question full And need the whether positions labor, or an we it But our called be and one So your it to

we're for I So be us. not going that's confident a that to think bottleneck

to of for going worth there with level but had and a M&A to than We're this and some installs be at well it bookings that's this level say remarks. our patient just we have. of opportunistic said, to costs always more respect forward, to going we us, be continue like not elevated With prepared we associated in like bearing. Although, much could what cost

will continue very the we very to and in trends having Uniti be both think are for the and in We we're the fruitful the favorable in future. that believe industry conversations

Gregory Williams

Got it. Thank you.

Operator

Rollins from you. Michael Citi. question comes And Thank next our with

Your line is open. now

Michael Rollins

picked morning. guidance. questions: a revenue first little bit, EBITDA AFFO up and on but midpoints Thanks, looks unchanged. and good Two The the

opportunity unpack Uniti a guide? income just bit with about And deliver to of talked more pluses over to cash for produce. you. net minuses any the and could time from you you that that that de-lever transactions certain investors is the Thank debt little the transition the If target a range? the be financial AFFO to case statement in aspiring then of in that the business to can secondly, Should larger absence the base transformative that

Paul Bullington

your Michael Thanks Paul. is Yes. for much this Hey, so question.

some in to EBITDA AFFO terms cash, adjusted between cash differences EBITDA from and translating of from revenue Just and the to quarters. revenue particularly

think we like. that's detail you'd I there. difference But minor non-cash you're contributor some more can the couple – that other difference to the and that, just between So the if primary and Michael, revenue the you things, revenue cash think seeing that a differences cash, is get you'd I There's on if major there.

Michael Rollins

So just too on that. quickly follow-up

So deferred straight that revenue over benefit the line cash is the revenue. and converts or time in into short-term

not AFFO. So interest getting the statement, other that, but just the a you're in like curious the versus some if contributors that. it in change items like more if was income items offsetting there's therefore statement other to cash or was income I or benefit

Paul Bullington

Yes.

that cash looking getting differences too do line at I into come without too those much revenue. a think – detail there, of straight think when lot you're I much in

right I off coming differences on there think old that those contracts in and as with you exactly you're new role contracts. have and or

you're right target there. on the that's think think so I largest I contributor, So

Kenny Gunderman

use times Kenny. that's really business dividend under we we I invest, relative optionality likely What outlook cash And and or of to think dividend X.X seeing do would chose that question X.X Michael, the higher and I combination will pay doubt we're in to, sheet leverage term simply And that's trends to some probably the about the times business. it’s those that. by is respect we the to the trying demonstrate get either provided. be structure given invest the especially business, liquidity. were an to optimal great to for we way capital If your to ability have to industry with or ever to more more up longer With the leveraged some either for because our also And a you we I down bolt-on in pay the some balance trends that sets that to the opportunistic things. our we're combination. for M&A think at, in doing of or better place to deleverage or a that seeing us more more

and to sheet well, we performing the to to be that's you have So And always for this always have have and a that good obviously liquidity, certainly patient and be base case, order those M&A, I a it's runway a have we're opportunistic with in. M&A all think in factor you patient important good that would has have I ability respect have to mean, especially to this I M&A base think things. being us balance the been doing in – case. good for to business the is and transformative and

Michael Rollins

Thanks.

Operator

question our And Louthan comes from you. Frank Thank James. next with Raymond

Your line open. now is

Frank Louthan

passed, get realistic you. And you percentage those forward? penetration what's Thank you your doing from? what you slides, to In what talked that that of then to Great. the try current buildings penetration? XXX,XXX increase are are about business And targets your going to

Kenny Gunderman

it's really useful to the are with and Hey, both data accessible, of We near Frank, our them and a that I work lot network sources and pinpoint all of that's say where network. our opportunities outside do point. would own

we list for with that industry out to that's list the by the on a share our way customers, there see. and anything So it's

customers call potential So to we when there's us buildings. and see opportunities that, and therefore in want customers those

it And real majority market executing some respect would we're with on. market X%. of number vast we the XX% the to where we've majority So got and metro market maybe look in below but share, markets we're at well we're that – markets, our approaching that's say a I by share, vast

the a share to opportunity taker and share an continue near-term. So about we just forward taking we're – continue have feel in going really that the excited really insurgent,

Frank Louthan

you talking of when And leases customers great. go new with the some right, similar you're players renewing other that? of infrastructure up. with gone to All inflation some having some their seeing escalators raising or conversations up, or Are any has AO’s about compensate for escalators

Kenny Gunderman

more Yes and been include even contracts Escalators dark fiber can life. in But our current to whenever especially always long absolutely. important. have have times, we and long-term escalators that market such the important a current are

sure So, more to mentioned can we're going on our forward. of have year-over-year. rates, it making inflationary are yes, escalators escalators CPI, putting valuable of those those are some an comments, Kenny and contracts increase is protect our from had as but continue revenue the in pressures fixed of some focus that's even kind our stream And that isolate like in we to we've which have, do such when escalators particularly CPI tied time XXXX the

increased a sure. and whenever this been to So that's built-in in that time we for have a we'll an on nice continue thing focus to those put for us can like

Frank Louthan

And turns great. you off great. helpful. my be right, mic time, this sure can really that'd All if operator make That's the

Operator

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

Your line is now open.

David Barden

quieted your there so please. Hey thanks much. are sure Frank, guys, make Hey down dogs

three got I guess questions. I guys, So

So contributed termination be remind thinking remarks. in we kind that us from the for the can Paul, you about? think just left should T-Mobile the merger that and of I that you what income first to is could the you what the prepared XXXX XXXX then over be expecting mentioned one XQ? one you're And timers think

be, first it ago, mid seven was a would've That coupon quarter guess window And help us timetable and think decision that The policy? barrier, type is either refinance then could it your a seven my been generation the to second, would a you started and criteria kind quarter about that cash give there through in to a would there a inform that payout covenant of it. eight us revisiting some six-ish you or now to execution last be you a dividend broken debt, question call Kenny, XXXX. guess, or coupon have guys refinance flow the I would highest percent I window, leverage of criteria

north it's probably of Now seven.

So you a is and you're least reason. your one access. reason this didn't not is arbitration the speculation Windstream back dispute the term presumably that why XXXX markets renewal that the coming is do the about around that for making markets capital impacting to And with decision

wondering So you much. too, please. topic you of was revisit so kind if I could that Thank

Paul Bullington

It’s I'll All right. your David. first Paul, take question. Thanks,

So going for while mentioning been Sprint in a is peak that the yes, churn XXXX. we've to

So definitely on financials this an the year. having it's impact

comments expect So more you a remarks in less said, in XXXX, than provide my our we're for that bit little less peak that ETLs since this year. we we on million XXXX like in $XX million in about this And be year. wanted is XXXX to I than to guys time. it color I or $XX said is, be to what expecting the Like

So with million look nonrecurring is we're the is if the that that of to you projecting Uniti core that UF a vast the breakdown, About related and majority our can Fiber of year associated Sprint revenue, page you at there at see $XX this decoms. ETLs expected to $XX of XXXX. for million be is

be that amount in close kind So, of cut half. to would really

second expectations. quarter. If the number you look out the I know towards for XXXX for don't our exact

ETLs a got but get I that I've the do No, you about standpoint. asked here. was the quarter have you later, $X alone I a to to contributor think we number from second revenue million – quarter. that, David the contribution it's can definitely the It

David Barden

Great.

Paul Bullington

dividend, the other board respect questions decision. with on obviously David, that's your a level And two to

continue parameters in and I with of don't months, But the certainly get had ahead a at So discussion that have we'll to the them. quarters. around robust coming last con put any week I Board meeting to that Board the it about to want

taxable XX% most income be with paying There tax XXX%. REITs certainly we're would for us. now There pay that. is right of think savings a associated I

you last those not lot they lever we refinance so before certainly that that application, have for that any that And flexibility about so that I refinance With the won't that choose to into we that's you're thinking renewal host capital need some that with with of covenant an the put actively that all ahead nice large But into got ones a can your there or to beyond don't incremental But go concern mentioned, the is opportunities. And including We consideration but go want a discuss aware our around did have to. Board you to us. considered, was we've sure not it manage way. and that. they for pull of I'm we your that on assure really actively conclusion. of. I I advisors, a the but And factors put respect debt if of maturities. question, don't great a agree in finance the runway any issue cleared to to it's get guardrails any and of starters, that, whole I financing

seeing in public took we but some In to of have fact, that there. And this are spat, you the ways I in caused as choose put we fact lot disclosure a disclosure. didn't comfort and creditors us to that lenders, know, think actually our investors out

terms our cash gives growth probably in to feel actually, any going and about look with the there. a trajectory it's respect liquidity us concerns at term continue very end fueling term the opposite the longer remarks think to longer the our back the to of your And how balance we flow, about business, prepared terrific So the of I that runway opportunities speculation the in sheet generating business. in just confident

David Barden

Appreciate Thanks, it. Great. Paul. right. All Kenny. Thanks,

Kenny Gunderman

problem. No

Operator

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

open. now is line Your

Simon Flannery

you give just sense are. of Paul trends a Thank the much. Good what you back could Great. recurring very coming perhaps us the revenue to morning. fiber,

yesterday pretty I And that seeing part are of us from big now? looked What your their on I year, how a know update DISH right you an think to has XXXX. this continuing your model guidance. any gave this towers call DISH quarter? They June that their expand sense of optimism to about for but hit for to XXXX stable suggests been XX,XXX it's

Kenny about starting highlight you more So of talked the of being patient non-Windstream to separation of with streams. about to you've And is also some markets, value a that and flow then your through talked the XXXX to cash exploring a is potentially revenue or that flow factor? M&A,

could us thoughts your update there? So you you. Thank on

Paul Bullington

started. us get I'll Simon Sure.

above contribution mentioned that projections as a than that, Recurring made our was and to second Kenny meaningful part quarter. contribution In revenue. bit bit better revenue as even growth a but the little in recurring for terms is recurring from to of a of DISH, came only expected little expected revenue DISH the revenue, not contribution really And that.

So, we're mid-single growth continuing expect digit to the in recurring revenue.

year-over-year. Some revenue mention even double grew enterprise I Kenny faster. recurring pieces of it digits, growing are think, our XX%,

really that And like the nice building business, my we in into the put revenue in our sort over look which on of next we what said, focus growth expect is continue. we growth recurring as we're to majority year, of on our comments, I So long-term. out same seeing

Installs the had that. second they part well. as the of our we the record part business both business a wireless pleased quarter, very been. our and have So enterprise in ever with quarter, highest In were of

monthly So, MRR, number. installs is revenue an recurring

revenue recurring continues the that's to churn to and business So, remain coming all about low. on

think of low of the backdoor of outflow continues industry performance. leading, the really of So, business we our recurring for the out revenue in to churn terms kind remain

nice So see see there continuing. those we we and trends trends

Kenny Gunderman

stock Simon question, we is and associated last our our of discount because look, with your businesses part developing our business. reason Windstream on focused down the a to plan by a it's conglomerate there we separate So weighed the believe on

continue those that we multiples we to related market market at you those this look And so reinforce including important multiples obviously is the look businesses, and multiples continue multiples related I mean, that, mean, part And fiber-to-the-home Windstream I an to last fiber-to-the-home to that, when by and when look when the And the private to at at look they [indiscernible] year, in industry, at businesses, we that business of in provider. when trends quarter private fiber-to-the-home continue to And view. our a that by improve. view.

the where for fiber, that unlocking And that's multiples where of approaching times transactions smart were times, trends and XX associated our bread And There emboldened the to about seen part those quarter well couple value. another were north multiples EBITDA butter, so, the industry business. during be and announced businesses, that's in multiples XX which the our of patient and the private it's is were of EBITDA core commercial We've important us if operating – elevate. with area those we're feel by with respect in a EBITDA. also multiple fact, market to and

mostly So, public we putting feel like that private valuations intrinsic the but markets, be whether private our appropriate piece the are parts. upon or it

to important and that value in unlock event, is opportunities. for assets there And able be result, shareholders believe M&A the those it's we so, transformative as a separate our to

least And to unless so M&A separate wouldn't I it the in contemplating circle or at were question, transaction, think maybe we what we're coming today. full that's assets a your our transformative of context

Simon Flannery

you next Great. that on when DISH Thank start And really several more quarters scaling? anything to you. the expect over as

Kenny Gunderman

know nature more the of Simon. in X the more year. help in FCC. Look, were Tier Yes, that that Uniti expected were missed the we sorry, X-ish first And one. I more in the than think we active of But date I DISH with lot you candidly, the their markets. they were Tier hit as markets. them to generally targeting a first markets of was we're was And half not they mean, targeted most

next in think to actually know – to opportunities targeted more markets. they now we there so are date midyear for there is of to more on are be our the And second we And be going year. moving going us

of the be very do think are going half year, busy. next of the half as And result, a this first in we to so, year and probably particular second

Simon Flannery

Great. Thanks a lot.

Kenny Gunderman

Sure.

Operator

to I you. Kenny conference Gunderman back to would the turn now for Thank closing like remarks.

Kenny Gunderman

Uniti updating appreciate [indiscernible]. Thank We Group forward your to interest further in and you you. look

Operator

Thank concludes This conference you participating. call. for today's

You may disconnect. now

Uniti (UNIT) 4 Aug 222022 Q2 Earnings call transcript