- Earnings call transcript Q3 2022

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Operator

Welcome to Uniti Group's Third Quarter 2022 Conference Call. My name is Gigi 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. At this time, all participants are in a listen-only mode. [Operator Instructions] Forward-looking statements disclaimer. 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 morning materials company's on website, The you during the prepared Accounting also this certain financial not call Principles. were Accepted Generally will include in during with Discussions that accordance measures to Form the can measures directly today. Reconciliation comparable the measures of financial those financial most be company's GAAP non-GAAP current X-K in found report on dated I would like turn Officer, Executive to the call now Group's Chief Uniti to Gunderman. Kenny over Please go ahead, Mr. Gunderman.

Kenny Gunderman

Good slide Starting on morning three. you. everyone. Thank

demand achieved mission-critical grow. we for continues to Our bookings, sixth new new our infrastructure norm. our once results for the the quarter fiber We third quarter consider the which were sales of consecutive now elevated as again strong

had with that customers, profitable second and executing anchor for to importantly, less reiterate, country in lease-up continues Uniti it becoming another that time on additional in the in churn with X.X% customers can fiber mean X% strong also This largest XXX,XXX to cumulative gross and installs days. runway be is with a and infrastructure a route of range and long quarter Consistent strategy independent well. sound operator lease-up to between above strategy infrastructure and bookings XX%. focus to cash resulted leasing buying deliver up and demonstrate fiber cash building industry-leading and the miles along the As then monthly strategy growth. our has XX% we're anchor yield yields we of mission-critical balanced driving quickly install our our of turned To that XXX than activity on

cash adding on building our additional new than customers and yield along business in track intentional infrastructure fiber Uniti successfully As that XX%, balancing these to anchor immune majority CapEx, then our continue that the wireless the focus of high relatively five and AFFO a and wholesale, resulting lease-up resulted yield very from a nature in well four margins slide for a economy. today largely demonstrates the more to anchor minimal enhancement, shared bookings lease-up projects. these remains be flow cumulative with non-wholesale in tenants increase on of continues with of economics. has We're Slide growth opportunities outsized margin threefold to swings illustrates and and new in

selectively slide to Today, including all annual over and billion international several capacity are routes large grow and MSOs the centers dark North data to High next $X.X hyperscalers, is about in XX% to fiber lighting and an anchor by years. pops. long-haul and grow markets, revenue approximately A is discipline America Turning their routes opportunity services, several six. over services is and years. is growing wave capitalize more approximately component today annual provide and long-haul $X X% the same opportunity growing We're a the of in expected demand America strategy our which wavelength while North lease-up to needed of wireless connect customers, expected enterprises billion next on maintaining disparate market carriers, represent on our carriers, economics. to annually wholesale

dollars minimal national build and network. services yields there years. it growth anchor ability to national virtually years being over them. U.S. approximately services independent with teens today, Having a of margin, business Tampa advantage our a especially that addition Uniti, resulting in only long-haul no routinely cash deploy with networks next unique footprint. contracts our This we that long-term markets to new low route. very billions network a two churn, announced are CapEx meaningful to recently attractive Southeast few economics we the are routes previously managed two wave to national many multiple have announced providers We once key competition. leased in will in services built national minimal have with terabit fiber national of and example, them to own clear in five competitive opportunity escalators present revenue, estimate of Uniti the of a are into of fiber Uniti cash spectrum with XX%, with high line new The The given that combined and Miami networks an wholesale For offer Thus, one sight and truly is requirements. and for our mid yield wavelength up our a to would to take dark owned passively is

Before wireless turning briefly carriers. lease-up way terrific to business, backhaul for attractive enterprise comment to or like backhaul. to lit new build wireless our with network I'd a is yields on Lit network existing

of shorter fiber, on pricing there's that contract the typically dark are pressure and lengths However, some returns. than

As as wireless with offsetting such, business discounts risk lease-up from and upselling carriers has bandwidth. considered Uniti managing risk reterm strategic manage the and on imperative, return that by the we always additional a networks,

existing provide with actively wireless X,XXX portfolio our visibility years of these As of additional wireless of increased upgrade with forward. we carriers remaining. backhaul We're net for Together, and reterm to X.X and as we're customers, and a to an XX-gig, approximately to extending in our lit today, our the example going eight blended these term increase an sites earnings that XX% two we're over price we of another backhaul focus, recently our from represent stability agreements retermed a backhaul remaining sites. this X,XXX of major sites resulting contract lit working approximately years one lit announcing major XX%

slide to turning Now seven.

further total it lease-up represent represent always percentage, element a sales today again sales trends of were third minority new than bookings capture new metro very share enterprise Although, strong. and both strategy. critical markets. will revenue market these existing of expect in we our and we less our during a quarter X% remains continue activity and likely our as And Enterprise the installed to

network X revenue consistently enterprise we XXX offering type years, share expand for And X%. example XX% of bookings share for fiber a already acquired with cash Uniti activity, of and most market Alabama an XX% only we an which very strong only in These XXth affluent our how our growth Slide will with own result result the is attractive our network fiber. a capital, resulting exciting, U.S. of greenfield As which cumulative even robust quarter. lit there miles with with in enterprise originally largest million to less very but investments on capital entered metro Equally was And network is in backhaul and and XXXX metropolitan providers and only to reach Homewood before, expand during of with have these as an additional market growth of can where we're the place. mentioned our represents still Uniti, XXXX of nationwide, we've increase and for Birmingham despite like in services. investments share, Tier Birmingham. economics IRRs small XX%. enterprise markets currently extensive markets in nearly recurring It's in dense to area a approximately cells. we're recently already the existing market, These and of an enterprise, than margin-efficient customers. not terrific executing approximately eight up only We is XXX potential metro XX,XXX attractive available markets area in largest fiber $X are statistical settlement yields in of wireless extensive Today, is our Windstream. large build. we strand almost attractive we market our an over the fiber neighborhood the of

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

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

Paul Bullington

and everyone. Thank good you, Kenny morning,

the our We EBITDA. consolidated again quarter with install with in pleased are and better-than-expected during adjusted booking robust levels line and performed revenue businesses driving once how

given Uniti our intensity revenue, at our strengthen quarter, While balance both work under debt macroeconomic Fiber positioned non-recurring contract, the and to lower strong. remains level the and during have declining revenue Uniti at than capital out Leasing long-term expected weather current maturities. to of done was conditions, we our sheet recurring Uniti revenues our Fiber push well robust and Uniti was

As million. million X% or At $X.XX goodwill prior share, an million, year. result our $XXX of XX% loss increase rate expectations which of diluted to margin consolidated of charge third common AFFO of nine, per Leasing, turn million, quarter. the we Please million XXXX our revenues outlook and of and the we the related Uniti was fourth segment interest adjusted the for to adjusted of segment macro consolidated strength to quarter a for midpoint reported the which quarter a for and EBITDA. our of are million with increasing for in quarter, slide Fiber I'll impairment Leasing the revenue of up driven million, $XXX Net Uniti and the that revenues to includes Accordingly, from $XXX common on $XXX quarter. approximately EBITDA of share our reported EBITDA attributable common adjusted diluted AFFO both EBITDA comments by and of an of was consolidated Uniti were adjusted shares $XXX $X.XX. $XXX We environment. per the attributed $XXX shares start achieved

Turning slide to XX.

to continues growth investment positive program Our results for provide capital Uniti.

will the in including our Collectively, its capital on billion fiber miles highly legacy Over copper expectation has most, of of years, constructed focused these continues by not will and investments with fiber. XXXX. fiber six date fiber-to-the-home. Windstream tenant in network and in on commercial utilize parks the long-term resulted fiber capital value-accretive expect that invest XX,XXX the network. $X with if last-mile Uniti network legacy being to all, copper approximately half invested of route the we largely our tenant our of nearly GCI that made overbuilt improvements in fiber, and valuable of be investments past have to own XX% the Based fiber newly program, overbuilt

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

in to of network. lit miles and under $XX rent million of third employee of escalator we across Windstream, These in made small backhaul, incremental represents lit $X years. carriers X,XXX dark revenues. Southeast that and reported of of factors, E-Rate those $XX impact million fiber XXX% subject one-year The $XXX to over Uniti of $XX.X result we turned turnover a EBITDA million. resulting XXth, million fiber the overall annualized installs adjusted Uniti route including X% delivery the network. were cell approximately of and has September currently our This have at to leases to revenues XXX,XXX backlog the delays are fiber backlog add of and the ultimately As our we small to Uniti and almost modest annual from timing date wireless annualized sales equipment lower adding next we non-recurring during annualized of Revenues making sites These million anniversary Fiber, approximately expect yield Fiber, program master our cash within an to footprint XXX nearly increase a third approximately At the several They around strand our expected investments backhaul, capital our and with quarter. of for and revenues around invested an from million initial GCI to remaining key over will value miles quarter. deploy have such wireless date during X.X% Group. will sites dark due our the of We At margin. lower few the at than sales, installs $XX Uniti cell investments be generate added the investment. and XX,XXX

million However, expected quarter. combined margin higher in adjusted success-based the low than given EBITDA third costs. the equipment Uniti was than $XX was of with nature CapEx slightly sales Fiber lower net expected the

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

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

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

of of Windstream year $XX still associated which to Our estimated current million outlook million midpoint, and Uniti investments. at segment. investments. continued GCI the rent Leasing, XXXX $XX margins million revenues respectively, CapEx each million, rent $XXX with at of and adjusted include Revenue and million now includes success, related EBITDA and $XXX to lease-up XX%. with straight-line strong of leases EBITDA we the associated success-based GCI the $XXX each for adjusted guidance, to Beginning relates midpoint approximately based cash with the $XXX GCI of We full be the representing Windstream the following on for expect to million investments adjusted our EBITDA deploy and our master expect

Uniti slide to revenue the million impacting now We our non-recurring midpoint, I factors that the to are XX. at of Turning $XXX expect contribute earlier mentioned revenue. given Fiber

full revenue on However, and recurring outlook we year continue of install to see. midpoint bookings we strong activity are the increasing our the

leverages full non-recurring When costs. outlook Everstream EBITDA cost dense on respectively. a adjusted XXXX, of our for growth that million and for remains lower improving our growth strong lower year-over-year that Southeast adjusted while adjusting continued transaction This year and existing EBITDA May the the revenue and offset recurring X% $XXX revenue fiber higher is by executing in X%, managing Our lease-up in with margins, occurred footprint. and success our revenue structure demonstrates

As to churn. last we Sprint expect be year related I quarter, mentioned XXXX the peak for

what to $XX reminder, we most ETL expect XXXX, than to as XXXX. in some we million likely turn less $XX million recognized As to fees, a still we realize but

compared at Fiber success-based still full guidance, from million $XXX XX% Net Uniti a XXXX increase Fiber expect CapEx for XXXX. is year that single will midpoint to also recurring the revenue We expected our by our a be mid in at when digit levels for Uniti rate core of percentage year decrease this XXXX. to

slide to Turning XX.

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

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

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

Turning now structure. to our capital

million had current cash to capacity. will quarter-end, our and undrawn the near-term. approximately cash equivalents be Given rate the and capital structure $XXX over we and At approach macroeconomic we revolver opportunistic combined of in environment, managing interest continue to unrestricted our

times of at debt share based stood On dividend to quarter Kenny. November With EBITDA. X.XX that, now record XX, on last $X.XX XX. annualized Board payable a to of over net ratio I'll December to declared our back turn per on call adjusted the leverage X, Our December stockholders

Kenny Gunderman

Thanks Paul.

of the given likely Further, economic We impact in revenue our nature continue our noticeable vast long-term core little to the see business wholesale mission-critical downturn no believe from broadband. of will with any that contracts. to is nature majority

rate, maturities. XX% is we Lastly, significant debt our have no and of fixed near-term

and relates to be potential we to ability M&A, it the refinancing as have So patient. debt

with lease build a infrastructure cash lease-up, combined XXXX then to and in since infrastructure path anchor to clear XX% resulting acquire has to quality communications yields strategy that plus. and mission-critical been of customers Our

priority than over our and and platform. is While eight backdrop. capital term in our rather seeing remaining the was fiber returns we builds building average early managed in fiber and as focused established focused initial both of investments majority We years, strategy of under passively markets the more much this with building on believe approximately paying an revenue form challenging working, economic of our dark or now the more in on we're off. revenue given national We greenfield acquiring attractive of in We're contract our the net $X currently is are The M&A MLAs. years. billion triple have

X.X As expect generated approximately a to mid result, free of revenue investment. to the flow if level fiber XXXX, cumulative business. and substantial doubling By in is which business of our we operating net to size a billion we deleveraging, costs $X.X in with results cash associated trajectory the leverage capital and leads dividend this maintain long-term. X.X flow-rich of very the predictable, more times cash our to have current than approximate over annual resulting This

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

We lease-up, fruitful, said, our our policy, approximately questions. operator, expect take XXXX to ready lieu even our capital business our accelerating existing increasing and our debt. fiber, deeper of great MLAs an especially Regardless X% industry high business to appears long-haul we're current many tailwinds. of dividend including leverage Session allocation for cash that, margin our dark intensity yielding high net is from invest to organic years to of pay Question-and-Answer capital the XXX rich paying more optionality and expanding growth in given runway metro in now decline down core level provide long XX% strong operating and unique lighting markets. to of that indicative into and in and XX% With of routes by and With

Operator

question David Bank from first America. of Barden from line of Our Instructions] the [Operator comes

David Barden

you've X% you your sit -- now work dollar one, are sale-leaseback you're the but day to part capital a you an return it. of bit structure. question. about got kind the yielding Thanks Can guys. XX%. the where to with a generates capital little background. can we every Presumably, business talk Hey, that's of your X% for taking where Appreciate Kenny, putting banking bonds cheapest incremental

going Your be more to expensive. equity is

So the business. you an doable the the second How and do unlock inevitable that business that higher that's yield Again, transaction at your cost do generating we just itself. current question about lot of is that thesis? of the kind to transformational going still than How fiber Is on then that resolving where the this you're capital climate, margin the are And this rates guys investable fiber value they the is there that convince in as out in thing think a market done? the recession coming? see going you business. in with the a that's practically can be people that

Kenny Gunderman

or Good five you generally, first in right -- David. the the mean, about your On whether I Yeah. any mentioned, X% our other yields, you're said, what part morning, sale-leasebacks anchor greenfield it's in X%. range, think builds question, in agreements are you to generally anchor or XX% of I type -- the right. you're as

through end that's many for range. So are result. our been -- tracking yields north, XX% That's to page importantly, consistently of the our a tracking getting of But cash materials in is at lease-up, part the will, we where you years, you're that. sticking kind on And then of kind second as true We're yields. that XX% above if higher well of range. that our at

returning that are yields. on along day and And aggregate But CapEx that different XX%-plus the of are frankly, of attractive, every business core from and at dashboard maturity higher. our different XX% yields are see projects generated our way. stages a an I very they're yields being is those there going yeah, So are basis,

One you're the those high to terms With think still types in on on changing. that we're there. two, agree rate I will. the but business, quarter-to-quarter get of single three is add criticism temporarily don't at your position, question, with and bank play-by-play respect But see constructive. in mode bunker that I So, old to those want to different this some from there's the digits, there, that. with out what double-digits second comfortably And types just go types of really our these of It's nothing, I trying interest back of and are that core M&A. hurdling of away to into that environments, I'll we're in put do do with low if just you yields you, there's these respect high looking environment, a be could not or look, counterparties fetal out no

bottom and savvy to despite have put lot And counterparties are digital and But that. looking are and capital much frankly, to theaters, equity infrastructure. parties is no lot other out who capital -- sellers I with who in be forced whether thirdly, not is backdrop, more work, on we looking buyers, be to private. for the make a or take The have. take look who lot a them parties forced sitting engaging never to mistake, advantage. of public debt we're advantage of frankly, sidelines like a And that And who securities the earmarked be are people there call market there capital is or there of it of just

there's you're a an so, transactions. There to some savvy, And bespoke look counterparties engage more this opportunity creative opportunity in as seeing or type out sophisticated at in huge structures more And who we a ago, large are like the of situations spoke markets. themselves And the one transaction days saw public of the debt for happen. a financing upon and relying opposed deal to a few funds there. deals those as basically did large

look, there. opportunities are So out

for of part I think to hopefully, the history that DNA. to in on -- in proven mergers. M&A execute -- we've fairway never We've transactions, thinks creative much we've very to executed patient a always we're and critical, strongly on results very also having we And we're not creating think be We outcome. proven executing is going ability able generating, because term. our terrific being Board especially affords But that and a in or we've thing be cash value-accretive every platform, be is type we acquisitions, in strongly And the a for executed going one and the think near-term a business a every value to is almost the the it's with be seller more private execution either doing subpar that us, and on I what M&A or returns. patient that's in our to it M&A day, down business in a that the valued, think, market. forced ability highly also that never that's day, forced our on think us we're buyer longer be could

David Barden

Thanks Kenny. It make sense.

Operator

Thank you. One moment for our next question.

Our from next line Gregory question the comes from of Williams Cowen.

Gregory Williams

Great. Thanks for questions. taking the

first or Kenny, to helpful. in. you per mentioned, quarter would a about expansion you per markets Just be on sort eventually how year, the have cadence that markets you'd Do expand you're one, XXX of many

Second question inflation seeing just if on or you're any concerns supply business. the labor is

heard wondering or days, a bit. talk coming enablement pass their the fiber day up down the is particularly to to space. you're Thanks. home the before home per last the in two homes. broadly slowing Windstream cost Lumen little so their we that the maybe I'm I about if And think, Just fabric more on that, seeing consolidated, in

Kenny Gunderman

in let the on to actively the the comment of yet terms out first markets of don't of Greg. ready the part some at morning, have cadence. we're all But our something and we're looking question. part, Good roll prioritizing. I I'll of on yeah, Paul metro second

part right we've and of reason market, market, for with at I a picked there. some our market in probably this the X lot as and a competition investment since investment Birmingham have in chipping just anchor showed And in existing still down case, five XXXX now one at little enterprise these away more years, markets. or in an I -- we'll of And that. we we're award, share fruit for those the got color we've and low-hanging there of a is opportunities X%. the reality opportunity characterize us. for what it's markets, been four not that's market terrific think a We've fairway Tier being been and But only of that in February, on the

onion, But hundred than dollars we So, able of rest the neighborhood you being expand back $X is new that's success-based that thousand couple less into the the is the mentioned backbone to million. all and to customers. Homewood peel when of -- just a the spending reality then really expand to for up light it's

to incremental high on So yielding on back of the -- are OpEx, and just cetera. It's returns already et earlier a returns the because people operations lot We've salespeople, we there. question, the very ground people, that without have capital terrific. got

brand markets. all near-term So, the least, say, markets market out are expanding near-term on the expansion to that in at to as building for us existing opposed opportunities into new

three We have a any robust to provider in but providing fiber We're for four or wholesale services, we're offering network today, we're enterprise additional Little carriers. not Rock, example. wholesale here. And a

nice returns some other that the meantime, we're And so, really or footprint. markets on while we're focusing expand to these through fiber wholesale just of enterprise in on more of the getting dark metro Southeastern and sales start markets eventually we'll general. In

each is labor staffed and reps quota-bearing to is to exceeding fully enterprise and crews feeling Uniti some finding even businesses reps quota-bearing that reality I keep number mean, of our generally all are but the something on targets our said, order real -- of compared our think our XX% like Uniti side, targets plan. we've down supply we down. or number our the And Fiber is pressure other. to of Leasing bookings, we're I so complementing XX% hitting on in side, sales the to a for like it's just think nice I our and way respect With -- be

doing existing that if lining are fully productive, just we'd staffed. frankly, a reps behind But So, blocking but in day-to-day the because keep and our could still that tackling. more be silver we numbers is we're still bookings we're plan. And lot hitting better that's our

can respect but you pricing I that, but cost comment, we're with or of not to Paul, I huge. mean, seeing some think pressure increasing,

Paul Bullington

really on of to Kenny. Yeah. in terms the is we labor network, contractor there. construct use obviously labor No, -- agree the that out network, primarily comment, part labor our construction One, a have our -- network. labor But in contractors tight one increase market paying we build we're to our force the any of are with a region deep in I that to rely that our that And a of of costs market supply I things. Southeast. mean, we for not it we seen a construction very few to business. in and date our contribute in really that have bench primarily I attribute focused the construction the And

have of those we're us, consistent that for steady, for keep have But all doesn't supply those rising have really any I labor those a piece date, have together labor we -- factors of increase seen a the from stable there system work. to either. we of robust helped those jobs. for to think bidding And We And very really construction. costs of completely in costs cost immune material which the mean competitive not

Gregory Williams

you. That’s Thank helpful.

Operator

One for question. Thank next our moment you.

Our line comes next from from question of Raymond James. Louthan the Frank

Frank Louthan

you. Great. Thank

material year much? back expand there with are And for folks that the And up think the base the in maybe pretty downtick do that can and Where So, going there outlook down quota-bearing you to? for heads. concern is you that? you losing any get next

Kenny Gunderman

Yeah. no concern Frank, next about year.

are is a that have to over getting want real And reps history selective our look, very that much the going is to past that so reason our back that again, of takeaway part be. we in said, opportunity we're the three number slides higher. it and numbers on on for adding board, about With the back team because our is remarks. years, also yeah, focused -- those once the think, new the number prepared the sense very always we've in to if productive. proactive churning keep some go -- who out reps. in couple, that that to we existing network productive, we're just hitting not positive still get we're our very reps of monetize I from you struggled we're our And where And on one more very reps are we

rate something I churn reps like exactly, can't but think is productive. think remember our who I XX% our -- aren't on I

we're indicator or reps. leading do number time, ways tweak a that, lower. add in that. yeah, But of a existing we're at order I we're move the to to of always do the it -- time, commission day, to those that the not quality rigor for a reps the to and problem a not we don't So, consider could what at do. same wanted number and our constantly productive. that's for apply the plan reps, is or problem we a number same that end just think new if plan hit compensation from of looking discipline looking we We're the But away to And we to at or going otherwise don't going but to I that, holding accountable

Frank Louthan

Sure.

is follow-up equipment or Windstream having to forth trucks issues you they build build to -- to any a due think so or plans And do previous hit question, their their is increased on And Okay. out chance costs. getting in any would plans? stretch

Kenny Gunderman

let address So, them Frank, that. but we going on that, have we're to opinion an

earnings address an that let got them directly. coming call they've up, so I think we'll

Frank Louthan

Thanks Fair very right. All enough. much.

Operator

One our question. moment next you. Thank for

Our Simon from next question Flannery Stanley. of the from Morgan comes line

Simon Flannery

morning. much. very Good you Thank Great.

I talk fiber also you've Kenny, did nice over capital backlog intensity but business, you here. about time, coming the On think, got this down

still sort capital going And we mid-XXs that intensity, level year? Is two? the to you're So, about DISH. talked over come think any about this should or down to XX% on update next year near-term how of that over that you've

to Any they start I kick Sprint in, as came off updated that their think -- of in you that sort on plans you said that would XXXX. hope what hope are. business the clarity DISH

Kenny Gunderman

to capital our intensity is going Yeah, down. come Simon.

So, there. to or guidance we've forward-looking changes given any nothing no new

show just our getting the is think and invested we're And I part been where how of the materials capital the trying getting as than is we've some is actually that our reality we're yields on that the what capital in being is getting. said, to returns I better forecasting. we're mean, of -- I we're good

we capital could less So, theoretically, same spend returns. get and the

looking always looking spend highest to we're to -- capital more the the capital ways returns. for get the efficiently, for so, And ways spend

the about of And Sprint DISH be DISH. would talking isn't trajectory great some strides When years DISH said But going capital we a first I down, respect couple there so started coming with to we that's going of not and with to churn. intensity the to Sprint to ago, continue change. think that make change.

already recurring meantime, that is this million there I think think has churn year. with off with churn this I we lose And Sprint turned opportunity on track And And lost bit we revenue the in in dropping I think would we would to for out high or be a the us. to the been would ramping really than million Sprint that that of that eventually next hindsight, more $X said up. in and have DISH up some it going that ETL -- fees I The business DISH million million that DISH think to we is playing with have longer think range we as it's forward, year, the $XX And we we sort pretty would probably again, and ETLs on in $XX backlog. more. will lumpy hurdle we be $X smooth over transition. replace little there's a attractive expected. that thought really the really, that that And term,

Simon Flannery

you. Thank

Operator

Thank moment you. our question. next for One

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

Michael Rollins

Thanks good morning. and

strategic question. a Just

portfolio multiyear fiber business you think you yet cross-sell. portfolios there's nice it like right, That where get how broadly, As other seems in infrastructure larger is. more communications and the if category. been sales, about doesn't there's asset, are If the a really models think portfolio there is, a great type chance the portfolio strategic the asset centers this matter local it right big instruct right Uniti of that. a benefit benefits that infrastructure for the describe you have one win? of have part natural you for that? location, right being assets, the aspirations Or have that larger you fiber you in portfolio? does of would period? Is -- the the how How over then And from getting a is it of is The tends this to data it if that been there's it like the the

Kenny Gunderman

Scale matter fiber. Good morning, Michael. does in

especially a different your center need in different you to it our the providers, wholesale won't off accounts like the opportunity a conversations having tongue a with network. you're And we're two types the national any data that ability hyperscalers, hyperscalers. from think business vantage today rolls look those at dramatically of side, to providers. of when of looked on category conversations. presents. it different you a class the that changed with And carriers, it's the with versus business names, have strategic When have conversations therefore, they just network. but year kind point specific a that in where you're network, point, national we're class, the national what the large use just to I because the it just I or very ago, our national in And respect

backhaul you result, provides those X.X leasing that many big potential, of select don't years that XX%, aren't growth be high-quality at minimal high good get real unless the That's XX-gig, years that And on why just growing brand to have a eight plane you transactions and more dense capital as said, great reterm With you Michael, so if have also our can't backhaul There many demographics, and that view. to a successful you margins types very scale. have we with national X,XXX is And mentioned markets sites all fiber, out. that good lit metro you And in very fiber carriers. people in competition, with it different opportunities signed. our have of deliver you and in that conversations. a the XX%, bespoke-type having and have extending we And returns. deal. puts the you don't called it from business XX% year each a -- when available to the that's have with again that But sites. And the we contract a ability lit you sites with network is and many

And our like we're so, metro We're on as -- the business. a the result, national element say scale. local partner of with we focused the we're really to

and then, opportunities, traditional if you've the to And know fruit. markets the markets, backhaul, the the don't you dark unless lit including got that's make low-hanging anchor backhaul have market, and lease and When a And our pick right schools, clear businesses. terrain. a permitting about We what into We know you're so, the of and and ground. on the up. local you you've you've we conscious what right expand go seeing. We we're we've lease-up a cells. costs network We authorities. yields got small of you up to XX% are get healthy know like We both know a both. you local know to various metro customer in Birmingham, enterprise, great all the and that which stick and to and really markets opportunity investments, very you the got course, you can where network got plethora X% opportunities And pick wholesale boots for balance And the to the it anchor -- of build. path fiber know right

Michael Rollins

in and organically time? one fiber revenue of capital over as algorithm revenue the for to intensity minimal these to to quick the that flat growing follow-up. just percent And What's fiber replace churn Thanks. days a keep

Kenny Gunderman

Yeah.

disclosed haven't that we haven't We number.

our aggregate know we I around as and certainly some is if our and don't intensity right but maintenance I there terms It's I talk I is low in think our have with in CapEx actually, of write-down very really time. industry-leading, -- churn ever basis. think so about X% it there an is capital low. a X.X%. mean, up from we very industry-leading.

right I or refresh little XX%, but that it's kind really minus So, XX%. around to think a around -- bit, plus Michael, but of around number, have we'll probably on

Michael Rollins

Thanks.

Operator

Thank turn like conference of back would closing Q&A I you. At to to Gunderman time, this Kenny the remarks. End for

Kenny Gunderman

on Community Thank further further you Group for in calls. updating and joining you forward to you on to future calls future Look updating look today.

Operator

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

disconnect. now may You

Uniti (UNIT) 3 Nov 222022 Q3 Earnings call transcript