Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Consolidated Communications Announces First Quarter 2024 Financial Results By: Consolidated Communications via Business Wire May 07, 2024 at 08:00 AM EDT Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) (the “Company” or “Consolidated”), a top 10 fiber provider in the U.S., today reported results for first quarter 2024. First Quarter 2024 Results Revenue totaled $274.7 million Overall consumer revenue was $114.8 million Consumer fiber broadband revenue was $41.6 million Total consumer broadband net adds were 6,338 Consumer broadband revenue was $79.9 million Commercial data services revenue was $54.7 million Carrier data-transport revenue was $31.0 million Net loss was ($47.2 million). Adjusted EBITDA was $88.4 million Total committed capital expenditures were $83.7 million Cost of services and products and selling, general and administrative expenses collectively decreased $15.8 million versus the prior year largely due to decreased USF contributions, lower video programming costs, a reduction in salaries driven by certain cost savings initiatives, and lower access expense. Net interest expense was $42.5 million, an increase of $8.6 million versus the prior year, primarily as a result of higher interest rates on the term loan, in addition to decreased interest income due to lower cash holdings in the current quarter. At Mar. 31, 2024, the Company had 73% of its total outstanding debt at a fixed rate through September 2026. As of Mar. 31, 2024, the weighted average cost of debt was 7.14%. Net loss in the first quarter of 2024 was ($47.2 million) compared to net loss of ($47.7 million) in the first quarter of 2023. Net loss per share was ($0.41) in the first quarter of 2024 as compared to net loss per share of ($0.42) in the first quarter of 2023. Adjusted diluted net income (loss) per share excludes certain items as outlined in the table provided in this release. Adjusted diluted net loss per share was ($0.27) compared to ($0.28) in the first quarter of 2023. Capital Expenditures Total committed capital expenditures were $83.7 million, driven by 10,783 new fiber passings, first quarter fiber adds, and reflect the usage of existing inventory for install and build activity. Capital Structure On Mar. 21, 2024, the Company, as borrower, entered into an $80 million term loan agreement (“Term Loan Agreement”) with Searchlight CVL AGG, L.P. as lender. The Term Loan Agreement provides the Company with the ability to borrow on the loan in the event either the aggregate amount of available loans to be drawn under the Company’s revolving credit facility is less than $25.0 million or drawing under the Company’s revolving credit facility would trigger the financial maintenance covenant thereunder and the Company would not be in compliance with such covenant on a pro forma basis, subject to the satisfaction of certain other customary conditions. As of Mar. 31, 2024, the Company maintained liquidity with cash and short-term investments of approximately $7 million, as well as $111 million of available borrowing capacity under the Company’s revolving credit facility and $80 million undrawn under its Term Loan Agreement, in each case, subject to certain covenants. The net debt leverage ratio for the trailing 12 months ended Mar. 31, 2024, was 6.76x. Washington Asset Sale On May 1, 2024, Consolidated completed the sale of its Washington assets. Pending Transaction As previously announced on Oct. 16, 2023, Consolidated entered into an agreement to be acquired by affiliates of Searchlight Capital Partners, L.P. and British Columbia Investment Management Corporation in an all-cash transaction with an enterprise value of approximately $3.1 billion, including the assumption of debt. On Jan. 31, 2024, at a special meeting of shareholders, approximately 75% of shares held by disinterested shareholders voted to approve the proposal to adopt the merger agreement and approve the pending transaction. The transaction will result in Consolidated becoming a private company and is expected to close by the first quarter of 2025, subject to customary closing conditions, including receipt of regulatory approvals. The transaction is not subject to a financing condition. Following the closing of the transaction, shares of Consolidated common stock will no longer be traded or listed on any public securities exchange. In light of the transaction, Consolidated will not host an earnings conference call. About Consolidated Communications Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) is dedicated to moving people, businesses and communities forward by delivering the most reliable fiber communications solutions. Consumers, businesses and wireless and wireline carriers depend on Consolidated for a wide range of high-speed internet, data, phone, security, cloud and wholesale carrier solutions. With a network spanning over 61,000 fiber route miles, Consolidated is a top 10 U.S. fiber provider, turning technology into solutions that are backed by exceptional customer support. Learn more at consolidated.com. Use of Non-GAAP Financial Measures This press release includes disclosures regarding “EBITDA,” “adjusted EBITDA,” “Net debt leverage ratio,” and “adjusted diluted net income (loss) per share,” all of which are non-GAAP financial measures. Accordingly, they should not be construed as alternatives to net cash from operating or investing activities, cash and cash equivalents, cash flows from operations, net income or net income per share as defined by GAAP and are not, on their own, necessarily indicative of cash available to fund cash needs as determined in accordance with GAAP. In addition, not all companies use identical calculations, and the non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures presented in accordance with GAAP is included in the tables that follow. Adjusted EBITDA is comprised of EBITDA, adjusted for certain items as permitted or required by the lenders under our credit agreement in place at the end of each quarter in the periods presented. The tables that follow include an explanation of how adjusted EBITDA is calculated for each of the periods presented with the reconciliation to net income (loss). EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation and amortization on a historical basis. We present adjusted EBITDA for several reasons. Management believes adjusted EBITDA is useful as a means to evaluate our ability to fund our estimated uses of cash (including interest on our debt). In addition, we have presented adjusted EBITDA to investors in the past because it is frequently used by investors, securities analysts and other interested parties in the evaluation of companies in our industry, and management believes presenting it here provides a measure of consistency in our financial reporting. Adjusted EBITDA, referred to as Available Cash in our credit agreement, is also a component of the restrictive covenants and financial ratios contained in our credit agreement that requires us to maintain compliance with these covenants and limit certain activities, such as our ability to incur debt. The definitions in these covenants and ratios are based on Adjusted EBITDA after giving effect to specified charges. In addition, Adjusted EBITDA provides our board of directors with meaningful information, with other data, assumptions and considerations, to measure our ability to service and repay debt. We present the related “Net debt leverage ratio” principally to help investors understand how we measure leverage and facilitate comparisons by investors, security analysts and others. Total net debt is defined as the current and long-term portions of debt and finance lease obligations less cash, cash equivalents and short-term investments, deferred debt issuance costs and discounts on debt. Our Net debt leverage ratio differs in certain respects from the similar ratio used in our credit agreement or against comparable measures of certain other companies in our industry. These measures differ in certain respects from the ratios used in our senior notes indenture. These non-GAAP financial measures have certain shortcomings. In particular, Adjusted EBITDA does not represent the residual cash flows available for discretionary expenditures, since items such as debt repayment and interest payments are not deducted from such measure. In addition, the Net debt leverage ratio is subject to the risk that we may not be able to use the cash on the balance sheet to reduce our debt on a dollar-for-dollar basis. Management believes this ratio is useful as a means to evaluate our ability to incur additional indebtedness in the future. We present the non-GAAP measure “adjusted diluted net income (loss) per share” because our net income (loss) and net income (loss) per share are regularly affected by items that occur at irregular intervals or are non-cash items. We believe that disclosing these measures assists investors, securities analysts and other interested parties in evaluating both our company over time and the relative performance of the companies in our industry. Forward-Looking Statements Certain statements in this press release, including those relating to the current expectations, plans, strategies, and the timeline for consummating the take private transaction with Searchlight Capital Partners, L.P. and British Columbia Investment Management Corporation by the first quarter of 2025, are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect, among other things, our current expectations, plans, strategies and anticipated financial results. There are a number of risks, uncertainties and conditions that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements, including: significant competition in all parts of our business and among our customer channels; our ability to adapt to rapid technological changes; shifts in our product mix that may result in a decline in operating profitability; continued receipt of support from various funds established under federal and state laws; disruptions in our networks and infrastructure and any related service delays or disruptions could cause us to lose customers and incur additional expenses; cyber-attacks may lead to unauthorized access to confidential customer, personnel and business information that could adversely affect our business; our operations require substantial capital expenditures and our business, financial condition, results of operations and liquidity may be impacted if funds for capital expenditures are not available when needed; our ability to obtain and maintain necessary rights-of-way for our networks; our ability to obtain necessary hardware, software and operational support from third-party vendors; substantial video content costs continue to rise; our ability to enter into new collective bargaining agreements or renew existing agreements; our ability to attract and/or retain certain key management and other personnel in the future; risks associated with acquisitions and the realization of anticipated benefits from such acquisitions; increasing attention to, and evolving expectations for, environmental, social and governance initiatives; unfavorable changes in financial markets could affect pension plan investments; weak economic conditions; the risk that the proposed transaction may not be completed in a timely manner or at all; the possibility that any or all of the various conditions to the consummation of the proposed transaction may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations or restrictions placed on such approvals); the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive transaction agreement relating to the proposed transaction, including in circumstances which would require the Company to pay a termination fee; the effect of the announcement or pendency of the proposed transaction on the Company’s ability to attract, motivate or retain key executives and employees, its ability to maintain relationships with its customers, suppliers and other business counterparties, or its operating results and business generally; risks related to the proposed transaction diverting management’s attention from the Company’s ongoing business operations; the amount of costs, fees and expenses related to the proposed transaction; the risk that the Company’s stock price may decline significantly if the proposed transaction is not consummated; the risk of shareholder litigation in connection with the proposed transaction, including resulting expense or delay; and the other risk factors described in Part I, Item 1A of Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023 and the other risk factors identified from time to time in the Company’s other filings with the SEC. Filings with the SEC are available on the SEC’s website at http://www.sec.gov. Many of these circumstances are beyond our ability to control or predict. Moreover, forward-looking statements necessarily involve assumptions on our part. These forward-looking statements generally are identified by the words “believe,” “expect,” “anticipate,” “estimate,” “project,” “intend,” “plan,” “should,” “may,” “will,” “would,” “will be,” “will continue” or similar expressions. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements that appear throughout this press release. Furthermore, undue reliance should not be placed on forward-looking statements, which are based on the information currently available to us and speak only as of the date they are made. Except as required under federal securities laws or the rules and regulations of the Securities and Exchange Commission, we disclaim any intention or obligation to update or revise publicly any forward-looking statements. Tag: [Consolidated-Communications-Earnings] Consolidated Communications Holdings, Inc. Condensed Consolidated Balance Sheets (Dollars in thousands, except share and per share amounts) (Unaudited) March 31, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 7,363 $ 4,765 Accounts receivable, net 109,353 121,194 Income tax receivable 3,070 2,880 Prepaid expenses and other current assets 62,738 56,843 Assets held for sale 70,971 70,473 Total current assets 253,495 256,155 Property, plant and equipment, net 2,461,004 2,449,009 Investments 8,648 8,887 Goodwill 814,624 814,624 Customer relationships, net 14,543 18,616 Other intangible assets 10,557 10,557 Other assets 79,371 70,578 Total assets $ 3,642,242 $ 3,628,426 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 20,529 $ 60,073 Advance billings and customer deposits 48,579 44,478 Accrued compensation 47,901 58,151 Accrued interest 36,275 18,694 Accrued expense 96,750 114,022 Current portion of long-term debt and finance lease obligations 19,234 18,425 Liabilities held for sale 3,147 3,402 Total current liabilities 272,415 317,245 Long-term debt and finance lease obligations 2,234,667 2,134,916 Deferred income taxes 201,047 210,648 Pension and other post-retirement obligations 136,460 137,616 Other long-term liabilities 46,298 48,637 Total liabilities 2,890,887 2,849,062 Series A Preferred Stock, par value $0.01 per share; 10,000,000 shares authorized, 434,266 shares outstanding as of March 31, 2024 and December 31, 2023, respectively; liquidation preference of $532,643 and $520,957 as of March 31, 2024 and December 31, 2023, respectively 384,277 372,590 Shareholders' equity: Common stock, par value $0.01 per share; 150,000,000 shares authorized, 118,429,666 and 116,172,568 shares outstanding as of March 31, 2024 and December 31, 2023, respectively 1,184 1,162 Additional paid-in capital 671,241 681,757 Accumulated deficit (297,876 ) (262,380 ) Accumulated other comprehensive loss, net (15,691 ) (21,872 ) Noncontrolling interest 8,220 8,107 Total shareholders' equity 367,078 406,774 Total liabilities, mezzanine equity and shareholders' equity $ 3,642,242 $ 3,628,426 Consolidated Communications Holdings, Inc. Condensed Consolidated Statements of Operations (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2024 2023 Net revenues $ 274,675 $ 276,126 Operating expenses: Cost of services and products 113,459 131,938 Selling, general and administrative expenses 83,955 81,284 Transaction costs 2,925 — Loss on disposal of assets — 3,304 Depreciation and amortization 80,633 77,699 Loss from operations (6,297 ) (18,099 ) Other income (expense): Interest expense, net of interest income (42,451 ) (33,860 ) Other, net 1,593 2,758 Loss before income taxes (47,155 ) (49,201 ) Income tax benefit (11,772 ) (12,240 ) Net loss (35,383 ) (36,961 ) Less: dividends on Series A preferred stock 11,687 10,587 Less: net income attributable to noncontrolling interest 113 143 Net loss attributable to common shareholders $ (47,183 ) $ (47,691 ) Net loss per basic and diluted common shares attributable to common shareholders $ (0.41 ) $ (0.42 ) Consolidated Communications Holdings, Inc. Condensed Consolidated Statements of Cash Flows (Dollars in thousands) (Unaudited) Three Months Ended March 31, 2024 2023 OPERATING ACTIVITIES Net loss $ (35,383 ) $ (36,961 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 80,633 77,699 Deferred income tax expense (benefit) (11,791 ) 5,604 Pension and post-retirement contributions in excess of expense (1,702 ) (2,861 ) Non-cash, stock-based compensation 1,681 799 Amortization of deferred financing costs and discounts 1,957 1,847 Loss on disposal of assets — 3,304 Other adjustments, net (1,283 ) (418 ) Changes in operating assets and liabilities, net (28,442 ) 6,073 Net cash provided by operating activities 5,670 55,086 INVESTING ACTIVITIES Purchase of property, plant and equipment, net (98,032 ) (130,826 ) Proceeds from sale of assets 76 292 Proceeds from sale and maturity of investments 714 1,623 Net cash used in investing activities (97,242 ) (128,911 ) FINANCING ACTIVITIES Proceeds from issuance of long-term debt 100,000 — Payment of finance lease obligations (4,837 ) (3,114 ) Payment of financing costs (504 ) — Share repurchases for minimum tax withholding (489 ) (1,036 ) Net cash provided by (used in) financing activities 94,170 (4,150 ) Net change in cash and cash equivalents 2,598 (77,975 ) Cash and cash equivalents at beginning of period 4,765 325,852 Cash and cash equivalents at end of period $ 7,363 $ 247,877 Consolidated Communications Holdings, Inc. Consolidated Revenue by Category (Dollars in thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Consumer: Broadband (Data and VoIP) $ 79,882 $ 67,961 Voice services 28,336 32,263 Video services 6,626 9,594 114,844 109,818 Commercial: Data services (includes VoIP) 54,681 53,134 Voice services 30,711 32,631 Other 8,964 9,756 94,356 95,521 Carrier: Data and transport services 31,048 32,923 Voice services 3,794 4,367 Other 235 350 35,077 37,640 Subsidies 6,806 7,036 Network access 22,468 24,444 Other products and services 1,124 1,667 Total operating revenue $ 274,675 $ 276,126 Consolidated Communications Holdings, Inc. Consolidated Revenue Trend by Category (Dollars in thousands) (Unaudited) Three Months Ended Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Consumer: Broadband (Data and VoIP) $ 79,882 $ 76,458 $ 75,089 $ 71,339 $ 67,961 Voice services 28,336 29,935 31,616 31,352 32,263 Video services 6,626 7,460 8,541 9,362 9,594 114,844 113,853 115,246 112,053 109,818 Commercial: Data services (includes VoIP) 54,681 54,473 53,870 53,230 53,134 Voice services 30,711 31,217 31,825 32,236 32,631 Other 8,964 10,521 9,228 10,378 9,756 94,356 96,211 94,923 95,844 95,521 Carrier: Data and transport services 31,048 31,713 31,388 31,224 32,923 Voice services 3,794 2,868 4,090 4,263 4,367 Other 235 243 262 313 350 35,077 34,824 35,740 35,800 37,640 Subsidies 6,806 6,902 6,878 7,072 7,036 Network access 22,468 22,217 20,842 22,747 24,444 Other products and services 1,124 1,171 10,025 1,646 1,667 Total operating revenue $ 274,675 $ 275,178 $ 283,654 $ 275,162 $ 276,126 Consolidated Communications Holdings, Inc. Reconciliation of Net Loss to Adjusted EBITDA (Dollars in thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Net loss $ (35,383 ) $ (36,961 ) Add (subtract): Income tax benefit (11,772 ) (12,240 ) Interest expense, net 42,451 33,860 Depreciation and amortization 80,633 77,699 EBITDA 75,929 62,358 Adjustments to EBITDA (1): Other, net (2) 10,727 10,030 Pension/OPEB benefit 62 (1,141 ) Loss on disposal of assets — 3,304 Non-cash compensation (3) 1,681 799 Adjusted EBITDA $ 88,399 $ 75,350 Notes: (1) These adjustments reflect those required or permitted by the lenders under our credit agreement. (2) Other, net includes income attributable to noncontrolling interests, transaction and non-recurring related costs, and certain miscellaneous items. (3) Represents compensation expenses in connection with our Restricted Share Plan, which because of the non-cash nature of the expenses are excluded from adjusted EBITDA. Consolidated Communications Holdings, Inc. Reconciliation of Loss Attributable to Common Shareholders to Adjusted Loss and Calculation of Adjusted Diluted Net Loss Per Common Share (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2024 2023 Net loss $ (35,383 ) $ (36,961 ) Less: dividends on Series A preferred stock 11,687 10,587 Less: net income attributable to noncontrolling interest 113 143 Net loss attributable to common shareholders (47,183 ) (47,691 ) Adjustments to net loss attributable to common shareholders: Dividends on Series A preferred stock 11,687 10,587 Transaction and severance related costs, net of tax 3,191 2,648 Loss on disposition of assets, net of tax — 2,441 Non-cash interest expense for swaps, net of tax — (338 ) Non-cash stock compensation, net of tax 1,241 590 Adjusted net loss $ (31,064 ) $ (31,763 ) Weighted average number of common shares outstanding 114,134 112,939 Adjusted diluted net loss per common share $ (0.27 ) $ (0.28 ) Notes: Calculations above assume a 26.1% effective tax rate for each of the three months ended March 31, 2024 and 2023. Consolidated Communications Holdings, Inc. Reconciliation of Total Net Debt to LTM Adjusted EBITDA Ratio (Dollars in thousands) (Unaudited) March 31, 2024 Long-term debt and finance lease obligations: Term loans, net of discount $6,585 $ 993,290 6.50% Senior secured notes due 2028 750,000 5.00% Senior secured notes due 2028 400,000 Revolving loan 100,000 Finance leases 38,347 Total debt as of March 31, 2024 2,281,637 Less: deferred debt issuance costs (27,736 ) Less: cash, cash equivalents and short-term investments (7,363 ) Total net debt as of March 31, 2024 $ 2,246,538 Adjusted EBITDA for the 12 months ended March 31, 2024 $ 332,248 Total Net Debt to last 12 months Adjusted EBITDA 6.76x Consolidated Communications Holdings, Inc. Key Operating Metrics (Unaudited) 2023 FY 2022 Q1 Q2 Q3 Q4 FY Q1 2024 Passings Total Fiber Gig+ Capable Passings (1)(2)(3) 1,008,660 1,062,518 1,119,956 1,187,076 1,236,208 1,236,208 1,246,991 Total DSL/Copper Passings (2)(3) 1,617,077 1,564,889 1,509,875 1,447,539 1,401,535 1,401,535 1,392,698 Total Passings (1)(2)(3) 2,625,737 2,627,407 2,629,831 2,634,615 2,637,743 2,637,743 2,639,689 % Fiber Gig+ Coverage/Total Passings 38 % 40 % 43 % 45 % 47 % 47 % 47 % Consumer Broadband Connections Fiber Gig+ Capable 122,872 135,209 153,860 175,748 195,195 195,195 213,997 DSL/Copper 244,586 234,653 222,969 210,473 198,024 198,024 185,560 Total Consumer Broadband Connections 367,458 369,862 376,829 386,221 393,219 393,219 399,557 Consumer Broadband Net Adds Total Fiber Gig+ Capable Net Adds (5) 40,075 12,337 18,651 21,888 19,447 72,323 18,802 DSL/Copper Net Adds (5) (39,351 ) (9,933 ) (11,684 ) (12,496 ) (12,449 ) (46,562 ) (12,464 ) Total Consumer Broadband Net Adds (5) 724 2,404 6,967 9,392 6,998 25,761 6,338 Consumer Broadband Penetration % Fiber Gig+ Capable (on fiber passings) 12.2 % 12.7 % 13.7 % 14.8 % 15.8 % 15.8 % 17.2 % DSL/Copper (on DSL/copper passings) 15.1 % 15.0 % 14.8 % 14.5 % 14.1 % 14.1 % 13.3 % Total Consumer Broadband Penetration % 14.0 % 14.1 % 14.3 % 14.7 % 14.9 % 14.9 % 15.1 % Consumer Average Revenue Per Unit (ARPU) Fiber Gig+ Capable $ 65.42 $ 67.51 $ 68.29 $ 68.78 $ 68.14 $ 66.90 $ 67.96 DSL/Copper $ 53.36 $ 53.21 $ 55.88 $ 57.18 $ 56.27 $ 55.83 $ 59.69 Churn Fiber Consumer Broadband Churn (5) 1.1 % 1.0 % 1.3 % 1.3 % 1.2 % 1.2 % 1.1 % DSL/Copper Consumer Broadband Churn (5) 1.6 % 1.5 % 1.7 % 2.0 % 2.0 % 1.8 % 2.0 % Consumer Broadband Revenue ($ in thousands) Fiber Broadband Revenue (4) $ 82,034 $ 26,136 $ 29,613 $ 34,004 $ 37,916 $ 127,668 $ 41,613 Copper and Other Broadband Revenue 190,112 41,825 41,726 41,085 38,542 163,179 38,268 Total Consumer Broadband Revenue $ 272,146 $ 67,961 $ 71,339 $ 75,089 $ 76,458 $ 290,847 $ 79,882 Consumer Voice Connections 276,779 267,509 258,680 249,081 239,587 239,587 229,523 Video Connections 35,039 32,426 28,934 26,158 21,900 21,900 17,620 Fiber route network miles (long-haul, metro and FttP) 57,865 57,569 58,836 59,915 60,438 60,438 61,366 On-net buildings 14,427 14,520 14,735 14,928 15,105 15,105 15,254 Notes: (1) In Q1 2021, the Company launched a multi-year fiber build plan to upgrade 1.6 million passings or 70% of our service area to fiber Gig+ capable services. During the quarter ended March 31, 2024, an additional 10,783 passings were upgraded to FttP and total fiber passings were 1,246,991 or 47% of the Company's service area. (2) Passings counts are estimates of single family units, multi-dwelling units, and multi-tenant units within consumer, small business and enterprise. These counts are based upon the information available at this time and are subject to updates as additional information becomes available. (3) When a passing is both fiber and DSL/Copper capable it is counted as a fiber passing. (4) Fiber broadband revenue includes revenue from our Kansas City operations, which was sold in the fourth quarter of 2022, of approximately $1.8 million for the year ended December 31, 2022. Amounts have not been adjusted to reflect the sale. (5) Consumer Broadband net adds and churn for the year ended December 31, 2022 have been normalized to reflect the divestitures of our Kansas City and Ohio operations, which were sold in 2022. View source version on businesswire.com: https://www.businesswire.com/news/home/20240506543676/en/Contacts Investor and Media Contacts Philip Kranz, Investor Relations +1 217-238-8480 Philip.kranz@consolidated.com Jennifer Spaude, Media Relations +1 507-386-3765 Jennifer.spaude@consolidated.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Consolidated Communications Announces First Quarter 2024 Financial Results By: Consolidated Communications via Business Wire May 07, 2024 at 08:00 AM EDT Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) (the “Company” or “Consolidated”), a top 10 fiber provider in the U.S., today reported results for first quarter 2024. First Quarter 2024 Results Revenue totaled $274.7 million Overall consumer revenue was $114.8 million Consumer fiber broadband revenue was $41.6 million Total consumer broadband net adds were 6,338 Consumer broadband revenue was $79.9 million Commercial data services revenue was $54.7 million Carrier data-transport revenue was $31.0 million Net loss was ($47.2 million). Adjusted EBITDA was $88.4 million Total committed capital expenditures were $83.7 million Cost of services and products and selling, general and administrative expenses collectively decreased $15.8 million versus the prior year largely due to decreased USF contributions, lower video programming costs, a reduction in salaries driven by certain cost savings initiatives, and lower access expense. Net interest expense was $42.5 million, an increase of $8.6 million versus the prior year, primarily as a result of higher interest rates on the term loan, in addition to decreased interest income due to lower cash holdings in the current quarter. At Mar. 31, 2024, the Company had 73% of its total outstanding debt at a fixed rate through September 2026. As of Mar. 31, 2024, the weighted average cost of debt was 7.14%. Net loss in the first quarter of 2024 was ($47.2 million) compared to net loss of ($47.7 million) in the first quarter of 2023. Net loss per share was ($0.41) in the first quarter of 2024 as compared to net loss per share of ($0.42) in the first quarter of 2023. Adjusted diluted net income (loss) per share excludes certain items as outlined in the table provided in this release. Adjusted diluted net loss per share was ($0.27) compared to ($0.28) in the first quarter of 2023. Capital Expenditures Total committed capital expenditures were $83.7 million, driven by 10,783 new fiber passings, first quarter fiber adds, and reflect the usage of existing inventory for install and build activity. Capital Structure On Mar. 21, 2024, the Company, as borrower, entered into an $80 million term loan agreement (“Term Loan Agreement”) with Searchlight CVL AGG, L.P. as lender. The Term Loan Agreement provides the Company with the ability to borrow on the loan in the event either the aggregate amount of available loans to be drawn under the Company’s revolving credit facility is less than $25.0 million or drawing under the Company’s revolving credit facility would trigger the financial maintenance covenant thereunder and the Company would not be in compliance with such covenant on a pro forma basis, subject to the satisfaction of certain other customary conditions. As of Mar. 31, 2024, the Company maintained liquidity with cash and short-term investments of approximately $7 million, as well as $111 million of available borrowing capacity under the Company’s revolving credit facility and $80 million undrawn under its Term Loan Agreement, in each case, subject to certain covenants. The net debt leverage ratio for the trailing 12 months ended Mar. 31, 2024, was 6.76x. Washington Asset Sale On May 1, 2024, Consolidated completed the sale of its Washington assets. Pending Transaction As previously announced on Oct. 16, 2023, Consolidated entered into an agreement to be acquired by affiliates of Searchlight Capital Partners, L.P. and British Columbia Investment Management Corporation in an all-cash transaction with an enterprise value of approximately $3.1 billion, including the assumption of debt. On Jan. 31, 2024, at a special meeting of shareholders, approximately 75% of shares held by disinterested shareholders voted to approve the proposal to adopt the merger agreement and approve the pending transaction. The transaction will result in Consolidated becoming a private company and is expected to close by the first quarter of 2025, subject to customary closing conditions, including receipt of regulatory approvals. The transaction is not subject to a financing condition. Following the closing of the transaction, shares of Consolidated common stock will no longer be traded or listed on any public securities exchange. In light of the transaction, Consolidated will not host an earnings conference call. About Consolidated Communications Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) is dedicated to moving people, businesses and communities forward by delivering the most reliable fiber communications solutions. Consumers, businesses and wireless and wireline carriers depend on Consolidated for a wide range of high-speed internet, data, phone, security, cloud and wholesale carrier solutions. With a network spanning over 61,000 fiber route miles, Consolidated is a top 10 U.S. fiber provider, turning technology into solutions that are backed by exceptional customer support. Learn more at consolidated.com. Use of Non-GAAP Financial Measures This press release includes disclosures regarding “EBITDA,” “adjusted EBITDA,” “Net debt leverage ratio,” and “adjusted diluted net income (loss) per share,” all of which are non-GAAP financial measures. Accordingly, they should not be construed as alternatives to net cash from operating or investing activities, cash and cash equivalents, cash flows from operations, net income or net income per share as defined by GAAP and are not, on their own, necessarily indicative of cash available to fund cash needs as determined in accordance with GAAP. In addition, not all companies use identical calculations, and the non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures presented in accordance with GAAP is included in the tables that follow. Adjusted EBITDA is comprised of EBITDA, adjusted for certain items as permitted or required by the lenders under our credit agreement in place at the end of each quarter in the periods presented. The tables that follow include an explanation of how adjusted EBITDA is calculated for each of the periods presented with the reconciliation to net income (loss). EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation and amortization on a historical basis. We present adjusted EBITDA for several reasons. Management believes adjusted EBITDA is useful as a means to evaluate our ability to fund our estimated uses of cash (including interest on our debt). In addition, we have presented adjusted EBITDA to investors in the past because it is frequently used by investors, securities analysts and other interested parties in the evaluation of companies in our industry, and management believes presenting it here provides a measure of consistency in our financial reporting. Adjusted EBITDA, referred to as Available Cash in our credit agreement, is also a component of the restrictive covenants and financial ratios contained in our credit agreement that requires us to maintain compliance with these covenants and limit certain activities, such as our ability to incur debt. The definitions in these covenants and ratios are based on Adjusted EBITDA after giving effect to specified charges. In addition, Adjusted EBITDA provides our board of directors with meaningful information, with other data, assumptions and considerations, to measure our ability to service and repay debt. We present the related “Net debt leverage ratio” principally to help investors understand how we measure leverage and facilitate comparisons by investors, security analysts and others. Total net debt is defined as the current and long-term portions of debt and finance lease obligations less cash, cash equivalents and short-term investments, deferred debt issuance costs and discounts on debt. Our Net debt leverage ratio differs in certain respects from the similar ratio used in our credit agreement or against comparable measures of certain other companies in our industry. These measures differ in certain respects from the ratios used in our senior notes indenture. These non-GAAP financial measures have certain shortcomings. In particular, Adjusted EBITDA does not represent the residual cash flows available for discretionary expenditures, since items such as debt repayment and interest payments are not deducted from such measure. In addition, the Net debt leverage ratio is subject to the risk that we may not be able to use the cash on the balance sheet to reduce our debt on a dollar-for-dollar basis. Management believes this ratio is useful as a means to evaluate our ability to incur additional indebtedness in the future. We present the non-GAAP measure “adjusted diluted net income (loss) per share” because our net income (loss) and net income (loss) per share are regularly affected by items that occur at irregular intervals or are non-cash items. We believe that disclosing these measures assists investors, securities analysts and other interested parties in evaluating both our company over time and the relative performance of the companies in our industry. Forward-Looking Statements Certain statements in this press release, including those relating to the current expectations, plans, strategies, and the timeline for consummating the take private transaction with Searchlight Capital Partners, L.P. and British Columbia Investment Management Corporation by the first quarter of 2025, are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect, among other things, our current expectations, plans, strategies and anticipated financial results. There are a number of risks, uncertainties and conditions that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements, including: significant competition in all parts of our business and among our customer channels; our ability to adapt to rapid technological changes; shifts in our product mix that may result in a decline in operating profitability; continued receipt of support from various funds established under federal and state laws; disruptions in our networks and infrastructure and any related service delays or disruptions could cause us to lose customers and incur additional expenses; cyber-attacks may lead to unauthorized access to confidential customer, personnel and business information that could adversely affect our business; our operations require substantial capital expenditures and our business, financial condition, results of operations and liquidity may be impacted if funds for capital expenditures are not available when needed; our ability to obtain and maintain necessary rights-of-way for our networks; our ability to obtain necessary hardware, software and operational support from third-party vendors; substantial video content costs continue to rise; our ability to enter into new collective bargaining agreements or renew existing agreements; our ability to attract and/or retain certain key management and other personnel in the future; risks associated with acquisitions and the realization of anticipated benefits from such acquisitions; increasing attention to, and evolving expectations for, environmental, social and governance initiatives; unfavorable changes in financial markets could affect pension plan investments; weak economic conditions; the risk that the proposed transaction may not be completed in a timely manner or at all; the possibility that any or all of the various conditions to the consummation of the proposed transaction may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations or restrictions placed on such approvals); the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive transaction agreement relating to the proposed transaction, including in circumstances which would require the Company to pay a termination fee; the effect of the announcement or pendency of the proposed transaction on the Company’s ability to attract, motivate or retain key executives and employees, its ability to maintain relationships with its customers, suppliers and other business counterparties, or its operating results and business generally; risks related to the proposed transaction diverting management’s attention from the Company’s ongoing business operations; the amount of costs, fees and expenses related to the proposed transaction; the risk that the Company’s stock price may decline significantly if the proposed transaction is not consummated; the risk of shareholder litigation in connection with the proposed transaction, including resulting expense or delay; and the other risk factors described in Part I, Item 1A of Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023 and the other risk factors identified from time to time in the Company’s other filings with the SEC. Filings with the SEC are available on the SEC’s website at http://www.sec.gov. Many of these circumstances are beyond our ability to control or predict. Moreover, forward-looking statements necessarily involve assumptions on our part. These forward-looking statements generally are identified by the words “believe,” “expect,” “anticipate,” “estimate,” “project,” “intend,” “plan,” “should,” “may,” “will,” “would,” “will be,” “will continue” or similar expressions. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements that appear throughout this press release. Furthermore, undue reliance should not be placed on forward-looking statements, which are based on the information currently available to us and speak only as of the date they are made. Except as required under federal securities laws or the rules and regulations of the Securities and Exchange Commission, we disclaim any intention or obligation to update or revise publicly any forward-looking statements. Tag: [Consolidated-Communications-Earnings] Consolidated Communications Holdings, Inc. Condensed Consolidated Balance Sheets (Dollars in thousands, except share and per share amounts) (Unaudited) March 31, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 7,363 $ 4,765 Accounts receivable, net 109,353 121,194 Income tax receivable 3,070 2,880 Prepaid expenses and other current assets 62,738 56,843 Assets held for sale 70,971 70,473 Total current assets 253,495 256,155 Property, plant and equipment, net 2,461,004 2,449,009 Investments 8,648 8,887 Goodwill 814,624 814,624 Customer relationships, net 14,543 18,616 Other intangible assets 10,557 10,557 Other assets 79,371 70,578 Total assets $ 3,642,242 $ 3,628,426 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 20,529 $ 60,073 Advance billings and customer deposits 48,579 44,478 Accrued compensation 47,901 58,151 Accrued interest 36,275 18,694 Accrued expense 96,750 114,022 Current portion of long-term debt and finance lease obligations 19,234 18,425 Liabilities held for sale 3,147 3,402 Total current liabilities 272,415 317,245 Long-term debt and finance lease obligations 2,234,667 2,134,916 Deferred income taxes 201,047 210,648 Pension and other post-retirement obligations 136,460 137,616 Other long-term liabilities 46,298 48,637 Total liabilities 2,890,887 2,849,062 Series A Preferred Stock, par value $0.01 per share; 10,000,000 shares authorized, 434,266 shares outstanding as of March 31, 2024 and December 31, 2023, respectively; liquidation preference of $532,643 and $520,957 as of March 31, 2024 and December 31, 2023, respectively 384,277 372,590 Shareholders' equity: Common stock, par value $0.01 per share; 150,000,000 shares authorized, 118,429,666 and 116,172,568 shares outstanding as of March 31, 2024 and December 31, 2023, respectively 1,184 1,162 Additional paid-in capital 671,241 681,757 Accumulated deficit (297,876 ) (262,380 ) Accumulated other comprehensive loss, net (15,691 ) (21,872 ) Noncontrolling interest 8,220 8,107 Total shareholders' equity 367,078 406,774 Total liabilities, mezzanine equity and shareholders' equity $ 3,642,242 $ 3,628,426 Consolidated Communications Holdings, Inc. Condensed Consolidated Statements of Operations (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2024 2023 Net revenues $ 274,675 $ 276,126 Operating expenses: Cost of services and products 113,459 131,938 Selling, general and administrative expenses 83,955 81,284 Transaction costs 2,925 — Loss on disposal of assets — 3,304 Depreciation and amortization 80,633 77,699 Loss from operations (6,297 ) (18,099 ) Other income (expense): Interest expense, net of interest income (42,451 ) (33,860 ) Other, net 1,593 2,758 Loss before income taxes (47,155 ) (49,201 ) Income tax benefit (11,772 ) (12,240 ) Net loss (35,383 ) (36,961 ) Less: dividends on Series A preferred stock 11,687 10,587 Less: net income attributable to noncontrolling interest 113 143 Net loss attributable to common shareholders $ (47,183 ) $ (47,691 ) Net loss per basic and diluted common shares attributable to common shareholders $ (0.41 ) $ (0.42 ) Consolidated Communications Holdings, Inc. Condensed Consolidated Statements of Cash Flows (Dollars in thousands) (Unaudited) Three Months Ended March 31, 2024 2023 OPERATING ACTIVITIES Net loss $ (35,383 ) $ (36,961 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 80,633 77,699 Deferred income tax expense (benefit) (11,791 ) 5,604 Pension and post-retirement contributions in excess of expense (1,702 ) (2,861 ) Non-cash, stock-based compensation 1,681 799 Amortization of deferred financing costs and discounts 1,957 1,847 Loss on disposal of assets — 3,304 Other adjustments, net (1,283 ) (418 ) Changes in operating assets and liabilities, net (28,442 ) 6,073 Net cash provided by operating activities 5,670 55,086 INVESTING ACTIVITIES Purchase of property, plant and equipment, net (98,032 ) (130,826 ) Proceeds from sale of assets 76 292 Proceeds from sale and maturity of investments 714 1,623 Net cash used in investing activities (97,242 ) (128,911 ) FINANCING ACTIVITIES Proceeds from issuance of long-term debt 100,000 — Payment of finance lease obligations (4,837 ) (3,114 ) Payment of financing costs (504 ) — Share repurchases for minimum tax withholding (489 ) (1,036 ) Net cash provided by (used in) financing activities 94,170 (4,150 ) Net change in cash and cash equivalents 2,598 (77,975 ) Cash and cash equivalents at beginning of period 4,765 325,852 Cash and cash equivalents at end of period $ 7,363 $ 247,877 Consolidated Communications Holdings, Inc. Consolidated Revenue by Category (Dollars in thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Consumer: Broadband (Data and VoIP) $ 79,882 $ 67,961 Voice services 28,336 32,263 Video services 6,626 9,594 114,844 109,818 Commercial: Data services (includes VoIP) 54,681 53,134 Voice services 30,711 32,631 Other 8,964 9,756 94,356 95,521 Carrier: Data and transport services 31,048 32,923 Voice services 3,794 4,367 Other 235 350 35,077 37,640 Subsidies 6,806 7,036 Network access 22,468 24,444 Other products and services 1,124 1,667 Total operating revenue $ 274,675 $ 276,126 Consolidated Communications Holdings, Inc. Consolidated Revenue Trend by Category (Dollars in thousands) (Unaudited) Three Months Ended Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Consumer: Broadband (Data and VoIP) $ 79,882 $ 76,458 $ 75,089 $ 71,339 $ 67,961 Voice services 28,336 29,935 31,616 31,352 32,263 Video services 6,626 7,460 8,541 9,362 9,594 114,844 113,853 115,246 112,053 109,818 Commercial: Data services (includes VoIP) 54,681 54,473 53,870 53,230 53,134 Voice services 30,711 31,217 31,825 32,236 32,631 Other 8,964 10,521 9,228 10,378 9,756 94,356 96,211 94,923 95,844 95,521 Carrier: Data and transport services 31,048 31,713 31,388 31,224 32,923 Voice services 3,794 2,868 4,090 4,263 4,367 Other 235 243 262 313 350 35,077 34,824 35,740 35,800 37,640 Subsidies 6,806 6,902 6,878 7,072 7,036 Network access 22,468 22,217 20,842 22,747 24,444 Other products and services 1,124 1,171 10,025 1,646 1,667 Total operating revenue $ 274,675 $ 275,178 $ 283,654 $ 275,162 $ 276,126 Consolidated Communications Holdings, Inc. Reconciliation of Net Loss to Adjusted EBITDA (Dollars in thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Net loss $ (35,383 ) $ (36,961 ) Add (subtract): Income tax benefit (11,772 ) (12,240 ) Interest expense, net 42,451 33,860 Depreciation and amortization 80,633 77,699 EBITDA 75,929 62,358 Adjustments to EBITDA (1): Other, net (2) 10,727 10,030 Pension/OPEB benefit 62 (1,141 ) Loss on disposal of assets — 3,304 Non-cash compensation (3) 1,681 799 Adjusted EBITDA $ 88,399 $ 75,350 Notes: (1) These adjustments reflect those required or permitted by the lenders under our credit agreement. (2) Other, net includes income attributable to noncontrolling interests, transaction and non-recurring related costs, and certain miscellaneous items. (3) Represents compensation expenses in connection with our Restricted Share Plan, which because of the non-cash nature of the expenses are excluded from adjusted EBITDA. Consolidated Communications Holdings, Inc. Reconciliation of Loss Attributable to Common Shareholders to Adjusted Loss and Calculation of Adjusted Diluted Net Loss Per Common Share (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2024 2023 Net loss $ (35,383 ) $ (36,961 ) Less: dividends on Series A preferred stock 11,687 10,587 Less: net income attributable to noncontrolling interest 113 143 Net loss attributable to common shareholders (47,183 ) (47,691 ) Adjustments to net loss attributable to common shareholders: Dividends on Series A preferred stock 11,687 10,587 Transaction and severance related costs, net of tax 3,191 2,648 Loss on disposition of assets, net of tax — 2,441 Non-cash interest expense for swaps, net of tax — (338 ) Non-cash stock compensation, net of tax 1,241 590 Adjusted net loss $ (31,064 ) $ (31,763 ) Weighted average number of common shares outstanding 114,134 112,939 Adjusted diluted net loss per common share $ (0.27 ) $ (0.28 ) Notes: Calculations above assume a 26.1% effective tax rate for each of the three months ended March 31, 2024 and 2023. Consolidated Communications Holdings, Inc. Reconciliation of Total Net Debt to LTM Adjusted EBITDA Ratio (Dollars in thousands) (Unaudited) March 31, 2024 Long-term debt and finance lease obligations: Term loans, net of discount $6,585 $ 993,290 6.50% Senior secured notes due 2028 750,000 5.00% Senior secured notes due 2028 400,000 Revolving loan 100,000 Finance leases 38,347 Total debt as of March 31, 2024 2,281,637 Less: deferred debt issuance costs (27,736 ) Less: cash, cash equivalents and short-term investments (7,363 ) Total net debt as of March 31, 2024 $ 2,246,538 Adjusted EBITDA for the 12 months ended March 31, 2024 $ 332,248 Total Net Debt to last 12 months Adjusted EBITDA 6.76x Consolidated Communications Holdings, Inc. Key Operating Metrics (Unaudited) 2023 FY 2022 Q1 Q2 Q3 Q4 FY Q1 2024 Passings Total Fiber Gig+ Capable Passings (1)(2)(3) 1,008,660 1,062,518 1,119,956 1,187,076 1,236,208 1,236,208 1,246,991 Total DSL/Copper Passings (2)(3) 1,617,077 1,564,889 1,509,875 1,447,539 1,401,535 1,401,535 1,392,698 Total Passings (1)(2)(3) 2,625,737 2,627,407 2,629,831 2,634,615 2,637,743 2,637,743 2,639,689 % Fiber Gig+ Coverage/Total Passings 38 % 40 % 43 % 45 % 47 % 47 % 47 % Consumer Broadband Connections Fiber Gig+ Capable 122,872 135,209 153,860 175,748 195,195 195,195 213,997 DSL/Copper 244,586 234,653 222,969 210,473 198,024 198,024 185,560 Total Consumer Broadband Connections 367,458 369,862 376,829 386,221 393,219 393,219 399,557 Consumer Broadband Net Adds Total Fiber Gig+ Capable Net Adds (5) 40,075 12,337 18,651 21,888 19,447 72,323 18,802 DSL/Copper Net Adds (5) (39,351 ) (9,933 ) (11,684 ) (12,496 ) (12,449 ) (46,562 ) (12,464 ) Total Consumer Broadband Net Adds (5) 724 2,404 6,967 9,392 6,998 25,761 6,338 Consumer Broadband Penetration % Fiber Gig+ Capable (on fiber passings) 12.2 % 12.7 % 13.7 % 14.8 % 15.8 % 15.8 % 17.2 % DSL/Copper (on DSL/copper passings) 15.1 % 15.0 % 14.8 % 14.5 % 14.1 % 14.1 % 13.3 % Total Consumer Broadband Penetration % 14.0 % 14.1 % 14.3 % 14.7 % 14.9 % 14.9 % 15.1 % Consumer Average Revenue Per Unit (ARPU) Fiber Gig+ Capable $ 65.42 $ 67.51 $ 68.29 $ 68.78 $ 68.14 $ 66.90 $ 67.96 DSL/Copper $ 53.36 $ 53.21 $ 55.88 $ 57.18 $ 56.27 $ 55.83 $ 59.69 Churn Fiber Consumer Broadband Churn (5) 1.1 % 1.0 % 1.3 % 1.3 % 1.2 % 1.2 % 1.1 % DSL/Copper Consumer Broadband Churn (5) 1.6 % 1.5 % 1.7 % 2.0 % 2.0 % 1.8 % 2.0 % Consumer Broadband Revenue ($ in thousands) Fiber Broadband Revenue (4) $ 82,034 $ 26,136 $ 29,613 $ 34,004 $ 37,916 $ 127,668 $ 41,613 Copper and Other Broadband Revenue 190,112 41,825 41,726 41,085 38,542 163,179 38,268 Total Consumer Broadband Revenue $ 272,146 $ 67,961 $ 71,339 $ 75,089 $ 76,458 $ 290,847 $ 79,882 Consumer Voice Connections 276,779 267,509 258,680 249,081 239,587 239,587 229,523 Video Connections 35,039 32,426 28,934 26,158 21,900 21,900 17,620 Fiber route network miles (long-haul, metro and FttP) 57,865 57,569 58,836 59,915 60,438 60,438 61,366 On-net buildings 14,427 14,520 14,735 14,928 15,105 15,105 15,254 Notes: (1) In Q1 2021, the Company launched a multi-year fiber build plan to upgrade 1.6 million passings or 70% of our service area to fiber Gig+ capable services. During the quarter ended March 31, 2024, an additional 10,783 passings were upgraded to FttP and total fiber passings were 1,246,991 or 47% of the Company's service area. (2) Passings counts are estimates of single family units, multi-dwelling units, and multi-tenant units within consumer, small business and enterprise. These counts are based upon the information available at this time and are subject to updates as additional information becomes available. (3) When a passing is both fiber and DSL/Copper capable it is counted as a fiber passing. (4) Fiber broadband revenue includes revenue from our Kansas City operations, which was sold in the fourth quarter of 2022, of approximately $1.8 million for the year ended December 31, 2022. Amounts have not been adjusted to reflect the sale. (5) Consumer Broadband net adds and churn for the year ended December 31, 2022 have been normalized to reflect the divestitures of our Kansas City and Ohio operations, which were sold in 2022. View source version on businesswire.com: https://www.businesswire.com/news/home/20240506543676/en/Contacts Investor and Media Contacts Philip Kranz, Investor Relations +1 217-238-8480 Philip.kranz@consolidated.com Jennifer Spaude, Media Relations +1 507-386-3765 Jennifer.spaude@consolidated.com
Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) (the “Company” or “Consolidated”), a top 10 fiber provider in the U.S., today reported results for first quarter 2024. First Quarter 2024 Results Revenue totaled $274.7 million Overall consumer revenue was $114.8 million Consumer fiber broadband revenue was $41.6 million Total consumer broadband net adds were 6,338 Consumer broadband revenue was $79.9 million Commercial data services revenue was $54.7 million Carrier data-transport revenue was $31.0 million Net loss was ($47.2 million). Adjusted EBITDA was $88.4 million Total committed capital expenditures were $83.7 million Cost of services and products and selling, general and administrative expenses collectively decreased $15.8 million versus the prior year largely due to decreased USF contributions, lower video programming costs, a reduction in salaries driven by certain cost savings initiatives, and lower access expense. Net interest expense was $42.5 million, an increase of $8.6 million versus the prior year, primarily as a result of higher interest rates on the term loan, in addition to decreased interest income due to lower cash holdings in the current quarter. At Mar. 31, 2024, the Company had 73% of its total outstanding debt at a fixed rate through September 2026. As of Mar. 31, 2024, the weighted average cost of debt was 7.14%. Net loss in the first quarter of 2024 was ($47.2 million) compared to net loss of ($47.7 million) in the first quarter of 2023. Net loss per share was ($0.41) in the first quarter of 2024 as compared to net loss per share of ($0.42) in the first quarter of 2023. Adjusted diluted net income (loss) per share excludes certain items as outlined in the table provided in this release. Adjusted diluted net loss per share was ($0.27) compared to ($0.28) in the first quarter of 2023. Capital Expenditures Total committed capital expenditures were $83.7 million, driven by 10,783 new fiber passings, first quarter fiber adds, and reflect the usage of existing inventory for install and build activity. Capital Structure On Mar. 21, 2024, the Company, as borrower, entered into an $80 million term loan agreement (“Term Loan Agreement”) with Searchlight CVL AGG, L.P. as lender. The Term Loan Agreement provides the Company with the ability to borrow on the loan in the event either the aggregate amount of available loans to be drawn under the Company’s revolving credit facility is less than $25.0 million or drawing under the Company’s revolving credit facility would trigger the financial maintenance covenant thereunder and the Company would not be in compliance with such covenant on a pro forma basis, subject to the satisfaction of certain other customary conditions. As of Mar. 31, 2024, the Company maintained liquidity with cash and short-term investments of approximately $7 million, as well as $111 million of available borrowing capacity under the Company’s revolving credit facility and $80 million undrawn under its Term Loan Agreement, in each case, subject to certain covenants. The net debt leverage ratio for the trailing 12 months ended Mar. 31, 2024, was 6.76x. Washington Asset Sale On May 1, 2024, Consolidated completed the sale of its Washington assets. Pending Transaction As previously announced on Oct. 16, 2023, Consolidated entered into an agreement to be acquired by affiliates of Searchlight Capital Partners, L.P. and British Columbia Investment Management Corporation in an all-cash transaction with an enterprise value of approximately $3.1 billion, including the assumption of debt. On Jan. 31, 2024, at a special meeting of shareholders, approximately 75% of shares held by disinterested shareholders voted to approve the proposal to adopt the merger agreement and approve the pending transaction. The transaction will result in Consolidated becoming a private company and is expected to close by the first quarter of 2025, subject to customary closing conditions, including receipt of regulatory approvals. The transaction is not subject to a financing condition. Following the closing of the transaction, shares of Consolidated common stock will no longer be traded or listed on any public securities exchange. In light of the transaction, Consolidated will not host an earnings conference call. About Consolidated Communications Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) is dedicated to moving people, businesses and communities forward by delivering the most reliable fiber communications solutions. Consumers, businesses and wireless and wireline carriers depend on Consolidated for a wide range of high-speed internet, data, phone, security, cloud and wholesale carrier solutions. With a network spanning over 61,000 fiber route miles, Consolidated is a top 10 U.S. fiber provider, turning technology into solutions that are backed by exceptional customer support. Learn more at consolidated.com. Use of Non-GAAP Financial Measures This press release includes disclosures regarding “EBITDA,” “adjusted EBITDA,” “Net debt leverage ratio,” and “adjusted diluted net income (loss) per share,” all of which are non-GAAP financial measures. Accordingly, they should not be construed as alternatives to net cash from operating or investing activities, cash and cash equivalents, cash flows from operations, net income or net income per share as defined by GAAP and are not, on their own, necessarily indicative of cash available to fund cash needs as determined in accordance with GAAP. In addition, not all companies use identical calculations, and the non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures presented in accordance with GAAP is included in the tables that follow. Adjusted EBITDA is comprised of EBITDA, adjusted for certain items as permitted or required by the lenders under our credit agreement in place at the end of each quarter in the periods presented. The tables that follow include an explanation of how adjusted EBITDA is calculated for each of the periods presented with the reconciliation to net income (loss). EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation and amortization on a historical basis. We present adjusted EBITDA for several reasons. Management believes adjusted EBITDA is useful as a means to evaluate our ability to fund our estimated uses of cash (including interest on our debt). In addition, we have presented adjusted EBITDA to investors in the past because it is frequently used by investors, securities analysts and other interested parties in the evaluation of companies in our industry, and management believes presenting it here provides a measure of consistency in our financial reporting. Adjusted EBITDA, referred to as Available Cash in our credit agreement, is also a component of the restrictive covenants and financial ratios contained in our credit agreement that requires us to maintain compliance with these covenants and limit certain activities, such as our ability to incur debt. The definitions in these covenants and ratios are based on Adjusted EBITDA after giving effect to specified charges. In addition, Adjusted EBITDA provides our board of directors with meaningful information, with other data, assumptions and considerations, to measure our ability to service and repay debt. We present the related “Net debt leverage ratio” principally to help investors understand how we measure leverage and facilitate comparisons by investors, security analysts and others. Total net debt is defined as the current and long-term portions of debt and finance lease obligations less cash, cash equivalents and short-term investments, deferred debt issuance costs and discounts on debt. Our Net debt leverage ratio differs in certain respects from the similar ratio used in our credit agreement or against comparable measures of certain other companies in our industry. These measures differ in certain respects from the ratios used in our senior notes indenture. These non-GAAP financial measures have certain shortcomings. In particular, Adjusted EBITDA does not represent the residual cash flows available for discretionary expenditures, since items such as debt repayment and interest payments are not deducted from such measure. In addition, the Net debt leverage ratio is subject to the risk that we may not be able to use the cash on the balance sheet to reduce our debt on a dollar-for-dollar basis. Management believes this ratio is useful as a means to evaluate our ability to incur additional indebtedness in the future. We present the non-GAAP measure “adjusted diluted net income (loss) per share” because our net income (loss) and net income (loss) per share are regularly affected by items that occur at irregular intervals or are non-cash items. We believe that disclosing these measures assists investors, securities analysts and other interested parties in evaluating both our company over time and the relative performance of the companies in our industry. Forward-Looking Statements Certain statements in this press release, including those relating to the current expectations, plans, strategies, and the timeline for consummating the take private transaction with Searchlight Capital Partners, L.P. and British Columbia Investment Management Corporation by the first quarter of 2025, are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect, among other things, our current expectations, plans, strategies and anticipated financial results. There are a number of risks, uncertainties and conditions that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements, including: significant competition in all parts of our business and among our customer channels; our ability to adapt to rapid technological changes; shifts in our product mix that may result in a decline in operating profitability; continued receipt of support from various funds established under federal and state laws; disruptions in our networks and infrastructure and any related service delays or disruptions could cause us to lose customers and incur additional expenses; cyber-attacks may lead to unauthorized access to confidential customer, personnel and business information that could adversely affect our business; our operations require substantial capital expenditures and our business, financial condition, results of operations and liquidity may be impacted if funds for capital expenditures are not available when needed; our ability to obtain and maintain necessary rights-of-way for our networks; our ability to obtain necessary hardware, software and operational support from third-party vendors; substantial video content costs continue to rise; our ability to enter into new collective bargaining agreements or renew existing agreements; our ability to attract and/or retain certain key management and other personnel in the future; risks associated with acquisitions and the realization of anticipated benefits from such acquisitions; increasing attention to, and evolving expectations for, environmental, social and governance initiatives; unfavorable changes in financial markets could affect pension plan investments; weak economic conditions; the risk that the proposed transaction may not be completed in a timely manner or at all; the possibility that any or all of the various conditions to the consummation of the proposed transaction may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations or restrictions placed on such approvals); the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive transaction agreement relating to the proposed transaction, including in circumstances which would require the Company to pay a termination fee; the effect of the announcement or pendency of the proposed transaction on the Company’s ability to attract, motivate or retain key executives and employees, its ability to maintain relationships with its customers, suppliers and other business counterparties, or its operating results and business generally; risks related to the proposed transaction diverting management’s attention from the Company’s ongoing business operations; the amount of costs, fees and expenses related to the proposed transaction; the risk that the Company’s stock price may decline significantly if the proposed transaction is not consummated; the risk of shareholder litigation in connection with the proposed transaction, including resulting expense or delay; and the other risk factors described in Part I, Item 1A of Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023 and the other risk factors identified from time to time in the Company’s other filings with the SEC. Filings with the SEC are available on the SEC’s website at http://www.sec.gov. Many of these circumstances are beyond our ability to control or predict. Moreover, forward-looking statements necessarily involve assumptions on our part. These forward-looking statements generally are identified by the words “believe,” “expect,” “anticipate,” “estimate,” “project,” “intend,” “plan,” “should,” “may,” “will,” “would,” “will be,” “will continue” or similar expressions. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements that appear throughout this press release. Furthermore, undue reliance should not be placed on forward-looking statements, which are based on the information currently available to us and speak only as of the date they are made. Except as required under federal securities laws or the rules and regulations of the Securities and Exchange Commission, we disclaim any intention or obligation to update or revise publicly any forward-looking statements. Tag: [Consolidated-Communications-Earnings] Consolidated Communications Holdings, Inc. Condensed Consolidated Balance Sheets (Dollars in thousands, except share and per share amounts) (Unaudited) March 31, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 7,363 $ 4,765 Accounts receivable, net 109,353 121,194 Income tax receivable 3,070 2,880 Prepaid expenses and other current assets 62,738 56,843 Assets held for sale 70,971 70,473 Total current assets 253,495 256,155 Property, plant and equipment, net 2,461,004 2,449,009 Investments 8,648 8,887 Goodwill 814,624 814,624 Customer relationships, net 14,543 18,616 Other intangible assets 10,557 10,557 Other assets 79,371 70,578 Total assets $ 3,642,242 $ 3,628,426 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 20,529 $ 60,073 Advance billings and customer deposits 48,579 44,478 Accrued compensation 47,901 58,151 Accrued interest 36,275 18,694 Accrued expense 96,750 114,022 Current portion of long-term debt and finance lease obligations 19,234 18,425 Liabilities held for sale 3,147 3,402 Total current liabilities 272,415 317,245 Long-term debt and finance lease obligations 2,234,667 2,134,916 Deferred income taxes 201,047 210,648 Pension and other post-retirement obligations 136,460 137,616 Other long-term liabilities 46,298 48,637 Total liabilities 2,890,887 2,849,062 Series A Preferred Stock, par value $0.01 per share; 10,000,000 shares authorized, 434,266 shares outstanding as of March 31, 2024 and December 31, 2023, respectively; liquidation preference of $532,643 and $520,957 as of March 31, 2024 and December 31, 2023, respectively 384,277 372,590 Shareholders' equity: Common stock, par value $0.01 per share; 150,000,000 shares authorized, 118,429,666 and 116,172,568 shares outstanding as of March 31, 2024 and December 31, 2023, respectively 1,184 1,162 Additional paid-in capital 671,241 681,757 Accumulated deficit (297,876 ) (262,380 ) Accumulated other comprehensive loss, net (15,691 ) (21,872 ) Noncontrolling interest 8,220 8,107 Total shareholders' equity 367,078 406,774 Total liabilities, mezzanine equity and shareholders' equity $ 3,642,242 $ 3,628,426 Consolidated Communications Holdings, Inc. Condensed Consolidated Statements of Operations (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2024 2023 Net revenues $ 274,675 $ 276,126 Operating expenses: Cost of services and products 113,459 131,938 Selling, general and administrative expenses 83,955 81,284 Transaction costs 2,925 — Loss on disposal of assets — 3,304 Depreciation and amortization 80,633 77,699 Loss from operations (6,297 ) (18,099 ) Other income (expense): Interest expense, net of interest income (42,451 ) (33,860 ) Other, net 1,593 2,758 Loss before income taxes (47,155 ) (49,201 ) Income tax benefit (11,772 ) (12,240 ) Net loss (35,383 ) (36,961 ) Less: dividends on Series A preferred stock 11,687 10,587 Less: net income attributable to noncontrolling interest 113 143 Net loss attributable to common shareholders $ (47,183 ) $ (47,691 ) Net loss per basic and diluted common shares attributable to common shareholders $ (0.41 ) $ (0.42 ) Consolidated Communications Holdings, Inc. Condensed Consolidated Statements of Cash Flows (Dollars in thousands) (Unaudited) Three Months Ended March 31, 2024 2023 OPERATING ACTIVITIES Net loss $ (35,383 ) $ (36,961 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 80,633 77,699 Deferred income tax expense (benefit) (11,791 ) 5,604 Pension and post-retirement contributions in excess of expense (1,702 ) (2,861 ) Non-cash, stock-based compensation 1,681 799 Amortization of deferred financing costs and discounts 1,957 1,847 Loss on disposal of assets — 3,304 Other adjustments, net (1,283 ) (418 ) Changes in operating assets and liabilities, net (28,442 ) 6,073 Net cash provided by operating activities 5,670 55,086 INVESTING ACTIVITIES Purchase of property, plant and equipment, net (98,032 ) (130,826 ) Proceeds from sale of assets 76 292 Proceeds from sale and maturity of investments 714 1,623 Net cash used in investing activities (97,242 ) (128,911 ) FINANCING ACTIVITIES Proceeds from issuance of long-term debt 100,000 — Payment of finance lease obligations (4,837 ) (3,114 ) Payment of financing costs (504 ) — Share repurchases for minimum tax withholding (489 ) (1,036 ) Net cash provided by (used in) financing activities 94,170 (4,150 ) Net change in cash and cash equivalents 2,598 (77,975 ) Cash and cash equivalents at beginning of period 4,765 325,852 Cash and cash equivalents at end of period $ 7,363 $ 247,877 Consolidated Communications Holdings, Inc. Consolidated Revenue by Category (Dollars in thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Consumer: Broadband (Data and VoIP) $ 79,882 $ 67,961 Voice services 28,336 32,263 Video services 6,626 9,594 114,844 109,818 Commercial: Data services (includes VoIP) 54,681 53,134 Voice services 30,711 32,631 Other 8,964 9,756 94,356 95,521 Carrier: Data and transport services 31,048 32,923 Voice services 3,794 4,367 Other 235 350 35,077 37,640 Subsidies 6,806 7,036 Network access 22,468 24,444 Other products and services 1,124 1,667 Total operating revenue $ 274,675 $ 276,126 Consolidated Communications Holdings, Inc. Consolidated Revenue Trend by Category (Dollars in thousands) (Unaudited) Three Months Ended Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Consumer: Broadband (Data and VoIP) $ 79,882 $ 76,458 $ 75,089 $ 71,339 $ 67,961 Voice services 28,336 29,935 31,616 31,352 32,263 Video services 6,626 7,460 8,541 9,362 9,594 114,844 113,853 115,246 112,053 109,818 Commercial: Data services (includes VoIP) 54,681 54,473 53,870 53,230 53,134 Voice services 30,711 31,217 31,825 32,236 32,631 Other 8,964 10,521 9,228 10,378 9,756 94,356 96,211 94,923 95,844 95,521 Carrier: Data and transport services 31,048 31,713 31,388 31,224 32,923 Voice services 3,794 2,868 4,090 4,263 4,367 Other 235 243 262 313 350 35,077 34,824 35,740 35,800 37,640 Subsidies 6,806 6,902 6,878 7,072 7,036 Network access 22,468 22,217 20,842 22,747 24,444 Other products and services 1,124 1,171 10,025 1,646 1,667 Total operating revenue $ 274,675 $ 275,178 $ 283,654 $ 275,162 $ 276,126 Consolidated Communications Holdings, Inc. Reconciliation of Net Loss to Adjusted EBITDA (Dollars in thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Net loss $ (35,383 ) $ (36,961 ) Add (subtract): Income tax benefit (11,772 ) (12,240 ) Interest expense, net 42,451 33,860 Depreciation and amortization 80,633 77,699 EBITDA 75,929 62,358 Adjustments to EBITDA (1): Other, net (2) 10,727 10,030 Pension/OPEB benefit 62 (1,141 ) Loss on disposal of assets — 3,304 Non-cash compensation (3) 1,681 799 Adjusted EBITDA $ 88,399 $ 75,350 Notes: (1) These adjustments reflect those required or permitted by the lenders under our credit agreement. (2) Other, net includes income attributable to noncontrolling interests, transaction and non-recurring related costs, and certain miscellaneous items. (3) Represents compensation expenses in connection with our Restricted Share Plan, which because of the non-cash nature of the expenses are excluded from adjusted EBITDA. Consolidated Communications Holdings, Inc. Reconciliation of Loss Attributable to Common Shareholders to Adjusted Loss and Calculation of Adjusted Diluted Net Loss Per Common Share (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2024 2023 Net loss $ (35,383 ) $ (36,961 ) Less: dividends on Series A preferred stock 11,687 10,587 Less: net income attributable to noncontrolling interest 113 143 Net loss attributable to common shareholders (47,183 ) (47,691 ) Adjustments to net loss attributable to common shareholders: Dividends on Series A preferred stock 11,687 10,587 Transaction and severance related costs, net of tax 3,191 2,648 Loss on disposition of assets, net of tax — 2,441 Non-cash interest expense for swaps, net of tax — (338 ) Non-cash stock compensation, net of tax 1,241 590 Adjusted net loss $ (31,064 ) $ (31,763 ) Weighted average number of common shares outstanding 114,134 112,939 Adjusted diluted net loss per common share $ (0.27 ) $ (0.28 ) Notes: Calculations above assume a 26.1% effective tax rate for each of the three months ended March 31, 2024 and 2023. Consolidated Communications Holdings, Inc. Reconciliation of Total Net Debt to LTM Adjusted EBITDA Ratio (Dollars in thousands) (Unaudited) March 31, 2024 Long-term debt and finance lease obligations: Term loans, net of discount $6,585 $ 993,290 6.50% Senior secured notes due 2028 750,000 5.00% Senior secured notes due 2028 400,000 Revolving loan 100,000 Finance leases 38,347 Total debt as of March 31, 2024 2,281,637 Less: deferred debt issuance costs (27,736 ) Less: cash, cash equivalents and short-term investments (7,363 ) Total net debt as of March 31, 2024 $ 2,246,538 Adjusted EBITDA for the 12 months ended March 31, 2024 $ 332,248 Total Net Debt to last 12 months Adjusted EBITDA 6.76x Consolidated Communications Holdings, Inc. Key Operating Metrics (Unaudited) 2023 FY 2022 Q1 Q2 Q3 Q4 FY Q1 2024 Passings Total Fiber Gig+ Capable Passings (1)(2)(3) 1,008,660 1,062,518 1,119,956 1,187,076 1,236,208 1,236,208 1,246,991 Total DSL/Copper Passings (2)(3) 1,617,077 1,564,889 1,509,875 1,447,539 1,401,535 1,401,535 1,392,698 Total Passings (1)(2)(3) 2,625,737 2,627,407 2,629,831 2,634,615 2,637,743 2,637,743 2,639,689 % Fiber Gig+ Coverage/Total Passings 38 % 40 % 43 % 45 % 47 % 47 % 47 % Consumer Broadband Connections Fiber Gig+ Capable 122,872 135,209 153,860 175,748 195,195 195,195 213,997 DSL/Copper 244,586 234,653 222,969 210,473 198,024 198,024 185,560 Total Consumer Broadband Connections 367,458 369,862 376,829 386,221 393,219 393,219 399,557 Consumer Broadband Net Adds Total Fiber Gig+ Capable Net Adds (5) 40,075 12,337 18,651 21,888 19,447 72,323 18,802 DSL/Copper Net Adds (5) (39,351 ) (9,933 ) (11,684 ) (12,496 ) (12,449 ) (46,562 ) (12,464 ) Total Consumer Broadband Net Adds (5) 724 2,404 6,967 9,392 6,998 25,761 6,338 Consumer Broadband Penetration % Fiber Gig+ Capable (on fiber passings) 12.2 % 12.7 % 13.7 % 14.8 % 15.8 % 15.8 % 17.2 % DSL/Copper (on DSL/copper passings) 15.1 % 15.0 % 14.8 % 14.5 % 14.1 % 14.1 % 13.3 % Total Consumer Broadband Penetration % 14.0 % 14.1 % 14.3 % 14.7 % 14.9 % 14.9 % 15.1 % Consumer Average Revenue Per Unit (ARPU) Fiber Gig+ Capable $ 65.42 $ 67.51 $ 68.29 $ 68.78 $ 68.14 $ 66.90 $ 67.96 DSL/Copper $ 53.36 $ 53.21 $ 55.88 $ 57.18 $ 56.27 $ 55.83 $ 59.69 Churn Fiber Consumer Broadband Churn (5) 1.1 % 1.0 % 1.3 % 1.3 % 1.2 % 1.2 % 1.1 % DSL/Copper Consumer Broadband Churn (5) 1.6 % 1.5 % 1.7 % 2.0 % 2.0 % 1.8 % 2.0 % Consumer Broadband Revenue ($ in thousands) Fiber Broadband Revenue (4) $ 82,034 $ 26,136 $ 29,613 $ 34,004 $ 37,916 $ 127,668 $ 41,613 Copper and Other Broadband Revenue 190,112 41,825 41,726 41,085 38,542 163,179 38,268 Total Consumer Broadband Revenue $ 272,146 $ 67,961 $ 71,339 $ 75,089 $ 76,458 $ 290,847 $ 79,882 Consumer Voice Connections 276,779 267,509 258,680 249,081 239,587 239,587 229,523 Video Connections 35,039 32,426 28,934 26,158 21,900 21,900 17,620 Fiber route network miles (long-haul, metro and FttP) 57,865 57,569 58,836 59,915 60,438 60,438 61,366 On-net buildings 14,427 14,520 14,735 14,928 15,105 15,105 15,254 Notes: (1) In Q1 2021, the Company launched a multi-year fiber build plan to upgrade 1.6 million passings or 70% of our service area to fiber Gig+ capable services. During the quarter ended March 31, 2024, an additional 10,783 passings were upgraded to FttP and total fiber passings were 1,246,991 or 47% of the Company's service area. (2) Passings counts are estimates of single family units, multi-dwelling units, and multi-tenant units within consumer, small business and enterprise. These counts are based upon the information available at this time and are subject to updates as additional information becomes available. (3) When a passing is both fiber and DSL/Copper capable it is counted as a fiber passing. (4) Fiber broadband revenue includes revenue from our Kansas City operations, which was sold in the fourth quarter of 2022, of approximately $1.8 million for the year ended December 31, 2022. Amounts have not been adjusted to reflect the sale. (5) Consumer Broadband net adds and churn for the year ended December 31, 2022 have been normalized to reflect the divestitures of our Kansas City and Ohio operations, which were sold in 2022. 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Investor and Media Contacts Philip Kranz, Investor Relations +1 217-238-8480 Philip.kranz@consolidated.com Jennifer Spaude, Media Relations +1 507-386-3765 Jennifer.spaude@consolidated.com
