Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) (the
“Company” or “Consolidated”), a top 10 fiber provider in the U.S.,
today reported results for third quarter 2024.
Third Quarter 2024 Results
- Revenue totaled $271.1 million
- Overall consumer revenue was $110.3 million
- Consumer fiber broadband revenue was $49.0 million
- Consumer broadband net adds were 5,134
- Consumer broadband revenue was $82.4 million
- Commercial data services revenue was $54.6 million
- Carrier data-transport revenue was $30.4 million
- Net loss was ($61.4 million). Adjusted EBITDA was $86.5
million
- Committed capital expenditures totaled $126.1 million
Cost of services and products and selling, general and
administrative expenses collectively decreased $16.3 million versus
the prior year largely due to lower video programming costs, lower
severance costs, lower access expense, lower salaries driven by
certain cost savings initiatives, and a reduction in contract labor
costs. The decrease was partly offset by higher professional fees
for system enhancements, customer service improvements and
strategic initiatives.
Net interest expense was $44.9 million, an increase of $5.3
million versus the prior year, primarily a result of interest from
borrowings on the revolving credit facility. On Sept. 30, 2024, the
Company had 71% of its total outstanding debt at a fixed rate
through September 2026. As of Sept. 30, 2024, the weighted average
cost of debt was 7.09%.
Net loss in the third quarter of 2024 was ($61.4 million)
compared to net loss of ($69.2 million) in the third quarter of
2023. Net loss per share was ($0.54) in the third quarter of 2024
as compared to net loss per share of ($0.61) in the third quarter
of 2023. Adjusted diluted net (loss) per share excludes certain
items as outlined in the table provided in this release. Adjusted
diluted net loss per share was ($0.33) compared to ($0.31) in the
third quarter of 2023.
Capital Expenditures
Total committed capital expenditures were $126.1 million, driven
by 57,990 new fiber passings and third quarter fiber adds.
Capital Structure
As of Sept. 30, 2024, the Company maintained cash and short-term
investments of approximately $44 million, $3 million of available
borrowing capacity under the Company’s revolving credit facility
and $80 million undrawn under its term loan agreement with
Searchlight CVL AGG, L.P. as lender, in each case, subject to
customary conditions.
On Aug. 28, 2024 and Oct. 7, 2024, the Company entered into loan
agreements pursuant to which it may borrow up to an aggregate
amount of $140 million to fund further buildout of fiber
infrastructure. Approximately $44 million was borrowed under such
loans as of Sept. 30, 2024.
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, which will result in Consolidated
becoming a private company, is expected to close in late fourth
quarter 2024 or early first quarter 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 nearly 66,000 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,” “adjusted diluted net income (loss) per share,”
and “Normalized revenue,” 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.
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.
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 in late fourth quarter 2024 or early first
quarter 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)
September
30, December 31,
2024
2023
ASSETS Current assets: Cash and cash equivalents $
44,398
$
4,765
Accounts receivable, net
139,338
121,194
Income tax receivable
3,819
2,880
Prepaid expenses and other current assets
64,584
56,843
Assets held for sale
—
70,473
Total current assets
252,139
256,155
Property, plant and equipment, net
2,550,614
2,449,009
Investments
8,494
8,887
Goodwill
814,624
814,624
Customer relationships, net
9,489
18,616
Other intangible assets
10,557
10,557
Other assets
71,816
70,578
Total assets $
3,717,733
$
3,628,426
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS'
EQUITY Current liabilities: Accounts payable $
69,340
$
60,073
Advance billings and customer deposits
47,765
44,478
Accrued compensation
66,346
58,151
Accrued interest
36,824
18,694
Accrued expense
90,497
114,022
Current portion of long-term debt and finance lease obligations
20,635
18,425
Liabilities held for sale
—
3,402
Total current liabilities
331,407
317,245
Long-term debt and finance lease obligations
2,381,302
2,134,916
Deferred income taxes
173,163
210,648
Pension and other post-retirement obligations
134,342
137,616
Other long-term liabilities
54,127
48,637
Total liabilities
3,074,341
2,849,062
Series A Preferred Stock, par value $0.01 per share;
10,000,000 shares authorized, 434,266 shares outstanding as of
September 30, 2024 and December 31, 2023; liquidation preference of
$556,683 and $520,957 as of September 30, 2024 and December 31,
2023, respectively
408,317
372,590
Shareholders' equity: Common stock, par value $0.01 per
share; 150,000,000 shares authorized, 118,476,944 and 116,172,568
shares outstanding as of September 30, 2024 and December 31, 2023,
respectively
1,185
1,162
Additional paid-in capital
652,711
681,757
Accumulated deficit
(401,920
)
(262,380
)
Accumulated other comprehensive loss, net
(25,365
)
(21,872
)
Noncontrolling interest
8,464
8,107
Total shareholders' equity
235,075
406,774
Total liabilities, mezzanine equity and shareholders' equity $
3,717,733
$
3,628,426
Consolidated Communications Holdings, Inc. Condensed
Consolidated Statements of Operations (Dollars in thousands,
except per share amounts) (Unaudited)
Three Months
Ended Nine Months Ended September 30,
September 30,
2024
2023
2024
2023
Net revenues $
271,088
$
283,654
$
814,472
$
834,942
Operating expenses: Cost of services and products
113,186
132,422
340,651
391,327
Selling, general and administrative expenses
98,651
95,688
275,894
259,677
Transaction costs
612
1,126
6,712
1,986
Loss on impairment of assets held for sale
—
—
—
77,755
Loss on disposal of assets
—
6,692
—
12,380
Depreciation and amortization
76,693
79,604
237,135
236,841
Loss from operations
(18,054
)
(31,878
)
(45,920
)
(145,024
)
Other income (expense): Interest expense, net of interest income
(44,894
)
(39,571
)
(131,477
)
(110,334
)
Other, net
97
3,509
1,982
11,677
Loss before income taxes
(62,851
)
(67,940
)
(175,415
)
(243,681
)
Income tax benefit
(13,879
)
(10,220
)
(36,232
)
(40,908
)
Net loss
(48,972
)
(57,720
)
(139,183
)
(202,773
)
Less: dividends on Series A preferred stock
12,348
11,305
35,727
32,596
Less: net income attributable to noncontrolling interest
99
137
357
441
Net loss attributable to common shareholders $
(61,419
)
$
(69,162
)
$
(175,267
)
$
(235,810
)
Net loss per basic and diluted common shares attributable to
common shareholders $
(0.54
)
$
(0.61
)
$
(1.53
)
$
(2.09
)
Consolidated Communications Holdings, Inc. Condensed
Consolidated Statements of Cash Flows (Dollars in thousands)
(Unaudited)
Three Months Ended Nine Months
Ended September 30, September 30,
2024
2023
2024
2023
OPERATING ACTIVITIES Net loss $
(48,972
)
$
(57,720
)
$
(139,183
)
$
(202,773
)
Adjustments to reconcile net loss to net cash provided by operating
activities: Depreciation and amortization
76,693
79,604
237,135
236,841
Deferred income tax benefit
(13,874
)
(13,438
)
(36,245
)
(44,697
)
Pension and post-retirement contributions in excess of expense
(1,752
)
(3,704
)
(5,031
)
(9,241
)
Non-cash, stock-based compensation
2,638
2,261
7,349
5,448
Amortization of deferred financing costs and discounts
2,014
1,901
5,956
5,622
Loss on impairment of assets held for sale
—
—
—
77,755
Loss on disposal of assets
—
6,692
—
12,380
Other adjustments, net
268
614
155
(2,247
)
Changes in operating assets and liabilities, net
21,620
19,064
(34,033
)
23,505
Net cash provided by operating activities
38,635
35,274
36,103
102,593
INVESTING ACTIVITIES Purchase of property, plant and equipment, net
(106,685
)
(143,337
)
(290,262
)
(424,197
)
Proceeds from sale of assets
60
(712
)
292
6,089
Proceeds from business dispositions, net
—
—
67,458
—
Proceeds from sale and maturity of investments
—
—
714
91,623
Net cash used in investing activities
(106,625
)
(144,049
)
(221,798
)
(326,485
)
FINANCING ACTIVITIES Proceeds from issuance of long-term debt
113,834
—
243,834
—
Payment of finance lease obligations
(5,347
)
(4,138
)
(15,501
)
(11,259
)
Payment of financing costs
(1,426
)
—
(2,360
)
—
Share repurchases for minimum tax withholding
—
(48
)
(645
)
(1,084
)
Net cash provided by (used in) financing activities
107,061
(4,186
)
225,328
(12,343
)
Net change in cash and cash equivalents
39,071
(112,961
)
39,633
(236,235
)
Cash and cash equivalents at beginning of period
5,327
202,578
4,765
325,852
Cash and cash equivalents at end of period $
44,398
$
89,617
$
44,398
$
89,617
Consolidated Communications Holdings, Inc. Consolidated
Revenue by Category (Dollars in thousands) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2024
2023
2024
2023
Consumer: Broadband (Data and VoIP) $
82,377
$
75,089
$
243,664
$
214,389
Voice services
27,927
31,616
84,228
95,231
Video services
—
8,541
9,938
27,497
110,304
115,246
337,830
337,117
Commercial: Data services (includes VoIP)
54,631
53,870
163,883
160,234
Voice services
31,518
31,825
92,738
96,692
Other
9,402
9,228
26,661
29,362
95,551
94,923
283,282
286,288
Carrier: Data and transport services
30,370
31,388
91,681
95,535
Voice services
3,428
4,090
10,832
12,720
Other
267
262
786
925
34,065
35,740
103,299
109,180
Subsidies
5,934
6,878
19,113
20,986
Network access
21,974
20,842
65,585
68,033
Other products and services
3,260
10,025
5,363
13,338
Total operating revenue $
271,088
$
283,654
$
814,472
$
834,942
Consolidated Communications Holdings, Inc. Consolidated
Revenue Trend by Category (Dollars in thousands) (Unaudited)
Three Months Ended Q3 2024 Q2
2024 Q1 2024 Q4 2023 Q3 2023 Consumer:
Broadband (Data and VoIP) $
82,377
$
81,405
$
79,882
$
76,458
$
75,089
Voice services
27,927
27,965
28,336
29,935
31,616
Video services
—
3,312
6,626
7,460
8,541
110,304
112,682
114,844
113,853
115,246
Commercial: Data services (includes VoIP)
54,631
54,571
54,681
54,473
53,870
Voice services
31,518
30,509
30,711
31,217
31,825
Other
9,402
8,295
8,964
10,521
9,228
95,551
93,375
94,356
96,211
94,923
Carrier: Data and transport services
30,370
30,263
31,048
31,713
31,388
Voice services
3,428
3,610
3,794
2,868
4,090
Other
267
284
235
243
262
34,065
34,157
35,077
34,824
35,740
Subsidies
5,934
6,373
6,806
6,902
6,878
Network access
21,974
21,143
22,468
22,217
20,842
Other products and services
3,260
979
1,124
1,171
10,025
Total operating revenue $
271,088
$
268,709
$
274,675
$
275,178
$
283,654
Consolidated Communications Holdings, Inc. Reconciliation
of Historical Revenue by Category to Normalized Revenue by
Category (Dollars in thousands) (Unaudited)
Three Months Ended September 30, 2023
Historical Adjustments (1) Normalized
Consumer: Broadband (Data and VoIP) $
75,089
$
(2,044
)
$
73,045
Voice services
31,616
(754
)
30,862
Video services
8,541
(162
)
8,379
115,246
(2,960
)
112,286
Commercial: Data services (includes VoIP)
53,870
(445
)
53,425
Voice services
31,825
(452
)
31,373
Other
9,228
(21
)
9,207
94,923
(918
)
94,005
Carrier: Data and transport services
31,388
(20
)
31,368
Voice services
4,090
(1
)
4,089
Other
262
(13
)
249
35,740
(34
)
35,706
Subsidies
6,878
(604
)
6,274
Network access
20,842
(409
)
20,433
Other products and services
10,025
(59
)
9,966
Total operating revenue $
283,654
$
(4,984
)
$
278,670
Notes: (1) These adjustments reflect the removal of
operating revenues for divestitures. We completed the sale of the
Company's Washington operations on May 1, 2024.
Consolidated
Communications Holdings, Inc. Reconciliation of Historical
Revenue by Category to Normalized Revenue by Category (Dollars
in thousands) (Unaudited)
Nine Months Ended
Nine Months Ended September 30, 2024 September 30,
2023 Historical Adjustments (1) Normalized
Historical Adjustments (1) Normalized
Consumer: Broadband (Data and VoIP) $
243,664
$
(2,644
)
$
241,020
$
214,389
$
(6,135
)
$
208,254
Voice services
84,228
(930
)
83,298
95,231
(2,301
)
92,930
Video services
9,938
—
9,938
27,497
(506
)
26,991
337,830
(3,574
)
334,256
337,117
(8,942
)
328,175
Commercial: Data services (includes VoIP)
163,883
(690
)
163,193
160,234
(1,296
)
158,938
Voice services
92,738
(573
)
92,165
96,692
(1,375
)
95,317
Other
26,661
(33
)
26,628
29,362
(73
)
29,289
283,282
(1,296
)
281,986
286,288
(2,744
)
283,544
Carrier: Data and transport services
91,681
(25
)
91,656
95,535
(60
)
95,475
Voice services
10,832
(1
)
10,831
12,720
(6
)
12,714
Other
786
(17
)
769
925
(39
)
886
103,299
(43
)
103,256
109,180
(105
)
109,075
Subsidies
19,113
(812
)
18,301
20,986
(1,835
)
19,151
Network access
65,585
(541
)
65,044
68,033
(1,267
)
66,766
Other products and services
5,363
(56
)
5,307
13,338
(178
)
13,160
Total operating revenue $
814,472
$
(6,322
)
$
808,150
$
834,942
$
(15,071
)
$
819,871
Notes: (1) These adjustments reflect the removal of
operating revenues from divestitures. We completed the sale of the
Company's Washington operations on May 1, 2024.
Consolidated
Communications Holdings, Inc. Reconciliation of Net Loss to
Adjusted EBITDA (Dollars in thousands) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2024
2023
2024
2023
Net loss $
(48,972
)
$
(57,720
)
$
(139,183
)
$
(202,773
)
Add (subtract): Income tax benefit
(13,879
)
(10,220
)
(36,232
)
(40,908
)
Interest expense, net
44,894
39,571
131,477
110,334
Depreciation and amortization
76,693
79,604
237,135
236,841
EBITDA
58,736
51,235
193,197
103,494
Adjustments to EBITDA (1): Other, net (2)
25,101
21,366
58,444
36,837
Pension/OPEB benefit
62
(1,323
)
186
(3,395
)
Loss on disposal of assets
—
6,692
—
12,380
Loss on impairment
—
—
—
77,755
Non-cash compensation (3)
2,638
2,261
7,349
5,448
Adjusted EBITDA $
86,537
$
80,231
$
259,176
$
232,519
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 Nine Months Ended September
30, September 30,
2024
2023
2024
2023
Net loss $
(48,972
)
$
(57,720
)
$
(139,183
)
$
(202,773
)
Less: dividends on Series A preferred stock
12,348
11,305
35,727
32,596
Less: net income attributable to noncontrolling interest
99
137
357
441
Net loss attributable to common shareholders
(61,419
)
(69,162
)
(175,267
)
(235,810
)
Adjustments to net loss attributable to common shareholders:
Dividends on Series A preferred stock
12,348
11,305
35,727
32,596
Transaction and severance related costs, net of tax
8,097
13,099
16,190
17,062
Loss on impairment of assets held for sale
—
—
—
77,755
Loss on disposition of assets, net of tax
—
4,943
—
9,145
Non-cash interest expense for swaps, net of tax
—
(101
)
—
(732
)
Tax impact of non-deductible goodwill
1,543
3,283
7,655
(2,618
)
Non-cash stock compensation, net of tax
1,948
1,670
5,427
4,024
Adjusted net loss $
(37,483
)
$
(34,963
)
$
(110,268
)
$
(98,578
)
Weighted average number of common shares outstanding
114,303
113,054
114,231
113,015
Adjusted diluted net income (loss) per common share:
Adjusted diluted net loss per common share $
(0.33
)
$
(0.31
)
$
(0.97
)
$
(0.87
)
Notes: Calculations above assume a 26.15% effective
tax rate for the three and nine months ended September 30, 2024 and
26.13% effective tax rate for the three and nine months ended
September 30, 2023.
Consolidated Communications Holdings,
Inc. Key Operating Metrics (Unaudited)
2023
2024
FY 2022 Q1 Q2 Q3 Q4 FY
Q1 Q2 Q3 Passings
Total Fiber Gig+ Capable Passings (1)(2)(3)(5)
1,008,660
1,062,518
1,119,956
1,187,076
1,236,208
1,236,208
1,246,991
1,273,926
1,331,916
Total DSL/Copper Passings (2)(3)(5)
1,617,077
1,564,889
1,509,875
1,447,539
1,401,535
1,401,535
1,392,698
1,324,438
1,268,118
Total Passings (1)(2)(3)(5)
2,625,737
2,627,407
2,629,831
2,634,615
2,637,743
2,637,743
2,639,689
2,598,364
2,600,034
% Fiber Gig+ Coverage/Total Passings
38%
40%
43%
45%
47%
47%
47%
49%
51%
Consumer Broadband Connections
Fiber Gig+ Capable (5)
122,872
135,209
153,860
175,748
195,195
195,195
213,997
231,187
249,656
DSL/Copper (5)
244,586
234,653
222,969
210,473
198,024
198,024
185,560
163,199
149,864
Total Consumer Broadband Connections (5)
367,458
369,862
376,829
386,221
393,219
393,219
399,557
394,386
399,520
Consumer Broadband Net Adds
Total Fiber Gig+ Capable Net Adds (6)
40,075
12,337
18,651
21,888
19,447
72,323
18,802
17,759
18,469
DSL/Copper Net Adds (6)
(39,351)
(9,933)
(11,684)
(12,496)
(12,449)
(46,562)
(12,464)
(14,089)
(13,335)
Total Consumer Broadband Net Adds (6)
724
2,404
6,967
9,392
6,998
25,761
6,338
3,670
5,134
Consumer Broadband Penetration
% Fiber Gig+ Capable (on fiber passings)
12.2%
12.7%
13.7%
14.8%
15.8%
15.8%
17.2%
18.1%
18.7%
DSL/Copper (on DSL/copper passings)
15.1%
15.0%
14.8%
14.5%
14.1%
14.1%
13.3%
12.3%
11.8%
Total Consumer Broadband Penetration %
14.0%
14.1%
14.3%
14.7%
14.9%
14.9%
15.1%
15.2%
15.4%
Consumer Average Revenue Per Unit
(ARPU) Fiber Gig+ Capable $
65.42
$
67.51
$
68.29
$
68.78
$
68.14
$
66.90
$
67.96
$
67.95
$
68.00
DSL/Copper $
53.36
$
53.21
$
55.88
$
57.18
$
56.27
$
55.83
$
59.69
$
60.88
$
62.63
Churn Fiber Consumer Broadband
Churn (6)
1.1%
1.0%
1.3%
1.3%
1.2%
1.2%
1.1%
1.4%
1.4%
DSL/Copper Consumer Broadband Churn (6)
1.6%
1.5%
1.7%
2.0%
2.0%
1.8%
2.0%
2.4%
2.5%
Consumer Broadband Revenue
($ in thousands) Fiber Broadband
Revenue (4) $
82,034
$
26,136
$
29,613
$
34,004
$
37,916
$
127,668
$
41,613
$
45,414
$
48,966
Copper and Other Broadband Revenue
190,112
41,825
41,726
41,085
38,542
163,179
38,268
35,992
33,411
Total Consumer Broadband Revenue $
272,146
$
67,961
$
71,339
$
75,089
$
76,458
$
290,847
$
79,882
$
81,406
$
82,377
Consumer Voice Connections (5)
276,779
267,509
258,680
249,081
239,587
239,587
229,523
213,472
203,231
Video Connections
35,039
32,426
28,934
26,158
21,900
21,900
17,620
134
—
Fiber route network miles (long-haul, metro and FttP)
57,865
57,569
58,836
59,915
60,438
60,438
61,366
63,343
65,561
On-net buildings
14,427
14,520
14,735
14,928
15,105
15,105
15,254
15,381
15,566
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
three and nine months ended September 30, 2024, an additional
57,990 and 101,734 passings were upgraded to FttP, respectively,
and total fiber passings were 1,331,916 or 51% of the Company's
service area at September 30, 2024. (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) The sale of our Washington operations in the
second quarter of 2024 resulted in a reduction of approximately
37,679 DSL/Copper passings, 6,026 fiber passings, 8,272 DSL/Copper
broadband connections, 569 fiber broadband connections, and 4,674
consumer voice connections. Prior period amounts have not been
adjusted to reflect the sale. (6) 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. Additionally, for the three months ended
June 30, 2024, Consumer Broadband net adds and churn have been
normalized to reflect the divestiture of the Washington operations,
which was sold in the second quarter of 2024.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241104896473/en/
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 Communicati... (NASDAQ:CNSL)
Historical Stock Chart
From Oct 2024 to Nov 2024
Consolidated Communicati... (NASDAQ:CNSL)
Historical Stock Chart
From Nov 2023 to Nov 2024
