Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) Q3 2022 Results Conference Call November 1, 2022 8:30 AM ET Company Participants Jennifer Spaude - Senior Vice President, Investor Relations and Corporate Communications Bob Udell - President and CEO Steve Childers - Chief Financial Officer Conference Call Participants Greg Williams - Cowen Michael Rollins - Citi Jason Kim - Goldman Sachs Stephen Sikora - Aetna Ana Goshko - Bank of America Operator Good morning. My name is Dennis, and I will be your c ...

Presentation title Month, XX, 2021 Nov. 1, 2022 Q3 2022 EARNINGS Safe Harbor Statement Certain statements in this communication are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forwardlooking 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 ...

Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) Q2 2022 Earnings Conference Call August 4, 2022 8:30 AM ET Company Participants Jennifer Spaude - Senior Vice President, Investor Relations and Corporate Communications Bob Udell - President and CEO Steve Childers - Chief Financial Officer Conference Call Participants Greg Williams - Cowen Ana Goshko - Bank of America Joe Choi - FPA Operator Ladies and gentlemen, good morning. My name is Abby, and I will be your conference operator today. At this time ...

Presentation title Month, XX, 2021 Aug. 2, 2022 Q2 2022 EARNINGS Safe Harbor Statement Certain statements in this communication are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forwardlooking 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 ...

Investment and Financing - Searchlight Capital Partners invested an aggregate of $425.0 million, holding approximately 34% of the Company's outstanding common stock as of June 30, 2022[28]. - Searchlight Investment committed to invest up to $425.0 million, with $350.0 million already invested for approximately 8% of the Company's common stock[54]. - The company issued $750 million of 6.50% Senior Notes due 2028, priced at par, with interest payable semi-annually[93]. - The company also issued $400 million of 5.00% Senior Notes due 2028, with proceeds used to repay $397 million of Term Loans[94]. - The interest rate on Term Loans was reduced to 3.50% plus LIBOR following the second amendment to the Credit Agreement[88]. - The Note from Searchlight bore interest at 9.0% per annum, with a term of 10 years due on October 1, 2029[59]. Revenue and Financial Performance - For the quarter ended June 30, 2022, total operating revenues were $298.4 million, a decrease of 6.8% from $320.4 million in the same quarter of 2021[41]. - Adjusted EBITDA decreased by $19.2 million (15%) to $107.5 million for the quarter ended June 30, 2022, compared to $126.7 million in the same period of 2021[169]. - The Company recognized previously deferred revenues of $122.6 million and $113.4 million for the quarters ended June 30, 2022 and 2021, respectively[44]. - The company recognized an impairment loss of $126.5 million during the six months ended June 30, 2022, related to assets classified as held for sale[66]. - Net loss attributable to common shareholders for the quarter ended June 30, 2022, was $(11,517) thousand, compared to $(55,356) thousand for the same period in 2021, representing a significant improvement[53]. Operating Metrics - Broadband revenue for the quarter was $67.6 million, slightly down from $68.0 million year-over-year, while voice services revenue decreased from $40.2 million to $36.6 million[41]. - The company upgraded approximately 142,300 and 226,000 passings during the quarter and six months ended June 30, 2022, respectively, and added approximately 9,600 and 17,300 consumer fiber Gig-capable subscribers[149]. - Total voice connections decreased by 9% as of June 30, 2022, compared to 2021, while total video connections decreased by 22% in the same period[152][153]. - Consumer customers decreased by 29,456 (6%) to 505,614 as of June 30, 2022, compared to 535,070 in 2021[171]. - Fiber Gig+ capable connections increased by 25,934 (33%) to 103,455 as of June 30, 2022, compared to 77,521 in 2021[171]. Expenses and Costs - Total operating expenses decreased by $6.5 million (2%) to $283.9 million for the quarter ended June 30, 2022, compared to $290.4 million in the same period of 2021[1]. - Selling, general and administrative costs increased by $6.5 million and $12.9 million during the quarter and six months ended June 30, 2022, respectively, due to increased advertising and employee labor costs[196]. - Depreciation and amortization expense decreased by $3.6 million and $6.8 million during the quarter and six months ended June 30, 2022, respectively, primarily due to a decline in amortization expense for customer relationships[198]. - Interest expense, net of interest income, decreased by $15.2 million and $34.1 million during the quarter and six months ended June 30, 2022, respectively, compared to the same periods in 2021[219]. Tax and Regulatory Matters - The effective tax rate for the quarter ended June 30, 2022, was 45.8%, compared to (10.9)% for the same quarter in 2021, indicating significant fluctuations in tax expenses[132]. - Unrecognized tax benefits as of June 30, 2022, were $4.9 million, with a net amount of $4.7 million that could impact the effective tax rate if recognized[129]. - The company recorded a net periodic post-retirement cost of $513 thousand for the quarter ended June 30, 2022, up from $462 thousand in the same quarter of 2021[127]. - The company has reserved $0.8 million and $1.6 million for potential additional tax liabilities related to ongoing audits for its subsidiaries[138]. Strategic Initiatives and Sales - The Company plans to upgrade approximately 1.6 million passings over five years, with 400,000 homes and small businesses targeted for upgrades in 2022[28]. - The sale of five limited wireless partnership interests to Cellco Partnership is expected to close by the end of 2022 for an aggregate purchase price of $490.0 million, with a pre-tax gain of approximately $390.0 million anticipated[29][31]. - The company completed the sale of its non-core rural ILEC business in Ohio for approximately $26.0 million in cash on January 31, 2022[60]. - An additional agreement was made to sell the Kansas City operations for estimated cash consideration of approximately $91.7 million, expected to close by the end of 2022[62]. - The strategic investment with Searchlight Capital Partners L.P. provided the company with $425.0 million, enabling acceleration of fiber expansion plans and enhancements to its broadband services[156].

Presentation title Month, XX, 2021 May 5, 2022 Q1 2022 EARNINGS Safe Harbor Statement Certain statements in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the 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 material ...

Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) Q1 2022 Earnings Conference Call May 5, 2022 8:30 AM ET Company Participants Jennifer Spaude - Senior Vice President of Corporate Communications and Investor Relations Robert Udell - President and Chief Executive Officer Steve Childers - Chief Financial Officer Conference Call Participants James Cotter - Cowen and Company, LLC Jason Kim - Goldman Sachs Group, Inc. Operator Good morning. My name is Brent and I will be your conference operator today. At ...

Investment and Ownership - Searchlight Capital Partners invested an aggregate of $425.0 million, holding approximately 34% of the Company's outstanding common stock as of March 31, 2022[28]. - Searchlight invested an additional $75.0 million and converted the Note into 434,266 shares of Series A Preferred Stock, representing approximately 34% of the Company's outstanding common stock as of March 31, 2022[53]. - As of March 31, 2022, shares of common stock issued to Searchlight represented approximately 34% of the company's outstanding common stock[152]. Financial Performance - Total operating revenues for the quarter ended March 31, 2022, were $300.3 million, a decrease from $324.8 million in the same quarter of 2021, representing a decline of approximately 7.5%[38]. - The net loss for the quarter ended March 31, 2022, was $115.5 million, compared to a net loss of $62.1 million for the same quarter in 2021[50]. - Adjusted EBITDA decreased by $19.4 million or 15% to $107.2 million for the quarter ended March 31, 2022 compared to the same period in 2021[159]. - EBITDA for Q1 2022 was $(23.99) million, a decrease from $56.64 million in Q1 2021[217]. - Cash flows from operating activities were $81.6 million in Q1 2022, a decrease of $16.9 million compared to Q1 2021[221]. Revenue Breakdown - Broadband revenue for the quarter was $65.9 million, slightly up from $65.8 million in the prior year, while video services revenue decreased to $14.4 million from $16.8 million[38]. - Voice services revenues decreased by $2.9 million or 7% primarily due to a 13% decline in access lines for the quarter ended March 31, 2022[166]. - Video services revenues decreased by $2.4 million or 14% due to a 21% decrease in connections as consumers shift to alternative video services[168]. - Data services revenues increased by $0.9 million during the quarter ended March 31, 2022, driven by growth in dedicated Internet access and SD-WAN services[172]. - Subsidies revenues decreased by $10.8 million during Q1 2022 compared to Q1 2021, primarily due to a reduction in federal subsidies support[179]. Expenses and Costs - Cost of services and products decreased by $8.1 million during Q1 2022 compared to Q1 2021, driven by lower access expenses and a 21% decline in video connections[183]. - Selling, general and administrative costs increased by $6.4 million during Q1 2022 compared to Q1 2021, due to higher advertising expenses and increased employee labor costs[184]. - Depreciation and amortization expense decreased by $3.2 million during Q1 2022 compared to Q1 2021, primarily due to a decline in amortization expense for customer relationships[186]. - Interest expense, net of interest income, decreased by $18.9 million during Q1 2022 compared to Q1 2021, due to a reduction in the annual interest rate from refinancing[208]. Asset Sales and Impairments - The Company completed the sale of its non-core rural ILEC business in Ohio for approximately $26.0 million in cash on January 31, 2022[58]. - The Company entered into a definitive agreement to sell its Kansas City operations for estimated cash consideration of approximately $90.4 million, expected to close in the second half of 2022[60]. - An impairment loss of $126.5 million was recognized during the quarter ended March 31, 2022, related to assets classified as held for sale[64]. - The company completed the sale of non-core assets in Ohio for cash proceeds of $26.0 million[226]. Capital Expenditures and Investments - Capital expenditures in Q1 2022 were $156.5 million, compared to $76.0 million in Q1 2021, with expected total capital expenditures for 2022 between $475.0 million and $495.0 million[225]. - Cash used in investing activities was $104.6 million in Q1 2022, primarily for capital expenditures and short-term investments[224]. Debt and Financing - Long-term debt, excluding finance leases, had a carrying value of $2,139,963 thousand as of March 31, 2022, with a fair value of $1,967,039 thousand[76]. - The company has a senior secured credit facility with term loans totaling $1,250 million and a revolving loan facility of $250 million[80]. - The weighted-average interest rate on outstanding borrowings under the credit facility was 4.25% as of March 31, 2022[88]. - The company issued $400 million of 5.00% Senior Notes due 2028, with proceeds used to repay $397 million of Term Loans[93]. Taxation - The effective tax rate for the quarters ended March 31, 2022, and 2021, was 8.2% and 7.9%, respectively[129]. - The company recorded a current tax expense increase of $20.1 million related to an $83.7 million impairment loss of noncash goodwill that is not deductible for tax purposes[129]. - The effective tax rate for the quarter ended March 31, 2022, was approximately 27.2%, compared to 26.0% for the same quarter in 2021[132]. Customer Metrics - Consumer customers decreased by 37,294 or 7% to 507,767 as of March 31, 2022 compared to 545,061 in 2021[162]. - Fiber Gig+ capable connections increased by 19,317 or 26% to 93,812 as of March 31, 2022 compared to 74,495 in 2021[162]. - Total voice connections decreased by 9% as of March 31, 2022, compared to 2021[146]. - Total video connections decreased by 21% as of March 31, 2022, compared to 2021[147]. Future Plans and Expectations - The Company plans to upgrade approximately 1.6 million passings over five years to enable multi-Gig capable services, with 400,000 homes targeted for upgrade in 2022[28]. - The company intends to use proceeds from asset sales to further its fiber expansion plans[153]. - The company expects to contribute approximately $20.5 million to its Pension Plans and $8.2 million to its Post-retirement Plans in 2022[125]. - The company expects a reduction in federal subsidies of approximately $42.2 million annually as of January 1, 2022[148].

Presentation title Month, XX, 2021 March 3, 2022 Q4 2021 EARNINGS Safe Harbor The Securities and Exchange Commission ("SEC") encourages companies to disclose forward-looking information so that investors can better understand a company's future prospects and make informed investment decisions. Certain statements in this communication are forward-looking statements and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These forward-looking statements reflect, am ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission file number 000-51446 | --- | --- | --- | |------------------------------------------------------|---------- ...