Financial Data and Key Metrics Changes - Operating revenue for Q4 2021 totaled $318.5 million, down 2.3% year-over-year [18] - Adjusted EBITDA was $126.2 million, resulting in a 39.6% adjusted EBITDA margin for the quarter [18] - Capital expenditures for Q4 were $176.3 million, totaling $515.8 million for the year [18][19] - Net debt leverage was 3.78 times as of December 31, slightly up from the end of Q3 [26] Business Line Data and Key Metrics Changes - Consumer channel revenue was $121.9 million, down 2.7% year-over-year, with broadband growth contributing to a 1.1% increase in consumer broadband revenue [20][21] - Commercial and carrier revenue totaled $143.3 million, down 4.3%, with data and transport revenue at $90.1 million, down 2.9% year-over-year [22][23] - Fiber net additions reached 4,500 in Q4, with a total of 15,500 fiber net additions in the first year of the build plan [7][11] Market Data and Key Metrics Changes - The company upgraded 330,700 fiber passings in 2021, doubling fiber coverage to 22% of addressable markets [11] - The fiber build plan aims to upgrade 1.6 million locations, or 70% of the total footprint, by 2025 [11][32] - The company is positioned to capitalize on government programs and broadband infrastructure grants, recently receiving $18.3 million for fiber expansion in Maine [12] Company Strategy and Development Direction - The company is focused on a fiber-first strategy, with a five-year plan to expand fiber services and improve customer experience [4][32] - The launch of the Fidium fiber brand aims to simplify broadband offerings and enhance customer acquisition [6][32] - The strategy includes leveraging unique fiber assets for commercial and carrier data transport growth, targeting long-term relationships with businesses [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth plan and the potential for significant returns in markets with limited competition [20] - The company anticipates 2022 to be a pivotal year for EBITDA growth, with expectations of net positive fiber net adds [30][52] - Management highlighted the importance of executing the fiber expansion plan and maintaining a disciplined capital allocation strategy [34] Other Important Information - The company announced the sale of its Kansas City assets, expected to close in the second half of 2022, with estimated net proceeds of approximately $90 million [27][28] - The Kansas City market is considered highly competitive, and the divestiture aligns with the company's capital allocation plan [28] - The company ended the year with over $460 million in liquidity, providing flexibility for its build plan [27] Q&A Session Summary Question: Update on government funding and margin trajectory - Management is assessing opportunities for government funding and believes Q1 2022 will likely be the low point for EBITDA margins [37][39] Question: Full-year EBITDA contribution from Kansas City assets - The Kansas City assets are expected to contribute between $3 to $4 million for Q4, with annualizing that figure for full-year impact [41][42] Question: Labor costs and leverage expectations - Management indicated that 2022 is expected to be the high point for leverage, with confidence in EBITDA growth and margin expansion [49][52] Question: Liquidity profile and cash flow expectations - Management expressed confidence in the liquidity position and the ability to execute the growth plan despite potential working capital uses [57][60] Question: Stranded costs from divested assets - There may be some stranded costs associated with the divestitures, but management is focused on managing these costs over time [61]

Financial Data and Key Metrics Changes - Operating revenue for Q3 2021 totaled $318.6 million, down 2.6% year-over-year, primarily due to declines in legacy products for voice, video, and network access, partially offset by growth in strategic revenues for data and transport and consumer broadband services [23][24] - Adjusted EBITDA was $127.4 million, representing a 40% adjusted EBITDA margin for the quarter [23] - Consumer broadband revenue was $68.6 million, up approximately 1% sequentially and up 2.1% year-over-year, marking the tenth consecutive quarter of year-over-year growth in broadband revenue [24][25] Business Line Data and Key Metrics Changes - Total consumer revenue was $125.4 million, down 2.4% year-over-year, with over 75% of the decline attributed to linear video services [24] - Data and transport revenue in the commercial and carrier segment totaled $91.1 million, up approximately 1.1% year-over-year, indicating continued growth in this area [31] - Commercial voice revenue declined by $2.7 million or 6% due to access declines and migration to VoIP solutions [31] Market Data and Key Metrics Changes - The company upgraded 97,000 passings to fiber Gig capable service in Q3 2021, with a total of 219,000 upgrades year-to-date, on track to exceed the target of 300,000 fiber upgrades for the year [9][10] - Fiber gig subscriber base increased by over 20% year-to-date, with more than 4,000 net one gig subscribers added in Q3 [12][26] - The total fiber gig plus penetration at the end of Q3 was 13%, measured on total inventory, including recently upgraded passings [27] Company Strategy and Development Direction - The company is focused on a multiyear value creation fiber expansion plan, aiming to upgrade 1.6 million passings by the end of 2025, which represents over 70% of total passings [10][44] - A new brand launch is expected to enhance customer experience and offer superior gig symmetrical speeds, with no data caps and competitive pricing [14][18] - The strategy includes leveraging fiber network investments to grow commercial and carrier data transport revenue, with a focus on Ethernet and 5G network opportunities [22][44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about business recovery from the pandemic and the receptiveness of customers to in-person meetings [22] - The company anticipates a step down in revenue and margins in 2022 due to the decline in CAF 2 revenue, but expects to show sequential growth later in the year and full-year growth in 2023 [55][56] - The management highlighted the importance of public/private partnerships to maximize infrastructure funding opportunities [60][62] Other Important Information - Capital expenditures for Q3 totaled $144.3 million, with year-to-date CapEx at $339.5 million, reflecting proactive measures to secure fiber materials amid supply chain challenges [37][39] - The company recorded a non-cash pretax loss of $5.7 million on assets held for sale, related to the sale of non-core Ohio assets for approximately $26 million [34] Q&A Session Summary Question: Customer mix in terms of net ads from existing DSL customers versus new relationships - Management indicated that the mix started at 60% new and 40% upgrades, now shifting to 80% new and 20% upgrades as they exit Q3 [46] Question: Supply chain concerns and CapEx guidance - Management confirmed they are seeing supply constraints and have increased inventory, pulling forward some 2022 CapEx to 2021 due to anticipated supply chain issues [51][54] Question: Tailwinds or headwinds for 2022 EBITDA outlook - Management noted infrastructure funding as a potential tailwind and emphasized the importance of public/private partnerships to maximize opportunities [60][62]

Investment and Financing - Searchlight Capital Partners committed to invest up to $425.0 million, enabling the company to enhance its fiber infrastructure and upgrade approximately 1.6 million passings over the next five years[27]. - The company has received a total investment commitment of $425 million from Searchlight, with $350 million already invested, representing approximately 24.5% of the company's outstanding common stock[57][59]. - The second stage of the investment from Searchlight, amounting to an additional $75 million, is expected to close later this year, pending regulatory approvals[58][60]. - The company completed a refinancing of long-term debt, issuing $2,250 million in new secured debt[155]. - The company issued $400 million of 5.00% Senior Notes due 2028 on March 18, 2021, to repay a portion of outstanding Term Loans[93]. - The company incurred a loss of $12.0 million on the extinguishment of debt related to the repayment of $397.0 million of outstanding term loans during the nine months ended September 30, 2021[211]. Revenue and Earnings - Total operating revenues for the quarter ended September 30, 2021, were $318.584 million, a decrease from $327.066 million in the same quarter of 2020[44]. - For the quarter ended September 30, 2021, the company reported a net loss of $4.481 million compared to a net income of $14.582 million for the same quarter in 2020[56]. - The diluted earnings per share (EPS) for the quarter was $(0.05), a decrease from $0.20 in the same quarter of the previous year[56]. - Adjusted EBITDA for the quarter was $127.4 million, down $4.8 million (4%) from $132.2 million in the previous year[165]. - EBITDA for Q3 2021 was $117.4 million, down from $131.0 million in Q3 2020; nine-month EBITDA was $245.9 million, compared to $397.3 million in the same period in 2020[222]. - Adjusted EBITDA for Q3 2021 was $127.4 million, slightly down from $132.2 million in Q3 2020; nine-month adjusted EBITDA was $380.7 million, compared to $396.9 million in 2020[222]. Assets and Liabilities - Accounts receivable, net, increased to $133.524 million as of September 30, 2021, compared to $119.076 million as of September 30, 2020[45]. - Contract liabilities rose to $62.210 million as of September 30, 2021, from $56.086 million as of September 30, 2020[45]. - As of September 30, 2021, the company held $154.963 million in short-term investments, primarily in held-to-maturity debt securities[66]. - Long-term debt increased to $2.115 billion as of September 30, 2021, compared to $1.933 billion at December 31, 2020[81]. - The fair value of long-term debt, excluding finance leases, was $2.225 billion as of September 30, 2021, compared to $2.040 billion at December 31, 2020[78]. - The estimated fair value of the contingent payment obligation (CPR) was $105.8 million as of September 30, 2021, down from $123.2 million at the end of 2020[75]. Operational Performance - The company plans to upgrade approximately 300,000 homes and small businesses in 2021 as part of its fiber build plan[27]. - The company plans to upgrade approximately 1.6 million passings over five years to enable multi-Gig capable services[147]. - The company operates an advanced fiber network spanning approximately 50,000 fiber route miles across a 23-state service area, focusing on broadband and business communications[142]. - Commercial and carrier services are the largest source of operating revenues and are expected to be key growth areas in the future[143]. - Total video connections decreased by 14% as of September 30, 2021, compared to the same date in 2020[148]. - Total voice connections decreased by 7% as of September 30, 2021, compared to 2020[149]. Tax and Regulatory Matters - The effective tax rate for the quarter ended September 30, 2021, was 1,047.9%, significantly higher than 23.9% for the same quarter in 2020, primarily due to non-cash adjustments related to the Searchlight and Ohio transactions[131]. - The company has reserved $0.8 million and $1.6 million for potential additional tax liabilities related to ongoing audits for its subsidiaries[135]. - The company does not expect any material change in its unrecognized tax benefits during the remainder of 2021, which stood at $4.9 million as of September 30, 2021[125]. Impairments and Losses - The company recognized an impairment loss of $5.7 million during the quarter and nine months ended September 30, 2021, related to assets held for sale[36]. - The company recognized a loss of $99.6 million on the increase in the fair value of the contingent payment right (CPR) during the nine months ended September 30, 2021[63]. - The company recorded a $5.7 million impairment loss related to noncash goodwill during the quarter due to the Ohio transaction[218]. Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2021, were $295.98 million, compared to $297.35 million in the same period in 2020[225]. - Cash used in investing activities for the nine months ended September 30, 2021, was $(493.13) million, significantly higher than $(144.81) million in 2020[225]. - Cash provided by financing activities for the nine months ended September 30, 2021, was $140.27 million, compared to $(65.21) million in the same period in 2020[225].

Cowen 7th Annual Communications Infrastructure Summit Aug. 10, 2021 NASDAQ: CNSL | www.consolidated.com 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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 000-51446 | --- | --- | --- | |----------------------------------------------------------------------------|---------------------------------------------- ...

Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) Q2 2021 Results Earnings Conference Call July 29, 2021 10:00 AM ET Company Participants Jennifer Spaude - SVP, Corporate Communications & IR Bob Udell - President, CEO Steven Childers - CFO & Treasurer Conference Call Participants Greg Williams - Cowen Eric Luebchow - Wells Fargo Ana Goshko - Bank of America Operator I would like to welcome everyone to the Consolidated Communications Second Quarter Earnings Conference Call. Please be advised that toda ...

Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) Q1 2021 Earnings Conference Call April 29, 2021 10:00 AM ET Company Participants Jennifer Spaude - SVP, Corporate Communications & IR Robert Udell - President, CEO & Director Steven Childers - CFO & Treasurer Conference Call Participants Gregory Williams - Cowen and Company Eric Luebchow - Wells Fargo Securities Michael Rollins - Citigroup Rob Williams - Octagon Credit Investment Operator Good morning. My name is Tamika, and I will be your conference ...

Q1 2021 Earnings April 29, 2021 tions NASDAQ: CNSL | www.consolidated.com 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 ref ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 000-51446 CONSOLIDATED COMMUNICATIONS HOLDINGS, INC. (Exact name of registrant as specified in its charter) | --- | --- | |------------------------------ ...

| --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | 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 ...