Core Viewpoint - Uniti Group (UNIT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive shift in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [3]. Business Improvement Indicators - The upgrade in Uniti's rating reflects an improvement in the company's underlying business, which is expected to drive the stock price higher as investors recognize this trend [4]. Earnings Estimate Revisions - Uniti is projected to earn $1.44 per share for the fiscal year ending December 2025, representing a year-over-year increase of 6.7% [7]. - Over the past three months, the Zacks Consensus Estimate for Uniti has surged by 127.4%, indicating strong upward revisions in earnings estimates [7]. Zacks Rank System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks yielding an average annual return of +25% since 1988 [6]. - The upgrade of Uniti to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].

Core Points - Uniti Group Inc. is scheduled to present at the Morgan Stanley 2025 Technology, Media & Telecom Conference on March 4, 2025 [1] - The presentation will be led by President and CEO Kenny Gunderman at 8:30 AM PST / 11:30 AM EST in San Francisco, CA [1] Company Overview - Uniti is an internally managed real estate investment trust focused on acquiring and constructing mission-critical communications infrastructure [3] - The company is a leading provider of fiber and wireless solutions for the communications industry [3] - As of December 31, 2024, Uniti owns approximately 145,000 fiber route miles and 8.8 million fiber strand miles across the United States [3]

February 21st ended up being a really exciting day for shareholders of Uniti Group Inc. (NASDAQ: UNIT ). At one point, shares of the company were up as much as 10.3%. This came afterCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live chat discussio ...

Goodwill and Impairment - The consolidated goodwill balance was $157.4 million as of December 31, 2024, all associated with the Uniti Fiber segment [300]. - The Company performed goodwill impairment testing annually and whenever events occur that may reduce the fair value of the reporting unit [300]. - The evaluation of the fair value of the Uniti Fiber reporting unit involved subjective estimates of future operations, including forecasted revenue and profit margins [302]. - A goodwill impairment charge of $204.0 million was recorded in the Uniti Fiber reporting unit during Q3 2023 due to macroeconomic factors, specifically increased interest rates [397]. - The company performed an annual goodwill impairment test on October 1, with no impairment losses recognized for the year ended December 31, 2024 [396]. - Goodwill at December 31, 2024, remains at $672.878 million, with accumulated impairment charges increasing to $515.498 million [451]. Financial Performance - Total assets increased to $5,282,145,000 in 2024 from $5,025,129,000 in 2023, representing a growth of 5.1% [313]. - Total revenues for 2024 reached $1,166,927,000, up from $1,149,831,000 in 2023, marking a year-over-year increase of 1.5% [315]. - Net income for 2024 was $93,432,000, a significant recovery from a net loss of $81,749,000 in 2023 [317]. - Total liabilities rose to $7,733,985,000 in 2024, compared to $7,509,250,000 in 2023, indicating an increase of 3.0% [313]. - Revenue from Uniti Leasing increased to $873,964,000 in 2024, up from $845,925,000 in 2023, reflecting a growth of 3.3% [315]. - Service revenues from Uniti Fiber remained stable at $231,193,000 in 2024, compared to $231,156,000 in 2023 [315]. - The company reported a basic earnings per share of $0.38 for 2024, recovering from a loss of $0.35 per share in 2023 [315]. - Comprehensive income for 2024 was $92,798,000, compared to a loss of $81,749,000 in 2023, indicating a positive turnaround [317]. Debt and Financing - The Company had no aggregate principal balance under its Revolving Credit Facility as of December 31, 2024 [290]. - The Company faces risks related to credit rating downgrades and fluctuating interest rates that could impact its business [17]. - The Company is subject to covenants in its debt agreements that may limit operational flexibility [17]. - The Company’s ability to generate sufficient cash flows to service outstanding indebtedness is critical for its financial health [17]. - The total principal balance of Uniti's Notes and other debt was $5.86 billion at December 31, 2024, with a fair value of $5.88 billion [443]. - The company has no balance under the Revolving Credit Facility as of December 31, 2024, and has $275 million under the ABS Loan Facility [458]. - The Company issued $570 million aggregate principal amount of the April 2028 Secured Notes, which mature on April 15, 2028, bearing interest at 4.75% per year [464]. - The Issuers issued $2.6 billion aggregate principal amount of February 2028 Secured Notes, with a maturity date of February 15, 2028, bearing interest at a rate of 10.50% per year [465]. - The Company issued $300 million aggregate principal amount of Convertible 2027 Notes, with an initial conversion price of approximately $7.29 per share, maturing on December 1, 2027 [482][483]. Cash Flow and Investments - Cash flow from operating activities increased to $366,695,000 in 2023, compared to $353,129,000 in 2022 [324]. - The company reported a net cash used in investing activities of $272,196,000, an improvement from $411,311,000 in the previous year [325]. - Cash, restricted cash, and cash equivalents at the end of the period totaled $183,847,000, up from $62,264,000 at the beginning of the period [325]. - The company anticipates funding $425 million for the merger and has obligations totaling $490.1 million in settlement payments, with $73.5 million remaining to be paid by December 31, 2024 [341]. - Capital expenditures for 2024 are projected at $354.8 million, while dividend payments of $108.5 million exceeded cash flow from operating activities of $366.7 million, prompting the need for additional external capital [342]. Mergers and Acquisitions - The company plans to merge with Windstream Holdings, with Uniti stockholders expected to hold approximately 62% of the combined company [330]. - A cash payment of $425 million will be distributed to Windstream equityholders upon the merger [333]. - The merger is expected to close in the second half of 2025, subject to regulatory approvals [334]. - The company has agreed to suspend dividend payments until the consummation of the merger, except for certain required dividends [336]. Revenue Recognition - Revenue from contracts with customers totaled $237.7 million in 2024, slightly down from $238.0 million in 2023, and up from $236.4 million in 2022 [412]. - Uniti Leasing revenue accounted for $873.9 million in 2024, compared to $845.9 million in 2023, and $822.9 million in 2022, indicating a growth trend [412]. - Revenue from lit fiber services is recognized over the life of contracts, with transaction prices based on monthly-recurring charges multiplied by contract terms [364]. - Construction revenue is recognized over time as construction activities occur, with costs incurred used as the measure of progress [364]. - Revenue from customer premise equipment and modems is recognized upon delivery and acceptance, while essential telecommunications services revenue is recognized over time [364]. Lease and Asset Management - Total future minimum lease payments to be received under non-cancellable operating leases as of December 31, 2024, amount to $5,003,025 thousand, including $4.1 billion related to Windstream Leases [420]. - The aggregate initial annual rent under the Windstream Leases is $663.0 million, with leases expiring on April 30, 2030 [425]. - The weighted-average remaining lease term for operating leases was 13.8 years as of December 31, 2024, compared to 13.4 years in 2023 [423]. - The company recognized lease income on a straight-line basis over the lease term for operating leases where it acts as lessor [372]. - Lease revenue is limited to the lesser of straight-line or cash basis when collectability is not probable [372]. Tax and Regulatory Matters - The company has unrecognized tax benefits of $1.7 million recorded in deferred income taxes on its Consolidated Balance Sheet [384]. - The company has elected to treat certain subsidiaries as taxable REIT subsidiaries, subjecting them to U.S. federal, state, and local corporate income taxes [382]. Stock and Shareholder Information - Common stock dividends declared for 2024 were reduced to $0.30 per share, totaling $72,974,000 [321]. - Common stock dividends declared for 2023 were $0.60 per share, totaling $142,893,000, consistent with the previous year's dividend [320]. - The total number of common shares outstanding increased to 237,513,495 by December 31, 2024, up from 236,558,601 in 2023 [321]. - The company recorded stock-based compensation of $13,508,000 in 2024, indicating a continued investment in employee incentives [321].

Financial Data and Key Metrics Changes - Uniti reported consolidated revenues of $293 million, consolidated adjusted EBITDA of $239 million, and AFFO attributed to common shareholders of $92 million for Q4 2024 [29] - The company achieved approximately 5% growth in strategic recurring revenue and 8% growth in adjusted EBITDA for the year [7][27] - AFFO per diluted common share was reported at $0.35, with a full-year AFFO expected to range between $1.40 and $1.47 per diluted share for 2025, representing a 6% increase from the prior year [37][39] Business Line Data and Key Metrics Changes - Uniti Leasing reported segment revenues of $222 million and adjusted EBITDA of $214 million, resulting in an adjusted EBITDA margin of 97% for Q4 2024 [30] - Uniti Fiber reported revenues of $72 million and adjusted EBITDA of $31 million, resulting in an adjusted EBITDA margin of 43% [31] - The number of bookings related to fiber to the home carriers increased threefold in 2023 versus 2022, with further growth in 2024 [18] Market Data and Key Metrics Changes - Hyperscaler bookings now represent about 20% of Uniti's full-year bookings, up from a very small percentage in 2023 [19] - The total addressable market (TAM) for digital infrastructure is estimated to be around $40 billion, with roughly $15 billion being spent on fiber and network investments [21] - The company expects the TAM for both digital infrastructure and fiber investments to grow by three to five times in the next five years [22] Company Strategy and Development Direction - Uniti aims to focus on best-in-class execution and disciplined top-line growth of mid-single digits and high single-digit adjusted EBITDA growth [10] - The merger with Windstream is expected to simplify the company's operations and enhance its market position, with a target of reaching 2 million homes passed with fiber by the end of 2025 [12][46] - The company plans to build new fiber, especially in the Connecticut footprint, with Windstream targeting to double the number of homes passed with fiber in 2025 compared to 2024 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the increasing demand from generative AI and the strategic value of fiber to home initiatives [10][49] - The company expects to generate positive free cash flow in 2025 and has a fully funded business plan [9][36] - Management noted that the competitive environment has been rational, with a focus on maintaining healthy yields despite market pressures [66] Other Important Information - Uniti's leverage ratio was reported at 5.8 times based on net debt to fourth quarter 2024 annualized adjusted EBITDA [38] - The company successfully completed its inaugural ABS transaction at a blended coupon of less than 6.5%, which will be used to redeem a portion of higher-yielding secured notes [39][40] - The shareholder vote to approve the merger with Windstream is set for April 2, 2025, with expectations to close the transaction in the second half of the year [12][52] Q&A Session Summary Question: What is the timing of the inference phase and opportunities in tier two and three markets? - Management indicated that the inference phase has already started, with expectations that it will grow significantly over time, particularly in tier two and three markets where Uniti is well-positioned [58][60] Question: How rational is the bidding environment with competitors? - Management believes the bidding environment has been rational, with a strong track record of winning deals at favorable economics [66] Question: What is the optimal mix of ABS versus other debt instruments? - Management stated that while they are open to increasing ABS funding, the optimal mix will depend on market conditions and opportunities for lower-cost capital [75] Question: What are the expectations for home builds and subscriber growth in 2025? - Management expects Windstream to build around 325,000 homes in 2025, nearly doubling the previous year's builds, and anticipates a corresponding increase in fiber subscribers [78][82] Question: How have hyperscaler needs changed fiber deployment strategies? - Management noted that hyperscaler needs have led to increased strand counts and capacity requirements, influencing their approach to new builds and maintenance [90][96]

Uniti Group (UNIT) came out with quarterly funds from operations (FFO) of $0.35 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to FFO of $0.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 6.06%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.34 per share when it actually produced FFO of $0.33, delivering a surprise of -2.94%.Over the last four quarter ...

Fourth Quarter and Full Year 2024 Financial Results Conference Call Presentation February 21, 2025 Together, Building the Future Cautionary Statement No Offer or Solicitation This communication and the information contained in it are provided for information purposes only and are not intended to be and shall not constitute a solicitation of any vote or approval, or an offer to sell or solicitation of an offer to buy, or an invitation or recommendation to subscribe for, acquire or buy securities of Uniti, Wi ...

Exhibit 99.1 Press Release Release date: February 21, 2025 Uniti Group Inc. Reports Fourth Quarter and Full Year 2024 Results Recently Completed Landmark ABS Financing Provides Attractive Alternative Source of Capital While Further Strengthening Uniti's Balance Sheet Provides Initial 2025 Outlook · Net Income of $21.6 Million and $93.4 Million for the Fourth Quarter and Full Year, Respectively · Net Income of $0.09 and $0.38 Per Diluted Common Share for the Fourth Quarter and Full Year, Respectively · AFFO ...

Core Insights - Uniti Group Inc. reported a transformational year in 2024, highlighted by a merger announcement with Windstream, significant growth in business segments, and efforts to strengthen its balance sheet [3][4] - The company achieved a 5% growth in core recurring strategic fiber revenue compared to 2023, with consolidated bookings increasing by 40% in Q4 2024 [3] - Uniti completed a landmark ABS financing transaction, raising $589 million, which will be used to enhance capital structure and redeem expensive debt [4][12] Financial Performance - For Q4 2024, Uniti's consolidated revenues were $293.3 million, with net income of $21.6 million and Adjusted EBITDA of $239.5 million, resulting in an Adjusted EBITDA margin of approximately 82% [5][10] - For the full year 2024, consolidated revenues reached $1.2 billion, with net income of $93.4 million and Adjusted EBITDA of $940.1 million [8][10] - Uniti Fiber generated $71.7 million in revenues and $31.1 million in Adjusted EBITDA for Q4 2024, while Uniti Leasing contributed $221.7 million in revenues and $214.5 million in Adjusted EBITDA [6] Capital Expenditures and Debt Management - Combined gross capital expenditures for Uniti Fiber and Uniti Leasing were $24.3 million in Q4 2024, offset by $23.6 million in upfront customer payments, resulting in net success-based capex of $0.7 million [7] - The company utilized proceeds from the ABS financing to repay and terminate its existing ABS bridge facility and redeem $125 million of senior secured notes due 2028 [13] 2025 Outlook - Uniti's consolidated outlook for 2025 estimates revenues between $1.196 billion and $1.216 billion, with net income attributable to common shareholders projected between $95 million and $115 million [15] - Adjusted EBITDA for 2025 is expected to range from $966 million to $986 million, with interest expenses estimated at $532 million [15] Balance Sheet and Liquidity - As of year-end 2024, Uniti had approximately $655.6 million in unrestricted cash and cash equivalents, with a leverage ratio of 5.80x based on net debt to annualized Adjusted EBITDA [14] - The total assets of Uniti increased to $5.282 billion in 2024, compared to $5.025 billion in 2023, reflecting growth in property, plant, and equipment [31]

Core Points - Uniti Group Inc. will present at the J.P. Morgan 2025 Global Leveraged Finance Conference on February 24, 2025, at 9:30 AM EST in Miami, FL [1] - The presentation will not be webcast, but investor materials will be available on Uniti's Investor Relations website [2] Company Overview - Uniti is an internally managed real estate investment trust focused on acquiring and constructing mission-critical communications infrastructure [3] - The company is a leading provider of fiber and wireless solutions for the communications industry, owning approximately 144,000 fiber route miles and 8.7 million fiber strand miles as of September 30, 2024 [3]