Workflow
solidated munications (CNSL) - 2023 Q4 - Annual Results
CNSLsolidated munications (CNSL)2024-03-04 16:00

Financial Performance - Fourth quarter 2023 revenue totaled 275.2million,withanetlossof(275.2 million, with a net loss of (58.6 million) compared to a net loss of (45.5million)inQ42022[4][6].−Full−year2023revenuereached45.5 million) in Q4 2022[4][6]. - Full-year 2023 revenue reached 1.11 billion, with a net loss of (294.4million)andadjustedEBITDAof294.4 million) and adjusted EBITDA of 319.2 million[12]. - Total net revenues for the year ended December 31, 2023, were 1,110,120,adecreaseof6.81,110,120, a decrease of 6.8% from 1,191,263 in 2022[23]. - Operating loss for the year ended December 31, 2023, was (158,178),comparedtoalossof(158,178), compared to a loss of (93,162) in 2022[23]. - Net loss attributable to common shareholders for the year ended December 31, 2023, was (294,424),asignificantdeclinefromnetincomeof(294,424), a significant decline from net income of 99,981 in 2022[23]. - The company reported adjusted diluted net loss per share from continuing operations of (0.26)inQ42023,comparedto(0.26) in Q4 2023, compared to (0.17) in Q4 2022[4]. - Loss from continuing operations for Q4 2023 was (47,285),comparedto(47,285), compared to (40,760) in Q4 2022[34]. - Adjusted EBITDA for Q4 2023 was 86,680,downfrom86,680, down from 101,658 in Q4 2022, reflecting a decrease of 14.7%[34]. - Adjusted net loss from continuing operations for the year ended December 31, 2023, was 127.679million,comparedto127.679 million, compared to 44.273 million in 2022, indicating a significant increase in losses[39]. Capital Expenditures and Debt - Total committed capital expenditures for Q4 2023 were 91.5million,withfull−yearcapitalexpendituresamountingto91.5 million, with full-year capital expenditures amounting to 511.8 million[5][12]. - As of December 31, 2023, the company had a net debt leverage ratio of 6.73x and maintained liquidity with approximately 4.8millionincashandshort−terminvestments[7].−NetinterestexpenseforQ42023was4.8 million in cash and short-term investments[7]. - Net interest expense for Q4 2023 was 41.6 million, an increase of 8.4millionfromtheprioryear,withaweightedaveragecostofdebtof7.048.4 million from the prior year, with a weighted average cost of debt of 7.04%[3]. - Total net debt as of December 31, 2023, was 2.148576 billion, with a Total Net Debt to last 12 months Adjusted EBITDA ratio of 6.73x[43]. Consumer Broadband Metrics - Total consumer broadband net adds were 6,998 in Q4 2023, bringing total consumer broadband net adds for the year to 25,761[6][12]. - Consumer broadband connections reached 393,219 by the end of 2023, an increase from 367,458 in 2022, showing a growth of 7% year-over-year[45]. - Total consumer broadband revenue for the year ended December 31, 2023, was 290.84million,comparedto290.84 million, compared to 272.146 million in 2022, indicating a growth of 6.9%[45]. - Fiber broadband revenue for Q4 2023 was 37.916million,upfrom37.916 million, up from 24.016 million in Q4 2022, representing a 57.5% increase[45]. - Consumer average revenue per unit (ARPU) for Fiber Gig+ capable connections was 68.14inQ42023,slightlydownfrom68.14 in Q4 2023, slightly down from 68.29 in Q3 2023[45]. Operational Changes and Acquisitions - The company entered into an agreement to be acquired by Searchlight and BCI in an all-cash transaction valued at approximately 3.1billion,expectedtoclosebyQ12025[8].−Thecompanywillnothostanearningsconferencecallduetothependingacquisitiontransaction[9].−Thecompanyreportedintegrationandseverancerelatedcostsof3.1 billion, expected to close by Q1 2025[8]. - The company will not host an earnings conference call due to the pending acquisition transaction[9]. - The company reported integration and severance related costs of 9.551 million for Q4 2023, compared to 1.498millioninQ42022,highlightingincreasedrestructuringexpenses[39].AssetandLiabilityChanges−Cashandcashequivalentsdecreasedto1.498 million in Q4 2022, highlighting increased restructuring expenses[39]. Asset and Liability Changes - Cash and cash equivalents decreased to 4,765 as of December 31, 2023, from 325,852in2022,representingadeclineof98.5325,852 in 2022, representing a decline of 98.5%[25]. - Total assets decreased to 3,628,426 as of December 31, 2023, down from 3,887,094in2022,areductionof6.63,887,094 in 2022, a reduction of 6.6%[21]. - Total current liabilities increased to 317,245 as of December 31, 2023, compared to 266,904in2022,anincreaseof18.8266,904 in 2022, an increase of 18.8%[21]. - The company reported a net cash provided by operating activities of 114,587 for the year ended December 31, 2023, down from 223,710in2022[25].−Theaccumulateddeficitincreasedto223,710 in 2022[25]. - The accumulated deficit increased to (262,380) as of December 31, 2023, from (11,866)in2022,indicatingaworseningfinancialposition[21].RevenueBreakdown−TotaloperatingrevenueforQ42023was(11,866) in 2022, indicating a worsening financial position[21]. Revenue Breakdown - Total operating revenue for Q4 2023 was 275,178, a decrease of 7.1% from 295,976inQ42022[29].−Broadband(DataandVoIP)revenueincreasedto295,976 in Q4 2022[29]. - Broadband (Data and VoIP) revenue increased to 76,458 in Q4 2023, up 1.8% from 75,089inQ32023[29].−Voiceservicesrevenuedecreasedto75,089 in Q3 2023[29]. - Voice services revenue decreased to 29,935 in Q4 2023, down 12.1% from 34,314inQ42022[29].−Videoservicesrevenuewas34,314 in Q4 2022[29]. - Video services revenue was 7,460 in Q4 2023, a decline of 37.8% compared to 11,876inQ42022[29].−Commercialdataservicesrevenuewas11,876 in Q4 2022[29]. - Commercial data services revenue was 54,473 in Q4 2023, slightly up from 53,870inQ32023[29].−Networkaccessrevenuedecreasedto53,870 in Q3 2023[29]. - Network access revenue decreased to 22,217 in Q4 2023, down from $26,308 in Q4 2022[34]. Fiber Expansion - Total Fiber Gig+ capable passings increased to 1,236,208 by the end of 2023, up from 1,008,660 at the end of 2022, reflecting a growth of 22.5%[45]. - The percentage of Fiber Gig+ coverage over total passings reached 47% by the end of 2023, compared to 38% at the end of 2022[45]. - As of December 31, 2023, the Company upgraded 227,548 passings to fiber, totaling 1,236,208 fiber passings, which represents 47% of the service area[1].