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

Fiber Internet Expansion - Fidium Fiber, a new Gigabit consumer fiber internet product, launched in November 2021 and expanded to additional markets in May 2022, offering symmetrical speeds from 50 Mbps to 2 Gbps[561] - The company completed the sale of its five limited wireless partnership interests to Cellco Partnership for 490.0millioninSeptember2022,withproceedsusedtosupportfiberexpansion[569]FinancialPerformanceandRevenues−Totaloperatingrevenuesdecreasedby7490.0 million in September 2022, with proceeds used to support fiber expansion[569] Financial Performance and Revenues - Total operating revenues decreased by 7% to 1,110.1 million in 2023 compared to 1,191.3millionin2022[575]−Consumerbroadbandrevenuesincreasedby71,191.3 million in 2022[575] - Consumer broadband revenues increased by 7% to 290.8 million in 2023 from 272.1millionin2022[575]−Commercialdataservicesrevenuesdecreasedby6272.1 million in 2022[575] - Commercial data services revenues decreased by 6% to 214.7 million in 2023 from 228.5millionin2022[575]−Carrierdataandtransportservicesrevenuesdecreasedby7228.5 million in 2022[575] - Carrier data and transport services revenues decreased by 7% to 127.2 million in 2023 from 137.4millionin2022[575]−AdjustedEBITDAfromcontinuingoperationsdecreasedby17137.4 million in 2022[575] - Adjusted EBITDA from continuing operations decreased by 17% to 319.2 million in 2023 from 384.4millionin2022[575]−Selling,generalandadministrativecostsincreasedby13384.4 million in 2022[575] - Selling, general and administrative costs increased by 13% to 340.2 million in 2023 from 301.6millionin2022[575]−Depreciationandamortizationincreasedby5301.6 million in 2022[575] - Depreciation and amortization increased by 5% to 315.1 million in 2023 from 300.2millionin2022[575]−Lossfromcontinuingoperationsincreasedby41300.2 million in 2022[575] - Loss from continuing operations increased by 41% to 250.1 million in 2023 from 177.7millionin2022[575]−Netincomeattributabletocommonshareholdersdecreasedby394177.7 million in 2022[575] - Net income attributable to common shareholders decreased by 394% to a loss of 294.4 million in 2023 from a profit of 100.0millionin2022[575]−Thecompany′sstockperformanceshowedacumulativetotalshareholderreturnof100.0 million in 2022[575] - The company's stock performance showed a cumulative total shareholder return of 47.19 in 2023, compared to 38.84in2022[586]StrategicTransactionsandAgreements−ThecompanyenteredintoaMergerAgreementonOctober15,2023,withCondorHoldingsLLC,whereeachshareofcommonstockwillbeconvertedinto38.84 in 2022[586] Strategic Transactions and Agreements - The company entered into a Merger Agreement on October 15, 2023, with Condor Holdings LLC, where each share of common stock will be converted into 4.70 per share[564] - The Merger Agreement was approved by the company's board of directors and stockholders, with no adjournment necessary to solicit additional proxies[566] - The company entered into a definitive agreement to sell its Washington operations for gross cash proceeds of approximately 73.0million,withanimpairmentlossof73.0 million, with an impairment loss of 77.8 million recognized in 2023[572] - The company completed the sale of its Ohio operations for 26.1millioninJanuary2022,withanimpairmentlossof26.1 million in January 2022, with an impairment loss of 5.7 million recognized in 2021 and an additional loss of 0.8millionin2022[573]CostSavingsandBusinessSimplification−AbusinesssimplificationandcostsavingsinitiativeplaninitiatedinJuly2023isexpectedtoresultinannualizedsavingsofapproximately0.8 million in 2022[573] Cost Savings and Business Simplification - A business simplification and cost savings initiative plan initiated in July 2023 is expected to result in annualized savings of approximately 30.0 million, with 17.4millionrecognizedinseverancecostsin2023[568]WirelessPartnershipsandIncome−Thecompanyrecognizedincomeof17.4 million recognized in severance costs in 2023[568] Wireless Partnerships and Income - The company recognized income of 23.5 million and 41.8millionin2022and2021,respectively,fromwirelesspartnerships,withcashdistributionsof41.8 million in 2022 and 2021, respectively, from wireless partnerships, with cash distributions of 29.2 million and $43.0 million in the same periods[571] Video Services Transition - Total video connections decreased by 37% as of December 31, 2023, compared to 2022, due to the company's strategy to de-emphasize linear video services and transition customers to streaming services[563]