Uniti(US:UNIT)2019-08-08 21:12Financial Performance - Total revenues for Q2 2019 reached $264.4 million, a 6.4% increase from $247.3 million in Q2 2018[19] - Net income attributable to common shareholders for Q2 2019 was $38.2 million, compared to a net loss of $5.6 million in Q2 2018[19] - The company reported a comprehensive income of $10.1 million for Q2 2019, compared to $6.0 million in Q2 2018[22] - Net income for the six months ended June 30, 2019, was $42,039,000, compared to a net loss of $2,362,000 for the same period in 2018[30] - The company reported a net income of $42,039 for the six months ended June 30, 2019, compared to a net loss of $2,362 for the same period in 2018[187] - The company reported a net income attributable to shareholders for the three months ended June 30, 2019, was $38.717 million, compared to a loss of $3.503 million in the same period of 2018[175] Cash and Assets - Cash and cash equivalents increased significantly to $299.4 million as of June 30, 2019, up from $38.0 million at the end of 2018[17] - Total assets grew to $4.79 billion as of June 30, 2019, compared to $4.59 billion at the end of 2018[17] - The company reported a net cash increase of $261,368,000 for the six months ended June 30, 2019, compared to an increase of $16,735,000 in the same period of 2018[30] - The carrying value of property, plant, and equipment was $8.3 billion as of June 30, 2019, with net property, plant, and equipment at $3.2 billion[126] Liabilities and Debt - Total liabilities increased to $6.19 billion as of June 30, 2019, compared to $6.00 billion at the end of 2018[17] - The total principal balance of outstanding notes and other debt was $5.24 billion as of June 30, 2019, with a fair value of $5.05 billion[118] - The Company has a Senior Secured Term Loan B facility with a principal amount of $2.055 billion, maturing on October 24, 2022[144] - The Company repaid approximately $174 million in total borrowings on June 28, 2019, including $101.6 million required under the Fifth Amendment to the Credit Agreement[151] Revenue Segments - Revenue from the Master Lease with Windstream accounted for 65.2% of total revenue for the six months ended June 30, 2019, down from 70.0% in 2018[46] - Revenue from contracts with customers for the Fiber Infrastructure segment was $75.8 million for the three months ended June 30, 2019, up from $64.1 million in the same period of 2018, reflecting a growth of 18.5%[81] - The Leasing segment generated revenues of $177,042 for the three months ended June 30, 2019, compared to $173,885 in 2018, indicating a slight increase of 1.3%[185] - The Towers segment reported revenues of $3,146 for the three months ended June 30, 2019, compared to $2,472 in 2018, marking a growth of about 27.3%[185] Operating Expenses - Interest expense for Q2 2019 was $97.7 million, an increase from $79.4 million in Q2 2018[19] - The company’s operating expenses (exclusive of depreciation and amortization) increased to $40.2 million in Q2 2019, compared to $31.5 million in Q2 2018[19] - Depreciation expense for the six months ended June 30, 2019, was $194.0 million, compared to $216.9 million for the same period in 2018[127] Shareholder Equity - As of June 30, 2018, total shareholders' equity was $645,627,000, reflecting an increase from $645,403,000 as of March 31, 2018[25] - The balance of common stock increased to 183,122,757 shares by June 30, 2019, up from 175,028,835 shares as of June 30, 2018[25] - The total shareholders' equity at June 30, 2018, was $645.627 million, reflecting an increase from $644.328 million at December 31, 2017[27] Bankruptcy and Legal Issues - Windstream filed a complaint alleging that the Master Lease should be recharacterized as a financing arrangement, which could significantly affect current payments and the company's status as a REIT[192] - Windstream filed for Chapter 11 bankruptcy on February 25, 2019, following a federal court ruling against the company[215] - The court found that an "event of default" occurred regarding certain debt securities held by an entity that acquired Windstream's debt[215] - The bankruptcy filing took place in the U.S. Bankruptcy Court for the Southern District of New York[215] Future Outlook - The company expects to grow its portfolio through various transaction structures, including sale leaseback transactions and whole company acquisitions[208] - The company has deferred, reduced, or delayed cash dividends and capital expenditures as part of its plans to address potential liquidity issues related to Windstream's bankruptcy[41] - The company is subject to uncertainties regarding Windstream's bankruptcy restructuring, which could materially affect its financial condition and operations[44]