solidated munications (CNSL) - 2024 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2024 was $271.1 million, with consumer revenue at $110.3 million and commercial data services revenue at $54.6 million[1]. - Net loss for Q3 2024 was ($61.4 million), an improvement from a net loss of ($69.2 million) in Q3 2023, with net loss per share at ($0.54) compared to ($0.61) in the prior year[3]. - Adjusted EBITDA for Q3 2024 was $86.5 million, reflecting the company's operational performance[1]. - Net revenues for the three months ended September 30, 2024, were $271,088, a decrease of 4.5% from $283,654 in the same period of 2023[17]. - The net loss attributable to common shareholders for the three months ended September 30, 2024, was $(61,419), compared to $(69,162) for the same period in 2023, reflecting a 10.6% improvement[17]. - Operating expenses for the three months ended September 30, 2024, totaled $288,442, compared to $305,836 in the same period of 2023, a decrease of 5.7%[17]. - The company reported a net cash provided by operating activities of $38,635 for the three months ended September 30, 2024, compared to $35,274 for the same period in 2023, reflecting an increase of 6.7%[19]. - The adjusted net loss for the three months ended September 30, 2024, was $37,483 thousand, compared to an adjusted net loss of $34,963 thousand for the same period in 2023, indicating a 4.3% increase[30]. - The company reported interest expense, net of $44,894 thousand for the three months ended September 30, 2024, compared to $39,571 thousand for the same period in 2023, which is an increase of 13.3%[28]. Revenue Breakdown - Total operating revenue for Q3 2024 was $271,088,000, a decrease of 4.4% from $283,654,000 in Q3 2023[21]. - Broadband revenue (Data and VoIP) increased to $82,377,000 in Q3 2024, up 9.4% from $75,089,000 in Q3 2023[21]. - Voice services revenue decreased to $27,927,000 in Q3 2024, down 11.3% from $31,616,000 in Q3 2023[21]. - Commercial data services revenue (including VoIP) was $54,631,000 in Q3 2024, slightly up from $53,870,000 in Q3 2023[22]. - Carrier data and transport services revenue was $30,370,000 in Q3 2024, a decrease from $31,388,000 in Q3 2023[22]. - The company reported a decrease in voice services revenue for commercial customers to $31,518,000 in Q3 2024, compared to $31,825,000 in Q3 2023[22]. - Network access revenue increased to $21,974,000 in Q3 2024, compared to $20,842,000 in Q3 2023[22]. Assets and Liabilities - Total assets increased to $3,717,733 as of September 30, 2024, up from $3,628,426 at the end of 2023, representing a growth of 2.5%[16]. - Total liabilities rose to $3,074,341 as of September 30, 2024, compared to $2,849,062 at the end of 2023, indicating an increase of 7.9%[16]. - Long-term debt and finance lease obligations increased to $2,381,302 as of September 30, 2024, from $2,134,916 at the end of 2023, an increase of 11.5%[16]. - The total shareholders' equity decreased to $235,075 as of September 30, 2024, down from $406,774 at the end of 2023, a decline of 42.1%[16]. Capital Expenditures and Investments - Committed capital expenditures totaled $126.1 million, driven by 57,990 new fiber passings[4]. - As of September 30, 2024, the company had cash and short-term investments of approximately $44 million and $3 million of available borrowing capacity[4]. Acquisition and Corporate Changes - The company is in the process of being acquired in an all-cash transaction valued at approximately $3.1 billion, expected to close in late Q4 2024 or early Q1 2025[5]. - The transaction with Searchlight Capital Partners and British Columbia Investment Management Corporation is not subject to a financing condition and will result in the company becoming private[5]. Fiber and Broadband Metrics - Total Fiber Gig+ Capable Passings increased to 1,236,208, representing a growth of 22.5% year-over-year[32]. - Total Consumer Broadband Connections reached 393,219, with Fiber Gig+ Capable connections growing to 195,195, a 58.5% increase from the previous year[32]. - Total Consumer Broadband Net Adds for the year were 25,761, with Fiber Gig+ Capable Net Adds at 72,323[32]. - Consumer Broadband Penetration for Fiber Gig+ Capable reached 15.8%, up from 12.2% in FY 2022[32]. - Average Revenue Per Unit (ARPU) for Fiber Gig+ Capable was $68.78, showing a slight increase from $65.42 in FY 2022[32]. - DSL/Copper Net Adds showed a decline of 39,351, indicating a shift towards Fiber connections[32]. - Consumer Broadband Churn for Fiber was 1.1%, while DSL/Copper churn was 1.6%[32]. - On-net buildings increased to 15,105, reflecting ongoing market expansion efforts[32]. - Fiber route network miles reached 60,438, indicating growth in infrastructure capabilities[32]. - As of September 30, 2024, a total of 1,331,916 fiber passings were achieved, accounting for 51% of the company's service area[33]. - During the three and nine months ended September 30, 2024, an additional 57,990 and 101,734 passings were upgraded to FttP, respectively[33]. - The sale of Washington Operations in Q2 2024 led to a reduction of approximately 37,679 DSL/Copper passings and 6,026 fiber passings[33].