Frontier Communications(FYBR) - 2024 Q3 - Quarterly Results

Financial Performance - Revenue of $1.49 billion, an increase of 3.7% year-over-year, driven by fiber-based product growth[2] - Adjusted EBITDA of $549 million, up 4.4% year-over-year, despite higher customer acquisition costs[2] - Operating income for the three months ended September 30, 2024, was $86 million, down from $114 million in the same period last year, representing a 24.6% decrease[24] - Net loss for the three months ended September 30, 2024, was $(82) million, compared to a net income of $11 million in the same period last year[24] - For the nine months ended September 30, 2024, total revenue was $4,431 million, a 2.5% increase from $4,325 million in the same period last year[25] - Basic net loss per common share for the three months ended September 30, 2024, was $(0.33), compared to earnings of $0.05 in the same period last year[24] - Interest expense for the three months ended September 30, 2024, was $(203) million, an increase from $(170) million in the same period last year[24] - The company reported a net loss of $(204) million for the nine months ended September 30, 2024, compared to a net income of $12 million for the same period last year[40] Customer Growth and Metrics - Fiber broadband customer growth of 19.3% year-over-year with 108,000 new customers added[2] - Broadband customers reached 3,057 thousand as of September 30, 2024, up from 2,913 thousand a year ago, representing a year-over-year increase of 4.9%[32] - Net customer additions for broadband were 47 thousand in Q3 2024, compared to 15 thousand in Q3 2023, showing a significant improvement[32] - Fiber broadband customers increased to 2,157 thousand, compared to 2,053 thousand in the previous quarter, reflecting a growth of 5.1%[42] - The total number of broadband customers reached 2,823 thousand, compared to 2,774 thousand in the previous quarter, indicating a growth of 1.8%[42] Revenue Breakdown - Consumer fiber broadband revenue increased by 21.8% year-over-year to $414 million[3] - Business and Wholesale revenue rose by 7.6% year-over-year to $682 million[4] - Revenue from Data and Internet services for the three months ended September 30, 2024, was $1,004 million, a 12.2% increase from $895 million in the same period last year[27] - Revenue from Fiber services for the three months ended September 30, 2024, was $867 million, up from $760 million in the same period last year, indicating a 14.1% growth[29] - Total broadband revenue for the company reached $595 million for the quarter ended September 30, 2024, up from $583 million in the previous quarter[42] Capital Expenditures and Cash Flow - Total cash capital expenditures amounted to $699 million[2] - Capital expenditures for the three months ended September 30, 2024, were $699 million, an increase from $671 million in the same period last year[24] - Net cash provided from operating activities was $618 million for Q3 2024, compared to $383 million in Q3 2023, marking a 61.5% increase[37] - Net cash provided from operating activities was $1,327 million, an increase from $1,048 million year-over-year[39] - Net cash used by investing activities was $691 million in Q3 2024, a decrease from $1,419 million in Q3 2023, indicating improved cash management[37] Debt and Liquidity - Frontier had total liquidity of $2.0 billion, including a cash balance of approximately $1.3 billion[7] - Long-term debt stood at $11,556 million as of September 30, 2024, compared to $11,246 million at the end of 2023, indicating an increase of 2.8%[34] - The net leverage ratio was reported at 4.6x, calculated using adjusted EBITDA of $2,205 million over net debt of $10,246 million[35] - Cash, cash equivalents, and restricted cash at the end of the period totaled $1,480 million, up from $1,054 million a year ago, representing a 40.4% increase[38] Acquisition and Future Outlook - Verizon is set to acquire Frontier at $38.50 per share, with the transaction expected to close by Q1 2026[8][9] Operational Metrics - Total operating expenses for the three months ended September 30, 2024, were $1,403 million, up from $1,322 million in the same period last year, reflecting a 6.1% increase[24] - Average monthly consumer revenue per customer decreased slightly to $83.12 from $83.99 in Q3 2023, reflecting a 1.0% decline[32] - Customer monthly churn increased to 1.80% in Q3 2024 from 1.70% in Q3 2023, indicating a rise in customer turnover[32] - Total fiber penetration stood at 30.2% as of September 30, 2024, slightly down from 30.4% in the previous quarter[42] - Estimated broadband fiber penetration increased to 45.7% from 45.3% in the previous quarter[42]