Uniti(US:UNIT)2025-05-06 20:04Financial Performance - Total revenue for Q1 2025 was $293.9 million, an increase of 2% from $286.4 million in Q1 2024[17] - Net income for Q1 2025 was $12.2 million, down 70% from $41.3 million in Q1 2024[17] - Comprehensive income for Q1 2025 was $12.3 million, compared to $41.2 million in Q1 2024[19] - For the three months ended March 31, 2025, net income attributable to shareholders was $12.22 million, a decrease of 70.5% from $41.33 million in the same period of 2024[88] - Basic earnings per common share for Q1 2025 was $0.05, down from $0.17 in Q1 2024, reflecting a 70.6% decline[88] - Adjusted EBITDA for the reportable segments was $237.8 million for the three months ended March 31, 2025, compared to $228.6 million in 2024, reflecting a 4.0% increase[141] - Adjusted EBITDA for Uniti Leasing was $215.13 million in Q1 2025, compared to $210.68 million in Q1 2024, showing a slight increase of 2.1%[94] - Funds From Operations (FFO) attributable to common shareholders was $68.27 million for Q1 2025, down from $77.46 million in Q1 2024, indicating a decline of 11.5%[174] - Adjusted Funds From Operations (AFFO) attributable to common shareholders increased to $92.30 million in Q1 2025, compared to $87.63 million in Q1 2024, representing a growth of 5.9%[174] Revenue Breakdown - Revenue from Uniti Leasing increased to $220.9 million in Q1 2025, up from $216.0 million in Q1 2024[17] - Service revenues from Uniti Fiber decreased to $55.4 million in Q1 2025, down from $56.6 million in Q1 2024[17] - Revenue from contracts with customers totaled $56.9 million for the three months ended March 31, 2025, compared to $58.3 million in 2024, indicating a decline of about 2.4%[44] - Lease income from operating leases was $237.0 million for the three months ended March 31, 2025, compared to $228.2 million in 2024, reflecting an increase of approximately 3.9%[50] - Revenue from Uniti Leasing was $222.4 million, accounting for 75.7% of total revenues, while Uniti Fiber generated $71.5 million, representing 24.3% of total revenues[143] Assets and Liabilities - Total assets increased to $5.29 billion as of March 31, 2025, compared to $5.28 billion at the end of 2024[15] - Total liabilities decreased slightly to $7.73 billion from $7.73 billion at the end of 2024[15] - The company reported a total shareholders' deficit of $2.44 billion as of March 31, 2025, slightly improved from $2.45 billion at the end of 2024[15] - The total principal balance of outstanding notes and other debt was $6.05 billion as of March 31, 2025, with a fair value of $6.02 billion[58] - The total carrying value of property, plant, and equipment as of March 31, 2025, is $10.82 billion, with accumulated depreciation of $6.54 billion[60] Capital Expenditures - Capital expenditures for the three months ended March 31, 2025, were $208,060,000, compared to $167,939,000 in 2024, representing a 24% increase[23] - Total capital expenditures for the three months ended March 31, 2025, amounted to $208.1 million, including $175.0 million for growth capital improvements and $31.3 million for Uniti Fiber[188] Merger and Acquisition - The company plans to merge with Windstream, with expected completion in the second half of 2025, subject to regulatory approvals[32] - Following the merger, Uniti stockholders are expected to hold approximately 62% of the combined company[30] - The merger will involve a cash payment of $425 million to Windstream equityholders, funded through cash on hand and borrowings[31] - The merger aims to create a premier digital infrastructure company by reuniting Windstream's business with Uniti's fiber infrastructure[125] - Uniti's existing officers are expected to serve as initial officers of the new entity post-merger[125] Debt and Financing - The company has a $500 million revolving credit facility that matures on September 24, 2027, with no borrowings outstanding as of March 31, 2025[70] - The company incurred $6.0 million and $5.0 million of non-cash interest expense related to the amortization of deferred financing costs for the three months ended March 31, 2025, and 2024, respectively[84] - The company recognized a $3.2 million loss on the extinguishment of the ABS Loan Facility and a $5.3 million loss on the partial extinguishment of the February 2028 Secured Notes during the three months ended March 31, 2025[83] - The company anticipates funding $425 million in cash consideration for the merger with Windstream, along with $490.1 million in settlement payments and up to $1.75 billion for growth capital improvements[185] Cash Flow - Cash flow from operating activities increased to $8,567,000, up from $6,190,000 in the same period last year[23] - Total cash and cash equivalents as of March 31, 2025, were $130.3 million, including $38.3 million of restricted cash[177] - Net cash provided by financing activities was $145.5 million for the three months ended March 31, 2025, compared to $69.9 million for the same period in 2024, primarily driven by $589.0 million from the issuance of ABS Notes[179] Operational Metrics - Fiber strand miles for Uniti Leasing increased by 4.7% to 5,770,000 as of March 31, 2025, compared to 5,510,000 in 2024[142] - Customer connections for Uniti Fiber rose by 3.9% to 30,017 as of March 31, 2025, compared to 28,896 in the previous year[142] Regulatory and Compliance - The company is currently evaluating the impact of recently issued accounting standards on its financial statements, including ASU 2023-09 and ASU 2024-03[41][42] - The company was in compliance with all covenants under the Credit Agreement as of March 31, 2025[71] - Disclosure controls and procedures were evaluated as effective as of March 31, 2025[202] - No changes in internal control over financial reporting that materially affected the reporting[203]