solidated munications (CNSL) - 2023 Q4 - Annual Results

Financial Performance - Fourth quarter 2023 revenue totaled $275.2 million, with a net loss of ($58.6 million) compared to a net loss of ($45.5 million) in Q4 2022[4][6]. - Full-year 2023 revenue reached $1.11 billion, with a net loss of ($294.4 million) and adjusted EBITDA of $319.2 million[12]. - Total net revenues for the year ended December 31, 2023, were $1,110,120, a decrease of 6.8% from $1,191,263 in 2022[23]. - Operating loss for the year ended December 31, 2023, was $(158,178), compared to a loss of $(93,162) in 2022[23]. - Net loss attributable to common shareholders for the year ended December 31, 2023, was $(294,424), a significant decline from net income of $99,981 in 2022[23]. - The company reported adjusted diluted net loss per share from continuing operations of ($0.26) in Q4 2023, compared to ($0.17) in Q4 2022[4]. - Loss from continuing operations for Q4 2023 was $(47,285), compared to $(40,760) in Q4 2022[34]. - Adjusted EBITDA for Q4 2023 was $86,680, down from $101,658 in Q4 2022, reflecting a decrease of 14.7%[34]. - Adjusted net loss from continuing operations for the year ended December 31, 2023, was $127.679 million, compared to $44.273 million in 2022, indicating a significant increase in losses[39]. Capital Expenditures and Debt - Total committed capital expenditures for Q4 2023 were $91.5 million, with full-year capital expenditures amounting to $511.8 million[5][12]. - As of December 31, 2023, the company had a net debt leverage ratio of 6.73x and maintained liquidity with approximately $4.8 million in cash and short-term investments[7]. - Net interest expense for Q4 2023 was $41.6 million, an increase of $8.4 million from the prior year, with a weighted average cost of debt of 7.04%[3]. - Total net debt as of December 31, 2023, was $2.148576 billion, with a Total Net Debt to last 12 months Adjusted EBITDA ratio of 6.73x[43]. Consumer Broadband Metrics - Total consumer broadband net adds were 6,998 in Q4 2023, bringing total consumer broadband net adds for the year to 25,761[6][12]. - Consumer broadband connections reached 393,219 by the end of 2023, an increase from 367,458 in 2022, showing a growth of 7% year-over-year[45]. - Total consumer broadband revenue for the year ended December 31, 2023, was $290.84 million, compared to $272.146 million in 2022, indicating a growth of 6.9%[45]. - Fiber broadband revenue for Q4 2023 was $37.916 million, up from $24.016 million in Q4 2022, representing a 57.5% increase[45]. - Consumer average revenue per unit (ARPU) for Fiber Gig+ capable connections was $68.14 in Q4 2023, slightly down from $68.29 in Q3 2023[45]. Operational Changes and Acquisitions - The company entered into an agreement to be acquired by Searchlight and BCI in an all-cash transaction valued at approximately $3.1 billion, expected to close by Q1 2025[8]. - The company will not host an earnings conference call due to the pending acquisition transaction[9]. - The company reported integration and severance related costs of $9.551 million for Q4 2023, compared to $1.498 million in Q4 2022, highlighting increased restructuring expenses[39]. Asset and Liability Changes - Cash and cash equivalents decreased to $4,765 as of December 31, 2023, from $325,852 in 2022, representing a decline of 98.5%[25]. - Total assets decreased to $3,628,426 as of December 31, 2023, down from $3,887,094 in 2022, a reduction of 6.6%[21]. - Total current liabilities increased to $317,245 as of December 31, 2023, compared to $266,904 in 2022, an increase of 18.8%[21]. - The company reported a net cash provided by operating activities of $114,587 for the year ended December 31, 2023, down from $223,710 in 2022[25]. - The accumulated deficit increased to $(262,380) as of December 31, 2023, from $(11,866) in 2022, indicating a worsening financial position[21]. Revenue Breakdown - Total operating revenue for Q4 2023 was $275,178, a decrease of 7.1% from $295,976 in Q4 2022[29]. - Broadband (Data and VoIP) revenue increased to $76,458 in Q4 2023, up 1.8% from $75,089 in Q3 2023[29]. - Voice services revenue decreased to $29,935 in Q4 2023, down 12.1% from $34,314 in Q4 2022[29]. - Video services revenue was $7,460 in Q4 2023, a decline of 37.8% compared to $11,876 in Q4 2022[29]. - Commercial data services revenue was $54,473 in Q4 2023, slightly up from $53,870 in Q3 2023[29]. - Network access revenue decreased to $22,217 in Q4 2023, down from $26,308 in Q4 2022[34]. Fiber Expansion - Total Fiber Gig+ capable passings increased to 1,236,208 by the end of 2023, up from 1,008,660 at the end of 2022, reflecting a growth of 22.5%[45]. - The percentage of Fiber Gig+ coverage over total passings reached 47% by the end of 2023, compared to 38% at the end of 2022[45]. - As of December 31, 2023, the Company upgraded 227,548 passings to fiber, totaling 1,236,208 fiber passings, which represents 47% of the service area[1].