solidated munications (CNSL) - 2023 Q4 - Annual Report

Fiber Internet Expansion - Fidium Fiber, a new Gigabit consumer fiber internet product, launched in November 2021 and expanded to additional markets in May 2022, offering symmetrical speeds from 50 Mbps to 2 Gbps[561] - The company completed the sale of its five limited wireless partnership interests to Cellco Partnership for $490.0 million in September 2022, with proceeds used to support fiber expansion[569] Financial Performance and Revenues - Total operating revenues decreased by 7% to $1,110.1 million in 2023 compared to $1,191.3 million in 2022[575] - Consumer broadband revenues increased by 7% to $290.8 million in 2023 from $272.1 million in 2022[575] - Commercial data services revenues decreased by 6% to $214.7 million in 2023 from $228.5 million in 2022[575] - Carrier data and transport services revenues decreased by 7% to $127.2 million in 2023 from $137.4 million in 2022[575] - Adjusted EBITDA from continuing operations decreased by 17% to $319.2 million in 2023 from $384.4 million in 2022[575] - Selling, general and administrative costs increased by 13% to $340.2 million in 2023 from $301.6 million in 2022[575] - Depreciation and amortization increased by 5% to $315.1 million in 2023 from $300.2 million in 2022[575] - Loss from continuing operations increased by 41% to $250.1 million in 2023 from $177.7 million in 2022[575] - Net income attributable to common shareholders decreased by 394% to a loss of $294.4 million in 2023 from a profit of $100.0 million in 2022[575] - The company's stock performance showed a cumulative total shareholder return of $47.19 in 2023, compared to $38.84 in 2022[586] Strategic Transactions and Agreements - The company entered into a Merger Agreement on October 15, 2023, with Condor Holdings LLC, where each share of common stock will be converted into $4.70 per share[564] - The Merger Agreement was approved by the company's board of directors and stockholders, with no adjournment necessary to solicit additional proxies[566] - The company entered into a definitive agreement to sell its Washington operations for gross cash proceeds of approximately $73.0 million, with an impairment loss of $77.8 million recognized in 2023[572] - The company completed the sale of its Ohio operations for $26.1 million in January 2022, with an impairment loss of $5.7 million recognized in 2021 and an additional loss of $0.8 million in 2022[573] Cost Savings and Business Simplification - A business simplification and cost savings initiative plan initiated in July 2023 is expected to result in annualized savings of approximately $30.0 million, with $17.4 million recognized in severance costs in 2023[568] Wireless Partnerships and Income - The company recognized income of $23.5 million and $41.8 million in 2022 and 2021, respectively, from wireless partnerships, with cash distributions of $29.2 million and $43.0 million in the same periods[571] Video Services Transition - Total video connections decreased by 37% as of December 31, 2023, compared to 2022, due to the company's strategy to de-emphasize linear video services and transition customers to streaming services[563]