Uniti Group Inc. Reports Fourth Quarter and Full Year 2024 Results

Core Insights - Uniti Group Inc. reported a transformational year in 2024, highlighted by a merger announcement with Windstream, significant growth in business segments, and efforts to strengthen its balance sheet [3][4] - The company achieved a 5% growth in core recurring strategic fiber revenue compared to 2023, with consolidated bookings increasing by 40% in Q4 2024 [3] - Uniti completed a landmark ABS financing transaction, raising $589 million, which will be used to enhance capital structure and redeem expensive debt [4][12] Financial Performance - For Q4 2024, Uniti's consolidated revenues were $293.3 million, with net income of $21.6 million and Adjusted EBITDA of $239.5 million, resulting in an Adjusted EBITDA margin of approximately 82% [5][10] - For the full year 2024, consolidated revenues reached $1.2 billion, with net income of $93.4 million and Adjusted EBITDA of $940.1 million [8][10] - Uniti Fiber generated $71.7 million in revenues and $31.1 million in Adjusted EBITDA for Q4 2024, while Uniti Leasing contributed $221.7 million in revenues and $214.5 million in Adjusted EBITDA [6] Capital Expenditures and Debt Management - Combined gross capital expenditures for Uniti Fiber and Uniti Leasing were $24.3 million in Q4 2024, offset by $23.6 million in upfront customer payments, resulting in net success-based capex of $0.7 million [7] - The company utilized proceeds from the ABS financing to repay and terminate its existing ABS bridge facility and redeem $125 million of senior secured notes due 2028 [13] 2025 Outlook - Uniti's consolidated outlook for 2025 estimates revenues between $1.196 billion and $1.216 billion, with net income attributable to common shareholders projected between $95 million and $115 million [15] - Adjusted EBITDA for 2025 is expected to range from $966 million to $986 million, with interest expenses estimated at $532 million [15] Balance Sheet and Liquidity - As of year-end 2024, Uniti had approximately $655.6 million in unrestricted cash and cash equivalents, with a leverage ratio of 5.80x based on net debt to annualized Adjusted EBITDA [14] - The total assets of Uniti increased to $5.282 billion in 2024, compared to $5.025 billion in 2023, reflecting growth in property, plant, and equipment [31]