分组1: Home Depot - Home Depot has maintained strong stock performance despite a weak housing market, indicating its significant scale and market leadership [4] - The company reported a 9% year-over-year increase in total sales in the first quarter, although comparable-store sales saw a slight decline [4] - Home Depot operates in a $1 trillion addressable market, capturing only 17% of this opportunity, with a focus on professional contractors representing a $525 billion market [5] - The company is diversifying its supply chain to mitigate tariff impacts, aiming for no single country to account for more than 10% of sourcing in the next year [6] - Once the home improvement market recovers, Home Depot is expected to achieve double-digit annual earnings growth around 10%, consistent with its historical performance [7] - The company has paid dividends for 38 consecutive years and recently increased its quarterly dividend by 2% to $2.30, resulting in a forward annual yield of 2.52% [8] 分组2: Verizon Communications - Verizon Communications offers a high yield of over 6%, which has increased due to stock price declines amid competition and high debt [9] - The company is projected to generate free cash flow between $17.5 billion and $18.5 billion for the full year, sufficient to cover its dividend, which represented 56% of free cash flow last year [11] - Verizon has over 115 million consumer wireless retail connections and 10 million broadband customers, providing a stable revenue base for consistent free cash flow [12] - The competitive landscape includes pressure from AT&T, but Verizon's substantial revenue and free cash flow allow for continued investment in technology [13] - Verizon's recent $20 billion acquisition of Frontier Communications enhances its competitive position in the broadband market [14] - The company currently pays a quarterly dividend of $0.6775, yielding 6.2%, with a $5,000 investment expected to generate $310 in income over the next year [15]

Core Viewpoint - Verizon Communications has shown solid performance in the first half of 2025, with stock growth of nearly 9%, outperforming the S&P 500 index, which increased by 1% [1] Group 1: Financial Performance - Verizon's operating revenue fell by 2.1% year over year in 2023 but saw a slight increase of 0.6% in 2024 [2] - In the first quarter of 2025, total operating revenue grew by 1.5% year over year, and earnings climbed by 5.5% [6] - The company's dividend yield exceeds 6%, making it attractive compared to Treasury yields, and it has increased its dividend for 18 consecutive years, paying over $11 billion in cash dividends in 2024 [9] Group 2: Strategic Initiatives - Verizon is in the process of closing a $20 billion acquisition of Frontier Communications, which will enhance its fiber internet capabilities [4] - The company aims to double its fixed-wireless access customers to 8 million to 9 million by 2028 and expand coverage to 90 million households [4] - The long-term goal with Frontier is to expand broadband access to 100 million premises, with 35 million to 40 million being fiber passings [5] Group 3: Market Position and Outlook - Verizon is a major player in the mature wireless market and is leveraging its existing infrastructure and brand recognition to deploy new solutions more rapidly [8] - Management is guiding for continued growth in wireless service revenue and higher growth in postpaid phone net additions in 2025 compared to 2024 [7] - The company's payout ratio for dividends was about 59% of earnings in the first quarter of 2025, with a trailing-12-month free cash flow yield of nearly 11%, providing a margin of safety for the dividend [10] Group 4: Investment Considerations - While Verizon's stock may not outperform the broader market in the long term, it is considered a top dividend stock due to its ability to pay and increase dividends consistently [11]

Core Insights - Verizon Communications Inc. (VZ) has gained 9.6% year-to-date, underperforming the Wireless National industry's growth of 12.7% and trailing peers like AT&T (22.8%) and T-Mobile (10.4%) [1][2][8] Group 1: Network and Broadband Expansion - Verizon is enhancing its network infrastructure to provide superior 5G experiences, holding 2,035 MHz of spectrum, including 294 MHz in Sub 6 GHz and 1,741 MHz in mmWave spectrum [3] - The company has accelerated broadband expansion, adding 339,000 broadband subscribers in the first quarter, with a goal of reaching 8-9 million fixed wireless access by 2028 [4] - The acquisition of Frontier Communications will expand Verizon's fiber footprint, integrating Frontier's 2.2 million fiber subscribers with Verizon's Fios network [5] Group 2: Customer Retention Strategies - Verizon is implementing a convergence strategy by offering bundled wireless and broadband services, which is expected to enhance customer retention and reduce churn [6] - The Verizon Value Guarantee, providing a three-year price lock for plans, is positively received by customers, alongside investments in AI-driven customer service improvements [6] Group 3: Competitive Landscape and Challenges - Verizon faces challenges with slow growth in postpaid phone net adds and high churn due to price hikes, indicating a saturated and price-sensitive market [9] - The competitive pressure from AT&T and T-Mobile, particularly in the fiber broadband market, is intensifying [9] - High capital expenditures for 5G network build-out and fiber deployment are creating margin pressures amid competitive pricing challenges [10] Group 4: Financial Metrics and Estimates - As of Q1 2025, Verizon's current ratio is 0.61, indicating potential difficulties in covering short-term obligations [11] - Earnings estimates for 2025 and 2026 remain stable at $4.69 and $4.86, respectively [12] - Verizon's shares trade at a forward P/E ratio of 9.2, lower than the industry average of 13.73 but above its historical mean of 8.94 [15] Group 5: Strategic Focus - The company is committed to a customer-first strategy, focusing on customer retention, broadband and 5G expansion, converged service offerings, and strategic acquisitions as growth drivers [16] - Despite healthy cash flow, elevated debt risks and fierce competition pose significant obstacles to revenue growth [17]

Group 1 - AT&T agrees to acquire Lumen Technologies' consumer fiber business for $5.75 billion to expand its broadband services in major cities like Denver and Las Vegas [1] - The transaction is subject to regulatory approval and is expected to be completed in the first half of next year [1] - Following the announcement, Lumen's stock initially rose by 25% to $4.77, later stabilizing at an 11% increase [1] Group 2 - The acquisition aligns with AT&T's long-term goal of increasing fiber access to 60 million locations by 2030, doubling its current availability [1] - Lumen has 1 million fiber users across over 4 million locations in 11 states, but its consumer fiber business does not align with its focus on enterprise services [1] - AT&T plans to create a new subsidiary to hold the acquired assets and intends to sell a portion of the subsidiary's ownership to an equity partner within 6 to 12 months post-transaction [1] Group 3 - AT&T's structure for the acquisition is designed to support the expansion of AT&T Fiber beyond its traditional fixed-line business [2] - The company reaffirmed its financial guidance for 2025 following the announcement [2] - The telecommunications sector is experiencing significant activity, with recent transactions including the FCC's approval of Frontier Communications' sale to Verizon and Charter Communications' merger with Cox Communications [2]

Core Viewpoint - Verizon Communications is recognized for its high dividend yield, making it attractive to income investors [2][10] Dividend Analysis - Verizon currently pays a quarterly dividend of $0.6775 per share, equating to an annual dividend of $2.71 per share [3] - To achieve $5,000 in annual dividend income, an investor would need to own approximately 1,846 shares, requiring an investment of around $81,000 [4][5] - The number of shares required for $5,000 in annual income may change if Verizon adjusts its quarterly dividend payment [6] Dividend Growth Potential - Verizon has increased its dividend for 18 consecutive years, with the latest hike announced in September 2024 [7] - The company's current dividend payout ratio is 64.23%, providing flexibility for future increases [8] - Verizon generated free cash flow of $3.6 billion in Q1 2025, up from $2.7 billion year-over-year, and expects free cash flow of $17.5 billion to $18.5 billion for the full year [9] Capital Allocation and Business Performance - CEO Hans Vestberg emphasized that supporting and growing dividends is a priority after investing in the business [10] - Verizon's stock has risen nearly 10% this year, outperforming major market indexes [10] - The company is experiencing strong business growth, leading in total wireless service revenue and expanding broadband market share [13]

Core Insights - Frontier Communications reported revenue of $1.51 billion for the quarter ended March 2025, reflecting a year-over-year increase of 3.4% and matching the Zacks Consensus Estimate, with an EPS of -$0.26 compared to $0.00 in the previous year [1] - The company achieved an EPS surprise of +21.21%, exceeding the consensus estimate of -$0.33 [1] Financial Performance - Revenue from contracts with customers was $1.50 billion, surpassing the average estimate of $1.49 billion, marking a 3.4% increase year-over-year [4] - Revenue from Fiber-Consumer services reached $589 million, exceeding the estimate of $581.81 million, with a year-over-year growth of 16.6% [4] - Revenue from Fiber-Business and Wholesale was $324 million, above the estimate of $321.75 million, representing an 8% increase year-over-year [4] Customer Metrics - Broadband customers totaled 3.15 million, slightly above the estimated 3.14 million [4] - Total Fiber Penetration stood at 30.7%, marginally higher than the estimated 30.6% [4] - Fiber-Consumer broadband customers numbered 2.35 million, exceeding the estimate of 2.34 million [4] Stock Performance - Shares of Frontier Communications have returned +1.1% over the past month, contrasting with the Zacks S&P 500 composite's -0.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Performance - Frontier Communications reported a quarterly loss of $0.26 per share, better than the Zacks Consensus Estimate of a loss of $0.33, compared to break-even earnings per share a year ago, representing an earnings surprise of 21.21% [1] - The company posted revenues of $1.51 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.34%, and showing an increase from $1.46 billion year-over-year [2] Stock Performance - Frontier Communications shares have increased approximately 4.5% since the beginning of the year, contrasting with the S&P 500's decline of 6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.34 on revenues of $1.52 billion, and for the current fiscal year, it is -$1.34 on revenues of $6.06 billion [7] - The estimate revisions trend for Frontier Communications is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Communication - Network Software industry, to which Frontier Communications belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Performance - The company reported operating income of $76 million for the three months ended March 31, 2025, a decrease of 16% from $90 million in the same period in 2024 [191]. - Total revenue for the three months ended March 31, 2025, was $1.511 billion, a 3% increase from $1.462 billion in the same period in 2024 [212]. - Consumer revenue increased by 3% to $813 million, driven by a 26% increase in fiber broadband revenue, which was attributed to higher average revenue per user (ARPU) and net customer additions [218]. - Business and wholesale revenue also rose by 3% to $682 million, primarily due to increases in data and internet services, despite declines in voice services revenue [220]. - Total operating expenses for the three months ended March 31, 2025, were $1,435 million, an increase of $63 million or 5% compared to $1,372 million in 2024 [234]. - Operating cash flows increased by $184 million to $519 million for the three months ended March 31, 2025, compared to the same period in 2024 [258]. Fiber Expansion - Frontier Communications has passed over 8 million total locations with fiber as of March 31, 2025, with a goal to reach 10 million [184]. - Fiber revenue increased by 13% to $913 million for the three months ended March 31, 2025, compared to $805 million in the prior year [214]. - The average monthly consumer fiber broadband revenue per customer (ARPU) rose by $3.03, or 5%, to $68.21 for the three months ended March 31, 2025 [209]. - Frontier added approximately 321,000 fiber passings and 107,000 fiber broadband customer net additions in the first quarter of 2025 [188]. - The company experienced a consumer customer churn rate of 1.20% for fiber broadband, an improvement from 1.24% in the prior year [205]. Capital Expenditures and Investments - Capital expenditures increased to $757 million for the three months ended March 31, 2025, compared to $666 million in the prior year [262]. - The company has negotiated payment terms with vendors, resulting in capital investment of $773 million for the three months ended March 31, 2025, including vendor financing [266]. - Cash flows used by investing activities were $756 million for the three months ended March 31, 2025, a decrease driven by $91 million in higher capital expenditures and the non-recurrence of $850 million in sales of short-term investments [261]. Debt and Liquidity - As of March 31, 2025, the company had liquidity of approximately $2,529 million, consisting of $506 million in cash and cash equivalents and available credit facilities [250]. - The working capital deficit increased to $1,516 million as of March 31, 2025, compared to $1,029 million at December 31, 2024, driven by various increases in current liabilities [256]. - As of March 31, 2025, there was $1,267 million of undrawn capacity under the $1,500 million DDTL Facility [265]. - The company assessed that operating cash flows and existing cash balances will be adequate to finance working capital requirements and other payments over the next twelve months [269]. - The financial maintenance covenant leverage ratio is set to not exceed 5.25:1.00, stepping down to 4.75:1.00 starting March 31, 2027 [281]. Pension and Employee Benefits - The company's pension plan assets increased by $42 million from $2,328 million at December 31, 2024, to $2,370 million at March 31, 2025, primarily due to market value changes and contributions [317]. - The discount rate for the company's pension benefit obligation was 5.50% as of March 31, 2025, down from 5.60% at the end of 2024 [314]. Regulatory and Compliance - The company is required to complete the CAF Phase II deployment by December 31, 2021, and could face penalties if it fails to meet certain requirements [295]. - The company was awarded approximately $371 million over ten years under the RDOF program to build gigabit-capable broadband to approximately 127,000 locations in eight states, with milestones to be met from December 31, 2025, to December 31, 2028 [297]. - The company is actively pursuing awards from the IIJA, which provides $65 billion for broadband connectivity programs, with approximately $25.5 billion allocated to states in its footprint [298]. - The company is in compliance with all covenants under its existing indentures and credit agreements as of March 31, 2025 [290]. Market and Shareholder Information - The merger agreement with Verizon is set at $38.50 per share, representing a premium of 43.7% to Frontier's 90-day volume-weighted average share price prior to market speculation [185]. - The company issued $750 million in secured fiber network revenue term notes on July 1, 2024, with a weighted average yield of approximately 7.4% [276]. - As of March 31, 2025, 90% of the company's total debt had fixed interest rates, with only $1.1 billion subject to floating rates [310]. - The annual impact of a 100 basis points increase in the SOFR would result in approximately $11 million of additional interest expense, provided that the SOFR rate exceeds the SOFR floor [311]. - The company does not maintain any off-balance sheet arrangements that would materially affect its financial statements [292].

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Frontier achieved record Q1 2025 revenue and Adjusted EBITDA, driven by significant fiber business growth and surpassing 8 million fiber passings, despite a net loss of $64 million - CEO Nick Jeffery highlighted the strongest start to a year yet, attributing success to continued strength in the fiber business and increasing reliance on fiber networks[3](index=3&type=chunk) - The company reached a significant milestone, expanding its fiber network to over **8 million passings**, progressing towards its goal of **10 million**[3](index=3&type=chunk)[6](index=6&type=chunk) Q1 2025 Key Financial and Operational Highlights (YoY) | Metric | Q1 2025 Value | YoY Change | | :--- | :--- | :--- | | Total Revenue | $1.51 billion | +3.4% | | Fiber Broadband Revenue | - | +24% | | Fiber Broadband Customers | - | +19.3% | | Adjusted EBITDA | $583 million | +6.6% | | Net Loss | $64 million | N/A (vs $1M income) | | Fiber Passings Added | 321,000 | - | | Total Fiber Passings | 8.1 million | - | | Consumer Fiber Broadband ARPU | $68.21 | +4.7% | [Segment Performance](index=2&type=section&id=Segment%20Performance) Both Consumer and Business/Wholesale segments grew revenue year-over-year, driven by fiber expansion, partially offset by legacy copper declines [Consumer Results](index=2&type=section&id=Consumer%20Results) Consumer revenue increased 3.3% to $813 million, fueled by a 25.6% surge in fiber broadband revenue from customer growth and higher ARPU, with improved churn Q1 2025 Consumer Segment Performance (YoY) | Metric | Q1 2025 Value | YoY Change | | :--- | :--- | :--- | | Total Consumer Revenue | $813 million | +3.3% | | Consumer Fiber Revenue | $589 million | +16.6% | | Consumer Fiber Broadband Revenue | $471 million | +25.6% | | Fiber Broadband Net Additions | 103,000 | - | | Fiber Broadband Customer Growth | - | +19.8% | | Fiber Broadband Customer Churn | 1.20% | -0.04 p.p. | [Business and Wholesale Results](index=2&type=section&id=Business%20and%20Wholesale%20Results) Business and Wholesale revenue grew 3.5% to $682 million, led by fiber revenue growth and 4,000 fiber broadband customer additions, despite increased churn Q1 2025 Business & Wholesale Segment Performance (YoY) | Metric | Q1 2025 Value | YoY Change | | :--- | :--- | :--- | | Total B&W Revenue | $682 million | +3.5% | | B&W Fiber Revenue | $324 million | +8.0% | | Fiber Broadband Net Additions | 4,000 | - | | Fiber Broadband Customer Growth | - | +11.4% | | Fiber Broadband ARPU | $99.98 | +1.6% | | Fiber Broadband Customer Churn | 1.53% | +0.21 p.p. | [Financial Position and Outlook](index=2&type=section&id=Financial%20Position%20and%20Outlook) Frontier maintained strong liquidity of ~$2.6 billion and a 4.9x net leverage ratio as of March 31, 2025, with no significant debt maturities before 2027, as its Verizon acquisition progresses [Capital Structure](index=2&type=section&id=Capital%20Structure) Frontier reported total liquidity of ~$2.6 billion and a 4.9x net leverage ratio as of March 31, 2025, with no long-term debt maturities prior to 2027 - Total liquidity of **~$2.6 billion** consists of **$0.5 billion** in cash, **$1.3 billion** in a delayed draw term loan facility, and **$0.8 billion** in a revolving credit facility[10](index=10&type=chunk) - The net leverage ratio was approximately **4.9x** as of March 31, 2025[10](index=10&type=chunk) [Pending Acquisition by Verizon](index=2&type=section&id=Pending%20Acquisition%20by%20Verizon) Frontier's definitive merger agreement with Verizon, signed September 4, 2024, is expected to close by Q1 2026 pending approvals, resulting in no financial outlook or earnings call - A definitive merger agreement was signed with Verizon on September 4, 2024[13](index=13&type=chunk) - The transaction is expected to close by the **first quarter of 2026**, subject to regulatory approvals[14](index=14&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) Unaudited Q1 2025 financials show 3.4% revenue growth to $1.51 billion, but higher expenses led to a $64 million net loss, with operating cash flow offset by capital expenditures [Statements of Operations](index=7&type=section&id=Statements%20of%20Operations) Frontier's Q1 2025 revenue increased to $1.511 billion, but operating income declined to $76 million, resulting in a $64 million net loss compared to prior year Q1 Statement of Operations Data (YoY Comparison) | Metric ($ in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $1,511 | $1,462 | | Total operating expenses | $1,435 | $1,372 | | Operating income | $76 | $90 | | Net income (loss) | $(64) | $1 | | Diluted EPS | $(0.26) | $0.00 | [Revenue Breakdown](index=8&type=section&id=Revenue%20Breakdown) Revenue analysis shows a clear strategic shift to fiber, with fiber revenue growing to $913 million in Q1 2025, offsetting copper declines, and Data and Internet services revenue increasing Revenue by Technology (YoY Comparison) | ($ in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Fiber | $913 | $805 | | Copper | $582 | $641 | Revenue by Service (YoY Comparison) | ($ in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Data and Internet services | $1,049 | $947 | | Voice services | $290 | $321 | | Video services | $74 | $94 | [Balance Sheet](index=10&type=section&id=Balance%20Sheet) As of March 31, 2025, Frontier's balance sheet showed total assets of $20.9 billion, driven by increased property, plant, and equipment, with total debt at $11.64 billion Condensed Balance Sheet Data | ($ in millions) | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $506 | $750 | | Property, plant and equipment, net | $16,221 | $15,678 | | Total assets | $20,898 | $20,614 | | Total debt | $11,643 | $11,561 | | Equity | $4,877 | $4,941 | [Cash Flow Statement](index=11&type=section&id=Cash%20Flow%20Statement) In Q1 2025, Frontier generated $519 million in net cash from operating activities, but investing activities used $756 million, driven by capital expenditures for the fiber buildout Consolidated Cash Flow Data (YoY Comparison) | ($ in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided from operating activities | $519 | $335 | | Net cash provided from (used by) investing activities | $(756) | $186 | | Net cash provided from (used by) financing activities | $45 | $(423) | [Key Operating Metrics](index=9&type=section&id=Key%20Operating%20Metrics) Q1 2025 operating metrics reflect a successful fiber-first strategy, with total fiber passings reaching 8.1 million and 107,000 fiber broadband customer additions, contrasting with continued copper declines [Customer Metrics](index=9&type=section&id=Customer%20Metrics) Total broadband customers grew to 3.153 million, with 59,000 net additions in Q1 2025, an acceleration from prior year, and consumer ARPU rising to $84.40 Broadband and Consumer Customer Metrics | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Broadband customers (thousands) | 3,153 | 3,094 | 2,974 | | Broadband net additions (thousands) | 59 | 37 | 31 | | Consumer customers (thousands) | 3,232 | 3,193 | 3,140 | | Avg. monthly consumer revenue per customer | $84.40 | $83.58 | $83.65 | [Broadband Metrics](index=14&type=section&id=Broadband%20Metrics) The company's fiber buildout reached 8.1 million total passings, with strong consumer fiber net additions of 103,000 and healthy ARPU growth, contrasting with copper customer declines - Total fiber passings increased to **8.1 million** as of Q1 2025, up from **6.8 million** in Q1 2024[43](index=43&type=chunk) Broadband Net Additions (in thousands) | Segment | Technology | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | :--- | | Consumer | Fiber | 103 | 85 | | Consumer | Copper | (41) | (51) | | Business + Wholesale | Fiber | 4 | 3 | | Business + Wholesale | Copper | (7) | (6) | Broadband ARPU | Segment | Technology | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | :--- | | Consumer | Fiber | $68.21 | $65.18 | | Consumer | Copper | $62.39 | $56.16 | | Business + Wholesale | Fiber | $99.98 | $98.40 | [Non-GAAP Financial Measures & Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) Frontier uses non-GAAP measures like Adjusted EBITDA, operating free cash flow, and net leverage ratio to evaluate performance, with Q1 2025 Adjusted EBITDA at $583 million, and provides detailed reconciliations - Management uses non-GAAP measures like EBITDA, Adjusted EBITDA, operating free cash flow, and net leverage ratio to analyze underlying financial performance, make strategic decisions, and assess cash flow generation ability[17](index=17&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) The company reconciled its Q1 2025 GAAP net loss of $64 million to a non-GAAP Adjusted EBITDA of $583 million, with key adjustments including depreciation, interest expense, and restructuring costs Adjusted EBITDA Reconciliation (YoY Comparison) | ($ in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $(64) | $1 | | Depreciation and amortization | 445 | 388 | | Interest expense | 200 | 199 | | Restructuring costs and other charges | 36 | 34 | | Stock-based compensation | 15 | 26 | | **Adjusted EBITDA** | **$583** | **$547** | [Reconciliation of Operating Free Cash Flow](index=12&type=section&id=Reconciliation%20of%20Operating%20Free%20Cash%20Flow) Operating free cash flow for Q1 2025 was a negative $254 million, derived from net cash from operations less capital expenditures and vendor financing, an improvement from prior year Operating Free Cash Flow Reconciliation (YoY Comparison) | ($ in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided from operating activities | $519 | $335 | | Capital expenditures | $(757) | $(666) | | Payment of vendor financing | $(16) | $(363) | | **Operating free cash flow** | **$(254)** | **$(694)** | [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements concerning future events, including the pending merger with Verizon, financial performance, and strategic initiatives, subject to numerous risks and uncertainties - The report includes forward-looking statements regarding future performance, strategic plans, and the proposed merger with Verizon[26](index=26&type=chunk) - A wide range of factors could affect future results, including risks related to the merger's completion, regulatory approvals, economic conditions, competition, and the company's ability to execute its fiber buildout plan[26](index=26&type=chunk)

Company Overview - Uniti Group Inc. announced the appointment of John Harrobin as President of Kinetic, effective after the merger with Windstream Holdings II, LLC, expected in the second half of 2025 [1] - Uniti is a real estate investment trust focused on acquiring and constructing communications infrastructure, owning approximately 145,000 fiber route miles and 8.8 million fiber strand miles across the U.S. as of December 31, 2024 [6] Leadership Appointment - John Harrobin previously served as Executive Vice President, Consumer, at Frontier Communications, leading a $3 billion business unit and achieving customer, revenue, and profit growth [2] - Harrobin's experience includes roles at Audible and Verizon Wireless, where he was involved in significant growth and marketing strategies [4] Strategic Focus - The company sees significant potential in the Kinetic platform, which is viewed as an attractive asset with strong fundamentals and growth opportunities [3] - Harrobin's immediate focus will be on enhancing customer service and building a durable operating model to deliver superior results [3]