Financial Data and Key Metrics Changes - Unity reported consolidated revenues of $294 million for the first quarter, with adjusted EBITDA of $238 million and AFFO attributed to common shareholders of $92 million, resulting in an AFFO per diluted common share of $0.35 [15][20] - Core recurring strategic revenue grew approximately 4% year-over-year, while capital intensity of the fiber business declined over 50% year-over-year [14][15] - The leverage ratio was reported at 6.09 times based on net debt to annualized adjusted EBITDA [21] Business Line Data and Key Metrics Changes - Uniti Leasing segment revenues were $222 million with an adjusted EBITDA of $215 million, achieving a 97% adjusted EBITDA margin [15] - Uniti Fiber reported revenues of $72 million and adjusted EBITDA of $29 million, resulting in a 40% adjusted EBITDA margin [17] - Non-recurring revenue was lower than expected due to a delay in a $4 million one-time sale of fiber to a government customer [17] Market Data and Key Metrics Changes - The company noted strong demand from wireless carriers, with bookings in the quarter nearly doubling compared to the same quarter last year [12] - The percentage of bookings related to hyperscalers was around 15% to 20%, consistent over the past 18 months [43][45] - The ABS market has remained resilient, providing a key financing tool for the company [6][8] Company Strategy and Development Direction - Unity aims for disciplined top-line growth of mid-single digits and high-single digit adjusted EBITDA growth, reiterating full-year guidance for revenue, adjusted EBITDA, and AFFO [5][10] - The company is focused on building new fiber, particularly within the Kinetic footprint, with plans to double the number of targeted homes passed with fiber by 2025 [6][10] - The merger with Windstream is expected to enhance Unity's fiber network and operational capabilities, with a goal to transition Kinetic off legacy systems to fiber [26][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the fiber infrastructure business, noting minimal impact from recent economic downturns [8][9] - The company is optimistic about regulatory changes that may benefit its business, including increased leniency towards retiring aging copper networks [9] - Management highlighted the ongoing investment cycle for large language models and the anticipated growth in AI-related demand [36][37] Other Important Information - The company received shareholder approval for the merger with Windstream, with approximately 97% of voting shareholders in favor [10] - New appointments to the Unity team include John Harobin as president of Kinetic and Harold Zeitz as a new board member [11] Q&A Session Summary Question: Concerns about M&A environment and lease-up mix - Management indicated no slowdown in M&A activity and remains engaged in strategic conversations, while also focusing on integration and accelerating growth strategies [33][34] - The high mix of lease-ups was acknowledged, with continued strong investment from hyperscalers expected [35][36] Question: Nature of bookings and AI-related deals - Approximately 20% of bookings are related to hyperscalers, with a growing percentage over the past quarters [43][44] - AI-driven builds are treated similarly to other anchor lease-up models, with yields nearing 20% for hyperscaler deals [47][48]

Core Insights - Lightpath is expanding its fiber infrastructure in Miami, aiming to enhance connectivity services in the region, with completion expected by late 2025 [1][2] - The Miami network will feature over 80-route miles of AI-grade fiber, connecting to 12 critical data centers and offering services including dark fiber and wavelengths up to 800 Gbps [1][2] - The company emphasizes its commitment to investing in underdeveloped digital infrastructure in Miami and South Florida to meet growing customer demand [2][3] Company Overview - Lightpath is focused on providing high-capacity connectivity solutions tailored for AI and Cloud technologies, partnering with major bandwidth consumers [3] - The company connects to over 170 data centers and 7 cable landing stations in New York and New Jersey, offering customized connectivity solutions [2] - Lightpath is jointly owned by Altice USA and Morgan Stanley Infrastructure Partners, with a history of over 30 years in the industry [5]

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $294 million, with adjusted EBITDA of $238 million, and AFFO attributed to common shareholders of $92 million, resulting in an AFFO per diluted common share of $0.35 [15][20] - Core recurring strategic revenue grew approximately 4%, while capital intensity of the fiber business, excluding GCI impact, declined over 50% year over year [14][15] Business Line Data and Key Metrics Changes - Uniti Leasing reported segment revenues of $222 million and adjusted EBITDA of $215 million, achieving an adjusted EBITDA margin of 97% [15] - Uniti Fiber generated revenues of $72 million and adjusted EBITDA of $29 million, resulting in an adjusted EBITDA margin of 40% [16] Market Data and Key Metrics Changes - The company noted strong demand from wireless carriers, with bookings in the quarter almost double those from the same quarter last year [12] - The percentage of bookings related to hyperscalers is around 15% to 20%, consistent over the past 18 months [42][44] Company Strategy and Development Direction - The company aims for disciplined top-line growth of mid-single digits and high-single-digit adjusted EBITDA growth, reiterating full-year guidance for revenue, adjusted EBITDA, and AFFO [4][20] - The merger with Windstream is expected to enhance the fiber network significantly, with plans to convert approximately 2 million homes to fiber by the end of 2025 [26][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the fiber infrastructure business, noting minimal impact from recent economic downturns [7] - The company remains optimistic about the merger with Windstream, expecting to close the transaction in the second half of the year [10][29] Other Important Information - The company has a leverage ratio of 6.09 times based on net debt to annualized adjusted EBITDA [21] - The ABS market is viewed as an attractive source of financing, with potential for incremental capacity exceeding $1 billion [22] Q&A Session Summary Question: Concerns about M&A environment and lease ups - Management indicated no slowdown in M&A activity, with ongoing strategic conversations and a focus on integration and accelerating growth [33][34] - Regarding lease ups, management noted that a significant portion of the lease up activity was driven by hyperscalers, with expectations for continued investment in large language models [35][36] Question: Nature of bookings and AI-related deals - Approximately 20% of bookings are related to hyperscalers, with a growing percentage over the past quarters [42][44] - AI-driven builds are treated similarly to other anchor lease up models, with yields nearing 20% on hyperscaler deals [46][47]

Financial Data and Key Metrics Changes - The company reported a year-over-year increase in free cash flow of $79 million for Q1 2025, an increase of $18 million compared to the same quarter last year [14] - Total operating revenues decreased by 3% compared to the prior year, impacted by divestitures and declines in commercial and wholesale revenue [47] - Cash expenses increased by 6% or $11 million in the quarter compared to the prior year, with part of the increase attributed to stock-based compensation adjustments [47] Business Line Data and Key Metrics Changes - The company saw a 6% increase in third-party tower revenues due to new co-locations and escalators on renewed leases [13] - Fiber service addresses grew by 6% year-over-year, with 14,000 new addresses delivered in the quarter [19][36] - Residential broadband net additions were 2,800, with 8,300 coming from fiber markets, lower than prior quarters due to timing of service address delivery [37][40] Market Data and Key Metrics Changes - The company continues to face competitive pressures in the wireless market, with aggressive promotions from competitors impacting service revenues [15] - The fiber strategy is expected to drive growth, with a target of achieving 40% average penetration in steady state within five years after launch [41] Company Strategy and Development Direction - The company is focused on completing the transaction with T-Mobile, which is expected to close in mid-2025, and is preparing for a smooth transition [9][10] - Post-transaction, the company plans to declare a special dividend to shareholders, with proceeds expected to be used to repay outstanding bank debt [11][19] - The company is also investing in its fiber program, aiming to expand its footprint and improve operational efficiency [39][100] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased uncertainties in the broader economy and markets but remains optimistic about the long-term potential of the tower business [13][18] - The company expects to continue facing competitive pressures but believes the T-Mobile transaction will provide better competitive choices and connectivity experiences for customers [16][17] - Management is confident in achieving $100 million in annual cost savings by 2028 through transformation efforts [39][78] Other Important Information - The company does not plan to redeem its Series UU and Series BV preferred stock, viewing them as foundational capital for future operations [11][73] - The company is actively evaluating its portfolio for potential divestitures, particularly in copper markets without an economic path to fiber [99] Q&A Session Summary Question: Timing of designated entity spectrum approval - The timing is uncertain and dependent on regulatory approval by the FCC, but there is optimism for a positive outcome [58] Question: Free cash flow run rate - The reported free cash flow of $79 million is not necessarily a run rate, but capital expenditures are expected to be down in 2025, which is positive for free cash flow [60][61] Question: Debt exchange offer impact - The debt exchange offer will be launched about 50 days before the anticipated close, and the amount of debt exchanged will impact the purchase price [62][111] Question: Fiber net adds and sales efforts - Fiber net adds were lower due to timing of address delivery, but as construction ramps up, net adds are expected to improve [66] Question: Rationale for remaining a public entity - The incremental cost to operate as a public company is minimal, and there are no immediate incentives to collapse the structure [107][108]

Financial Data and Key Metrics Changes - Total operating revenues decreased by 3% year over year, impacted by divestitures and declines in commercial and wholesale revenue, as well as decreases in residential video and voice connections [47] - Cash expenses increased by 6% or $11 million compared to the prior year, with $4 million of this increase attributed to a cumulative non-cash adjustment to stock-based compensation [47] - Free cash flow for the first quarter was $79 million, an increase of $18 million over the same quarter last year [14] Business Line Data and Key Metrics Changes - Postpaid handset results showed year-over-year improvements, while third-party tower revenue increased by 6% due to new co-locations and escalators on renewed leases [13] - Fiber service addresses grew by 6% year over year, with 14,000 new addresses delivered in the quarter [45] - Residential broadband net additions were 2,800, with 8,300 coming from fiber markets, lower than prior quarters due to timing of service address delivery [36][62] Market Data and Key Metrics Changes - The company continues to face aggressive promotional competition in the wireless market, with competitors offering multi-year price locks and aggressive pricing [15] - Demand for higher broadband speeds remains strong, with 82% of residential broadband customers taking 100 megabits or higher and 24% taking one gig or higher at the end of the quarter [45] Company Strategy and Development Direction - The company is focused on closing the proposed transaction with T-Mobile and repositioning the remaining business for future success, including a potential special dividend to shareholders [10][18] - The fiber program has expanded the company's footprint by over 30% in the last three years, with further opportunities for growth [11] - The company is evaluating its portfolio to minimize exposure to copper markets without an economic path to fiber [97] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased uncertainties in the broader economy and markets but remains optimistic about the long-term potential of the tower business [13][17] - The anticipated closing of the T-Mobile transaction is expected to provide better competitive choices and connectivity experiences for customers [16] - Management expects to incur cash income tax obligations related to the gain on the sale of spectrum in the Verizon and AT&T transactions, estimated between $325 million to $375 million [33] Other Important Information - The company does not plan to redeem Series UU and Series BV preferred stock, viewing them as foundational capital going forward [69] - The company expects to incur severance obligations for employees not retained by T-Mobile, estimated between $60 million to $80 million [28] Q&A Session Summary Question: Timeline for designated entity spectrum approval - The timing is uncertain and dependent on regulatory approval by the FCC, but there is optimism for a successful outcome [56] Question: Free cash flow run rate - The $79 million in free cash flow is not necessarily a run rate, but capital expenditures are expected to be down in 2025, which is positive for free cash flow [58] Question: Debt exchange offer impact - The impact of the debt exchange offer on the purchase price is uncertain, but there is interest in retaining attractive debt [60] Question: Fiber net adds and sales efforts - Fiber net adds were lower due to timing of address delivery, but as construction ramps up, net adds are expected to follow [62] Question: Divestiture strategy for wireline and cable portfolio - The company is focused on divesting non-core assets, particularly isolated copper markets without an economic path to fiber [97]

Core Insights - PRIME FiBER has signed agreements with AT&T to provide wholesale fiber access services in the Sun City area of Maricopa County and the City of Peoria, Arizona [1][2] - The company, established in late 2023, operates as the wholesale open-access arm of NOVOS FiBER, which focuses on retail fiber-to-the-home services [2][4] - The partnership with AT&T is part of a broader strategy to expand fiber infrastructure, following a similar agreement in Florida [2][3] Company Overview - PRIME FiBER is an open-access fiber-to-the-home (FTTH) infrastructure provider serving ISPs, infrastructure consolidators, and enterprises across the US [4] - The company is backed by InLight Capital, a private investment firm based in Sugar Land, Texas [2][4][6] Strategic Expansion - Andrew Snead, CEO of PRIME FiBER, expressed enthusiasm about the expansion into new markets, highlighting the ongoing progress in Florida and the addition of Arizona locations as a significant milestone [3] - Erin Scarborough, Senior Vice President of Consumer Product at AT&T, emphasized the commitment to expanding fiber footprint and enhancing converged services through partnerships like that with PRIME FiBER [3]

Financial Data and Key Metrics Changes - In 2024, capital expenditures decreased by 24% on a consolidated level, contributing to an increase in free cash flow [10] - Adjusted EBITDA increased by 7% for the full year on a consolidated basis [11] - Free cash flow for 2024 was $280 million, an increase of $88 million over 2023 [37] Business Line Data and Key Metrics Changes - U.S. Cellular improved subscriber results and executed a strategic review, leading to a solid year in financial and operating results [26] - Postpaid handset gross additions increased by 16% year-over-year, while postpaid handset churn decreased by 14 basis points [34] - TDS Telecom increased residential revenues by 6% due to growth in broadband connections and average revenue per connection [49] Market Data and Key Metrics Changes - U.S. Cellular's fixed wireless surpassed 150,000 customers, indicating growth in that segment [27] - Data usage by customers rose 37% year-over-year, reflecting increased demand for services [28] - TDS Telecom's total operating revenues increased by 1% in the fourth quarter and 3% for the full year [55] Company Strategy and Development Direction - The company aims to optimize its portfolio to focus on growth areas, including the fiber strategy and tower business [9][15] - TDS Telecom plans to deliver 150,000 fiber service addresses in 2025, with a target of 80% of total addresses served by fiber [61][59] - The company is focused on maintaining a culture dedicated to serving customers, associates, communities, and shareholders [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic transactions with T-Mobile and other spectrum deals, expecting to close by mid-2025 [21][38] - The company anticipates continued investments in customer retention and acquisition strategies, particularly in the fiber segment [30] - Management acknowledged challenges in the competitive environment but remains optimistic about the long-term outlook for the tower business [22] Other Important Information - The company has made significant investments in 5G mid-band deployment and fiber programs, increasing its footprint by nearly 30% over the past three years [10] - U.S. Cellular's equity method investment interests produced $169 million in cash distributions in 2024 [24] - The company expects to incur cash income tax obligations related to the gain on sale in the T-Mobile transaction in the range of $225 to $325 million [44] Q&A Session Summary Question: Why was now the right time for the leadership change? - Management indicated that the board felt it was the right time for a change due to the transformative nature of the ongoing transactions [79] Question: Will there be changes in tower reporting? - Management confirmed plans to provide AFFO reporting post-T-Mobile transaction, but structuring the tower business as a REIT is not currently on the agenda [83][85] Question: What is the long-term vision for TDS? - Management emphasized that achieving 2025 priorities will position the company well for long-term growth in both the tower and fiber business [115] Question: How will capital allocation priorities be managed? - Management noted that while specific guidance is premature, the tower business generates attractive cash flows, and there is potential for returning capital to shareholders [123] Question: What are the expectations for fiber service address growth? - Management clarified that the new fiber goals are based on ongoing expansion programs and the EA CAM program, with a focus on pacing spending according to financial capacity [89][92]