solidated munications (US:CNSL)2020-10-29 23:51Financial Data and Key Metrics Changes - Operating revenue for Q3 2020 totaled $327.1 million, a decline of 1.9%, which is an improvement compared to a 4.2% decline a year ago [20] - Adjusted EBITDA was up 1% or $1.3 million from a year ago, totaling $132.2 million for the quarter [20][29] - Adjusted net income per share was $0.23 compared to $0.06 per share a year ago [33] Business Line Data and Key Metrics Changes - Data and transport revenue grew 1.6% to $90.2 million, driven by fiber network investments [22] - Commercial voice revenue declined by 2.7% or $1.3 million, while other revenue declined approximately $900,000 [23] - Consumer broadband revenue grew 2.6% for the sixth consecutive quarter, totaling $128.4 million [24][25] - Consumer voice revenue was down approximately 6% year-over-year, but the decline was reduced by nearly half from a year ago [26] Market Data and Key Metrics Changes - Tower connections under contract increased roughly 2% year-over-year, totaling approximately 3,900 connections [13] - The company has nine public-private partnership fiber builds in process, totaling approximately 10,000 homes passed when complete [17] Company Strategy and Development Direction - The company is focused on a multiyear investment initiative to upgrade more than 1 million homes with fiber, aiming to provide superior service and revenue growth [41][42] - The partnership with Searchlight is expected to accelerate fiber expansion plans and enhance financial flexibility [40][41] - The company plans to target substantially all free cash flow towards high-return fiber expansion projects [45] Management's Comments on Operating Environment and Future Outlook - The management noted that there have been no material impacts from the pandemic on business operations [11] - The company expects to see normal levels of seasonality in Northern New England residential markets [38] - Management is optimistic about the fiber expansion plans and the potential for growth in the competitive landscape [60][61] Other Important Information - The company completed a recapitalization, raising $2.25 billion in new secured debt, which will bolster growth plans [7][36] - Total liquidity, including cash on hand and availability under the revolver, was approximately $191.6 million [34] Q&A Session Summary Question: Verizon cash distribution and EBITDA guidance - Management indicated that while Q3 cash distributions from Verizon were over $12 million, they do not expect the same level for Q4, but anticipate being above the typical range of $37 million to $39 million for the full year [53] - Regarding EBITDA, management did not reinstate guidance due to uncertainty around COVID and potential startup costs for fiber deployment [54] Question: Fiber build cadence and penetration rates - The company plans to add a minimum of 250,000 homes passed in 2021, with expectations for potential overachievement based on past builds [48] - Management is confident in achieving duopoly penetration rates of 30% to 40% in the Northern New England market over the next few years [60]