Consolidated Communications (CNSL) 7 Aug 222022 Q2 Earnings call transcript

Ladies and gentlemen, good morning. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Consolidated Communications Second Quarter Earnings Conference Call. Please be advise that today’s conference is being recorded and all lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question-and-answer session. you. Thank Instructions] [Operator now President call Corporate of will Spaude, Communications. to Senior Vice Investor turn I over the Jennifer And Relations and Jennifer, your begin you conference. may

the XXXX Good up Communications afternoon to earnings all therefore, with our you a for we thank of morning. yesterday sooner. joining speak sale investments, And material event to second call. earnings call wireless quarter the We are announced you our Consolidated and moving

future Investor are Our Harbor of Relations expected earnings of the financial discussion posted release, affect with the may about Please provisions A Safe forward-looking contained expressed Today’s events and filings includes today. two section presentation website risks the results future all consolidated.com. and slide in results at of the our Consolidated’s presentation. statements from uncertainties on involve statements factors that review on those results cause discussion and is may that to financial that SEC. actual differ materially

we on refer and certain press Officer; are earnings In Childers, Executive addition, reconciled With defined will Financial Steve our Udell, Chief our to Officer. Bob measures, our call during and today non-GAAP me which presentation release. in and Chief and are the call, President this financial

their I’d Following up Bob to we turn the the over for open now call remarks, prepared will questions. call to like Udell.

our results, with second Thank associated very you, few Jennifer, company. and transformation to important I which fiber include broadband milestones quarter a am good share morning, everyone. to a very excited a -- company

offsetting This an in of broadband turn record positive consumer declines. number second fiber is delivered connections, and we net a milestone. First, adds for important the quarter, DSL

key locations first a In we to additional are year track continues Each as position XXX,XXX inflection in passings over achieve months to we these build operating the to locations fiber on XXX,XXX to execute Our year, a reflect execution. the XXXX. return growth of of we fiber milestones the XXX,XXX fiber of fiber record by built recent build us revenue the for our X roughly and and end constructed million well upgrade produced points total quarter. six this machine with passings and

Additionally, of announced first and record executing consistent partnership priorities, our increase X,XXX expansion $XXX expansion transaction step added further creating be of from XX% fiber wireless important add. enables which the sales This subscribers, investments quarter sale with million. our transition a the fully strategic to broadband on focused an by recent we the fiber invested end some a is a from subsequent X in and and to our The the plan. details company Fidium for more Fiber of and took on plan. remarks. proceeds to and Steve our Consolidated advance long-term its will will fiber-first increase growth in we our business provide ago quarter, the simplifying value In year his times on quarter our

majority, customer XX% X-gig broadband fiber losses We XX% with adds first our time service. the net vast years. new seven for are those also Most fiber in the outpaced of choosing subscribers subscribers total consumer this importantly, DSL positive achieved year. The of game our adds, for over

at ads are available XXXX, we on from to For times add June. end launched XXX track fiber the and Fidium we X-gig the year communities X the full net in now speeds of is XXXX. symmetrical

leader the pleased of we still interest promotions. we customer early, our position serve. and in X-gig our are as importantly, the technology Fidium is with markets the further solidifies X-gig it And While reaction

continue see We significant to in growth consumption. data

digital is customers us. superior to the satisfying and Vault make with transparent per which fiber and An continuing clearly to do easy. and and is consume simple for the upstream product over study business period. has month a upstream bandwidth than it customers And future Our plans, to usage experience, times Open critical This bandwidth times pricing noted our Fiber to X means tripled data to market fiber customers broadband customer is demand. X designed demand DSL makes more product, past easy increase. three-year

Our symmetrical home have appointments customer speed, no and offer WiFi, whole game is No Data support premium dedicated caps We markets convenient changing we premium installation contract for the channel. Mesh and service serve. a

All the possible for best of create experience our is to this customers.

by have very well high customer possible. been a game This expect industry-leading over Fidium best We broadband ensure Fiber the Score elements on closely reflects hard Fidium so and measured we the working our Promoter is delivers to Net received, satisfaction been experience XX. Fidium changer. score has as of all customer really

our penetration, continues at new to cohort penetration XX% target exceed mark. cohorts build our XXXX cumulative to Turning XX-month the fiber of

our This communities. our In base cohort XX increased basis year-over-year. in increase reflects addition, in pre-build experienced the to have pre-built penetration our has positive points receptivity we base XX% fiber

XX% reminder, target range horizon we give year additional some context three XX%. is to year be fiber I a XX% five-year for will the have a parity. and duopoly it you penetration to thought penetration useful our a be closer cohort two on As Terminal where our markets. over is might

XX,XXX XX,XXX largest or break We make XX% XX,XXX; and are a markets XX,XXX roughly have our make population and into over will XX%. -- up population three out and less; tiers; it between a XX% have of

provider. network to or the Fiber as cable where technology entrants didn’t seeing reminder, product as are quarter we exist new superior fiber upgraded last introducing -- the said, providing competitive fiber, one XX% the are alternative have we environment. with and in fiber higher best from other we and previously the competitor and a building different product of are our That best these markets have responses customer Fidium that not significant There’s an no experience. As And as anything just best no by communities. a we far notably have the

launching continue We are Fidium. pre-sign to up very we activity generate strong where

to via enhanced website. local strategy July and our best easy be to was since the media looks digital for month to started we it. our introduce well targeted pre-sign and provide and a exceeding using are net adds bill self-service Fidium June We up and options

Turning to on year. track when have fiber this outlined our are upgrades. to million and complete Fiber the five, will locations XXXX, have we slide build roughly upgrade plan, X on we end we million we our locations passings which By over of Fidium is planned XXX,XXX fiber X fiber

commercial Our the multiple fiber significant consumer, to us revenue expansion transformation opportunities our provides for plan carrier that growth channels and these represents leverage assets opportunity streams. for and

architecture portfolio. services Our $XXX upgrades are core of grant-funding across future, projects additional edge in XXX-gig in and enable the will XXXX, partnership we see just to and in to network broadband opportunity really our the XX-gig enabled million up our product few states. We capabilities and a future-proofing

align opportunities all offset high with and cost our build pursuing rural actively plan allowing a passings, model. help our are We with return that consistent

partnerships, successful record and positioned government public our for and is be faster strong we are continues private we demonstrated As capitalize securing very to product. fiber a on services, incremental which speeds demand in believe track executing by well programs. There to superior

executing plan Our well clear are is and on it. we

cost incumbent including well carrier deployment network these We we fiber-rich effectively have can extend. have markets and position. several know We class a fiber very that our advantages, meaningful

England have experienced ensuring fiber. access We fiber where our us and have and very XX% workforce is close backbone for builds have and complete contract we facilities access of capacity existing time. Approximately to facilities to pull existing in aerial conduit Northern we to which and fiber aerial flex, our various allows our proximity teams New we in on

growing record we carrier our our commercial to the of in both channels track and continue data channels, quarter. long revenue across Turning transport second

extensive fiber XX across XX-gig and timing like in negotiations quarter our of delivered our become sale a switch great one-time to while success point diverse, from approach, bandwidth solutions solution. designed and the is go-to-market benefit highlight allowing the Our adviser network IRU network a with solutions-based second complex example and simple problems. to to sales Carrier our customer’s solving customers in leverages a I’d commercial a revenue us We booked network. a trusted delivering strategy Illinois-based related the quarter. locations. This contract Ethernet to fiber educational One Champagne, and pain scalable second was our to network providing

pressure, under an on result new to re-rate fiber-to-the-tower seeing towers. we opportunity win of these negotiations, previously is are as As rate business we and discussed, a bid have the some but

fiber fiber to correlates flexibility New ensure same lit buildings our best quarter and castings commercial margins, and grow our the customer higher to to upsell within the unique network, opportunities to for We greater which routes leverage experience. to us had of revenues. on increased new our the our in increased second a sales activity opportunity XX% provide XX%

on Now mind everyone’s let conditions. me and something that’s address economic

part the to slower customers. see some on We are beginning of enterprise decision-making

it’s little signing, sales from funnel solid, taking just remains to our quote it’s longer. However, a

these increasing, addition, mitigate energy steps increases. we and are taking In fuel and are costs to

than fiber are overall quarter lower second possible, where up to will our build, that and our builds allowing down built call on year’s financial build and keeping our they inventory of us insight turn unit fortunate Steve, to, Steve? while otherwise provide accelerate this We who will I over now might cost we the costs some our be. ahead more results. worked on

$XXX to and Yesterday morning market and an million. Wireless we of gross Thank the of the Verizon partnerships. interest sale proceeds Today, update investments Verizon sale begin Wireless on after Bob, everyone. you, of limited will I for closed, good announced with our these to our

reminder, had Three in were Verizon, in to of interest Consolidated our partnerships these two Pennsylvania, ownership X.X% almost Texas were with markets. a As from XX%. in with partnerships ranging limited five our located

between $XX shielded $XX promptly XXXX. estimate are the of will fiber expansion the be from the on QX estimate $X actual quarter to the plan. tax XXXX overview NOLs and our to $XX million estimate million in the second and each line and incremental or signed distributions of expense income results $XX operating sale, I fully distributions approximately or million, provide investment the time state partnerships to normal will partnerships transaction. cash $XXX.X operating second be of one We employees, federal a I remaining The used by of in these to approximately gain taxable the supporting million, our to which currently time Total no for have close million QX. received Related to EBITDA for these we was be $XXX.X Net is year-end being in in million reduced and our impacts we million taxes quarter second the our proceeds, $XX.X by will is cash adjusted and now potential paid and based that generate assets, quarter. and to agreement $X the on will state expected EBITDA income million closing million. was we We annual close growth by Cash are capital million an our $XXX XX% which estimate the arrears. distributions. in adjusted investments distributions We quarter representing expect guidance. margin update full year quarter revenue one following

approximately As full Opportunity the for Rural our EBITDA previously update in $XX.X guidance million had January a of was the disclosed, XXXX. million a will by year, million received effective just and quarter $X transitioned under CapEx reduction The in this $XXX.X the on II to out quarterly things. want impacts but we funding to annual revenue Xst $XX CAF in Digital a subsidy year Fund. first, basis call I CapEx bit, million. few I

more CapEx. deliver roughly took be a quarter to our our QX second weather XX,XXX and for than XX% XXX,XXX period, record pass construction upgrades. average than we favorable would This peak is will or approximately cost a million more original to $XX advantage QX account and target The conditions with of typically quarter of

pre-work continue released added construction in be process. locations substantial an estimated our to of last million the $XX and half in with on marketing that we the Additionally, of do completed year cost for the work will

to supply month. available construction engineering work with ahead. ratable current actually two of about selectively in inventory are and sales build basis working critical teams ahead to inflationary challenges chain economic the bill. consideration continue Our Also, making we accelerate and focus each is This environment, the to quarters inventory a on

revenue channel. will customer by review I Now,

our channel, broadband added sale, approximately almost engine XX% Ohio in consumer last million times $X.XX, a up our second, revenue adds to have up or of was we for in year net from second it in brand quarter right X% after Overall, -- $X.X up sale X.X% our a were XX,XXX down months. million, normalizing connections year-over-year get and assets revenue ago -- ramps. $XXX.X was our fiber was consumer the the year-over-year. a Ohio of as customer fiber year consumer Consumer ago. consumer million, Turning consumer Normalizing X.X% $XX.X sorry, $XX.X XX compared the X acquisition total fiber revenue million, X.X%, revenue declined for to impact the

and are just after in million quarter, net $X, the primarily up first revenue speed promotional or of quarters the have broadband fiber the second for Consumer taking customers revenue year service. consumer time Video is So almost due associated higher was $X.X lines by $XX.XX and company down voice rolling year-over-year. to we build plan mix total of excess erosion first adds. as sequentially six XX.X% driven the and revenue in $X.X declined in almost by X%, continued was speeds the off pricing positive million, Consumer of services. achieved years,

revenue our programming Video $XXX,XXX free $XXX quarter, flow. $X.X over-the-top Business transition and compared costs in QX. and Access is to point in -- a slightly cap dedicated X.X% $XX.X higher million Consumer charges in million, enabled driven data systems video the voice continued XXXX. building point $X.X million, million million, up this was usage Data second growth revenue equipment to Offsetting slick revenue realized installation down X.X%. million line X and -- margins X.X% $XX.X decline. QX the $XXX.X are down deployments. or video to throughout job in erosion year-over-year, and Commercial rate or $X.X distance for teams services by with has long cash up combined Our quarter. lower transport Internet was drove services is year, which revenue a primarily sales improving was up erosion, was growth last us custom the at services. linear occurring momentum

one-time to in also sale. Carrier Our and be million IRU had in of $XX by $XX six primarily pricing fiber-to-tower on $X to million expected months of range new last year. the range to for a $X carrier late that the the now of the in revenue a revenue to been renewals $X.X million contract million revenue included reduction recognizing in a estimated XXXX is be this of fiber impact benefited million,

for to Our the carrier XXXX. trying team in actively as XXXX run going into impact the rate minimize is well

the year-over-year. driven was a universal million, the balance of opportunity new mentioned, add major ongoing business other revenue, XX% result As Network special primarily totaled coming of as $XX.X Bob fund down with have from to $X.X the revenues opportunities towers the the negotiations, we service million Over carriers. lower and with decline access by access.

an is this Operating As now $XXX.X EBITDA in a with expense interest in Net a neutral. reminder, usage primarily million in sale. is The a as of which on $XX.X charge million of million, a programming a the fuel to travel stock result perpetual offset IRU $X.X fees, pass-through in of so late were compared maturity in of carrier drivers were was or from ago, utilities universal it swap of the million primary reduction year expense XXXX. expense, preferred ago. million note, was $X.X and agreement improvement interest the $XX.X remaining decline related in $XX.X decline Searchlight a result December. million, converted primarily to decrease to X.X% The July million expenses expense $X combined was million interest non-cash the expenses an service a of the year one-time by $X.X and video which has interest

our cost $X you coupons, loan approximately -- interest overall over current the senior a want loan with rate X.XX%. with $X.X when against hedge $X Given our billion term notes our remind or our -- fixed million debt we that of and term and environment, have is debt to million billion $XXX our we is rate of combined XX%

or on liquidity, of of see effect along eight, wireless proceeds our limited you capital to with -- giving pro view the nine our Additionally, can structure slide forma the slide limited Interest. wire our of net partnership sale the

basis, on debt leverage XXth, a and $XXX pro our net from forma June improves Our over $XXX million. liquidity million X.XX at times to was

a XXXX. no plan. infusion capital have position additional puts support fiber maturities expansion we to debt our until very us Additionally, The strong in

our expected announced by million FCC an to generate under the routine following year-end, It’s we reminder, which to proceeds we agreement to City approximately review a currently Team approvals. close of regulatory in assets As net $XX estimate sell is Kansas March, with Telecom. and

in to portfolio continue to believe markets asset we capital ability review We through the for all our Additionally, or investment monetization. we raise have additional potential divestitures.

we build criteria potential this guidance. our opportunities, and competition includes market XXXX valuations. Our evaluating updating review the Today, fiber in are level

Our outlook is nine. on outlined slide

to of to First, range million. is adjusted the year million in the EBITDA $XXX expected now $XXX for be

following for $X each outlook the be in investment. $X on -- primarily transaction. cash will due fourth of EBITDA estimate sale currently million adjusted distributions distributions the time updated close to Wireless impacted factors; cash be to million could less the our wireless quarter reflects the that cash three QX We Our the to first, Verizon the based

We inflationary expect on are million half fuel expenses year. and last million and between our $X to pressures utility costs, operating and the primarily $X in the increase of seeing

taking are minimize these impact costs. increased the to all We necessary steps of

Third, are slightly we erosion voice revenues. additionally, experiencing access higher our of

this the million million work potential million. be to to to be are The upgrade range approximately impact securing track and fiber range of with There some additional for in XXXX income now $X pressures. this by we expected $XX over our will do taxes be turn locations year to wireless level higher million are of $XXX inventory XXX,XXX interest the million primarily full taxes to $XXX target. million. now and CapEx $XX sale adjustment to cost earnings considers Cash Capital it for taxpayer in cash change no income a to XXXX. is expected to and $X $XX to The that, until be With investment on $XXX are in released of million inflationary and we million to $XXX upgrades Bob. is expenditures to to this the also now investment in expect still state expect be achieve and I expense million. $XX We the to over expected not associated now in plan cash range pre-construction to million reflects back to

Thanks, Steve.

broadband fiber positive well We connections frankly quite executing in subscribers and over quarter, years. achieved time expansion record our seven on consumer total this plan, are fiber having the first net

of our commercial carrier and revenue. continued long record data track have growing transport We

enhancing are significantly industry-leading NPS by year. We and channels added across in we focused $XXX and on have and experience as the support our We ensuring million improved liquidity our of disciplined with past the customer aggregate assets announced our plan. growth divestitures all flexibility were shown structure a to capital non-core scores over

to take are future, our As the value we shareholders. focused at on now look questions this we Operator, creating and we for will time. growth long-term

you. question [Operator Thank our first Williams from take And with Instructions] Cowen. Greg we will

Your line is open.

question. Great. Thanks for taking my

the Second other Just one year. help accelerated this I the curious, carriers accelerate build City, further taken you am a it mentioned would have am Kansas got Ohio build, and capital, have than build on still more you fiber do they that’s I you maybe their the second just sale have for have you that, XXX,XXX reiterated when and Verizon just does maybe case divestitures, build, was they on you noted your on the breather wondering after are Verizon. expected? looking, if quarter like mentioned and sounds question figured I just better

sales does still are what you exploring So given Thanks. rates? environment rising look like, and other that asset

question on the first take Greg. focus Thanks, build and I will Yeah. to divestitures. get then the

the solidify for where key looking our are we which solidify to XXX,XXX absolutely at to to first view is to we growth. the accomplish We million X.X plan, Right plan execute on year, build fiber our this continue expansion -- our always build-out. full as now, the we our go flexibility is of

NTIA, opportunistic plan being made and certainly and by a that’s that we does funds a I the so federal think we ours. on what the pursue infrastructure will allocated And focus government key available as remain this is public-private or build-out partnership from ensures perspective

and flexible for ways remain to are committed to the to million, X.X grow we opportunistically going at are now we So it. looking

were Regarding so to and and a about of total all business, the our it’s assets said we penetration divest we of continue are to what that we divestitures, This said, to as our transformation opportunistically and fiber to we advance allow we are going to or going builds exactly focus. fiber evaluate footprint. of doing have do, and is us our portfolio deeper expand a our sell

as structure coverage, transition. to So the focus XX% execution exceed that’s on the our fiber and I our our focus will continue we capital and think,

Thanks. Great.

And we will take from Michael next our question Citi. with Rollins

open. is line Your

for Mike. Thanks. This the questions. for Thanks Anthony is taking on [ph]

leverage you target and monetizations EBITDA, have do as enterprises. you elongated a on basis Just mind decision-making about also pro macro, forma for on impacts follow-up, consider and then neutral future a the asset talked in to a you an

the you. On in collections Thank consumer impacts wallets? on side, are seeing consumer any pressures inflationary with activity you

Take the first part?

the Yeah. leverage divestiture, question. I respect identified investment of Hey, in is the to Thanks I Anthony. to we With we are Good -- eight markets key we one, as look eight fiber have we mean, today are prepared seven in mentioned my evaluating. where XX This to as at remarks, Number for our really states target, morning. neutral Steve. the today.

next footprint. not if we distraction taking there We to opportunity, we opportunity management to -- looking produce and a what’s properties the all and going just the them an at are Every monetization going -- build. have maybe good accelerated will to are cash, of new build where to not a we are across build, fund like, is

Verizon if transaction -- cash leverage. really come from the helps about to we competitive impact the out it sub cetera? at individual obviously, we we this flow and What’s look we are I business. we going perspective. every Every say sales. Verizon targets valuation take cetera, to and from that is, when raising into our build? company so. characteristic fiber be about to we us importantly, really over that time, when these of number be range considering evaluate a long-term invested execute those, of over is we fiber the asset time, competitive are environment, ultimately on kind we even plan, based are cash would a one and But as in are expect X% et be the back dollar But mean these dynamic? would on -- going as to really -- What’s So the monetizing, still from build -- incremental et I growth leverage the most dollar with is

[Operator Instructions] And question Ana we with next will take Goshko our America. from of Bank

line open. Your is

very Thanks Hi. much.

few questions. a So

I the kind your on a are guess, think of of, first, X,XXX like new quite mentioned in you ability provide and about moves new capture So in to bit from I a players XX% on fiber in margin, impact an adds? company. a think, two, you from? more have, the you what those adds heard within headwind Could subs. the of space those a I that other housing then update the we I if color is that’s therefore, net quarter, grid of the some market, subscriber like the And know coming limiting your limiting to the on lock would housing have to where are market

Ana. Thanks, Yeah.

the and regards post-COVID to. seems been they markets, and first to for have with migrate -- during primarily start are to suburban COVID me back markets are and we With the and first in to they people our to Let housing get size markets, question. of environment your what an attractive it as rural see I described market the then

environments you remember, consider overlap and so that our symmetrical, compelling the the duopoly and our size product competition even provider. all the and of And have level infrastructure symmetrical X-gig were XX% the when its while cases, And don’t have a but we bringing a third many a X-gig, based of you environment few activity change, that at competitor. subsided really has had cable some communities very certainly move-ins have catch new some to of move these any in customers help and haven’t got facilities markets of of making

in moves. have recession, recessions have group to that call remain that from were and we on housing seen think relates industry And lock, in wouldn’t grid -- peer comparable actually that the joked as we amongst treat seen insulated our the but years I basis so privately position And for excellent a to pretty an it we I a slowdown well. somewhat sales

enough adds, on raising the the that’s what subs to this I economic in net the are way regards attractive the and changing housing. small and coming consistent -- these work fiber just people With an So probably product communities mentioned, X,XXX live and new it’s just with from them. prospects the is of

subs. And think us we that’s our see really XX% sells something helping I so focus acquisition, so and people advertising itself is and that it’s digital new and get I and service to think, digital markets on expand the to why those

Okay.

do the outside cable winning do of are think or of you you sort question of attracting kind feel really is is any that with main or compete that? it from where greenfield I you So cables, share

No.

whoever our from I TV… market, the think it’s us winning is customers different cable largely competitor in

Okay.

… service providers.

this, And know a I past, then think also, I the but Okay. fiber for passing, low, are regards kind has really any had you been cost cited to cost the just in the an difficult of an the if two, of industry move passing missed longer at that changing; $XXX. than kind to sort more one, along achieve? costly are to of there as connect potentially average Wondering inflationary $XXX, I average more apologize impact; in plan, that’s passings past which to with $XXX so Great. in further you how

are But aggregate the our on will an entire and we jump across in to here. start like I to Steve. am is $XXX talked sure basis, will This have I Ana. is footprint. averaging past about to way want right. in $XXX Hey, absolutely think pass The basically cost Bob I you

have. Bob As that or significant earlier fiber we of FTTP New based on Northern in thesis FTT a amount mentioned the we have the aerial advantage England in cost

we is as the done the been the So in I buried for have half in I more our underground doing guidance be work construction with probably for will averaging and have or question, last markets our the think and modestly think markets upper type inflation legacy those of year. we we $XXX increase end think what of are inflationary we did the more

So balance let’s the be cost But and build in build aerial future cost plan, and to X% market cetera. upon just going a the pass the really think the average et underground, I how could to increase to cetera, the say fine-tune and we to markets the there is et potential, I length going, between for over drops, would be time, X% are the here say, of dependent duration. we

think think are still it well on cost still have -- under the I will think assets building be it. averages group I of could where we for time, that the we are unique over So But past. based we the we peer go really up

So Bob, to add do that? anything to you want

Yeah.

if with perspective. so you or look good these ability getting basis the and its those advantage with costs to a inflationary on was of I see think the we opportunistically, tell chain, with addresses of cost unit think passed you supply as headwinds, new to low were from can’t a ahead I front planned. our opportunistic in comparatively inflation are homes in keep we our or building resulting but in spot. started totally headwinds that that’s working It an started I

let’s sneak or expect are in, you say, updated believe revenue either EBITDA then that on which there you a, any you when sequential basis and Thanks. you come I can just stabilize to can targets Okay. have And first? on

Steve. is Well, this

moving look to I outpace it the the if on starting at that guess, look revenues would parts strategic consumer I the -- DSL drag on if fiber, about -- you broadband, So, our is outpacing growth being it, at growth talk the erosion. is you or way

We are the commercial really working that re-pricing I carrier, on and data and strategic revenues transport are focused driving and carrier tower mentioned. but reset, we through for

invest aerial may really growth and start erosions, prem are supporting So probably revenue where probably I as to we XXXX. we to growth will on -- revenue voice to we but -- sequential Again, think early you the mitigating commercial the EBITDA opportunities the the in seeing need in and continue hard to work continue can. think fiber I

great. Well much. very Okay. that’s Thanks

we from with Joe next question [Operator will And Choi Instructions] take our FPA.

line open. is Your

broadband and from question consumer sales debt wireless there. add the is side you the the question milestone on of coming Congrats A Hey. partnership world. net this on the for

will package the the investment expansion. proceeds will facility reinvestment, and that the fiber or the you the collateral that confirm be notes? -- credit that’s be within supporting occurring secured So will whether used invested be not into Can

the all at. are operating Yeah. the I fiber program where on are the supporting assets assets subs restricted build mean,

there. look underlying through dollar -- and you if So, package -- transfer with wireless operating yes, going past But July raised the -- refer the are properties. out to clear, the the Verizon will you from unrestricted talking every are coming benefit the for the Xst capital partnership just go for benefit be the put the group that. back come collateral restricted of sure to restricted not time make -- to creating all the for sub the the assets go that just to each through identified was X-K benefit to to eventually that we But would other, group over I we back come an cash the we where

I did read Right. that Right. release.

an created unrestricted you so sub. And

wireless then -- in pulled collateral you you You out assets sold it. the effectively package, put the there partnership of

Correct. Correct.

was, I that that’s question are that that just network money, you within… in And to cash use that’s that to cash, network, -- fiber invest cash fiber then my the the occurring to being guess, the be and that invested into going reinvestment, clear

Yeah.

like guaranteeing debt the -- subsidiaries that and is that… securing … existing facilities, your are

Yeah.

… understanding am that correctly? I

Absolutely.

Okay.

That’s correct.

going was removed and the in? it back its effectively from So collateral

not yes. a but Probably one-time, Yeah.

Right.

Okay.

there there -- there subsidiary there because with rationale subsidiary specific unrestricted designation, was the the an so -- was do a to understand, is I through what from going resonation? sales asset was vis-à-vis behind And the unrestricted Okay. ability provision, this

use will It options -- was our Hey. Bob the the thought know a flexibility. raising might the step time maximize to and was we didn’t to we for many vehicle we Board maximum considered have to This was capital and so flexibility just we is this outcome Udell. right primarily and what and so get it

Got you.

you there. Thank Thank congrats and on taking milestone you. the the for again questions well. Very Okay.

Thank you.

call turn further there the or Bob are no this would Mr. to time. at [Operator like to Instructions] closing any back And remarks. additional for I questions over Udell

for Have joining you opportunity day. your next thank updating be special be appreciate and support in very interest you all to on call. forward great and powerful fiber this at look We a is us to today. to and plan a this you and Thank our and your transformation time industry think implementing we this Consolidated

your you gentlemen, call. you Ladies for thank and today’s concludes and now may disconnect. this We conference participation