Consolidated Communications (CNSL) 1 Nov 222022 Q3 Earnings call transcript

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

the Good thank earnings morning, third you joining call. and quarter Consolidated for XXXX Communications

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

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

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

and good Thank you, everyone. Jennifer, morning,

subscribers significant progress XXX,XXX a a year the third year. quarter now grew area, from the up prior roughly our fiber fiber service and up XX% fiber we our to continued XXX,XXX, first passings transformation ago. to XXX,XXX During added becoming broadband approximately on making customer fiber have versus We company. across base XX,XXX our We

of our seeing Fidium we're fiber adoption Importantly, product. strong very X-gig

broadband highlighted very slide we consumption a We alternative also points offers symmetrical for spend some about Fiber the will frequent satisfaction fiber when four. detail lowest continue. to Hybrid scalable quarter, see expect time data market growth, with speeds resilient into with worth high product and which me strong offerings. compared customer ranks faster is proof latency. go It decades' of let I more Before broadband outlining the on the on runway. dynamics third

in Homes of the growth XXXX to For American and average example, rise devices in connected expected number the by XX% XXXX. between is

streaming the about we importance top will in be during higher challenging of and able our that much by growth a past broadband increased video times. are proof devices Plus, and know in its since all few deliver scalable critical economic networks the the the everyday viewing on years. the importance COVID. Fiber connected, we being XX% conferencing However, considering lives hours work And given technology connected to to fiber future. expect future fiber is upgradeable, speeds broadband resilient over

we the more provide near that cash build to future, flow to upon is making the XXX-gig upgrades fiber core available to and subsequent network upgradeable technology. return scalable of built completion term with us The the XX-gig expenditures. and the in fiber Our XX-gig with years is today, for XXX-gig capital our while of network to today normalized long home are free

transformation of where But historically the copper garner pure win you'll significant play from we Consolidated oriented five, consolidated strong company see exhibited slide we why on have are fiber growth. deliver as we the On our confident. value our are believe a plan multiples. for will keen Finally, a simply, to fiber telco execute fiber. and shareholder we value stakeholders with that companies

we plan. the build position structural advantages as fiber incumbent on with us execute our First, provides distinct

New as XX% of backbone England, approximately facilities. and have In XX% England Northern plan. for We our facilities aerial of is existing where represents aerial existing buried capacity access build and have it reminder, a our is network proximity fiber New we And to in conduit plant. our close pole

footprint. in favorable operate a we competitive Second,

Also have competition the just of limited regions. In markets in XX% market due cable to our we serve certain terrain competitor. fixed the the or in wireless wireline that fact, one is less

Our product from communities other isn't with our generally service technology available a providers more that superior is focused providing on cities. Fidium populated fiber who are

our of the across communities in digital role are playing and big are the bridging mission we We a we proud divide serve.

already seeing industry state and our partnership year fiber we've product target. particularly public-private Third, Net plan. penetration This our above with build competition, validation exceeding our opportunities, our detail product greater we're Scores market Promoter for evidenced for is We'll at broadband when the the we're we is through offering. well cover cohort Fourth, in well XXXX stimulus cumulative is the levels the This one in entered. discuss XX. our that leading and positioned greater federal symmetrical through than this

to quarter Turning connections, a contributed positive consecutive consumer second broadband Record third net of results. DSL adds offsetting fiber declines. quarter to

$XXX support long mark divestitures announced revenue us company, bringing XX%, not and build to track us broadband million also but for progress during in becoming by continued the to our a term strong over have fourfold to over September since business on pace important upgrades Notably, a the Our are only To on return to aggregates transition our EBITDA XXXX. XXX,XXX milestones past fiber complete company, our through fiber of X we mix position up end, in location track has we passings broadband transformation simplify XXXX. growth. fiber first to million to fiber locations year. fiber These year nearly addressable and nearly

let's service turn third plan. our bringing quarter, to locations I'll you our XXX,XXX eight, XXX,XXX locations slide fiber total In fiber XX% on Now to our the passings or update build upgraded overall we area. where of

perspective, build we years, locations, more than three will XXXX. to additional million company into next the be fiber will by XX% times from to fiber To put this passings the seven this to plan XXXX. transform which an X to a forward Looking increase

offset a with broadband all model. high align area. We to service consistent funding pursuing or rural help plans are tracking passings, actively $XXX build and to government allowing partnership with infrastructure throughout opportunities in our opportunities million We're roughly grant cost our that our return

plan as over past just as approximately fiber we locations XXX,XXX achieve the in year. that upgrades million X per are exit averaged our to We over We've we've the quarter XXXX. we built proven can ramp confident quickly

the family is of XX% that it cumulative Our above which are passing cohort and for population XX%. is remaining achieved of fiber through penetration home of approximately single We the or penetration at of or SFU total our target of mark units The multi-dwelling or XX% XX month fiber largely our on ready units sale. MDUs is fiber multi-tenant large XXXX this passings. XX.X%, channel MTUs and passings is to consisting

we duopoly in the launch provide network XX% will parity. MDU business team for be during closer us Fidium upside target is the XX%. penetration channels cohort MDU our five year reminder, two The and as and XX% a customer Total three As we XXXX to penetration further deploy for year the over penetrate horizon a to range groups. have is small these year year

penetrations which Our fiber gains we our while improved pre-XXXX to grow opportunity Fidium points there's positive, existing basis fiber XXX end feel base as of momentum. brand and additional have XXXX, since the grows

a revenue our we've fiber record Fidium XX, adds. catalyst commentary a ago we second added the XX% that are subscribers, increase Let's on quarter, turn times a from a the growth slide where quarter X our will to provide opportunity, for a the and ARPU which overall and fiber sequential increase return I experienced in future. some XX,XXX and recent growth from In EBITDA year to

total also achieved the for positive We consumer adds quarter. broadband

subscribers. are losses fiber and new Importantly, for quarter. the DSL consecutive outpaced majority service customer our X-gig XX% vast second Over gains the are choosing

consumer Our connections, fiber $XX fiber ARPU of providing broadband from us now shift ample to from XX% which fiber XX% continues up by is dollars, with trend to exceeds upside. ARPU ago. a to year our well copper as copper Adding makes up nearly this,

the a game amongst at been plan subscribers $XX moves per per year one month new to favorite and Our anniversary. starts which on has up $XX month choice

long that cost process add characteristics the resilient operations efficiencies associated derive fiber savings maintenance. to fiber our Additionally, with has I'll from and transformation as more from benefit term are and initiatives on we automation there

This coming of from up from XX% the over web. ago. example, Fidium for year fiber the considerably orders are is For a

turn services in quarter, nominal the churn. and let's a customer large commercial In carrier a third channels. data by saw decline and our driven Now data to revenue, commercial -- we

We are compression. price some commercial also experiencing

revenue services. data believe we commercial and temporary decline opportunities growing the in services we data is believe However, continue we to have

in January, commercial, price. XX% within we competitive [indiscernible] our small X%, capacity an Fidium offer Cloud will revenue SD-WAN, revenues grew a a to fact, our third in rate driven tower to including simple, year. the broadband negotiations leverage online fiber digital Carrier largely in service small with a competitive expected in the transport We're In highly and highly over over at for offering areas network over of channel launch and management. easy business by a have combined tower app network businesses plans the data awesome by sales the strategic and delay Fidium adjustments. which offset network year increased market ProConnect business, customer excited targeting and to fiber quarter upgrades Secure in X-gig

commitment I'd correlates grow opportunity our to a to customer and to highlight transport and passings margins, fiber also fiber in by buildings provide ensure both and within New ESG which services. the increased priorities. like increased unique data quarter us commercial greater carrier X.X% We leverage lit ability routes our experience. the third to the same for upsell to to our our best sustainability higher to opportunities

never fiber As our role provider, has broadband been within our communities important. a leading more

and people reliable we in values neighbors services good most deliver community inspire the all be us and connect experience great Our to that through a to do. customer to

we work financial will to continues on as now with I and more the insight help who ESG to results. provide will areas Steve? over third turn and all call us our business thrive. Our our Steve, quarter communities guides of conduct

Thanks, good Bob, everyone. to and morning

sale used five fiber will start limited XX the major which which the to interest gross The me of to quarter, our plan. in partnerships million the support was the on expansion broadband sale cash in our closing event generated Let $XXX be and proceeds, Verizon. wireless with September growth

based ‘XX. share than our gain approximately capital frequency these QX lower on of to be XG fully be prorated quarter. also Verizon's representing be for what $XX our reason on couple by a between the million one the million shield expected, distributions second that historical quarter significantly the overbuild EBITDA in the estimate our on in arrears. to $XX are an be distributions accelerated incremental be and We million. investments expect than performance lower ownership time C will third for distributions to had run received taxable million, third our We million. we $XX million of Total quarter, was in operating between band and will estimate adjusted partnerships that was We margin quarter the tax paid cash of distributions no primary $X year The wireless will and third the based Verizon a $X the was quarter. rate. We revenue quarter. in million cash provide losses of million federal state be that, currently than overview in XXXX million, the which $XX.X spend will cash expected the lower I'll their now we and quarter QX operating our EBITDA for $XXX.X in There $X.X XX.X% from The estimate our adjusted net taxes full results. $XX was distributions will our wireless distributions

important of to are plan. support level our this transformation that expenses growth to margin, operating EBITDA consider our significant is in making and it we note investments fiber As we

We fiber this take in our fiber by by rate strong evidenced as by fiber encouraged adds. investment the our strong from products results are consumer the revenue offering, indicated early as growth for and business net

margin the long will growth revenue and mid kind high we of term, margin upside and growth, to execution is XX% Looking of significant our we the EBITDA to the expansion plan over levels. return to believe our upon see

reduction quarterly As a an the in million revenue impacts Opportunity approximately this subsidy our annual year by Fund. Digital EBITDA to II under million. reminder, effective January $XX.X CAF $X funding million XXXX transition our Rural $XX annual X of and The

the received last all million by costs EBITDA following the adjusted $X for of property channels, items to rebates voice erosion addition capital and date. million distributions fuel normalization basis. in expenditures the New and and energy to wireless approximately for tax was In $X.X $X.X our subsidy in third cash impacts we Committed the quarter inflationary million as higher $XXX.X million $XXX.X Hampshire million million which year from year. on reset, totaled across a previously quarter year customer approximately lower impacted year $X.X discussed, over

Bob our and fiber pace target plan of mentioned, in our passings in are As we making upgrade excellent meet on XXXX. XXX,XXX fiber progress build to are

to especially discussed, England upgrades markets million in significant we our of are X.X build our cost have we where New have As Northern advantages, XX% targeted.

been leveraging England has cost the footprint, We a have which lower New to Northern pass.

in markets. discussed QX the the still form pressures increased of call, peer cost to range. inflationary $XXX in customers This fiber our close our we We to $XXX labor. to the contract our estimate is proximity we passing in due equipment are to group As be significantly end seeing surcharges in our some average now below and network per

revenue review customer channel. I'll Now by

ago excitement fiber X.X%. in and in consumer compared the product Ohio revenue consumer and broadband Fidium a fiber brand, our down Consumer customer X times based over million, revenue up assets, Normalizing plus around total to XX% over $XX.X year have million channel, $XX.X Consumer were sale the declined year million, a we gig ago. market. revenue up of during XX,XXX X.X% of product consumer the $XXX.X revenue X.X% Turning any connections adds was year up the other Overall, quarter. experience year to $X.X over our for the was or from compared superior added year our fiber enhanced was the year. net on to million, impact the

our consecutive customers The higher was Approximately delivered year up net a gig fiber XX our $XX.XX year quarter, in to we mix of second over fiber services. consumer revenue, speed percentage take the primarily speeds video. is to erosion driven $X.X was deemphasize new associated For Consumer and Video sequentially, over total fiber services. adds. of revenue $X.X quarter, or positive as the of [indiscernible] mix our Consumer to company access speed million on XX% continued customers of year points declined fiber new we of taking up XX% by continue plus broadband year over and due $XX.XX are our X-gig ARPU as higher down XX.X% (ph) subscribers are linear [CCI] voice to revenue the product. lines million, or continue basis.

drive is accelerating making we and $X.X revenue challenges, revenue Data will third We the down by services new year-over-year, a cash free the video margins services utilizing Despite $XXX.X driven transition customers of X.X% customer, products efforts the flow. solutions was that to higher to product trajectory. top quarter, portfolios This $X and million team video over and cost broadband driving million an of and by combined the these are customers Commercial million, reduction was streaming in loss also programming services sales, improving our speed in $XX.X are multi-site large our million X.X%. primarily has sales a some by our in adoption. year-over-year including increase down seen delayed prospects. of advanced decision larger encouraged or

the at new work. SMB fiber Additionally, for products benefit the opportunities including and with market, increased commercial our team market will from expansion Fidium

services we return down in the quarter, distance the lines in WIP data access solutions, primarily million services growth our Voice of Carrier long was from and driven X%. ago. $X revenue. $XX.X migration the expect to declined, up XXXX. customers were data transport essentially in lower revenue by and recent We service year which $XX revenue million, flat million, was to Data a include

tower pressure major the is the to business our renewal due negotiations contract with to on discussed prior providers. calls, As fiber under pricing wireless

benefited timing by contracts. wireless new delayed on revenue QX backhaul Our of our pricing the

new our and new result capacity negotiations, major we wholesale As to carrier business pursue with and customers opportunity of the the the for is our wireless pursuing carriers. ongoing other towers a add team have and upgrades

QX to approximately and the our for we the original contracts. these to in million of contracts, over QX. recognized another some $X year, million. XXXX, ratably be fiber these to of $X have year including million and respect the of the to downs, will expect on spread reductions we the million finalizing timing tower $XX million with revenue $X step Through calls, previous $XX view, churn in full recognize pricing expected today see on primarily or the discussed of effect based we As had to In range

impact For expect to 'XX still in between the million. total Wireless $X XXXX, total now $X the $XX to of X,XXX, XX year-over-year. XX% is be estimated sites We million. be up for run rate tower the to million impact million range under now contract to almost

as revenue $X.X the million, Cost of to $X.X certain to our in announced gig revenue, expected interest stock Note, carriers. Kansas over solutions. preferred tower team costs access with noncash Light regulatory year-to-date offset which Team December. review the is routine in move Ethernet under of the higher is the March expense a XXXX. Selling, increased to upgrades $XX.X tax million It slightly site assets, of approvals. primarily from costs pending City currently outpaced by in a marketing On million perpetual transport was following primarily video a and fuel to backhaul last which $XX.X due path network Net coupled and capabilities improving The Search and XX Telecom. year down to we interest TDM continues year administrative costs, a end due from was of declines declined of special video with $X.X close a on basis, related compared by provide million decrease converted $XX.X of Our leverage sale year to services the for to programming circuit access to our and FCC totaled based customer product expense non-recurrence due the Network expenses utility to million, a revenues $XX.X quarter expansion, result million million. year, our third as in rebates the property of ago, over fiber million, primarily expense. at programming $X clients savings products core general higher carriers to by have EBITDA to decline

quarter closing an we costs. of approximately We $XX asset million recognized the EBITDA value certain associated adjusted increase from and $X.X assets This estimated is in of cash $XXX of proceeds estimate date, the our To increases we million sale During approximately estimated sale million related has the million. In for in gain to on for held non-core quarter, $XX million XXXX. assets. million. impairment noncash and sale totaling with this the gross revenue of $XX XXXX, certain the in charge carrying asset approximately of annual in equipment, we proceeds of announced cash realized divestitures communication $XX generate $XX.X a have towers proceeds third the aggregate and million non-strategic from the to over

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

potential criteria valuations. this Our competition market-level fiber of in evaluating the build review and includes, economics the opportunities,

Moving $X billion environment, of million cost debt, debt quarter. $XXX we notes our approximately rate rate prior of debt our hedge from a that the nominally total overall to heightened fixed. with billion Notwithstanding XX% of senior fixed have loan in our term the and interest $X.X interest coupons. X.X%, is up Recall, against X.XX% is

$XXX Our net at cash revolver million $XXX X.XX our XX is with $XXX hand capacity debt and million. of of times September liquidity leverage was and available million on

the sale. asset Additionally, of which million, slide our a we of XX, of $XXX effect Kansas forma provided the liquidity on includes City over pro view

are to Given fiber on are executing well-positioned our our on is with maturities XXXX, continue XXXX slide coupled liquidity, expansion which outlined strong our Today, until we we plan. reaffirming XX. debt guidance no

call QX February. guidance We will our XXXX provide in on

the divestitures As we've to negotiations. contract impact outlined the we the of tower consider XXXX, in fiber

to We positive year. revenue growth on expect overall now will in the to Gig+ turn the we Fibre of to contribute product consumer the revenues our of growth an in this we the offering. believe Bob. second heels expect in our call the point sequential momentum inflection broadband and back However, of over see half I'll

reiterate is transformation Thank fiber In closing, I'll Consolidated's you, well Steve. underway.

we're the to bigger our plan, the are connections. positive well subscribers and growth fiber fiber excited improved all We're on liquidity. strategy structure disciplined across customer our experience and launch channels, enhancing and of We're achieved record We focused having and next significantly year. have network our expansion another a simplified consumer executing broadband ensuring early quarter our we to support capital plan. on net We've

of long-term We on the are executing now to we for plan, will communities, at to take continue fiber our creating Fidium well questions our this shareholders. broadband positioned benefits more value time. bringing Operator, fantastic

the Instructions] with And ahead. line [Operator Williams Cowen. Please your from first Greg go is question of

Great. Thanks taking my for questions.

Just bit year, assume I it's sounds the increasing up, the talk build, going to that to in resin parse you're components $XXX. this I'm cost? you out. What about cost are of wondering rising you to a labor. $XXX earlier spoke the can like it cost wanted little mostly know, I that et if it cetera. to just of about the Bob,

return think, What in about factored et [Technical that back the think question Thanks. you low is I a Second buying to your as in to is I'm think markets it's thinking mid-teens, your And value, debt do into the for we IRR your or bonds returns the costs? little today if trading, with what mid-teens just philosophical. about calculus. public I'm is wondering more shareholder cetera? Difficulty] are in builds fiber the where rising is, these if on your and low it's

is pass. And our to position includes take going competitors to to that pass aerial remind Greg. I a competitive to you the of And others have would the have our proximity plan. cost I first to network, that even of Thanks, the fiber say, all, percent very us And deep I versus of in want low-cost first. and we industry,

rock primarily labor boring in especially different some labor some for diamond blades the is from see getting in cost, So yes, and areas. equipment, while and we subcontractors the increase a some of it frictional

of it comparatively I impact. so, we don't significant, this don't our Steve. the it's had Go us some bump. significant whole of And scheme think think stage ahead, returns it's And wallets speaking. gives -- at

about. part of second kind was of your talking the question, the take IRRs, I'll on Bob Greg. Hey, Yeah.

our plan, were of the I as fiber the again economics for rolled -- That's your your with advantage really passings to unit -- we -- IRR, is which high-teen, of else the IRR capital low free up we the years today the to holdings for cash as to investing out where for still build cost build over plan going strong with buying that's of compared bonds, know for kind most thinking we're competitive we from -- we're to environment value expecting cash at XX% back one dollar trading are we driving question bonds modestly, plan buying from at. equity that with But think, time, competing we five we question going to just that we're versus the now, committed discount. thing. we're anybody fully or shareholder where then And and have on we trading question, again, the might that versus your potentially back believe think for. your maybe committed the every different so long-term the in on that's a a have value but build flows get that, where be to about into flow significant we bonds opportunity

Thank Got it. Makes sense. you.

Next question.

is Please go line ahead. Michael next question Citi. with Your of Rollins the from

Hi, Mike. Good morning.

morning. Hi, good

questions. two Just

competitive secondly, just a were subscriptions? was your that copper mentioned is First, of at looking -- climate Are to the as your Or little kind migration fiber I'm sorry. losses the service? just you change of some there for a curious then seeing the I And function of in higher. DSL KPIs, you some

ahead. go No,

footprint the you potential the say to Thanks. size in for question, during was the way the your could going if second was commentary. just per prepared optimize I I further to some curious, comments

Yeah.

it's and With take may question, them things. on lose lot and customer then converting me our and and the putting fiber two on to we studying second. regards going do a DSL DSL [indiscernible] DSL losses, forward as ask We the first I that. base more upgrades attention them we're through focus the Let really transitioning

more And future we more out years. build know aggressive letting as map in so, that we're our for schedule them concretely getting

areas season that's we we're think aggressively coming the in takes to we why some DSL still is so, on near-term working second a areas that of we're speed, little future. more question, in have is see it's to and more divestitures. in lower third have XXX think higher [meg] But -- that It's muted, a (ph). nature But and And looking of a risk And and good that impact going them competitive the because where the where those somewhat we're going that more greater typically at new move Is passed footprint at forward. while churn speed where we right? the you're know referring I that of let tick. season, get bit more the to a the quarter

Yes.

or the some I the total of potential what thinking there's You that the to mentioned and curious are just potential, it's the way in just potential you earlier looks about to size or optimization continuing the like? discussion in consider dollar was footprint EBITDA that if a way of opportunity size whether that,

it. got Yeah,

that, over the opportunity. a $XXX we time so, parties interest announce point we we're a still with always is and have think, there that we in And to would some consider active said in nothing as Having conversations as million roughly, assets where past, said divestiture the we of could that it. yet

all And that of are on we different that have, we stages bites we opportunities so, the programs we're state that have. going diversity that the we apple the to at things to work optimize a partnership and of we've continue evolution. public-private number announced the Having with the at those have haven't regional through ones

we would others. faster wish move Somebody than

announce meantime, the this think talked questions. folks nothing but or we've and So, that got I in for we've Thanks interest over to to upside time. and to time value increase have explore opportunities, add their at the

Thanks.

Thanks.

question next Jason Kim the line go ahead. Sachs. Please from Your Goldman of with is

the still very your peak proceeds. but should it's A quarter you next year's about questions how your given complete company ahead, And like? early, any Thank of looking net we how CapEx much. know ratio asset me. may And look I think as you this investments? for sale leverage thoughts on Great. the the couple fiber leverage from net declined

Hey, Jason, this Steve. is

So thanks the question. for

I we is still mean, I range. think that that's think the think I giving pace and what of guidance you really not the today. we're kind -- million in current CapEx, as the the under probably to plus on. We're said, be going $XXX focused But consideration of are we're on build you still

the side -- I'll we today obviously Verizon in will of the size your probably positive impact with So, on of the that point your the from point, but combine leverage benefit bank $XXX did based rate think year have -- the I this sale, we and now. that I ramp negative will of -- to we for today But your a the to kind kind the burn the this proceeds with CapEx question, asset the on 'XX. million right kind had really a for lag up, sales mean, cash are, versus penetration of envelope on we in

going opportunity approaching help it we times subject faster at to as would differently, build year, of ’XX. of how bill the business, the I to cost about or in sale for subsidies still going Bob can been -- kind And to for we're kind if EBITDA into thinking additional costs how ’XX, we maybe where on mentioned So, perform hadn't additional like of Verizon said forward. grants think we like for for offset grow the mentioned kind X.X X we leverage the that be times had the probably early as peak

broadband this on Consolidated’s Great, funding, what which for then the you of to that's share do funding? the a cost stimulus And the be expect extent to per-home win you to basis helpful. as

because disclose our is, conservatively model, to from specific can Yeah. can but is we offset it, I I But passing look it high what withstand now. side at going per varies cost to -- what I'm what the project average our on when a per project. pass, not cost on higher than the it say

$XXX -- we some that in we're the public-private in already our in is, capital -- to ARPA NKA what grants won so supplement with, stay And and to the do really. some partnership, range going be state we've $XXX cases been per use the passing so build $XXX brands cost to project that involved

rural to why our if so projects. And lower we It at projects at that's we do usually correctly. extends can a further time it build the our and opportunity cost we the areas into look

And we're we're one months NTIA winter months. a unpredictable, so, longer unfolds seven, construction see now processing into administrative that's delayed and it's us you'll as where do up eight of get and pushed we bit because process in if ends what this that

we optimize perfect we're feel So to keep do markets we well maximize to to get really and access really going are a and in cash positioned that, dollar opportunities. we we can flexibility can those so to across our every position

Thanks much. Understood. very

the Instructions]Your next [Operator from go line Stephen Aetna. of is question Sikora with Please ahead.

Stephen. Hi,

Hey, guys. a here. of couple Got questions

you at 'XX, XQ and question. So the a those 'XX win more seeing in X impact to XXX,XXX general you'll fixed those a then cable the looks DSL or from QX Are like XXX,XXX back And homepage any to guys trying it's in presentation, guidance that specific fiber aggressive it and original at beat from getting copper you XXXX. the hurting subs, for follow-up look XXXX second, billion one, competition, XXX,XXX first XXXX, XXXX customers? XXX,XXX just passings if on and all either economic in presentation, In XXXX. wireless the I weakness outlined

bills So original kind pace you is so, your plans? go indication an decision? current that your of what if And along versus into that Thanks. variables build that with might accelerate

there. a That's of packed Stephen. Thanks, bit lot in

three and places are competitive would coming on more then the look piece. and some that let offer very DSL from and we maybe a priority wireless. with watch at front, with the largest. me as that really major closely, it's some that So a is start where driving We from economic be in two not cases, One the moves and see lot DSL losses of we limited phase, seeing we which fixed build. We're cable replacement the

because in tougher I especially an it's work but cable then side, And a factor. resilient it's the can't factor. us, in is also think be everyone base but we would live have, the yet in distributed connectivity, across product that -- rough very where we in. of so, headwinds I believe I And economic lot do distributed DSL we economic see that for the rural, economic from a some broadband probably the right it's not I more more needs say times larger on a probably still think promos that's that being perspective, competition, necessarily aggressive more there'll environment

I I'd So had prioritize, that in pressure to if from cable say, there is space.

Regarding I the intentional over next the XXX,XXX in saying few think flexibility. this year we've we're and million the years, got X

to from RFP I passing extends cost we're these to competitive earlier, reach it because perspective, positioned when a public-private those help every prioritize, best we're so, dollar a just partnerships our use, it's going per us to getting and And win possible, mentioned process. as

times so, the order funded in when in passings those the times, drive, time. that of for optimize at X And the place one and of complete can being X for build are the crews to example, number you're to market timing

and the get to with penetrate ramp best so, funds liquidity more And build maximize strategy, passings. some being in gives capital to as can continue our can in position return, we we ramp not pace market acquisition the also supplementary down, tougher in do we where sales way faster think economy the a -- build slowing to best that in the we access us our rural only think we're but we the for flexibility to it

Great, thank you.

from Bank ahead. question is next Your of Goshko line Ana with the Please America. go of

Ana. Hi, morning. Good

you side. I Hi, ask the on much. very commercial thanks wanted to

or I mentioned based competitive factors on of think were large Was part delayed on? based making decision you you the some customer what a churn. Is that And economy that also that. if just the the referenced you wondered the And that I loss? circumstances other so, what's customers. about of that? that drove So do think

part that take me really an customer it. that. the was were for The supplier churn let a the And situation we consortium, large underlying unique on No. first and daylight, customer's that of based occurred

details and And thought I that we was get renewals we But so, to a go for on. things going confidentiality other reasons, into it contract say won't for it wasn't possible.

unique So situation. it's a really

align also and decision-making, It market that's delayed believe, we with a that have the On season. grow, cautiousness more would to may think something builds general it associated with and make with interest higher capital that rates the and folks factor a that for to is recession leverage say a support. seeing I coming have, that we I that may election do we're of network grooming belief from equipment use purchases

have see will It's things that large the able little to churned the typically So to we growth so opportunity. we're both solid. this pipeline and our customer been pushed remains fiber gotten data. that with I We've going cautious, leader but more offset just being and be fair yet share optimistic space in and a our a deployed, to more expect have more than we're acquire commercial in ability and we've more that

EBITDA So revenue the results? the material customers, or it what to that is is of overall impact

It's not material to the overall results.

I On based of secondly, know cost, trending? adding then there's variable you a has connect, the success the pass. bit And quite incur to discussion cost that been How on subs. Okay. fiber cost that to you're cost a when

approaches positive our we'll that. paid that the drop it down out which or to the scores. little that maybe We WiFi it's been been impact customer. pedestal process been to WiFi substantially. able reduce to We've a and the X has connection Yes, might temporary. some pole close actually to experience, But had and the to we've not think improve charges between I on flat, experimenting mesh get and bit different We've a with improve our expedite work -- and if NPS able cost been to on to continue test trending be

So long changing to as to as get track volume. that to with to be going countered I forward provide that see well may think than as we're But increases. other refinement to our but by inflationary it don't oscillate continue continue technology the in process, inflation costs. see materially technology industry more labor going for reasons, term I with we And cost is actually cheaper some going maybe

Okay.

is So reminder, what just per gross that as add a now?

It's roughly XXX.

Got it.

Thank much. Well, great. you Okay. very

Thank you, Ana.

Next question operator?

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

in updating fiber you to vision our and joining today. appreciate the Thanks, Dennis. broadband support We next a focused for our to all evolution you call. and forward call day. term company. And becoming our long a great on thank for tuning your Have you Look

This concludes call. today's conference

may disconnect. You now