Uniti (UNIT) 24 Feb 232022 Q4 Earnings call transcript

Welcome to Uniti Group's Fourth Quarter 2022 Conference Call. My name is Jonathan and I will be your operator for today. A webcast of this call will be available on the company's website, www.uniti.com, beginning today, and will remain available for 14 days. At this time, all participants are in a listen-only mode. Participants on the call will have the opportunity to ask questions following the company’s prepared comments.

to actual that from results in statements. like forward-looking remarks those would these and statements could company remind today's you include projected The differ materially discussed cause SEC. to The with actual that company's filings could differ factors are in the the results this call. reference slides remarks and its posted those to will to encouraged are refer morning materials company's on website, The you during this

those prepared Accounting also be this certain current financial financial of not call Principles. dated were X-K Accepted Generally will GAAP include on financial report the in during found to with Discussions that accordance comparable company's measures most non-GAAP Reconciliation measures today. Form in directly the can measures

the would Gunderman. ahead, Uniti over Mr. to Executive Please I turn Group's go like now call Officer, to Chief Kenny Gunderman.

morning, I'm for XXXX Thank how pleased three, our everyone, on slide briefly you XXXX. wanted in we key throughout on accomplishments disciplined and for Starting very thank I priorities growth joining. to plan cover our XXXX. with executed our you. and Good

The is Uniti's being before in XXX pandemic. to just and at peaked grew fueled accelerate XX XXXX around gigs and growth IP backbone fiber. to core the by approximately continues of broadband gigs

our XX six week, peaked last of from gigs, years a backbone As XXX times ago. at IP just increase

capacity We networks, some where of our both especially just acceleration of to expect transport to four this -- XX-gig. beginning from wireless carriers, X-gig our of to IP given consumers out and are continue upgrade across customer our that towers three largest

demand we As we our have in many industry. do a not of before, times said lack

but were and between and new of we XXXX, bookings anchor and and is bookings installs However, had balanced key. In the profitable and non-wholesale. installs, gross importantly, levels consolidated as wholesale lease-up record demand

churn mean day infrastructure. is X.X%, Uniti of monthly the of with our Along industry-leading shared time outstanding to fiber economics and demonstrating on our installs deliver sub-XXX

Uniti continue target Leasing were prior growth, an year, revenue from XX% dark was and capital mid-single-digit at the recurring basis, deliver XX%, top prior up the year. up while to in we fiber and XXXX and enterprise line from EBITDA lease-up over XX% and On declining Wholesale intensity. adjusted respectively, increasing overall

growth XXXX recently positive own increasingly successful our an pushed year steady while flow meaningful liquidity two important debt future to to financings a cash control We we funded out destiny. an potential from was also positioning with providing its plan completed Combined runway our fully to now performance, organic that trajectory. that is our refinancings. with Uniti also most free growth virtually respect maturities, additional have aside and

turn margin more many XXXX. as As revenue to lease priorities the our fiber XXXX, and on we to to for remain up. recurring anchor driving focused and light selectively fiber We'll country. in still more long-haul both on with high with our span metro lease-up same path they on economics our through clear the routes We're were a

We'll any closely position monitor we may we're disruptions to and and challenges, good chain that occur. labor and conditions a in potential adapt confident to supply and remain withstand macroeconomic

approach and while delivering disciplined not the meantime, in strong In As we're our given immediate it the do and in the future environment. on operating rate a organic value continue interest to any we'll relates growth expect M&A, macroeconomic take stakeholders. results, for focused to transactions current creating

Turning X. Slide to

in resulted strategy driving Uniti and the operator anchor well while customers, has buying to additional customers to focus in yields. to on as continues and independent cash mission-critical yields anchor turn, infrastructure leasing strategy the as second in largest that becoming This building well fiber Our fiber infrastructure cumulative country. above lease-up

of with highlight a other were company dozens churn This growth, so some integration like other built to often facilities-based profitability. on from that of sizable to challenges fiber percentage elevated operators, I'd come acquisitions years through and Uniti distinguishes what leads revenue. asked often Many legacy of challenges companies few. and We're fiber

its now companies only operating three history, which meaningful services. are acquired fully has over integrated Uniti Conversely, in no and legacy brought

through miles two we've anchor over acquisitions, unused was that integration other XXX,XXX acquired one However, amounts differently, our fiber substantial or acquired lease-up. route no with sale legacy asset come customers. of for and and XX% with challenges fiber services, additional no leaseback network Said of

more demonstrates cumulative drive helping X economics. cash network driving As flow is XX%, Slide increase fiber yields the We're these of projects. anchor from shared yields this a infrastructure substantially than our threefold today on underutilized

in less the contracts, X second comes longer-term overhead. nature, The churn demonstrates Slide characteristic. with distinguishing wholesale and revenue required lower which is our of majority

our susceptible less As business conditions. macroeconomic are a result, to and underlying performance

majority our vast fiber-to-the-home core and and data cases. use network. wireless domestic large use on fiber purchasing intercity that business diversified carriers. pops, our into traffic These connect pipes ramps and which driving providers, centers, the towers, are wholesale further is cells, international these numerous from across that are are highlights carriers The Uniti cases hyperscalers all of small These to customers large of

many Uniti national and estimate Turning to we only US a national with especially of fiber the with being in is independent years an with national meaningful one to today given them. billions of five are take matters dollars especially in a Slide fiber, networks truly network wholesale new ours. advantage two business network. owned competitive networks heavy Scale We there build Having providers owned that like in X. Uniti, a national for

several $X today X% grow Thus, a expected XX% our expected with are and wholesale unique Uniti in minimal which approximately fiber over services, or annual and services billion component and wavelength our $X.X dark over dark billion to deploy with America growth is about growing market next present represent the ability several next grow strategy to North years. opportunity an annual wave a Today, is competition. to of years. revenue opportunity the annually A fiber opportunity

and lease-up more on economics. anchor We're on and growing provide to wave demand, and same selectively routes the services maintaining long-haul discipline lighting while more capitalize

long-haul X,XXX deal route value contract of data provider, within cities contracts over Southeastern largest and connectivity million, XX in premier history. dark approximately to located making the one signed customer $XX a contract was in Uniti's miles example, we of long-term with For recently centers this US. global total Central it fiber The a large the Internet offering

expect routes next. be year delivered these We throughout this and to

heavy escalators economics earlier, As wholesale very that long-term our model attractive CapEx are contracts margin, minimal virtually I churn produces revenue, have no mentioned with managed requirements. that high routinely passively and

of Uniti’s, is third balanced Slide approach bookings. X to which demonstrates distinguishing characteristic our

business there will are be especially with drive legacy wholesale disciplined focus, if no enterprise strategy low and profitability our the churn, Although CapEx services. and enhanced control can always minimal

in for intensive. new lease effective expand new of nature the While manner greenfield up are a cost bookings drive opportunities, bookings growth leased continue and network substantially be with anchor capital in customers and less up the majority to

X, fourth enterprise that Turning disciplined our our to nature. is distinguishing is highly strategy and regional characteristic slide in

XX southeast. enterprise As you in in only we're approximately the metros, can concentrated the offering services see from map,

Our product services dense is voice set as or on and TDM. our legacy controlled sales have are simple. no owned All legacy and network such metro we fiber

of operational including and purchases, the majority selling The services expenses businesses fiber field employees employees within products fiber of majority and are and on-net are because our largely we sales, off-net XX% we're area, therefore, maintenance our construction, lease on sales. certain are plus drive up enterprise techs, concentrated to cash geographic and site able efficiency, maximize yields others a in acquisition, and

industry enhanced monthly churn substantially local this our at is our region leading enterprise in and is X.X%. addition, In around brand

enterprise from bookings our up while was As MRR quarter, XX% was consistent a during strong gross result revenue prior year. the of activity, recurring install XX% up the

terrific small which in and Equally represents XXX metro even as dark capital and for mentioned potential backhaul, growth cells. fiber we exciting markets about enterprise, and before, nationwide, own margin efficient we wireless

that, turn With the call I'll over to Paul. now

Thank our performance, by XXXX everyone. I'd and outlook. you, overview Kenny. of to Good our begin quarter by morning, fourth year full an like XXXX followed reviewing

XXXX As from Uniti Kenny for was an highlighted, performance perspective. a year outstanding

as levels growth Our we throughout have service bookings our the expect continue and strong. high product these higher offerings been demand remain and for and to installs XXXX never

also recently our that added weather near-term additional ability five fortifying we'll two are a transactions pushed maturities just any by and enhancing cover years financial debt our detail liquidity, sheet We to more refinancing balance uncertainty and market out bit. significant in that effectively completed in our

we're outlook XXXX the seeing these our and business Our continued strength today. in reflects trends fiber

sheet with on balance end structure. will capital additional commentary I our current Finally, and

and to reported comments with to $X.XX. $XXX quarter. per common shareholders the adjusted Please $XXX consolidated consolidated AFFO EBITDA diluted of million, slide I'll start We revenues of on of AFFO and attributed our fourth million of XX, turn million share common $XXX

a income attributable common share, was million segment Net impairment interest rate driven environment. to charge goodwill macro the in approximately Uniti an the million or was $XX.X per Fiber quarter $XX related increase our $X.XX includes to which that by shareholders diluted for

$XXX of $XXX Uniti and Leasing, reported revenues EBITDA At of million we million. segment adjusted

related the that agreement. non-cash Excluding in from assets an contracts million fiber we line dark to straight associated other one-time settlement quarter XXXX with revenue adjustment IRU as Windstream fourth the the part of and of acquired $X

Revenue and Leasing fourth adjusted quarter. Accordingly, of year respectively the achieved period. EBITDA X%, Uniti an for in prior quarter of adjusted XX% XXXX EBITDA the compared grew the margin to

XX. slide to Turning

provide capital Uniti. to program investment Our continues growth for results positive

fiber has our capital invest fiber-to-the-home. fiber, long-term Over network. fiber its commercial Uniti largely to capital and the of valuable tenant invested own continues over value-accretive past last-mile on including six billion tenant improvements and in years, our $X focused highly parks in

be date XXXX. being the half fiber. in legacy legacy these X,XXX the Based constructed of all, network with by of that have fiber of made expect the GCI newly we copper to that not XX% on the will utilize and will program, our route Windstream expectation fiber most, of resulted investments Collectively, miles with investments network and copper overbuilt if overbuilt nearly

Leasing of X,XXX growth investments approximately network several markets. investments majority to Uniti's relating the with across During Windstream the route deployed the added Uniti investment program. $XX towards GCI the different These GCI own fourth of initiatives, quarter, miles to fiber million capital

the investments. to Uniti at master around will one-year to annual X% the They route As such with strand $XXX an making under and approximately to in XXX,XXX program XXX% of miles Uniti a lease X.X% fiber of be Windstream, GCI subject nearly of of added network. are to-date These adding initial anniversary and XX, investments has result miles the escalator at our yield December margin. capital million invested XX,XXX

our small have the cell network. the across will during revenues These X,XXX over million The dark cell full our rent Fiber, Southeast fiber At back date ultimately we of $X.X our adding of and haul overall of investments million dark of $XX XXXX, backhaul, annualized and wireless carriers installed made annualized value – small Uniti turned annualized to lit year we approximately revenue. for increase approximately sites limp approximately installs $XX fourth and XXX the add forefront fiber we quarter. generate sites, cash over for million

This years. and backhaul, an have expect few we sites fiber around million lit wireless in annualized to incremental represents remaining revenues. small dark backlog the X,XXX of deploy $XX We over that backlog cell our currently next

Uniti were expectations we of relating of revenues lower-than-expected was lower spread Fiber, achieving of and sites. $XX equipment of million due to fourth XX%. million legacy non-recurring adjusted the above while costs timing due At installs, reported slightly of than sales Revenues the expected margins early during $XX the to to and quarter, EBITDA EBITDA termination adjusted

success-based timing quarter the to Uniti higher purchases Fiber and million double was due to net fourth than CapEx the in relating $XX of equipment was projects. originally anticipated

the meet Given the we of we frames and equipment supply purchase would times, that time during expedited to lengthy customers. challenges the ensure delivery quarter of continued chain affecting delivery our industry certain the the

CapEx $X the of incurred during maintenance million also quarter. We

our now XXXX Please turn guidance. XX, to cover slide I'll and

from impact XXXX notes recent estimated Our includes and outlook offerings convertible the redemptions. our related unsecured

Our and transaction-related here future capital specifically in. and market other costs mentioned excludes future not outlook transactions, acquisitions,

forward-looking Actual results could these differ statements. materially from

for Our expect midpoint, following the revenues EBITDA margins adjusted adjusted for XX%. includes segment; million year EBITDA outlook million we each with full of Leasing, and at the beginning $XXX to approximately Uniti be and respectively $XXX representing XXXX

the cash with and Revenue EBITDA the investments, relating $XX million GCI GCI to and million investments. include the master straight-line rent and Windstream of each adjusted $XX with rent leases associated associated

midpoint at which investments. We relates $XXX our guidance, expect to to the of estimated of million CapEx GCI success-based $XXX of deploy Windstream million to

to revenue to revenue X% Fiber at Uniti is to million the $XXX XX, midpoint expected slide Turning recurring expect the prior with core of contribute we year. from grow

success and further executing X% that Uniti this revenue XX leverages demonstrates our grow recurring continued as to we our our and Slide point expect existing strong strategy between dense X% growth Southeast run lease-up emphasizes our XXXX. fiber Fiber This in and on footprint. rate monthly

of XXXX. levels the to previously relates and saw it will XXXX revenue As DISH, strong impact as we begin be bookings to realized throughout stated, during

slower they at Although pace than a healthy XXXX, we bookings DISH come in do XXXX. expect from in we continued expect will

slightly be offset in XXXX, fees and to partially compared by to from revenue prior when equipment higher non-recurring ETL Core expected down lower is the install revenue. year to due XXXX

for due was to peak may recall, Sprint-related ETL year XXXX churn. As a you fees

compared fees XXXX be $XX expect We to last in ETL $XX million million to approximately year.

expect expected be from to For be the Adjusted based full lower at is year install revenue adjusted is while $XXX XXXX, million at Uniti adjusted the EBITDA to cost. due recurring equipment we Fiber on and be to year, midpoint. prior EBITDA higher expected up non-recurring X% to core EBITDA

Overall, adjusted Fiber Uniti we Fiber at of a be XX% from this the million midpoint XXXX. to XX% success-based CapEx levels the for in expect expected guidance, decrease at margins full approximately to $XXX EBITDA year be year Uniti for is Net XXXX. our

Turning to slide XX.

in of a year will full and diluted refinancing. our AFFO per AFFO range and note we $X.XX between impacted shares secured interest share. be to relating recent convertible incremental by midpoint XXXX, with diluted For $X.XX XXXX diluted and per share common $X.XX to expect

impact $X.XX the would AFFO have diluted transactions, share. those per Excluding XXXX of been

On expect billion to a be consolidated $X.X midpoint. adjusted the be basis, million EBITDA and at revenues $XXX we to

Our due early this repayment X.XXX% expense redemption million $XX a write-off XXXX. the full our of in $XX notes to the of interest which of approximately $XXX guidance costs senior million, the financing premium consolidated year and first includes million of for [ph] of deferred quarter year related contemplates

Corporate excluding approximately expense. amounts business to segments, $XX stock-based million including million, $X our of expected to SG&A, be compensation allocated is

to outstanding accounting incremental shares million XXX method. year new notes the to expect relating diluted compared in We the shares for million weighted using shares full year to our the the common XXXX, diluted around of XXX average be full reflecting the the shares impact if-converted XXXX convertible of

of for included presentation. appendix are guidance reminder, a our ranges components As to the key outlook in our

contribution results a outlook, of our XXXX and have core slide On to from year which our financing reconciliation our activities. summarizes the we impact XXXX tabular full organic XX, recent operations provided the from

our to now capital Turning structure.

we convertible notes of quarter, due exchangeable issued million to the the at conversion per due date During discount. price initial notes of the of XXXX, December fourth to The approximately senior the of $X.XX X% $XXX X.X% of $XXX.X price repurchase approximately XXXX million our share, company stock the a convertible pricing. of premium of closing common XX% notes representing a the is on

transactions that entered approximately In notes into the negotiated connection share. with capped conversion institutions increased certain per with Uniti financial privately convertible to $XX.XX call the offering, effectively price

offering issuance On of due February facility. all under and the $X.X outstanding of notes redeem the be XX, we XXXX. senior used The of X.XXX% closed secured billion borrowings repay revolving the February XX.X% on company's notes senior due will proceeds credit from outstanding secured to the XXXX

undrawn of and cash At combined approximately $XXX had year-end, revolver unrestricted cash capacity. million we equivalent and

our have borrowings As repaid of we our under of today, essentially our and million all revolver capacity have almost undrawn under of $XXX facility.

dividend Board on Our net quarter times leverage declared February April based of our at On a XX, share to year-end XX, payable stockholders ratio X.XX record XX. debt March EBITDA. $X.XX of adjusted on annualized last at stood to per

now back to I'll that, over the call With Kenny. turn

macroeconomic billion to prioritize Thanks, have approximately the currently current remaining eight of average with an continue under Paul. our investment contract backdrop, in core business. Despite term revenue we of We years. $X

the MLAs. net is Given passively the majority fiber form business, managed dark nature revenue wholesale-heavy this triple or of of our in of

over is revenue de minimis, associated term. in the flow-rich this a mid a with long costs As the result, results very cash operating business to which

will illustrates, next over to from cash the As a valuable several this years. more the sizable and fiber slide XX investment flow lead business

free ending positive to XXXX, in within and the flow approximate over expect $X our if level maintain annual cash -- of and XXXX investment. of five current dividend period billion within also be capital cumulative flow five-year years we free by the We cash generate

the This between fiber trajectory leads to resulting X of leverage XXXX. to X substantial deleveraging, doubling times net in roughly business our and by size

ability for business fully-funded to plan, create runway near-term Uniti, the significant value each growth maturities no debt for Our day. long shareholders afford and our profitable

we're questions. take With to that, operator, ready now

the One [Operator question. first moment Bora for question from our first Lee Instructions] RBC. Certainly. line comes And our of from

question, Your please.

question. the call the taking you and Thank for

are to OpEx? some So macro CapEx you in demand shift from any changes current to given the with stopping players seeing wholesale environment,

Bora, Hey, not really.

large we're domestic international wholesale the I carriers, to selling the think lot and carriers. big -- hyperscalers, of wireless so a

so going spending are prioritizing customer And they're in and whether the between some specific. capital differential all OpEx specific patterns up spending cases, is more market very And it's frankly, the versus or route specific.

being of observations characterize the environment. wouldn't any So -- macro of as -- to any those but I related that

I'll also that customers. terms our we're our add flexible well, that in with to as Bora,

capital in -- upfront not expenditures large IRUs come that customers. for addition with So to

and leasing into prefers that monthly adding OpEx expense in services capital lit right also do term. who also over we somebody near adding We offer fit the

I and also capital the So have to and that their we wholesale fit provide think services with our the customers way contracts flexible ability be demands.

a follow-up, we've additional seeing more about longer you terms or a -- make decisions? from analysis to taking have communications in the do require they buy been some in to parties infrastructure actually Right. cost customers more takes And you decision, either then space heard as how make customers Have of it others talk long some what internally. approvals

we a anecdotally, certainly little heard around We've I enterprise of business bit. that hear of And Yes. Bora. the think that

but we it big to -- haven't really comes our wholesale when think seen I customers, that.

big a our to there's push carriers to upgrade -- the that think I among wireless XX-gig.

particularly And sooner approach. that capital-intensive seen particular among at carrier a rather one get real to than a that's done later. least in we've So push

for to the no their capacity of lot intercity hyperscalers need particularly appears intercity capacity. ceiling by a on acquired being There's and be capacity, just

issues wouldn't decision-making we attribute from point. planning I purchasing, sort more them don't being vantage of to any think that our decisions around network typical -- environment macro just don't is we So and made

that going see little Thank over you slide, top one provide target time? how Thank in on just Okay. that side, top, additional maybe revenue And revenue see some and for if could into shifting you you three two for mix or I that you. you long-term the bit. Can one. last that squeeze the -- how a color drivers

anchor a it, ask data out I'll see long Paul times, just too. continuing, -- on we're the people we just that comment were confident many because putting and have then on we organic profitable would to we of business Yeah, And there, said runway helpful the slide growth. trajectory for to just growth comment and we've to thought give it some be it, we But around. it

don't And size is but we within our remarks the infrastructure just ultimately operators, better growth, And mentioned legacy providers down carriers, number heighten that of that. a of really, within to any services we legacy -- it, business lot their highlight we or fiber services. doubling I churn, of and of the times or our sites. absolutely weigh have prepared lot the have our in a lot it And a have don't and of

our look Some when to at, XX% or we question businesses, e-rate to businesses lid, government, those as are And [ph], it's some a so digits; are And of we our at whether all said what fiber-to-the-tower, fiber prepared growing just extent? it's at remarks mid enterprise, small different growing. growing XX%. cells, in single dark are at

zip and be of focus. will dependent, mix longer top-line a code, we growth and will mid-single-digit, weighted continue blended going continue some businesses business we started be when in towards to starts several But bit generally the heavily -- years expect, level that's we to is will again, and again, be business to to what little but some that think our reliant, think the the be more, we out out, to look term, wholesale, less

the domestic ability we're the the we driving the the optimal where carriers, that different use returns It and cases. stay economics are think international the hyperscalers, agnostic and where to across carriers. us wireless fiber diversified That's from gives good all that's

connectivity, mobile whether wireless So data or some doesn't us. matter it's broadband version to intercity or XG fixed it center or of other fiber-to-the-home capacity, or

a if stay mix nice trends we there those to of government are in in economics and on XX%, will of optimal plan to at. we and wholesale growth enterprise business, All are not which be what the on business. But we're wholesale, to is I especially enterprise that kind think, there tethered do, driving in to looking drive lease-up rest roughly XX% and help more focus if and of, our the

to comments, I I those agree Yeah, with to have add would those. Kenny. lot don't a

you think I those well. said

macro expect our a We particularly for demand growth. think environment, to of And markets. bandwidth the I the markets, in going our see forward. continued a also drive that we're taker metro we continuing share lot

So to to share overall to we addition our a growth as just well. help in drive be taker demand in that expect growth,

mix, just good the customer wholesale, in be it contribution -- continue of our add we come but and from and metro So was expect Kenny tilted services. all as enterprise to to to from a from -- segments towards

Thank you both.

Instructions] Pandey And next of from you. Bank [Operator question comes line from the Thank Shipra America. our of

please. question, Your

guys. Hey,

dialed-in one I the how Kenny, for David I you, kind it. are comments Barden, time Shipra. and It's future for where think that in return as guess two Sorry, harbor the your you about as and are I of business about Kenny, one describe profile kind immediate being I could, organic got you've I rates M&A when if your guess, of the for questions, So you? Paul. and

those investing of of here it you're it But to idea REIT at $X that better the paying out of that being or Arguably, current XX of of dividends, you that what dividends a and dividend the why those any Can uses billion like the this year on with we're time. XXXX, mid you that today. will if is returns after $X speed more business. about because skim and managed seems a cash still and dollars, be to over of the would a page, not confined not look use dollars those slide de-levering seeing kind billion by good flow a be you've dividend seems like net elaborate REIT course being than than when are free

a on to doing could keep of bit idea elaborate this is a kind it. you little why good So if

make And some I that guys of their the you sure might just to guess, $XXX with year of net new behalf you flow And understood. wanted I how the that, you then, Thank the about free financing, we about the payments net the Paul, the again of slide. comments think settlement, I a to kind for had you're XXXX the dividends, million CapEx for dividend. be that GCI of Windstream that positive cash on of end making of after net by made

And here XXXX so is a really concentration correct? XXXX, we're and at cash of what Appreciate looking it. flows, am Thank accumulating about of between that kind thinking I you.

being the that, think particularly I taxes. of and Hey, the that yeah, if obviously, we're that business, free flow indicated on of nature cash if David, flow lot question upshot REIT, a about is become slide, a taxes, we're then once by as a positive, paying not you cash believe REIT the we our heavy of

shielding a And so that is you're benefits the there being one of know, is of – REIT taxes. as you

especially we of that will has the true us years. generating always flow outer more as continue been in forward, be and so start And to going cash

So there's that benefit.

the we're or excited exactly some of make upon the do -- the And board and a flexibility. be it think it than decisions above? of the to to deleverage, be, business point things those of on and based is give to forward, and use of allocation your to billion, business, as that capital about are is ability the to think think combination able is trajectory different the pay the different that. we preference I place that or all great business, higher cash have the to questions like it I that's or we of I go $X shareholders. our Secondly, optionality where to the I want use our where And growth better about all better we'll think extra you of investment better dividend,

up for around like think times, an one, giving that, always for dividend environment paying -- stock, the macro volatility ZIP a and right? And given levered always X.X steady one in case. has nice We've It us. code, current in the that been I that's shareholders and like And always being a our optimal demonstrates for this and return been It's that's place been. X to down. our

raise we're where like of to steady mean a nice, But story. like get I think more to we're a we dividend lot a yield growth be that, pressure I'd of And I the comes. under to that have stocks. dividend and despite paying the return place time our to a there's shareholders. a flexibility when

But the I but getting to and after of profitable terrific doing the but you the our then overextend don't that the more a said, we're expansion well like the yields anchor organization. it hard sight love not us all above that in say line invest of business, just demonstrating regularly. are side we clear that way gets ability it's mid-single-digit that finance also And with returns also just very away XX% you going lease-up XX%, to of discipline help customers time, basically That's the business. And that it to turn from, in is the but network.

I we on for extra next do is growth share opportunity if year, wanted example, we million in as could an there. said, taker the that and to virtually all of mean, a our we're for spend So, CapEx businesses. $XXX Paul

We than than enterprise X% our have and less markets. than X% less in dark waves of in X% share most share share in and market fiber less

tons So, there's of just growth potential.

it. there's overextend so growth after to performing a well But for not and customers, if cost wind the you aggressively, too up go and you then organization

business, of a a which doing is ours, over it in good also huge So, time includes discipline growth theme measured. but period that's

being And the future. us good -- address. expect -- to to all I good good things it's these because I taxes, for with deal is are and us a for So, issues today all in for REIT it's a I thing think yielding all think continue us that fundamentally,

ways the at different open-minded same different corporate but always to structures. allocate to capital and -- And we're time,

we're So, never be close-minded going to to different evaluating approaches.

I'll second exactly you're is your I take yes, your short answer mean to Dave, right. the Yes. question. question

that slide interpreting You're correctly.

the by do path we a of flow -- clear positive end to So, have cash XXXX. free

driving Part the of to Uniti at the lower capital business and at more national CapEx that and continuing large intensity organically grow deals Fiber Leasing. Uniti on is low towards network

of on really at operational of the It's is execution Windstream piece as part other The settlement. all. baked of not that kind the depending cake into

off and GCI time, commitment payments our the those XXXX step-up. So, Windstream fall continue GCI GCI continues – from over then funding the GCI investments to while step previous settlement down continues to revenue in

two are a factor those So, just pieces of time. more

future sort of part of and operational part baked So, execution of is just it into of commitments. it cake those is the

last your I one have irrespective had year that, in pretty Windstream last Windstream's could, guys smoothly. experience it refinancing refinancing or sundry thing, forth kind owners through of just of for and seems reasons. yet, back and like if And And the you the the Paul, so went on over Perfect. process, just various

little about down backward-looking I relevant, the you owners kind all was with renewal that up could you lease kind kind future of of now wondering a years? runway of at the of over wrestling Windstream next period have process and/or if relevant, the talk the nailing bit how this came if five in

we refinancing market how with alluding you're capital Yes. it Happy were that. to oversubscribed. on done, comment was to kind the that Sure, our Dave. pleased especially mean, I it, challenging It for against critical as business, got was and of I mean, significantly backdrop. very

book largest the history. deal a bond in Uniti's was It order for

see confidence of -- the forward. in for team single of that something orders. largest number management our that plan kind was encouraging board of number the was and here have And the that So very we to going

bond that So as from number issuance the well. before we of interest, the bond participated and that there in came have investors, a issuance demand for larger

price So which able And to level tight upsize of with end that with and we thought the very full well. the $X.X range as good were a was for we to at -- it to the very pleased business demand, the also we're that. we billion, thing

And the So, the during renewal take didn't rent a at that actually discussion, single renewal in question factor of of all. was we rent. marketing our it terms a from not of the as really on investors fact, a process matter deal, in

deal to, demand big alluded is receive, commentary good it level a lot comfort a testament the between oversubscription, plan But the back I wasn't the done. is it's to sure there, think And you a going really everybody that I'm our I had the in just that forth something wasn't that and forward. the parties. investors it we they've knows -- getting and that factor with out of heard that think,

Yes.

Thanks, hear. to Good Okay. Paul.

Thank you. And Louthan Raymond next One from Frank the moment of from question. for next our question line our James. comes

Your question, please.

This Rob guys. Frank. for Hey, on is

acquisition you the of on earlier, Sprint outlook decides And first on of network kind fiber? you you wavelengths think you. guys but Cogent's expansion? drop think network for potentially what Cogent impact So dark could to part Thank if you touched do guys that of do the and pricing this

lot Good and Schaeffer. for of Yes, Cogent a respect have morning, Dave we Rob.

I with acquiring very think operator, And customer. he's we're and familiar the a great paying good of they're asset to a a lot they're and definitely attention that.

dark and into we fiber a moving our the our of like towards of bit long-haul respect of waves, affirmation an have for. that by appreciate moving and lot facilities we -- transport based because So of frankly, an affirmation it's a strategy We operator that more right? it's right, strategy,

risk that competitive of industry. the is competition is telecom always think there. I mean, I a

And just Cogent mean, there's there's they're Zayo, there. customers. in and so just we're markets transport the I there's with now. few us, case, customers other -- Lumen, in for markets and transport space, long-haul there's And some a forever this in competing competitors really

book-of-business And so We're ways, a because our sub-X% share as fiber a participant growing in concerned share still Cogent We're taking that now. ourselves. taker on businesses. or right is anyone mentioned, market book-of-business all Paul of about we're not dark our else

than more both another strategy, think there's room us there's space plenty and so it's share I -- downside. having growing upside the of is of And and our think firming the businesses. for continue Cogent I to competitor And those Uniti in for and take

thing that's say, national last expansive I'd think And is than more being the acquired. network our one I

national few hyperscalers, to so network particular, material, acquired we remember, our it -- create years is XX our And carriers, pretty I was ability solutions Lumen think, about -- network is for ago. in acquired routes from a because the wireless

really accumulated old the sale networks all from it's network Level X the leaseback. plus So our different we've

route expensive it's XXX,XXX miles. network, an So national

network provides that ability having solutions. to more offer And network the bigger

about not -- It's price. way. it's to having the to about so always a And connect just greater in ability

growing profitable Obviously, we in to competition. focused keep like additional the competition but about concerned general, on not we're just we're business in happy way. So our a it for are

Great. Thank you, guys.

the Thank conclude I'd the hand like to for program. Kenny to question-and-answer does this And Gunderman today's of remarks. you. session program back any further

Uniti you Thank further on you. We and updating calls. interest forward Group appreciate in to future look your

the and This conference. participation your program. does gentlemen, conclude today's ladies in for you, Thank

disconnect. You day. may now Good