Uniti (UNIT) 4 May 232023 Q1 Earnings call transcript

Welcome to Uniti Group's First Quarter 2023 Conference Call. My name is Jiji, 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 I include on financial report the in during found to with Discussions that accordance comparable company's measures most non-I 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, this for and Thank in has X, route our everyone. on Slide focused you with country And remain buying Uniti mile strategy operator the of largest And XXX,XXX network. infrastructure. Starting strategy thank we fiber independent joining. highly fiber on second in resulted the becoming mission-critical you. building Good

strike We to growth day and solid and our outlook. in This up of wholesale EBITDA on right balance infrastructure. and disciplined performance between and lease and look economics our at meantime adjusted anchor and This full with industry leading along our to remain sub-XXX revenue balance yet non-wholesale. installs on deliver X.X% fiber and quarter monthly focused reiterating bookings outstanding of the discipline to shared churn demonstrates the another has year led consolidated

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

steady uncertain maturity economic plan patiently fully extended addition revolver we these recent market conditions. Combined a positioned execute on and Uniti funded. organic is to mentioned growth we the the that refinancings, last ensuring In also and now during with to virtually our performance, XXXX, have our our is we quarter, credit to runway growth

our infrastructure drive underutilized anchor sale company a The from cumulative through largely up plus complicated shared driving than helping our today acquisitions more yield these is of lease Side fiber from flow network substantially increase economics. three is leasebacks cash XX% working of X demonstrates acquired yields the anchor threefold and projects. versus model

comes that overhead is longer shows required Slide the nature, which and term less revenue for wholesale X execution. our majority with lower churn of contracts

business and The large business susceptible underlying wireless of use highlights that are are performance traffic our to macroeconomic providers, wholesale carriers pies Uniti which These fiber-to-the-home our result, and is and from core sales small are are cases. network. purchasing towers, to connect further cases carriers. intercity a and conditions. large driving these use less all international onto diversified As are that customers across These hyperscalers numerous domestic pops, datacenters, vast the on ramps our majority

result. space appreciate and as is backed to largest as of trends of continue believe of providers positioned Overall Uniti including substantial attractive, sale assets given substantial fiber-to-the-home remain and and giving network customers private the one the -- of number providers successful from growing fiber-to-the-home sources, leaseback wholesale underlying our securitizations. are our asset A valuations capital wholesale the our business fiber-to-the-home increasing value tenants. uniquely a highly investment we

one a years network. an model dollars in a and opportunity competitive own matters X, new Uniti with network five there Turning take the low in services advantage them. ours. We of for with heavy growth wholesale national meaningful our is of it Having national networks the to build to own fiber Thus, wave would minimal independent with Uniti, especially like fiber deploy Slide a and Uniti national present fiber, and being many dark especially two truly providers with to unique competition. ability with scale given networks national only U.S. estimate are today, business billions

bookings. our Slide illustrates balanced X approach to

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

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

the orders. not were funnel we're remains by impacted in sales customers be our in quarter bookings first Wholesale cancel seeing clear, and strong shift timing. To

this In one fact, the included Uniti's of in forecast that It's in contracts quarter the customer the best to had wholesale resulting remember important wholesale also history, bookings in ever for unchanged. quarter we've largest prior for our bookings. year largely remains bookings

regional Turning and disciplined to enterprise Slide X, nature. is our in highly strategy

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

own Our are control dense our all sales network. and product fiber simple, is on set metro

XX% sales, including et our enterprise construction, virtually sales. no maximize plus operational up The fiber cash and to our geographic legacy fiber on of employees selling because maintenance, and off-net certain businesses we're expenses in the efficiency able have We cetera, therefore field ops, net are within majority employees, majority lease purchases largely services. products and of yields we're are concentrated area, a services drive and on

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

a represent of today, remains critical it and our lease always Although will up total represent a revenue element X% of our likely enterprise sales minority percentage, about strategy.

terrific up potential exciting recurring as own dark Equally before, mentioned XXX we strong consistently quarter. represents we result and growth about metro bookings enterprise, even fiber in markets capital small nationwide, XX% which a and enterprise As of was wireless activity, margin efficient backhaul, cells. revenue the during and our for

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

XXXX outlook. good first updated like our begin quarter to I'd Thank performance, reviewing overview Kenny. And an you, by morning, of by followed everyone. our

our credit recurring revenue. activity strategy margin recently high into up miles execute lease revolving facility strong entered growth reflected later. our to XXX,XXX the quarter. Also other of we'll or in on we maturity XX% of Combined This over the well the with in existing to facility of the up our activities, matures September XXXX. note, an route continue bit. network debt was outstanding recent We in in more with at on extends XXXX refinancing cover our during That of leasing a our fiber amendment now that just detail

Our unchanged. XXXX for consolidated and remains adjusted outlook EBITDA revenue

However, our adjusted we slightly estimate. lowering Uniti EBITDA fiber are

also impact recent our relating AFFO We full the year our accounting of share refinancings. for finalizing are as to increasing result per a XXXX

current structure. capital Finally, I'll and conclude balance with additional commentary our sheet on

start $X,XX shareholders includes early to to I'll our the first diluted AFFO X related quarter. per of approximately X.XXX% share, consolidated notes $XXX Slide $XX and with attributable AFFO of of comments of of or of repayment write Net secured to million per shareholders and $XX common which deferred diluted was due million revenues EBITDA quarter million on reported to $XX and off million common We of share attributed the million of costs our the for common million, financing turn adjusted loss costs $XXX XXXX. consolidated Please $XXX $X.XX.

million, segment for achieved the and representing of Uniti of first compared EBITDA the XXXX year revenues EBITDA $XXX XX% adjusted At prior to Uniti million reported adjusted margin quarter the Leasing, Leasing $XXX quarter. in for growth of each period. we of X% and Accordingly,

capital provide continues investment results XX, to our program Turning Slide to for growth positive Uniti.

be largely on in eight long-term Over have of XX% focused utilize with miles expectation billion over the tenant resulted the most and value Based capital has invest continues network fiber, GCI newly mile if XXXX. fiber, our years, Windstream will route we that with in past overbuilt XX,XXX improvements by legacy Collectively, fiber network of of copper highly half over on our Uniti being the accretive investments of tenant invested not fiber. constructed all the and and made-to-date, program, investments that to $X expect legacy the network. copper nearly own our capital last built fiber. of valuable its these will

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

approximately miles under of GCI miles The added investments our annualized making XX,XXX one with annual nearly XX, million the to such XXX,XXX program cash year made value unity a investment. $XX leases Windstream generate around the Uniti the As the invested overall will to escalator master of of rent route margin. fiber today approximately will to $XXX initial XXX% anniversary network. strand X% and be our ultimately resulted date are increase of and X.X% million we've These to at March of of and capital adding investments an has network. yield subject in They

over XXXX This small million years. across Fiber, represents annualized backlog around annualized during sites million. cell our approximately carriers Uniti Southeast revenues our wireless dark backhaul, incremental We dark backlog to add cell next $X.X At for in few installed fiber we fiber lit backhaul, of have we lit first our sites that small remaining over and currently deploy the turned XX the and an $XX of expect revenues. footprint wireless quarter. These XXX

primarily year reported EBITDA X%, margins the quarter to the due during million X% higher ETL revenues first and timing of growth non-recurring termination and XX%. legacy adjusted than the the At early Fiber we was Revenue during period sites. of to million from achieving fees expected Unity Sprint $XX and EBITDA the $XX of prior quarter, of of of adjusted relating respectively

originally purchases, CapEx delivery as Uniti first $XX continue to was the than times of to higher networking due Fiber receipt net success-based early improve. quarter the million equipment equipment in was lead and anticipated,

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

our I'll of accounting unit We and Please costs the related business and guidance unsecured other from the turn finalized incurred Slide our related to impact recent XX, were revising to redemptions, impact updated XXXX our convertible cover guidance. for date. now note level revisions, and offerings transaction and

related outlook these transactions other herein. and excludes Actual future not from capital materially acquisitions, statements. differ market could mentioned and specifically costs transaction forward-looking results future Our

the million now midpoint business. up CapEx Windstream the rent prior fiber estimated the which with to associated associated million Windstream $XXX with We outlook of guidance the be in to $XX our each we EBITDA $XX EBITDA expect following to million and and of XX%. $XXX $XXX of each relating midpoint includes with respectively current EBITDA Uniti adjusted Our for representing million revenues cash of dark lease $XX the includes year expect leasing master investments leases GCI approximately investments. with requirements increase of our the XXXX and Revenue million Beginning The million the capital $XXX associated to for margins to from and guidance, due straight million deploy is at to GCI full relates line at rent adjusted success-based adjusted investments. GCI Leasing, and segment. our continue

Slide prior than XX, from year slight to as Fiber revenues the decrease expect than Turning Unity higher outlook for is in adjusted due come to The partially million expected earlier, lower EBITDA expect expected of We contribute of equipment our which EBITDA of $XXX at $XXX adjusted revenues midpoint. as to full a margins. the by we recurring result Kenny still relative timing non-recurring sales, now million highlighted of with offset bookings lower XXXX. core

core existing lower to fees monthly We $XXX to million This Despite expected we our our Uniti recurring footprint. executing healthy XXXX dense for at on be now success-based expect lease as the Fiber prior up rows now CapEx Net delays from this Fiber demonstrates the in decrease equipment run-rate to X% point million, to X% between purchases grow XX% in to mentioned of a of as $X success due million further and that the XXXX recurring million guidance, our midpoint ETL compared revenue XXXX. a from $XX than to this, XX Southeast fiber earlier. our expect Uniti Slide and strategy guidance, primarily approximately continued of levels growth this still be as prior our of result solid $XX in year lower is our XXXX. bookings we emphasizes in leverages year. revenue still expect X%

full Slide share a common diluted and to diluted $X.XX year per we to AFFO $X.XX XXXX for share. XX, of $X.XX range Turning expect between per midpoint with

diluted to and note a in expect our million at to we be incremental midpoint. relating convertible billion On recent reminder unsecured As revenues XXXX EBITDA consolidated be to adjusted $XXX and still basis, $X.X interest AFFO will be the impacted by refinancings. a shares

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

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

full outstanding year average of XXXX common notes to impact XXX accounting revising the shares method. convertible our around the million recently diluted to issued for shares the weighted be relating We shares of diluted are using if-converted year the reflecting full the incremental

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

the million $XXX September now March exchangeable from approval, transitions XXXX. our On million. of million commitment its amendment notes to facility upon consideration $XX repurchased each under to that an entered to million. cash of $XXX approximately extends in revolving company's XXXX facility at XX, maturity secured due Turning to Uniti into X% capital lenders notes March SOFR. XX, routine end the LIBOR quarter receipt XX, structure. amendment On for of senior Uniti outstanding credit regulatory balance The is The approximately the of these principle of its also date credit revolving $XX.X total agreement credit

At of million unrestricted approximately and cash had capacity. equivalents undrawn quarter-end we revolver combined $XXX and cash

end of on $X.XX quarter XX. adjusted annualized leverage EBITDA. times ratio On share declared payable to record based a dividend stood Our X.XX our on June X, per to at board stockholders debt a net last May of June XX, quarter

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

the Paul. fiber several Slide more will XX investments next over illustrates making business the sizeable fiber and Thanks, in our years. lead Thanks. a to we're network valuable

inflection by and if deleveraging we investment. XXXX to maintained double substantial of become of cashflow size of XXXX, to generate expect free times leverage the net business our non-Windstream annual our point expect level lead to in also This free current dividends four dividend the cumulative the over and approximate and five We during ending billion resulting end fiber flow period capital $X after to in we five-year positive cash where of between the trajectory would XXXX. be roughly

to Turning XX. Slide

we've use down cash explained could our the remaining de-REITing for dividend, views. liquidity. and invest flow each of and allocated briefly months, pay a required few dividend more these be our past to with a in paying are filled to REIT arguments payout we've debt observations. address current near we outstanding free about I'd presented many term questions discount it'd we the strengthen that been arguments few that thought share a we our Over in and if merits of so current helpful to our the at business, like other The

the under never we've our in First, invested business just service dividend. to

we fiber our fact, over and capital build XX% more the in range consolidated In as out now basis. XX% our in a the dense on networks intensity normalized historically Southeast, was is

in is business As we've this we and believe appropriate many order times, the optimize to said for fiber profitability. range growth

is as a forecasted given on appropriate capital through we're certainly invest if So in more. organic that intensity materially definitely, here our could not M&A seeing. capital, returns capital business believe And didn't we we pay more or our we currently ongoing we but dividend, today, sit the

of to times we've comfortable X.X we is us. deREITing, debt, maintained said that the that And a to and paying down argument six With range. have consistently more level leverage respect always for

time deREITing only however, Given to related leverage savings to certainly decline lower appropriate. to Thus, trading on achieve Thus, be stock times, By desire as suspect leverage. volatile leveraging higher offset leverage high. the capital lower our marginally not five largely X.X being by as four these de X.X is deleveraging forecasted materially would times understand seems leverage. over would our And around would for to taxes. our partly the markets, we perceived reason the to we pressure dividends

savings approximately REIT. remain cash future we we be to the a fact, NPV billion in if estimate $X.X In the of

recent dividend bolster DeREITing would and their borrow near obligations cash could that's times. our that our about time said, which financings become in doing. to we essentially eliminating helpful the term to and free until elevated is dividend With months. spending what certainly service current these we're volatile It we REITs flow to service liquidity for be in uncommon positive not during to temporarily XX size

downs with business therefore predictable generation. step prosperous, robust, contractual flow spending a in free clear to a and very have cash substantial path We

which of infrastructure and Our is the as free suggests percentage as other approximately payout for ratio room cash than our is XXXX REITs XX%, dividend overtime a is share per average payout lower grows. flow to AFFO there increase

structure Finally, our REIT has significant value. strategic

strategic elect As rules the a considered reminder, opportunities created we've our to REIT our many valuable. REIT of before were as we XXXX REIT be time it harder And in to a and status very IRS making in in real conversations changed, has the past, proven certain status.

years, extreme and best-in-class value had, returning maintained eight of our past U.S. shareholders of $XX leverage, six American periods we've all dividend. at premium built to a form during steadily times in businesses, the a and the targeted Latin including while Over fiber per tower built business, U.S. of we've X.X sold other to volatility our a over share

is under continue our maintaining which important always we our believe to investors, been preserving structure our REIT a investment while the to status strategic its corporate provides circumstances, capital of conclusion, thesis return it has of is part meaningful appropriate value. current our In

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

comes question Thank Cowen. Gregory Instructions] Williams line the Our from you. [Operator TD from of first

questions. Thanks my for taking Hey.

Can all, I The the just beyond above minimum and first is to that a think much of remind made of dividend, case how Kenny, the you us of REIT? your you and requirements? just remain $X.XX

reiterated second second a makes you the what up just expect causing process so on guidance RFP the especially wholesale And or in dragging bookings. and And on meaningful what's the we maybe you in question on customers pick delays their in Can complicated then then. so is know it you should quarter bookings, just softer then expound bookings feet?

obviously that's don't we start the that our bookings. question. strong. Yeah, is very, I'll development very bookings bookings very because leads I with our more And funnel even Hey, what Greg. to closely follow the think closely, but follow your funnel Yeah,

I as you given funnel think large decisions we one impact about of a handful wholesale three quarter. customers we with four can by two continue when to deals, make bookings that's which customers or definition timing, heavy means have a it been. any a have And that as it's maintain in ever or fewer business, larger different

to deal of for us quarter funnel MRR example, had in of of this the And, our was in originally bookings. we one that quarter for earmarked fourth last for When the causes a quarter $XXX,XXX that record year, deal year. of have first

just the So quarter, if in first levels. normalize you are basically pretty level fourth bookings consistent with you floor the have historical that

slipping bookings, that to quarter really deals but pulled view soft say, three or way. don't that one quarter being or might a can prior it All reveal from or two one can into we

we fact, April at In the quarter think are in back now going rearview normal And we're levels. general. that you to the second look bookings when mirror, to be is more in

forecasting say, that precisely So up year. roughly know don't timing or we're But I I the all going to for that think is of to don't quarters, well the months we're XXX,XXX us, just your course Herculean any have I the of how bookings. think going our make the over expectation you're we to,

don't to not, think any wouldn't I particular the environment attribute we macro issues. And timing certainly

specific it's just think buying customer patterns. I

So to anything I attribute don't have too. those really

over disclosed XXXX at number, we're distributing and I dividend would million over XXXX, million probably but $XXX XX%. this much the between tell you respect not forecast. about and year, look on dividend, really based how $XXX our We've somewhere what the and remainder With if you that we're to additional XX% question is the distributing of your

what roughly I per so in that's know the And but on a share basis, number. don't equates to that aggregate,

the it. color, for Got it. appreciate Thanks

next for moment One you. our Thank question.

the question Bank America. David next line of of comes Barden Our from from

is your XG with just and Hi, [indiscernible] their liquidity on DISH? are your relationship this to David. their you with elaborate commitment There concerns Could network on on for comfort level build. some status

for Thank DISH commitments? if customers for are network there Uniti, primary fulfill ramifications Uniti their the of any is one you. to unable As

Shipra us, Hi, a small actually customer still a is growing DISH customer. [ph], but yeah, for

they sites. very, been active first the a was year year fairly DISH milestones And last very with quarter, and half -- that and year to we've we've on they so this -- turning reach have. as active been think of strive the in we up And first

our change but do of macro customer, time, and customers cetera, And, in seen follow active in soon. an each environment performance, continued customer. on terms normal of of and obviously, change follow not that's we that progress, the see seeing, don't active balance behavior. sheet, based over But and we their expect to we large we liquidity, investment their expect But we're anytime everything be et our just them activity. a So part to haven't any

sounds Okay, Thank you. good.

for moment our one you next question. Thank

of Raymond Our Rob comes the line from next James. question Palmisano from

Rob's have login sorry. Hey, Must under there. number This Frank. is in logged --

couple Sprint walk next of the on thoughts obligations business questions, Windstream to how give going when can the over overlap total cash your an you pricing us that off as your couple downs, your a Remind Network start agreements through market? And the So quick impact kind might the in with dark to us that impact of the walk the with on us close and fiber Thanks. those you magnitude? just can roll of then you could years. update

your with question. start I'll second Frank, Hey,

you, customers we're with But we overlap. I network, percentage I of going familiar there's to and you. don't not Cogent just ours. frankly Paul GMG good very a and forward. of that not overlap that been first of one. that they I have lot the there's share the Sprint with expect lot Let has can But tell Historically, overlap. could of a And take continue a

of XX pricing don't industry the fiber expect dark I definition, fiber. years, And sales, steady maybe. of big so a mean, XX for certainly fiber dark change our pricing years not held is the and Frank, by dark pretty If impact in we the on in

big expect So we the don't there. change

to let is starting transport but an design, have predominantly some transport. dark, light sight we do clear have of the our going the industry we're clear in where the we And today. both waves Frank, very be maintain to It's a think up lease product, lit don't of predominantly as know, and on by field where a line more it. also I supporting impact lot economics, to and so we routes, anchor so very footprint, on operations you to the Southeastern

we're it can And very to overtime we in share disciplined Cogent say, do where transport we that lit be. to market a and going just manner. our grow too, a to But tactical in all we're taker that like expect continue to

may And will impact a it's -- embedded It already upside so going others. of an for not but to in that it from base growing may very space for it us, us like amount the small you're very, base. impact

And I incremental fiber I transport may I'm additional it ultimately, waves networks, just wave And about dark in by Cogent or a even I'm not there's of of a create networking relates between so think of solutions. concerned for not foundational definition, demand our our lot traffic, it. given more business, drives terms us as overlap not think lot to solutions

unity. positive net So net think be a it I will for

to. terms And down Frank, the talk Kenny going obligations alluded we and of you're And of in settlement as there next that's a step our part in Windstream in as of forward. the of I'll piece jump And big of story, cash payments that free Windstream settlement in to those towards trajectory right, made is that kind about a XXXX. flow in couple years, the

So there's two it. to pieces

completed payments, obligations. so of are $XXX are the quarterly years a couple settlement Those on in paid basically left those which got we've third the in basis, quarter million annual just payments. The of of an of first XXXX, shy is piece

rate. all 'XXs in we're on have ability on prepay We the a But paying exercise schedule X% back of regular we or that in a to basis. prepaid payments late-XXXX. and at the those of And now XXXX, discount option discount quarterly

in billion years is the we've $X.XX obligation. materials, just $XXX And a the I And actually got committed improvement invested date then comments to that through program piece GCI we've the it So got XXXX. capital in available to we're of we growth second to I to the in about And mentioned program. left Windstream couple of making at program. that think my million as

that and $X through expect is we're majority of $XXX those them year. This that. every left spend seven Those program in we next XXXX. So over cap year, obligations, to the billion years little are million, over to the utilize capped

as and in And down can then XXX those step But then that step filings in see then And well. the you XXX that through of lease and to years stepped our out XXXX. down down below over time. the

the piece as there's as GCI that investments. of those on is But that paid other well rent

So the we're cash the those to GCI but program stepped over investments investing that down, does up. time, from previous only not capital start rent step

get So by previous -- the to the be investments, the and a term, years GCI end small to of pre of out on delta rent between investments out starts the the the lease pretty the program. on number in the

are definitely trajectories cash free step forward. those a flow our projections both for and part of of going obligations down that So

Thank All right. helpful. Great. very you. That's

One for you. our moment Thank next question.

Our from Simon line the next comes Flannery of Stanley. from question Morgan

you us market? potential Kenny. of in the if buyer for valuations, being what in and I have assets how wonder that thinking, you distressed cetera. morning, a a update good a being terms the market of Is just terms are thanks talked And seeing of might interest? seller, be about in that coming people to something you're on lot. Great, M&A just generally just et M&A could

on And fees. then just a the Paul, clarification termination early

should of quarter, the the think for we rest balance and reiterated $XX on the you of what saw us the update how year. million think Thanks. could we I their over year, perhaps in you just if

-- the take You

Yep. Simon, yeah, on M&A, very it. focused on

our discount stock. there's continue embedded a in substantial We conglomerate believe to that

the fiber-to-the-home if be of inside our M&A of And implied our stock. reflected XX%-XX% look business, yields. And be there's is on adjustment, XX% modest at should secured you a in that you just of are putting XX%. $XX-$XX-$XX make not the fiber just M&As, company when or If at we being XX%, that fiber-to-the-home the one our -- valued should those share a on there's providers a valuation over private trading our yield debt value

result, catalyst and board a quarter, more. near on end first and of very on getting of unlock We, continues all very done. term we're a part the focused our as the M&A that to our through So to discount, last as focused of year financing work be

and And way so on as virtually the ability us to financing M&A already were on give and we pause markets not when publicly daily financings and basis. on intentionally pressed focus have a opening intermittent to blackouts a closing

intentionally that. paused we so And on

execute But and a that have to ourselves us, behind afforded now basically runway on that we multiyear the we've business.

back focus on We also to now it. runway we're and M&A to multiyear on being have a focused

at scaled, thing, The commercial to our are we're And infrastructure, in capital in infrastructure without it's of think network, fiber, doing that in ILEC And services And legacy point, own that world, flow. generating addition looking on are economics. embedded based, for scaled I -- fiber There's to that. and largely facilities platforms substantial amount in least, not interest fibre-to-the-home opportunities. cash opportunities the sidelines quality getting substantial are good a performing we also shared the thus a incumbent waned. that, has assets on quality digital your

to near a believe active among dialogue investors. or So that have always we infrastructure, -- infrastructure as a engaging a materially, midterm, to assets We've seller. in that digital future with opportunity future think, had we're as counterparties in and are our going space, the those and two highly frankly, coveted buyer begin

that forward about and in. excited we're look think digging to I So

I what's infrastructure I And remain elevated. multiples that about get smarter attractive. assets getting remain are or quality the ours, quality lower. again, quality investors multiples continue always that think like assets, what's I And to about digital not. multiples quality assets, for say and think for And the smarter We for versus higher question

of the some not them. on afraid about have distressed situations a point we're of assets hair that your engaging little there, in to out So

the could fact, routes In domestic when we CenturyLink, those it. three, to required when ago, from do several to their a bought long-haul acquisition years were sale, were divest part consider as level distressed of that assets they required because of they you

assets was there do was got really, a price. and our some we because deal acquire that attractive very we And so buy opportunity price well we engaged fit get was we a -- network. network terrific to able an no very attractive services, hindsight, assets an to us. in we to but clean, a really existing legacy But it and And those engaged for were that within at that were thought willing that, at were

So if getting considered we're of but underneath asset We're that quality in with interested be is not distress quality situations operations. not quality. involved only distressed, sub a may that afraid buying are asset of assets in actual the the

we the quarters. be coming think all with active in said, So going we're months pretty that and to

question on Hey, Simon. I'll Paul. Sprint ETL. your This the take is

$XX So as that the of about million did three networks ETL in connected year process. liabilities T-Mobile we about and Sprint of year, period over through are Sprint in consolidation revenue they with are termination the the definitely the XXXX, go $XX two or ETL Sprint early million that and Last in over our a piece fees. that we're fees projecting

The program decommission for well looking the to towers is known. they're that

do, to of plan. size timing total a what their we know come those going when the What's to the that uncertain planning little know is of are they're in. we So overall

to for predict, disconnects basically the obligation when paying for their and on power that revenue decommissioning remainder tower. they a exactly the occur, little hard so do those occur. us monthly But is recurring Sprint And it's when

obligations a recurring of the really pull it's future forward So current monthly revenue into period.

comes in margin with bit at kind a a terms was That revenue of that in revenue that performance margins our factor forwards. margin that high with pull big of our early in pull Fiber that increase in high very year margins Uniti last coming So forward. those

little around in we be think left But is last peak year for the the do got about $XX expecting $XX the be activity higher alone. year. million. million they've was we this first total XXXX that that This that quarter, that the continues half we're was came should starting But will less quarter XXXX. the a I after amount expected to first what $XX get a And the in year its in than range, year most is of million in bit expected year of decline the done to number But as said end life. still be to then, little program There'll happen. to said, than towards that of

for part the activity we the than full of first that still the we just think of the similar their network some the expected carriers, number the So coming year And over of right XX of course number is the little I year, reported we a faster year. on is think they're in well. other and as

Great. Thanks for the color.

would closing conference to to back for At I you. remarks. Gunderman this turn time, the like Kenny Thank now

look us forward for future Thank Thank you Uniti joining your Group in updating further We all interest to on appreciate and calls. you today. you.

today's concludes Thank This you. conference for you Thank call. participating.

disconnect. now may You