Uniti (UNIT) 2 Nov 232023 Q3 Earnings call transcript

Welcome to Uniti Group's Third Quarter 2023 Conference Call. My name is Howard, 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. [Operator Instructions]The company would like to remind you that today's remarks include forward-looking statements, and actual results could differ materially from those projected in these statements. The factors that could cause actual results to differ are discussed in the company's filings with the SEC.The company's remarks this morning will reference slides posted on its website, and you are encouraged to refer to those materials during this call. will in certain Accounting accordance call were measures Principles. the prepared not with during also financial include that Discussions Generally Accepted comparable turn report Officer, on Reconciliation the X-K Chief dated be financial Executive non-GAAP now Form over in GAAP like to would directly Group's to found current of can call financial Kenny company's measures the Gunderman. today.I measures the those most to Uniti Mr. Please go ahead, Gunderman.

solid and morning, our X, thank you performance, Starting result, joining. a Slide quarter another revenue, consolidated adjusted reiterating Good for Uniti EBITDA outlook.Our on we're delivered grew revenue from and the you. recurring X% quarter XXXX again third as prior and the AFFO Thank once core during consolidated full-year year.

perform and services no wholesale, with last at long. same our be runway to exceptionally year.With the for revenue respectively growing the industry-leading Our well dark and down, XX%, lease-up when X.X% lease-up growth enterprise, legacy to and XX% we continues quarter period mid-single-digit believe weighing our X%, us during categories non-wireless fiber to revenue compared continued churn

scaled our Our steady carriers, exceptional network will growth and us performance and, demonstrates, believe, be returns X churn.As this wireless minimizing Slide providing agreements bespoke disciplined national to negotiate allow we and with network profitable.

network, Our leasebacks, is through economics. fiber largely substantially helping underutilized infrastructure sale acquired drive our shared

backhaul, before, about own And small route our nationwide, yields from continue route cells. cash and added available anchor represents driving we XXX X,XXX as Our increase our terrific yields XXX,XXX today growth enterprise, dark XX% metro the these during flow Slide we've anchor is network of the wireless XX%, and working, mile of in for more plus cumulative model we miles grow lit potential X-fold lease-up a Only markets margin-efficient than projects.Turning capital approximately and to which fiber is network, about today. X, on to we mentioned quarter.

densify of the wireless which longer-term that required these need that execution. wholesale the that is nature, is carriers contracts, non-NFL markets, revenue will in believe Uniti to churn, majority well-positioned for our eventually for with and overhead lower shows and less growth to continue comes in We X future.Slide

underlying As we're and performance fiber segments. across and conditions, less business to macroeconomic and cases susceptible numerous our a are diversified for result, use customer

example, fiber, an less relating with the are national As group, advantage more a artificial last year like especially see decline ours. intelligence.Turning a other providers. fiber. growth X a in and remains the line lease-up. bookings during low-risk and growing when and demand sales very our compared ability dark to opportunity wave interest Uniti quarter higher, been illustrates though model starting also the to scale fiber services present strong to is Having approach underscores buyers business and in fiber-to-home Consolidated by use offset for our balanced bookings the even as hyperscalers, the quarter. an wireless network as spending carriers as our wholesale-heavy Uniti, matters meaningful were such to with The to cases Slide own unique, providers, for this has competitive and We're prior funnel to in Internet minimal our X, is never competition.Slide the than network with third deploy between anchor essentially

highly strategy is result, impact to and not larger lumpy, perspective.Turning a in a deal a Slide to in enterprise quarter in nature. from regional materially for are appear and fewer As our is bookings typically wholesale wholesale timing deals X, these bookings one given disciplined can single uncommon It quantity.

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

and to is its region, in brand to accounted growth the doubling share fastest-growing helping early across the is XX job to strong local the XXXX, In all U.S. of for since this home fact, X.X%. pandemic, than very of contribute cities.Our almost around the has enterprise more American of industry-leading Southeast prior XX X/X large to churn

total these $X backed under of is of performance, critical to with and call years, now market conditions.With a element represent the minimal credit that, until given steady it execute Uniti a I'll uncertain and will floating always billion today X sales turn and revenue average an lease-up which continued maturities over Paul. enterprise growth minority no percentage, our is about likely Although rate organic remaining patiently by XXXX, debt, revenue contract of term represent strategy.With nearly debt X% remains our runway during our significant positioned and economic of to

compared morning, Good consolidated performance, at to year. to of Uniti during by results I'd overview to followed outlook.Overall, our quarter by Kenny. our both you, like quarter with recurring were an and XXXX Leasing prior Fiber quarter line current Uniti the expected, when higher reviewing begin X% growth the the Thank during in of than everyone. third revenue

Leasing, $XX turn AFFO for XX, consolidated period. XX% revenues adjusted and third segment rate EBITDA diluted Slide remains charge Uniti of million $XXX Slide and attributed reported prior consolidated We of Uniti positive quarter. that to and start representing million, $XXX we unchanged, EBITDA results to share, Capital of $X.XX. quarter approximately related the XXXX compared third for Program the for the adjusted continues attributable XXXX of our to on margin I'll X% loss we approximately per previous the Accordingly, in our of our provide achieved million, environment.At outlook XX, each ranges in to $XXX comments million, adjusted result, AFFO $XXX year for million, impairment Leasing shareholders consolidated revenue, driven increase and or diluted EBITDA guidance of to an quarter.Turning a to includes As was common common for segment $XXX the Uniti. of million provided.Please the Investment Growth Fiber of macro growth to by an adjusted revenues and as a within EBITDA, to goodwill reported Uniti our Net the shareholders per $X.XX was interest end of $XX expect quarter million, common AFFO year share with

Windstream Over of network. tenant to focused program. majority long-term Growth our continues Collectively, our to-date fiber. its in made largely with be these markets. miles XX% highly of These newly copper all, towards Investment investments to Capital our have Uniti Uniti resulted the we route capital last-mile network the has not to capital $X GCI the invested initiatives, the investments program, value-accretive X,XXX and with copper of the the about expectation the the invest utilize fiber.Based fiber, that of XX,XXX network fiber added past valuable nearly Uniti's billion by XXXX.During on overbuilt constructed tenant own quarter, legacy on with route in over years, investments overbuilt several of deployed fiber Windstream that own will fiber and improvements X in approximately investments GCI will most, $XX GCI miles expect relating network half Leasing different third of if the of legacy across million being

Fiber. remaining fiber subject adding program under XXth, X% and yield Uniti over of $XX Fiber non-recurring The lit in million. They related margins and of a million and expected backhaul, margin footprint we due versus EBITDA quarter. releases network.Year-to-date, value cell GCI we quarter miles sales.As million Uniti small the nearly cell and at of to revenues to installs and backhaul, ETL We quarter, the capital of has X.X% EBITDA deploy of mass sites margin. This $XX next to-date over due backlog approximately the million our years. our acceleration to annualized third CapEx of Uniti to XXX% with represents around of wireless from an carriers of was our the making annualized such Fiber, can fees result margins revenue As approximately quarter, miles net $XXX expected the anniversary for the we adjusted at during approximately certain of an to Revenue These escalator lower equipment margin X-year revenues.At to XX,XXX the slightly have and than small X.X XXX in million to few to achieving thus non-recurring our of around backlog route which mix be predict will Uniti at to-date lit $X of increase across Windstream, fluctuate while add XXX strand currently invested than $XX with reported sites was in made and projects. higher $XX line a about fiber, ultimately overall reminder, of the Uniti million investments million was will difficult our our turned expectations, cash third and revenues network.These adjusted Southeast we've our September dark be timing $X.X investments XX%. incremental better annualized wireless have initial generate fiber, are exact million higher million the can annual success-based rent of dark of added in investment. that $X expect was the

about XXXX and guidance the CapEx during revising date. million XX, $X quarter.Please incurred transaction-related to guidance. the costs and also We of We're and our turn maintenance impact primarily cover revisions business our unit-level updated for now incurred I'll other to Slide of

million to statements.Our at maximum results XXXX. and CapEx we which $X to growth other adjusted certain expect we costs of of in midpoint Slide October, We materially reflects Uniti increase our year. outlook million buying of responsible the full-year the current and GCI Leasing, investments and success-based could The from prior and transactions, delayed slightly be of year.Turning for transaction-related for $XXX approximately our deploy segment. Fiber us at lower herein. GCI, includes annual excludes than million following we the $XXX to to revenue EBITDA to fund investments. capital million $XXX million million as $XX.X now relates outlook forward-looking from and quarter. outlook brought which acquisitions, possibility the margins full-year of EBITDA expect revenues mentioned million, the quarter. future the market X% We to representing In last Our the we midpoint, for funded expect This to during the customers previous this and at a Windstream our of of decisions adjusted of Uniti core be to XX, would acceleration these highlighted with now future $XXX due of contribute expect $XXX revenues GCI we XX%. Actual enterprise recurring guidance, respectively, EBITDA Beginning specifically each wholesale adjusted differ XXXX amount that million midpoint from is not $XXX outlook

in capital full-year fees of strong, the reflecting of $XX XXXX $X.XX between to remains cancellations that not earlier.Turning from any expected we to and in sales to Uniti million XX, midpoint AFFO $X.XX year acceleration and the Net to during the our customers.We extremely expect midpoint diluted funnel orders are at Fiber million seeing of share, diluted outright range $XX this share. of to our I $XXX XXXX. for guidance, ETL be approximately third mentioned our with compared $X.XX be success-based for XXXX, continue However, million still a is we significant deployed Slide to quarter expect common per per CapEx

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

Our expense million $XX first premium deferred year million in full which guidance the write-off quarter $XXX costs our expense. expected $X the of a and million, amounts early due financing includes notes stock-based consolidated secured of senior $XX segments, approximately compensation of X% of interest redemption this repayment and to to of of contemplates the be $XX to related million million, excluding allocated is XXXX.Corporate approximately X.XXX% business SG&A, year our including for

using average incremental to weighted diluted around the for common the year accounting relating notes if-converted XXX of year the diluted the last full-year Our issued expected of be full late is million method. shares XXXX the outstanding shares reflecting impact to convertible shares,

of reminder, over a are a stockholders of the that, in the included call appendix December outlook turn Kenny. payable ranges As our record I'll key Xth.With our our Board yesterday to to XXth, back guidance on $X.XX dividend of to now presentation.Finally, per for January declared components share

Thanks, Paul.

investments we're on I revenue, targeting top-line XX our and next focused be while to fiber a disciplined mentioned driving continue the we growth.Slide several high-margin valuable more As the in sizable to fiber lead will mid-single-digit business recurring years. demonstrates over earlier, making network

substantial by period positive after dividend in XXXX.Before point we of if to cash five-year with along net maintain questions, Xx inflection during $X the Xx billion become free cash organic in the We our level generate the and in XXXX, would our we and be Uniti. end free outlook, of to XXXX size to investment.This dividends, annual the of to also growth to cumulative where predictable the expect of flow and approximate between ending some fiber business we doubling industry over capital flow expect leverage deleveraging, directly comment roughly trajectory, impacting opening trends lead like briefly to are I'd recent the call that our on resulting current

parties sources various attractive result regarding or from not attractive communications number just ABS both for in Uniti come financing. asset-backed new form infrastructure, application fiber had investments in and has there the that as capital is assets. and to First, conversations importantly, fiber-to-the-home tower of end, with financing our known buyers that confirms of source strategic and towers a after the This several valuations. financings, and indicating commercial ABS, centers center fiber substantial have us.Secondly, fiber transactions and analogous M&A advisors. as of agencies interest mission-critical including And conversations, data space being rating in only recent of have investments been prevalent of securitizations, To a stable, is provides a public more viable, many as but believe These these a become and spaces. data the ABS attractive breadth trend also validating years as have private we these

sold As up asset-rich to positioned X past of X assets multiples. over in trends.As has of billion uniquely Uniti with the at fiber largest is to $X these reminder, benefit the portfolios from or company an premium both country, of a years, monetized the Uniti

M&A billion, today, to opportunities coming $X operator, of quarters.With asset of and in inclusive explore far take and we questions. these we're ABS now expect exceeds dashboard and Our to that, sales, alternatives ready

comes from of first Frank from Our Louthan Instructions] comment Raymond question [Operator James or the line

opportunity maybe different How Kenny, follow looking that more are forward? what idea have you there there. dark Or at this just that you're ABS comment, Is of of, buckets are looking said an billion, at us look Or sales refinancing a greater you fiber you of about going can or pure mix? at, think $X do sales? the a others? than give kind of you of you asset kind last up on that from just opportunity or

Sure, Frank.

go of I is of an perspective, think, billion the from if opportunity is there choose ABS in and itself that path. probably to $X well we down north

like $X for past sale monetizing the sales course, used X of up monetizing or fiber the with portfolios we leasebacks especially historically ventures, mentioned use we're big refinancing segments is transition, probably to what reason whether real look we've part opportunities. certainly fiber, we respect north of dark through into used of digital normal X along sizable and Everstream higher leasebacks. be -- close over for shareholders that the also lighting, like of billion selling use, how itself and infrastructure portfolio just to at say, do. We've I portfolios market to It on we lit transition sale think, or part $X $X to towers, I years of appetite of currently of be the from perspective, dark towers opportunities looking there, sort realize joint And a business way, could leases, the be the asset that our leases, I'd it ground we've well we and done right?I to fact a ground did billion portions our could not with and value mean, the in with of think out-of-territory selling that's for it billion. got proceeds also it estate, certainly

So, those of a work looking opportunities.And substantial there we worth things, portfolio is aggregate thick mentioning of have amount the different when the especially and capital, felt infrastructure, conversations. just we're to put digital that you that of sidelines, these within in we on be equity consistently given just to capital it

the about for think would of it both and shareholders. our value realization I of refinancing intrinsic just general opportunities So, from standpoint

Okay.

the around now? seen digital in been infrastructure have a are demand, Just mean, particular has Is kind a for of interesting that's you? What's I some pool movement changed, there changed you follow-up. to a you're this set new capital anything chasing highlighting or while. on that multiples of more that of

always for say one, macro I mean, I'd there's backdrop Frank, then us. and Yes. X there's things, specific. Uniti the

maturities on out over now us, As more were that we or behind now that us, behind we M&A. prioritizing we're the pushing focused so quarter largely and refinancing talked ago, that's focused M&A. and about sheet balance very And a on

these debt being And been there's backdrop in I the We've in these the a think, debt just of higher That's when we've on there macro stability consistently lot think we're talked an changing. because bit quarters.The there's several is focused although markets more about opportunities interest that an also, So more the view the is rates do to over past volatility longer. days. as impediment still a I elevated, are for particular. increasing phrase be going markets

take going horizon. the this quarter, multiple double-digit And commercial helps an done private several right? months, been the capital leveling of lubricate space. volatility where rates some fiber-to-the-home in there's think -- of the so, interest I so, opportunity their at about -- attractive and there, next that sellers what gives And their a a And out you mean, to deals of and fiber view there's buyers is are view that and if consolidated the but for be, think both I you still XX, past volatility XX better will.And that activity. certainly cost near is so, got I at look

private by is external capital multiple.CableSouth, done or quasi-public very for to sale is large a our CLEC, customers, investment. all in attractive being all is these strategics of or the deals are substantial leaseback ILEC, combination, multiples. a sold help being used one at that Another cases, either equity bringing deals. are debt XXx of no sources And in and some finance And

of that capital this So, used, minimal plays a put to use in Uniti valuations attractive new work, demonstrates that of very being the on multiples space amount debt but creativity are collective validating also it in. being

It's great. right, helpful. really All

Williams from comes Greg comment or from Cowen. question next the line of Our TD

You Kenny, to on well. or more fiber-to-the-home commercial fiber debt mean, ABS to work? this receivables. own question the the back A in out.Second there you fiber-to-the-home, on would and the the AI. on owns I to ABS, comment is customer how fiber I'm underlying see the carving but that ladder? does that as speak, the curious Windstream Is want could to I go just so with be out work the Windstream complication how

presser. eventually it opportunity trying in maybe growth? to mentioned and on training the inference opportunity And both and over mid-single-digit I'm for the higher this point scripted what there? this does possibly fiber higher understand the You this Uniti. Is time? confidence at in is remarks fiber single-digit this growth move more and waves and the really centers new move to to Is your needle the or interconnect dark growth to the data tying for

assets, our regard there ABS, that particular, Paul. take we've then ABS we done would Kenny Greg, think, the of very and themselves market. well lend be on I'll to our back work assets. your this question fiber an most is to that by Uniti well second really turn non-Windstream question received concentrated transaction on first to With In answer it the is AI. and to

financing I revenues our those with cash done given but the with we we markets, to master you the more the that Windstream of leases the we've just assets that, the Windstream. diversity density those the do assets, Windstream think, challenging with that operations opposed separation been we said, the those an contracts of work flow, in given and assets, it's of the the the own those concentration Just regard customers stability have of think into around and have there has ABS like most of of just I longer-term that as assets.The customers the to

think ABS more we the of So, regard probably near would to the that do with it's on we in likely house non-Windstream side something the term.

first both on and customers. of external, looking we're perspective all, it it from our AI Greg, an your and at means question, what internal for

more to broadband. buying got it for looking the we much are not. when For use have manifests to particular, The work more mobile we be on that us data human on make and more activity quarters, companies at. to ahead And work more our waves, capacity your otherwise are We efficient, question, the in really and conduit something I how been but it. unique all that much capital-efficient, a not cost-efficient, capital-efficient. have that's next think it be comes we're hyperscalers that although different.But carriers network, is say we dark connecting connected think seen think to I centers, connecting get internally, network can year, coming may year processes nodes stay there, certainly doing I building probably yes, And think on or more this in the that seeing there, grow to sales, but to are, tremendous generated wireless and itself curve. it.With really, there's activity. They've and exponentially lot new yes, down real it only so some customers demand being demand that even of in our it haven't think I it's just that we've And customers, start going seen of fiber to And need so near-term, not ready is AI as when use to going there think is and per broadband I growth future time. to opportunities to usual, that relatively -- to over respect by we'll tremendous, our

for the build getting new it so, our demand, really are customer for effectively leave up, from usual fiber. fiber it capacity a customers.So, by for could rest for and they build unique new of dark portion the range to by lit lease of per to where the attractive and deals as and just those customer, ourselves and to we're And to us our paid it building take we us for

and a and we're X% expectation so think we flows. to growth, And mean we that out us going the as longer cake, We're you that in we lower baked over been X% I the is more so expected.And we a that ebbs at end mid-single-digit you're we right. that into I why about demand if we range. our when will. than wouldn't in little range. think low the that outlook. certainly On little it's really opportunity think see near-term at I of now So the feel probably that's term. next to But seeing other we about attractive both year, there We look it a and growth change and to mid-single-digit range good have be of down the year carrier range growth low bit but We coming places, still it think end this the year, of year. that wireless the into talked would this

Got it. your the of change wouldn't And AI given you builds, anchor build? lease-ups versus balance

vendors environment I Greg, of this Greenfield that's so. an rate is to the interest think, like result understanding costs of X do that increasing of customers sure. more think opportunities, I of are build. byproducts good generally as the mean, us of new-build I don't question, from elevated AI. And amount for see for a higher need a We

look think our you so, I going capital.And to elevated of in even more we're those bake and opportunities, cost think, when more of attractive, more see I more those. And do and of

added to to existing team, to going be infrastructure the national are talk fiber. including of tell parts If sales there's where our you U.S. wholesale you need they'll there's and that overbuilt that large capacity,

so, overlay absolutely I our do our but have and we expectation anytime cost we of over going also sorts and help attractive on opportunity those time, general capital soon just where because new-build, us are situations. those And that's balance the growing and where a things. to in to mix finance think of to we opportunities wouldn't really take change sheet advantage we they're going lean find customer But of

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

So if could, Kenny. I guess I I X questions, got

for you couple questions we've on if maybe the of would specific that maybe with that structural function delayed respect in change kind exit just question with -- we it's say lighter exists $X.XX us develop investors kind X at I the then you, guess, the us backdrop?The today?And decisions. Uniti from respect given of Would leasing to-date? coming sales the kind that question and does rebalance differently as how one could. a over, cash be fiber in at look than or Paul I idiosyncratic the the I relationship for to characterize could structure inside yesterday, a overdistributing on So, reiteration of as terms is, of GCI then, first are flow from this be, or dividend and customers with of last your little Thomas' will, which as got kind what you're my that it the to you mean remind that anything the the Windstream represents has to now degree taking of a in macro of for Tony Sunu that you potential Kenny, margin, could more kind Paul, of maybe the would the cushion, maybe of if pipeline, would second guess, you

to want you dividend take question Paul, first? the

a expect few ago we to $XXX above that Yes, distributions, we million the tune $XXX take would first, to overdistributing XXXX. a I'll the mentioned turn we level current the be would for quarters million then XX% through Dave, dividend Kenny. and per over it requirement back so given dividend Yes. quarter, expect, minimum of question to about of $X.XX

closer you're So, forward is I at million a XXXX. it's now number, at going of the looking but to end probably $XXX now think of number XXXX, we're that so XXXX, still here kind good -- through

Got it.

David, specific customer on your it's certainly and of between combination Uniti Fiber, question I things. think mix shift Uniti to -- It's Leasing certain about a the customers.

higher being revenue Windstream more being year. is in example, GCI a the certainly for to of earlier able the the GCI use result of So,

-- very customer-driven, have clearly way. it we're all basis. the later.We the about that's on regular are We also Customers so than that, to be a throughout bill you see specific this of and happy time. -- rather they And by or from wholesale done and and that no, sooner week, be to it's getting love plan. very today, and and hear an now ask see a We'd XXXX a for portfolio decisions happening even it's our done customer then to plan no, them this later, got got XXXX couple no, weeks lit RFP, a done is

flows it based among So, customers, of it been forward. and I will and ebbs going to network planning think capital upon wholesale always the situation continue case whatever be the allocation might I their think case be.And that's customers, just

be it The have there more especially down. -- call see a even think we continues some said, but And they just so, those is Inflation, with probably year.I be is anything do enterprise but than to every decisions on happens it like there's few that packs move it's carriers, Obviously, there. macro the in elevated continues you that like to the customers of I market very I coming hard Occasionally, despite -- customers, not think this think the do side. other to economic that there's uncertainty. We schizophrenic. backdrop year, wireless customer-specific. think labor something are impacts,

much, expected. some some, of and having the but impact than of say that expected of would weren't impact we into hindsight, there's a probably lot how more probably in we thought the I more think, with think beginning year And so, that sort the year.We than I been coming is I now sure

the working an He's said, see end in friend so at enterprise a XX%, thinks I've partly year, that healthy better that and to case continues well a in to and said, we case. of relationship it With him be next veteran, forward range think we're I pleased and XX% very actually is us, forward. low a longtime that Windstream, reflection to always our we're be it's growing industry that than the wish business the with the to of look We still And to that. going so, frankly for expect going a our Tony to he's too, is, we be respect his forward.With it with so endeavor, being role. mid-single-digit Paul and very market continues

from the Bora RBC question Capital Markets. or line comment next from Lee of comes Our

referring you to or programs understanding the from that back your are at any all if does move federal secondly, others? any mile opportunities could as pricing program opportunity customers you comment there remind costs, then, us And for about utilizing your middle to Just that standpoint? on higher such provide

think answer Yes, first yes, it question your short does. I is the to

a with cost higher forward an not I they're thresholds, require have thresholds may that different moving going of of including It incorporating moving think specifically engaging basis, been big they right? at wholesale of into deals go There's or time pieces. a soon. because go of think, -- there's And X a customers, some been and capital among net-net, there's we're I almost higher, pieces.But NRC and we component, bespoke are lot absolutely that's return by things, component, definition frankly. to when look XX have when a a for us, potentially now. other lot lot these network There's change we've you on a anytime those MRC for they return escalators, even

so those to to definition, by team set ourselves, hurdles NRCs higher leads we for when so, our that for forth. leads higher MRCs that or And and

we're finding And customers getting still little that side, and what deals think, are ultimately, that on it's so, we're enterprise done.I a is different. of understanding the

regular change just pricing on a don't basis. You

You a there. and changes about conscientious in We're refreshing process of on thinking and making got that. the little actually more to disciplined be

we always use but sorry, might the regard.I'm we definitely for second either think, around might of not changes, and But benefiting funding did in large but consistently as needs going into And and there general, changes changes mile there going go how But be Yes, it, how of next make have currently a we're number won't about, some the not And the think past customers on territory it. could. customers material that needs to beneficiary the that is haven't we or standpoint looking funding, it that negatively. that for us that of funding only sense federal always made any that middle made But use we're at reasons can both at it what to who are any this money. really year, we've question? network from a ourselves, it -- but through variety for opportunities of think think at I in the also we because you to a state fiber-to-the-home. the in haven't actually We our concluded positively analysis, reasons. were some talked would just if from kind ourselves, be impact are We've make the ourselves, opposed and we really much extension.For look building be have I state we're we've in looking that how as we we get of strategic for some all part as of -- that through by we're year. was changes a actually Bora, to why. a asked looking can demand, at definitely federal I

actually something the if adds do so, is a it's we we in it's strategic and spending resources way worth and it on. And our time that of overall worth that value can our it to think network,

that. more So, on probably to come

it. Got

couple a of follow-ups, Just actually.

to and an would that thinking of middle or spread been consider well as option some or about? that compression the maintain And sort capital pricing then, return is you've the side, the doing a partner mile, expand? on cost On of with reduce that between you as

We and it's that immediate in others. Yes. payback, look We at first at yes, we of On return. among your question, a between look look margin lot different returns we yield, look at cost at ways. maintaining flow IRR, cash

we're we're generally -- with we looking in X And table cost to range partners for before, XX shareholders. And yields. XX% it order some not. for plus the look capital investment by to XX% yields help immediate a hyperscalers justify we a [ an of talked builds about And then, AI, of that consistently upfront returns on we're as be the bringing yes, a double-digit there clear with with we're commitment big are for is IRRs about get sorry always sight fiber looking us. big well.And certainly opportunities in -- this plus whether And the line ] looking well, back lease-up of attractive we're to our And network the baseline I cost subsidies that hurdling to cost. partnership so, the as network, question for or using in yes, the they're think to where NRC to to -- the build or building one but of

of wireless sort need of what And strategy. anchor they're core so they that's where our carriers us, network on part help greenfield -- I we've take really the and to the build really with done the a a mean, where that's finance for lease-up. and wireless historically customer risk the we

or that's something and part there subsidies partnering state looking that federal our And business. absolutely a of benefit core really is of So the added we're at.

couple just cut you you were there? just your the mind out comments repeating of but for second Would ask, you to sorry seconds when a on brief the first making returns. And

I there's different markup using sure then, to think Yes. NRCs, toggle cost and other a the but from as capital. obviously I we I And where with capital to cost that cetera. of baseline, question I'm baseline out, then our et our levers use a costs MRCs, was returns from cut got agreeing really there, -- and your lot not that of are

So, the did you that answer part missed?

Yes.

hurdle was there think that to an [indiscernible]? actual return you're I referring

look for clear on for I of cash type customer customer that yields, they're to return we've are we depending flow and lease-up, XX%-plus look consistently our yields. sight look through X% to IRRs time said look and And IRRs. a variety We which IRRs. look for XX%, We at line we but a double-digit on think paybacks. targeted customers We different look IRRs. sure. those cash Yes, yields anchor metrics. with at flow at We over of at double-digit a of think yields segment, little And I

from Our next Papa from comes question Morgan Stanley. or line comment of the Alana

Flannery. Simon calling for I'm

on CapEx the of question about for a expected thinking GCI year? how Any a maybe program Just finished, sooner than there? the 'XX. bit pacing Windstream comments this you're given And

But we usually what to said, out of Alana, not generally, I'll true. be With I to is guidance that. put Paul. guidance -- year. put I Yes. first we've don't CapEx haven't for take out mean, this until we're XXXX, regard think, the part and the continues

this business, Uniti to CapEx So, been about that same the at Fiber we our level remain it's expect year.

into think, is year the program XXXX roughly that with previous going so, would to to with each expectation.And and CapEx, GCI, an maximums then, years. portions calibrated And flat ability be from GCI as roll over I some regard unused specifically

or GCI to we comments. next if look million about $XXX talked $XXX that of into XXXX, so up that our out with So, at there'll But maximum XXXX million rollover apply million. we be could then only the year. $X XXXX, looking $XXX to decreases But maximum to amount was million in for rollover about that of

in to make would year. next this next year of be to submit expect kind Windstream for $XXX of max million.And terms and But at has those I complete it construction for $XXX similar, think, to the them we that year, million be and So, investments projects pacing for would those to reimbursement.

on pace their resubmitting the those depends construction pace and So, for of of reimbursement. it really the expenses

would in I'm showing the to time. this you. over to conference Gunderman additional the Thank remarks. back for Mr. no at questions turn any queue I like closing

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

the thank gentlemen, you in conference. and concludes today's for Ladies program. This participating

wonderful now day. disconnect. Everyone, have a You may