Uniti Group Inc. Shares Impressive Financial Results for 2024
Uniti Group Inc. Reports Fourth Quarter and Full Year 2024 Results
Recently Completed Landmark ABS Financing Provides Attractive Alternative Source of Capital While Further Strengthening Uniti’s Balance Sheet
Provides Initial 2025 Outlook
Net Income Highlights
- Net Income of $21.6 Million and $93.4 Million for the Fourth Quarter and Full Year, Respectively
- Net Income of $0.09 and $0.38 Per Diluted Common Share for the Fourth Quarter and Full Year, Respectively
- AFFO of $0.35 and $1.35 Per Diluted Common Share for the Fourth Quarter and Full Year, Respectively
Uniti Group Inc. (“Uniti” or the “Company”) (NASDAQ: UNIT) has announced its results for the fourth quarter and full year of 2024. President and Chief Executive Officer, Kenny Gunderman, emphasized that 2024 has been a transformational year for the company. He noted the announcement of an upcoming merger with Windstream, substantial growth across various business segments, and efforts to enhance the balance sheet.
During 2024, Uniti's core recurring strategic fiber revenue experienced an approximate growth of 5% compared to 2023. Additionally, consolidated bookings surged by 40% in the fourth quarter when compared to the same period last year. Significant progress has been made to decrease the capital intensity of the fiber business, which positions Uniti strategically to leverage trends associated with Generative AI and convergence, driving higher demand for essential fiber infrastructure.
“We are diligently working on enhancing and strengthening our capital structure in preparation for the Windstream merger. The recent completion of our inaugural ABS transaction has provided a viable capital source, and we've used part of these proceeds to address some of our high-interest debt. Moreover, we've effectively managed to extend a meaningful portion of the combined company’s upcoming debt maturities, particularly those due in 2028,” stated Mr. Gunderman. “We remain on track to complete our merger transaction by the latter half of 2025.”
Quarterly Results Overview
The consolidated revenues for the fourth quarter of 2024 reached $293.3 million, with net income and Adjusted EBITDA reported at $21.6 million and $239.5 million, respectively. This resulted in an Adjusted EBITDA margin of approximately 82%. The net income attributable to common shares for the quarter stood at $21.0 million, and the AFFO attributable to common shareholders was $92.0 million, translating to $0.35 per diluted common share.
Within these results, Uniti Fiber contributed $71.7 million in revenues and $31.1 million in Adjusted EBITDA with margins of approximately 43%. Meanwhile, Uniti Leasing generated revenues amounting to $221.7 million alongside an Adjusted EBITDA of $214.5 million in the same quarter.
The combined gross capital expenditures for both Uniti Fiber and Uniti Leasing were $24.3 million during Q4 2024, matched by upfront customer payments reaching $23.6 million, resulting in a net success-based capex of $0.7 million.
Full Year Performance
For the full year ending December 31, 2024, Uniti reported consolidated revenues of $1.2 billion, with net income and Adjusted EBITDA at $93.4 million and $940.1 million, respectively. The net income attributable to common shares totaled $91.3 million, with AFFO attributable to shareholders reported at $358.9 million, or $1.35 per diluted common share.
Uniti Fiber generated $286.4 million in revenues and provided $111.6 million in Adjusted EBITDA for the full year with margins of approximately 39%. The net success-based capital expenditures for Uniti Fiber stood at $69.3 million, illustrating a capital intensity of 24%. Additionally, Uniti Leasing generated revenues of $880.5 million and Adjusted EBITDA of $851.2 million with a total of $242.8 million planned for capital expenditures, including $230.8 million allocated to growth capital expenditures.
Financing Developments
Uniti announced its inaugural $589 million fiber securitization notes offering on February 3, 2025. These Series 2025-1 Term Notes have a weighted average yield of approximately 6.5%, secured by specific fiber network assets and related customer contracts primarily in key regions. Uniti utilized part of the net proceeds for debt repayments and to eliminate a $125 million aggregate principal amount of high-interest senior secured notes due in 2028.
Liquidity Position and Financial Outlook
By the end of the year, Uniti had approximately $655.6 million in unrestricted cash and access to undrawn funds under its revolving credit agreement. The company’s leverage ratio was reported at 5.80x, based on net debt to annualized Adjusted EBITDA for the fourth quarter of 2024, excluding certain debts and net contributions from the ABS facilities.
Looking ahead to 2025, Uniti projects a consolidated revenue range of $1.196 billion to $1.216 billion, with net income attributable to common shareholders estimated at $95 million to $115 million. A revenue impact from the recently completed ABS financing and other planned financial maneuvers is included in these projections, although the outlook does not factor in the anticipated Windstream merger or other potential acquisition costs.
About Uniti
Uniti is a prominent real estate investment trust specializing in the acquisition and construction of crucial communication infrastructure. The company stands as a leading provider of fiber and wireless solutions within the communications sector. With ownership of roughly 145,000 fiber route miles, combined with 8.8 million fiber strand miles and other communications real estate throughout the United States, Uniti continues to ensure robust infrastructure for its clients.
Frequently Asked Questions
What were the financial highlights for Uniti Group in 2024?
Uniti reported a net income of $93.4 million for the full year and achieved a total revenue of $1.2 billion.
How did the merger with Windstream impact Uniti's financials?
The merger is projected to strengthen Uniti's balance sheet and provide further growth opportunities across various segments.
What are the projected financial outcomes for Uniti in 2025?
Uniti expects consolidated revenues between $1.196 billion to $1.216 billion and net income attributable to common shareholders ranging from $95 million to $115 million.
How has Uniti's infrastructure improved in 2024?
The company completed a landmark ABS financing transaction that enhances its capital structure and helps reduce high-interest debt.
What is Uniti's core focus as a company?
Uniti focuses on building and acquiring critical communication infrastructure, primarily providing fiber and wireless solutions to the market.
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