Uniti Reports $1.1B Revenue in 2023

Uniti Group Inc. has reported its fourth-quarter and full-year 2023 results, showing a net loss of $81.7 million for the year and a net income of $30.7 million for the fourth quarter. The company's adjusted EBITDA for the year was $923.5 million, with a revenue of $1.1 billion for the full year.

Uniti Fiber contributed $297.1 million in revenues and $115.7 million in adjusted EBITDA for the full year of 2023, achieving adjusted EBITDA margins of approximately 39%. The net success-based capital expenditures for Uniti Fiber for the full year were $118.3 million.

Uniti Leasing contributed revenues of $852.8 million and adjusted EBITDA of $829.6 million for the full year of 2023, deploying capital expenditures of $277.2 million.

In the fourth quarter of 2023, Uniti reported consolidated revenues of $285.7 million, with net income and adjusted EBITDA of $30.7 million and $231.1 million, respectively. The net success-based capital expenditures for Uniti Fiber during the quarter were $20.7 million.

In terms of financing transactions, Uniti recently entered into an asset-backed bridge loan and security agreement for up to $350 million of borrowings. Additionally, the company completed multiple asset sales, including the sale of its remaining investment interest in the fiber network operated by Bluebird Network LLC and the sale of its remaining wireless towers to CTI Towers, Inc., among others, for approximately $87 million in total cash considerations.

As of year-end, the company had approximately $354.3 million of unrestricted cash and cash equivalents, with an undrawn borrowing availability under its revolving credit agreement. The company's leverage ratio at year-end was 6.03x based on net debt to the fourth quarter 2023 annualized adjusted EBITDA.

Looking ahead to 2024, Uniti provided its consolidated outlook for the year. The company expects revenue to be in the range of $1,154 to $1,174 million, with an adjusted EBITDA of $930 to $950 million. The outlook also includes an estimated impact from the recent ABS facility, the planned exit of most one-time equipment sales, recently completed asset sales, and the upcoming maturity of the remaining 4.00% exchangeable notes due June 2024.

The company's board of directors declared a quarterly cash dividend of $0.15 per common share, payable on April 12, 2024, to stockholders of record on March 28, 2024.

The market has reacted to these announcements by moving the company's shares -0.3% to a price of $5.72. For more information, read the company's full 8-K submission here.

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