EX-99.1 2 tm2525076d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

UNITI GROUP INC.

QUARTERLY SUPPLEMENTAL UNAUDITED PRO FORMA COMBINED INFORMATION - BUSINESS SEGMENTS  

for the quarterly periods in the years 2025 and 2024

(In millions)

 

   2025   2024 
   Total   2nd Qtr.   1st Qtr.   Total   4th Qtr.   3rd Qtr.   2nd Qtr.   1st Qtr. 
Kinetic                                
Revenues and sales:                                        
Fiber subscriber (A)  $240.9   $126.0   $114.9   $408.0   $110.1   $102.6   $99.5   $95.8 
DSL subscriber and other   369.4    181.2    188.2    833.6    193.2    201.0    214.5    224.9 
Consumer   610.3    307.2    303.1    1,241.6    303.3    303.6    314.0    320.7 
Business service   209.7    103.1    106.6    456.1    106.7    112.3    116.5    120.6 
Wholesale   195.9    92.9    103.0    436.1    99.5    106.3    109.6    120.7 
RDOF funding   26.2    13.1    13.1    52.4    13.1    13.1    13.1    13.1 
State USF   28.6    14.1    14.5    58.1    14.1    14.4    14.7    14.9 
Switched access   6.7    3.5    3.2    15.3    3.7    3.3    4.0    4.3 
End user surcharges   30.5    15.1    15.4    64.9    15.3    16.0    16.1    17.5 
Intersegment revenues (B)   26.1    12.7    13.4    59.5    13.8    14.5    15.3    15.9 
Service revenues   1,134.0    561.7    572.3    2,384.0    569.5    583.5    603.3    627.7 
Sales revenues   24.2    14.6    9.6    28.7    6.5    6.7    7.9    7.6 
Total revenues and sales   1,158.2    576.3    581.9    2,412.7    576.0    590.2    611.2    635.3 
Costs and expenses   566.4    277.1    289.3    1,222.7    300.5    303.2    304.6    314.4 
Intersegment costs and expenses (C)   70.3    35.1    35.2    140.6    35.2    35.2    35.1    35.1 
Total costs and expenses   636.7    312.2    324.5    1,363.3    335.7    338.4    339.7    349.5 
Kinetic Adjusted EBITDA  $521.5   $264.1   $257.4   $1,049.4   $240.3   $251.8   $271.5   $285.8 
Kinetic Adjusted EBITDA %   45.0%   45.8%   44.2%   43.5%   41.7%   42.7%   44.4%   45.0%
                                         
Uniti Solutions                                        
Revenues and sales:                                        
Managed Services (D)  $406.3   $196.2   $210.1   $882.1   $206.9   $217.8   $218.4   $239.0 
TDM (E)   33.2    12.6    20.6    102.1    18.9    22.4    28.2    32.6 
End user surcharges   17.0    8.2    8.8    41.1    9.2    9.9    10.3    11.7 
Intersegment revenues (F)   2.5    1.2    1.3    4.9    1.3    1.2    1.2    1.2 
Service revenues   459.0    218.2    240.8    1,030.2    236.3    251.3    258.1    284.5 
Sales revenues   0.7    0.5    0.2    1.3    0.2    0.4    0.4    0.3 
Total revenues and sales   459.7    218.7    241.0    1,031.5    236.5    251.7    258.5    284.8 
Costs and expenses   196.1    94.2    101.9    479.1    110.2    114.5    123.7    130.7 
Intersegment costs and expenses (C)   26.4    12.8    13.6    60.6    14.1    14.7    15.6    16.2 
Total costs and expenses   222.5    107.0    115.5    539.7    124.3    129.2    139.3    146.9 
Uniti Solutions Adjusted EBITDA  $237.2   $111.7   $125.5   $491.8   $112.2   $122.5   $119.2   $137.9 
Uniti Solutions Adjusted EBITDA %   51.6%   51.1%   52.1%   47.7%   47.4%   48.7%   46.1%   48.4%
                                         
Uniti Solutions Adjusted EBITDA (excluding TDM)  $212.3   $102.3   $110.0   $421.8   $99.2   $107.1   $99.5   $116.0 
Uniti Solutions Adjusted EBITDA % (excluding TDM)   49.8%   49.6%   49.9%   45.4%   45.6%   46.7%   43.2%   46.0%
                                         
Fiber Infrastructure                                        
Revenues and sales:                                        
Uniti Wholesale  $190.8   $96.3   $94.5   $349.8   $84.7   $93.2   $80.0   $91.9 
Uniti Fiber   145.8    74.3    71.5    286.4    71.6    69.3    76.7    68.8 
Intersegment revenues (G)   72.5    36.2    36.3    145.2    36.3    36.3    36.3    36.3 
Service revenues   409.1    206.8    202.3    781.4    192.6    198.8    193.0    197.0 
Sales revenues   9.8    6.7    3.1    45.0    8.0    11.0    7.2    18.8 
Total revenues and sales   418.9    213.5    205.4    826.4    200.6    209.8    200.2    215.8 
Costs and expenses   232.7    118.5    114.2    496.9    118.9    125.3    123.6    129.1 
Intersegment costs and expenses (C)   4.4    2.2    2.2    8.4    2.1    2.1    2.1    2.1 
Total costs and expenses   237.1    120.7    116.4    505.3    121.0    127.4    125.7    131.2 
Fiber Infrastructure Adjusted EBITDA  $181.8   $92.8   $89.0   $321.1   $79.6   $82.4   $74.5   $84.6 
Fiber Infrastructure Adjusted EBITDA %   43.4%   43.5%   43.3%   38.9%   39.7%   39.3%   37.2%   39.2%

 

(A)Fiber subscriber consumer revenues consist of recurring products and services for Next Gen consumer broadband customers, which includes some cable customers with 1Gbps service. All non-recurring revenues are included in DSL subscriber and other revenues.
(B)Consists of intercompany charges to Uniti Solutions and Fiber Infrastructure primarily for resale access services.
(C)Reflects the offsetting expense effects of the intercompany billing agreements between segments.
(D)Uniti solutions revenues consist of software solutions and network connectivity products. Software solutions include Secure Access Service Edge ("SASE"), Unified Communications as a Service ("UCaaS"), OfficeSuite UC©, and associated network access products and services. SASE includes both Software Defined Wide Area Network (“SD-WAN”) and Security Service Edge (“SSE”). Network Connectivity revenues consist of dynamic Internet protocol, dedicated Internet access, multi-protocol label switching services, integrated voice and data, long distance and managed services.
(E)TDM revenues consist of time-division multiplexing ("TDM") voice and data services.
(F)Consists of intercompany charges to Kinetic for licensing fees related to the usage of the OfficeSuite UC© product.
(G)Consists of intercompany charges to Kinetic and Uniti Solutions primarily for usage of network and collocation facilities owned or operated by Fiber Infrastructure.

 

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UNITI GROUP INC.

QUARTERLY SUPPLEMENTAL UNAUDITED PRO FORMA COMBINED INFORMATION - BUSINESS SEGMENTS

for the quarterly periods in the years 2025 and 2024

(In millions)

 

   2025   2024 
   Total   2nd Qtr.   1st Qtr.   Total   4th Qtr.   3rd Qtr.   2nd Qtr.   1st Qtr. 
Total segment revenues and expenses                                        
Revenues and sales:                                        
Service revenues  $2,002.1   $986.7   $1,015.4   $4,195.6   $998.4   $1,033.6   $1,054.4   $1,109.2 
Sales revenues   34.7    21.8    12.9    75.0    14.7    18.1    15.5    26.7 
Total segment revenues and sales   2,036.8    1,008.5    1,028.3    4,270.6    1,013.1    1,051.7    1,069.9    1,135.9 
Total segment costs and expenses   1,096.3    539.9    556.4    2,408.3    581.0    595.0    604.7    627.6 
Segment Adjusted EBITDA  $940.5   $468.6   $471.9   $1,862.3   $432.1   $456.7   $465.2   $508.3 
Segment Adjusted EBITDA %   46.2%   46.5%   45.9%   43.6%   42.7%   43.4%   43.5%   44.7%
                                         
Intersegment eliminations                                        
Service revenues  $101.1   $50.1   $51.0   $209.6   $51.4   $52.0   $52.8   $53.4 
Cost and expenses   101.1    50.1    51.0    209.6    51.4    52.0    52.8    53.4 
Direct margin  $-   $-   $-   $-   $-   $-   $-   $- 
                                         
Consolidated revenues and sales                                        
Service revenues  $1,901.0   $936.6   $964.4   $3,986.0   $947.0   $981.6   $1,001.6   $1,055.8 
Sales revenues   34.7    21.8    12.9    75.0    14.7    18.1    15.5    26.7 
Consolidated revenues and sales  $1,935.7   $958.4   $977.3   $4,061.0   $961.7   $999.7   $1,017.1   $1,082.5 
                                         
Consolidated costs and expenses                                        
Segment costs and expenses  $995.2   $489.8   $505.4   $2,198.7   $529.6   $543.0   $551.9   $574.2 
Corporate expenses (H)   140.3    71.3    69.0    285.0    69.9    68.4    70.1    76.6 
Consolidated costs and expenses  $1,135.5   $561.1   $574.4   $2,483.7   $599.5   $611.4   $622.0   $650.8 
                                         
Adjusted Consolidated EBITDA  $800.2   $397.3   $402.9   $1,577.3   $362.2   $388.3   $395.1   $431.7 
Adjusted Consolidated EBITDA margin   41.3%   41.5%   41.2%   38.8%   37.7%   38.8%   38.8%   39.9%
                                         
Adjusted Consolidated EBITDA  $800.2   $397.3   $402.9   $1,577.3   $362.2   $388.3   $395.1   $431.7 
Depreciation and amortization   (485.7)   (241.1)   (244.6)   (1,023.5)   (245.7)   (260.2)   (255.5)   (262.1)
Interest expense, net   (410.7)   (218.3)   (192.4)   (741.4)   (207.3)   (183.7)   (178.5)   (171.9)
Transaction related costs   (49.4)   (20.9)   (28.5)   (91.3)   (11.6)   (29.7)   (27.9)   (22.1)
Stock-based compensation   (8.3)   (3.8)   (4.5)   (18.3)   (4.1)   (4.5)   (4.9)   (4.8)
Other, net   23.8    (1.2)   25.0    82.7    (27.3)   (5.9)   (4.3)   120.2 
Income tax benefit (expense)   14.2    11.9    2.3    37.5    10.3    26.0    16.3    (15.1)
Net (loss) income  $(115.9)  $(76.1)  $(39.8)  $(177.0)  $(123.5)  $(69.7)  $(59.7)  $75.9 

 

(H)Corporate expenses are not allocated to the segments and primarily consist of information technology, accounting and finance, legal, and other corporate management activities that are centrally managed and are not monitored by management at a segment level.

 

Note:Uniti Group Inc. ("Uniti", "we", "us", "our") has presented above unaudited pro forma combined results, which includes the results of operations of New Windstream LLC ("Windstream") as if the merger with Uniti had been completed as of January 1, 2024. The unaudited pro forma combined results are based upon the combined historical financial information of Uniti and Windstream for all periods presented, and exclude the effects of intercompany transactions that existed between the companies prior to the merger. We have made certain reclassifications to the historical business segment financial information of Uniti to conform to the current presentation. The pro forma financial information presented above has not been prepared in accordance with Regulation S-X, and actual pro forma information prepared in accordance with Regulation S-X may differ materially from the information presented herein. The unaudited pro forma combined results are presented for informational purposes only and are not intended to represent nor necessarily be indicative of what the combined company’s results of operations would have been had the merger been completed on January 1, 2024. The unaudited pro forma combined results adjusted results do not reflect any incremental costs incurred in integrating the two companies or any cost savings from operating efficiencies, synergies or other restructurings that could result from the merger. See “Safe Harbor Statement" within the Second Quarter 2025 Financial Results Conference Call Presentation, to which this supplement relates, for additional factors that could affect future results.

 

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