10-Q 1 unit-10q_20170930.htm 10-Q unit-10q_20170930.htm

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2017

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number: 001-36708

 

 

Uniti Group Inc.

(Exact name of registrant as specified in its charter)

 

 

Maryland

46-5230630

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

 

10802 Executive Center Drive

Benton Building Suite 300

Little Rock, Arkansas

72211

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (501) 850-0820

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No    

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes        No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  (Do not check if a smaller reporting company)

  

Smaller reporting company

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  

As of October 27, 2017, the registrant had 175,462,901 shares of common stock, $0.0001 par value per share, outstanding.

 

 


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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

        This Quarterly Report on Form 10-Q includes forward-looking statements as defined under U.S. federal securities law. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations, including, but not limited to, statements regarding: our expectations regarding the future growth and demand of the telecommunication industry; future financing plans, business strategies, growth prospects and operating and financial performance; expectations regarding the impact and integration of Hunt Telecommunications, LLC ("Hunt") and Southern Light, LLC ("Southern Light"), including expectations regarding operational synergies with Uniti Towers and Uniti Fiber; expectations regarding settling conversion of our 3% convertible preferred stock in cash upon conversion; expectations regarding the probability of our obligation to pay contingent consideration upon Tower Cloud, Inc.'s ("Tower Cloud") or Hunt's achievement of certain defined operational and financial milestones; expectations regarding future deployment of fiber strand miles and recognition of revenue related thereto; expectations regarding levels of capital expenditures; expectations regarding the deductibility of goodwill for tax purposes; expectations regarding the amortization of intangible assets; and expectations regarding the payment of dividends.

        Words such as "anticipate(s)," "expect(s)," "intend(s)," "plan(s)," "believe(s)," "may," "will," "would," "could," "should," "seek(s)" and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained. Factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to:

 

the ability and willingness of our customers to meet and/or perform their obligations under any contractual arrangements entered into with us, including master lease arrangements; 

 

the ability of our customers to comply with laws, rules and regulations in the operation of the assets we lease to them; 

 

the ability and willingness of our customers to renew their leases with us upon their expiration, and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant; 

 

our ability to renew, extend or retain our contracts or to obtain new contracts with significant customers (including customers of the businesses that we acquire); 

 

the availability of and our ability to identify suitable acquisition opportunities and our ability to acquire and lease the respective properties on favorable terms or operate and integrate the acquired businesses; 

 

our ability to generate sufficient cash flows to service our outstanding indebtedness; 

 

our ability to access debt and equity capital markets; 

 

the impact on our business or the business of our customers as a result of credit rating downgrades, and fluctuating interest rates; 

 

adverse impacts of litigation involving us or our customers;

 

our ability to retain our key management personnel; 

 

our ability to maintain our status as a real estate investment trust (“REIT”);

 

changes in the U.S. tax law and other federal, state or local laws, whether or not specific to REITs; 

 

covenants in our debt agreements that may limit our operational flexibility; 

 

the possibility that we may experience equipment failures, natural disasters, cyber attacks or terrorist attacks for which our insurance may not provide adequate coverage; 

 

the risk that we fail to fully realize the potential benefits of or have difficulty in integrating the companies we acquire; 

 

other risks inherent in the communications industry and in the ownership of communications distribution systems, including potential liability relating to environmental matters and illiquidity of real estate investments; and

 

2


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additional factors discussed in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report on Form 10-Q and in Part I, Item 1A "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2016, as well as those described from time to time in our future reports filed with the U.S. Securities and Exchange Commission (“the SEC”).

Forward-looking statements speak only as of the date of this Quarterly Report. Except in the normal course of our public disclosure obligations, we expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.

 

3


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Uniti Group Inc.

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements (Unaudited)

5

 

Uniti Group Inc.

 

 

Condensed Consolidated Balance Sheets

5

 

Condensed Consolidated Statements of Income

6

 

Condensed Consolidated Statements of Comprehensive Income (Loss)

7

 

Condensed Consolidated Statements of Shareholders’ Deficit

8

 

Condensed Consolidated Statements of Cash Flows

9

 

Notes to Condensed Consolidated Financial Statements

10

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

29

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

43

Item 4.

Controls and Procedures

43

 

 

 

PART II.

OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

44

Item 1A.

Risk Factors

44

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

44

Item 3.

Defaults Upon Senior Securities

44

Item 4.

Mine Safety Disclosures

44

Item 5.

Other Information

44

Item 6.

Exhibits

45

 

 

 

Signatures

46

 

 

 

 

4


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PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Uniti Group Inc.

Condensed Consolidated Balance Sheets

(unaudited)

(Thousands, except par value)

 

September 30, 2017

 

 

December 31, 2016

 

Assets:

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

$

3,037,469

 

 

$

2,670,037

 

Cash and cash equivalents

 

 

49,923

 

 

 

171,754

 

Accounts receivable, net

 

 

32,715

 

 

 

15,281

 

Goodwill

 

 

672,368

 

 

 

262,334

 

Intangible assets, net

 

 

438,019

 

 

 

160,584

 

Straight-line revenue receivable

 

 

42,050

 

 

 

29,088

 

Other assets

 

 

19,666

 

 

 

9,674

 

Total Assets

 

$

4,292,210

 

 

$

3,318,752

 

 

Liabilities, Convertible Preferred Stock and Shareholders' Deficit:

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Accounts payable, accrued expenses and other liabilities

 

$

80,725

 

 

$

40,977

 

Accrued interest payable

 

 

70,205

 

 

 

27,812

 

Deferred revenue

 

 

466,321

 

 

 

261,404

 

Derivative liability

 

 

10,442

 

 

 

6,102

 

Dividends payable

 

 

109,188

 

 

 

94,607

 

Deferred income taxes

 

 

85,145

 

 

 

28,394

 

Capital lease obligations

 

 

56,976

 

 

 

54,535

 

Contingent consideration

 

 

104,117

 

 

 

98,600

 

Notes and other debt, net

 

 

4,361,963

 

 

 

4,028,214

 

      Total liabilities

 

 

5,345,082

 

 

 

4,640,645

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 13)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible preferred stock, Series A, $0.0001 par value, 88 shares authorized, issued and outstanding, $87,500 liquidation value

 

 

82,785

 

 

 

80,552

 

 

 

 

 

 

 

 

 

 

Shareholders' Deficit:

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value, 50,000 shares authorized, no shares issued and outstanding

 

 

-

 

 

 

-

 

Common stock, $0.0001 par value, 500,000 shares authorized, issued and outstanding: 174,821 shares at September 30, 2017 and 155,139 at December 31, 2016

 

 

17

 

 

 

15

 

Additional paid-in capital

 

 

642,981

 

 

 

141,092

 

Accumulated other comprehensive loss

 

 

(5,678

)

 

 

(6,369

)

Distributions in excess of accumulated earnings

 

 

(1,876,599

)

 

 

(1,537,183

)

Total Uniti shareholders' deficit

 

 

(1,239,279

)

 

 

(1,402,445

)

Noncontrolling interests - operating partnership units

 

 

103,622

 

 

 

-

 

      Total shareholders' deficit

 

 

(1,135,657

)

 

 

(1,402,445

)

Total Liabilities, Convertible Preferred Stock, and Shareholders' Deficit

 

$

4,292,210

 

 

$

3,318,752

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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Uniti Group Inc.

Condensed Consolidated Statements of Income

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Thousands, except per share data)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing

 

$

171,673

 

 

$

169,366

 

 

$

512,893

 

 

$

506,945

 

Fiber Infrastructure

 

 

66,363

 

 

 

25,219

 

 

 

136,158

 

 

 

38,995

 

Tower

 

 

2,796

 

 

 

159

 

 

 

6,679

 

 

 

271

 

Consumer CLEC

 

 

4,378

 

 

 

5,496

 

 

 

13,966

 

 

 

17,277

 

Total revenues

 

 

245,210

 

 

 

200,240

 

 

 

669,696

 

 

 

563,488

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

78,784

 

 

 

70,522

 

 

 

227,235

 

 

 

204,607

 

Depreciation and amortization

 

 

113,444

 

 

 

96,723

 

 

 

317,404

 

 

 

275,448

 

General and administrative expense

 

 

22,068

 

 

 

10,191

 

 

 

49,549

 

 

 

23,619

 

Operating expense (exclusive of depreciation and amortization)

 

 

30,172

 

 

 

15,704

 

 

 

74,258

 

 

 

30,322

 

Transaction related costs

 

 

8,512

 

 

 

9,315

 

 

 

32,213

 

 

 

24,435

 

Other (income) expense

 

 

(3,933

)

 

 

-

 

 

 

9,638

 

 

 

-

 

      Total costs and expenses

 

 

249,047

 

 

 

202,455

 

 

 

710,297

 

 

 

558,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

 

(3,837

)

 

 

(2,215

)

 

 

(40,601

)

 

 

5,057

 

Income tax (benefit) expense

 

 

(8,672

)

 

 

128

 

 

 

(8,976

)

 

 

899

 

Net income (loss)

 

 

4,835

 

 

 

(2,343

)

 

 

(31,625

)

 

 

4,158

 

Net income attributable to noncontrolling interests

 

 

107

 

 

 

-

 

 

 

107

 

 

 

-

 

Net income (loss) attributable to shareholders

 

 

4,728

 

 

 

(2,343

)

 

 

(31,732

)

 

 

4,158

 

Participating securities' share in earnings

 

 

(388

)

 

 

(407

)

 

 

(1,156

)

 

 

(1,164

)

Dividends declared on convertible preferred stock

 

 

(656

)

 

 

(649

)

 

 

(1,968

)

 

 

(1,087

)

Amortization of discount on convertible preferred stock

 

 

(745

)

 

 

(745

)

 

 

(2,235

)

 

 

(1,241

)

Net income (loss) attributable to common shareholders

 

$

2,939

 

 

$

(4,144

)

 

$

(37,091

)

 

$

666

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

 

$

(0.03

)

 

$

(0.22

)

 

$

0.00

 

Diluted

 

$

(0.02

)

 

$

(0.03

)

 

$

(0.26

)

 

$

0.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

174,818

 

 

 

153,878

 

 

 

166,624

 

 

 

151,578

 

Diluted

 

 

175,399

 

 

 

153,878

 

 

 

166,816

 

 

 

151,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.60

 

 

$

0.60

 

 

$

1.80

 

 

$

1.80

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

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Uniti Group Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Net income (loss)

 

$

4,835

 

 

$

(2,343

)

 

$

(31,625

)

 

$

4,158

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on derivative contracts

 

 

1,789

 

 

 

(1,870

)

 

 

(4,340

)

 

 

(63,331

)

Changes in foreign currency translation

 

 

76

 

 

 

(101

)

 

 

5,074

 

 

 

(180

)

Other comprehensive income (loss)

 

 

1,865

 

 

 

(1,971

)

 

 

734

 

 

 

(63,511

)

Comprehensive income (loss)

 

 

6,700

 

 

 

(4,314

)

 

 

(30,891

)

 

 

(59,353

)

Comprehensive income attributable to noncontrolling interest

 

 

150

 

 

 

-

 

 

 

150

 

 

 

-

 

Comprehensive income (loss) attributable to common shareholders

 

$

6,550

 

 

$

(4,314

)

 

$

(31,041

)

 

$

(59,353

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.


 

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Uniti Group Inc.

Condensed Consolidated Statements of Shareholders’ Deficit

(unaudited)

(Thousands, except share data)

 

Preferred Stock

 

 

Common Stock

 

 

Additional Paid-in Capital

 

 

Accumulated Other Comprehensive Loss

 

 

Distributions in Excess of Accumulated Earnings

 

 

Noncontrolling Interest

 

 

Total Shareholders' Deficit

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2015

 

 

-

 

 

$

-

 

 

 

149,862,459

 

 

$

15

 

 

$

1,392

 

 

$

(5,427

)

 

$

(1,162,886

)

 

$

-

 

 

$

(1,166,906

)

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,158

 

 

 

-

 

 

 

4,158

 

Issuance of common stock

 

 

-

 

 

 

-

 

 

 

5,077,629

 

 

 

-

 

 

 

137,665

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

137,665

 

Amortization of discount of convertible preferred stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,241

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,241

)

Other comprehensive loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(63,511

)

 

 

-

 

 

 

-

 

 

 

(63,511

)

Common stock dividends

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(276,567

)

 

 

-

 

 

 

(276,567

)

Convertible preferred stock dividends

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,087

)

 

 

-

 

 

 

(1,087

)

Equity issuance cost

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(625

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(625

)

Net share settlement

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(203

)

 

 

-

 

 

 

(1,920

)

 

 

-

 

 

 

(2,123

)

Stock-based compensation

 

 

-

 

 

 

-

 

 

 

183,072

 

 

 

-

 

 

 

3,478

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,478

 

Balance at September 30, 2016

 

 

-

 

 

$

-

 

 

 

155,123,160

 

 

$

15

 

 

$

140,466

 

 

$

(68,938

)

 

$

(1,438,302

)

 

$

-

 

 

$

(1,366,759

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2016

 

 

-

 

 

$

-

 

 

 

155,138,637

 

 

$

15

 

 

$

141,092

 

 

$

(6,369

)

 

$

(1,537,183

)

 

$

-

 

 

$

(1,402,445

)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(31,732

)

 

 

107

 

 

 

(31,625

)

Issuance of common stock

 

 

-

 

 

 

-

 

 

 

19,528,302

 

 

 

2

 

 

 

517,499

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

517,501

 

Amortization of discount on convertible preferred stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,235

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,235

)

Other comprehensive income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

691

 

 

 

-

 

 

 

43

 

 

 

734

 

Common stock dividends

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(304,384

)

 

 

(2,497

)

 

 

(306,881

)

Convertible preferred stock dividends

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,969

)

 

 

-

 

 

 

(1,969

)

Equity issuance cost

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(18,575

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(18,575

)

Contributions from noncontrolling interest holders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

105,969

 

 

 

105,969

 

Net share settlement

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(421

)

 

 

-

 

 

 

(1,331

)

 

 

-

 

 

 

(1,752

)

Stock-based compensation

 

 

-

 

 

 

-

 

 

 

154,100

 

 

 

-

 

 

 

5,621

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,621

 

Balance at September 30, 2017

 

 

-

 

 

$

-

 

 

 

174,821,039

 

 

$

17

 

 

$

642,981

 

 

$

(5,678

)

 

$

(1,876,599

)

 

$

103,622

 

 

$

(1,135,657

)

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

8


Table of Contents

 

Uniti Group Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

 

 

 

Nine Months Ended September 30,

 

(Thousands)

 

2017

 

 

2016

 

Cash flow from operating activities

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(31,625

)

 

$

4,158

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

317,404

 

 

 

275,448

 

Amortization of deferred financing costs

 

 

7,964

 

 

 

5,640

 

Amortization of debt discount

 

 

9,127

 

 

 

5,964

 

Deferred income taxes

 

 

(12,281

)

 

 

836

 

Straight-line revenues

 

 

(10,857

)

 

 

(13,174

)

Stock-based compensation

 

 

5,621

 

 

 

3,478

 

Change in fair value of contingent consideration

 

 

9,091

 

 

 

-

 

Other

 

 

810

 

 

 

22

 

Changes in assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

532

 

 

 

(4,435

)

Other assets

 

 

(4,307

)

 

 

(4,951

)

Accounts payable, accrued expenses and other liabilities

 

 

46,275

 

 

 

27,565

 

Net cash provided by operating activities

 

 

337,754

 

 

 

300,551

 

Cash flow from investing activities

 

 

 

 

 

 

 

 

Acquisition of businesses, net of cash acquired

 

 

(763,665

)

 

 

(489,538

)

Acquisition of ground lease investments

 

 

(13,869

)

 

 

(8,549

)

NMS asset acquisitions (Note 3)

 

 

(68,557

)

 

 

-

 

Capital expenditures - other

 

 

(111,101

)

 

 

(10,655

)

Net cash used in investing activities

 

 

(957,192

)

 

 

(508,742

)

Cash flow from financing activities

 

 

 

 

 

 

 

 

Principal payments on debt

 

 

(15,810

)

 

 

(16,744

)

Dividends paid

 

 

(294,272

)

 

 

(273,692

)

Payments of contingent consideration

 

 

(19,999

)

 

 

-

 

Proceeds from issuance of Notes

 

 

201,000

 

 

 

148,875

 

Borrowings under revolving credit facility

 

 

360,000

 

 

 

521,000

 

Payments under revolving credit facility

 

 

(200,000

)

 

 

(321,000

)

Capital lease payments

 

 

(2,348

)

 

 

(945

)

Deferred financing costs

 

 

(28,533

)

 

 

(2,946

)

Common stock issuance, net of costs

 

 

498,924

 

 

 

54,211

 

Net share settlement

 

 

(1,752

)

 

 

(2,123

)

Net cash provided by financing activities

 

 

497,210

 

 

 

106,636

 

Effect of exchange rates on cash and cash equivalents

 

 

397

 

 

 

(181

)

Net decrease in cash and cash equivalents

 

 

(121,831

)

 

 

(101,736

)

Cash and cash equivalents at beginning of period

 

 

171,754