Segment Information

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

Our management, including our chief executive officer, who is our chief operating decision maker, manages our operations as two reportable segments, in addition to our corporate operations, which include:

Uniti Leasing: Represents the operations of our leasing business which is engaged in the acquisition and construction of mission-critical communications assets and leasing them to anchor customers on either an exclusive or shared-tenant basis, in addition to the leasing of dark fiber on our existing dark fiber network assets that we either constructed or acquired. While the Leasing segment represents our REIT operations, certain aspects of the Leasing segment are also operated through taxable REIT subsidiaries.

Uniti Fiber: Represents the operations of our fiber business which is a leading provider of infrastructure solutions, including cell site backhaul and dark fiber, to the telecommunications industry.

Corporate: Represents our corporate office and shared service functions. Certain costs and expenses, primarily related to headcount, information technology systems, insurance, professional fees and similar charges, that are directly attributable to operations of our business segments are allocated to the respective segments.

Management evaluates the performance of each segment using Adjusted EBITDA, which is a segment performance measure we define as net income determined in accordance with GAAP, before interest expense, provision for income taxes, depreciation and amortization, stock-based compensation expense and the impact, which may be recurring in nature, of transaction and integration related costs, costs associated with Windstream’s bankruptcy, costs associated with litigation claims made against us, costs associated with the implementation of our enterprise resource planning system, goodwill impairment charges, severance costs, costs related to the settlement with Windstream, amortization of non-cash rights-of-use assets, the write off of unamortized deferred financing costs, costs incurred as a result of the early repayment of debt, including early tender and redemption premiums and costs associated with the termination of related hedging activities, gains or losses on dispositions, changes in the fair value of contingent consideration and financial instruments, and other similar or infrequent items (although we may not have had such charges in the periods presented). Adjusted EBITDA includes adjustments to reflect the Company’s share of Adjusted EBITDA from unconsolidated entities. The Company believes that net income, as defined by GAAP, is the most appropriate earnings metric; however, we believe that Adjusted EBITDA serves as a useful supplement to net income because it allows investors, analysts and management to evaluate the performance of our segments in a manner that is comparable period over period. Adjusted EBITDA should not be considered as an alternative to net income as determined in accordance with GAAP.

Selected financial data related to our segments is presented below for the three and nine months ended September 30, 2024 and 2023:

	Three Months Ended September 30, 2024
(Thousands)	Uniti Leasing		Uniti Fiber		Corporate		Subtotal of Reportable Segments
Revenues	$	222,922	$	69,325	$	—	$	292,247
Adjusted EBITDA	$	215,188	$	25,557	$	(5,421)	$	235,324
Less:
Interest expense							131,007
Depreciation and amortization	45,281		34,031		13		79,325
Transaction related and other costs							14,404
Other, net							918
Stock-based compensation							3,375
Income tax benefit							(5,935)
Net income							$	12,230

	Three Months Ended September 30, 2023
	(as restated)
(Thousands)	Uniti Leasing		Uniti Fiber		Corporate		Subtotal of Reportable Segments
Revenues	$	214,588	$	76,067	$	—	$	290,655
Adjusted EBITDA	$	208,561	$	29,857	$	(5,408)	$	233,010
Less:
Interest expense							120,691
Depreciation and amortization	44,754		32,570		13		77,337
Transaction related and other costs							1,441
Gain on sale of real estate							(1,424)
Goodwill impairment							203,998
Other, net							2,091
Stock-based compensation							3,148
Income tax benefit							(56,130)
Adjustments for equity in earnings from unconsolidated entities							754
Net loss							$	(118,896)

	Nine Months Ended September 30, 2024
(Thousands)	Uniti Leasing		Uniti Fiber		Corporate		Subtotal of Reportable Segments
Revenues	$	658,829	$	214,783	$	—	$	873,612
Adjusted EBITDA	$	636,718	$	80,486	$	(16,593)	$	700,611
Less:
Interest expense							381,693
Depreciation and amortization	134,874		99,948		40		234,862
Transaction related and other costs							31,068
Gain on sale of real estate							(18,999)
Other, net							3,877
Stock-based compensation							10,120
Income tax benefit							(13,869)
Net income							$	71,859

	Nine Months Ended September 30, 2023
	(as restated)
(Thousands)	Uniti Leasing		Uniti Fiber		Corporate		Subtotal of Reportable Segments
Revenues	$	637,849	$	226,326	$	—	$	864,175
Adjusted EBITDA	$	620,079	$	88,712	$	(16,413)	$	692,378
Less:
Interest expense							389,243
Depreciation and amortization	133,617		97,719		43		231,379
Transaction related and other costs							9,805
Gain on sale of real estate							(1,424)
Goodwill impairment							203,998
Other, net							23,073
Stock-based compensation							9,408
Income tax benefit							(62,899)
Adjustments for equity in earnings from unconsolidated entities							2,264
Net loss							$	(112,469)