Consolidated Communications Holdings (CNSL) investor relations material

Executive summary

• Q3 2024 operating revenues declined 4% year-over-year to $271.1M, with a net loss of $61.4M and adjusted EBITDA of $86.5M, reflecting industry-wide declines and the impact of the Washington operations sale.

• Broadband services revenue grew 10% year-over-year, driven by fiber expansion, while video services were discontinued in all markets by July 2024.

• The company completed 57,990 new fiber passings in Q3 2024, with 51% of passings now at least 1 Gig capable.

• A merger with Searchlight Capital Partners is pending, expected to close in late Q4 2024 or early Q1 2025, taking the company private at $4.70 per share.

• Consumer broadband net adds were 5,134 in Q3 2024.

Financial highlights

• Q3 2024 net revenues: $271.1M (down 4% year-over-year); nine months: $814.5M (down 2%).

• Net loss attributable to common shareholders: $61.4M for Q3 2024, $175.2M for nine months.

• Adjusted EBITDA: $86.5M for Q3 2024 (up 8%); $259.2M for nine months (up 11%).

• Operating expenses decreased 8% year-over-year, driven by lower video programming, access, and labor costs.

• Cash and short-term investments totaled $44M as of September 30, 2024.

Outlook and guidance

• Management expects continued investment in fiber network expansion, with capital expenditures focused on broadband growth and success-based projects.

• The merger transaction is anticipated to close by early 2025, subject to regulatory approvals.

• Cash flows from operations, existing cash, and available borrowings are expected to fund operating requirements for at least the next twelve months.