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Consolidated Communications Reports Third Quarter 2019 Results

New capital allocation policy resulted in $26 million reduction in total debt in third quarter

MATTOON, Ill., Oct. 31, 2019 (GLOBE NEWSWIRE) -- Consolidated Communications Holdings, Inc. (CNSL) (the “Company”) reported results for the third quarter 2019 and will hold a conference call and simultaneous webcast to discuss its results and developments today at 10 a.m. ET.

Third Quarter 2019 Financial Summary:

  • Revenue totaled $333.3 million
  • Net cash from operating activities was $85.4 million
  • Adjusted EBITDA was $131.0 million

Third Quarter 2019 Operational Summary:

  • Fiber connections for wireless carriers under contract increased 4 percent year over year
  • Ethernet revenues increased 4 percent year over year
  • Consumer broadband revenue grew more than 2 percent year over year

“We are executing on our capital allocation plan and have reduced our total debt during the quarter by $26 million,” said Bob Udell, president and chief executive officer of Consolidated Communications. “We are intensely focused on achieving our deleveraging goal of less than 4.0x net debt to adjusted EBITDA in advance of refinancing our unsecured debt by mid-2021.”

“We’re pleased to achieve another quarter of stable and consistent adjusted EBITDA and revenue,” added Udell. “And, we are particularly pleased with the performance of our carrier and consumer channels, both of which demonstrated growth in strategic areas. Our fiber connections to wireless carriers increased 4 percent year over year and consumer broadband revenue grew more than 2 percent compared to a year ago.”

Financial Results for the Third Quarter   

  • Revenues totaled $333.3 million, compared to $348.1 million for the third quarter of 2018, a decline of $14.8 million. After normalizing for the sale of the Virginia properties in July 2018, revenue declined $14.3 million or 4.1 percent for the quarter.

    • Commercial and carrier data and transport service revenue increased 1.3 percent or $1.1 million on a comparable basis from a year ago.
    • Consumer broadband revenue increased 2.5 percent or $1.6 million compared to a year ago.
    • Voice services revenue across all customer channels declined $8.8 million compared to a year ago.
    • Subsidies decreased $1.2 million during the quarter, due to the final CAF step down in transitional revenues. Network access revenues declined $3.9 million compared to a year ago.
       
  • Income from operations increased to $23.5 million compared to $748,000 in the third quarter of 2018. The change was primarily due to operating expense reductions of $21.5 million offsetting revenue declines. The operating expense decline was largely due to reductions in salaries, benefits and restructuring and integration costs. Depreciation and amortization expense declined by $16.1 million primarily due to acquired assets with a short remaining useful life becoming fully depreciated.

  • Interest expense, net was $34.3 million, compared to $33.5 million for the same period last year. After giving effect to interest rate swap agreements, as of Sept. 30, our weighted average cost of debt was approximately 5.7 percent.

  • Cash distributions from the Company’s wireless partnerships totaled $10.9 million for the third quarter compared to $8.1 million for the prior year period.   

  • Other income, net was $11.2 million, compared to $9.0 million in the third quarter of 2018, due to higher income from the Company’s minority interest in wireless partnerships.

  • On a GAAP basis, net income was $389,000, compared to a net loss of $14.8 million for the same period last year. GAAP net income per share was $0.0. Adjusted diluted net income (loss) per share excludes certain items as outlined in the table provided in this release. Adjusted diluted net income per share was $0.06 in the third quarter of 2019, compared to a net loss per share of ($0.09) in the third quarter of 2018. 

  • Adjusted EBITDA was $131.0 million compared to $133.7 million in the third quarter last year.

  • The total net debt to last 12-month adjusted EBITDA ratio was 4.39x, an improvement over the prior quarter primarily due to the retirement of over $23 million senior unsecured notes at par value, in addition to the scheduled principal payment on the term loan.

  • Capital expenditures remained elevated for the quarter totaling $64.6 million, due to seasonal construction, expenditures associated with hurricane restoration and increased consumer and broadband network investments.

Financial Guidance

The Company is affirming its previous 2019 full-year guidance for:

  • Cash interest expense in the range of $130 million to $135 million
  • Cash income taxes(1) in a range of $1 million to $3 million
  • Adjusted EBITDA in a range of $520 million to $525 million 

The Company is increasing its Capital expenditure guidance for 2019 from $210 million to $220 million to a range of $220 million to $225 million. This change reflects the estimates of final hurricane restoration costs and updated success-based capital. With insurance recoveries for storm damage, the modest increase in capital expenditures will not impact the Company’s ability to achieve its stated leverage targets.

 (1) Cash income taxes primarily include local and state income taxes as federal income taxes will be shielded by existing net operating losses and the benefit of The Tax Cuts and Job Act of 2017 tax reform legislation which was enacted in Dec. 2017.

Conference Call Information

Consolidated Communications will host a conference call and webcast today at 10 a.m. ET / 9 a.m. CT to discuss third quarter earnings and developments. The live webcast and replay can be accessed from the Investor Relations section of the Company’s website at http://ir.consolidated.com. The live conference call dial-in number is 1-877-374-3981, conference ID 5824024. A telephonic replay of the conference call will be available through Nov. 7 and can be accessed by calling 1-855-859-2056, conference ID 5824024.  
 
About Consolidated Communications 

Consolidated Communications Holdings, Inc. (CNSL) is a leading broadband and business communications provider serving consumers, businesses, and wireless and wireline carriers across rural and metro communities and a 23-state service area. Leveraging an advanced fiber network spanning 37,000 fiber route miles, Consolidated Communications offers a wide range of communications solutions, including: high-speed Internet, data, phone, security, managed services, cloud services and wholesale, carrier solutions. From our first connection 125 years ago, Consolidated is dedicated to turning technology into solutions, connecting people and enriching how they work and live. Visit www.consolidated.com for more information.

Use of Non-GAAP Financial Measures                         

This press release, as well as the conference call, includes disclosures regarding “EBITDA,” “adjusted EBITDA” and “total net debt to last twelve month adjusted EBITDA ratio” and “adjusted diluted net income (loss) per share,” all of which are non-GAAP financial measures and described in this section as not being in compliance with Regulation S-X.  Accordingly, they should not be construed as alternatives to net cash from operating or investing activities, cash and cash equivalents, cash flows from operations, net income or net income per share as defined by GAAP and are not, on their own, necessarily indicative of cash available to fund cash needs as determined in accordance with GAAP. In addition, not all companies use identical calculations, and the non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.  A reconciliation of the differences between these non-GAAP financial measures and the most directly comparable financial measures presented in accordance with GAAP is included in the tables that follow.

Adjusted EBITDA is comprised of EBITDA, adjusted for certain items as permitted or required by the lenders under our credit agreement in place at the end of each quarter in the periods presented.  The tables that follow include an explanation of how adjusted EBITDA is calculated for each of the periods presented with the reconciliation to net income.  EBITDA is defined as net earnings before interest expense, income taxes, depreciation and amortization on a historical basis.                                              

We present adjusted EBITDA for several reasons.  Management believes adjusted EBITDA is useful as a means to evaluate our ability to fund our estimated uses of cash (including interest on our debt). In addition, we have presented adjusted EBITDA to investors in the past because it is frequently used by investors, securities analysts and other interested parties in the evaluation of companies in our industry, and management believes presenting it here provides a measure of consistency in our financial reporting. Adjusted EBITDA, referred to as Available Cash in our credit agreement, is also a component of the restrictive covenants and financial ratios contained in our credit agreement that requires us to maintain compliance with these covenants and limit certain activities, such as our ability to incur debt.  The definitions in these covenants and ratios are based on adjusted EBITDA after giving effect to specified charges.  In addition, adjusted EBITDA provides our board of directors with meaningful information, with other data, assumptions and considerations, to measure our ability to service and repay debt.  We present the related “total net debt to last twelve month adjusted EBITDA ratio” principally to put other non-GAAP measures in context and facilitate comparisons by investors, security analysts and others; this ratio differs in certain respects from the similar ratio used in our credit agreement.  These measures differ in certain respects from the ratios used in our senior notes indenture. 

These non-GAAP financial measures have certain shortcomings.  In particular, adjusted EBITDA does not represent the residual cash flows available for discretionary expenditures, since items such as debt repayment and interest payments are not deducted from such measure.  Because adjusted EBITDA is a component of the ratio of total net debt to last twelve month adjusted EBITDA, these measures are also subject to the material limitations discussed above.  In addition, the ratio of total net debt to last twelve month adjusted EBITDA is subject to the risk that we may not be able to use the cash on the balance sheet to reduce our debt on a dollar-for-dollar basis. Management believes this ratio is useful as a means to evaluate our ability to incur additional indebtedness in the future. 

We present the non-GAAP measure “adjusted diluted net income (loss) per share” because our net income (loss) and net income (loss) per share are regularly affected by items that occur at irregular intervals or are non-cash items.  We believe that disclosing these measures assists investors, securities analysts and other interested parties in evaluating both our company over time and the relative performance of the companies in our industry.

Safe Harbor

The Securities and Exchange Commission (“SEC”) encourages companies to disclose forward-looking information so that investors can better understand a company’s future prospects and make informed investment decisions.  Certain statements in this communication are forward-looking statements and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995.  These forward-looking statements reflect, among other things, our current expectations, plans, strategies, and anticipated financial results.  There are a number of risks, uncertainties, and conditions that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements.  These risks and uncertainties include a number of factors related to our business, including economic and financial market conditions generally and economic conditions in our service areas;  various risks to the price and volatility of our common stock; changes in the valuation of pension plan assets; the substantial amount of debt and our ability to repay or refinance it or incur additional debt in the future; our need for a significant amount of cash to service and repay the debt  restrictions contained in our debt agreements that limit the discretion of management in operating the business; regulatory changes, including changes to subsidies, rapid development and introduction of new technologies and intense competition in the telecommunications industry; risks associated with our possible pursuit of acquisitions; system failures; cyber-attacks, information or security breaches or technology failure of ours or of a third party; losses of large customers or government contracts; risks associated with the rights-of-way for the network; disruptions in the relationship with third party vendors; losses of key management personnel and the inability to attract and retain highly qualified management and personnel in the future; changes in the extensive governmental legislation and regulations governing telecommunications providers and the provision of telecommunications services; new or changing tax laws or regulations; telecommunications carriers disputing and/or avoiding their obligations to pay network access charges for use of our network; high costs of regulatory compliance; the competitive impact of legislation and regulatory changes in the telecommunications industry; and liability and compliance costs regarding environmental regulations; and risks associated with discontinuing paying dividends on our common stock. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements are discussed in more detail in our filings with the SEC, including our reports on Form 10-K and Form 10-Q.  Many of these circumstances are beyond our ability to control or predict.  Moreover, forward-looking statements necessarily involve assumptions on our part.  These forward-looking statements generally are identified by the words “believe,” “expect,” “anticipate,” “estimate,” “project,” “intend,” “plan,” “should,” “may,” “will,” “would,” “will be,” “will continue” or similar expressions.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Consolidated Communications Holdings, Inc. and its subsidiaries to be different from those expressed or implied in the forward-looking statements.  All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements that appear throughout this communication.  Furthermore, forward-looking statements speak only as of the date they are made.  Except as required under the federal securities laws or the rules and regulations of the SEC, we disclaim any intention or obligation to update or revise publicly any forward-looking statements.  You should not place undue reliance on forward-looking statements.

Company Contact                                                                      

Jennifer Spaude, Consolidated Communications
Phone:  (844)-909-CNSL (2675)
Jennifer.Spaude@consolidated.com


Consolidated Communications Holdings, Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share and per share amounts)
(Unaudited)
  September 30,   December 31,
    2019       2018  
   
ASSETS      
Current assets:      
  Cash and cash equivalents $ 6,178     $ 9,599  
  Accounts receivable, net   125,908       133,136  
  Income tax receivable   11,293       11,072  
  Prepaid expenses and other current assets   42,070       44,336  
Total current assets   185,449       198,143  
       
Property, plant and equipment, net   1,861,033       1,927,126  
Investments   112,377       110,853  
Goodwill   1,035,274       1,035,274  
Customer relationships, net   180,378       228,959  
Other intangible assets   10,650       11,483  
Other assets   58,140       23,423  
Total assets $ 3,443,301     $ 3,535,261  
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
Current liabilities:      
  Accounts payable $ 32,241     $ 32,502  
  Advance billings and customer deposits   48,122       47,724  
  Dividends payable   -       27,579  
  Accrued compensation   58,397       64,459  
  Accrued interest   16,783       9,232  
  Accrued expense   74,969       71,650  
  Current portion of long-term debt and finance lease obligations   27,869       30,468  
Total current liabilities   258,381       283,614  
       
Long-term debt and finance lease obligations   2,285,177       2,303,585  
Deferred income taxes   175,021       188,129  
Pension and other post-retirement obligations   286,646       314,134  
Other long-term liabilities   78,372       30,145  
Total liabilities   3,083,597       3,119,607  
       
Shareholders' equity:      
  Common stock, par value $0.01 per share; 100,000,000 shares      
    authorized, 72,076,069 and 71,187,301, shares outstanding      
    as of September 30, 2019 and December 31, 2018, respectively   721       712  
  Additional paid-in capital   491,012       513,070  
  Accumulated deficit   (65,229 )     (50,834 )
  Accumulated other comprehensive loss, net   (73,004 )     (53,212 )
Noncontrolling interest   6,204       5,918  
Total shareholders' equity   359,704       415,654  
Total liabilities and shareholders' equity $ 3,443,301     $ 3,535,261  
 



Consolidated Communications Holdings, Inc.
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
(Unaudited)
       
  Three Months Ended   Nine Months Ended
  September 30,   September 30,
    2019       2018       2019       2018  
               
               
Net revenues $ 333,326     $ 348,064     $ 1,005,507     $ 1,054,324  
Operating expenses:              
  Cost of services and products   146,636       152,942       438,735       457,216  
  Selling, general and administrative expenses   70,100       85,255       222,615       252,935  
  Depreciation and amortization   93,048       109,119       289,595       328,759  
Income from operations   23,542       748       54,562       15,414  
Other income (expense):              
  Interest expense, net of interest income   (34,250 )     (33,524 )     (103,270 )     (99,079 )
  Gain on extinguishment of debt   1,121       -       1,370       -  
  Other income, net   11,180       8,968       27,510       29,842  
Income (loss) before income taxes   1,593       (23,808 )     (19,828 )     (53,823 )
Income tax expense (benefit)   1,204       (8,993 )     (5,719 )     (17,250 )
Net income (loss)   389       (14,815 )     (14,109 )     (36,573 )
Less: net income attributable to noncontrolling interest   132       99       286       282  
               
Net income (loss) attributable to common shareholders $ 257     $ (14,914 )   $ (14,395 )   $ (36,855 )
               
 Net income (loss) per basic and diluted common shares              
  attributable to common shareholders $ -     $ (0.21 )   $ (0.21 )   $ (0.53 )
               



Consolidated Communications Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
  (Dollars in thousands)
(Unaudited)
                 
  Three Months Ended   Nine Months Ended  
      September 30,   September 30,  
      2019   2018   2019   2018  
OPERATING ACTIVITIES                  
  Net income (loss)   $ 389   $ (14,815)   $ (14,109)   $ (36,573)
  Adjustments to reconcile net income (loss) to net cash provided by operating activities:                  
  Depreciation and amortization   93,048   109,119   289,595   328,759
  Deferred income taxes   639   (2,807)   639   (2,805)
  Cash distributions from wireless partnerships less than earnings   (349)   (553)   (1,561)   (34)
  Non-cash, stock-based compensation   1,928   1,538   5,240   3,754
  Amortization of deferred financing   1,240   1,187   3,679   3,522
  Gain on extinguishment of debt   (1,121)   -   (1,370)   -
  Other adjustments, net   (4)   400   791   3,815
  Changes in operating assets and liabilities, net   (10,395)   (24,404)   (34,267)   (36,402)  
  Net cash provided by operating activities   85,375   69,665   248,637   264,036
INVESTING ACTIVITIES                
  Purchase of property, plant and equipment, net   (64,575)   (61,925)   (184,343)   (186,765)
  Proceeds from sale of assets   140   197   14,343   1,640
  Proceeds from business dispositions   -   20,999   -   20,999
  Distributions from investments   -   -   329   233
  Other   -   -   (450)   -
  Net cash used in investing activities   (64,435)   (40,729)   (170,121)   (163,893)
FINANCING ACTIVITIES                
  Proceeds from issuance of long-term debt   45,000   60,587   152,000   136,587
  Payment of finance lease obligations   (2,932)   (3,563)   (9,743)   (9,590)
  Payment on long-term debt   (45,588)   (65,174)   (142,763)   (156,350)
  Repurchase of senior notes   (21,692)   -   (25,986)   -
  Dividends on common stock   -   (27,602)   (55,445)   (82,621)
  Net cash used in financing activities   (25,212)   (35,752)   (81,937)   (111,974)
Net change in cash and cash equivalents   (4,272)   (6,816)   (3,421)   (11,831)
Cash and cash equivalents at beginning of period   10,450   10,642   9,599   15,657
Cash and cash equivalents at end of period   $ 6,178   $ 3,826   $ 6,178   $ 3,826
                   



Consolidated Communications Holdings, Inc.
Consolidated Revenue by Category
(Dollars in thousands)
(Unaudited)
                       
      Three Months Ended       Nine Months Ended
      September 30,       September 30,
        2019     2018           2019     2018  
Commercial and carrier:                      
Data and transport services (includes VoIP)     $ 88,756   $ 87,633         $ 265,420   $ 261,261  
Voice services       46,606     50,091           141,812     153,574  
Other       11,828     13,906           40,394     40,006  
        147,190     151,630           447,626     454,841  
Consumer:                      
Broadband (VoIP and Data)       65,456     63,865           192,609     189,521  
Video services       20,463     21,790           61,540     66,689  
Voice services       45,487     50,757           136,601     154,435  
        131,406     136,412           390,750     410,645  
                       
Subsidies       18,025     19,189           54,318     65,423  
Network access       34,211     38,147           105,000     115,200  
  Other products and services       2,494     2,686           7,813     8,215  
Total operating revenue       333,326     348,064           1,005,507     1,054,324  
Less operating revenues from divestitures       -     (466 )         -     (3,337 )
      $ 333,326   $ 347,598         $ 1,005,507   $ 1,050,987  
                       



Consolidated Communications Holdings, Inc.
Consolidated Revenue by Category
(Dollars in thousands)
(Unaudited)
                     
                     
    Three Months Ended
    Q3 2019   Q2 2019   Q1 2019   Q4 2018   Q3 2018
Commercial and carrier:                    
Data and transport services (includes VoIP)   $ 88,756   $ 88,538   $ 88,126   $ 88,152   $ 87,633  
Voice services     46,606     47,136     48,070     49,301     50,091  
Other     11,828     13,390     15,176     16,389     13,906  
      147,190     149,064     151,372     153,842     151,630  
Consumer:                    
Broadband (VoIP and Data)     65,456     64,068     63,085     63,598     63,865  
Video services     20,463     20,341     20,736     21,649     21,790  
Voice services     45,487     45,235     45,879     47,597     50,757  
      131,406     129,644     129,700     132,844     136,412  
                     
Subsidies     18,025     18,134     18,159     17,948     19,189  
Network access     34,211     34,198     36,591     37,382     38,147  
Other products and services     2,494     2,492     2,827     2,734     2,686  
Total operating revenue     333,326     333,532     338,649     344,750     348,064  
Less operating revenues from divestitures     -     -     -     -     (466 )
    $ 333,326   $ 333,532   $ 338,649   $ 344,750   $ 347,598  
                     



Consolidated Communications Holdings, Inc.
Schedule of Adjusted EBITDA Calculation
(Dollars in thousands)
(Unaudited)
               
               
  Three Months Ended   Nine Months Ended
  September 30,   September 30,
    2019       2018       2019       2018  
Net income (loss) $ 389     $ (14,815 )   $ (14,109 )   $ (36,573 )
Add (subtract):              
  Income tax expense (benefit)   1,204       (8,993 )     (5,719 )     (17,250 )
  Interest expense, net   34,250       33,524       103,270       99,079  
  Depreciation and amortization   93,048       109,119       289,595       328,759  
EBITDA   128,891       118,835       373,037       374,015  
               
Adjustments to EBITDA (1):              
Other, net (2)   1,141       12,413       13,840       23,047  
Investment income (accrual basis)   (11,254 )     (8,675 )     (30,605 )     (28,999 )
Investment distributions (cash basis)   10,905       8,121       28,823       28,815  
Pension/OPEB expense   483       1,470       3,690       4,297  
Gain on extinguishment of debt   (1,121 )     -       (1,370 )     -  
Non-cash compensation (3)   1,928       1,538       5,240       3,754  
Adjusted EBITDA $ 130,973     $ 133,702     $ 392,655     $ 404,929  
               
Notes:              
(1) These adjustments reflect those required or permitted by the lenders under our credit agreement.
(2) Other, net includes income attributable to noncontrolling interests, acquisition and non-recurring related costs, and certain miscellaneous items.
(3) Represents compensation expenses in connection with our Restricted Share Plan, which because of the non-cash nature of the expenses are excluded from adjusted EBITDA.



Consolidated Communications Holdings, Inc.
Reconciliation of Net Loss to Adjusted EBITDA Guidance
(Dollars in millions)
(Unaudited)
       
       
  Twelve Months Ended
  December 31, 2019
  Range
  Low   High
Net loss $ (22 )   $ (12 )
Add (subtract):      
  Income tax benefit   (11 )     (6 )
  Interest expense, net   138       133  
  Depreciation and amortization   390       385  
EBITDA   495       500  
       
Adjustments to EBITDA (1):      
Other, net (2)   12       12  
Pension/OPEB expense   6       6  
Non-cash compensation (3)   7       7  
Adjusted EBITDA $ 520     $ 525  
       
Notes:      
(1) These adjustments reflect those required or permitted by the lenders under our credit agreement.
(2) Other, net includes income attributable to noncontrolling interests, cash distributions less equity earnings from our investments, dividend income, acquisition and non-recurring related costs, gain on the extinguishment of debt and certain miscellaneous items.
(3) Represents compensation expenses in connection with our Restricted Share Plan, which because of the non-cash nature of the expenses are excluded from adjusted EBITDA.
       
To enhance the information in our outlook with respect to non-GAAP metrics, we are providing a range for certain GAAP measures that are components of the reconciliation of the non-GAAP metrics. The provision of these ranges is in no way meant to indicate that we are explicitly or implicitly providing an outlook on those GAAP components of the reconciliation. In order to reconcile the non-GAAP financial metric to GAAP, we have used ranges for the GAAP components that arithmetically add up to the non-GAAP financial metric. While we feel reasonably comfortable about the outlook for the non-GAAP financial metrics, we fully expect that the ranges used for the GAAP components will vary from actual results. We will consider our outlook of non-GAAP financial metrics to be accurate if the specific non-GAAP metric is met or exceeded, even if the GAAP components of the reconciliation are different from those provided in an earlier reconciliation.



Consolidated Communications Holdings, Inc.
Total Net Debt to LTM Adjusted EBITDA Ratio
(Dollars in thousands)
(Unaudited)
   
  September 30,
Summary of Outstanding Debt:   2019  
Term loans, net of discount $5,955 $ 1,783,345  
Revolving loan   45,000  
Senior unsecured notes due 2022, net of discount $2,312   469,974  
Finance leases   23,795  
Total debt as of September 30, 2019 $ 2,322,114  
Less deferred debt issuance costs   (9,068 )
Less cash on hand   (6,178 )
Total net debt as of September 30, 2019 $ 2,306,868  
   
Adjusted EBITDA for the twelve  
months ended September 30, 2019 $ 525,020  
   
Total Net Debt to last twelve months  
Adjusted EBITDA   4.39x  
   


Consolidated Communications Holdings, Inc.
Adjusted Net Income (Loss) and Net Income (Loss) Per Share
(Dollars in thousands, except per share amounts)
(Unaudited)
               
  Three Months Ended   Nine Months Ended
  September 30,   September 30,
    2019       2018       2019       2018  
Net income (loss) $ 389     $ (14,815 )   $ (14,109 )   $ (36,573 )
Integration and severance related costs, net of tax   2,761       9,309       10,931       16,747  
Storm costs (recoveries), net of tax   -       -       (257 )     1,723  
Gain on extinguishment of debt, net of tax   (724 )     -       (930 )     -  
Local switching support settlement, net of tax   -       -       -       (2,903 )
Non-cash interest expense for swaps, net of tax   (152 )     438       78       2,367  
Tax related to acquisition   -       1,062       -       1,062  
Divestiture related, tax (1)   -       767       -       767  
Change in deferred tax rate, federal tax reform   -       (4,397 )     -       (4,397 )
Other, tax   639       -       639       -  
Non-cash stock compensation, net of tax   1,245       1,126       3,558       2,733  
Adjusted net income (loss) $ 4,158     $ (6,510 )   $ (90 )   $ (18,474 )
               
Weighted average number of shares outstanding   70,813       70,598       70,813       70,598  
Adjusted diluted net income (loss) per share $ 0.06     $ (0.09 )   $ -     $ (0.26 )
               
Notes:              
               
(1) Includes sale of Virginia properties on July 31, 2018.
               
Calculations above assume a 35.4% and 26.8% effective tax rate for the three months ended and 32.1% and 27.2% for the nine months ended September 30, 2019 and 2018, respectively.


 
Consolidated Communications Holdings, Inc.
Key Operating Statistics
(Unaudited)
                       
      September 30, June 30,   % Change   September 30, % Change
      2019   2019   in Qtr   2018   YOY
                       
Voice Connections   854,430   873,269   (2.2%)   921,896   (7.3%)
                       
Data and Internet Connections   784,151   783,008   0.1%   781,912   0.3%
                       
Video Connections   86,446   89,531   (3.4%)   95,889   (9.8%)
                       
Business and Broadband as % of total revenue (1) 75.6%   76.2%   (0.8%)   75.2%   0.5%
                       
Fiber route network miles (long-haul and metro)   37,359   37,167   0.5%   36,814   1.5%
                       
On-net buildings   11,732   11,164   5.1%   10,041   16.8%
                       
Consumer Customers   602,482   609,876   (1.2%)   641,845   (6.1%)
                       
Consumer ARPU   $72.70   $70.86   2.6%   $70.70   2.8%
                       
Notes:                    
(1) Business and Broadband revenue % includes: commercial/carrier, equipment sales and service, directory, consumer broadband and special access.