Uniti Group Inc. (NASDAQ:UNIT) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 04:15 pm ET
Welcome to Uniti Group's Third Quarter 2019 Conference Call. My name is Kathy and I will be your conference operator for today. A webcast of this call will be available on the company's website at www.uniti.com beginning November 7 2019 and will remain available for 14 days. [Operator Instructions] The company would like to remind you that today's remarks include forward-looking statements and actual results could differ materially from those projected in the statements. The factors that could cause actual results to differ are discussed in the company's filings with the SEC. The company's remarks this afternoon will reference slides posted on its website and you are encouraged to refer to those materials during this call. Discussions during the call will also include certain financial measures that were not prepared in accordance with generally accepted accounting principles. Reconciliation of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found inthe company's current report on Form 8-K dated today.
I would now like to turn the call over to Uniti's Group Chief Executive Officer Kenny Gunderman. Please go ahead Mr. Gunderman.
Kenneth A. Gunderman
Thank you. Good afternoon everyone and thank you for joining. Before I review Uniti's operational results for the third quarter I'd like to reiterate some of Uniti's priorities during this volatile period relating to Windstream bankruptcy. We've been scrutinizing our portfolio of assets and operations with an eye towards selling or deemphasizing businesses that we believe are an impediment to achieving a full communications infrastructure valuation. We believe the true value of our core operations strategy and assets have been underappreciated and our efforts at optimization will help highlight this value as we move into 2020. slide four of our investor presentation highlights these priorities. First our main initiative is to drive high margin low churn recurring revenue in all of our business units.
We've sold numerous assets at attractive valuations including the Latin American tower business and our U.S. Ground Lease business. Today we're also highlighting that we are deemphasizing some existing operations that do not fit our core strategy such as hardware sales non-strategic construction and our residential CLEC business called Talk America all of which are low margin volatile and largely nonrecurring businesses. Further lit ethernet services continue to transition to longer-term dark fiber and small cell contracts leading to much more predictable revenue. Second we continue to secure attractive long-term anchor builds or orders with high-quality customers such as national wireless providers data and content providers and multinational carriers that facilitate building mission-critical communications infrastructure. Many of our existing major dark fiber and small cell builds are nearing completions and we have begun to selectively add new anchor orders which I will discuss later. Importantly we're continuing to accelerate the lease-up of that infrastructure with enterprise wholesale E-Rate and government customers at attractive cash flow yields and substantially less capex. The similarities between anchor and lease-up economics among our fiber towers and leasing businesses are very strong and we will continue to