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Uniti Group Inc. (NASDAQ:UNIT), a real estate investment trust specializing in the acquisition and construction of mission-critical communications infrastructure, has announced a change in its independent registered public accounting firm. The company, which currently maintains a market capitalization of $1.17 billion and offers an impressive 12.77% dividend yield, appears undervalued according to InvestingPro analysis. As of Monday, the company’s Audit Committee approved the dismissal of KPMG LLP, effective upon completion of KPMG’s review of the company’s Quarterly Report for the quarter ending March 31, 2025.
The decision to change accountants follows a period during which there were no disagreements between Uniti Group and KPMG on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure that would have warranted a mention in KPMG’s reports for the years ended December 31, 2024, and 2023. However, a material weakness was identified in the company’s internal control over financial reporting regarding the assessment of the income tax impact of goodwill impairments, as disclosed in the company’s Annual Report for the fiscal year ended December 31, 2023. This comes as InvestingPro data shows the company maintaining strong profitability with an 84.65% gross profit margin and expected net income growth for the current year.
KPMG’s audit reports for the past two years did not contain any adverse opinion or disclaimer and were not qualified or modified in terms of uncertainty, audit scope, or accounting principles.
Uniti Group has engaged PricewaterhouseCoopers LLP (PwC) as its new independent registered public accounting firm, starting with the fiscal year ending December 31, 2025. PwC will take over following the effective dismissal of KPMG, subject to standard client acceptance procedures and the execution of an engagement letter. During the years ending December 31, 2024, and 2023, and up to April 21, 2025, Uniti Group did not consult PwC on any accounting principles or transactions, disagreements, or reportable events.
The company has provided KPMG with the disclosures in this report and requested that KPMG furnish a letter to the SEC stating whether it agrees with the statements made. A copy of KPMG’s letter dated April 24, 2025, is included as Exhibit 16.1 in this Form 8-K filing.
This change in the company’s certifying accountant is based on information from a recent SEC filing. Investors seeking deeper insights into Uniti Group’s financial health and prospects can access comprehensive analysis through InvestingPro, which offers additional ProTips and detailed metrics, including the company’s current Fair Value assessment and growth projections.
In other recent news, Uniti Group Inc. reported its fourth-quarter 2024 earnings, showing a slight miss in both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.09, just below the anticipated $0.10, and revenue of $293.32 million, slightly under the expected $295.12 million. Despite these misses, the company is optimistic about its strategic initiatives, including the upcoming merger with Windstream Holdings II, LLC, which was overwhelmingly approved by Uniti’s shareholders. The merger, expected to close in the second half of 2025, will see Uniti become a subsidiary of Windstream Parent, Inc., with shareholders receiving a significant portion of the new entity’s stock.
Additionally, Uniti Group announced the appointment of John Harrobin as President of Kinetic, a move that will take effect after the merger’s completion. Harrobin’s leadership is anticipated to drive value creation and enhance Kinetic’s network. In board-related news, Uniti nominated Harold Zeitz for election as an independent director, aiming to leverage his extensive experience in the telecom sector for strategic growth. Analyst firm Raymond (NSE:RYMD) James upgraded Uniti’s stock rating to Strong Buy, citing the potential for significant growth in the Fiber-to-the-Home market post-merger. These developments are part of Uniti’s broader strategy to strengthen its position in the communications infrastructure sector.
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