MATTOON, Ill. - Consolidated Communications Holdings, Inc. (NASDAQ:CNSL), a leading fiber provider in the United States, announced its financial results for the fourth quarter of 2023.
The company reported a narrowed net loss of -$0.26 per share, which was $0.08 better than analyst expectations of -$0.34. However, revenue for the quarter was $275.2 million, falling short of the consensus estimate of $278.97 million.
The fourth quarter revenue represents a decline from the same period last year, which was not specified in the provided data.
The company's net loss also increased from the previous year's fourth quarter, which was reported at -$45.5 million, or -$0.41 per share, to the current -$58.6 million, or -$0.52 per share. This year-over-year increase in net loss includes the impact of the divestiture of the Kansas City operations and a rise in net interest expense, primarily due to higher interest on the term loan.
Despite the revenue miss, Consolidated Communications highlighted several positive developments in its report. The company's total consumer broadband net adds stood at 6,998 for the quarter, contributing to a total of 25,761 for the full year of 2023.
Consumer broadband revenue reached $76.5 million, with fiber revenue accounting for $37.9 million of that total. Additionally, the company's cost of services and products, along with selling, general, and administrative expenses, collectively decreased by $12.6 million compared to the prior year, mainly due to cost-saving initiatives and the divestiture mentioned earlier.
The company's capital expenditures for the quarter totaled $91.5 million, driven by the addition of 49,132 new fiber passings. For the full year, capital expenditures reached $511.8 million.
As of December 31, 2023, Consolidated Communications maintained liquidity with approximately $4.8 million in cash and short-term investments and $214 million of available borrowing capacity on its revolving credit facility.
Looking ahead, Consolidated Communications did not provide specific financial guidance, citing the pending transaction to be acquired by Searchlight and BCI. The all-cash transaction, valued at approximately $3.1 billion including debt assumption, is expected to close by the first quarter of 2025, subject to regulatory approvals and customary closing conditions. Upon completion, Consolidated Communications will become a private company.
In a statement, the CEO or CFO of Consolidated Communications commented on the quarterly results, emphasizing the company's strategic focus and operational progress, despite the challenges faced in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.