Consolidated Communications Holdings, Inc. (Nasdaq: CNSL), a leading U.S. fiber provider, released its financial results for Q3 2024, reporting solid performance across key metrics as well as progress toward its acquisition by Searchlight Capital Partners and British Columbia Investment Management Corporation.
Third Quarter 2024 Financial Highlights
- Total Revenue: $271.1 million
- Consumer Revenue: $110.3 million, including $49.0 million from fiber broadband services
- Broadband Additions: Net increase of 5,134 consumer broadband customers, with total broadband revenue reaching $82.4 million
- Commercial Data Services Revenue: $54.6 million
- Carrier Data Transport Revenue: $30.4 million
- Net Loss: $61.4 million, a slight improvement from a $69.2 million net loss in Q3 2023
- Adjusted EBITDA: $86.5 million
- Capital Expenditures: $126.1 million, largely supporting 57,990 new fiber passings and further fiber expansion
The company’s cost-reduction initiatives contributed to a decrease of $16.3 million in operating expenses compared to Q3 2023, thanks to reduced video programming, severance, and access expenses. However, higher professional fees for system enhancements and customer service upgrades partially offset these savings. Net interest expense rose by $5.3 million, reaching $44.9 million, primarily due to borrowings from a revolving credit facility. As of the end of Q3 2024, 71% of Consolidated’s outstanding debt was secured at a fixed interest rate, with an average cost of 7.09%.
Strategic Investments and Capital Structure
Consolidated continues to prioritize fiber expansion, securing $140 million in additional financing during Q3 2024 to support infrastructure buildout. Of this amount, $44 million was utilized by September 30, 2024. The company ended the quarter with cash and short-term investments of approximately $44 million and undrawn term loan availability of $80 million under its agreement with Searchlight CVL AGG, L.P.
Pending Acquisition
Consolidated remains on track to finalize its acquisition by Searchlight Capital Partners and British Columbia Investment Management Corporation, a deal valued at approximately $3.1 billion. With around 75% of disinterested shareholders approving the merger in January 2024, the transaction is expected to close by late Q4 2024 or early Q1 2025, subject to regulatory approvals. Upon completion, Consolidated will become a private company, and its common stock will no longer be publicly traded. Due to the pending acquisition, the company has chosen not to host an earnings conference call this quarter.
This financial report underscores Consolidated Communications’ steady focus on expanding fiber broadband access, optimizing operational efficiency, and successfully managing its transition to private ownership. The acquisition will enable Consolidated to accelerate its fiber investments and advance its mission to deliver high-speed connectivity nationwide.
About Consolidated Communications
Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) is dedicated to moving people, businesses and communities forward by delivering the most reliable fiber communications solutions. Consumers, businesses and wireless and wireline carriers depend on Consolidated for a wide range of high-speed internet, data, phone, security, cloud and wholesale carrier solutions. With a network spanning nearly 66,000 fiber route miles, Consolidated is a top 10 U.S. fiber provider, turning technology into solutions that are backed by exceptional customer support. Learn more at consolidated.com.
