http://www.kccllc.net/windstream/document/1922312200228000000000006
With earnings like this who needs a bad economy!
Spoiler Alert: We lost money again this month.
6 replies (most recent on top)
Oh and btw. Investing 1.75 billion into the network over a ten year period is nothing. Verizon and At&T invest that much in a quarter. Also windstream had to give up approximately $21 million worth of IRU’s on a portion of their dark fiber( and we all know that dark fiber is a money maker). So in a nutshell yes it’s a win win for uniti and a somewhat win for Windstream as for now. But we will see
Sorry. I meant every quarter not every month. Sorry.
Hmmm. Let’s see. So if uniti is giving you $100m every quarter and you’re paying 9% interest every quarter ( mind just simple math). Then 100M x 9% interest comes out to 9M a month in interest. So it wouldn’t be a loss from 120M to 20M it’d be more like a loss of 29M? Would it not?
The caveat is that WIN made out in the settlement. We get $40M cash for our fiber access and UNIT will now give us $100M ever quarter as a loan at 9%. We still have the $500M revolver if needed.
This cash infusion gives us enough run rate to keep the company afloat going forward. We lose about $120M/quarter right now. With that $100M we will now lose $20M. I think after some more cost savings and reorg we will be back to 0 by year end.
"Uniti will invest up to $1.75B in growth capital improvements (long-term fiber and related assets in some properties), and pay $40M for certain Windstream-owned fiber assets. Aside from the $40M, Uniti will transfer $400M in consideration to Windstream, in quarterly cash installments at 9% interest."
If things were improving, shouldn't revenue be up instead of down? I do see the net loss is down a teeny bit, so hey we have that going for us.
Thanks for sharing, running tally for those keeping score at home:
We lost 3 Billion last year.
December numbers
$192M in the bank
$414M in revenue
$45M NET LOSS
$61M in goodwill
$72M paid to bankruptcy attys YTD
January numbers not much different than the earnings call 2 weeks ago.
$199M in the bank
$403M in revenue
$41M NET LOSS
$61M in goodwill
$77M paid to bankruptcy attys YTD
5 months left of cash in the bank