Uniti Grp. Inc. (UNIT)

[Scotttrader80]

There is substantial doubt about our ability to continue as a going concern.

We intend to reduce our capital expenditures and dividend as well as seek external funding in order to sustain our operations.

[wshaw14]

10K https://seekingalpha.com/filing/4408535

[wshaw14]

Looks like earnings postponed again. http://investor.uniti.com/news-releases/news-release-details/uniti-group-inc-announces-rescheduled-conference-call-fourth


Uniti Group Inc. Announces Rescheduled Conference Call for Fourth Quarter and Year End 2018 Financial Results

LITTLE ROCK, Ark., March 18, 2019 (GLOBE NEWSWIRE) -- Uniti Group Inc. (“Uniti”) (Nasdaq: UNIT) announced today that it will host a conference call to discuss its fourth quarter and year end 2018 financial results on March 20, 2019 at 4:15 PM Eastern Time.

The dial-in number for the conference call is [phone] (or [phone] for international callers) and the conference ID is 3695238. The call will also be webcast live and can be accessed at the Company’s website at www.uniti.com. A replay of the call will be available on the Company’s website beginning on March 20, 2019 at approximately 8:00 pm Eastern Time and will remain available for 14 days.

[wshaw14]

We should have our news after the close today. I believe they said no later than 03/18/2019

[Scotttrader80]

They were $8 n change earlier in the week and last week so we'll see if they keep with guidance or cut. A lot depends on WINMQ's BK

[The_Free_Nebula]

Good candidate for a slow bounce back....way oversold...

[wshaw14]

Let us also not forget the very possible suspension of the Divi. I dont think tomorrow will be a good day, but anything is possible.

[Scotttrader80]

Neither UNIT nor WINMQ are doing so good

[The_Free_Nebula]

The question now is - does this take another hit tomorrow with earnings?

[jugs]

You are, in my opinion, a gentle soul. Aka a class act.

[wshaw14]

Like I stated before, I do like UNITI even without a Divi at my price point. Nice conversing with you, and I do wish you well.

[Nistel]

Que?? I don't state any points. I think you read too much in my postings.
I only give an interpretation about that line you posted.

Also:

For the 2018 tax year, the Company paid dividends attributable to its capital stock of approximately $435 million, and in January 2019 the Company paid a dividend attributable to its capital stock of approximately $110 million related to the 2019 tax year. Under the Amendment, the Company expects dividends attributable to its capital stock paid applicable to the 2019 tax year to be limited to approximately $250 million, and aggregate dividends paid during the upcoming four quarters to be limited to approximately $140 million.

In case you missed it..............

[wshaw14]

In my humble opinion, you are missing some very important points. Distributable cash flow, Net Profit, and Net Profit (excluding Capital gains are three completely different things. Reits normally base their distributions on DCF(which adds back items like depreciation) which makes their dividend often exceed their net profits. " a provision generally limiting our ability to pay future cash dividends to an amount that does not to exceed 90% of our taxable income (excluding capital gains)" Clearly states "Taxable income (excluding capital gains", so that is the only basis they can now use. You can choose to use this info and do your research on their Taxable income minus capital gains, or not to. I wish you good luck and do not seek to influence your decision. Just want to give facts.

[Nistel]

They gave already guidance for 2019 taxable year and upcoming 4 quarters (total sum in planned dividend payout). That's not a zero. What happens after that is just anyone's guess.

[wshaw14]

Take a look at the P&L and I believe you will understand what I am speaking of. Not CASH FLOW. Net taxable income not including Capital Gains. 90% of Zero is Zero. I just bought a position in another company that went through similar at a excellent price point caused by
a Divi suspend. It will take a few quarters for the dividend to return. but capital gains should dwarf lost dividends.

[Nistel]

No, as I read that's a limitation to any amount higher than 90% taxable income. They will always have to pay out at least 90%.
The 90% is a minimum requirement as they have REIT status.

[wshaw14]

From my calculations the following exerpt from the 8K means a dividend cut to $0.00. I still like UNITI with no dividend, but not at the current price. I think it still has a ways to fall. I believe Monday 03/18 will be a very key date.

Item 7.01 Regulation FD Disclosure



On March 4, 2019, Uniti Group Inc. (the “Company”) commenced a process to seek an amendment and limited waiver (the “Amendment”) under the Company’s credit agreement. The Amendment would, among other things, waive any default resulting from a going concern modification to the audit opinion the Company expects to receive from PricewaterhouseCoopers LLP as a result of the recent bankruptcy filing by Windstream Holdings, Inc. and all its subsidiaries. In connection with the Amendment, the Company may agree to certain restrictions under its credit agreement during the pendency of the Windstream bankruptcy, including a provision generally limiting our ability to pay future cash dividends to an amount that does not to exceed 90% of our taxable income (excluding capital gains).

[Scotttrader80]

The MM's will run with it until the company says something to stop the bleed

[Scotttrader80]

The market knows long before retail does, we're witnessing UNIT taking a 50% haircut in share price already in the past 2 weeks.

NEWT pays almost as much, might as well go with a sure thing vs playing with fire

[wshaw14]

The drastic (or any) cut in the dividend has been proven very bad for share prices in nearly all cases that I have witnessed. I dont expect UNIT will be any different. I will also be a buyer as I dont believe such a low price is justified. I have seen unjustified tanking of stocks in this situation too many times.

[leftovers]

With this new information you can kinda calculate the dividend cut

The company now expects dividends attributable to capital stock for 2019 tax year to be limited to about $250M, and aggregate dividends for the upcoming four quarters to be limited to about $140M. For the 2018 year, it paid attributable dividends of about $435M and in January it paid an attributable dividend of about $110M related to the 2019 tax year.


looks like 50-60% drop coming up?

[Scotttrader80]

If UNITI gets slashed another 50-75% I'll be a buyer. The chap 11 for WIN isnt like $SHLDQ's was selling off assets, its just a reorganization of its debt. Unfortunately UNIT is a victim of circumstance, I was almost a buy in the $18.00's awaiting the quarterly dividend announcement that hasnt shown up yet

[leftovers]

Unit hasn't announced any changes on the dividend yet? In Fact they just filed that the end of year quarter filling will be late.


Win is trading at .30 pre market I just placed a low ball order at .22 myself. Going keep a close eye on it for now! Not much downside left.


Unit on the other hand has a huge downside so would wait for the dividend announcement with the late filing?

[wshaw14]

Please see post #182 for my reasoning on UNITI

[wshaw14]

The article linked below pretty much sums it up. I believe it will probably end up a 75% cut in the UNITI dividend. Though this will give the best result for shareholders, it will not be well received and will likely drop the share price another 50-75%. That will be a huge opportunity for wise longer term investors. JMHO

https://seekingalpha.com/article/4245822-unitis-soap-opera-continues-4-things-investors-need-know

[Scotttrader80]

The courts have already granted a stay allowing Windstream to conduct daily operations as usual while they are restructuring the "debt" in question. This one isnt your standard Chap 11 protections selling off assests to pay creditors or affecting the commons shares base. None of that stuff is happening, its just a reorganization of debt. Regardless though, both companies have lost significant market share becuase of the voluntary Chapter 11.

UNIT was trading north of $18.00 but cut in half since suspending its .60 cent quarterly dividend and WIN*Q was trading above $3.00 begining of February and now hovering in the .30 cent range. All while both companies have done nothing wrong.

Thats the kicker!

[wshaw14]

I totally agree.

[Scotttrader80]

It'll become a divy play again once WIN*Q exits chapt 11 protection, its business as usual as they reorganize their debt. Once thats resolved as revenue have continued to be banked, UNIT will reinstitute their dividend.

Im watching for lows to create a pile, just last month UNIT was trading close to $20.00 before the SHTF

[leftovers]

Summary

Windstream files for Chapter 11 bankruptcy following a court ruling finding Windstream in default to its bondholders.

Windstream has to decide whether to accept or reject its lease agreement with Uniti, which grants it access to Uniti’s network and assets that Windstream relies on for its operations.

A negotiation to lower the rent payments on the lease could potentially allow Windstream to continue its operations, but would represent a substantial decrease in cash flow for Uniti.

There could be other forms of compensation Windstream could offer to Uniti.
However, there is still a material chance that Windstream will not receive favorable rulings in the courts or that it will not be able to reorganize successfully.

[leftovers]

It's already become a very active day trading issue at the moment! If that is your game plan?

[leftovers]

exactly the delay was so they have time to figure out what to do about the dividend? The results for the last quarter of 2018 are already in! They need to get a grip on how severe the drop in income going forward will be to adjust the dividend. The UNIT bond holders will be calling the cards on this on.

You wouldn't think an announcement made this year would change last years results.

[Toofuzzy]

You wouldn't think an announcement made this year would change last years results.

Toofuzzy

[wshaw14]

Not looking at it as a divi play.

[leftovers]

depends what happens with the dividend way too risky at the moment need to wait for now. Plenty of great dividend payers in this range and percentage with much less risk. IMHO

[wshaw14]

Not looking good for current holders. Could be an opportunity soon for buyers though.

[leftovers]

Uniti Group Inc. (“Uniti”) (Nasdaq: UNIT) announced today it is postponing the release of its fourth quarter and year end 2018 financial results as it continues to assess the impact of the bankruptcy petition by Windstream Holdings, Inc. and all of its subsidiaries on Uniti’s financial statements. Uniti’s financial results were originally scheduled to be released after the close of trading on the Nasdaq Stock Exchange on February 28, 2019.

Uniti currently expects to release its fourth quarter and year end 2018 financial results, as well as provide a business update, no later than March 18, 2019.

[wshaw14]

I think you made the right move. We can only guess the future.

[leftovers]

Don't feel bad I also sold and didn't really want to. It will drop more if a cut is announced so not worth losing sleep. Plenty of others in this range that pay good with less risk.

EDF and NRZ come to mind here... Good luck

[Jld3294]

I’ve been a long time shareholder and I’m not typically one to sell in panic, but this time I just don’t feel comfortable holding it. Just cashed out my 200 some shares. I’ll keep an eye on it. Probably a mistake, but my gut tells me it might go to $6 or lower with the dividend cut.

[leftovers]

Ya I saw that. Myself, I managed to get out of this yesterday when it broke 11. I put the funds in EDF same kind of pay out only monthly!

I'll keep an eye on things here but in the short term doesn't look good at all....

[wshaw14]

Uniti Dividend Is Likely To Be Suspended
https://seekingalpha.com/article/4244191-uniti-dividend-likely-suspended
Lets hope this does not come to pass. But lets also keep in mind that just because it does not happen this Q,(if it does not) it does not mean it wont happen.

[leftovers]

I agree could prove to be fun!

Im going to follow it, maybe pick up some cheapie WIN at around .15-.20 cents

With Unit we will find out Thursday if the dividend stays the same this thing sky rockets if they drop it by 50% it crashes...

[Scotttrader80]

Im going to follow it, maybe pick up some cheapie WIN at around .15-.20 cents while keeping a close eye on UNIT, there has to be a bottom somewhere

[leftovers]

could prove to be interesting!

[Scotttrader80]

I wonder if they'll get Judge Drain who just ruled in SHLDQs favor. That NY court is desired when it comes to Chap 11 cases

[leftovers]

It appears to be so. Now is the time for Unit to figure out ways to get away from WIN in the long term. We will find out in 3 days what the deal is with the dividend and earnings report.

[LexTrader]

WIN got 1 bil DIP, so that's why UNIT is headed up.

[leftovers]

Battered Windstream files for Chapter 11 bankruptcy
Feb. 25, 2019 1:41 PM
Windstream Holdings (NASDAQ:WIN) has filed a petition for Chapter 11 bankruptcy in the Southern District of New York.
Shares are still on a halt from earlier pending news, down 24.3%, but have been updated to "news disseminated" and don't yet have a resumption time set.
Uniti Group (NASDAQ:UNIT) -- linked to Windstream through a key master lease -- was down on earlier reports the filing was imminent, but has turned higher, up 2.1% and rising.

Windstream plans to use a court-supervised process to address the accelerated debt maturities coming from its default-trial loss against Aurelius. It's "committed to operating its business as usual" and has secured $1B from Citi in debtor-in-possession financing to support operations.

[Scotttrader80]

Uniti Group Inc. -- Moody's downgrades Uniti to Caa2, outlook remains negative following Windstream's adverse court ruling

https://finance.yahoo.com/m/e177bea3-90b5-3abd-96df-05ca7f0aa90f/uniti-group-inc.-moody%27s.html

[Scotttrader80]

https://seekingalpha.com/article/4243377-blood-streets-15-percent-yield-uniti-opportunistic-buy