GlobeNewswire Inc | Oct 29, 2020 08:01AM EDT

October 29, 2020

Stable and improved Adjusted EBITDA and revenue trends reflecting resiliency of the business

Global refinancing strengthened balance sheet resulting inlowered leverage and increased liquidity

Strategicinvestment accelerates fiber expansion plansenabling a transformation and return to growth

Third Quarter 2020 Highlights (compared to third quarter 2019)

-- Revenue totaled $327.1 million, generating increased Adjusted EBITDA of $132.2 million, up 1.0 percent -- Consumer Broadband revenue grew 2.6 percent, representing the sixth consecutive growth quarter -- Commercial and Carrier Data-Transport revenue grew 1.6 percent; lit buildings increased 12.5 percent -- Operating expenses, excluding depreciation and amortization, were reduced by $7.2 million or 3.3 percent -- Free Cash Flow increased $39.6 million; $128.9 million year-to-date -- Net debt leverage improved to 4.01x, from 4.33x at Dec. 31, 2019

MATTOON, Ill., Oct. 29, 2020 (GLOBE NEWSWIRE) -- Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) (the Company or Consolidated) reported results for the third quarter 2020.

Consolidateds very solid third quarter results demonstrate both the resiliency of our business and strong execution on improving revenue trends, growing adjusted EBITDA and strengthening the balance sheet, said Bob Udell, president and chief executive officer of Consolidated Communications. Revenue growth trends in both broadband and data-transport services sequentially and year-over-year combined with lower operating expenses contributed to our strong third quarter results.

Weve made great progress with our capital allocation plan having successfully completed a global debt refinance which extends maturities, significantly increases liquidity and strengthens our balance sheet, enabling us to immediately pivot and implement our growth plans.

Our new capitalization coupled with the strategic investment from Searchlight Capital Partners enables us to accelerate our fiber expansion plans and upgrade more than 1 million passings bringing significant benefits to customers. This multi-year, build plan will put us on a path to return to overall revenue growth, concluded Udell.

Financial Results for the ThirdQuarter

-- Revenue totaled $327.1 million, a decline of 1.9 percent compared to the third quarter 2019. Data and transport service revenue increased 1.6 percent or $1.4 million;Broadband revenue increased 2.6 percent or $1.7 million;Voice services revenue across all customer channels improved 400 basis points and declined 4.3 percent or $4.0 million; andNetwork access revenues declined $2.2 million primarily due to declines in special access. -- Income from operations increased $13.8 million and totaled $37.4 million in the third quarter of 2020. The change was primarily due to operating expense reductions of $7.2 million offsetting revenue declines. Depreciation and amortization expense declined $12.8 million primarily due to certain acquired assets, which became fully depreciated. -- Net interest expense was $31.7 million, down $2.6 million from the same period last year, primarily due to declines in variable interest rates on the term loan and repurchases on the Companys 6.50 percent Senior Notes in prior periods. -- Cash distributions from the Companys wireless partnerships totaled $12.3 million, up $1.4 million from a year ago. -- Other income was $13.5 million compared to income of $11.2 million one year ago primarily due to a reduction in non-operating pension/OPEB expense of $2.0 million. -- On a GAAP basis, net income was $14.6 million, compared to $389,000 for the same period last year. GAAP net income per share was $0.20. Adjusted diluted net income (loss) per share excludes certain items as outlined in the table provided in this release. Adjusted diluted net income per share was $0.23 in the third quarter of 2020, compared to $0.06 in the third quarter of 2019. -- Adjusted EBITDA was $132.2 million, an increase of 1 percent compared to $131.0 million in the third quarter last year. -- The total net debt to last 12-month Adjusted EBITDA ratio improved to 4.0x, as the Company continued to execute on its delever-first strategy and build cash on the balance sheet. Pro forma for the recapitalization announced on Oct. 2,resulted in net debt leverage of 3.5x. -- Capital expenditures totaled $56 million in the third quarter driven by success-based, fiber and wireless tower projects and broadband network investments.

Conference Call

Consolidateds third-quarter earnings conference call will be webcast today at 10 a.m. ET. The live webcast and materials will be available on the Investor Relations section of the Companys website at http://ir.consolidated.com. The live conference call dial-in number for investors and analysts is 1-877-374-3981, conference ID 7219487. A telephonic replay of the conference call will be available through Nov. 5 and can be accessed by calling 855-859-2056.

About Consolidated Communications

Consolidated Communications Holdings, Inc. (NASDAQ: CNSL) is a leading broadband and business communications provider serving consumers, businesses, and wireless and wireline carriers across rural and metro communities and a 23-state service area. Leveraging an advanced fiber network spanning 46,300 fiber route miles, Consolidated Communications offers a wide range of communications solutions, including: high-speed Internet, data, phone, security, managed services, cloud services and wholesale, carrier solutions. From our first connection 125 years ago, Consolidated is dedicated to turning technology into solutions, connecting people and enriching how they work and live. Visit www.consolidated.com for more information.

Use of Non-GAAP Financial Measures

This press release, as well as the conference call, includes disclosures regarding EBITDA, adjusted EBITDA, total net debt to last twelve month adjusted EBITDA ratio, free cash flow and adjusted diluted net income (loss) per share, all of which are non-GAAP financial measures and described in this section as not being in compliance with Regulation S-X. Accordingly, they should not be construed as alternatives to net cash from operating or investing activities, cash and cash equivalents, cash flows from operations, net income or net income per share as defined by GAAP and are not, on their own, necessarily indicative of cash available to fund cash needs as determined in accordance with GAAP. In addition, not all companies use identical calculations, and the non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. A reconciliation of the differences between these non-GAAP financial measures and the most directly comparable financial measures presented in accordance with GAAP is included in the tables that follow.

Adjusted EBITDA is comprised of EBITDA, adjusted for certain items as permitted or required by the lenders under our credit agreement in place at the end of each quarter in the periods presented. The tables that follow include an explanation of how adjusted EBITDA is calculated for each of the periods presented with the reconciliation to net income. EBITDA is defined as net earnings before interest expense, income taxes, depreciation and amortization on a historical basis.

We present adjusted EBITDA for several reasons. Management believes adjusted EBITDA is useful as a means to evaluate our ability to fund our estimated uses of cash (including interest on our debt). In addition, we have presented adjusted EBITDA to investors in the past because it is frequently used by investors, securities analysts and other interested parties in the evaluation of companies in our industry, and management believes presenting it here provides a measure of consistency in our financial reporting. Adjusted EBITDA, referred to as Available Cash in our credit agreement, is also a component of the restrictive covenants and financial ratios contained in our credit agreement that requires us to maintain compliance with these covenants and limit certain activities, such as our ability to incur debt. The definitions in these covenants and ratios are based on adjusted EBITDA after giving effect to specified charges. In addition, adjusted EBITDA provides our board of directors with meaningful information, with other data, assumptions and considerations, to measure our ability to service and repay debt. We present the related total net debt to last twelve month adjusted EBITDA ratio principally to put other non-GAAP measures in context and facilitate comparisons by investors, security analysts and others; this ratio differs in certain respects from the similar ratio used in our credit agreement. These measures differ in certain respects from the ratios used in our senior notes indenture.

These non-GAAP financial measures have certain shortcomings. In particular, adjusted EBITDA does not represent the residual cash flows available for discretionary expenditures, since items such as debt repayment and interest payments are not deducted from such measure. Because adjusted EBITDA is a component of the ratio of total net debt to last twelve month adjusted EBITDA, these measures are also subject to the material limitations discussed above. In addition, the ratio of total net debt to last twelve month adjusted EBITDA is subject to the risk that we may not be able to use the cash on the balance sheet to reduce our debt on a dollar-for-dollar basis. Management believes this ratio is useful as a means to evaluate our ability to incur additional indebtedness in the future.

Free cash flow represents net cash provided by operating activities adjusted for capital expenditures, cash dividends and proceeds received from the sale of assets. Free cash flow is a measure of operating cash flows available for corporate purposes after providing sufficient fixed asset additions. The tables that follow include a calculation of free cash flow for each of the periods presented with a reconciliation to net cash provided by operating activities. Free cash flow provides useful information to investors in the evaluation of our operating performance and liquidity.

We present the non-GAAP measure adjusted diluted net income (loss) per share because our net income (loss) and net income (loss) per share are regularly affected by items that occur at irregular intervals or are non-cash items. We believe that disclosing these measures assists investors, securities analysts and other interested parties in evaluating both our company over time and the relative performance of the companies in our industry.

Safe Harbor

Certain statements in this press releaseare forward-looking statements and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These forward-looking statements reflect, among other things, our current expectations, plans, strategies, and anticipated financial results. There are a number of risks, uncertainties, and conditions that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include a number of factors related to our business, including the uncertainties relating to the impact of the novel coronavirus(COVID-19)pandemic on the Companys business, results of operations, cash flows, stock price and employees; the possibility that any of the anticipated benefits of the strategic investment from Searchlight or our refinancing of outstanding debt, including our senior secured credit facilities, will not be realized; the outcome of any legal proceedings that may be instituted against the Company or its directors; the ability to obtain regulatory approvals and meet other closing conditions to the investment on a timely basis or at all, including the risk that regulatory approvals required for the investment are not obtained on a timely basis or at all, or are obtained subject to conditions that are not anticipated or that could adversely affect the Company or the expected benefits of the investment; the anticipated use of proceeds of the strategic investment; economic and financial market conditions generally and economic conditions in our service areas; various risks to the price and volatility of our common stock; changes in the valuation of pension plan assets; the substantial amount of debt and our ability to repay or refinance it or incur additional debt in the future; our need for a significant amount of cash to service and repay the debt restrictions contained in our debt agreements that limit the discretion of management in operating the business; regulatory changes, including changes to subsidies, rapid development and introduction of new technologies and intense competition in the telecommunications industry; risks associated with our possible pursuit of acquisitions; system failures; cyber-attacks, information or security breaches or technology failure of ours or of a third party; losses of large customers or government contracts; risks associated with therights-of-wayfor the network; disruptions in the relationship with third party vendors; losses of key management personnel and the inability to attract and retain highly qualified management and personnel in the future; changes in the extensive governmental legislation and regulations governing telecommunications providers and the provision of telecommunications services; new or changing tax laws or regulations; telecommunications carriers disputing and/or avoiding their obligations to pay network access charges for use of our network; high costs of regulatory compliance; the competitive impact of legislation and regulatory changes in the telecommunications industry; and liability and compliance costs regarding environmental regulations; and risks associated with discontinuing paying dividends on our common stock. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements are discussed in more detail in our filings with the SEC, including our reports on Form10-KandForm10-Q.Many of these circumstances are beyond our ability to control or predict. Moreover, forward-looking statements necessarily involve assumptions on our part. These forward-looking statements generally are identified by the words believe, expect, anticipate, estimate, project, intend, plan, should, may, will, would, will be, will continue or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company and its subsidiaries to be different from those expressed or implied in the forward-looking statements. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements that appear throughout this press release. Furthermore, forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we disclaim any intention or obligation to update or revise publicly any forward-looking statements. You should not place undue reliance on forward-looking statements.

Investor and MediaContact

Jennifer Spaude, Consolidated CommunicationsPhone: 507-386-3765jennifer.spaude@consolidated.com

Consolidated Communications Holdings, Inc.Condensed Consolidated Balance Sheets(Dollars in thousands, except share and per share amounts)(Unaudited) Sept. 30, Dec. 31, 2020 2019 ASSETS Current assets: Cash and cash equivalents $ 99,719 $ 12,395 Accounts receivable, net 119,076 120,016 Income tax receivable 5,175 2,669 Prepaid expenses and other current assets 42,473 41,787 Total current assets 266,443 176,867 Property, plant and equipment, net 1,782,183 1,835,878 Investments 111,555 112,717 Goodwill 1,035,274 1,035,274 Customer relationships, net 126,081 164,069 Other intangible assets 10,557 10,557 Other assets 51,735 54,915 Total assets $ 3,383,828 $ 3,390,277 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 22,385 $ 30,936 Advance billings and customer deposits 50,045 45,710 Accrued compensation 61,804 57,069 Accrued interest 15,195 7,874 Accrued expense 89,871 75,406 Current portion of long-term debt and 23,827 27,301 finance lease obligationsTotal current liabilities 263,127 244,296 Long-term debt and finance lease obligations 2,193,828 2,250,677 Deferred income taxes 185,017 173,027 Pension and other post-retirement 272,023 302,296 obligationsOther long-term liabilities 78,257 72,730 Total liabilities 2,992,252 3,043,026 Shareholders' equity: Common stock, par value $0.01 per share;100,000,000 sharesauthorized, 73,057,683and 71,961,045, shares outstandingas of 731 720 September 30, 2020 and December 31, 2019,respectivelyAdditional paid-in capital 497,722 492,246 Accumulated deficit (27,594 ) (71,217 )Accumulated other comprehensive loss, net (85,896 ) (80,868 )Noncontrolling interest 6,613 6,370 Total shareholders' equity 391,576 347,251 Total liabilities and shareholders' equity $ 3,383,828 $ 3,390,277

Consolidated Communications Holdings, Inc.Condensed Consolidated Statements of Operations(Dollars in thousands, except per share amounts)(Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net revenues $ 327,066 $ 333,326 $ 977,904 $ 1,005,507 Operating expenses: Cost of services and 144,428 146,636 421,717 438,735 productsSelling, general andadministrative 65,066 70,100 197,679 222,615 expensesDepreciation and 80,220 93,048 244,024 289,595 amortizationIncome from 37,352 23,542 114,484 54,562 operationsOther income (expense):Interest expense,net of interest (31,661 ) (34,250 ) (95,215 ) (103,270 )incomeGain onextinguishment of - 1,121 234 1,370 debtOther income, net 13,467 11,180 38,529 27,510 Income (loss) before 19,158 1,593 58,032 (19,828 )income taxesIncome tax expense 4,576 1,204 13,892 (5,719 )(benefit)Net income (loss) 14,582 389 44,140 (14,109 )Less: net incomeattributable to 72 132 243 286 noncontrollinginterest Net income (loss)attributable to $ 14,510 $ 257 $ 43,897 $ (14,395 )common shareholders Net income (loss)per basic anddiluted common $ 0.20 $ - $ 0.60 $ (0.21 )sharesattributableto commonshareholders

Consolidated Communications Holdings, Inc.Condensed Consolidated Statements of Cash Flows(Dollars in thousands)(Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 OPERATING ACTIVITIES Net income $ 14,582 $ 389 $ 44,140 $ (14,109 ) (loss) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and 80,220 93,048 244,024 289,595 amortization Deferred income - 639 - 639 taxes Cash distributions from wireless 857 (349 ) 1,001 (1,561 ) partnerships in excess of (less than) earnings Pension and post-retirement contributions (13,681 ) (11,649 ) (29,666 ) (24,261 ) in excess of expense Non-cash, stock-based 2,263 1,928 5,487 5,240 compensation Amortization of deferred 1,222 1,240 3,628 3,679 financing Gain on extinguishment - (1,121 ) (234 ) (1,370 ) of debt Other adjustments, (255 ) (4 ) (4,485 ) 791 net Changes in operating assets and 30,421 1,254 33,455 (10,006 ) liabilities, net Net cash provided by 115,629 85,375 297,350 248,637 operating activitiesINVESTING ACTIVITIES Purchase of property, plant (55,978 ) (64,575 ) (152,215 ) (184,343 ) and equipment, net Proceeds from 904 140 6,977 14,343 sale of assets Proceeds from sale of - - 426 329 investments Other - - - (450 ) Net cash used in investing (55,074 ) (64,435 ) (144,812 ) (170,121 ) activitiesFINANCING ACTIVITIES Proceeds from issuance of - 45,000 40,000 152,000 long-term debt Payment of finance lease (2,124 ) (2,932 ) (7,243 ) (9,743 ) obligations Payment on (4,588 ) (45,588 ) (93,763 ) (142,763 ) long-term debt Repurchase of - (21,692 ) (4,208 ) (25,986 ) senior notes Dividends on - - - (55,445 ) common stock Net cash used in financing (6,712 ) (25,212 ) (65,214 ) (81,937 ) activitiesNet change in cashand cash 53,843 (4,272 ) 87,324 (3,421 )equivalentsCash and cashequivalents at 45,876 10,450 12,395 9,599 beginning ofperiodCash and cashequivalents at end $ 99,719 $ 6,178 $ 99,719 $ 6,178 of period

Consolidated Communications Holdings, Inc. Consolidated Revenue by Category (Dollars in thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Commercial and carrier:Data andtransportservices $ 90,153 $ 88,756 $ 269,297 $ 265,420 (includesVoIP)Voice 45,343 46,606 136,838 141,812 servicesOther 10,909 11,828 33,027 40,394 146,405 147,190 439,162 447,626 Consumer: Broadband(VoIP and 67,163 65,456 196,806 192,609 Data)Video 18,452 20,463 56,796 61,540 servicesVoice 42,775 45,487 129,072 136,601 services 128,390 131,406 382,674 390,750 Subsidies 18,064 18,025 54,587 54,318 Network 32,009 34,211 93,947 105,000 accessOtherproducts and 2,198 2,494 7,534 7,813 servicesTotaloperating $ 327,066 $ 333,326 $ 977,904 $ 1,005,507 revenue

Consolidated Communications Holdings, Inc.Consolidated Revenue Trend by Category(Dollars in thousands)(Unaudited) Three Months Ended Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Commercial and carrier:Data andtransportservices $ 90,153 $ 89,572 $ 89,572 $ 89,905 $ 88,756 (includesVoIP)Voice 45,343 45,775 45,720 46,510 46,606 servicesOther 10,909 10,406 11,712 12,500 11,828 146,405 145,753 147,004 148,915 147,190 Consumer: Broadband(VoIP and 67,163 65,567 64,076 64,474 65,456 Data)Video 18,452 19,213 19,131 19,838 20,463 servicesVoice 42,775 43,121 43,176 44,238 45,487 services 128,390 127,901 126,383 128,550 131,406 Subsidies 18,064 18,069 18,454 18,122 18,025 Network 32,009 30,473 31,465 33,056 34,211 accessOtherproducts and 2,198 2,980 2,356 2,392 2,494 servicesTotaloperating $ 327,066 $ 325,176 $ 325,662 $ 331,035 $ 333,326 revenue

Consolidated Communications Holdings, Inc.Schedule of Adjusted EBITDA Calculation(Dollars in thousands)(Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net income $ 14,582 $ 389 $ 44,140 $ (14,109 )(loss)Add (subtract):Income taxexpense 4,576 1,204 13,892 (5,719 )(benefit)Interest 31,661 34,250 95,215 103,270 expense, netDepreciationand 80,220 93,048 244,024 289,595 amortizationEBITDA 131,039 128,891 397,271 373,037 Adjustments to EBITDA (1):Other, net (2) 35 1,141 (3,280 ) 13,840 Investmentincome (11,510 ) (11,254 ) (31,269 ) (30,605 )(accrualbasis)Investmentdistributions 12,350 10,905 32,046 28,823 (cash basis)Pension/OPEB (1,937 ) 483 (3,107 ) 3,690 expenseGain onextinguishment - (1,121 ) (234 ) (1,370 )of debtNon-cashcompensation 2,263 1,928 5,487 5,240 (3)Adjusted $ 132,240 $ 130,973 $ 396,914 $ 392,655 EBITDA Notes: (1) These adjustments reflect those required or permitted by the lenders underour credit agreement.(2) Other, net includes income attributable to noncontrolling interests,acquisition and non-recurring related costs, and certain miscellaneous items.(3) Represents compensation expenses in connection with our Restricted SharePlan, which because of the non-cash nature of the expenses are excluded fromadjusted EBITDA.

Consolidated Communications Holdings, Inc.Schedule of Free Cash Flow Calculation(Dollars in thousands)(Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net cashprovided by $ 115,629 $ 85,375 $ 297,350 $ 248,637 operatingactivitiesAdd (subtract):Capital (55,978 ) (64,575 ) (152,215 ) (184,343 )expendituresDividends - - - (55,445 )paidProceedsfrom the 904 140 6,977 14,343 sale ofassetsFree cash $ 60,555 $ 20,940 $ 152,112 $ 23,192 flow

Consolidated Communications Holdings, Inc.Total Net Debt to LTM Adjusted EBITDA Ratio(Dollars in thousands)(Unaudited) Sept. 30,Summary of Outstanding Debt: 2020 Term loans, net of discount $4,533 $ 1,766,416 Senior unsecured notes due 2022, net of discount $1,486 439,023 Finance leases 18,273 Total debt as of September 30, 2020 2,223,712 Less deferred debt issuance costs (6,057 )Less cash on hand (99,719 )Total net debt as of September 30, 2020 $ 2,117,936 Adjusted EBITDA for the twelve months ended September 30, 2020 $ 527,799 Total Net Debt to last twelve months Adjusted EBITDA 4.01x

Consolidated Communications Holdings, Inc.Total Net Debt to LTM Adjusted EBITDA Ratio - Pro Forma(Dollars in thousands)(Unaudited) Pro Forma Sept. 30,Summary of Outstanding Debt: 2020 Term loans, net of discount of $18,750 $ 1,231,250 Senior secured notes due 2028 750,000 Finance leases 18,273 Total debt 1,999,523 Less deferred debt issuance costs (25,000 )Less cash on hand (142,043 )Total net debt $ 1,832,480 Adjusted EBITDA for the twelve months ended September 30, 2020 $ 527,799 Total Net Debt to last twelve months Adjusted EBITDA - Pro Forma 3.47x Notes: Pro Forma net debt leverage ratio represents the effects of the refinancingand Searchlight Stage 1 investment of $350 million as if it was completed on September 30, 2020.

Consolidated Communications Holdings, Inc.Adjusted Net Income (Loss) and Net Income (Loss) Per Share(Dollars in thousands, except per share amounts)(Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net income (loss) $ 14,582 $ 389 $ 44,140 $ (14,109 )Integration andseverance related - 2,761 31 10,931 costs, net of taxStorm costs(recoveries), net 6 - (104 ) (257 )of taxGain onextinguishment of - (724 ) 178 (930 )debt, net of taxNon-cash interestexpense for (187 ) (152 ) (568 ) 78 swaps, net of taxOther, tax - 639 - 639 Non-cash stockcompensation, net 1,722 1,245 4,176 3,558 of taxAdjusted net $ 16,123 $ 4,158 $ 47,853 $ (90 )income (loss) Weighted averagenumber of shares 71,153 70,813 71,153 70,813 outstandingAdjusted dilutednet income (loss) $ 0.23 $ 0.06 $ 0.67 $ - per share Notes: Calculations above assume a 23.9% and 35.4% effective tax rate for the threemonths ended and 23.9% and 32.1% for the nine months ended September 30, 2020and 2019, respectively.

Consolidated Communications Holdings, Inc.Key Operating Statistics(Unaudited) Sept. June % Sept. % 30, 30, Change 30, Change 2020 2020 in Qtr 2019 YOY Voice Connections 794,333 809,457 (1.9%) 854,430 (7.0%) Data and Internet 792,211 791,203 0.1% 784,151 1.0%Connections Video Connections 77,854 80,053 (2.7%) 86,446 (9.9%) Business and Broadband as 75.9% 76.1% (0.3%) 75.6% 0.4%% of total revenue (1) Fiber route network miles(long-haul, metro and 46,326 45,847 1.0% 37,359 24.0%FTTH) (2) On-net buildings 13,202 12,882 2.5% 11,732 12.5% Consumer Customers 562,587 569,148 (1.2%) 602,482 (6.6%) Consumer ARPU $76.07 $74.91 1.5% $72.70 4.6% Notes: (1) Business and Broadband revenue % includes: commercial/carrier, equipmentsales and service, directory, consumer broadband and special access.(2) FTTH miles added to fiber route network miles beginning in Q2 2020, whichwere previously not included. Prior period amounts have not been restated tothe current period presentation.