Company Plans for Capital Management and Operational Efficiency in 2024

2024-01-30

In a recent meeting, the company discussed its outlook for capital management and operating performance in 2024. They expressed confidence in their ability to bring down capital management and improve operating performance during that year.

Regarding leasing activity, the company expects it to be level-loaded throughout 2024, with slightly more activity in the second half of the year.

To improve operational efficiency, the company plans to appoint Chief Operating Officers (COOs) with profit and loss (P&L) responsibility. They also mentioned previous consolidation efforts as part of their strategy.

Despite this, the company confirmed that they will continue to add to their backlog for small cells, although not all additions may be announced. However, they anticipate a decrease in the backlog for small cells in 2024 as they deliver nodes and generate revenue.

When it comes to capital allocation, the company stated that they have largely avoided allocating more capital to towers and will continue to do so.

During the meeting, the company mentioned a strategic review that is currently underway. The purpose of this review is to consider all options for capital allocation. Richard, a representative of the company, emphasized that all options are on the table with this strategic review.

Eric Luebchow from Wells Fargo Securities raised a question about the possibility of divesting fiber solutions while retaining the small cell business. In response, Tony Melone, the Interim Chief Executive Officer, stated that all options are being considered and it would be speculative to suggest any option as more likely than another at this point.

Another question posed by Eric Luebchow focused on operating the business more capital efficiently without sacrificing future growth. Tony Melone responded by stating that they can indeed improve how they operate the business without impacting future growth prospects.

Overall, the meeting provided insights into the company's plans for capital management, operating performance, and operational efficiency. With the strategic review underway, it remains to be seen what specific actions the company will take in the future.