Content analysis
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H.S. freshman Avg
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New words:
calendar, California, commercial, compelled, conferring, Confidentiality, constantly, consumer, coverage, cycle, deadline, dealer, Department, efficiently, emerging, environment, force, foreclosure, geographic, German, harm, introduced, inventory, jeopardize, jeopardizing, joint, midnight, mix, modification, predict, produce, profitability, proliferation, qualification, released, requisite, resale, reserved, resolve, retroactive, roaming, serve, Settlement, Simplifying, slowdown, soliciting, spectrum, spending, technological, tender, tendered, treated, validly, waiver
Removed:
decline
Financial report summary
?Risks
- Litigation challenging the Merger Agreement may prevent the Merger from being consummated at all or within the expected timeframe.
- We have historically generated net losses since our inception and could incur losses in the future.
- Since our inception, we have used more cash than we have generated from operations, and we may continue to do so.
- Our revenue is relatively concentrated among a small number of customers, and the loss of any of these customers could significantly harm our business, financial condition, results of operations, and cash flows.
- Future acquisitions are a component of our strategic plan, and will include integration and other risks that could harm our business.
- We are growing rapidly and may not maintain or efficiently manage our growth.
- If we fail to hire and retain qualified executives, managers and employees, our operating results could be harmed.
- We have agreements with customers that are dependent on government funding, which may not be available.
- Any failure of our physical infrastructure or offerings could lead to significant costs and disruptions.
- We use franchises, licenses, permits, rights-of-way, conduit leases, fiber agreements, and property leases, which could be canceled or not renewed.
- Our operations, financial performance and liquidity are materially reliant on key suppliers and vendors.
- We are required to maintain, repair, upgrade, and replace our network and our facilities, the cost of which could materially impact our results and our failure to do so could irreparably harm our business.
- Our debt level could negatively impact our financial condition, results of operations, cash flows, and business prospects and could prevent us from fulfilling our obligations under our outstanding indebtedness. In the future, we may incur substantially more indebtedness, which could further increase the risks associated with our leverage.
- We may not be able to generate enough cash flow to meet our debt obligations.
- Our debt agreements contain restrictions on our ability to operate our business and to pursue our business strategies, and our failure to comply with these covenants could result in an acceleration of our indebtedness.
- Our future tax liabilities are not predictable or controllable. If we become subject to increased levels of taxation, our financial condition and operations could be negatively impacted.
- We cannot assure you whether, when or in what amounts we will be able to use our net operating losses, or when they will be depleted.
- We may be subject to interest rate risk and increasing interest rates may increase our interest expense.
- The international operations of our business expose us to risks that could materially and adversely affect the business.
- We may be vulnerable to security breaches that could disrupt our operations and adversely affect our business.
- Volatility in the equity markets, interest rates or other factors could substantially increase our pension costs.
- Lapses in disclosure controls and procedures or internal control over financial reporting could materially and adversely affect our operations, profitability or reputation.
- We could face increased competition from companies in the telecommunications and media industries that currently do not focus on bandwidth infrastructure.
- Consolidation among companies in the telecommunications and cable television industries could further strengthen our competitors and adversely impact our business.
- Certain of our offerings and facilities are subject to regulation that could change or otherwise impact us in an adverse manner.
- We may be liable for the material that content providers distribute over our network.
- Unfavorable general global economic conditions could negatively impact our operating results and financial condition.
- Disruptions in the financial markets could affect our ability to obtain debt or equity financing or to refinance our existing indebtedness on reasonable terms or at all.
- Changes in our usage patterns or industry practice could result in increasing peering costs for our IP network.
- Terrorism and natural disasters could adversely impact our business.
- Rapid changes in technology could affect our ability to compete for business customers.
- Our stock price may be volatile or may decline regardless of our operating performance.
- If securities or industry analysts do not continue to publish or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.
- Sales of substantial amounts of our common stock in the public market, or the perception that they might occur, could reduce the price that our common stock might otherwise attain.
- Delaware law and our restated certificate of incorporation and restated bylaws contain provisions that could delay or discourage takeover attempts.
- Our directors, executive officers, holders of more than 5% of our common stock, together with their affiliates, continue to have substantial control over the company.
- Unless we convert to a REIT, we do not intend to pay dividends for the foreseeable future.
- Although we have completed the first phase of our investigation on the advisability and feasibility of a conversion to a REIT, we can provide no assurance that we will ultimately pursue a REIT conversion or whether any such conversion will be successful.
- If we convert to a REIT, we may, nevertheless, not qualify or remain qualified for taxation as a REIT.
- If we convert to a REIT, we may not realize the anticipated benefits to stockholders, including the achievement of significant tax savings for us and regular distributions to our stockholders.
- If we convert to a REIT, complying with REIT qualification requirements may limit our flexibility or cause us to forgo otherwise attractive opportunities.
- If we convert to a REIT, we may restructure or issue debt or raise equity to satisfy conversion costs and the requirement that we distribute our accumulated earnings and profits.
- There are uncertainties relating to the costs associated with implementing a possible REIT conversion.
- Restrictive loan covenants could prevent us from satisfying REIT distribution requirements.
- We have no experience operating as a REIT, which may adversely affect our business, financial condition or results of operations if we convert to a REIT.
Management Discussion
- Our total revenue decreased by $24.5 million, or 1%, to $2,578.0 million for the year ended June 30, 2019, from $2,602.5 million for the year ended June 30, 2018.
- We estimate that the period-over-period pro-forma organic revenue decreased by approximately 2%. Our pro-forma revenue decline was primarily driven by churn that exceeded installs at our Allstream segment and by changes in exchange rates. The average exchange rate of the GBP against the USD weakened by 3.9%, the average exchange rate of the Euro against the USD weakened by 4.4%, and the average exchange rate of the CAD against the USD weakened by 4.1% during the year ended June 30, 2019 as compared to the year ended June 30, 2018. Normalizing our estimated pro-forma organic revenue to exclude the impact of foreign currency exchange rate fluctuations, we estimate that Fiscal 2019 pro-forma organic revenue would have decreased by $20.9 million compared to Fiscal 2018 pro forma organic revenue.
- During the year ended June 30, 2019, the Company recognized net installs of $5.4 million as compared to $6.5 million during the year ended June 30, 2018, excluding Allstream.