ENGLEWOOD, Colo., Aug. 5, 2021 /PRNewswire/ -- WideOpenWest,
Inc. ("WOW!" or the "Company") (NYSE: WOW), one of the nation's
leading broadband providers, with an efficient, high-performing
network that passes more than three million residential, business
and wholesale consumers, today announced financial and operating
results for the second quarter ended June
30, 2021.
Second Quarter 2021
Highlights (1)(2)
- Total Revenue of $287.3 million;
Net Income of $12.4 million; Diluted
Earnings Per Share of $0.15
- HSD Revenue totaled $156.4
million, an increase of $19.1
million, or 14%, compared to second quarter of 2020
- Adjusted EBITDA was $117.8
million, an increase of $16.5
million, or 16%, compared to the second quarter of 2020
- Adjusted EBITDA margin of 41.0% compared to 35.9% for the
quarter ended June 30, 2020
- Free Cash Flow totaled $23.1
million
- Added 3,400 HSD RGUs
- Announced two transactions to sell five service areas for a
combined $1.8 billion
Year-to-Date 2021
Highlights (1)(2)
- Total Revenue of $573.6 million;
Net Income of $22.0 million; Diluted
Earnings Per Share of $0.27
- HSD Revenue totaled $309.1
million, an increase of $35.2
million, or 13%, compared to the corresponding period of
2020
- Adjusted EBITDA was $230.2
million, an increase of $29.8
million, or 15%, compared to the corresponding period of
2020
- Adjusted EBITDA margin of 40.1% compared to 35.4% for the six
months ended June 30, 2020
- Free Cash Flow totaled $41.4
million
- Added 13,400 HSD RGUs
(1)
|
Refer to "Non-GAAP
Financial Measures" "Unaudited Reconciliations of GAAP Measures to
Non-GAAP Measures, "and Subscriber Information" in this Press
Release for definitions and information related to Adjusted EBITDA,
Free Cash Flow and reconciliation of non-GAAP measures to the
closest comparable GAAP measures and why our management thinks it
is beneficial to present such non-GAAP measures.
|
(2)
|
On June 30, 2021,
the Company announced the pending sale of certain assets together
with certain liabilities of five service areas. For presentation
purposes related to this announcement, the related assets,
liabilities and financial results of these five service areas were
classified as discontinued operations. Refer to tables that follow
for the reconciliation of continuing and discontinued
operations.
|
"Our broadband-first strategy continues to drive our business
forward with another record quarter of high-speed data revenue,
strong Adjusted EBITDA and EBITDA margins, all up significantly
from the same period last year," said Teresa Elder, WOW!'s CEO. "In addition to our
strong results, the recently announced agreements to sell five
service areas in two separate transactions for a combined
$1.8 billion, reflects the
attractiveness of our assets and enhances our overall financial
strength and flexibility."
"We continue to deliver excellent high-speed data revenue and
Adjusted EBITDA growth as we maintain an aggressive focus on
execution and delivering returns to shareholders," said
John Rego, WOW!'s CFO. "An Adjusted
EBITDA margin of 41%, free cash flow in the quarter above
$23 million and a leverage ratio of
4.8x, all demonstrate the strength of our business and
broadband-first strategy."
Revenue
Total Revenue was $287.3 million for the quarter ended
June 30, 2021, up $5.3 million,
or 2%, as compared to the corresponding period in 2020.
Total Subscription Revenue for the quarter ended June 30,
2021 was $269.4 million, up
$5.5 million, or 2%, as compared to
the corresponding period in 2020. The increase was driven by an
increase in average revenue per unit ("ARPU") as HSD customers
upgrade to higher speed offerings coupled with an increase in
volume attributable exclusively to the addition of HSD Subscribers.
These increases were partially offset by a shift in service
offering mix, as the Company continues to experience a reduction in
Video and Telephony RGUs.
Other Business Services Revenue totaled $6.1 million for the quarter ended June 30,
2021, down $0.3 million as compared
to the corresponding period in 2020. The decrease is primarily
due to a decrease in data center revenue.
Other Revenue totaled $11.8
million for the quarter ended June 30, 2021, up
$0.1 million as compared to the
corresponding period in 2020, primarily due to increases in
advertising revenue.
Costs and Expenses
Operating Expenses (excluding
Depreciation and Amortization) totaled $132.7 million for the quarter ended
June 30, 2021, down $13.1
million, or 9%, compared to the corresponding period in 2020
primarily due to lower direct expenses, specifically programming
expense, which aligns with the reduction in Video RGUs between
periods. Selling, General, and Administrative expenses totaled
$48.3 million for the quarter ended
June 30, 2021, up $4.4 million,
or 10%, compared to the corresponding period in 2020, primarily due
to increases in marketing, stock compensation, professional service
and legal expenses.
Net Income and Earnings Per Share
Net Income for the
quarter ended June 30, 2021 was $12.4
million, compared to $2.2
million for the quarter ended June 30, 2020. Diluted
Earnings Per Share for the quarter ended June 30, 2021 was
$0.15, compared to Diluted Earnings
Per Share of $0.03 for the quarter
ended June 30, 2020.
Adjusted EBITDA
Adjusted EBITDA for the quarter ended
June 30, 2021 was $117.8
million, an increase of $16.5
million, compared to the corresponding period in 2020.
Adjusted EBITDA margin was 41.0% for the quarter ended
June 30, 2021, as compared to 35.9% for the quarter ended
June 30, 2020.
Subscribers
WOW! reported Total Subscribers of 857,400
as of June 30, 2021, an increase of 12,900, or 2%, compared to
June 30, 2020, up 2,700 compared to March 31, 2021. HSD RGUs totaled 826,300 as of
June 30, 2021, an increase of 20,700, or 3%, compared to
June 30, 2020, up 3,400 compared to March 31 2021.
Edge-Outs
Edge-Out Projects reached a total of
196,100 homes passed and 49,500 Subscribers since
inception.
The 2019 Edge-Out projects include 8,800 Subscribers, which
represents 17.9% penetration on such nodes. The 2020 Edge-Out
projects include 1,200 Subscribers, which represents 19.5%
penetration on such nodes.
Capital Expenditures
Capital Expenditures totaled
$56.2 million for the quarter ended
June 30, 2021, representing a $1.0
million decrease compared to the quarter ended
June 30, 2020. The decrease is primarily related to
decreased expenditures related to customer premise equipment
("CPE"), partially offset by increases in network enhancements
focused on increasing bandwidth capacity, standardization and
reliability to meet the needs of our customers. Capital
Expenditures for the quarter ended June 30, 2021 equates
to 20% of Total Revenue for the quarter ended
June 30, 2021.
Liquidity and Leverage
As of June 30, 2021, the
total outstanding amount of long-term debt and finance lease
obligations was $2.2 billion,
and cash and cash equivalents were $23.3
million. Total Net Leverage as of June 30, 2021,
was 4.80X on a LTM Adjusted EBITDA basis, down from 5.01X
at March 31, 2021, and undrawn
revolver capacity totaled $261.7
million. Free Cash Flow was $23.1
million for the quarter ended June 30, 2021.
Webcast
WOW! will host a webcast on Thursday, August 5, 2021, at 8:00 a.m. Eastern to discuss the financial and
operating results contained in this press release. The conference
call and webcast will be broadcast live on the Company's investor
relations website at ir.wowway.com. Those parties interested in
participating can use the information as follows:
|
|
|
|
|
|
|
|
|
Call Date:
|
Thursday, August 5,
2021
|
|
Call Time:
|
8:00 a.m.
Eastern
|
|
Dial In:
|
(833)
312-1362
|
|
International:
|
(236)
714-2635
|
|
Conf. ID:
|
5185156
|
|
|
|
|
|
|
|
|
|
|
|
A replay of the call will be available on August 5, 2021, at 11:00
a.m. ET, on the investor relations website or by telephone.
To access the telephone replay, which will be available until
September 3, 2021, at 11:59 p.m. ET, please dial (800) 585-8367
or (416) 621-4642 and use conference ID 5185156.
|
|
|
|
|
|
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(unaudited)
|
|
|
|
|
|
|
|
|
June 30, 2021
|
|
December 31, 2020
|
|
|
(in millions,
except share data)
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
23.3
|
|
$
|
12.4
|
Accounts
receivable—trade, net of allowance for doubtful accounts of $5.2
and $6.7, respectively
|
|
|
38.3
|
|
|
44.4
|
Accounts
receivable—other, net
|
|
|
2.4
|
|
|
2.8
|
Prepaid expenses and
other
|
|
|
35.1
|
|
|
25.0
|
Current assets held for
sale
|
|
|
29.9
|
|
|
30.2
|
Total current
assets
|
|
|
129.0
|
|
|
114.8
|
Right-of-use lease
assets—operating
|
|
|
20.3
|
|
|
22.1
|
Property, plant and
equipment, net
|
|
|
718.6
|
|
|
720.9
|
Franchise operating
rights
|
|
|
620.1
|
|
|
620.1
|
Goodwill
|
|
|
225.1
|
|
|
225.1
|
Intangible assets
subject to amortization, net
|
|
|
1.8
|
|
|
1.9
|
Other non-current
assets
|
|
|
42.3
|
|
|
42.1
|
Non-current assets
held for sale
|
|
|
730.1
|
|
|
740.0
|
Total
assets
|
|
$
|
2,487.3
|
|
$
|
2,487.0
|
Liabilities and
stockholders' deficit
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable—trade
|
|
$
|
29.8
|
|
$
|
32.4
|
Accrued
interest
|
|
|
3.8
|
|
|
4.0
|
Current portion of
long-term lease liability—operating
|
|
|
6.0
|
|
|
5.8
|
Accrued liabilities and
other
|
|
|
70.7
|
|
|
79.7
|
Current portion of
long-term debt and finance lease obligations
|
|
|
70.9
|
|
|
37.5
|
Current portion of
unearned service revenue
|
|
|
30.0
|
|
|
28.6
|
Current liabilities
held for sale
|
|
|
46.9
|
|
|
47.9
|
Total current
liabilities
|
|
|
258.1
|
|
|
235.9
|
Long-term debt and
finance lease obligations—less current portion and debt issuance
costs
|
|
|
2,176.8
|
|
|
2,228.5
|
Long-term lease
liability—operating
|
|
|
16.3
|
|
|
19.0
|
Deferred income
taxes, net
|
|
|
205.0
|
|
|
200.6
|
Other non-current
liabilities
|
|
|
12.9
|
|
|
13.1
|
Non-current
liabilities held for sale
|
|
|
2.4
|
|
|
2.3
|
Total
liabilities
|
|
|
2,671.5
|
|
|
2,699.4
|
Commitments and
contingencies
|
|
|
|
|
|
|
Stockholders'
deficit:
|
|
|
|
|
|
|
Preferred stock,
$0.01 par value, 100,000,000 shares authorized; 0 shares issued and
outstanding
|
|
|
—
|
|
|
—
|
Common stock, $0.01
par value, 700,000,000 shares authorized; 95,888,217 and 95,187,161
issued as
of June 30, 2021 and December 31, 2020,
respectively; 87,111,194 and 86,847,797 outstanding as of
June 30, 2021 and December 31, 2020,
respectively
|
|
|
1.0
|
|
|
1.0
|
Additional paid-in
capital
|
|
|
340.9
|
|
|
333.8
|
Accumulated other
comprehensive income (loss)
|
|
|
—
|
|
|
(6.5)
|
Accumulated
deficit
|
|
|
(438.0)
|
|
|
(460.0)
|
Treasury stock at
cost, 8,777,023 and 8,339,364 shares as of June 30, 2021
and December 31, 2020,
respectively
|
|
|
(88.1)
|
|
|
(80.7)
|
Total stockholders'
deficit
|
|
|
(184.2)
|
|
|
(212.4)
|
Total liabilities and
stockholders' deficit
|
|
$
|
2,487.3
|
|
$
|
2,487.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED
|
(unaudited)
|
|
|
|
|
|
|
|
|
Three months
ended June 30, 2021
|
|
Three months
ended June 30, 2020
|
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
|
(in millions,
except per share data)
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSD
|
|
$
|
98.7
|
|
$
|
57.7
|
|
$
|
156.4
|
|
$
|
86.9
|
|
$
|
50.4
|
|
$
|
137.3
|
Video
|
|
|
55.3
|
|
|
36.4
|
|
|
91.7
|
|
|
61.9
|
|
|
40.6
|
|
|
102.5
|
Telephony
|
|
|
14.6
|
|
|
6.7
|
|
|
21.3
|
|
|
16.9
|
|
|
7.2
|
|
|
24.1
|
Total subscription
services revenue
|
|
|
168.6
|
|
|
100.8
|
|
|
269.4
|
|
|
165.7
|
|
|
98.2
|
|
|
263.9
|
Other business
services
|
|
|
5.7
|
|
|
0.4
|
|
|
6.1
|
|
|
6.0
|
|
|
0.4
|
|
|
6.4
|
Other
|
|
|
7.6
|
|
|
4.2
|
|
|
11.8
|
|
|
7.7
|
|
|
4.0
|
|
|
11.7
|
Total
revenue
|
|
|
181.9
|
|
|
105.4
|
|
|
287.3
|
|
|
179.4
|
|
|
102.6
|
|
|
282.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (excluding
depreciation
and amortization)
|
|
|
95.1
|
|
|
37.6
|
|
|
132.7
|
|
|
102.8
|
|
|
43.0
|
|
|
145.8
|
Selling, general and
administrative
|
|
|
45.5
|
|
|
2.8
|
|
|
48.3
|
|
|
41.5
|
|
|
2.4
|
|
|
43.9
|
Depreciation and
amortization
|
|
|
42.4
|
|
|
20.5
|
|
|
62.9
|
|
|
37.2
|
|
|
19.6
|
|
|
56.8
|
|
|
|
183.0
|
|
|
60.9
|
|
|
243.9
|
|
|
181.5
|
|
|
65.0
|
|
|
246.5
|
(Loss) income from
operations
|
|
|
(1.1)
|
|
|
44.5
|
|
|
43.4
|
|
|
(2.1)
|
|
|
37.6
|
|
|
35.5
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (expense)
income
|
|
|
(28.8)
|
|
|
0.4
|
|
|
(28.4)
|
|
|
(32.4)
|
|
|
—
|
|
|
(32.4)
|
(Loss) gain on sale of
assets, net
|
|
|
(0.1)
|
|
|
0.2
|
|
|
0.1
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
Other income,
net
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
(Loss) income before
provision
for income taxes
|
|
|
(30.0)
|
|
|
45.2
|
|
|
15.2
|
|
|
(34.0)
|
|
|
37.6
|
|
|
3.6
|
Income tax benefit
(expense)
|
|
|
7.5
|
|
|
(10.3)
|
|
|
(2.8)
|
|
|
7.6
|
|
|
(9.0)
|
|
|
(1.4)
|
Net (loss)
income
|
|
$
|
(22.5)
|
|
$
|
34.9
|
|
$
|
12.4
|
|
$
|
(26.4)
|
|
$
|
28.6
|
|
$
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.27)
|
|
$
|
0.42
|
|
$
|
0.15
|
|
$
|
(0.32)
|
|
$
|
0.35
|
|
$
|
0.03
|
Diluted
|
|
$
|
(0.27)
|
|
$
|
0.42
|
|
$
|
0.15
|
|
$
|
(0.32)
|
|
$
|
0.35
|
|
$
|
0.03
|
Weighted-average
common shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
82,828,227
|
|
|
|
|
|
|
|
|
81,612,359
|
|
|
|
|
|
|
Diluted
|
|
|
82,828,227
|
|
|
|
|
|
|
|
|
81,612,359
|
|
|
|
|
|
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended June 30, 2021
|
|
Six months
ended June 30, 2020
|
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
|
(in millions,
except per share data)
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSD
|
|
$
|
195.3
|
|
$
|
113.8
|
|
$
|
309.1
|
|
$
|
173.3
|
|
$
|
100.6
|
|
$
|
273.9
|
Video
|
|
|
111.7
|
|
|
73.3
|
|
|
185.0
|
|
|
124.5
|
|
|
81.4
|
|
|
205.9
|
Telephony
|
|
|
29.6
|
|
|
13.5
|
|
|
43.1
|
|
|
34.1
|
|
|
14.6
|
|
|
48.7
|
Total subscription
services revenue
|
|
|
336.6
|
|
|
200.6
|
|
|
537.2
|
|
|
331.9
|
|
|
196.6
|
|
|
528.5
|
Other business
services
|
|
|
11.3
|
|
|
1.0
|
|
|
12.3
|
|
|
11.9
|
|
|
1.0
|
|
|
12.9
|
Other
|
|
|
15.5
|
|
|
8.6
|
|
|
24.1
|
|
|
16.3
|
|
|
8.8
|
|
|
25.1
|
Total
revenue
|
|
|
363.4
|
|
|
210.2
|
|
|
573.6
|
|
|
360.1
|
|
|
206.4
|
|
|
566.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (excluding
depreciation
and amortization)
|
|
|
193.5
|
|
|
77.2
|
|
|
270.7
|
|
|
206.9
|
|
|
87.4
|
|
|
294.3
|
Selling, general and
administrative
|
|
|
88.0
|
|
|
5.5
|
|
|
93.5
|
|
|
84.8
|
|
|
5.9
|
|
|
90.7
|
Depreciation and
amortization
|
|
|
83.7
|
|
|
41.0
|
|
|
124.7
|
|
|
73.3
|
|
|
39.3
|
|
|
112.6
|
|
|
|
365.2
|
|
|
123.7
|
|
|
488.9
|
|
|
365.0
|
|
|
132.6
|
|
|
497.6
|
(Loss) income from
operations
|
|
|
(1.8)
|
|
|
86.5
|
|
|
84.7
|
|
|
(4.9)
|
|
|
73.8
|
|
|
68.9
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (expense)
income
|
|
|
(60.2)
|
|
|
0.4
|
|
|
(59.8)
|
|
|
(65.9)
|
|
|
—
|
|
|
(65.9)
|
(Loss) gain on sale of
assets, net
|
|
|
(0.1)
|
|
|
0.2
|
|
|
0.1
|
|
|
0.6
|
|
|
0.1
|
|
|
0.7
|
Other income,
net
|
|
|
0.6
|
|
|
0.1
|
|
|
0.7
|
|
|
0.7
|
|
|
0.1
|
|
|
0.8
|
(Loss) income before
provision for
income taxes
|
|
|
(61.5)
|
|
|
87.2
|
|
|
25.7
|
|
|
(69.5)
|
|
|
74.0
|
|
|
4.5
|
Income tax benefit
(expense)
|
|
|
16.3
|
|
|
(20.0)
|
|
|
(3.7)
|
|
|
15.4
|
|
|
(17.6)
|
|
|
(2.2)
|
Net (loss)
income
|
|
$
|
(45.2)
|
|
$
|
67.2
|
|
$
|
22.0
|
|
$
|
(54.1)
|
|
$
|
56.4
|
|
$
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.55)
|
|
$
|
0.82
|
|
$
|
0.27
|
|
$
|
(0.66)
|
|
$
|
0.69
|
|
$
|
0.03
|
Diluted
|
|
$
|
(0.55)
|
|
$
|
0.82
|
|
$
|
0.27
|
|
$
|
(0.66)
|
|
$
|
0.69
|
|
$
|
0.03
|
Weighted-average
common shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
82,433,311
|
|
|
|
|
|
|
|
|
81,325,795
|
|
|
|
|
|
|
Diluted
|
|
|
82,433,311
|
|
|
|
|
|
|
|
|
81,325,795
|
|
|
|
|
|
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
|
2021
|
|
2020
|
|
|
(in millions)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
22.0
|
|
$
|
2.3
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
124.7
|
|
|
112.6
|
Deferred income
taxes
|
|
|
2.3
|
|
|
0.6
|
Provision for doubtful
accounts
|
|
|
5.3
|
|
|
12.2
|
Gain on sale of
assets, net
|
|
|
(0.1)
|
|
|
(0.7)
|
Amortization of debt
issuance costs and discount
|
|
|
2.4
|
|
|
2.4
|
Non-cash
compensation
|
|
|
7.1
|
|
|
5.7
|
Other non-cash
items
|
|
|
(0.1)
|
|
|
—
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Receivables and other
operating assets
|
|
|
(9.3)
|
|
|
(11.6)
|
Payables and
accruals
|
|
|
2.6
|
|
|
3.8
|
Net cash provided by
operating activities
|
|
$
|
156.9
|
|
$
|
127.3
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
(115.5)
|
|
$
|
(115.2)
|
Other investing
activities
|
|
|
0.9
|
|
|
(0.7)
|
Net cash used in
investing activities
|
|
$
|
(114.6)
|
|
$
|
(115.9)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from issuance
of long-term debt
|
|
$
|
31.0
|
|
$
|
91.0
|
Payments on long-term
debt and finance lease obligations
|
|
|
(55.0)
|
|
|
(82.8)
|
Purchase of
shares
|
|
|
(7.4)
|
|
|
(1.0)
|
Net cash (used in)
provided by financing activities
|
|
$
|
(31.4)
|
|
$
|
7.2
|
Increase (decrease)
in cash and cash equivalents
|
|
|
10.9
|
|
|
18.6
|
Cash and cash
equivalents, beginning of period
|
|
|
12.4
|
|
|
21.0
|
Cash and cash
equivalents, end of period
|
|
$
|
23.3
|
|
$
|
39.6
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
Cash paid during the
periods for interest
|
|
$
|
59.0
|
|
$
|
62.6
|
Cash paid (received)
during the periods for income taxes, net
|
|
$
|
1.7
|
|
$
|
(3.9)
|
Non-cash operating
activities:
|
|
|
|
|
|
|
Operating lease
additions
|
|
$
|
0.9
|
|
$
|
4.8
|
Non-cash financing
activities:
|
|
|
|
|
|
|
Finance lease
additions
|
|
$
|
3.3
|
|
$
|
6.6
|
Capital expenditure
accounts payable and accruals
|
|
$
|
12.2
|
|
$
|
9.8
|
About WOW!
WOW! is a leading broadband services
provider offering high-speed data ("HSD"), cable television
("Video"), and digital telephony ("Telephony") services to
residential and business customers. Our vision is connecting
people to their world through the WOW! experience: reliable, easy,
and pleasantly surprising, every time. For more information, please
visit www.wowway.com.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements in this press release that
are not historical facts contain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. These forward-looking statements
represent our goals, beliefs, plans and expectations about our
prospects for the future and other future events. Forward-looking
statements include all statements that are not historical fact and
can be identified by terms such as "may," "intend," "might,"
"will," "should," "could," "would," "anticipate," "expect,"
"believe," "estimate," "plan," "project," "predict," "potential,"
or the negative of these terms. Although these forward-looking
statements reflect our good-faith belief and reasonable judgment
based on current information, these statements are qualified by
important factors, many of which are beyond our control that could
cause our actual results to differ materially from those in the
forward-looking statements. These factors and other risks that
could cause our actual results to differ materially are set forth
in the section entitled "Risk Factors" in our Annual Report filed
on Form 10-K with the Securities and Exchange Commission ("SEC")
and other reports subsequently filed with the SEC. Given these
uncertainties, you should not place undue reliance on any such
forward-looking statements. The forward-looking statements included
in this report are made as of the date hereof or the date specified
herein, based on information available to us as of such date.
Except as required by law, we assume no obligation to update these
forward-looking statements, even if new information becomes
available in the future.
Non-GAAP Financial Measures
The Company has included
certain non-GAAP financial measures in this release, including
Adjusted EBITDA and Free Cash Flow. These terms, as defined herein,
are not intended to be considered in isolation, as a substitute
for, or superior to, the financial information prepared and
presented in accordance with generally accepted accounting
principles in the United States of
America ("GAAP"). These terms may vary from the use of
similar terms by other companies in our industry due to different
methods of calculation and therefore are not necessarily
comparable.
We believe that these non-GAAP measures enhance an investor's
understanding of our financial performance. We believe that these
non-GAAP measures are useful financial metrics to assess our
operating performance from period to period by excluding certain
items that we believe are not representative of our core business.
We believe that these non-GAAP measures provide investors with
useful information for assessing the comparability between periods
of our ability to generate cash from operations sufficient to pay
taxes, to service debt and to undertake Capital Expenditures. We
use these non-GAAP measures for business planning purposes and in
measuring our performance relative to that of our competitors. We
believe these non-GAAP measures are measures commonly used by
investors to evaluate our performance and that of our
competitors.
Adjusted EBITDA eliminates the impact of expenses that do not
relate to overall business performance and is defined by WOW! as
net income (loss) before interest expense, income taxes,
depreciation and amortization (including impairments), impairment
losses on intangibles and goodwill, write-off of any asset, loss on
early extinguishment of debt, integration and restructuring
expenses and all non–cash charges and expenses (including stock
compensation expense) and certain other income and expenses.
Adjusted EBITDA should not be considered as an alternative to net
income (loss), operating income or any other performance measures
derived in accordance with GAAP as measures of operating
performance, operating cash flows or liquidity.
Free Cash Flow is defined as Net Cash Provided by Operating
Activities less Capital Expenditures. Free Cash Flow presents the
cash generated or used by the business in a given period.
Refer to "Reconciliations of GAAP Measures to Non-GAAP
Measures" and the accompanying tables below for a
reconciliation of Adjusted EBITDA to Net Income, and Net Cash
Provided by Operating Activities to Free Cash Flow which are most
directly comparable to their corresponding GAAP financial
measure.
Subscriber Information
The Company uses the terms
defined below throughout this release.
Homes passed are reported as the number of serviceable
addresses, such as single residence homes, apartments and
condominium units, and businesses passed by our broadband network
and listed in our database.
We deliver multiple services to our customers, as such we report
Total Subscribers as the number of Subscribers who receive at least
one of our HSD, Video or Telephony services, without regard to
which or how many services they subscribe. We define each of the
individual HSD Subscribers, Video Subscribers and Telephony
Subscribers as a Revenue Generating Unit ("RGU").
While we take appropriate steps to ensure subscriber information
is presented on a consistent and accurate basis at any given
balance sheet date, we periodically review our policies in light of
the variability we may encounter across our different markets due
to the nature and pricing of products and services and billing
systems. Accordingly, we may from time to time make appropriate
adjustments to our subscriber information based on such
reviews.
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
Reconciliations of
GAAP Measures to Non-GAAP Measures
|
(unaudited)
|
|
The following table
provides a reconciliation of Adjusted EBITDA to Net Income for the
periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended June 30,
|
|
Six months
ended June 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
(in millions)
|
Net Income
|
|
$
|
12.4
|
|
$
|
2.2
|
|
$
|
22.0
|
|
$
|
2.3
|
Depreciation and
amortization
|
|
|
62.9
|
|
|
56.8
|
|
|
124.7
|
|
|
112.6
|
Interest
expense
|
|
|
28.4
|
|
|
32.4
|
|
|
59.8
|
|
|
65.9
|
Gain on sale of assets,
net
|
|
|
(0.1)
|
|
|
(0.4)
|
|
|
(0.1)
|
|
|
(0.7)
|
Non-recurring
professional fees, M&A integration and restructuring
expense
|
|
|
7.5
|
|
|
6.0
|
|
|
13.7
|
|
|
13.2
|
Non-cash stock
compensation
|
|
|
4.0
|
|
|
3.0
|
|
|
7.1
|
|
|
5.7
|
Other income,
net
|
|
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.7)
|
|
|
(0.8)
|
Income tax
expense
|
|
|
2.8
|
|
|
1.4
|
|
|
3.7
|
|
|
2.2
|
Adjusted
EBITDA
|
|
$
|
117.8
|
|
$
|
101.3
|
|
$
|
230.2
|
|
$
|
200.4
|
The following table
provides a reconciliation of Net Cash Provided by Operating
Activities to Free Cash Flow for the periods
presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended June 30,
|
|
Six months
ended June 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
(in millions)
|
Net Cash Provided by
Operating Activities
|
|
$
|
79.3
|
|
$
|
74.9
|
|
$
|
156.9
|
|
$
|
127.3
|
Less: Capital
Expenditures
|
|
|
(56.2)
|
|
|
(57.2)
|
|
|
(115.5)
|
|
|
(115.2)
|
Free Cash
Flow
|
|
$
|
23.1
|
|
$
|
17.7
|
|
$
|
41.4
|
|
$
|
12.1
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
Capital
Expenditures and Subscriber Information
|
(unaudited)
|
|
The following table
provides additional information regarding our Capital Expenditures
for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended June 30,
|
|
Six months
ended June 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
(in millions)
|
Customer premise
equipment
|
|
$
|
25.7
|
|
$
|
35.6
|
|
$
|
56.3
|
|
$
|
70.4
|
Scalable
infrastructure
|
|
|
12.5
|
|
|
7.0
|
|
|
24.9
|
|
|
12.8
|
Line
extensions
|
|
|
4.9
|
|
|
3.6
|
|
|
9.8
|
|
|
9.2
|
Support capital and
other
|
|
|
13.1
|
|
|
11.0
|
|
|
24.5
|
|
|
22.8
|
Total
|
|
$
|
56.2
|
|
$
|
57.2
|
|
$
|
115.5
|
|
$
|
115.2
|
Capital expenditures
included in total related to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Edge-outs
|
|
$
|
1.6
|
|
$
|
1.6
|
|
$
|
3.0
|
|
$
|
4.7
|
Business
services
|
|
$
|
4.6
|
|
$
|
3.8
|
|
$
|
9.6
|
|
$
|
9.4
|
The following table
provides an unaudited summary of our subscriber
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30, 2020
|
|
September
30, 2020
|
|
December
31, 2020 (1)
|
|
March
31, 2021
|
|
June
30, 2021
|
Homes
Passed
|
|
3,237,700
|
|
3,242,400
|
|
3,248,600
|
|
3,251,900
|
|
3,275,200
|
Total
Subscribers
|
|
844,500
|
|
846,300
|
|
846,100
|
|
854,700
|
|
857,400
|
HSD RGUs
|
|
805,600
|
|
808,900
|
|
812,900
|
|
822,900
|
|
826,300
|
Video RGUs
|
|
351,700
|
|
328,000
|
|
306,100
|
|
288,800
|
|
272,100
|
Telephony
RGUs
|
|
188,100
|
|
182,000
|
|
176,300
|
|
172,100
|
|
167,800
|
Total RGUs
|
|
1,345,400
|
|
1,318,900
|
|
1,295,300
|
|
1,283,800
|
|
1,266,200
|
|
|
(1)
|
The Company
combined certain billing systems during the second quarter of 2021,
which standardized the statistical reporting of key metrics. The
standardized reporting led to the following decreases for
subscriber and RGU counts as of December 31, 2020: total
subscribers (4,500), HSD RGUs (900), Video RGUs (2,100), Telephony
RGUs (700), and Total RGUs (3,700).
|
Additional Information Available on Website:
The
information in this press release should be read in conjunction
with the financial statements and footnotes contained in the
Company's Quarterly Report on Form 10-Q for the quarter ended
June 30, 2021, which will be posted
on of our investor relations website at ir.wowway.com, when it
is filed with the Securities and Exchange Commission (the
"SEC"). A slide presentation to accompany the conference call
and a trending schedule containing historical customer and
financial data will also be available on our website.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/wow-reports-second-quarter-2021-results-301348908.html
SOURCE WideOpenWest, Inc.