ENGLEWOOD, Colo., Nov. 8, 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 1.9 million residential, business and wholesale
consumers, today announced financial and operating results for the
third quarter ended September 30,
2021.
Third Quarter 2021
Highlights (1)(2)
- Total Revenue from continuing operations of $184.0 million, an increase of $0.9 million, compared to the third quarter of
2020
- HSD Revenue from continuing operations totaled $103.3 million, an increase of $13.2 million, or 15%, compared to the third
quarter of 2020
- Net Loss from continuing operations was $21.2 million for the quarter ended September 30, 2021
- Pro Forma Adjusted EBITDA was $66.7
million, an increase of $3.8
million, or 6%, compared to the third quarter of 2020
- Pro Forma Adjusted EBITDA margin of 36.3% compared to 34.4% for
the third quarter of 2020
- Free Cash Flow totaled $30.7
million
- Added 1,600 HSD RGUs
- Completed the sale of five service areas in two separate
transactions totaling $1.8
billion(2)
Year-to-Date 2021
Highlights (1)(2)
- Total Revenue from continuing operations of $547.4 million, an increase of $4.2 million, or 1%, compared to the
corresponding period of 2020
- HSD Revenue from continuing operations totaled $298.6 million, an increase of $35.2 million, or 13%, compared to the
corresponding period of 2020
- Net Loss from continuing operations was $66.4 million for the nine months ended
September 30, 2021
- Pro Forma Adjusted EBITDA was $192.6
million, an increase of $21.0
million, or 12%, compared to the corresponding period of
2020
- Pro Forma Adjusted EBITDA margin of 35.2% compared to 31.6% for
the corresponding period of 2020
- Free Cash Flow totaled $72.1
million
- Added 10,700 HSD RGUs
"Our strong third quarter results highlight the strength of our
core business following the divestiture of five service
areas. We continued to produce topline growth driven by
high-speed data revenue from continuing operations which increased
15% from the same period last year," said Teresa Elder, WOW!'s CEO. "We are also now in a
great position, given the significant reduction in our debt, to
invest in growth and accelerate our broadband-first strategy."
"WOW!'s growth in high-speed data revenue from continuing
operations, coupled with an increase in pro forma
adjusted EBITDA and our strengthened balance sheet, brings our
leverage ratio to a historic low of 2.6x," said
John Rego, WOW!'s CFO. "With
positive free cash flow, we are excited about the opportunity to
further grow our business, driving additional value for our
customers, employees and shareholders."
(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 Pro Forma
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. On September 1,
2021 and November 1, 2021, the Company announced the completion of
the sale of two and three of the five service areas, respectively.
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.
|
Revenue
Total Revenue from continuing operations was
$184.0 million for the quarter ended
September 30, 2021, up $0.9
million, as compared to the corresponding period in
2020.
Total Subscription Revenue from continuing operations for the
quarter ended September 30, 2021 was $170.3 million, up $1.3
million, or 1%, as compared to the corresponding period in
2020. The increase was driven by an increase in average revenue per
unit ("ARPU") as HSD customers continue to purchase higher speed
tiers; coupled with HSD and Video rate increases issued in 2021 and
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 from continuing operations
totaled $5.6 million for the quarter
ended September 30, 2021, down $0.2
million as compared to the corresponding period in
2020. The decrease is primarily due to a decrease in data
center revenue.
Other Revenue from continuing operations totaled $8.1 million for the quarter ended
September 30, 2021, down $0.2
million as compared to the corresponding period in 2020,
primarily due to decreases in line assurance revenue and service
call fee revenue, partially offset by a slight increase in
advertising revenue.
Costs and Expenses
Operating Expenses (excluding
Depreciation and Amortization) from continuing operations totaled
$93.4 million for the quarter ended
September 30, 2021, down $6.3
million, or 6%, 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 from
continuing operations totaled $44.8
million for the quarter ended September 30, 2021, up
$4.6 million, or 11%, compared to the
corresponding period in 2020 primarily due to increases in
marketing, compensation (including stock compensation),
and professional service and legal expenses, partially offset
by decreases in costs associated with digital transformation
initiatives.
Net (Loss) Income
Net Loss from continuing operations
for the quarter ended September 30,
2021 was $21.2 million as
compared to $20.3 million for the
quarter ended September 30, 2020.
Pro Forma Adjusted EBITDA
Pro Forma Adjusted EBITDA
for the quarter ended September 30, 2021 was $66.7 million, an increase of $3.8 million, compared to the corresponding
period in 2020. Pro Forma Adjusted EBITDA margin was 36.3% for the
quarter ended September 30, 2021 as compared to 34.4% for the
quarter ended September 30, 2020.
Subscribers
WOW! reported Total Subscribers from
continuing operations of 531,600 as of September 30, 2021, an
increase of 6,800, or 1%, compared to September 30, 2020, up
1,000 compared to June 30, 2021. HSD
RGUs totaled 509,500 as of September 30, 2021, an increase of
12,900, or 3%, compared to September 30, 2020, up 1,600
compared to June 30, 2021.
Edge-outs
Edge-out projects from continuing
operations reached a total of 78,000 homes passed and 19,000
Subscribers since inception.
The 2019 Edge-out projects from continuing operations include
1,900 Subscribers, which represents 18.8% penetration on such
nodes. The 2020 Edge-out projects from continuing operations
include 700 Subscribers, which represents 20.6% penetration on such
nodes. The 2021 Edge-out projects from continuing operations
include 400 Subscribers, which represents 21.1% penetration on such
nodes.
Capital Expenditures
Capital Expenditures from
continuing operations totaled $40.7
million for the quarter ended September 30, 2021,
representing a $5.9 million
increase compared to the quarter ended
September 30, 2020. The slight increase is primarily due
to an increase in expenditures related to customer premise
equipment ("CPE") and network enhancements focused on increasing
bandwidth capacity, standardization and reliability to meet the
needs of our customers. Capital Expenditures from continuing
operations for the quarter ended September 30, 2021
equates to 22% of Total Revenue from continuing operations for the
quarter ended September 30, 2021.
Liquidity and Leverage
As of September 30, 2021,
the total outstanding amount of long-term debt and finance lease
obligations was $1.1 billion,
and cash and cash equivalents were $59.6
million. Total Net Leverage as of September 30, 2021,
was 2.6X on a LTM Pro Forma Adjusted EBITDA basis and undrawn
revolver capacity totaled $270.7
million. Free Cash Flow was $30.7
million for the quarter ended September 30, 2021.
Webcast
WOW! will host a webcast on Monday, November 8, 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:
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Call Date:
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Monday, November 8,
2021
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Call Time:
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8:00 a.m.
Eastern
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Dial In:
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(888)
330-3556
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International:
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(646)
960-0826
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Conf. ID:
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4844814
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A replay of the call will be available on November 8, 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
November 19, 2021, at 11:59 p.m. ET, please dial (800) 770-2030 or
(647) 362-9199 and use conference ID 4844814.
Investor Day
WOW! will host a virtual investor day on
Thursday, December 9, 2021, at
12:30 p.m. Eastern. The webcast and
presentation materials will be accessible through WOW!'s investor
relations website at ir.wowway.com. Additional details regarding
the Investor Day, including the agenda and list of speakers will be
announced prior to the event.
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2021
|
|
2020
|
|
|
(in millions,
except share data)
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
59.6
|
|
$
|
12.4
|
Accounts
receivable—trade, net of allowance for doubtful accounts of $5.7
and $6.7, respectively
|
|
|
39.5
|
|
|
44.4
|
Accounts
receivable—other, net
|
|
|
10.3
|
|
|
2.8
|
Prepaid expenses and
other
|
|
|
28.3
|
|
|
16.0
|
Current assets held for
sale
|
|
|
15.5
|
|
|
39.2
|
Total current
assets
|
|
|
153.2
|
|
|
114.8
|
Right-of-use lease
assets—operating
|
|
|
18.8
|
|
|
22.1
|
Property, plant and
equipment, net
|
|
|
718.8
|
|
|
720.9
|
Franchise operating
rights
|
|
|
620.2
|
|
|
620.1
|
Goodwill
|
|
|
225.1
|
|
|
225.1
|
Intangible assets
subject to amortization, net
|
|
|
1.7
|
|
|
1.9
|
Other non-current
assets
|
|
|
42.3
|
|
|
42.1
|
Non-current assets
held for sale
|
|
|
337.1
|
|
|
740.0
|
Total
assets
|
|
$
|
2,117.2
|
|
$
|
2,487.0
|
Liabilities and
stockholders' equity (deficit)
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable—trade
|
|
$
|
49.9
|
|
$
|
32.4
|
Accrued
interest
|
|
|
2.1
|
|
|
4.0
|
Current portion of
long-term lease liability—operating
|
|
|
6.0
|
|
|
5.8
|
Accrued liabilities and
other
|
|
|
185.8
|
|
|
79.7
|
Current portion of
long-term debt and finance lease obligations
|
|
|
33.9
|
|
|
37.5
|
Current portion of
unearned service revenue
|
|
|
28.5
|
|
|
28.6
|
Current liabilities
held for sale
|
|
|
17.5
|
|
|
47.9
|
Total current
liabilities
|
|
|
323.7
|
|
|
235.9
|
Long-term debt and
finance lease obligations—less current portion and debt issuance
costs
|
|
|
1,109.9
|
|
|
2,228.5
|
Long-term lease
liability—operating
|
|
|
14.9
|
|
|
19.0
|
Deferred income
taxes, net
|
|
|
306.0
|
|
|
200.6
|
Other non-current
liabilities
|
|
|
23.5
|
|
|
13.1
|
Non-current
liabilities held for sale
|
|
|
2.0
|
|
|
2.3
|
Total
liabilities
|
|
|
1,780.0
|
|
|
2,699.4
|
Commitments and
contingencies
|
|
|
|
|
|
|
Stockholders' equity
(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; 95,994,859 and 95,187,161
issued as
of September 30, 2021 and December 31, 2020,
respectively; 87,191,153 and 86,847,797 outstanding as
of September 30, 2021 and December 31, 2020,
respectively
|
|
|
1.0
|
|
|
1.0
|
Additional paid-in
capital
|
|
|
345.0
|
|
|
333.8
|
Accumulated other
comprehensive income (loss)
|
|
|
—
|
|
|
(6.5)
|
Accumulated income
(deficit)
|
|
|
79.9
|
|
|
(460.0)
|
Treasury stock at
cost, 8,803,706 and 8,339,364 shares as of
September 30, 2021 and
December 31, 2020, respectively
|
|
|
(88.7)
|
|
|
(80.7)
|
Total stockholders'
equity (deficit)
|
|
|
337.2
|
|
|
(212.4)
|
Total liabilities and
stockholders' equity (deficit)
|
|
$
|
2,117.2
|
|
$
|
2,487.0
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
|
(in millions,
except per share data)
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSD
|
|
$
|
103.3
|
|
$
|
46.4
|
|
$
|
149.7
|
|
$
|
90.1
|
|
$
|
52.5
|
|
$
|
142.6
|
Video
|
|
|
52.8
|
|
|
27.8
|
|
|
80.6
|
|
|
63.0
|
|
|
40.9
|
|
|
103.9
|
Telephony
|
|
|
14.2
|
|
|
5.3
|
|
|
19.5
|
|
|
15.9
|
|
|
7.1
|
|
|
23.0
|
Total subscription
services revenue
|
|
|
170.3
|
|
|
79.5
|
|
|
249.8
|
|
|
169.0
|
|
|
100.5
|
|
|
269.5
|
Other business
services
|
|
|
5.6
|
|
|
0.6
|
|
|
6.2
|
|
|
5.8
|
|
|
0.5
|
|
|
6.3
|
Other
|
|
|
8.1
|
|
|
3.6
|
|
|
11.7
|
|
|
8.3
|
|
|
4.6
|
|
|
12.9
|
Total
revenue
|
|
|
184.0
|
|
|
83.7
|
|
|
267.7
|
|
|
183.1
|
|
|
105.6
|
|
|
288.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (excluding
depreciation and amortization)
|
|
|
93.4
|
|
|
28.9
|
|
|
122.3
|
|
|
99.7
|
|
|
40.3
|
|
|
140.0
|
Selling, general and
administrative
|
|
|
44.8
|
|
|
5.2
|
|
|
50.0
|
|
|
40.2
|
|
|
5.6
|
|
|
45.8
|
Depreciation and
amortization
|
|
|
42.3
|
|
|
—
|
|
|
42.3
|
|
|
38.2
|
|
|
20.0
|
|
|
58.2
|
|
|
|
180.5
|
|
|
34.1
|
|
|
214.6
|
|
|
178.1
|
|
|
65.9
|
|
|
244.0
|
Income from
operations
|
|
|
3.5
|
|
|
49.6
|
|
|
53.1
|
|
|
5.0
|
|
|
39.7
|
|
|
44.7
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (expense)
income
|
|
|
(22.4)
|
|
|
—
|
|
|
(22.4)
|
|
|
(32.2)
|
|
|
—
|
|
|
(32.2)
|
Gain (loss) on sale of
assets, net
|
|
|
0.1
|
|
|
689.9
|
|
|
690.0
|
|
|
(0.3)
|
|
|
—
|
|
|
(0.3)
|
Other income,
net
|
|
|
1.8
|
|
|
—
|
|
|
1.8
|
|
|
0.8
|
|
|
—
|
|
|
0.8
|
(Loss) income before
provision for income taxes
|
|
|
(17.0)
|
|
|
739.5
|
|
|
722.5
|
|
|
(26.7)
|
|
|
39.7
|
|
|
13.0
|
Income tax (expense)
benefit
|
|
|
(4.2)
|
|
|
(200.4)
|
|
|
(204.6)
|
|
|
6.4
|
|
|
(10.4)
|
|
|
(4.0)
|
Net (loss)
income
|
|
$
|
(21.2)
|
|
$
|
539.1
|
|
$
|
517.9
|
|
$
|
(20.3)
|
|
$
|
29.3
|
|
$
|
9.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.26)
|
|
$
|
6.50
|
|
$
|
6.24
|
|
$
|
(0.28)
|
|
$
|
0.39
|
|
$
|
0.11
|
Diluted
|
|
$
|
(0.26)
|
|
$
|
6.50
|
|
$
|
6.24
|
|
$
|
(0.28)
|
|
$
|
0.39
|
|
$
|
0.11
|
Weighted-average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
82,973,519
|
|
|
|
|
|
|
|
|
81,771,279
|
|
|
|
|
|
|
Diluted
|
|
|
82,973,519
|
|
|
|
|
|
|
|
|
81,771,279
|
|
|
|
|
|
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS FOR THE NINE MONTHS ENDED
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
Nine months
ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
|
(in millions,
except per share data)
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSD
|
|
$
|
298.6
|
|
$
|
160.2
|
|
$
|
458.8
|
|
$
|
263.4
|
|
$
|
153.1
|
|
$
|
416.5
|
Video
|
|
|
164.5
|
|
|
101.1
|
|
|
265.6
|
|
|
187.5
|
|
|
122.3
|
|
|
309.8
|
Telephony
|
|
|
43.8
|
|
|
18.8
|
|
|
62.6
|
|
|
50.0
|
|
|
21.7
|
|
|
71.7
|
Total subscription
services revenue
|
|
|
506.9
|
|
|
280.1
|
|
|
787.0
|
|
|
500.9
|
|
|
297.1
|
|
|
798.0
|
Other business
services
|
|
|
16.9
|
|
|
1.6
|
|
|
18.5
|
|
|
17.7
|
|
|
1.5
|
|
|
19.2
|
Other
|
|
|
23.6
|
|
|
12.2
|
|
|
35.8
|
|
|
24.6
|
|
|
13.4
|
|
|
38.0
|
Total
revenue
|
|
|
547.4
|
|
|
293.9
|
|
|
841.3
|
|
|
543.2
|
|
|
312.0
|
|
|
855.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (excluding
depreciation and amortization)
|
|
|
286.9
|
|
|
106.1
|
|
|
393.0
|
|
|
306.6
|
|
|
127.7
|
|
|
434.3
|
Selling, general and
administrative
|
|
|
132.8
|
|
|
10.7
|
|
|
143.5
|
|
|
125.0
|
|
|
11.5
|
|
|
136.5
|
Depreciation and
amortization
|
|
|
126.0
|
|
|
41.0
|
|
|
167.0
|
|
|
111.5
|
|
|
59.3
|
|
|
170.8
|
|
|
|
545.7
|
|
|
157.8
|
|
|
703.5
|
|
|
543.1
|
|
|
198.5
|
|
|
741.6
|
Income from
operations
|
|
|
1.7
|
|
|
136.1
|
|
|
137.8
|
|
|
0.1
|
|
|
113.5
|
|
|
113.6
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (expense)
income
|
|
|
(82.6)
|
|
|
0.4
|
|
|
(82.2)
|
|
|
(98.1)
|
|
|
—
|
|
|
(98.1)
|
Gain on sale of assets,
net
|
|
|
—
|
|
|
690.1
|
|
|
690.1
|
|
|
0.3
|
|
|
0.1
|
|
|
0.4
|
Other income,
net
|
|
|
2.4
|
|
|
0.1
|
|
|
2.5
|
|
|
1.5
|
|
|
0.1
|
|
|
1.6
|
(Loss) income before
provision for income taxes
|
|
|
(78.5)
|
|
|
826.7
|
|
|
748.2
|
|
|
(96.2)
|
|
|
113.7
|
|
|
17.5
|
Income tax (expense)
benefit
|
|
|
12.1
|
|
|
(220.4)
|
|
|
(208.3)
|
|
|
21.8
|
|
|
(28.0)
|
|
|
(6.2)
|
Net (loss)
income
|
|
$
|
(66.4)
|
|
$
|
606.3
|
|
$
|
539.9
|
|
$
|
(74.4)
|
|
$
|
85.7
|
|
$
|
11.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.80)
|
|
$
|
7.34
|
|
$
|
6.54
|
|
$
|
(0.94)
|
|
$
|
1.08
|
|
$
|
0.14
|
Diluted
|
|
$
|
(0.80)
|
|
$
|
7.34
|
|
$
|
6.54
|
|
$
|
(0.94)
|
|
$
|
1.08
|
|
$
|
0.14
|
Weighted-average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
82,615,949
|
|
|
|
|
|
|
|
|
81,475,814
|
|
|
|
|
|
|
Diluted
|
|
|
82,615,949
|
|
|
|
|
|
|
|
|
81,475,814
|
|
|
|
|
|
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
|
2021
|
|
2020
|
|
|
(in millions)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
539.9
|
|
$
|
11.3
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
167.0
|
|
|
170.8
|
Deferred income
taxes
|
|
|
103.3
|
|
|
4.5
|
Provision for doubtful
accounts
|
|
|
8.3
|
|
|
14.3
|
Gain on sale of Ohio
markets
|
|
|
(689.6)
|
|
|
—
|
Gain on sale of
assets, net
|
|
|
(0.5)
|
|
|
(0.4)
|
Amortization of debt
issuance costs and discount
|
|
|
3.6
|
|
|
3.6
|
Non-cash
compensation
|
|
|
11.6
|
|
|
8.3
|
Other non-cash
items
|
|
|
(0.2)
|
|
|
—
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Receivables and other
operating assets
|
|
|
(19.0)
|
|
|
(23.0)
|
Payables and
accruals
|
|
|
115.1
|
|
|
10.7
|
Net cash provided by
operating activities
|
|
$
|
239.5
|
|
$
|
200.1
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
(167.4)
|
|
$
|
(166.3)
|
Proceeds from sale of
Ohio markets, net
|
|
|
1,112.5
|
|
|
—
|
Other investing
activities
|
|
|
1.3
|
|
|
(0.6)
|
Net cash provided by
(used in) investing activities
|
|
$
|
946.4
|
|
$
|
(166.9)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from issuance
of long-term debt
|
|
$
|
37.0
|
|
$
|
91.0
|
Payments on long-term
debt and finance lease obligations
|
|
|
(1,167.8)
|
|
|
(111.3)
|
Purchase of
shares
|
|
|
(7.9)
|
|
|
(1.0)
|
Net cash used in
financing activities
|
|
$
|
(1,138.7)
|
|
$
|
(21.3)
|
Increase in cash and
cash equivalents
|
|
|
47.2
|
|
|
11.9
|
Cash and cash
equivalents, beginning of period
|
|
|
12.4
|
|
|
21.0
|
Cash and cash
equivalents, end of period
|
|
$
|
59.6
|
|
$
|
32.9
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
Cash paid during the
periods for interest
|
|
$
|
81.9
|
|
$
|
93.4
|
Cash paid (received)
during the periods for income taxes, net
|
|
$
|
2.2
|
|
$
|
(3.4)
|
Non-cash operating
activities:
|
|
|
|
|
|
|
Operating lease
additions
|
|
$
|
1.0
|
|
$
|
5.5
|
Non-cash financing
activities:
|
|
|
|
|
|
|
Finance lease
additions
|
|
$
|
5.1
|
|
$
|
13.3
|
Capital expenditure
accounts payable and accruals
|
|
$
|
24.7
|
|
$
|
13.7
|
About WOW!
WOW! is one of the nation's leading
broadband providers, with an efficient, high-performing network
that passes 1.9 million residential, business and wholesale
consumers. WOW! provides services in 14 markets, primarily in the
Midwest and Southeast, including Michigan, Alabama, Tennessee, South
Carolina, Florida and
Georgia. With an expansive
portfolio of advanced services, including high-speed Internet
services, cable TV, phone, business data, voice, and cloud
services, the company is dedicated to providing outstanding service
at affordable prices. WOW! also serves as a leader in exceptional
human resources practices, having been recognized seven times by
the National Association for Business Resources as a Best &
Brightest Company to Work For, winning the award for the last three
consecutive years. Visit www.wowway.com for more
information.
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. Pro Forma Adjusted
EBITDA takes into account the recent sales of five service areas as
though such transactions had occurred prior to the periods
presented.
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 and Pro Forma Adjusted
EBITDA to Net Income for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
(in millions)
|
Net Income
|
|
$
|
517.9
|
|
$
|
9.0
|
|
$
|
539.9
|
|
$
|
11.3
|
Depreciation and
amortization
|
|
|
42.3
|
|
|
58.2
|
|
|
167.0
|
|
|
170.8
|
Interest
expense
|
|
|
22.4
|
|
|
32.2
|
|
|
82.2
|
|
|
98.1
|
Gain on sale of assets,
net
|
|
|
(690.0)
|
|
|
0.3
|
|
|
(690.1)
|
|
|
(0.4)
|
Non-recurring
professional fees, M&A integration and restructuring
expense
|
|
|
8.7
|
|
|
8.0
|
|
|
22.4
|
|
|
21.2
|
Non-cash stock
compensation
|
|
|
4.5
|
|
|
2.6
|
|
|
11.6
|
|
|
8.3
|
Other income,
net
|
|
|
(1.8)
|
|
|
(0.8)
|
|
|
(2.5)
|
|
|
(1.6)
|
Income tax
expense
|
|
|
204.6
|
|
|
4.0
|
|
|
208.3
|
|
|
6.2
|
Adjusted
EBITDA
|
|
$
|
108.6
|
|
$
|
113.5
|
|
$
|
338.8
|
|
$
|
313.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Adjusted EBITDA
attributable to disposed service areas
|
|
|
(41.9)
|
|
|
(50.6)
|
|
|
(146.2)
|
|
|
(142.3)
|
Pro Forma Adjusted
EBITDA
|
|
$
|
66.7
|
|
$
|
62.9
|
|
$
|
192.6
|
|
$
|
171.6
|
|
|
The following table
provides a reconciliation of Net Cash Provided by Operating
Activities to Free Cash Flow for the periods
presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
(in millions)
|
Net Cash Provided by
Operating Activities
|
|
$
|
82.6
|
|
$
|
72.8
|
|
$
|
239.5
|
|
$
|
200.1
|
Less: Capital
Expenditures
|
|
|
(51.9)
|
|
|
(51.1)
|
|
|
(167.4)
|
|
|
(166.3)
|
Free Cash
Flow
|
|
$
|
30.7
|
|
$
|
21.7
|
|
$
|
72.1
|
|
$
|
33.8
|
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
|
|
Three months
ended
|
|
|
September 30, 2021
|
|
September 30, 2020
|
|
|
Continuing
|
|
Discontinued
|
|
Total
|
|
Continuing
|
|
Discontinued
|
|
Total
|
|
|
(in millions)
|
Capital
Expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer premise
equipment
|
|
$
|
18.7
|
|
$
|
7.8
|
|
$
|
26.5
|
|
$
|
15.2
|
|
$
|
12.3
|
|
$
|
27.5
|
Scalable
infrastructure
|
|
|
7.7
|
|
|
0.9
|
|
|
8.6
|
|
|
8.7
|
|
|
0.4
|
|
|
9.1
|
Line
extensions
|
|
|
4.1
|
|
|
0.5
|
|
|
4.6
|
|
|
1.8
|
|
|
0.9
|
|
|
2.7
|
Support capital and
other
|
|
|
10.2
|
|
|
2.0
|
|
|
12.2
|
|
|
9.1
|
|
|
2.7
|
|
|
11.8
|
Total
|
|
$
|
40.7
|
|
$
|
11.2
|
|
$
|
51.9
|
|
$
|
34.8
|
|
$
|
16.3
|
|
$
|
51.1
|
Capital expenditures
included in total related to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Edge-outs
|
|
$
|
1.4
|
|
$
|
0.2
|
|
$
|
1.6
|
|
$
|
1.1
|
|
$
|
0.7
|
|
$
|
1.8
|
Business
services
|
|
$
|
3.3
|
|
$
|
0.6
|
|
$
|
3.9
|
|
$
|
2.1
|
|
$
|
0.7
|
|
$
|
2.8
|
|
|
The following table
provides additional information regarding our Capital Expenditures
for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
Nine months
ended
|
|
|
September 30, 2021
|
|
September 30, 2020
|
|
|
Continuing
|
|
Discontinued
|
|
Total
|
|
Continuing
|
|
Discontinued
|
|
Total
|
|
|
(in millions)
|
Capital
Expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer premise
equipment
|
|
$
|
55.2
|
|
$
|
27.6
|
|
$
|
82.8
|
|
$
|
62.9
|
|
$
|
35.0
|
|
$
|
97.9
|
Scalable
infrastructure
|
|
|
30.3
|
|
|
3.2
|
|
|
33.5
|
|
|
21.1
|
|
|
0.8
|
|
|
21.9
|
Line
extensions
|
|
|
11.5
|
|
|
2.9
|
|
|
14.4
|
|
|
11.1
|
|
|
0.8
|
|
|
11.9
|
Support capital and
other
|
|
|
29.2
|
|
|
7.5
|
|
|
36.7
|
|
|
26.3
|
|
|
8.3
|
|
|
34.6
|
Total
|
|
$
|
126.2
|
|
$
|
41.2
|
|
$
|
167.4
|
|
$
|
121.4
|
|
$
|
44.9
|
|
$
|
166.3
|
Capital expenditures
included in total related to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Edge-outs
|
|
$
|
3.2
|
|
$
|
1.4
|
|
$
|
4.6
|
|
$
|
5.0
|
|
$
|
1.5
|
|
$
|
6.5
|
Business
services
|
|
$
|
10.8
|
|
$
|
2.7
|
|
$
|
13.5
|
|
$
|
11.2
|
|
$
|
1.0
|
|
$
|
12.2
|
|
|
The following table
provides an unaudited summary of our continuing operations
subscriber information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
|
2020
|
|
2020
(1)
|
|
2021
|
|
2021
|
|
2021
|
Homes
Passed
|
|
1,852,500
|
|
1,871,800
|
|
1,873,900
|
|
1,877,300
|
|
1,880,900
|
Total
Subscribers
|
|
524,800
|
|
522,900
|
|
528,000
|
|
530,600
|
|
531,600
|
HSD RGUs
|
|
496,600
|
|
498,800
|
|
504,900
|
|
507,900
|
|
509,500
|
Video RGUs
|
|
203,500
|
|
189,400
|
|
178,800
|
|
169,300
|
|
158,600
|
Telephony
RGUs
|
|
113,900
|
|
110,400
|
|
108,000
|
|
105,600
|
|
102,400
|
Total RGUs
|
|
814,000
|
|
798,600
|
|
791,700
|
|
782,800
|
|
770,500
|
|
|
(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 increases (decreases)
at December 31, 2020: Homes passed 15,400, Total subscribers
(4,200), HSD RGUs (700), Video RGUs (1,800), Telephony RGUs (600),
and Total RGUs (3,100).
|
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
September 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.
Contact:
Andrew
Posen
Vice President, Head of Investor Relations
303-927-4935
andrew.posen@wowinc.com
Debra Havins
Senior Director, Corporate Communications
720-527-8214
debra.havins@wowinc.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/wow-reports-third-quarter-2021-results-301417961.html
SOURCE WideOpenWest, Inc.