High-Speed Data Revenue from continuing
operations of $102.6 million, up 4%
compared to the second quarter of 2021
ENGLEWOOD, Colo., Aug. 5, 2022
/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 second quarter ended
June 30, 2022.
Second Quarter 2022
Highlights (1)(2)
- Total Revenue from continuing operations of $176.1 million, a decrease of $5.8 million or 3%, compared to the second
quarter of 2021
- HSD Revenue from continuing operations totaled $102.6 million, an increase of $3.9 million, or 4%, compared to the second
quarter of 2021
- Net Income from continuing operations was $4.0 million for the quarter ended June 30, 2022
- Net Profit Margin was 2.3% compared to 4.3% for the second
quarter of 2021
- Pro Forma Adjusted EBITDA was a record $70.6 million, an increase of $6.3 million, or 10%, compared to the second
quarter of 2021
- Pro Forma Adjusted EBITDA Margin was a record 40.1% compared to
35.3% for the second quarter of 2021
- Added 2,200 HSD RGUs
- Announced the launch of 1.2 Gig speeds across entire
footprint
- Greenfield progress on track and construction has begun in
Central Florida
"I am pleased with our second quarter results which reflect the
strength of our broadband-first strategy and the progress we have
made on our strategic initiatives as we delivered record Adjusted
EBITDA and Adjusted EBITDA margin," said Teresa Elder, WOW!'s CEO. "We continue to meet
our operational goals as we grow our high-speed data subscriber
base, increase edge-out penetration and accelerate our Greenfield
expansion."
"Our HSD revenue grew 4% from the same period last year and Pro
Forma Adjusted EBITDA grew by nearly 10% from last year, to a
record high $70.6 million and a
record Pro Forma Adjusted EBITDA margin of 40.1%," said
John Rego, WOW!'s CFO. "The
combination of HSD revenue growth and the realization of strategic
efficiencies has brought our Pro Forma Adjusted Margin very close
to the levels attained prior to last year's divestitures."
Revenue
Total Revenue from continuing operations was
$176.1 million for the quarter ended
June 30, 2022, down $5.8
million, or 3%, as compared to the corresponding period in
2021.
Total Subscription Revenue from continuing operations for the
quarter ended June 30, 2022 was $163.2 million, down $5.4
million, or 3%, as compared to the corresponding period in
2021. The decrease is primarily driven by a shift in service
offering mix as we continue to experience a reduction in Video and
Telephony RGUs, partially offset 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 the
first quarter of 2022 and an increase in volume attributable
exclusively to the addition of HSD subscribers.
(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, Pro Forma Adjusted EBITDA margin 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)
|
During the second
half of 2021, the Company completed of the sale of five of its
service areas. For presentation purposes, the 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.
|
Other Business Services Revenue from continuing operations
totaled $5.4 million for the quarter
ended June 30, 2022, down $0.3
million as compared to the corresponding period in
2021. The decrease is primarily due to a decrease in data
center revenue.
Other Revenue from continuing operations totaled $7.5 million for the quarter ended
June 30, 2022, down $0.1
million as compared to the corresponding period in 2021,
primarily related to decreases in advertising and line assurance
revenue partially offset by an increase in late fee revenue.
Costs and Expenses
Operating Expenses (excluding
Depreciation and Amortization) from continuing operations totaled
$83.0 million for the quarter ended
June 30, 2022, down $12.1
million, or 13%, compared to the corresponding period in
2021 primarily driven by decreases in direct operating expenses,
specifically programming expense, which aligns with the reduction
in Video RGUs between periods and lower bad debt expense, partially
offset by decreases in capital eligible expenses. Selling, General,
and Administrative expenses from continuing operations totaled
$39.3 million for the quarter ended
June 30, 2022, down $6.2
million, or 14%, compared to the corresponding period in
2021 primarily attributable to decreases in costs associated with
digital transformation initiatives, marketing, and legal and
professional services expenses, partially offset by an increase in
stock compensation expense.
Net Income
Net Income for the quarter ended
June 30, 2022 was $4.0
million as compared to $12.4
million for the quarter ended June 30, 2021. Net Profit
Margin was 2.3% for the quarter ended June
30, 2022 as compared to 4.3% for the quarter ended
June 30, 2021.
Pro Forma Adjusted EBITDA
Pro Forma Adjusted EBITDA
for the quarter ended June 30, 2022 was $70.6 million, an increase of $6.3 million, compared to the corresponding
period in 2021. Pro Forma Adjusted EBITDA margin was 40.1% for the
quarter ended June 30, 2022 as compared to 35.3% for the
quarter ended June 30, 2021.
Subscribers
WOW! reported Total Subscribers from
continuing operations of 536,600 as of June 30, 2022, an
increase of 6,100, or 1%, compared to June 30, 2021, up 1,900
compared to March 31, 2022. HSD RGUs
totaled 517,200 as of June 30, 2022, an increase of 9,300
or 2%, compared to June 30, 2021, up 2,200 compared to
March 31, 2022.
Edge-Outs
Edge-Out Projects from continuing
operations reached a total of 78,900 homes passed and 19,700
Subscribers since inception.
The 2020 Edge-Out projects from continuing operations include
800 Subscribers, which represents 23.5% penetration on such nodes.
The 2021 Edge-Out projects from continuing operations include 800
Subscribers, which represents 40.0% penetration on such nodes. The
2022 Edge-Out projects from continuing operations include 100
Subscribers, which represents 14.3% penetration on such nodes.
Capital Expenditures
Capital Expenditures from
continuing operations totaled $34.7
million for the quarter ended June
30, 2022, representing a $6.8
million decrease compared to the quarter ended June 30, 2021. The decrease is primarily related
to a reduction network enhancement and customer premise equipment
("CPE") expenditures partially offset by increases in line
extensions as we focus on expanding our network.
Capital Expenditures from continuing operations for the quarter
ended June 30, 2022 equates to 20% of
Total Revenue from continuing operations for the quarter ended
June 30, 2022.
Liquidity and Leverage
As of June 30, 2022, the total outstanding amount of
long-term debt and finance lease obligations was $738.5 million, and cash and cash
equivalents were $49.9 million. Total
Net Leverage as of June 30, 2022,
was 2.6X in line with the first quarter of 2022 on a LTM Pro
Forma Adjusted EBITDA basis and undrawn revolver capacity totaled
$245.6 million.
Third Quarter and Full Year 2022 Guidance
|
|
|
|
|
|
|
Q3
2022
|
|
Full Year
2022
|
HSD Revenue
|
|
$102.0 - $106.0
million
|
|
$415.0 - $419.0
million
|
Total
Revenue
|
|
$171.0 - $175.0
million
|
|
$704.0 - $708.0
million
|
Adjusted
EBITDA
|
|
$66.0 - $69.0
million
|
|
$281.0 - $284.0
million
|
|
|
|
|
|
HSD net
additions
|
|
1,000 -
3,000
|
|
12,000 -
15,000
|
Webcast
WOW! will host a webcast on Friday, August 5, 2022, at 8:00 a.m. ET 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:
|
Friday, August 5,
2022
|
|
Call Time:
|
8:00 a.m.
Eastern
|
|
Dial In:
|
(888)
330-3556
|
|
International:
|
(646)
960-0826
|
|
Conf. ID:
|
4844814
|
|
|
|
|
|
|
|
|
|
|
|
A replay of the call will be available on August 5, 2022, at 11:00
a.m. ET, on the investor relations website or by telephone.
To access the telephone replay, which will be available until
August 19, 2022, at 11:59 p.m. ET, please dial (800) 770-2030 or
(647) 362-9199 and use conference ID 4844814.
.
WIDEOPENWEST, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(unaudited)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
|
2022
|
|
2021
|
|
|
(in millions,
except share data)
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
49.9
|
|
$
|
193.2
|
Accounts
receivable—trade, net of allowance for doubtful accounts of $2.4
and $4.3, respectively
|
|
|
39.3
|
|
|
40.9
|
Accounts
receivable—other, net
|
|
|
12.6
|
|
|
17.2
|
Prepaid expenses and
other
|
|
|
40.7
|
|
|
30.7
|
Total current
assets
|
|
|
142.5
|
|
|
282.0
|
Right-of-use lease
assets—operating
|
|
|
16.2
|
|
|
17.2
|
Property, plant and
equipment, net
|
|
|
711.6
|
|
|
722.3
|
Franchise operating
rights
|
|
|
620.1
|
|
|
620.1
|
Goodwill
|
|
|
225.1
|
|
|
225.1
|
Intangible assets
subject to amortization, net
|
|
|
1.5
|
|
|
1.7
|
Other non-current
assets
|
|
|
41.1
|
|
|
38.3
|
Total
assets
|
|
$
|
1,758.1
|
|
$
|
1,906.7
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable—trade
|
|
$
|
42.0
|
|
$
|
50.3
|
Accrued
interest
|
|
|
0.8
|
|
|
0.8
|
Current portion of
long-term lease liability—operating
|
|
|
4.9
|
|
|
5.1
|
Accrued liabilities and
other
|
|
|
70.0
|
|
|
218.7
|
Current portion of
long-term debt and finance lease obligations
|
|
|
18.3
|
|
|
17.9
|
Current portion of
unearned service revenue
|
|
|
27.9
|
|
|
28.1
|
Total current
liabilities
|
|
|
163.9
|
|
|
320.9
|
Long-term debt and
finance lease obligations—less current portion and debt issuance
costs
|
|
|
720.2
|
|
|
723.5
|
Long-term lease
liability—operating
|
|
|
12.9
|
|
|
13.8
|
Deferred income taxes,
net
|
|
|
253.7
|
|
|
257.6
|
Other non-current
liabilities
|
|
|
21.0
|
|
|
20.1
|
Total
liabilities
|
|
|
1,171.7
|
|
|
1,335.9
|
Commitments and
contingencies
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
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; 96,899,442 and 96,225,910
issued
as of June 30, 2022 and December 31, 2021,
respectively; 87,732,085 and 87,392,088 outstanding
as of June 30, 2022 and December 31, 2021,
respectively
|
|
|
1.0
|
|
|
1.0
|
Additional paid-in
capital
|
|
|
360.4
|
|
|
348.5
|
Accumulated
income
|
|
|
320.2
|
|
|
310.5
|
Treasury stock at cost,
9,167,357 and 8,833,822 shares as of June 30, 2022 and
December 31, 2021,
respectively
|
|
|
(95.2)
|
|
|
(89.2)
|
Total stockholders'
equity
|
|
|
586.4
|
|
|
570.8
|
Total liabilities and
stockholders' equity
|
|
$
|
1,758.1
|
|
$
|
1,906.7
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
|
June 30, 2022
|
|
June 30, 2021
|
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
|
(in millions,
except share data)
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSD
|
|
$
|
102.6
|
|
$
|
—
|
|
$
|
102.6
|
|
$
|
98.7
|
|
$
|
57.7
|
|
$
|
156.4
|
Video
|
|
|
47.7
|
|
|
—
|
|
|
47.7
|
|
|
55.3
|
|
|
36.4
|
|
|
91.7
|
Telephony
|
|
|
12.9
|
|
|
—
|
|
|
12.9
|
|
|
14.6
|
|
|
6.7
|
|
|
21.3
|
Total subscription
services revenue
|
|
|
163.2
|
|
|
—
|
|
|
163.2
|
|
|
168.6
|
|
|
100.8
|
|
|
269.4
|
Other business
services
|
|
|
5.4
|
|
|
—
|
|
|
5.4
|
|
|
5.7
|
|
|
0.4
|
|
|
6.1
|
Other
|
|
|
7.5
|
|
|
—
|
|
|
7.5
|
|
|
7.6
|
|
|
4.2
|
|
|
11.8
|
Total
revenue
|
|
|
176.1
|
|
|
—
|
|
|
176.1
|
|
|
181.9
|
|
|
105.4
|
|
|
287.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (excluding
depreciation and amortization)
|
|
|
83.0
|
|
|
—
|
|
|
83.0
|
|
|
95.1
|
|
|
37.6
|
|
|
132.7
|
Selling, general and
administrative
|
|
|
39.3
|
|
|
—
|
|
|
39.3
|
|
|
45.5
|
|
|
2.8
|
|
|
48.3
|
Depreciation and
amortization
|
|
|
43.9
|
|
|
—
|
|
|
43.9
|
|
|
42.4
|
|
|
20.5
|
|
|
62.9
|
|
|
|
166.2
|
|
|
—
|
|
|
166.2
|
|
|
183.0
|
|
|
60.9
|
|
|
243.9
|
Income (loss) from
operations
|
|
|
9.9
|
|
|
—
|
|
|
9.9
|
|
|
(1.1)
|
|
|
44.5
|
|
|
43.4
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(7.9)
|
|
|
—
|
|
|
(7.9)
|
|
|
(28.8)
|
|
|
0.4
|
|
|
(28.4)
|
Gain on sale of assets,
net
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.2
|
Other income (loss),
net
|
|
|
6.3
|
|
|
—
|
|
|
6.3
|
|
|
(0.1)
|
|
|
0.1
|
|
|
—
|
Income (loss) before
provision for income taxes
|
|
|
8.3
|
|
|
—
|
|
|
8.3
|
|
|
(30.0)
|
|
|
45.2
|
|
|
15.2
|
Income tax (expense)
benefit
|
|
|
(4.3)
|
|
|
—
|
|
|
(4.3)
|
|
|
7.5
|
|
|
(10.3)
|
|
|
(2.8)
|
Net income
(loss)
|
|
$
|
4.0
|
|
$
|
—
|
|
$
|
4.0
|
|
$
|
(22.5)
|
|
$
|
34.9
|
|
$
|
12.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.05
|
|
$
|
—
|
|
$
|
0.05
|
|
$
|
(0.27)
|
|
$
|
0.42
|
|
$
|
0.15
|
Diluted
|
|
$
|
0.05
|
|
$
|
—
|
|
$
|
0.05
|
|
$
|
(0.27)
|
|
$
|
0.42
|
|
$
|
0.15
|
Weighted-average common
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
84,148,917
|
|
|
|
|
|
|
|
|
82,828,227
|
|
|
|
|
|
|
Diluted
|
|
|
86,793,139
|
|
|
|
|
|
|
|
|
82,828,227
|
|
|
|
|
|
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
Six months
ended
|
|
|
June 30, 2022
|
|
June 30, 2021
|
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
|
(in millions,
except share data)
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSD
|
|
$
|
202.7
|
|
$
|
—
|
|
$
|
202.7
|
|
$
|
195.3
|
|
$
|
113.8
|
|
$
|
309.1
|
Video
|
|
|
96.3
|
|
|
—
|
|
|
96.3
|
|
|
111.7
|
|
|
73.3
|
|
|
185.0
|
Telephony
|
|
|
26.2
|
|
|
—
|
|
|
26.2
|
|
|
29.6
|
|
|
13.5
|
|
|
43.1
|
Total subscription
services revenue
|
|
|
325.2
|
|
|
—
|
|
|
325.2
|
|
|
336.6
|
|
|
200.6
|
|
|
537.2
|
Other business
services
|
|
|
10.7
|
|
|
—
|
|
|
10.7
|
|
|
11.3
|
|
|
1.0
|
|
|
12.3
|
Other
|
|
|
14.8
|
|
|
—
|
|
|
14.8
|
|
|
15.5
|
|
|
8.6
|
|
|
24.1
|
Total
revenue
|
|
|
350.7
|
|
|
—
|
|
|
350.7
|
|
|
363.4
|
|
|
210.2
|
|
|
573.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (excluding
depreciation and amortization)
|
|
|
170.3
|
|
|
—
|
|
|
170.3
|
|
|
193.5
|
|
|
77.2
|
|
|
270.7
|
Selling, general and
administrative
|
|
|
77.6
|
|
|
—
|
|
|
77.6
|
|
|
88.0
|
|
|
5.5
|
|
|
93.5
|
Depreciation and
amortization
|
|
|
87.9
|
|
|
—
|
|
|
87.9
|
|
|
83.7
|
|
|
41.0
|
|
|
124.7
|
|
|
|
335.8
|
|
|
—
|
|
|
335.8
|
|
|
365.2
|
|
|
123.7
|
|
|
488.9
|
Income (loss) from
operations
|
|
|
14.9
|
|
|
—
|
|
|
14.9
|
|
|
(1.8)
|
|
|
86.5
|
|
|
84.7
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(15.3)
|
|
|
—
|
|
|
(15.3)
|
|
|
(60.2)
|
|
|
0.4
|
|
|
(59.8)
|
Gain on sale of assets,
net
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.2
|
Other income (loss),
net
|
|
|
14.2
|
|
|
—
|
|
|
14.2
|
|
|
0.5
|
|
|
0.1
|
|
|
0.6
|
Income (loss) before
provision for income taxes
|
|
|
13.8
|
|
|
—
|
|
|
13.8
|
|
|
(61.5)
|
|
|
87.2
|
|
|
25.7
|
Income tax (expense)
benefit
|
|
|
(4.1)
|
|
|
—
|
|
|
(4.1)
|
|
|
16.3
|
|
|
(20.0)
|
|
|
(3.7)
|
Net income
(loss)
|
|
$
|
9.7
|
|
$
|
—
|
|
$
|
9.7
|
|
$
|
(45.2)
|
|
$
|
67.2
|
|
$
|
22.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.12
|
|
$
|
—
|
|
$
|
0.12
|
|
$
|
(0.55)
|
|
$
|
0.82
|
|
$
|
0.27
|
Diluted
|
|
$
|
0.11
|
|
$
|
—
|
|
$
|
0.11
|
|
$
|
(0.55)
|
|
$
|
0.82
|
|
$
|
0.27
|
Weighted-average common
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
83,722,315
|
|
|
|
|
|
|
|
|
82,433,311
|
|
|
|
|
|
|
Diluted
|
|
|
86,642,849
|
|
|
|
|
|
|
|
|
82,433,311
|
|
|
|
|
|
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited)
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
|
(in millions)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
9.7
|
|
$
|
22.0
|
Adjustments to
reconcile net income to net cash (used in) provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
88.9
|
|
|
124.7
|
Deferred income
taxes
|
|
|
(3.9)
|
|
|
2.3
|
Provision for doubtful
accounts
|
|
|
0.7
|
|
|
5.3
|
Gain on sale of
operating assets, net
|
|
|
(1.0)
|
|
|
—
|
Amortization of debt
issuance costs and discount
|
|
|
0.8
|
|
|
2.4
|
Non-cash
compensation
|
|
|
12.1
|
|
|
7.1
|
Other non-cash
items
|
|
|
0.1
|
|
|
(0.2)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Receivables and other
operating assets
|
|
|
(8.4)
|
|
|
(9.3)
|
Payables and
accruals
|
|
|
(150.7)
|
|
|
2.6
|
Net cash (used in)
provided by operating activities
|
|
$
|
(51.7)
|
|
$
|
156.9
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
(76.8)
|
|
$
|
(115.5)
|
Other investing
activities
|
|
|
1.1
|
|
|
0.9
|
Net cash used in
investing activities
|
|
$
|
(75.7)
|
|
$
|
(114.6)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from issuance
of long-term debt, net
|
|
$
|
—
|
|
$
|
31.0
|
Payments on long-term
debt and finance lease obligations
|
|
|
(9.9)
|
|
|
(55.0)
|
Purchase of
shares
|
|
|
(6.0)
|
|
|
(7.4)
|
Net cash used in
financing activities
|
|
$
|
(15.9)
|
|
$
|
(31.4)
|
(Decrease) increase in
cash and cash equivalents
|
|
|
(143.3)
|
|
|
10.9
|
Cash and cash
equivalents, beginning of period
|
|
|
193.2
|
|
|
12.4
|
Cash and cash
equivalents, end of period
|
|
$
|
49.9
|
|
$
|
23.3
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
Cash paid during the
periods for interest
|
|
$
|
14.4
|
|
$
|
59.0
|
Cash paid during the
periods for income taxes
|
|
$
|
141.0
|
|
$
|
1.7
|
Non-cash operating
activities:
|
|
|
|
|
|
|
Operating lease
additions
|
|
$
|
1.5
|
|
$
|
0.9
|
Non-cash financing
activities:
|
|
|
|
|
|
|
Finance lease
additions
|
|
$
|
6.2
|
|
$
|
3.3
|
Capital expenditure
accounts payable and accruals
|
|
$
|
22.3
|
|
$
|
12.2
|
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 four
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 Pro Forma Adjusted EBITDA margin. 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.
Pro Forma Adjusted EBITDA margin is defined as Pro Forma
Adjusted EBITDA divided by total revenue, expressed as a
percentage. Adjusted EBITDA margin should not be considered as an
alternative to Net Profit margin.
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 Adjusted EBITDA
margin to Net Profit margin which are the most directly comparable
corresponding GAAP financial measures.
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
|
|
Six months
ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(in millions)
|
Net Income
|
|
$
|
4.0
|
|
$
|
12.4
|
|
$
|
9.7
|
|
$
|
22.0
|
Net profit
margin
|
|
|
2.3 %
|
|
|
4.3 %
|
|
|
2.8 %
|
|
|
3.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Depreciation and
amortization
|
|
|
43.9
|
|
|
62.9
|
|
|
87.9
|
|
|
124.7
|
Interest
expense
|
|
|
7.9
|
|
|
28.4
|
|
|
15.3
|
|
|
59.8
|
Gain on sale of assets,
net
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
(0.2)
|
Non-recurring
professional fees, M&A integration and restructuring
expense
|
|
|
10.4
|
|
|
7.5
|
|
|
22.1
|
|
|
13.7
|
Non-cash stock
compensation
|
|
|
6.4
|
|
|
4.0
|
|
|
12.1
|
|
|
7.1
|
Other income,
net
|
|
|
(6.3)
|
|
|
—
|
|
|
(14.2)
|
|
|
(0.6)
|
Income tax
expense
|
|
|
4.3
|
|
|
2.8
|
|
|
4.1
|
|
|
3.7
|
Adjusted
EBITDA
|
|
$
|
70.6
|
|
$
|
117.8
|
|
$
|
137.0
|
|
$
|
230.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Adjusted EBITDA
attributable to disposed service areas
|
|
|
—
|
|
|
(53.5)
|
|
|
—
|
|
|
(104.3)
|
Pro Forma Adjusted
EBITDA
|
|
$
|
70.6
|
|
$
|
64.3
|
|
$
|
137.0
|
|
$
|
125.9
|
Pro Forma Adjusted
EBITDA margin
|
|
|
40.1 %
|
|
|
35.3 %
|
|
|
39.1 %
|
|
|
34.6 %
|
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
|
|
|
June 30,
2022
|
|
June 30,
2021
|
|
|
Continuing
|
|
Discontinued
|
|
Total
|
|
Continuing
|
|
Discontinued
|
|
Total
|
|
|
(in millions)
|
Capital
Expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer premise
equipment
|
|
$
|
14.6
|
|
$
|
—
|
|
$
|
14.6
|
|
$
|
16.5
|
|
$
|
9.2
|
|
$
|
25.7
|
Scalable
infrastructure
|
|
|
7.4
|
|
|
—
|
|
|
7.4
|
|
|
11.2
|
|
|
1.3
|
|
|
12.5
|
Line
extensions
|
|
|
5.7
|
|
|
—
|
|
|
5.7
|
|
|
3.7
|
|
|
1.2
|
|
|
4.9
|
Support capital and
other
|
|
|
7.0
|
|
|
—
|
|
|
7.0
|
|
|
10.1
|
|
|
3.0
|
|
|
13.1
|
Total
|
|
$
|
34.7
|
|
$
|
—
|
|
$
|
34.7
|
|
$
|
41.5
|
|
$
|
14.7
|
|
$
|
56.2
|
Capital expenditures
included in total related to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Edge-outs
|
|
$
|
0.8
|
|
$
|
—
|
|
$
|
0.8
|
|
$
|
1.0
|
|
$
|
0.6
|
|
$
|
1.6
|
Business
services
|
|
$
|
2.6
|
|
$
|
—
|
|
$
|
2.6
|
|
$
|
3.6
|
|
$
|
1.0
|
|
$
|
4.6
|
Greenfields
|
|
$
|
4.5
|
|
$
|
—
|
|
$
|
4.5
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
The following table
provides additional information regarding our Capital Expenditures
for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
Six months
ended
|
|
|
June 30,
2022
|
|
June 30,
2021
|
|
|
Continuing
|
|
Discontinued
|
|
Total
|
|
Continuing
|
|
Discontinued
|
|
Total
|
|
|
(in millions)
|
Capital
Expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer premise
equipment
|
|
$
|
33.6
|
|
$
|
—
|
|
$
|
33.6
|
|
$
|
36.5
|
|
$
|
19.8
|
|
$
|
56.3
|
Scalable
infrastructure
|
|
|
18.1
|
|
|
—
|
|
|
18.1
|
|
|
22.6
|
|
|
2.3
|
|
|
24.9
|
Line
extensions
|
|
|
10.2
|
|
|
—
|
|
|
10.2
|
|
|
7.4
|
|
|
2.4
|
|
|
9.8
|
Support capital and
other
|
|
|
14.9
|
|
|
—
|
|
|
14.9
|
|
|
19.0
|
|
|
5.5
|
|
|
24.5
|
Total
|
|
$
|
76.8
|
|
$
|
—
|
|
$
|
76.8
|
|
$
|
85.5
|
|
$
|
30.0
|
|
$
|
115.5
|
Capital expenditures
included in total related to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Edge-outs
|
|
$
|
1.9
|
|
$
|
—
|
|
$
|
1.9
|
|
$
|
1.8
|
|
$
|
1.2
|
|
$
|
3.0
|
Business
services
|
|
$
|
5.8
|
|
$
|
—
|
|
$
|
5.8
|
|
$
|
7.5
|
|
$
|
2.1
|
|
$
|
9.6
|
Greenfields
|
|
$
|
5.0
|
|
$
|
—
|
|
$
|
5.0
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
The following table
provides an unaudited summary of our continuing operations
subscriber information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
March
31,
|
|
June
30,
|
|
|
2021
|
|
2021
|
|
2021
|
|
2022
|
|
2022
|
Homes Passed
|
|
1,877,300
|
|
1,880,900
|
|
1,882,100
|
|
1,886,000
|
|
1,886,000
|
Total
Subscribers
|
|
530,500
|
|
531,600
|
|
532,900
|
|
534,700
|
|
536,600
|
HSD RGUs
|
|
507,900
|
|
509,500
|
|
511,700
|
|
515,000
|
|
517,200
|
Video RGUs
|
|
169,300
|
|
158,600
|
|
150,600
|
|
142,000
|
|
135,500
|
Telephony
RGUs
|
|
105,600
|
|
102,400
|
|
100,000
|
|
97,300
|
|
95,200
|
Total RGUs
|
|
782,800
|
|
770,500
|
|
762,300
|
|
754,300
|
|
747,900
|
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, 2022, 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
Vice President, Corporate Communications
720-527-8214
debra.havins@wowinc.com
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multimedia:https://www.prnewswire.com/news-releases/wow-reports-second-quarter-2022-results-301600507.html
SOURCE WideOpenWest, Inc.