Full year High-Speed Data Revenue of
$430.4 million, up 4% from
2022
ENGLEWOOD, Colo., March 13, 2024 /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 nearly 2.0 million residential, business and wholesale
consumers, today announced financial and operating results for the
quarter and year ended December 31,
2023.
Financial Highlights (1)
- Fourth quarter Total Revenue of $168.8
million, a decrease of $11.7
million, or 6%, compared to the fourth quarter of 2022
- Full year Total Revenue of $686.7
million, a decrease of $18.2
million, or 3%, compared to the corresponding period of
2022
- Fourth quarter HSD Revenue totaled $108.7 million, an increase of $1.6 million, or 1% compared to fourth quarter of
2022
- Full year HSD Revenue totaled $430.4
million, an increase of $18.3
million, or 4%, compared to the corresponding period of
2022
- Net Loss was $43.5 million and
$287.7 million for the quarter and
year ended December 31, 2023
- Fourth quarter Adjusted EBITDA was $71.2
million, a decrease of $3.4
million, or 4.6%, compared to the fourth quarter of
2022
- Full year Adjusted EBITDA was $275.4
million, a decrease of $4.7
million, or 1.7%, compared to the corresponding period of
2022
- Passed approximately 48,400 new homes in Central Florida and South Carolina as well as Edge-outs through
December 31, 2023
(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
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.
|
"We continue to make great progress in our expansion markets,
passing 48,400 homes in 2023, including nearly 23,000 in the fourth
quarter, the most robust quarterly expansion of our network in our
25-year history, which puts us in a strong position to grow our
footprint and subscriber base in 2024," said Teresa Elder, WOW!'s CEO. "The momentum in our
new markets is also helping to drive our financial results which
included a four percent increase in our HSD revenue in 2023."
"Our financial results this year continue to reflect the
progress we are making as a broadband-first company including
full-year HSD revenue growth and an Adjusted EBITDA Margin of
40.1%," said John Rego, WOW!'s
CFO. "With continued HSD ARPU growth and record fourth quarter
Adjusted EBITDA margins, we are seeing significant momentum as we
move into 2024."
Revenue
Total Revenue was $168.8 million and $686.7
million for the quarter and year ended December 31, 2023, down $11.7 million and $18.2
million as compared to the corresponding periods in
2022.
Total Subscription Revenue for the quarter and year ended
December 31, 2023 was
$155.5 million and $635.6 million, down $7.6
million, or 5%, and $13.1
million, or 2%, as compared to the corresponding periods in
2022. The decreases were primarily driven by a shift in service
offering mix, as we continue to experience a reduction in Video and
Telephony RGUs, coupled with a decrease in volume across all
services. These decreases were partially offset by increases in
average revenue per unit ("ARPU"), driven by rate increases issued
in 2023, coupled with the increased purchases of higher HSD speed
tiers.
Other Business Services Revenue from continuing operations
totaled $5.3 million and $21.0 million for the quarter and year ended
December 31, 2023, up $0.2 million, or 4%, and down $0.2 million, or 1%, as compared to the
corresponding periods in 2022. The increase during the
quarter-to-date period was due to slight increases in wholesale
revenue and the decrease for the year-to-date period was primarily
due to decreases in data center revenue, partially offset by
increases in wholesale revenue.
Other Revenue totaled $8.0 million
and $30.1 million for the quarter and
year ended December 31, 2023, down
$4.3 million, or 35%, and
$4.9 million, or 14%, compared to the
corresponding periods in 2022. The decreases are primarily
due to decreases in advertising, other miscellaneous and line
assurance revenue, partially offset by an increase in paper
statement fee revenue. During the quarter and year ended
December 31, 2022, the Company had a
one-time receipt of government grant revenue.
Costs and Expenses
Operating Expenses (excluding
Depreciation and Amortization) totaled $71.7
million and $301.0 million for
the quarter and year ended December 31,
2023, down $5.9 million, or
8%, and $26.0 million, or 8%,
compared to the corresponding periods in 2022. The decrease
is primarily driven by decreases in direct operating expense,
specifically programming expense, which aligns with the reduction
in Video RGUs between periods and increases in capital labor and
decreases in compensation expense, partially offset by increases in
bad debt expense and hardware and software expenses.
Selling, General, and Administrative totaled $33.8 million and $200.4
million for the quarter and year ended December 31, 2023, down $14.3 million, or 30%, and up $35.0 million, or 21%, compared to the
corresponding periods in 2022. The decrease for the quarter-to-date
period is primarily due to decreases in restructuring costs related
to employee severance, compensation expense, and stock
compensation, partially offset by professional service fees. The
increase for the year-to-date period is primarily driven by the
patent litigation settlement and increases in restructuring costs
related to employee severance and professional fees, partially
offset by decreases in stock compensation and certain cash
compensation expenses.
Net Loss
Net Loss for the quarter and year ended
December 31, 2023 was $43.5 million and $287.7
million, compared to $12.7
million and $2.5 million for
the quarter and year ended December 31,
2022. The net profit margin was (25.8)% and (41.9)% for the
quarter and year ended December 31,
2023 as compared to a net profit margin of (7.0%) and (0.4%)
for the quarter and year ended December 31,
2022. Net Loss for the quarter and year ended December 31, 2023 was primarily driven by the
$47.0 million and $306.8 million non-cash impairment charge on
intangible assets, respectively.
Adjusted EBITDA
Adjusted EBITDA for the quarter and
year ended December 31, 2023 was
$71.2 million and $275.4 million, a decrease of $3.4 million and $4.7
million, compared to the corresponding periods in 2022.
Adjusted EBITDA Margin was 42.2% and 40.1% for the quarter and year
ended December 31, 2023 as compared
to 41.3% and 39.7% for the quarter and year ended December 31, 2022.
Subscribers
WOW! reported Total Subscribers of 504,100
as of December 31, 2023, a decrease
of 26,500 compared to December 31,
2022, down 13,300 compared to September 30, 2023. HSD RGUs totaled 490,100 as
of December 31, 2023, a decrease of
21,500 compared to December 31, 2022,
down 13,300 compared to September 30,
2023.
Market Expansion
Market Expansion projects reached a
total of 48,400 additional homes passed at December 31, 2023, including 30,400 additional
homes in Greenfield markets and 18,000 additional new homes passed
through Edge-Outs, as compared to the year ended December 31, 2022. These initiatives added 7,400
Subscribers in 2023 which represents a 15.3% total penetration rate
across market expansion projects in 2023.
The 2021 Edge-Out projects include 1,000 Subscribers, which
represents 47.6% penetration on such nodes. The 2022 Edge-Out
projects include 900 Subscribers, which represents 31.0%
penetration on such nodes.
Capital Expenditures
Capital Expenditures totaled
$268.9 million for the year ended
December 31, 2023, representing a
$101.7 million, or 61%, increase
compared to the year ended December 31,
2022. The increase is primarily related to an increase in
line extensions and scalable infrastructure as we focus on
expanding our network through our greenfield initiatives. Core
Capital Expenditures, or total capital expenditures excluding
expansion capital expenditures, equated to 20% of Total Revenue for
the year ended December 31, 2023.
Liquidity and Leverage
As of December 31, 2023, the total outstanding amount
of long-term debt and finance lease obligations was $934.5 million, and cash and cash equivalents
were $23.4 million. Total Net
Leverage as of December 31, 2023 was
3.3x on a LTM Adjusted EBITDA basis and undrawn revolver capacity
totaled $44.3 million.
First Quarter 2024 Guidance
|
|
Q1
2024
|
HSD Revenue
|
|
$104.0 - $107.0
million
|
Total
Revenue
|
|
$159.0 - $162.0
million
|
Adjusted
EBITDA
|
|
$64.0 - $67.0
million
|
|
|
|
HSD net
additions
|
|
(2,000) -
(500)
|
Webcast
WOW! will host a webcast on Wednesday, March 13, 2024, at 8:00 a.m. Eastern to discuss the operating and
financial 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:
|
Wednesday, March 13,
2024
|
|
Call Time:
|
8:00 a.m.
Eastern
|
|
Dial In:
|
(800)
715-9871
|
|
International:
|
(646)
307-1963
|
|
Conf. ID:
|
9830786
|
|
|
|
|
A replay of the call will be available on the investor relations
website or by telephone. To access the telephone replay, which will
be available until March 27, 2024 at
11:59 p.m. ET, please dial (800)
770-2030 or (609) 800-9909 and use conference ID 9830786.
WIDEOPENWEST, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(unaudited)
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
|
(in millions,
except share data)
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
23.4
|
|
$
|
31.0
|
Accounts
receivable—trade, net of allowance for doubtful accounts of $6.7
and $4.3, respectively
|
|
|
38.8
|
|
|
39.9
|
Accounts
receivable—other, net
|
|
|
9.5
|
|
|
12.2
|
Prepaid expenses and
other
|
|
|
38.5
|
|
|
37.8
|
Total current
assets
|
|
|
110.2
|
|
|
120.9
|
Right-of-use lease
assets—operating
|
|
|
20.1
|
|
|
15.0
|
Property, plant and
equipment, net
|
|
|
830.4
|
|
|
725.8
|
Franchise operating
rights
|
|
|
278.3
|
|
|
585.1
|
Goodwill
|
|
|
225.1
|
|
|
225.1
|
Intangible assets
subject to amortization, net
|
|
|
1.0
|
|
|
1.3
|
Other non-current
assets
|
|
|
49.6
|
|
|
44.2
|
Total
assets
|
|
$
|
1,514.7
|
|
$
|
1,717.4
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable—trade
|
|
$
|
59.5
|
|
$
|
46.1
|
Accrued
interest
|
|
|
1.6
|
|
|
0.1
|
Current portion of
long-term lease liability—operating
|
|
|
4.3
|
|
|
4.9
|
Accrued liabilities and
other
|
|
|
60.0
|
|
|
68.7
|
Current portion of
long-term debt and finance lease obligations
|
|
|
18.8
|
|
|
17.7
|
Current portion of
unearned service revenue
|
|
|
25.4
|
|
|
27.2
|
Total current
liabilities
|
|
|
169.6
|
|
|
164.7
|
Long-term debt and
finance lease obligations—less current portion and debt issuance
costs
|
|
|
915.7
|
|
|
725.0
|
Long-term lease
liability—operating
|
|
|
18.0
|
|
|
11.6
|
Deferred income taxes,
net
|
|
|
125.7
|
|
|
225.3
|
Other non-current
liabilities
|
|
|
27.5
|
|
|
15.7
|
Total
liabilities
|
|
|
1,256.5
|
|
|
1,142.3
|
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; 98,594,629 and 96,830,312
issued as
of December 31, 2023
and December 31, 2022, respectively; 83,557,786 and 86,417,733
outstanding as
of December 31, 2023
and December 31, 2022, respectively
|
|
|
1.0
|
|
|
1.0
|
Additional paid-in
capital
|
|
|
391.8
|
|
|
374.7
|
Accumulated
income
|
|
|
20.3
|
|
|
308.0
|
Treasury stock at cost,
15,036,843 and 10,412,579 shares as of December 31, 2023
and December 31, 2022, respectively
|
|
|
(154.9)
|
|
|
(108.6)
|
Total stockholders'
equity
|
|
|
258.2
|
|
|
575.1
|
Total liabilities and
stockholders' equity
|
|
$
|
1,514.7
|
|
$
|
1,717.4
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS FOR THE THREE MONTHS AND YEAR
ENDED
(unaudited)
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
(in millions, except
for share data)
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSD
|
|
$
|
108.7
|
|
$
|
107.1
|
|
$
|
430.4
|
|
$
|
412.1
|
|
Video
|
|
|
35.0
|
|
|
43.6
|
|
|
157.6
|
|
|
185.2
|
|
Telephony
|
|
|
11.8
|
|
|
12.4
|
|
|
47.6
|
|
|
51.4
|
|
Total subscription
services revenue
|
|
|
155.5
|
|
|
163.1
|
|
|
635.6
|
|
|
648.7
|
|
Other business
services
|
|
|
5.3
|
|
|
5.1
|
|
|
21.0
|
|
|
21.2
|
|
Other
|
|
|
8.0
|
|
|
12.3
|
|
|
30.1
|
|
|
35.0
|
|
Total
revenue
|
|
|
168.8
|
|
|
180.5
|
|
|
686.7
|
|
|
704.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (excluding
depreciation and amortization)
|
|
|
71.7
|
|
|
77.6
|
|
|
301.0
|
|
|
327.0
|
|
Selling, general and
administrative
|
|
|
33.8
|
|
|
48.1
|
|
|
200.4
|
|
|
165.4
|
|
Depreciation and
amortization
|
|
|
51.9
|
|
|
45.3
|
|
|
193.5
|
|
|
178.2
|
|
Impairment losses on
intangibles
|
|
|
47.0
|
|
|
35.0
|
|
|
306.8
|
|
|
35.0
|
|
|
|
|
204.4
|
|
|
206.0
|
|
|
1,001.7
|
|
|
705.6
|
|
Loss from
operations
|
|
|
(35.6)
|
|
|
(25.5)
|
|
|
(315.0)
|
|
|
(0.7)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(20.0)
|
|
|
(12.9)
|
|
|
(71.1)
|
|
|
(38.7)
|
|
Other income,
net
|
|
|
0.4
|
|
|
0.9
|
|
|
2.3
|
|
|
16.6
|
|
Loss from operations
before provision for income tax
|
|
|
(55.2)
|
|
|
(37.5)
|
|
|
(383.8)
|
|
|
(22.8)
|
|
Income tax
benefit
|
|
|
11.7
|
|
|
24.8
|
|
|
96.1
|
|
|
20.3
|
|
Net loss
|
|
$
|
(43.5)
|
|
$
|
(12.7)
|
|
$
|
(287.7)
|
|
$
|
(2.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.54)
|
|
$
|
(0.15)
|
|
$
|
(3.53)
|
|
$
|
(0.03)
|
|
Diluted
|
|
$
|
(0.54)
|
|
$
|
(0.15)
|
|
$
|
(3.53)
|
|
$
|
(0.03)
|
|
Weighted-average common
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
80,999,350
|
|
|
83,993,031
|
|
|
81,595,766
|
|
|
83,930,984
|
|
Diluted
|
|
|
80,999,350
|
|
|
83,993,031
|
|
|
81,595,766
|
|
|
83,930,984
|
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited)
|
|
|
|
Year
ended
|
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
|
(in millions)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(287.7)
|
|
$
|
(2.5)
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
193.1
|
|
|
179.3
|
Deferred income
taxes
|
|
|
(99.6)
|
|
|
(32.2)
|
Provision for doubtful
accounts
|
|
|
12.7
|
|
|
6.0
|
Loss (gain) on sale of
assets, net
|
|
|
0.3
|
|
|
—
|
Loss (gain) on sale of
operating assets, net
|
|
|
0.4
|
|
|
(1.1)
|
Amortization of debt
issuance costs and discount
|
|
|
1.7
|
|
|
1.7
|
Impairment losses on
intangibles
|
|
|
306.8
|
|
|
35.0
|
Non-cash
compensation
|
|
|
16.8
|
|
|
25.8
|
Other non-cash
items
|
|
|
(0.2)
|
|
|
(0.1)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Receivables and other
operating assets
|
|
|
(15.0)
|
|
|
(14.3)
|
Payables and
accruals
|
|
|
5.8
|
|
|
(163.8)
|
Net cash provided by
operating activities
|
|
$
|
135.1
|
|
$
|
33.8
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(268.9)
|
|
|
(167.2)
|
Other investing
activities
|
|
|
0.1
|
|
|
1.4
|
Net cash (used in)
provided by investing activities
|
|
$
|
(268.8)
|
|
$
|
(165.8)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from issuance
of long-term debt, net
|
|
$
|
202.0
|
|
$
|
9.0
|
Payments on long-term
debt and finance lease obligations
|
|
|
(29.6)
|
|
|
(19.8)
|
Purchase of
shares
|
|
|
(46.3)
|
|
|
(19.4)
|
Net cash provided by
(used in) financing activities
|
|
$
|
126.1
|
|
$
|
(30.2)
|
Increase (decrease) in
cash and cash equivalents
|
|
|
(7.6)
|
|
|
(162.2)
|
Cash and cash
equivalents, beginning of period
|
|
|
31.0
|
|
|
193.2
|
Cash and cash
equivalents, end of period
|
|
$
|
23.4
|
|
$
|
31.0
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
Cash paid during the
periods for interest
|
|
$
|
67.5
|
|
$
|
37.8
|
Cash paid during the
periods for income taxes
|
|
$
|
10.9
|
|
$
|
147.5
|
Cash received during
the periods for refunds of income taxes
|
|
$
|
5.0
|
|
$
|
1.7
|
Non-cash operating
activities:
|
|
|
|
|
|
|
Operating lease
additions
|
|
$
|
11.0
|
|
$
|
2.7
|
Non-cash financing
activities:
|
|
|
|
|
|
|
Finance lease
additions
|
|
$
|
16.3
|
|
$
|
10.3
|
Other financing
arrangements
|
|
|
1.5
|
|
|
—
|
Capital expenditures
within accounts payable and accruals
|
|
$
|
42.6
|
|
$
|
32.0
|
About WOW!
WOW! is one of the nation's leading
broadband providers, with an efficient and high-performing network
that passes nearly 2 million residential, business and wholesale
consumers. WOW! provides services in 16 markets, primarily in the
Midwest and Southeast, including Michigan, Alabama, Tennessee, South
Carolina, Georgia and
Florida, including the new
all-fiber network in Central
Florida. With an expansive portfolio of advanced services,
including high-speed Internet services, cable TV, home phone,
mobile 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 10 times by the National
Association for Business Resources as a Best & Brightest
Company to Work For in the Nation, winning the award for the last
six consecutive years and making the 2022 Top 101 National Winners
list. Visit 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. 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.
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 Adjusted EBITDA
Margin to Net (Loss) Income and Net Profit Margin for the
periods presented:
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(in millions)
|
Net loss
|
|
$
|
(43.5)
|
|
$
|
(12.7)
|
|
$
|
(287.7)
|
|
$
|
(2.5)
|
Net Profit
Margin
|
|
|
(25.8) %
|
|
|
(7.0) %
|
|
|
(41.9) %
|
|
|
(0.4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Depreciation and
amortization
|
|
|
51.9
|
|
|
45.3
|
|
|
193.5
|
|
|
178.2
|
Impairment losses on
intangibles
|
|
|
47.0
|
|
|
35.0
|
|
|
306.8
|
|
|
35.0
|
Interest
expense
|
|
|
20.0
|
|
|
12.9
|
|
|
71.1
|
|
|
38.7
|
Non-recurring
professional fees, M&A integration and restructuring
expense
|
|
|
4.9
|
|
|
12.5
|
|
|
27.8
|
|
|
41.8
|
Patent litigation
settlement
|
|
|
—
|
|
|
—
|
|
|
45.4
|
|
|
—
|
Non-cash stock
compensation
|
|
|
2.9
|
|
|
7.3
|
|
|
16.8
|
|
|
25.8
|
Other income,
net
|
|
|
(0.3)
|
|
|
(0.9)
|
|
|
(2.2)
|
|
|
(16.6)
|
Income tax
benefit
|
|
|
(11.7)
|
|
|
(24.8)
|
|
|
(96.1)
|
|
|
(20.3)
|
Adjusted
EBITDA
|
|
$
|
71.2
|
|
$
|
74.6
|
|
$
|
275.4
|
|
$
|
280.1
|
Adjusted EBITDA
Margin
|
|
|
42.2 %
|
|
|
41.3 %
|
|
|
40.1 %
|
|
|
39.7 %
|
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
|
|
Year
ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(in millions)
|
Scalable
infrastructure
|
|
$
|
35.4
|
|
$
|
15.6
|
|
$
|
80.1
|
|
$
|
39.4
|
Customer premise
equipment
|
|
|
17.4
|
|
|
16.5
|
|
|
65.7
|
|
|
64.6
|
Line
extensions
|
|
|
13.1
|
|
|
10.1
|
|
|
70.2
|
|
|
26.8
|
Support capital and
other
|
|
|
14.7
|
|
|
10.5
|
|
|
52.9
|
|
|
36.4
|
Total
|
|
$
|
80.6
|
|
$
|
52.7
|
|
$
|
268.9
|
|
$
|
167.2
|
Capital expenditures
included in total related to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Greenfields
|
|
$
|
33.8
|
|
$
|
10.7
|
|
$
|
105.0
|
|
$
|
21.5
|
Edge-outs
|
|
$
|
3.4
|
|
$
|
1.3
|
|
$
|
13.4
|
|
$
|
4.7
|
Business
services
|
|
$
|
3.6
|
|
$
|
2.5
|
|
$
|
14.0
|
|
$
|
11.6
|
The following table
provides an unaudited summary of our continuing operations
subscriber information:
|
|
|
|
December
31,
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
|
2022
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
Homes Passed
|
|
1,886,000
|
|
1,885,700
|
|
1,892,600
|
|
1,905,600
|
|
1,932,200
|
Total
Subscribers
|
|
530,600
|
|
527,300
|
|
522,400
|
|
517,400
|
|
504,100
|
HSD RGUs
|
|
511,600
|
|
508,700
|
|
507,800
|
|
503,400
|
|
490,100
|
Video RGUs
|
|
123,200
|
|
117,100
|
|
110,000
|
|
100,800
|
|
90,800
|
Telephony
RGUs
|
|
89,900
|
|
87,700
|
|
85,300
|
|
82,700
|
|
79,500
|
Total RGUs
|
|
724,700
|
|
713,500
|
|
703,100
|
|
686,900
|
|
660,400
|
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 Annual Report on Form 10-K for the year ended
December 31, 2023, which will be
posted on our investor relations website at ir.wowway.com,
when it is filed with 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-fourth-quarter-and-full-year-2023-results-302087319.html
SOURCE WideOpenWest, Inc.