ENGLEWOOD, Colo.,
Feb. 24, 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
quarter and year ended December 31,
2021.
Financial Highlights
(1)(2)
- Fourth quarter Total Revenue from continuing operations
of $178.3 million, a decrease of
$8.7 million, or 5%, compared to the
fourth quarter of 2020
- Full year Total Revenue from continuing operations of
$725.7 million, a decrease of
$4.5 million, or 1%, compared to the
corresponding period of 2020
- Fourth quarter HSD Revenue from continuing operations
totaled $100.5 million, an increase
of $4.9 million, or 5%, compared to
fourth quarter of 2020
- Full year HSD Revenue from continuing operations totaled
$399.1 million, an increase of
$40.1 million, or 11%, compared to
the corresponding period of 2020
- Net Loss from continuing operations was $2.2 million and $68.6
million for the quarter and year ended December 31, 2021
- Fourth quarter Pro Forma Adjusted EBITDA was $69.0 million, a decrease of $0.1 million, compared to the fourth quarter of
2020
- Fourth quarter Pro Forma Adjusted EBITDA margin of 38.7%
compared to 37.0% for the fourth quarter of 2020
- Full year Pro Forma Adjusted EBITDA was $261.6 million, an increase of $20.9 million, or 9%, compared to the
corresponding period of 2020
- Full year Pro Forma Adjusted EBITDA margin of 36.0%
compared to 33.0% for the corresponding period of 2020
- Added 2,200 HSD RGUs in the fourth quarter and 12,900 HSD
RGUs during 2021
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, and
reconciliation of non-GAAP measures to the
closestcomparable 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.
|
Business Highlights
- Completed the second sale in November of three service
areas to Astound Broadband for $661
million
- Received credit upgrade from both Moody's and S&P to
B1/BB- respectively on transformative deleveraging
- Closed refinancing with a new credit facility in
December, consisting of $730 million
term loan B and $250 million
revolver
- Announced first greenfield markets in Seminole County and Orange County, Florida
"This past year has been one of the most
consequential years in WOW!'s history. We continued to execute our
strategy, growing high-speed data revenue from continuing
operations by more than 11% from last year, increasing pro forma
adjusted EBITDA by nearly 9% and dramatically lowering our leverage
ratio to become a low-leverage, high-growth company," said
Teresa Elder, WOW!'s CEO." This
enabled us to launch our first greenfield markets in Seminole County and Orange County, Florida which is an exciting
next step in WOW!'s growth as we look forward to delivering choice,
reliability and the value of WOW! to all of our
customers."
"We transformed the financial position of
WOW! and continue to make great progress in executing our
broadband-first strategy as our high-speed data business now makes
up the majority of our revenue," said John Rego, WOW!'s CFO. "These great
results drove margin expansion for the fourth quarter and full year
and positions us well for future growth in
2022."
Revenue
Total Revenue from
continuing operations was $178.3
million and $725.7 million for
the quarter and year ended December 31,
2021, down $8.7 million and
$4.5 million as compared to the
corresponding periods in 2020.
Total Subscription Revenue from continuing operations for
the quarter and year ended December 31, 2021 was $165.1 million and $672.0 million, down $6.1
million, or 4%, and $0.1
million, as compared to the corresponding periods in 2020.
The decreases were driven by a shift in service offering mix, as we
continue to experience a reduction in Video and Telephony RGUs.
These decreases were offsetby increases 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.
Other Business Services Revenue from continuing operations
totaled $5.4 million and $22.3 million for the quarter and
year ended December 31,
2021, down $0.3
million and $1.1 million as
compared to the corresponding periods in 2020.
These decreases were primarily due to decreases in data
center revenue.
Other Revenue from continuing operations totaled
$7.8 million and $31.4 million for the quarter and year ended
December 31, 2021, down $2.3 million and $3.3
million compared to the corresponding periods in 2020,
primarily due to decreases in advertising, service call fee, and
line assurance revenue.
Costs and Expenses
Operating
Expenses (excluding Depreciation and Amortization) from continuing
operations totaled $89.5 million and
$376.4 million for the quarter and
year ended December 31, 2021, down
$9.1 million, or 9%, and $28.8 million, or 7%, compared to the
corresponding periods in 2020 primarily due to lower direct
operating expenses.
Selling, General, and Administrative expenses from
continuing operations totaled $42.4
million and $175.2 million for
the quarter and year ended December 31,
2021, down $2.8 million, or
6%, and up $5.0 million, or 3%,
compared to the corresponding periods in 2021. The decrease for the
quarter-to-date period is primarily related to a decrease in
marketing expenses. The increase for the year-to-date period is
primarily attributable to increases in marketing, compensation
(including stock compensation), professional service and legal
expenses associated with the sale of five of our markets and the
refinancing of our long-term debt, partially offset by decreases in
costs associated with digital transformation
initiatives.
Net Loss (Income)
Net Loss from
continuing operations for the quarter and year ended December 31, 2021 was $2.2
million and $68.6 million,
compared to $33.9 million and
$108.3 million for the year ended
December 31, 2020.
Pro Forma Adjusted EBITDA
Pro
Forma Adjusted EBITDA for the quarter and year ended December 31, 2021 was $69.0 million and $261.6
million, a decrease of $0.1
million and increase of $20.9
million, compared to the corresponding periods in 2020. Pro
Forma Adjusted EBITDA margin was 38.7% and 36.0% for the quarter
and year ended December 31, 2021 as
compared to 37.0% and 33.0% for the quarter and year ended
December 31, 2020.
Subscribers
WOW! reported Total
Subscribers from continuing operations of 532,900 as of
December 31, 2021, an increase of
10,000, or 2%, compared to December 31,
2020, up 1,300 compared to September
30, 2021. HSD RGUs totaled 511,700 as of December 31, 2021, an increase of 12,900, or 3%,
compared to December 31, 2020, up
2,200 compared to September 30,
2021.
Edge-Outs
Edge-Out
Projects from continuing operations reached a total of 78,200 homes
passed and 19,300 Subscribers since inception.
The 2019 Edge-Out projects from continuing operations
include 2,000 Subscribers, which represents 19.6% 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 600 Subscribers, which represents 30.0% penetration on such
nodes.
Capital Expenditures
Capital
Expenditures from continuing operations totaled $162.3 million for the year ended December 31, 2021, representing a decrease of
$9.1 million, or 5%, compared to the
year ended December 31,
2020.The decrease is primarily due to a
decrease in expenditures related to customer premise equipment
("CPE") partially offset by network enhancements focused on
increasing bandwidth capacity, standardization and reliability to
meet the needs of our customers. Capital Expenditures for the year
ended December 31, 2021 equates to
22% of Total Revenue from continuing operations for the year ended
December 31, 2021.
Liquidity and Leverage
As of
December 31, 2021, the total
outstanding amount of long-term debt and finance lease obligations
was $752.7 million, and cash and cash
equivalents were $193.2 million, the
majority of which is being held for the remaining income taxes as a
result of the sale of our service areas, due in April 2022. Total Net Leverage, adjusting for
cash held for taxes, as of December 31,
2021, was 2.7X on a LTM Pro Forma Adjusted EBITDA basis, up
from 2.6X at September 30, 2021, and
undrawn revolver capacity totaled $250.0
million.
First Quarter and Full Year 2022
Guidance
|
|
|
|
|
|
|
Q1 2022
|
|
Full Year 2022
|
HSD
Revenue
|
|
$99.0 - $102.0
million
|
|
$427.0 - $430.0
million
|
Total
Revenue
|
|
$171.0 - $174.0
million
|
|
$708.0 - $711.0
million
|
Adjusted
EBITDA
|
|
$65.0 - $68.0
million
|
|
$281.0 - $284.0
million
|
|
|
|
|
|
HSD net
additions
|
|
2,300 -
2,700
|
|
14,000 -
17,000
|
Webcast
WOW! will host a webcast on
Thursday, February 24, 2022, 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:
|
Thursday, February
24, 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 February 24, 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 March 8, 2022, at
11:59 p.m. ET, please dial (800)
770-2030 and use conference ID 4844814.
WIDEOPENWEST, INC.
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(unaudited)
|
|
|
|
December 31,
|
|
|
2021
|
|
2020
|
|
|
(in millions, except share
data)
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
193.2
|
|
$
|
12.4
|
Accounts
receivable—trade, net of allowance for doubtful accounts of $4.3
and $6.7, respectively
|
|
|
40.9
|
|
|
44.4
|
Accounts
receivable—other, net
|
|
|
17.2
|
|
|
2.8
|
Prepaid expenses and
other
|
|
|
30.7
|
|
|
16.0
|
Current assets held for
sale
|
|
|
—
|
|
|
39.2
|
Total current
assets
|
|
|
282.0
|
|
|
114.8
|
Right-of-use lease
assets—operating
|
|
|
17.2
|
|
|
22.1
|
Property, plant and
equipment, net
|
|
|
722.3
|
|
|
720.9
|
Franchise operating
rights
|
|
|
620.1
|
|
|
620.1
|
Goodwill
|
|
|
225.1
|
|
|
225.1
|
Intangible assets
subject to amortization, net
|
|
|
1.7
|
|
|
1.9
|
Other non-current
assets
|
|
|
38.3
|
|
|
42.1
|
Non-current assets
held for sale
|
|
|
—
|
|
|
740.0
|
Total
assets
|
|
$
|
1,906.7
|
|
$
|
2,487.0
|
Liabilities and
stockholders' equity (deficit)
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable—trade
|
|
$
|
50.3
|
|
$
|
32.4
|
Accrued
interest
|
|
|
0.8
|
|
|
4.0
|
Current portion of
long-term lease liability—operating
|
|
|
5.1
|
|
|
5.8
|
Accrued liabilities and
other
|
|
|
218.7
|
|
|
79.7
|
Current portion of
long-term debt and finance lease obligations
|
|
|
17.9
|
|
|
37.5
|
Current portion of
unearned service revenue
|
|
|
28.1
|
|
|
28.6
|
Current liabilities
held for sale
|
|
|
—
|
|
|
47.9
|
Total current
liabilities
|
|
|
320.9
|
|
|
235.9
|
Long-term debt and
finance lease obligations—less current portion and debt issuance
costs
|
|
|
723.5
|
|
|
2,228.5
|
Long-term lease
liability—operating
|
|
|
13.8
|
|
|
19.0
|
Deferred income
taxes, net
|
|
|
257.6
|
|
|
200.6
|
Other non-current
liabilities
|
|
|
20.1
|
|
|
13.1
|
Non-current
liabilities held for sale
|
|
|
—
|
|
|
2.3
|
Total
liabilities
|
|
|
1,335.9
|
|
|
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; 96,225,910 and 95,187,161
issued as
of December 31, 2021 and December 31, 2020,
respectively; 87,392,088 and 86,847,797 outstanding as
of December 31, 2021 and December 31, 2020,
respectively
|
|
|
1.0
|
|
|
1.0
|
Additional paid-in
capital
|
|
|
348.5
|
|
|
333.8
|
Accumulated other
comprehensive income (loss)
|
|
|
—
|
|
|
(6.5)
|
Accumulated income
(deficit)
|
|
|
310.5
|
|
|
(460.0)
|
Treasury stock at
cost, 8,833,822 and 8,339,364 shares as of
December 31, 2021 and
December 31, 2020, respectively
|
|
|
(89.2)
|
|
|
(80.7)
|
Total stockholders'
equity (deficit)
|
|
|
570.8
|
|
|
(212.4)
|
Total liabilities and
stockholders' equity (deficit)
|
|
$
|
1,906.7
|
|
$
|
2,487.0
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED
(unaudited)
|
|
|
|
Three months ended
|
|
Three months ended
|
|
|
December 31, 2021
|
|
December 31, 2020
|
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
|
(in millions,
except per share data)
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSD
|
|
$
|
100.5
|
|
$
|
7.7
|
|
$
|
108.2
|
|
$
|
95.6
|
|
$
|
55.1
|
|
$
|
150.7
|
Video
|
|
|
51.0
|
|
|
4.8
|
|
|
55.8
|
|
|
60.3
|
|
|
38.7
|
|
|
99.0
|
Telephony
|
|
|
13.6
|
|
|
1.1
|
|
|
14.7
|
|
|
15.3
|
|
|
7.1
|
|
|
22.4
|
Total subscription
services revenue
|
|
|
165.1
|
|
|
13.6
|
|
|
178.7
|
|
|
171.2
|
|
|
100.9
|
|
|
272.1
|
Other business
services
|
|
|
5.4
|
|
|
—
|
|
|
5.4
|
|
|
5.7
|
|
|
0.4
|
|
|
6.1
|
Other
|
|
|
7.8
|
|
|
0.8
|
|
|
8.6
|
|
|
10.1
|
|
|
4.9
|
|
|
15.0
|
Total
revenue
|
|
|
178.3
|
|
|
14.4
|
|
|
192.7
|
|
|
187.0
|
|
|
106.2
|
|
|
293.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (excluding
depreciation and
amortization)
|
|
|
89.5
|
|
|
5.9
|
|
|
95.4
|
|
|
98.6
|
|
|
37.3
|
|
|
135.9
|
Selling, general and
administrative
|
|
|
42.4
|
|
|
1.1
|
|
|
43.5
|
|
|
45.2
|
|
|
0.8
|
|
|
46.0
|
Depreciation and
amortization
|
|
|
43.3
|
|
|
—
|
|
|
43.3
|
|
|
39.5
|
|
|
20.3
|
|
|
59.8
|
Impairment losses on
intangibles and
goodwill
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.0
|
|
|
—
|
|
|
14.0
|
|
|
|
175.2
|
|
|
7.0
|
|
|
182.2
|
|
|
197.3
|
|
|
58.4
|
|
|
255.7
|
Income (loss) from
operations
|
|
|
3.1
|
|
|
7.4
|
|
|
10.5
|
|
|
(10.3)
|
|
|
47.8
|
|
|
37.5
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (expense)
income
|
|
|
(10.9)
|
|
|
—
|
|
|
(10.9)
|
|
|
(31.9)
|
|
|
(0.7)
|
|
|
(32.6)
|
Gain (loss) on sale of
assets, net
|
|
|
—
|
|
|
311.7
|
|
|
311.7
|
|
|
(0.3)
|
|
|
(0.1)
|
|
|
(0.4)
|
Loss on early
extinguishment of debt
|
|
|
(3.2)
|
|
|
—
|
|
|
(3.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
Other income,
net
|
|
|
7.1
|
|
|
—
|
|
|
7.1
|
|
|
(0.2)
|
|
|
0.4
|
|
|
0.2
|
(Loss) income before
provision for
income taxes
|
|
|
(3.9)
|
|
|
319.1
|
|
|
315.2
|
|
|
(42.7)
|
|
|
47.4
|
|
|
4.7
|
Income tax
benefit
|
|
|
1.7
|
|
|
(86.3)
|
|
|
(84.6)
|
|
|
8.8
|
|
|
(10.4)
|
|
|
(1.6)
|
Net (loss)
income
|
|
$
|
(2.2)
|
|
$
|
232.8
|
|
$
|
230.6
|
|
$
|
(33.9)
|
|
$
|
37.0
|
|
$
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.03)
|
|
$
|
2.80
|
|
$
|
2.77
|
|
$
|
(0.39)
|
|
$
|
0.43
|
|
$
|
0.04
|
Diluted
|
|
$
|
(0.03)
|
|
$
|
2.80
|
|
$
|
2.77
|
|
$
|
(0.39)
|
|
$
|
0.43
|
|
$
|
0.04
|
Weighted-average
common shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
83,031,566
|
|
|
|
|
|
|
|
|
81,816,946
|
|
|
|
|
|
|
Diluted
|
|
|
83,031,566
|
|
|
|
|
|
|
|
|
81,816,946
|
|
|
|
|
|
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED
(unaudited)
|
|
|
|
Year ended
|
|
Year ended
|
|
|
December 31, 2021
|
|
December 31, 2020
|
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
Continued
|
|
Discontinued
|
|
Total
|
|
|
(in millions,
except per share data)
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSD
|
|
$
|
399.1
|
|
$
|
167.9
|
|
$
|
567.0
|
|
$
|
359.0
|
|
$
|
208.2
|
|
$
|
567.2
|
Video
|
|
|
215.5
|
|
|
105.9
|
|
|
321.4
|
|
|
247.8
|
|
|
161.0
|
|
|
408.8
|
Telephony
|
|
|
57.4
|
|
|
19.9
|
|
|
77.3
|
|
|
65.3
|
|
|
28.8
|
|
|
94.1
|
Total subscription
services revenue
|
|
|
672.0
|
|
|
293.7
|
|
|
965.7
|
|
|
672.1
|
|
|
398.0
|
|
|
1,070.1
|
Other business
services
|
|
|
22.3
|
|
|
1.6
|
|
|
23.9
|
|
|
23.4
|
|
|
1.9
|
|
|
25.3
|
Other
|
|
|
31.4
|
|
|
13.0
|
|
|
44.4
|
|
|
34.7
|
|
|
18.3
|
|
|
53.0
|
Total
revenue
|
|
|
725.7
|
|
|
308.3
|
|
|
1,034.0
|
|
|
730.2
|
|
|
418.2
|
|
|
1,148.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (excluding
depreciation
and amortization)
|
|
|
376.4
|
|
|
112.0
|
|
|
488.4
|
|
|
405.2
|
|
|
165.0
|
|
|
570.2
|
Selling, general and
administrative
|
|
|
175.2
|
|
|
11.8
|
|
|
187.0
|
|
|
170.2
|
|
|
12.3
|
|
|
182.5
|
Depreciation and
amortization
|
|
|
169.3
|
|
|
41.0
|
|
|
210.3
|
|
|
151.0
|
|
|
79.6
|
|
|
230.6
|
Impairment losses on
intangibles and
goodwill
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.0
|
|
|
—
|
|
|
14.0
|
|
|
|
720.9
|
|
|
164.8
|
|
|
885.7
|
|
|
740.4
|
|
|
256.9
|
|
|
997.3
|
Income (loss) from
operations
|
|
|
4.8
|
|
|
143.5
|
|
|
148.3
|
|
|
(10.2)
|
|
|
161.3
|
|
|
151.1
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(93.5)
|
|
|
0.4
|
|
|
(93.1)
|
|
|
(130.0)
|
|
|
(0.7)
|
|
|
(130.7)
|
Gain on sale of assets,
net
|
|
|
—
|
|
|
1,001.8
|
|
|
1,001.8
|
|
|
—
|
|
|
—
|
|
|
—
|
Loss on early
extinguishment of debt
|
|
|
(3.2)
|
|
|
—
|
|
|
(3.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
Other income,
net
|
|
|
9.5
|
|
|
0.1
|
|
|
9.6
|
|
|
1.3
|
|
|
0.5
|
|
|
1.8
|
(Loss) income before
provision for
income taxes
|
|
|
(82.4)
|
|
|
1,145.8
|
|
|
1,063.4
|
|
|
(138.9)
|
|
|
161.1
|
|
|
22.2
|
Income tax
benefit
|
|
|
13.8
|
|
|
(306.7)
|
|
|
(292.9)
|
|
|
30.6
|
|
|
(38.4)
|
|
|
(7.8)
|
Net (loss)
income
|
|
$
|
(68.6)
|
|
$
|
839.1
|
|
$
|
770.5
|
|
$
|
(108.3)
|
|
$
|
122.7
|
|
$
|
14.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.83)
|
|
$
|
10.14
|
|
$
|
9.31
|
|
$
|
(1.33)
|
|
$
|
1.51
|
|
$
|
0.18
|
Diluted
|
|
$
|
(0.83)
|
|
$
|
10.14
|
|
$
|
9.31
|
|
$
|
(1.33)
|
|
$
|
1.51
|
|
$
|
0.18
|
Weighted-average
common shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
82,720,934
|
|
|
|
|
|
|
|
|
81,561,707
|
|
|
|
|
|
|
Diluted
|
|
|
82,720,934
|
|
|
|
|
|
|
|
|
81,561,707
|
|
|
|
|
|
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited)
|
|
|
|
Year Ended
|
|
|
December 31,
|
|
|
2021
|
|
2020
|
|
|
(in millions)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
770.5
|
|
$
|
14.4
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
210.3
|
|
|
230.6
|
Deferred income
taxes
|
|
|
54.9
|
|
|
5.3
|
Provision for doubtful
accounts
|
|
|
11.2
|
|
|
16.8
|
Gain on sale of
markets
|
|
|
(1,001.3)
|
|
|
—
|
Gain on sale of
assets, net
|
|
|
(0.5)
|
|
|
—
|
Amortization of debt
issuance costs and discount
|
|
|
4.7
|
|
|
4.7
|
Loss on debt
extinguishment
|
|
|
3.2
|
|
|
—
|
Impairment losses on
intangibles and goodwill
|
|
|
—
|
|
|
14.0
|
Non-cash
compensation
|
|
|
15.3
|
|
|
11.1
|
Other non-cash
items
|
|
|
(0.2)
|
|
|
(0.2)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Receivables and other
operating assets
|
|
|
(27.9)
|
|
|
(28.1)
|
Payables and
accruals
|
|
|
133.8
|
|
|
8.8
|
Net cash provided by
operating activities
|
|
$
|
174.0
|
|
$
|
277.4
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
(207.7)
|
|
$
|
(234.1)
|
Proceeds from sale of
markets, net
|
|
|
1,765.7
|
|
|
—
|
Other investing
activities
|
|
|
1.3
|
|
|
(0.2)
|
Net cash provided by
(used in) investing activities
|
|
$
|
1,559.3
|
|
$
|
(234.3)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from issuance
of long-term debt, net
|
|
$
|
762.1
|
|
$
|
91.0
|
Payments on long-term
debt and finance lease obligations
|
|
|
(2,303.5)
|
|
|
(141.7)
|
Payments of debt
issuance costs
|
|
|
(2.6)
|
|
|
—
|
Purchase of
shares
|
|
|
(8.5)
|
|
|
(1.0)
|
Net cash used in
financing activities
|
|
$
|
(1,552.5)
|
|
$
|
(51.7)
|
Increase (decrease)
in cash and cash equivalents
|
|
|
180.8
|
|
|
(8.6)
|
Cash and cash
equivalents, beginning of period
|
|
|
12.4
|
|
|
21.0
|
Cash and cash
equivalents, end of period
|
|
$
|
193.2
|
|
$
|
12.4
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
Cash paid during the
periods for interest
|
|
$
|
93.1
|
|
$
|
124.0
|
Cash paid during the
periods for income taxes
|
|
$
|
97.1
|
|
$
|
1.5
|
Cash received during
the periods for refunds of income taxes
|
|
$
|
—
|
|
$
|
4.6
|
Non-cash financing
activities:
|
|
|
|
|
|
|
Other financing
arrangements
|
|
$
|
—
|
|
$
|
1.1
|
Capital expenditure
accounts payable and accruals
|
|
$
|
27.4
|
|
$
|
19.1
|
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 located in 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. 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.
Refer to "Reconciliations of GAAP Measures to Non-GAAP
Measures" and the accompanying tables below for a
reconciliation of Adjusted EBITDA to Net Income which is the 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
|
|
Year ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
(in millions)
|
Net Income
|
|
$
|
230.6
|
|
$
|
3.1
|
|
$
|
770.5
|
|
$
|
14.4
|
Depreciation and
amortization
|
|
|
43.3
|
|
|
59.8
|
|
|
210.3
|
|
|
230.6
|
Impairment losses on
intangibles and goodwill
|
|
|
—
|
|
|
14.0
|
|
|
—
|
|
|
14.0
|
Interest
expense
|
|
|
10.9
|
|
|
32.6
|
|
|
93.1
|
|
|
130.7
|
Gain on sale of assets,
net
|
|
|
(311.7)
|
|
|
0.4
|
|
|
(1,001.8)
|
|
|
—
|
Non-recurring
professional fees, M&A integration and restructuring
expense
|
|
|
17.8
|
|
|
9.1
|
|
|
40.2
|
|
|
30.3
|
Non-cash stock
compensation
|
|
|
3.7
|
|
|
2.8
|
|
|
15.3
|
|
|
11.1
|
Loss on early
extinguishment of debt
|
|
|
3.2
|
|
|
—
|
|
|
3.2
|
|
|
—
|
Other income,
net
|
|
|
(7.1)
|
|
|
(0.2)
|
|
|
(9.6)
|
|
|
(1.8)
|
Income tax
expense
|
|
|
84.6
|
|
|
1.6
|
|
|
292.9
|
|
|
7.8
|
Adjusted
EBITDA
|
|
$
|
75.3
|
|
$
|
123.2
|
|
$
|
414.1
|
|
$
|
437.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Adjusted EBITDA
attributable to disposed service areas
|
|
|
(6.3)
|
|
|
(54.1)
|
|
|
(152.5)
|
|
|
(196.4)
|
Pro Forma Adjusted
EBITDA
|
|
$
|
69.0
|
|
$
|
69.1
|
|
$
|
261.6
|
|
$
|
240.7
|
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
|
|
Three months ended
|
|
|
December 31, 2021
|
|
December 31, 2020
|
|
|
Continuing
|
|
Discontinued
|
|
Total
|
|
Continuing
|
|
Discontinued
|
|
Total
|
|
|
(in millions)
|
Capital Expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer premise
equipment
|
|
$
|
12.9
|
|
$
|
2.2
|
|
$
|
15.1
|
|
$
|
25.0
|
|
$
|
13.4
|
|
$
|
38.4
|
Scalable
infrastructure
|
|
|
10.0
|
|
|
—
|
|
|
10.0
|
|
|
11.1
|
|
|
1.2
|
|
|
12.3
|
Line
extensions
|
|
|
2.1
|
|
|
1.3
|
|
|
3.4
|
|
|
2.8
|
|
|
1.1
|
|
|
3.9
|
Support capital and
other
|
|
|
11.1
|
|
|
0.7
|
|
|
11.8
|
|
|
11.1
|
|
|
2.1
|
|
|
13.2
|
Total
|
|
$
|
36.1
|
|
$
|
4.2
|
|
$
|
40.3
|
|
$
|
50.0
|
|
$
|
17.8
|
|
$
|
67.8
|
Capital expenditures
included in total related to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Edge-outs
|
|
$
|
1.3
|
|
$
|
—
|
|
$
|
1.3
|
|
$
|
1.5
|
|
$
|
0.6
|
|
$
|
2.1
|
Business
services
|
|
$
|
3.0
|
|
$
|
—
|
|
$
|
3.0
|
|
$
|
2.5
|
|
$
|
1.0
|
|
$
|
3.5
|
The following table
provides additional information regarding our Capital Expenditures
for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
|
|
Year ended
|
|
|
December 31, 2021
|
|
December 31, 2020
|
|
|
Continuing
|
|
Discontinued
|
|
Total
|
|
Continuing
|
|
Discontinued
|
|
Total
|
|
|
(in millions)
|
Capital Expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer premise
equipment
|
|
$
|
68.1
|
|
$
|
29.8
|
|
$
|
97.9
|
|
$
|
87.9
|
|
$
|
48.4
|
|
$
|
136.3
|
Scalable
infrastructure
|
|
|
40.3
|
|
|
3.2
|
|
|
43.5
|
|
|
32.2
|
|
|
2.0
|
|
|
34.2
|
Line
extensions
|
|
|
13.6
|
|
|
4.2
|
|
|
17.8
|
|
|
13.9
|
|
|
1.9
|
|
|
15.8
|
Support capital and
other
|
|
|
40.3
|
|
|
8.2
|
|
|
48.5
|
|
|
37.4
|
|
|
10.4
|
|
|
47.8
|
Total
|
|
$
|
162.3
|
|
$
|
45.4
|
|
$
|
207.7
|
|
$
|
171.4
|
|
$
|
62.7
|
|
$
|
234.1
|
Capital expenditures
included in
total related to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Edge-outs
|
|
$
|
4.5
|
|
$
|
1.4
|
|
$
|
5.9
|
|
$
|
6.5
|
|
$
|
2.1
|
|
$
|
8.6
|
Business
services
|
|
$
|
13.8
|
|
$
|
2.7
|
|
$
|
16.5
|
|
$
|
13.7
|
|
$
|
2.0
|
|
$
|
15.7
|
The following table
provides an unaudited summary of our continuing operations
subscriber information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
|
2020
(1)
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
Homes
Passed
|
|
1,871,800
|
|
1,873,900
|
|
1,877,300
|
|
1,880,900
|
|
1,882,100
|
Total
Subscribers
|
|
522,900
|
|
528,000
|
|
530,500
|
|
531,600
|
|
532,900
|
HSD RGUs
|
|
498,800
|
|
504,900
|
|
507,900
|
|
509,500
|
|
511,700
|
Video RGUs
|
|
189,400
|
|
178,800
|
|
169,300
|
|
158,600
|
|
150,600
|
Telephony
RGUs
|
|
110,400
|
|
108,000
|
|
105,600
|
|
102,400
|
|
100,000
|
Total RGUs
|
|
798,600
|
|
791,700
|
|
782,800
|
|
770,500
|
|
762,300
|
|
|
(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 Annual Report on Form 10-K for
the year ended December 31, 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
Vice President, Corporate
Communications
720-527-8214
debra.havins@wowinc.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/wow-reports-fourth-quarter-and-full-year-2021-results-301489145.html
SOURCE WideOpenWest, Inc.