ENGLEWOOD, Colo., Feb. 24, 2021 /PRNewswire/ -- WideOpenWest, Inc.
("WOW!" or the "Company") (NYSE: WOW), one of the nation's leading
broadband providers, with an efficient, high-performing network
that passes more than three million residential, business and
wholesale consumers, today announced financial and operating
results for the quarter and year ended December 31, 2020.
Fourth Quarter 2020
Highlights (1)
- Total Revenue of $293.2 million;
Net Income of $3.1 million; Diluted
Earnings Per Share of $0.04
- HSD Revenue totaled $150.7
million, an increase of $17.8
million or 13.4% compared to fourth quarter of 2019
- Added 4,900 HSD RGUs in the fourth quarter
- Adjusted EBITDA was $123.2
million with an Adjusted EBITDA margin of 42.0%
- Free Cash Flow totaled $9.5
million
Full Year 2020 Highlights (1)
- Total Revenue of $1,148.4
million; Net Income of $14.4
million; Diluted Earnings Per Share of $0.17
- HSD Revenue totaled $567.2
million, an increase of $46.2
million or 8.9% compared to 2019
- Added a record 32,300 HSD RGUs, a 36.3% increase compared to
2019 net additions
- Adjusted EBITDA was $437.1
million with an Adjusted EBITDA margin of 38.1%
- Free Cash Flow totaled $43.3
million
(1)
|
Refer to "Non-GAAP
Financial Measures and Operating Metrics," "Unaudited
Reconciliations of GAAP Measures to Non-GAAP Measures," and
"Unaudited Transaction Adjusted Condensed Consolidated Financial
and Subscriber Information" in this Press Release for definitions
and information related to Adjusted EBITDA, Free Cash Flow and
Transaction Adjusted financial information, reconciliation of such
non-GAAP measures to the closest comparable GAAP measures and why
our management thinks it is beneficial to present such non-GAAP
measures.
|
"I am really pleased with WOW!'s fourth quarter and full-year
results, including continued momentum in our high-speed data
business," said Teresa Elder, WOW!'s
CEO. "The success of our broadband-first strategy allowed us to end
2020 with record high-speed data revenue of $567 million, up 9% from 2019. As demand for
high-speed data grows, the investments we have made
in our fiber-rich network allow us to provide customers
with choice, reliability and value."
"Our operating discipline and growth in HSD resulted in
increased free cash flow to a record $43.3
million for the year," said John
Rego, WOW!'s CFO. "We delivered record HSD revenue for the
fourth quarter and full year, resulting in growth in Adjusted
EBITDA and Adjusted EBITDA margin. We added more HSD RGUs in 2020
than any previous year, further evidencing the shift in demand
toward HSD consumption."
Revenue
Total Revenue was $293.2 million and
$1,148.4 million for the quarter and
year ended December 31, 2020, up
$9.7 million and $2.6 million as compared to the corresponding
periods in 2019.
Total Subscription Revenue for the quarter and year ended
December 31, 2020, was $272.1 million and $1,070.1 million, up $10.4
million, or 4%, and $14.4
million, or 1%, as compared to the corresponding periods in
2019. These increases were driven by an increase in average revenue
per unit ("ARPU") as HSD sell-in ARPU has increased coupled with
periodic Video service rate increases and an increase in volume
almost exclusively attributable to the addition of HSD subscribers.
These increases were partially offset by a shift in service
offering mix, as the Company continues to experience a reduction in
Video and Telephony RGUs.
Other Business Services Revenue totaled $6.1 million and $25.3
million for the quarter and year ended December 31, 2020, down $0.3 million and $2.1
million as compared to the corresponding periods in
2019. These decreases were primarily due to decreases in data
center revenue.
Other Revenue totaled $15.0
million and $53.0 million for
the quarter and year ended December 31,
2020, down $0.4 million and
$9.7 million compared to the
corresponding periods in 2019, primarily due to decreases in
advertising, late fee and line assurance revenue.
Costs and Expenses
Operating Expenses (excluding Depreciation and Amortization)
totaled $135.8 million and
$570.2 million for the quarter and
year ended December 31, 2020, down
$8.8 million, or 6%, and $5.6 million, or 1%, compared to the
corresponding periods in 2019 primarily due to lower direct
expenses, specifically programming expense, partially offset by
increases in hardware and software expense. Selling, General, and
Administrative expenses totaled $46.1
million and $182.5 million for
the quarter and year ended December 31,
2020, up $8.7 million, or 23%,
and $10.2 million, or 6%, compared to
the corresponding periods in 2019 primarily due to increases in
digital transformation initiatives and marketing expense.
Net Income and Earnings Per Share
Net Income for the quarter and year ended December 31, 2020, was $3.1 million and $14.4
million, compared to $6.9
million and $36.4 million for
the year ended December 31, 2019.
Diluted Earnings Per Share for the quarter and year ended
December 31, 2020, was $0.04 and $0.17,
compared to Diluted Earnings Per Share of $0.08 and $0.45 for
the year ended December 31, 2019.
Adjusted EBITDA
Adjusted EBITDA for the quarter and year ended December 31, 2020, was $123.2 million and $437.1
million, an increase of $14.1
million and $1.8 million,
compared to the corresponding periods in 2019. Adjusted EBITDA
margin was 42.0% and 38.1% for the quarter and year ended
December 31, 2020 as compared to
38.5% and 38.0% for the quarter and year ended December 31, 2019.
Customers
WOW! reported Total Subscribers of 850,600 as of December 31, 2020, an increase of 27,200, or
3.3%, compared to December 31, 2019,
up 4,300 compared to September 30,
2020. HSD RGUs totaled 813,800 as of December 31, 2020, an increase of 32,300, or
4.1%, compared to December 31, 2019,
up 4,900 compared to September 30,
2020.
Edge-Outs
Edge-Out Projects reached a total of 194,000 homes passed and
47,900 Subscribers since inception.
The 2018 Edge-Out projects include 6,200 Customers, which
represents 20.3% penetration on such nodes. The 2019 Edge-Out
projects include 8,000 Customers, which represents 16.3%
penetration on such nodes. The 2020 Edge-Out projects now reach
6,100 homes passed.
Capital Expenditures
Capital Expenditures, on a reported basis, totaled $234.1 million for the year ended December 31, 2020, representing a $13.4 million, or 5.4%, decrease compared to the
year ended December 31, 2019. The
decrease is primarily due to a decrease in edge-out capital
expenditures as the Company shifts its focus to penetration within
its current footprint. Capital Expenditures for the year ended
December 31, 2020 equates to 20.4% of
Total Revenue for the year ended December
31, 2020.
Liquidity and Leverage
As of December 31, 2020, the total
outstanding amount of long-term debt and finance lease obligations
was $2.3 billion, and cash and cash
equivalents were $12.4 million. Total
Net Leverage as of December 31, 2020,
was 5.18X on a LTM Adjusted EBITDA basis, down from 5.36X at
September 30, 2020, and undrawn
revolver capacity totaled $256.6
million. Free Cash Flow was $43.3
million for the year ended December
31, 2020.
Estimated COVID-19 Impacts
Estimated EBITDA impacts due to COVID-19 for the year ended
December 31, 2020 total $12.7 million. The estimated impact is primarily
attributable to decreases in advertising and late
fee revenue, combined with increased marketing
costs.
First Quarter 2021 Guidance
|
|
|
Q1
2021
|
|
Total
Revenue
|
|
$281.0 - $284.0
million
|
|
HSD
Revenue
|
|
$150.0 - $152.0
million
|
|
Adjusted
EBITDA
|
|
$106.0 - $109.0
million
|
|
|
|
|
|
HSD net
additions
|
|
8,000 -
10,000
|
Webcast
WOW! will host a webcast on Wednesday,
February 24, 2021, at 5:00
p.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, February
24, 2021
|
|
Call Time:
|
5:00 p.m.
Eastern
|
|
Dial In:
|
(833)
312-1362
|
|
International:
|
(236)
714-2635
|
|
Conf. ID:
|
5177089
|
|
|
|
|
A replay of the call will be available on February 24, 2021, at 8:00
p.m. ET, on the investor relations website or by telephone.
To access the telephone replay, which will be available until
March 10, 2021, at 11:59 p.m. ET, please dial (800) 585-8367 and use
conference ID 5177089.
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
2020
|
|
2019
|
|
|
(in millions,
except share data)
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
12.4
|
|
$
|
21.0
|
Accounts
receivable—trade, net of allowance for doubtful accounts of $8.6
and $7.5, respectively
|
|
|
69.5
|
|
|
65.8
|
Accounts
receivable—other, net
|
|
|
3.7
|
|
|
9.8
|
Prepaid expenses and
other
|
|
|
29.2
|
|
|
22.1
|
Total current
assets
|
|
|
114.8
|
|
|
118.7
|
Right-of-use lease
assets—operating
|
|
|
24.9
|
|
|
26.5
|
Property, plant and
equipment, net
|
|
|
1,100.3
|
|
|
1,073.7
|
Franchise operating
rights
|
|
|
785.5
|
|
|
799.5
|
Goodwill
|
|
|
408.8
|
|
|
408.8
|
Intangible assets
subject to amortization, net
|
|
|
2.1
|
|
|
2.9
|
Other non-current
assets
|
|
|
50.6
|
|
|
41.5
|
Total
assets
|
|
$
|
2,487.0
|
|
$
|
2,471.6
|
Liabilities and
stockholders' deficit
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable—trade
|
|
$
|
43.8
|
|
$
|
47.1
|
Accrued
interest
|
|
|
4.0
|
|
|
2.7
|
Current portion of
long-term lease liability—operating
|
|
|
6.5
|
|
|
6.1
|
Accrued liabilities and
other
|
|
|
98.6
|
|
|
95.6
|
Current portion of
long-term debt and finance lease obligations
|
|
|
37.5
|
|
|
30.9
|
Current portion of
unearned service revenue
|
|
|
45.5
|
|
|
45.0
|
Total current
liabilities
|
|
|
235.9
|
|
|
227.4
|
Long-term debt and
finance lease obligations, net of debt issuance costs —less current
portion
|
|
|
2,228.5
|
|
|
2,259.5
|
Long-term lease
liability—operating
|
|
|
21.3
|
|
|
23.4
|
Deferred income
taxes, net
|
|
|
200.6
|
|
|
192.5
|
Other non-current
liabilities
|
|
|
13.1
|
|
|
14.7
|
Total
liabilities
|
|
|
2,699.4
|
|
|
2,717.5
|
Commitments and
contingencies
|
|
|
|
|
|
|
Stockholders'
deficit:
|
|
|
|
|
|
|
Preferred stock,
$0.01 par value, 100,000,000 shares authorized; 0 shares issued and
outstanding
|
|
|
—
|
|
|
—
|
Common stock, $0.01
par value, 700,000,000 shares authorized; 95,187,161 and 92,182,207
issued as of December 31, 2020 and
December 31, 2019, respectively; 86,847,797 and
84,103,108 outstanding as of December 31, 2020 and
December 31, 2019, respectively
|
|
|
1.0
|
|
|
0.9
|
Additional paid-in
capital
|
|
|
333.8
|
|
|
322.8
|
Accumulated other
comprehensive loss
|
|
|
(6.5)
|
|
|
(15.5)
|
Accumulated
deficit
|
|
|
(460.0)
|
|
|
(474.4)
|
Treasury stock at
cost, 8,339,364 and 8,079,099 shares as of
December 31, 2020 and December 31, 2019,
respectively
|
|
|
(80.7)
|
|
|
(79.7)
|
Total stockholders'
deficit
|
|
|
(212.4)
|
|
|
(245.9)
|
Total liabilities and
stockholders' deficit
|
|
$
|
2,487.0
|
|
$
|
2,471.6
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(in millions,
except per share data)
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
HSD
|
|
$
|
150.7
|
|
$
|
132.9
|
|
$
|
567.2
|
|
$
|
521.0
|
Video
|
|
|
99.0
|
|
|
105.0
|
|
|
408.8
|
|
|
432.0
|
Telephony
|
|
|
22.4
|
|
|
23.8
|
|
|
94.1
|
|
|
102.7
|
Total subscription
services revenue
|
|
|
272.1
|
|
|
261.7
|
|
|
1,070.1
|
|
|
1,055.7
|
Other business
services
|
|
|
6.1
|
|
|
6.4
|
|
|
25.3
|
|
|
27.4
|
Other
|
|
|
15.0
|
|
|
15.4
|
|
|
53.0
|
|
|
62.7
|
Total
revenue
|
|
|
293.2
|
|
|
283.5
|
|
|
1,148.4
|
|
|
1,145.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (excluding
depreciation and amortization)
|
|
|
135.8
|
|
|
144.6
|
|
|
570.2
|
|
|
575.8
|
Selling, general and
administrative
|
|
|
46.1
|
|
|
37.4
|
|
|
182.5
|
|
|
172.3
|
Depreciation and
amortization
|
|
|
59.8
|
|
|
54.7
|
|
|
230.6
|
|
|
206.2
|
Impairment losses on
intangibles and goodwill
|
|
|
14.0
|
|
|
9.7
|
|
|
14.0
|
|
|
9.7
|
Loss (gain) on sale of
operating assets, net
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
5.4
|
|
|
|
255.7
|
|
|
247.0
|
|
|
997.3
|
|
|
969.4
|
Income from
operations
|
|
|
37.5
|
|
|
36.5
|
|
|
151.1
|
|
|
176.4
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(32.6)
|
|
|
(34.7)
|
|
|
(130.7)
|
|
|
(142.1)
|
(Loss) gain on sale of
assets, net
|
|
|
(0.4)
|
|
|
—
|
|
|
—
|
|
|
—
|
Other income,
net
|
|
|
0.2
|
|
|
0.3
|
|
|
1.8
|
|
|
3.6
|
Income before
provision for income tax
|
|
|
4.7
|
|
|
2.1
|
|
|
22.2
|
|
|
37.9
|
Income tax (expense)
benefit
|
|
|
(1.6)
|
|
|
4.8
|
|
|
(7.8)
|
|
|
(1.5)
|
Net income
(loss)
|
|
$
|
3.1
|
|
$
|
6.9
|
|
$
|
14.4
|
|
$
|
36.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.04
|
|
$
|
0.08
|
|
$
|
0.18
|
|
$
|
0.45
|
Diluted
|
|
$
|
0.04
|
|
$
|
0.08
|
|
$
|
0.17
|
|
$
|
0.45
|
Weighted-average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
81,816,946
|
|
|
80,935,253
|
|
|
81,561,707
|
|
|
80,713,926
|
Diluted
|
|
|
83,722,435
|
|
|
81,181,003
|
|
|
82,814,810
|
|
|
81,189,162
|
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Year ended
December 31,
|
|
|
2020
|
|
2019
|
|
|
(in millions)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
14.4
|
|
$
|
36.4
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
230.6
|
|
|
206.2
|
Deferred income
taxes
|
|
|
5.3
|
|
|
4.3
|
Provision for doubtful
accounts
|
|
|
16.8
|
|
|
16.9
|
Loss (gain) on sale of
assets, net
|
|
|
—
|
|
|
5.4
|
Amortization of debt
issuance costs and discount
|
|
|
4.7
|
|
|
4.7
|
Impairment losses on
intangibles and goodwill
|
|
|
14.0
|
|
|
9.7
|
Non-cash
compensation
|
|
|
11.1
|
|
|
10.1
|
Other non-cash
items
|
|
|
(0.2)
|
|
|
0.6
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Receivables and other
operating assets
|
|
|
(28.1)
|
|
|
(25.2)
|
Payables and
accruals
|
|
|
8.8
|
|
|
(2.8)
|
Net cash provided by
operating activities
|
|
$
|
277.4
|
|
$
|
266.3
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
(234.1)
|
|
$
|
(247.5)
|
Proceeds from sale of
Chicago fiber assets
|
|
|
—
|
|
|
24.7
|
Other investing
activities
|
|
|
(0.2)
|
|
|
(1.3)
|
Net cash used in
investing activities
|
|
$
|
(234.3)
|
|
$
|
(224.1)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from issuance
of long-term debt
|
|
$
|
91.0
|
|
$
|
80.0
|
Payments on long-term
debt and finance lease obligations
|
|
|
(141.7)
|
|
|
(112.8)
|
Purchase of
shares
|
|
|
(1.0)
|
|
|
(1.6)
|
Net cash used in
financing activities
|
|
$
|
(51.7)
|
|
$
|
(34.4)
|
Increase (decrease)
in cash and cash equivalents
|
|
|
(8.6)
|
|
|
7.8
|
Cash and cash
equivalents, beginning of period
|
|
|
21.0
|
|
|
13.2
|
Cash and cash
equivalents, end of period
|
|
$
|
12.4
|
|
$
|
21.0
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
Cash paid during the
periods for interest
|
|
$
|
124.0
|
|
$
|
139.0
|
Cash paid during the
periods for income taxes
|
|
$
|
1.5
|
|
$
|
1.6
|
Cash received during
the periods for refunds of income taxes
|
|
$
|
4.6
|
|
$
|
4.4
|
Insurance proceeds
received for business interruption
|
|
$
|
—
|
|
$
|
9.6
|
Non-cash financing
activities:
|
|
|
|
|
|
|
Other financing
arrangements
|
|
$
|
1.1
|
|
$
|
—
|
Capital expenditure
accounts payable and accruals
|
|
$
|
19.1
|
|
$
|
16.8
|
About WOW!
WOW! is a leading broadband services provider offering
high-speed data ("HSD"), cable television ("Video"), and
digital telephony ("Telephony") services to residential and
business customers. Our vision is connecting people to their
world through the WOW! experience: reliable, easy, and pleasantly
surprising, every time. For more information, please visit
www.wowway.com.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements in this press release that are not historical
facts contain "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements represent our
goals, beliefs, plans and expectations about our prospects for the
future and other future events. Forward-looking statements include
all statements that are not historical fact and can be identified
by terms such as "may," "intend," "might," "will," "should,"
"could," "would," "anticipate," "expect," "believe," "estimate,"
"plan," "project," "predict," "potential," or the negative of these
terms. Although these forward-looking statements reflect our
good-faith belief and reasonable judgment based on current
information, these statements are qualified by important factors,
many of which are beyond our control that could cause our actual
results to differ materially from those in the forward-looking
statements. These factors and other risks that could cause our
actual results to differ materially are set forth in the section
entitled "Risk Factors" in our Annual Report filed on Form 10-K
with the Securities and Exchange Commission ("SEC") and other
reports subsequently filed with the SEC. Given these uncertainties,
you should not place undue reliance on any such forward-looking
statements. The forward-looking statements included in this report
are made as of the date hereof or the date specified herein, based
on information available to us as of such date. Except as required
by law, we assume no obligation to update these forward-looking
statements, even if new information becomes available in the
future.
Non-GAAP Financial Measures
The Company has included certain non-GAAP financial measures in
this release, including Adjusted EBITDA, Transaction Adjusted
Capital Expenditures, Transaction Adjusted Capital Expenditures
excluding Expansion Capital Expenditures and Free Cash Flow. These
terms, as defined herein, are not intended to be considered in
isolation, as a substitute for, or superior to, the financial
information prepared and presented in accordance with generally
accepted accounting principles in the
United States of America ("GAAP"). These terms may vary from
the use of similar terms by other companies in our industry due to
different methods of calculation and therefore are not necessarily
comparable.
We believe that these non-GAAP measures enhance an investor's
understanding of our financial performance. We believe that these
non-GAAP measures are useful financial metrics to assess our
operating performance from period to period by excluding certain
items that we believe are not representative of our core business.
We believe that these non-GAAP measures provide investors with
useful information for assessing the comparability between periods
of our ability to generate cash from operations sufficient to pay
taxes, to service debt and to undertake Capital Expenditures. We
use these non-GAAP measures for business planning purposes and in
measuring our performance relative to that of our competitors. We
believe these non-GAAP measures are measures commonly used by
investors to evaluate our performance and that of our
competitors.
Adjusted EBITDA eliminates the impact of expenses that do not
relate to overall business performance and is defined by WOW! as
net income (loss) before interest expense, income taxes,
depreciation and amortization (including impairments), impairment
losses on intangibles and goodwill, management fees to related
party, 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.
Transaction Adjusted Capital Expenditures and Transaction
Adjusted Capital Expenditures excluding Expansion Capital
Expenditures give effect to the reimbursement of Chicago fiber asset build, and exclude the
effects associated with Hurricane Michael and should not be
considered as an alternative to capital expenditures
Free Cash Flow is defined as Net Cash Provided by Operating
Activities less Capital Expenditures. Free Cash Flow presents the
cash generated or used by the business in a given period.
Refer to "Reconciliations of GAAP Measures to Non-GAAP
Measures" and the accompanying tables below for a
reconciliation of Adjusted EBITDA to Net Income, and Net Cash
Provided by Operating Activities to Free Cash Flow which are most
directly comparable to their corresponding GAAP financial
measure.
Subscriber Information
The Company uses the terms defined below throughout this
release.
Homes passed are reported as the number of serviceable
addresses, such as single residence homes, apartments and
condominium units, and businesses passed by our broadband network
and listed in our database.
We deliver multiple services to our customers, as such we report
Total Subscribers as the number of Subscribers who receive at least
one of our HSD, Video or Telephony services, without regard to
which or how many services they subscribe. We define each of the
individual HSD Subscribers, Video Subscribers and Telephony
Subscribers as a Revenue Generating Unit ("RGU").
While we take appropriate steps to ensure subscriber information
is presented on a consistent and accurate basis at any given
balance sheet date, we periodically review our policies in light of
the variability we may encounter across our different markets due
to the nature and pricing of products and services and billing
systems. Accordingly, we may from time to time make appropriate
adjustments to our subscriber information based on such
reviews.
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
Reconciliations of
GAAP Measures to Non-GAAP Measures
|
(unaudited)
|
|
The following table
provides a reconciliation of Adjusted EBITDA to Net Income for the
quarter and year ended December 31, 2020 and 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(in millions)
|
Net Income
|
|
$
|
3.1
|
|
$
|
6.9
|
|
$
|
14.4
|
|
$
|
36.4
|
Depreciation and
amortization
|
|
|
59.8
|
|
|
54.7
|
|
|
230.6
|
|
|
206.2
|
Impairment loss on
intangibles and goodwill
|
|
|
14.0
|
|
|
9.7
|
|
|
14.0
|
|
|
9.7
|
Loss on sale of
operating assets, net
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
5.4
|
Interest
expense
|
|
|
32.6
|
|
|
34.7
|
|
|
130.7
|
|
|
142.1
|
Non-recurring
professional fees, M&A integration and restructuring
expense
|
|
|
9.1
|
|
|
5.3
|
|
|
30.3
|
|
|
27.5
|
Non-cash stock
compensation
|
|
|
2.8
|
|
|
2.3
|
|
|
11.1
|
|
|
10.1
|
Other income,
net
|
|
|
0.2
|
|
|
(0.3)
|
|
|
(1.8)
|
|
|
(3.6)
|
Income tax (benefit)
expense
|
|
|
1.6
|
|
|
(4.8)
|
|
|
7.8
|
|
|
1.5
|
Adjusted EBITDA
(1)
|
|
$
|
123.2
|
|
$
|
109.1
|
|
$
|
437.1
|
|
$
|
435.3
|
|
|
(1)
|
Adjusted EBITDA
for the year ended December 31, 2019 includes a transaction
adjustment of $3.8 million for business interruption insurance
proceeds received related to Hurricane Michael.
|
The following table
provides a reconciliation of Net Cash Provided by Operating
Activities to Free Cash Flow for the quarter and year ended
December 31, 2020 and 2019:
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(in millions)
|
Net Cash Provided by
Operating Activities
|
|
$
|
77.3
|
|
$
|
87.1
|
|
$
|
277.4
|
|
$
|
266.3
|
Less: Transaction
Adjusted Capital Expenditures
|
|
|
(67.8)
|
|
|
(55.8)
|
|
|
(234.1)
|
|
|
(233.1)
|
Transaction Adjusted
Free Cash Flow
|
|
$
|
9.5
|
|
$
|
31.3
|
|
$
|
43.3
|
|
$
|
33.2
|
Unaudited Transaction Adjusted Condensed Consolidated
Financial and Subscriber Information
The SEC requires that pro forma financial information be presented
in a registrant's periodic filings when events occur for which
disclosure would be material to investors, including significant
business combinations or the disposition of a significant portion
of the business. The significance of an acquired or disposed
business is determined based on the "significant subsidiary" tests
specified in Regulation S-X, Article 11, Rule 1-02(w). Although the
Company has made certain acquisitions and divestitures, such
transactions do not meet the "significant subsidiary" tests and,
accordingly, the Company's historical financial information as
filed with the SEC does not contain pro forma financial information
relating to those transactions.
Nevertheless, we make certain adjustments in this release to the
historical financial and subscriber information of the Company as
filed with the SEC ("Transaction Adjusted") because we believe such
information would be meaningful to investors by showing how such
transactions might have affected the Company's historical financial
statements. The unaudited Transaction Adjusted financial and
subscriber information in this release has been prepared giving
effect to the divestiture of a portion of our Chicago Fiber Network
in December 2017, and the impact of
Hurricane Michael in October 2018, as
if such transactions had been completed at the beginning of the
respective periods presented. The unaudited Transaction Adjusted
financial and subscriber information is for informational purposes
only and does not purport to represent what our results of
operations, financial or subscriber information would have been if
such transactions had occurred at any date, nor does such
information purport to project the results of operations for any
future period.
The unaudited Transaction Adjusted condensed consolidated
financial and subscriber information in this release was prepared
based on our books and records for the respective periods presented
for the portion of the Chicago Fiber Network that was divested, and
the impact of Hurricane Michael in October
2018. Such historical unaudited financial and subscriber
information has been adjusted to give a Transaction Adjusted effect
to events that are directly attributable to such transactions,
factually supportable and expected to have a continuing impact on
the results. The unaudited Transaction Adjusted financial
information herein does not reflect non-recurring charges that have
been incurred in connection with the transaction including legal
fees, broker fees and accounting fees.
WIDEOPENWEST, INC.
AND SUBSIDIARIES
|
Capital
Expenditures and Subscriber Information
|
(unaudited)
|
|
The following table
provides a reconciliation of Capital Expenditures to Transaction
Adjusted Capital Expenditures for the quarter and year ended
December 31, 2020 and 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(in millions)
|
Capital
Expenditures
|
|
$
|
67.8
|
|
$
|
56.4
|
|
$
|
234.1
|
|
$
|
247.5
|
Transaction
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
related to the Chicago fiber network
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(11.4)
|
Hurricane Michael
impact
|
|
|
—
|
|
|
(0.7)
|
|
|
—
|
|
|
(3.0)
|
Transaction Adjusted
Capital Expenditures
|
|
$
|
67.8
|
|
$
|
55.8
|
|
$
|
234.1
|
|
$
|
233.1
|
The following table
provides an unaudited summary of our subscriber
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
|
2019
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
Homes
Passed
|
|
3,237,200
|
|
3,235,200
|
|
3,237,700
|
|
3,242,400
|
|
3,248,600
|
Total
Subscribers
|
|
823,400
|
|
838,000
|
|
844,500
|
|
846,300
|
|
850,600
|
HSD RGUs
|
|
781,500
|
|
797,600
|
|
805,600
|
|
808,900
|
|
813,800
|
Video RGUs
|
|
373,800
|
|
365,800
|
|
351,700
|
|
328,000
|
|
308,200
|
Telephony
RGUs
|
|
193,100
|
|
190,900
|
|
188,100
|
|
182,000
|
|
177,000
|
Total RGUs
|
|
1,348,400
|
|
1,354,300
|
|
1,345,400
|
|
1,318,900
|
|
1,299,000
|
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, 2020, which will be
posted on of our investor relations website at ir.wowway.com,
when it is filed with the Securities and Exchange Commission (the
"SEC"). A slide presentation to accompany the conference call
and a trending schedule containing historical customer and
financial data will also be available on our website.
Contact:
Andrew
Posen
Vice President, Head of Investor Relations
303-927-4935
andrew.posen@wowinc.com
Debra Havins
Senior Director, Corporate Communications
720-527-8214
debra.havins@wowinc.com
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SOURCE WideOpenWest, Inc.