Welcome!

News Feed Item

WOW! Reports Results for the Second Quarter Ended June 30, 2014

WOW! Internet, Cable & Phone (WOW!), a leading, fully-integrated provider of residential and commercial high-speed data, video and telephony services to customers in the Midwestern and Southeastern United States, today reported financial and operating results for the second quarter ended June 30, 2014.

Financial & Operating Highlights (1)

For the second quarter ended June 30, 2014, WOW! reported total Revenue of $319.8 million and Adjusted EBITDA of $111.5 million, representing a sequential increase of $7.7 million (or 2.5%) and $2.5 million (or 2.3%), respectively, over the first quarter ended March 31, 2014 and representing an increase of $18.4 million (or 6.1%) and $0.4 million, respectively, over the second quarter ended June 30, 2013. Additionally, WOW! reported an increase in total customers of 14,900 and an increase in total RGUs of 15,000 over March 31, 2014 subscriber counts.

On May 1, 2014, WOW! increased its existing 5% ownership interest in Anne Arundel Broadband, LLC (“AAB”) to a 75% ownership interest through a purchase of additional equity in AAB for approximately $5.5 million. Accordingly, the financial results and customer and subscriber counts of AAB have been included in the Company’s results as of May 1, 2014.

Conference Call

WOW! will host a conference call on Monday, August 11, 2014 at 10:00 a.m. Eastern to discuss the operating and financial results contained in this press release. Conference call information is as follows:

                   
Call Date: Monday, August 11, 2014 Call Time: 10:00 a.m. Eastern
Dial In: (877) 541-5069 Intn’l Dial In: (443) 842-7607
Conf. ID: 83940403
 

A recording of the conference call will be available approximately two hours after the completion of the call until September 11, 2014. Dial in # for this replay is (855) 859-2056. Additionally, a copy of the transcript will be available approximately forty-eight hours after the call, at www.wowway.com.

______________

(1) Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles. For a definition of Adjusted EBITDA, information about management’s reasons for providing data with respect to this measurement and the limitations associated with its use and a quantitative reconciliation of Adjusted EBITDA to net income (loss), see “Definitions of Non-GAAP Financial and Operating Metrics”, “Unaudited Reconciliations of Non-GAAP Measures to GAAP Measures” and the accompanying tables in this release.
 

The following provides a summary of our statements of operations as filed with the U.S. Securities and Exchange Commission (“SEC”) for the three months ended June 30, 2014 and 2013, respectively:

     
WideOpenWest Finance, LLC
Condensed Consolidated Statements of Operations (Unaudited)
($ in millions)
 
Three months ended

 

June 30,

2014     2013
Revenue:
Residential subscription $264.1 $256.3
Commercial subscription 24.2 22.7
Total subscription 288.3 279.0
Other commercial services 6.1 3.8
Other 25.4 18.6
319.8 301.4
Costs and expenses:
Operating (excluding depreciation & amortization) 182.4 165.5
Selling, general and administrative 38.9 36.9
Depreciation and amortization 64.1 63.2
Management fee to related party 0.5 0.4
285.9 266.0
Income from operations 33.9 35.4
Other income (expense):
Interest expense (59.4) (57.9)
Loss on extinguishment of debt - (57.3)

Realized and unrealized gain on derivative instruments, net

0.8 1.2

Other (expense) income, net

0.2 (0.3)
 
Loss before provision for income taxes (24.5) (78.9)
Income tax benefit 16.7 -
 
Net loss $ (7.8) $ (78.9)
 

The unaudited condensed consolidated statements of operations above and the information in this press release should be read in conjunction with our Form 10-Q for the quarter ended June 30, 2014 as filed with the SEC on August 8, 2014 and our Form 10-K Annual Report for the year ended December 31, 2013 as filed with the SEC on March 17, 2014. For ease of use, references in this press release to “WOW! Internet, Cable & Phone” or “WOW!” mean WideOpenWest Finance, LLC and its consolidated subsidiaries.

About WOW!

WOW! is one of the nation's leading providers of high-speed Internet, cable TV, and phone serving communities in the Southeast and Midwest U.S. Our operating philosophy is to deliver an employee and customer experience that lives up to its name. WOW! is privately owned and controlled by Avista Capital Partners. For more information, please visit www.wowway.com.

Forward-Looking Statements

This press release may 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 statements reflect management's current views with respect to future events and financial performance. The forward-looking statements included in this release are made as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements, even if new information becomes available in the future. Actual results may differ materially from those expected because of various risks and uncertainties. You should review our filings with the SEC, including the section titled "Risk Factors" contained in our Form 10-K Annual Report filed with the SEC on March 17, 2014 and our Form 10-Q for the quarter ended June 30, 2014 as filed with the SEC on August 8, 2014.

Definitions of Non-GAAP Financial Measures and Operating Metrics

We have included certain non-GAAP financial measures in this press release including Adjusted EBITDA. 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 is defined by WOW! as net income (loss) before net interest expense, income taxes, depreciation and amortization (including impairments), gains (losses) realized and unrealized on derivative instruments, management fees to related party, the write-up or write-off of any asset, debt modification expenses, loss on extinguishment of debt, integration and restructuring expenses and all non-cash charges and expenses (including equity based compensation expense) and certain other income and expenses, as further defined in our credit facilities. Adjusted EBITDA is not a presentation made in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and our use of the term Adjusted EBITDA varies from others in our industry. 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 or operating cash flows or as measures of liquidity.

Adjusted EBITDA has important limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. For example, Adjusted EBITDA:

  • excludes certain tax payments that may represent a reduction in cash available to us;
  • does not reflect any cash capital expenditure requirements for the assets being depreciated and amortized that may have to be replaced in the future;
  • does not reflect changes in, or cash requirements for, our working capital needs; and
  • does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt.

See “Unaudited Reconciliations of Non-GAAP Measures to GAAP Measures” below and the accompanying tables for reconciliations of Adjusted EBITDA to our net income (loss), which is the most directly comparable GAAP financial measure.

In addition, we use the following operating metrics in this release:

  • Homes Passed – We report homes passed as the number of residential units, such as single residence homes, apartments and condominium units, passed by our broadband network and listed in our database excluding those we believe are covered by exclusive arrangements with other providers of competing services.
  • Total Customers – Because we deliver multiple services to our customers, we report the total number of customers as those who receive at least one of our video (“Video”), high-speed data (“HSD”) or telephony (“Telephony”) services, without regard to which or how many of those services they subscribe. We report Video subscribers as the number of basic cable subscribers and do not include customers who only subscribe to HSD or Telephony services in this total. The combined total of Video, HSD and Telephony subscribers is referred to as Revenue Generating Units (“RGUs”).

Subscriber information for acquired entities is preliminary and subject to adjustment until we have completed our review of such information and determined that it is presented in accordance with our policies.

As of the end of each of the following respective quarters, the Company’s operating metrics were as follows:

                           
% Change % Change
1Q-14 2Q-14
3Q-13     4Q-13     1Q-14     vs. 4Q-13 2Q-14     vs. 1Q-14
Homes Passed 2,987,000 2,995,000 2,997,000 0.07% 3,114,000 3.90%
Total Customers 831,200 841,100 852,900 1.40% 867,800 1.75%
HSD Subscribers 725,400 740,000 756,700 2.26% 769,600 1.70%
Video Subscribers 690,700 694,400 694,300 -0.01% 699,000 0.68%
Telephony Subscribers 426,700     423,700     418,800     -1.16% 416,200     -0.62%
Total RGUs 1,842,800 1,858,100 1,869,800 0.63% 1,884,800 0.80%
 

Improved sequential net subscriber activity during the second quarter ended June 30, 2014 was driven by continued strong trends in customer acquisition activity despite a historically slower period of the year, offset by seasonal and rate increase related churn. Additionally, the customer counts were impacted by the inclusion of operating metrics attributable to AAB. Refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-Q as filed with the SEC on August 8, 2014, for further information.

Unaudited Reconciliations of Non-GAAP Measures to GAAP Measures

The following table provides an unaudited reconciliation of our net loss to Adjusted EBITDA for the three months ended June 30, 2014 and 2013, respectively:

     
WideOpenWest Finance, LLC
Reconciliation of Non-GAAP Measures to GAAP Measures (Unaudited)
($ in millions)
 
Three months ended
June 30,     June 30,
2014     2013
 
Net loss $ (7.8) $ (78.9)
Depreciation and amortization 64.1 63.2
Management fee to related party 0.5 0.4
Interest expense 59.4 57.9
Loss on extinguishment of debt - 57.3

Realized and unrealized gain on derivative instruments, net

(0.8) (1.2)

Non-recurring prof. fees, M&A integration and restructuring expense

13.0 12.1
Other expense (income), net (0.2) 0.3
Income tax benefit (16.7)     -
Adjusted EBITDA $ 111.5     $ 111.1
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The technologies behind big data and cloud computing are converging quickly, offering businesses new capabilities for fast, easy, wide-ranging access to data. However, to capitalize on the cost-efficiencies and time-to-value opportunities of analytics in the cloud, big data and cloud technologies must be integrated and managed properly. Pythian's Director of Big Data and Data Science, Danil Zburivsky will explore: The main technology components and best practices being deployed to take advantage...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
Today, we have more data to manage than ever. We also have better algorithms that help us access our data faster. Cloud is the driving force behind many of the data warehouse advancements we have enjoyed in recent years. But what are the best practices for storing data in the cloud for machine learning and data science applications?
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
They say multi-cloud is coming, but organizations are leveraging multiple clouds already. According to a study by 451 Research, only 21% of organizations were using a single cloud. If you've found yourself unprepared for the barrage of cloud services introduced in your organization, you will need to change your approach to engaging with the business and engaging with vendors. Look at technologies that are on the way and work with the internal players involved to have a plan in place when the ine...