Endured to Develop Penetration Charges in Enlargement Markets

ENGLEWOOD, Colo., Nov. 4, 2024 /PRNewswire/ — WideOpenWest, Inc. (“WOW!” or the “Company”) (NYSE: WOW), one of the crucial public’s prominent broadband suppliers, with an effective, high-performing community that passes just about 2.0 million residential, trade and wholesale shoppers, nowadays introduced monetary and running effects for the 3rd quarter ended September 30, 2024.

3rd Quarter 2024 Highlights ⁽¹⁾

• General Earnings of $158.0 million, a trim of $15.1 million, or 8.7%, in comparison to the 3rd quarter of 2023
• HSD Earnings totaled $107.5 million, a trim of $2.3 million, or 2.1%, in comparison to the 3rd quarter of 2023
• Web Loss used to be $22.4 million for the quarter ended September 30, 2024
• Adjusted EBITDA of $77.3 million, an build up of $6.4 million, or 9.0%, in comparison to the 3rd quarter of 2023
• Web lack of 4,400 HSD RGUs for the quarter ended September 30, 2024, together with 1,900 indistinguishable to the discontinuation of the Reasonably priced Connectivity Program
• Handed roughly 1,700 brandnew houses in Greenfield and Edge-out markets within the 3rd quarter of 2024
• On October 11, 2024, closed on $200.0 million brandnew super-priority expression mortgage

“During the third quarter we demonstrated the strength of our strategy in our expansion markets where we increased penetration rates to higher levels and grew ARPU,” mentioned Teresa Elder, WOW!’s CEO. “We continue to make progress in these new markets, especially as we added customers in Hernando County, Florida where we recently expanded our all-fiber network.”

“Securing the new $200 million term loan strengthened our balance sheet and improved liquidity which has enabled us to reaccelerate our fiber expansion strategy in Greenfield markets,” mentioned John Rego, WOW!’s CFO. “We also continued to aggressively manage our expenses to drive Adjusted EBITDA higher.”

Earnings
General Earnings used to be $158.0 million for the quarter ended September 30, 2024, ailing $15.1 million, or 8.7%, as in comparison to the corresponding length in 2023.

General Subscription Earnings for the quarter ended September 30, 2024 used to be $146.0 million, ailing $14.3 million, or 8.9%, as in comparison to the corresponding length in 2023. The trim is essentially pushed by means of a shift in provider providing combine as we proceed to enjoy a discount throughout all RGUs, coupled with a trim in quantity throughout all services and products.  The trim is in part offset by means of an build up in common income in line with unit (“ARPU”) pushed by means of price will increase issued within the first quarter and 3rd quarter of 2024, in part offset by means of $0.6 million of income credit issued to consumers in the ones markets impacted by means of Typhoon Helene.

Alternative Trade Services and products Earnings totaled $4.5 million for the quarter ended September 30, 2024, ailing $0.9 million, or 16.7%, as in comparison with the corresponding length in 2023 essentially because of decreases in wholesale and information middle income.

Alternative Earnings totaled $7.5 million for the quarter ended September 30, 2024, up $0.1 million, or 1.4%, as in comparison to the corresponding length in 2023 essentially because of will increase in promoting income, in part offset by means of a trim in paper commentary charges.

Prices and Bills
Working Bills (aside from Depreciation and Amortization) totaled $62.6 million for the quarter ended September 30, 2024, ailing $13.0 million, or 17%, in comparison to the corresponding length in 2023. The trim used to be essentially pushed by means of a discount in direct running expense, in particular programming expense, which aligns with the aid in Video RGUs between sessions, in addition to decreases in name middle prices, keep reimbursement and wicked debt bills, in part offset by means of will increase in reimbursement indistinguishable bills. Promoting, Common, and Administrative bills totaled $37.9 million for the quarter ended September 30, 2024, up $0.4 million, or 1%, in comparison to the corresponding length in 2023. The rise is essentially pushed by means of felony {and professional} charges, in part offset by means of discounts in advertising and marketing bills and keep reimbursement. 

Web Loss
Web Loss for the quarter ended September 30, 2024 used to be $22.4 million as in comparison to internet lack of $104.5 million for the quarter ended September 30, 2023. Web Benefit Margin used to be (14.2)% for the quarter ended September 30, 2024 as in comparison to (60.4)% for the quarter ended September 30, 2023.

Adjusted EBITDA
Adjusted EBITDA for the quarter ended September 30, 2024 used to be $77.3 million, an build up of $6.4 million in comparison to the corresponding length in 2023. Adjusted EBITDA margin used to be 48.9% for the quarter ended September 30, 2024, as in comparison to 41.0% for the quarter ended September 30, 2023.

Subscribers
WOW! reported General Subscribers of roughly 490,500 as of September 30, 2024, a trim of 26,900, or 5%, in comparison to September 30, 2023, ailing 4,700 in comparison to June 30, 2024.  HSD RGUs totaled 480,600 as of September 30, 2024, a trim of twenty-two,800, or 5%, in comparison to September 30, 2023, and ailing 4,400 in comparison to June 30, 2024.

Marketplace Enlargement
Marketplace Enlargement tasks handed an extra 1,700 houses for the quarter ended September 30, 2024, together with 100 extra houses in Greenfield markets and 1,600 extra houses in Edge-out tasks. As of September 30, 2024, Greenfield tasks handed a complete of 52,600 houses and 9,200 subscribers, representing a 17.5% penetration price.

At September 30, 2024, the 2024 Edge-out tasks handed 6,000 brandnew houses and a couple of,700 subscribers, representing a forty five.0% penetration price. The 2023 Edge-out tasks handed 18,500 brandnew houses and 5,500 subscribers, which represents 29.7% penetration. The 2022 Edge-out tasks handed 2,900 brandnew houses and 900 subscribers, which represents 31.0% penetration.

Capital Expenditures
Capital Expenditures totaled $40.5 million for the quarter ended September 30, 2024, representing a $24.0 million trim in comparison to the quarter ended September 30, 2023. The trim is essentially indistinguishable to decreases in scalable infrastructure, form extensions, and assistance capital and alternative because of decrease spending on marketplace enlargement tasks. Core Capital Expenditures, or general capital expenditures aside from enlargement capital expenditures, equated to 19% of General Earnings for the quarter ended September 30, 2024.

Liquidity and Leverage
On October 11, 2024, the Corporate closed on a brandnew super-priority credit score guarantee consisting of a brandnew Senior Time period Mortgage in an mixture primary quantity of $200.0 million, with a bunch of present lenders. The super-priority credit score guarantee will mature in December 2028, endure hobby at a price equivalent to SOFR plus 7.00% and feature precedence over the Corporate’s present credit score facility.

As of September 30, 2024, the overall exceptional quantity of long-term debt and finance rent tasks used to be $973.0 million, and coins and coins equivalents have been $21.6 million. General Web Leverage as of September 30, 2024, used to be 3.4x on a LTM Adjusted EBITDA foundation and undrawn revolver capability totaled $0.4 million.

Acquisition Proposal Replace
On Would possibly 2, 2024, the WOW! Board of Administrators gained an unsolicited non-binding initial acquisition proposal from DigitalBridge Investments, LLC and diverse Crestview entities. A different committee of sovereign administrators has been shaped to guage the Proposal. The Particular Committee has retained Centerview Companions and Wachtell, Lipton, Rosen & Katz as its monetary and felony advisors. The paintings of the Particular Committee is ongoing. WOW! does no longer adopt any legal responsibility to put together to any extent further people remark or disclosure on issues indistinguishable to the proposal or indistinguishable issues except and till WOW! determines that extra disclosure is acceptable or required by means of regulation.

Complete Time 2024 Steering

Webcast
WOW! will host a webcast and convention name on Monday, November 4, 2024 at 4:30 p.m. ET to speak about the monetary and running effects contained on this press let fall. The convention name and webcast will likely be broadcast survive the Corporate’s investor members of the family site at ir.wowway.com. The ones events interested by taking part can utility the guidelines as follows:

A replay of the decision will likely be to be had at the investor members of the family site.

About WOW! Web, TV & Telephone
WOW! is likely one of the public’s prominent broadband suppliers, with an effective and high-performing community that passes just about 2 million residential, trade and wholesale shoppers. WOW! supplies services and products in 19 markets, essentially within the Midwest and Southeast, together with Michigan, Alabama, Tennessee, South Carolina, Georgia and Florida, together with the brandnew all-fiber networks in Central Florida and Greenville County, South Carolina. With an expansive portfolio of complicated services and products, together with high-speed Web services and products, cable TV, house telephone, cell phone, trade knowledge, resonance, and cloud services and products, the corporate is devoted to offering exceptional provider at reasonably priced costs. WOW! additionally serves as a pace-setter in outstanding human assets practices, having been identified 11 instances by means of the Nationwide Affiliation for Trade Sources as a Absolute best & Brightest Corporate to Paintings For within the Community, profitable the award for the extreme seven consecutive years and making the 2022 Manage 101 Nationwide Winners listing. Consult with www.wowway.com for more info.

Cautionary Observation Referring to Ahead-Having a look Statements
Positive statements on this press let fall, together with statements indistinguishable to any month occasions or possible transactions, that don’t seem to be ancient info comprise “forward-looking statements” throughout the which means of Category 27A of the Securities Occupation of 1933, as amended, and Category 21E of the Securities Alternate Occupation of 1934, as amended.  Those forward-looking statements constitute our objectives, ideals, plans and expectancies about our possibilities for the month and alternative month occasions. Ahead-looking statements come with all statements that don’t seem to be ancient truth and may also be known by means of phrases reminiscent of “may,” “intend,” “might,” “will,” “should,” “could,” “would,” “anticipate,” “expect,” “believe,” “estimate,” “plan,” “project,” “predict,” “potential,” or the adverse of those phrases. Even supposing those forward-looking statements replicate our good-faith trust and cheap judgment in line with latest knowledge, those statements are certified by means of impressive components, lots of that are past our keep watch over that might motive our latest effects to range materially from the ones within the forward-looking statements. Those components and alternative dangers that might motive our latest effects to range materially come with all issues when it comes to the purchase proposal (together with any reaction by means of the Corporate to such proposal, to any extent further movements that can be taken by means of Crestview, DigitalBridge or any 3rd celebration, any transaction that can outcome from the proposal or another way, the likelihood that deny transaction might outcome from the proposal or any have an effect on on our trade or operations because of the proposal), the results of difficult climate occasions, together with fresh hurricanes within the southeastern U.S., and the alternative issues poised forth within the category entitled “Risk Factors” in our Annual Record filed on Method 10-Ok with the Securities and Alternate Fee (“SEC”) and alternative experiences due to this fact filed with the SEC. Given those uncertainties, you must no longer playground undue reliance on one of these forward-looking statements. The forward-looking statements incorporated on this document are made as of the past hereof or the past specified herein, in line with knowledge to be had to us as of such past. With the exception of as required by means of regulation, we suppose deny legal responsibility to replace those forward-looking statements, although brandnew knowledge turns into to be had going forward.

Non-GAAP Monetary Measures
The Corporate has incorporated sure non-GAAP monetary measures on this let fall, together with Adjusted EBITDA and Adjusted EBITDA margin. Those phrases, as outlined herein, don’t seem to be meant to be regarded as in isolation, as an alternative choice to, or superb to, the monetary knowledge ready and offered in response to usually authorized accounting ideas in the USA of The us (“GAAP”). Those phrases might range from the utility of indistinguishable phrases by means of alternative corporations in our business because of other forms of calculation and subsequently don’t seem to be essentially similar.

We consider that those non-GAAP measures support an investor’s figuring out of our monetary efficiency. We consider that those non-GAAP measures are helpful monetary metrics to evaluate our running efficiency from length to length by means of aside from sure pieces that we consider don’t seem to be consultant of our core trade. We consider that those non-GAAP measures grant buyers with helpful knowledge for assessing the comparison between sessions of our talent to generate coins from operations ample to pay taxes, to provider debt and to adopt Capital Expenditures. We utility those non-GAAP measures for trade making plans functions and in measuring our efficiency relative to that of our competition. We consider those non-GAAP measures are measures recurrently worn by means of buyers to guage our efficiency and that of our competition.

Adjusted EBITDA removes the have an effect on of bills that don’t relate to total trade efficiency and is outlined by means of WOW! as internet source of revenue (loss) sooner than hobby expense, source of revenue taxes, depreciation and amortization (together with impairments), impairment losses on intangibles and kindness, write-off of any asset, loss on early extinguishment of debt, integration and restructuring bills and all non‑coins fees and bills (together with keep reimbursement expense) and likely alternative source of revenue and bills. Adjusted EBITDA must no longer be regarded as as an supplementary to internet source of revenue (loss), running source of revenue or any alternative efficiency measures derived in response to GAAP as measures of running efficiency, running coins flows or liquidity.

The following “Reconciliations of GAAP Measures to Non-GAAP Measures” and the accompanying tables underneath for a reconciliation of Adjusted EBITDA to Web Source of revenue and Adjusted EBITDA margin to Web Benefit margin that are essentially the most at once similar corresponding GAAP monetary measures.

Subscriber Knowledge
The Corporate makes use of the phrases outlined underneath during this let fall.

Properties handed are reported because the choice of serviceable addresses, reminiscent of unmarried place of abode houses, residences and condo devices, and companies handed by means of our broadband community and indexed in our database.

We ship a couple of services and products to our consumers, as such we document General Subscribers because the choice of Subscribers who obtain a minimum of considered one of our HSD, Video or Telephony services and products, with out regard to which or what number of services and products they subscribe. We outline every of the person HSD Subscribers, Video Subscribers and Telephony Subscribers as a Earnings Producing Unit (“RGU”).

Occasion we rush suitable steps to safeguard subscriber knowledge is gifted on a constant and correct foundation at any given steadiness sheet past, we periodically overview our insurance policies in brightness of the range we might stumble upon throughout our other markets because of the character and pricing of services and products and billing techniques. Accordingly, we might from occasion to occasion put together suitable changes to our subscriber knowledge in line with such critiques.

Spare Knowledge To be had on Web site:
The tips on this press let fall must be learn at the side of the monetary statements and footnotes contained within the Corporate’s Quarterly Record on Method 10-Q for the quarter ended September 30, 2024, which will likely be posted on of our investor members of the family site at ir.wowway.com, when it’s filed with the Securities and Alternate Fee. A slide presentation to accompany the convention name and a trending time table containing ancient buyer and monetary knowledge can be to be had on our site.

SOURCE WideOpenWest, Inc.

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