Core Insights - WOW! Internet, TV & Phone has been recognized as a 2025 Best and Brightest Company to Work For in the Nation for the twelfth time, marking its eighth consecutive year of receiving this honor [1][5] - The company emphasizes a people-first approach, focusing on employee experience and wellbeing, which has led to both national and regional accolades [1][2] Group 1: Recognition and Awards - WOW! has received national recognition for its workplace practices, including regional honors in Metro Detroit (15 times), Chicago (17 times), Atlanta (9 times), and Denver (6 times) [1] - The company was also included in the 2024 Top 101 National Winners list, showcasing its consistent excellence in workplace culture [1][5] Group 2: Workplace Culture and Employee Engagement - WOW! fosters a vibrant and inclusive workplace through wellness initiatives, learning and development programs, and community engagement efforts [2] - The company’s culture is characterized by a commitment to listening, investing in employees, and creating opportunities for connection and growth [3] Group 3: Leadership Statements - Senior leadership at WOW! emphasizes the importance of employee value and support, highlighting the dedication of the team in creating a positive work environment [3][4] - The CEO of WOW! notes that the recognition reflects the company's commitment to innovation and growth alongside employee satisfaction [4] Group 4: Company Overview - WOW! is a leading broadband provider serving nearly 2 million consumers across 20 markets, primarily in the Midwest and Southeast [5] - The company offers a range of services, including high-speed internet, cable TV, and cloud services, while maintaining a focus on affordable pricing and exceptional service [5]

Core Insights - WOW! Internet, TV & Phone has partnered with the Columbus Clingstones to provide fiber internet at Synovus Park, enhancing fan engagement and connectivity during the inaugural season [1][2][3] Group 1: Partnership Details - WOW! is the exclusive fiber internet provider for the Columbus Clingstones at their newly renovated stadium, Synovus Park, which accommodates 5,500 fans [1][2] - The partnership includes various promotions, such as the Hot Dog Race and fan giveaways, to enhance the game-day experience [2][3] Group 2: Company Overview - WOW! serves nearly 2 million residential, business, and wholesale customers across 20 markets, primarily in the Midwest and Southeast [5] - The company offers a wide range of services, including high-speed internet, cable TV, home and mobile phone services, and business data solutions [5] - WOW! has been recognized as a top employer, winning the Best & Brightest Company to Work For award for seven consecutive years [5]

Group 1 - WideOpenWest reported a quarterly loss of $0.17 per share, which was better than the Zacks Consensus Estimate of a loss of $0.19, and compared to a loss of $0.18 per share a year ago, indicating an earnings surprise of 10.53% [1] - The company posted revenues of $150 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.01%, although this represents a decline from year-ago revenues of $161.5 million [2] - WideOpenWest shares have declined approximately 12.3% since the beginning of the year, while the S&P 500 has decreased by 3.9% [3] Group 2 - The earnings outlook for WideOpenWest is mixed, with the current consensus EPS estimate for the coming quarter at -$0.21 on revenues of $145.3 million, and -$0.87 on revenues of $577 million for the current fiscal year [7] - The Zacks Industry Rank indicates that the Cable Television sector is currently in the top 8% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8]

Financial Data and Key Metrics Changes - High-speed data (HSD) revenue decreased by 0.8% year over year to $105.4 million [8][12] - Total revenue for the quarter decreased by 7.1% to $150 million, driven by declines in video and telephony revenue [12] - Adjusted EBITDA increased by 13.8% year over year to $76.7 million, with a record adjusted EBITDA margin of 51.1% [8][12] - ARPU reached a record high, increasing by 3.7% year over year to $75 [10] Business Line Data and Key Metrics Changes - The company passed an additional 13,700 homes in greenfield markets, bringing the total to 75,600 homes passed [9] - Penetration rates in greenfield markets remained strong at 16.3% [9] - The traditional video business saw a 38% decrease in subscribers, now at 48,900 [10] Market Data and Key Metrics Changes - The 2025 Edge Out Vintage passed 1,500 new homes with a penetration rate close to 27% [9] - The 2024 Edge Out Vintage increased its penetration rate to 44.6%, while the 2023 vintage increased to 31.4% [9] Company Strategy and Development Direction - The company is focusing on fiber to the home expansion initiatives while maintaining cost discipline [11] - The strategy includes migrating customers off the video platform and aligning with YouTube TV, which has seen significant growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted strong momentum in greenfield markets and emphasized the importance of simplified pricing in reducing churn [6][27] - The company anticipates continued growth in the second half of the year, despite some expected churn from video rate increases [29] Other Important Information - Total cash at the end of the quarter was $28.8 million, with total outstanding debt of $1.03 billion and a leverage ratio of 3.4 times [12][14] - Capital expenditures for the quarter were $38.9 million, with expectations to spend between $60 million and $70 million on greenfields in 2025 [14][16] Q&A Session Summary Question: Can you discuss the pace of capital spending and its impact on new Greenfield homes passed? - Management indicated that while $10.8 million was spent in the first quarter, they expect to spend the full $60 million to $70 million for the year, with spending back-end loaded due to weather delays [25][26] Question: What does the competitive landscape look like and how are you thinking about net adds? - Management noted that competition remains similar, with low churn aided by simplified pricing, and they expect to maintain net adds similar to the first quarter [27][28] Question: Can you provide insights on mobile products and their impact on churn or HSD subscribers? - Management stated that mobile offerings are not a significant driver for acquisition or churn reduction, focusing instead on core broadband and YouTube TV services [30]

First Quarter 2025 May 6, 2025 Important Information Caution Concerning Forward Looking Statements Certain statements in this presentation 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- lookin ...

Financial Data and Key Metrics Changes - High-speed data (HSD) revenue decreased by 0.8% year over year to $105.4 million [6][11] - Total revenue for the quarter decreased by 7.1% to $150 million, primarily due to declines in video and telephony revenue [11] - Adjusted EBITDA increased by 13.8% year over year to $76.7 million, with a record adjusted EBITDA margin of 51.1% [6][11] - Total cash at the end of the quarter was $28.8 million, with total outstanding debt of $1.03 billion and a leverage ratio of 3.4 times [12] Business Line Data and Key Metrics Changes - The company passed an additional 13,700 homes in greenfield markets, bringing the total to 75,600 homes passed [5][7] - Penetration rates in greenfield markets remained strong at 16.3% [7] - The traditional video business saw a 38% decrease in subscribers, now at 48,900 [9] Market Data and Key Metrics Changes - The 2025 Edge Out Vintage passed 1,500 new homes with a penetration rate close to 27% [8] - The 2024 Edge Out Vintage increased its penetration rate to 44.6%, while the 2023 vintage increased to 31.4% [8] Company Strategy and Development Direction - The company is focusing on fiber to the home expansion initiatives while maintaining cost discipline [10] - The strategy includes migrating customers off the video platform and aligning with YouTube TV, which has seen significant growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted strong momentum in greenfield markets and emphasized the importance of cost management [5][10] - The company anticipates continued challenges in the traditional video business but expects growth in greenfield areas [10][27] Other Important Information - The company plans to spend between $60 million to $70 million on greenfield initiatives in 2025, despite a slower start due to weather issues [13][22] - Unlevered adjusted free cash flow for the first quarter was $37.8 million, an increase from the previous quarter [14] Q&A Session Summary Question: Capital spending pace and new Greenfield homes passed - The company plans to spend $60 million to $70 million for the year, with more spending expected in the latter half [22] Question: Competitive landscape and net adds - Competition remains similar, with low churn aided by simplified pricing, and penetration rates in greenfield markets outperforming expectations [24][26] Question: Mobile products and their impact - Mobile offerings are not significant drivers for acquisition or churn reduction, with a focus on core broadband and YouTube TV services [28]

Part I. Financial Information This section presents the company's unaudited financial statements, management's discussion and analysis, market risk disclosures, and internal controls [Item 1: Financial Statements (Unaudited)](index=6&type=section&id=Item%201%3A%20Financial%20Statements%20%28Unaudited%29) The company reported a net loss of $13.9 million on $150.0 million revenue for Q1 2025, with operating cash flow significantly down [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a slight decrease in total assets to $1,502.3 million and an increase in total liabilities to $1,306.3 million as of March 31, 2025 Balance Sheet Summary (as of March 31, 2025) | Balance Sheet Item | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | **Assets** | | | | Cash | $28.8 | $38.8 | | Total current assets | $111.3 | $111.8 | | Property, plant and equipment, net | $822.0 | $831.2 | | Total assets | $1,502.3 | $1,512.5 | | **Liabilities & Equity** | | | | Total current liabilities | $167.7 | $183.2 | | Long-term debt and finance lease obligations, net | $1,013.8 | $997.4 | | Total liabilities | $1,306.3 | $1,303.7 | | Total stockholders' equity | $196.0 | $208.8 | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statement of operations indicates a 7.1% revenue decrease and a 7.3% reduction in net loss for the three months ended March 31, 2025 Statement of Operations Summary (Three months ended March 31) | Metric | 2025 (in millions) | 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | $150.0 | $161.5 | -7.1% | | Income from operations | $8.7 | $5.2 | +67.3% | | Interest expense | $(27.5) | $(21.0) | +31.0% | | Net loss | $(13.9) | $(15.0) | -7.3% | | Basic and diluted loss per share | $(0.17) | $(0.18) | N/A | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly decreased to $16.7 million, while investing activities saw reduced cash usage for the three months ended March 31, 2025 Cash Flow Summary (Three months ended March 31) | Cash Flow Activity | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $16.7 | $33.2 | | Net cash used in investing activities | $(37.7) | $(72.5) | | Net cash provided by financing activities | $11.0 | $35.1 | | **Decrease in cash and cash equivalents** | **$(10.0)** | **$(4.2)** | - Capital expenditures decreased significantly to **$38.9 million** from **$72.5 million** in the prior-year period[20](index=20&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail a 7% revenue decline, $1.03 billion total debt, and a settled patent infringement claim Revenue by Service Offering (Three months ended March 31) | Service | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Residential HSD | $85.5 | $86.9 | | Residential Video | $20.6 | $29.3 | | Residential Telephony | $4.3 | $4.8 | | **Total Residential Subscription** | **$110.4** | **$121.0** | | Business Subscription | $28.1 | $28.0 | | **Total Revenue** | **$150.0** | **$161.5** | - As of March 31, 2025, total long-term debt and finance lease obligations amounted to **$1,049.7 million** before debt issuance costs, with **$130.7 million** of available borrowing capacity under its Revolving Credit Facility[40](index=40&type=chunk) - The company settled a patent infringement claim with Sprint and owes a final payment of **$5.0 million** as of March 31, 2025, to be paid by January 2026, also receiving **$0.5 million** in indemnification refunds related to this matter during the quarter[73](index=73&type=chunk)[74](index=74&type=chunk) - The company's operations are managed and reported as one reportable segment[78](index=78&type=chunk) [Management's Discussion and Analysis (MD&A)](index=29&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 7% revenue decline to subscriber reductions, especially in Video, with operating expenses decreasing [Overview and Strategy](index=29&type=section&id=Overview%20and%20Strategy) The company, a leading broadband provider, focuses on a 'broadband first' strategy and continues its all-IP fiber network expansion - The company is a leading broadband provider in 18 markets across six states, passing nearly **2.0 million** homes and serving **473,800** customers as of March 31, 2025[81](index=81&type=chunk) - The core strategy is 'broadband first,' focusing on High-Speed Data (HSD) as the primary driver of profitability, with **94%** of new connections being HSD-only in Q1 2025[83](index=83&type=chunk)[84](index=84&type=chunk) - WOW is continuing its market expansion strategy, building out its all-IP fiber network in new and adjacent markets[85](index=85&type=chunk) [Key Operating Metrics](index=30&type=section&id=Key%20Operating%20Metrics) Key operating metrics show a 5.4% decrease in total subscribers and a significant 38.3% decline in Video RGUs year-over-year Subscriber and RGU Trends | Metric | Mar 31, 2024 | Dec 31, 2024 | Mar 31, 2025 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Homes Passed | 1,948,500 | 1,962,100 | 1,977,600 | +1.5% | | Total Subscribers | 500,700 | 478,700 | 473,800 | -5.4% | | HSD RGUs | 489,700 | 470,400 | 465,900 | -4.9% | | Video RGUs | 79,300 | 60,600 | 48,900 | -38.3% | | Telephony RGUs | 77,700 | 71,600 | 69,200 | -11.0% | [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Results of operations indicate a 7% revenue decrease driven by subscriber loss, offset by a 13% reduction in operating expenses - Total revenue decreased by **$11.5 million** (**7%**) year-over-year, primarily driven by a **$10.5 million** decrease in residential subscription revenue due to a reduction in RGUs, especially Video[98](index=98&type=chunk)[99](index=99&type=chunk) - Operating expenses decreased by **$8.5 million** (**13%**) year-over-year, mainly due to an **$8.1 million** reduction in programming costs aligned with the decline in Video subscribers[102](index=102&type=chunk) - SG&A expenses decreased by **$4.9 million** (**13%**) year-over-year due to lower compensation, marketing expenses, and receipt of business continuity insurance recoveries[104](index=104&type=chunk) - Interest expense increased by **$6.5 million** (**31%**) year-over-year, driven by a higher debt balance and a higher effective interest rate from the new Priority Credit Agreement entered into in Q4 2024[106](index=106&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity with $28.8 million in cash and $130.7 million available borrowing capacity, despite decreased operating cash flow - As of March 31, 2025, the company had **$28.8 million** in cash and **$130.7 million** of available borrowing capacity, which management believes is sufficient to fund obligations for the next 12 months[112](index=112&type=chunk)[113](index=113&type=chunk) - Net cash from operating activities decreased to **$16.7 million** from **$33.2 million** year-over-year, primarily due to timing differences in receivables and payables[118](index=118&type=chunk) - Capital expenditures decreased to **$38.9 million** from **$72.5 million** year-over-year, mainly due to the timing of spending on market expansion initiatives, with Greenfield expansion spending down to **$10.8 million** from **$43.1 million**[120](index=120&type=chunk)[122](index=122&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=40&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Interest rate fluctuations on variable-rate debt are the primary market risk, with a 1% SOFR increase impacting annual interest expense by **$5.3 million** - The primary market risk is fluctuating interest rates on variable-rate debt under the Priority Credit Agreement[124](index=124&type=chunk) - The company uses interest rate swaps to manage risk, but about **50%** of its Senior Secured Credit Facility remains variable-rate debt[124](index=124&type=chunk) - A hypothetical **1%** (**100 basis point**) change in SOFR would result in an annual interest expense change of approximately **$5.3 million**[124](index=124&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Disclosure controls were ineffective due to a material weakness in impairment testing documentation; remediation is planned for Q4 2025 - Management concluded that disclosure controls and procedures were not effective as of March 31, 2025[126](index=126&type=chunk) - The ineffectiveness is due to a material weakness identified at year-end 2024, where there was insufficient documentation and evidence of review for inputs used in the annual impairment testing[131](index=131&type=chunk)[132](index=132&type=chunk) - A remediation plan is being designed, but the material weakness is not expected to be considered remediated until after testing is completed in Q4 2025[134](index=134&type=chunk)[135](index=135&type=chunk) Part II. Other Information This section covers legal proceedings, updated risk factors, and details on issuer purchases of equity securities [Legal Proceedings](index=43&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is involved in various legal proceedings; details on the Sprint patent infringement settlement are in Note 13 - For details on legal proceedings, the report refers to Note 13 – Commitments and Contingencies in the financial statements[139](index=139&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A%3A%20Risk%20Factors) No material changes to risk factors, except for expanded discussion on U.S.-China trade relations and potential tariff impacts - A key risk highlighted is the potential for increased tariffs on goods from China, which could raise the prices of network infrastructure and customer premise equipment[141](index=141&type=chunk) - The company notes that historically it has not been able to pass such increased costs to customers without losing them, and price lock promotions may prevent price increases[141](index=141&type=chunk) [Issuer Purchases of Equity Securities](index=43&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company acquired **252,322** shares, primarily withheld from employees for tax obligations on restricted stock awards Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 2,100 | $4.36 | | Feb 2025 | 1,906 | $4.93 | | Mar 2025 | 248,316 | $4.88 | | **Total** | **252,322** | **N/A** | - The shares purchased represent shares withheld from employees for the payment of taxes upon the vesting of restricted stock awards[142](index=142&type=chunk)

Financial Performance - Total Revenue for Q1 2025 was $150.0 million, a decrease of $11.5 million, or 7.1%, compared to Q1 2024[4] - Adjusted EBITDA increased by $9.3 million, or 13.8%, to $76.7 million, with an Adjusted EBITDA margin of 51.1%[12] - Net Loss for Q1 2025 was $13.9 million, an improvement from a net loss of $15.0 million in Q1 2024[11] - Total revenue for the three months ended March 31, 2025, was $150.0 million, a decrease of 7.5% from $161.5 million in the same period of 2024[24] - Total subscription services revenue decreased to $138.5 million, down 7.5% from $149.0 million year-over-year[24] - Adjusted EBITDA for the three months ended March 31, 2025, was $76.7 million, representing an increase of 13.0% from $67.4 million in the prior year[36] - The net loss for the quarter was $13.9 million, slightly improved from a net loss of $15.0 million in the prior year[24] - The company reported a basic and diluted loss per common share of $0.17, an improvement from a loss of $0.18 per share in the prior year[24] - Interest expense increased to $27.5 million from $21.0 million year-over-year, reflecting a rise of 30.9%[36] Subscriber Metrics - Total Subscribers decreased by 26,900, or 5%, to approximately 473,800 as of March 31, 2025[13] - Total subscribers decreased to 473,800 as of March 31, 2025, down from 500,700 in the same period of 2024, reflecting a decline of 5.4%[38] Operational Efficiency - Operating Expenses (excluding Depreciation and Amortization) totaled $59.0 million, down $8.5 million, or 12.6%, compared to Q1 2024[10] - Capital Expenditures for Q1 2025 were $38.9 million, a decrease of $33.6 million compared to Q1 2024[16] - Capital expenditures for the quarter were $38.9 million, significantly lower than $72.5 million in the same period of 2024, a decrease of 46.3%[38] Market Expansion - The company passed approximately 13,700 new homes in Greenfield markets, bringing the total to 75,600 homes with a penetration rate of 16.3%[8] - Homes passed increased to 1,977,600, up from 1,948,500 year-over-year, indicating a growth of 1.5%[38] Future Guidance - The company provided Q2 2025 guidance for Total Revenue between $141.0 million and $144.0 million[19] Strategic Initiatives - The company has implemented new strategies to improve customer retention, with a goal of reducing churn rate by G%[40] - The financial guidance for the upcoming quarter includes an EBITDA margin target of H%, reflecting improved cost management[40] - The company is committed to sustainability initiatives, with plans to invest $I million in eco-friendly practices over the next year[40]

Core Insights - WOW! Internet, TV & Phone has recognized CEO Teresa Elder as an honoree in the annual "Cablefax 100" list for the seventh consecutive year, highlighting her influential leadership in the broadband industry [1][2]. Company Performance - Under Elder's leadership, WOW! has expanded its all-fiber footprint and introduced innovative broadband solutions, achieving operational excellence and strategic growth [2]. - The company secured a $200 million Senior Term Loan to support ongoing fiber buildouts, indicating strong financial backing for expansion efforts [2]. - WOW! has successfully passed an additional 100,000 homes through its Greenfield and Edge-out market expansion, moving towards a goal of passing 400,000 homes in new communities in the coming years [3]. Industry Position - WOW! serves nearly 2 million residential, business, and wholesale consumers across 19 markets, primarily in the Midwest and Southeast [5]. - The company is recognized for its commitment to providing high-quality services at affordable prices, alongside exceptional human resources practices, having won awards for being a Best & Brightest Company to Work For [5].

Company Overview - WOW! Internet, TV & Phone is a leading broadband services provider in the United States, serving nearly 2 million residential, business, and wholesale consumers across 19 markets, primarily in the Midwest and Southeast [6] - The company offers a wide range of services, including high-speed Internet, cable TV, home and mobile phone services, business data, voice, and cloud services, with a commitment to providing outstanding service at affordable prices [6] - WOW! has been recognized 11 times as a Best & Brightest Company to Work For in the Nation, winning the award for the last seven consecutive years [6] Leadership Appointments - Christine Simmons and Darius Clay have been appointed to the C2HR Advisory Board, which consists of distinguished telecommunications executives focused on shaping the future of the industry [1][4] - Simmons, as senior director of talent management, has extensive expertise in learning and development, emphasizing technology to create scalable training solutions and enhance employee engagement [2][3] - Clay, as senior director of total rewards, brings a strategic perspective and has led initiatives to improve employee experience and operational efficiency, focusing on work-life balance and data-driven strategies [3][4] Advisory Board Role - The C2HR Advisory Board, established in 2023, plays a crucial role in providing insights, fostering innovation, and supporting human resources professionals in the content and connectivity space [4] - The board aims to deliver relevant insights, industry-specific analytics, and meaningful networking opportunities to advance excellence across the telecommunications industry [4]