WOW(US:WOW)2024-11-04 21:10Financial Performance - Total revenue for the three months ended September 30, 2024, was $158.0 million, a decrease of 8.9% compared to $173.1 million for the same period in 2023[6]. - Net loss for the three months ended September 30, 2024, was $22.4 million, compared to a net loss of $104.5 million for the same period in 2023[6]. - The company reported a basic loss per common share of $0.27 for the three months ended September 30, 2024, compared to a basic loss per share of $1.29 for the same period in 2023[6]. - The net loss for the nine months ended September 30, 2024, was $48.2 million, compared to a net loss of $244.2 million for the same period in 2023[12]. - Total revenue for the three months ended September 30, 2024, was $158.0 million, a decrease of 8.9% from $173.1 million for the same period in 2023[22]. - Subscription revenue decreased by $14.3 million, or 9%, during the three months ended September 30, 2024, compared to the same period in 2023[118]. Expenses and Liabilities - Operating expenses (excluding depreciation and amortization) decreased to $62.6 million for the three months ended September 30, 2024, from $75.6 million in the same period of 2023, reflecting a reduction of 17.8%[6]. - The company incurred impairment losses on intangibles amounting to $259.8 million in the previous year[12]. - Selling, general and administrative expenses increased by $0.4 million, or 1%, during the three months ended September 30, 2024, compared to the same period in 2023[123]. - Interest expense increased by $12.7 million, or 67%, for the three months ended September 30, 2024, and by $19.3 million, or 38%, for the nine months ended September 30, 2024, compared to the same periods in 2023, primarily due to higher debt balances and new interest rate derivatives[126]. - Total liabilities increased to $1,277.5 million as of September 30, 2024, compared to $1,256.5 million as of December 31, 2023[5]. Assets and Equity - Total assets as of September 30, 2024, were $1,494.1 million, a decrease from $1,514.7 million as of December 31, 2023[5]. - The company reported a total stockholders' equity of $216.6 million as of September 30, 2024[9]. - Stockholders' equity decreased from $258.2 million as of December 31, 2023, to $216.6 million as of September 30, 2024, a decline of approximately 16.1%[5]. - The company’s retained earnings showed a deficit of $27.9 million as of September 30, 2024, compared to accumulated earnings of $20.3 million as of December 31, 2023[5]. Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2024, was $132.8 million, an increase from $90.4 million in the prior year[12]. - Cash and cash equivalents decreased to $21.6 million as of September 30, 2024, from $23.4 million as of December 31, 2023[4]. - The company reported a decrease in cash and cash equivalents of $1.8 million for the nine months ended September 30, 2024[12]. - Net cash provided by financing activities was $29.3 million for the nine months ended September 30, 2024, compared to $89.3 million for the same period in 2023[143]. Market and Competition - The company anticipates continued challenges due to increased competition and rising programming costs, impacting future performance[3]. - The company serves customers in 16 markets across the United States, including major cities in Michigan, Georgia, South Carolina, Alabama, Tennessee, and Florida[14]. Stock and Compensation - The company repurchased approximately 4.9 million shares for $50.4 million under its Share Repurchase Program, completed in June 2023[58]. - The stock incentive plan has authorized 18,424,128 shares for issuance, with 2,692,141 shares outstanding as of September 30, 2024[52][55]. - The Company recorded $2.4 million in stock-based compensation expense for the three months ended September 30, 2024, down from $3.5 million in the same period of 2023[54]. Debt and Financing - As of September 30, 2024, the total long-term debt, finance lease obligations, and other financing amounted to $976.1 million, an increase from $938.3 million as of December 31, 2023[49]. - The outstanding balance of Term B Loans was $706.4 million as of September 30, 2024, with an effective interest rate of 7.60%[49]. - The Company has a total available borrowing capacity of $250.0 million, with $245.0 million drawn on the Revolving Credit Facility as of September 30, 2024[49]. Impairment and Write-downs - The company recorded a loss of $2.4 million related to the estimated write-down of damaged fixed assets due to Hurricane Helene[38]. - The company recognized a non-cash impairment charge of $131.7 million for the three months ended September 30, 2023, but did not recognize such charges for the same period in 2024[125]. Future Projections - The company expects to recognize total expected revenue of $101.3 million from subscription services and other business services in future periods[33]. - Revenue from month-to-month residential subscription service contracts is expected to continue representing a significant portion of the company's revenue in future periods[30].