WOW(US:WOW)2025-08-11 22:00Financial Data and Key Metrics Changes - In the second quarter, the company reported high-speed data (HSD) revenue of $104.8 million, a slight year-over-year decrease [8] - Total revenue for the second quarter decreased by 9.2% to $144.2 million, primarily due to declines in video and telephony revenue, which dropped by 39% and 10.3% respectively [13] - Adjusted EBITDA increased by 0.4% year-over-year to $70.3 million, with an adjusted EBITDA margin of 48.8% [13][14] - The company ended the quarter with total cash of $31.8 million and total outstanding debt of $1.05 billion, resulting in a leverage ratio of 3.5 times [15] Business Line Data and Key Metrics Changes - The traditional video business saw a significant decline, with subscribers dropping to 42,500, a 40.6% decrease from the previous year [11] - The company maintained a strong penetration rate of 16% in its greenfield markets, passing an additional 15,500 homes during the quarter [7][8] - The 2025 Edge Out vintage increased its penetration rate to 28%, while the 2024 vintage reached 45.8% [9] Market Data and Key Metrics Changes - The company reported a record high average revenue per user (ARPU) of $75.3, reflecting a 4.9% year-over-year increase [10] - 76% of new HSD connections were for speeds of 500 megabits or higher, a 4% increase year-over-year [10] Company Strategy and Development Direction - The company announced a definitive agreement for acquisition at $5.2 per share, representing a 37.2% premium to the unaffected price prior to the offer [5] - The focus remains on executing the business effectively while navigating the necessary approvals for the acquisition [19] - The company plans to continue its greenfield and edge-out expansion initiatives without changes to the current CapEx plan [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of greenfield expansion and the effectiveness of pricing strategies, which have led to improvements in subscriber trends [11][10] - The company will not provide guidance for the third quarter due to the ongoing acquisition process [16] Other Important Information - The company has amended its revolving credit facility, extending it for six months beyond the current term, with further extensions conditional on the acquisition closing [6] Q&A Session Summary Question: What is the plan for greenfield builds or edge outs going forward? - Management indicated that the focus is on running the business well while going through the necessary approvals for the acquisition, leaving future plans to the acquiring companies [19] Question: Are there any potential regulatory concerns that could delay the acquisition? - Management stated that there are no known concerns at this time, with an estimated closing timeframe of late this year or early next year [20] Question: Can you provide more details on the strategic review process? - Management referred to the thorough process conducted by a special committee of the board, which unanimously recommended the acquisition offer [22][23] Question: Will the CapEx plans for this year change? - Management confirmed that there will be no changes to this year's CapEx plans, continuing with the current strategy [24] Question: What percentage of homes passed are directly fiber to the home? - Management noted that all 91,100 homes passed in the second quarter are fiber to the home, with additional fiber within the legacy footprint [25]