Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 28, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38101 | |
Entity Registrant Name | WideOpenWest, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-0552948 | |
Entity Address, Address Line One | 7887 East Belleview Avenue | |
Entity Address, Address Line Two | Suite 1000 | |
Entity Address, City or Town | Englewood | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80111 | |
City Area Code | 720 | |
Local Phone Number | 479-3500 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | WOW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 87,660,160 | |
Entity Central Index Key | 0001701051 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 45.3 | $ 193.2 |
Accounts receivable-trade, net of allowance for doubtful accounts of $3.4 and $4.3, respectively | 39.3 | 40.9 |
Accounts receivable-other, net | 7.9 | 17.2 |
Prepaid expenses and other | 38.6 | 30.7 |
Total current assets | 131.1 | 282 |
Right-of-use lease assets-operating | 16.1 | 17.2 |
Property, plant and equipment, net | 709.8 | 722.3 |
Franchise operating rights | 620.1 | 620.1 |
Goodwill | 225.1 | 225.1 |
Intangible assets subject to amortization, net | 1.4 | 1.7 |
Other non-current assets | 43.4 | 38.3 |
Total assets | 1,747 | 1,906.7 |
Current liabilities | ||
Accounts payable-trade | 42.6 | 50.3 |
Accrued interest | 1 | 0.8 |
Current portion of long-term lease liability-operating | 5 | 5.1 |
Accrued liabilities and other | 59.4 | 218.7 |
Current portion of long-term debt and finance lease obligations | 18.1 | 17.9 |
Current portion of unearned service revenue | 27.3 | 28.1 |
Total current liabilities | 153.4 | 320.9 |
Long-term debt and finance lease obligations, net of debt issuance costs -less current portion | 718 | 723.5 |
Long-term lease liability-operating | 12.7 | 13.8 |
Deferred income taxes, net | 248.5 | 257.6 |
Other non-current liabilities | 21.4 | 20.1 |
Total liabilities | 1,154 | 1,335.9 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 100,000,000 shares authorized; 0 shares issued and outstanding | ||
Common stock, $0.01 par value, 700,000,000 shares authorized; 96,893,966 and 96,225,910 issued as of September 30, 2022 and December 31, 2021, respectively; 87,670,327 and 87,392,088 outstanding as of September 30, 2022 and December 31, 2021, respectively | 1 | 1 |
Additional paid-in capital | 367.5 | 348.5 |
Accumulated income | 320.7 | 310.5 |
Treasury stock at cost, 9,223,639 and 8,833,822 shares as of September 30, 2022 and December 31, 2021, respectively | (96.2) | (89.2) |
Total stockholders' equity | 593 | 570.8 |
Total liabilities and stockholders' equity | $ 1,747 | $ 1,906.7 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable-trade, allowance for doubtful accounts | $ 3.4 | $ 4.3 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding ( in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 700,000,000 | 700,000,000 |
Common stock, shares issued (in shares) | 96,893,966 | 96,225,910 |
Common stock, shares outstanding ( in shares) | 87,670,327 | 87,392,088 |
Common shares held in treasury, (in shares) | 9,223,639 | 8,833,822 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Revenue | $ 173.7 | $ 184 | $ 524.4 | $ 547.4 |
Costs and expenses: | ||||
Operating (excluding depreciation and amortization) | 79.1 | 93.4 | 249.4 | 286.9 |
Selling, general and administrative | 39.7 | 44.8 | 117.3 | 132.8 |
Depreciation and amortization | 45 | 42.3 | 132.9 | 126 |
Total costs and expenses | 163.8 | 180.5 | 499.6 | 545.7 |
Income from operations | 9.9 | 3.5 | 24.8 | 1.7 |
Other income (expense): | ||||
Interest expense | (10.5) | (22.4) | (25.8) | (82.6) |
Other income, net | 1.5 | 1.9 | 15.7 | 2.4 |
Income (loss) from continuing operations before provision for income tax | 0.9 | (17) | 14.7 | (78.5) |
Income tax (expense) benefit | (0.4) | (4.2) | (4.5) | 12.1 |
Income (loss) from continuing operations | 0.5 | (21.2) | 10.2 | (66.4) |
Discontinued Operations (Note 3) | ||||
Income from discontinued operations, net of tax | 539.1 | 606.3 | ||
Net income | $ 0.5 | $ 517.9 | $ 10.2 | $ 539.9 |
Basic and diluted earnings (loss) per common share - continuing operations | ||||
Basic (in dollars per share) | $ 0.01 | $ (0.26) | $ 0.12 | $ (0.80) |
Diluted (in dollars per share) | 0.01 | (0.26) | 0.12 | (0.80) |
Basic and diluted earnings per common share - discontinued operations | ||||
Basic (in dollars per share) | 6.50 | 7.34 | ||
Diluted (in dollars per share) | 6.50 | 7.34 | ||
Basic and diluted earnings per common share | ||||
Basic (in dollars per share) | 0.01 | 6.24 | 0.12 | 6.54 |
Diluted (in dollars per share) | $ 0.01 | $ 6.24 | $ 0.12 | $ 6.54 |
Weighted-average common shares outstanding | ||||
Basic (in shares) | 84,274,050 | 82,973,519 | 83,908,691 | 82,615,949 |
Diluted (in shares) | 86,735,246 | 82,973,519 | 86,671,875 | 82,615,949 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 0.5 | $ 517.9 | $ 10.2 | $ 539.9 |
Unrealized gain on derivative instrument, net of tax | 6.5 | |||
Comprehensive income | $ 0.5 | $ 517.9 | $ 10.2 | $ 546.4 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Millions | Common Stock | Treasury Stock at Cost, Common | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Income (Deficit) | Total |
Balances at beginning of period at Dec. 31, 2020 | $ 1 | $ (80.7) | $ 333.8 | $ (6.5) | $ (460) | $ (212.4) |
Balances at beginning of period (in shares) at Dec. 31, 2020 | 86,847,797 | |||||
Increase (Decrease) in Stockholders' Deficit | ||||||
Changes in accumulated other comprehensive gain (loss) | 4.3 | 4.3 | ||||
Stock-based compensation | 3.1 | 3.1 | ||||
Issuance of restricted stock, net (in shares) | 666,127 | |||||
Purchase of shares | (6.6) | (6.6) | ||||
Purchase of shares (in shares) | (397,186) | |||||
Net income (loss) | 9.6 | 9.6 | ||||
Balances at end of period at Mar. 31, 2021 | $ 1 | (87.3) | 336.9 | (2.2) | (450.4) | (202) |
Balances at end of period (in shares) at Mar. 31, 2021 | 87,116,738 | |||||
Balances at beginning of period at Dec. 31, 2020 | $ 1 | (80.7) | 333.8 | (6.5) | (460) | (212.4) |
Balances at beginning of period (in shares) at Dec. 31, 2020 | 86,847,797 | |||||
Increase (Decrease) in Stockholders' Deficit | ||||||
Net income (loss) | 539.9 | |||||
Balances at end of period at Sep. 30, 2021 | $ 1 | (88.7) | 345 | 79.9 | 337.2 | |
Balances at end of period (in shares) at Sep. 30, 2021 | 87,191,153 | |||||
Balances at beginning of period at Mar. 31, 2021 | $ 1 | (87.3) | 336.9 | (2.2) | (450.4) | (202) |
Balances at beginning of period (in shares) at Mar. 31, 2021 | 87,116,738 | |||||
Increase (Decrease) in Stockholders' Deficit | ||||||
Changes in accumulated other comprehensive gain (loss) | $ 2.2 | 2.2 | ||||
Stock-based compensation | 4 | 4 | ||||
Issuance of restricted stock, net (in shares) | 34,929 | |||||
Purchase of shares | (0.8) | (0.8) | ||||
Purchase of shares (in shares) | (40,473) | |||||
Net income (loss) | 12.4 | 12.4 | ||||
Balances at end of period at Jun. 30, 2021 | $ 1 | (88.1) | 340.9 | (438) | (184.2) | |
Balances at end of period (in shares) at Jun. 30, 2021 | 87,111,194 | |||||
Increase (Decrease) in Stockholders' Deficit | ||||||
Stock-based compensation | 4.1 | 4.1 | ||||
Issuance of restricted stock, net (in shares) | 106,642 | |||||
Purchase of shares | (0.6) | (0.6) | ||||
Purchase of shares (in shares) | (26,683) | |||||
Net income (loss) | 517.9 | 517.9 | ||||
Balances at end of period at Sep. 30, 2021 | $ 1 | (88.7) | 345 | 79.9 | 337.2 | |
Balances at end of period (in shares) at Sep. 30, 2021 | 87,191,153 | |||||
Balances at beginning of period at Dec. 31, 2021 | $ 1 | (89.2) | 348.5 | 310.5 | $ 570.8 | |
Balances at beginning of period (in shares) at Dec. 31, 2021 | 87,392,088 | 87,392,088 | ||||
Increase (Decrease) in Stockholders' Deficit | ||||||
Stock-based compensation | 5.6 | $ 5.6 | ||||
Issuance of restricted stock, net (in shares) | 704,864 | |||||
Purchase of shares | (5.3) | (5.3) | ||||
Purchase of shares (in shares) | (298,386) | |||||
Net income (loss) | 5.7 | 5.7 | ||||
Balances at end of period at Mar. 31, 2022 | $ 1 | (94.5) | 354.1 | 316.2 | 576.8 | |
Balances at end of period (in shares) at Mar. 31, 2022 | 87,798,566 | |||||
Balances at beginning of period at Dec. 31, 2021 | $ 1 | (89.2) | 348.5 | 310.5 | $ 570.8 | |
Balances at beginning of period (in shares) at Dec. 31, 2021 | 87,392,088 | 87,392,088 | ||||
Increase (Decrease) in Stockholders' Deficit | ||||||
Net income (loss) | $ 10.2 | |||||
Balances at end of period at Sep. 30, 2022 | $ 1 | (96.2) | 367.5 | 320.7 | $ 593 | |
Balances at end of period (in shares) at Sep. 30, 2022 | 87,670,327 | 87,670,327 | ||||
Balances at beginning of period at Mar. 31, 2022 | $ 1 | (94.5) | 354.1 | 316.2 | $ 576.8 | |
Balances at beginning of period (in shares) at Mar. 31, 2022 | 87,798,566 | |||||
Increase (Decrease) in Stockholders' Deficit | ||||||
Stock-based compensation | 6.3 | 6.3 | ||||
Issuance of restricted stock, net (in shares) | (31,332) | |||||
Purchase of shares | (0.7) | (0.7) | ||||
Purchase of shares (in shares) | (35,149) | |||||
Net income (loss) | 4 | 4 | ||||
Balances at end of period at Jun. 30, 2022 | $ 1 | (95.2) | 360.4 | 320.2 | 586.4 | |
Balances at end of period (in shares) at Jun. 30, 2022 | 87,732,085 | |||||
Increase (Decrease) in Stockholders' Deficit | ||||||
Stock-based compensation | 7.1 | 7.1 | ||||
Issuance of restricted stock, net (in shares) | (5,476) | |||||
Purchase of shares | (1) | (1) | ||||
Purchase of shares (in shares) | (56,282) | |||||
Net income (loss) | 0.5 | 0.5 | ||||
Balances at end of period at Sep. 30, 2022 | $ 1 | $ (96.2) | $ 367.5 | $ 320.7 | $ 593 | |
Balances at end of period (in shares) at Sep. 30, 2022 | 87,670,327 | 87,670,327 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Parenthetical) - shares | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Restricted stock awards | |||||||
Number of shares granted to employees and directors | 3,322,057 | 3,523,316 | 3,721,638 | 4,325,124 | 4,181,731 | 4,159,455 | 4,423,885 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 10.2 | $ 539.9 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 133.9 | 167 |
Deferred income taxes | (9) | 103.3 |
Provision for doubtful accounts | 2.7 | 8.3 |
Gain on sale of Ohio markets | (689.6) | |
Gain on sale of operating assets, net | (1) | (0.5) |
Amortization of debt issuance costs and discount | 1.3 | 3.6 |
Non-cash compensation | 18.5 | 11.6 |
Other non-cash items | 0.1 | (0.2) |
Changes in operating assets and liabilities: | ||
Receivables and other operating assets | (5.9) | (19) |
Payables and accruals | (163.6) | 115.1 |
Net cash (used in) provided by operating activities | (12.8) | 239.5 |
Cash flows from investing activities: | ||
Capital expenditures | (114.5) | (167.4) |
Proceeds from sale of Ohio markets, net | 1,112.5 | |
Other investing activities | 1.3 | 1.3 |
Net cash (used in) provided by investing activities | (113.2) | 946.4 |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt, net | 37 | |
Payments on long-term debt and finance lease obligations | (14.9) | (1,167.8) |
Purchase of shares | (7) | (7.9) |
Net cash used in financing activities | (21.9) | (1,138.7) |
(Decrease) increase in cash and cash equivalents | (147.9) | 47.2 |
Cash and cash equivalents, beginning of period | 193.2 | 12.4 |
Cash and cash equivalents, end of period | 45.3 | 59.6 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the periods for interest | 24.3 | 81.9 |
Cash paid during the periods for income taxes | 142.7 | 2.2 |
Non-cash operating activities: | ||
Operating lease additions | 2.7 | 1 |
Non-cash financing activities: | ||
Finance lease additions | 8.3 | 5.1 |
Capital expenditure accounts payable and accruals | $ 25.9 | $ 24.7 |
General Information
General Information | 9 Months Ended |
Sep. 30, 2022 | |
Organization and Basis of Presentation | |
Organization and Basis of Presentation | Note 1. General Information WideOpenWest, Inc. (“WOW” or the “Company”) is a leading broadband services provider offering high-speed data (“HSD”), cable television (“Video”), and digital telephony (“Telephony”) services to residential and business customers. The Company serves customers in 14 markets in the United States which consist of Detroit and Lansing, Michigan; Augusta, Columbus, Newnan and West Point, Georgia; Charleston, South Carolina; Dothan, Auburn, Huntsville and Montgomery, Alabama; Knoxville, Tennessee; and Panama City and Pinellas County, Florida. The Company’s operations are managed and reported to its Chief Executive Officer (“CEO”), the Company’s chief operating decision maker, on a consolidated basis. The CEO assesses performance and allocates resources based on the consolidated results of operations. Under this organizational and reporting structure, the Company operates as one reportable segment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”); however, in the opinion of management, the disclosures made are adequate to ensure the information presented is not misleading. The year-end consolidated balance sheet was derived from audited financial statements. In the opinion of management, all normally recurring adjustments considered necessary for the fair presentation of the financial statements have been included, and the financial statements present fairly the financial position and results of operations for the interim periods presented. The results of operations for any interim period are not necessarily indicative of results expected for the full year or any future period. These unaudited condensed consolidated financial statements should be read in conjunction with the 2021 Annual Report filed with the SEC on February 24, 2022. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make assumptions and estimates that affect the reported amounts and disclosures of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts and disclosures of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances. To the extent there are differences between those estimates and actual results, the unaudited condensed consolidated financial statements may be materially affected. Recently Issued Accounting Standards ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-10, Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance (“ASU 2021-10”). The FASB issued ASU 2021-10 which requires business entities to disclose information about transactions with a government that are accounted for by applying a grant or contribution model by analogy to increase the transparency of government assistance including the disclosure of the types of assistance, an entity’s accounting for the assistance, and the effect of the assistance on an entity’s financial statements. The amendments in this update are available for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. The Company will adopt these amendments prospectively as of January 1, 2022 and will include the appropriate disclosures in the Annual Report on Form 10-K for the year ended December 31, 2022. The adoption will not have a material impact on the Company's financial position, results of operations or cash flows. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations | |
Discontinued Operations | Note 3. Discontinued Operations Sale of Service Areas On June 30, 2021, WOW entered into two separate asset sales with two different buyers. On September 1, 2021, WOW completed the sale of its Cleveland and Columbus, Ohio markets and on November 1, 2021, WOW completed the sale of its Chicago, Illinois, Evansville, Indiana and Baltimore, Maryland markets. The Company will present these markets as discontinued operations in the consolidated statements of operations and exclude from continuing operations for all periods in which such discontinued operations are presented. Results of discontinued operations include all revenues and direct expenses of these markets. General corporate overhead is not allocated to discontinued operations. The following table presents information regarding certain components of income from discontinued operations: Three months ended Nine months ended September 30, September 30, 2021 2021 (in millions) Revenue $ 83.7 $ 293.9 Costs and expenses: Operating (excluding depreciation and amortization) 28.9 106.1 Selling, general and administrative 5.2 10.7 Depreciation and amortization — 41.0 34.1 157.8 Income from operations 49.6 136.1 Other income: Interest income — 0.4 Gain on sale of assets, net 689.9 690.1 Other income, net — 0.1 Income from discontinued operations before provision for income tax 739.5 826.7 Income tax expense (200.4) (220.4) Income from discontinued operations $ 539.1 $ 606.3 The following table presents revenue by service offering from discontinued operations: Three months ended Nine months ended September 30, September 30, 2021 2021 (in millions) Residential subscription HSD $ 41.4 $ 143.5 Video 27.1 98.6 Telephony 3.0 10.9 Total Residential subscription $ 71.5 $ 253.0 Business subscription HSD $ 5.0 $ 16.7 Video 0.7 2.5 Telephony 2.3 7.9 Total business subscription $ 8.0 $ 27.1 Total subscription services revenue 79.5 280.1 Other business services revenue 0.6 1.6 Other revenue 3.6 12.2 Total revenue $ 83.7 $ 293.9 The following table presents specified items of cash flow and significant non-cash items of discontinued operations: Nine months ended September 30, 2021 (in millions) Specified items of cash flow: Capital expenditures $ 41.2 Non-cash operating activities: Operating lease additions $ — Non-cash investing activities: Capital expenditure accounts payable and accruals $ 2.3 In connection with the asset sales, the Company entered into two separate transition services agreements under which WOW will continue to provide certain services to each of the buyers. Under the transition services agreements, the buyers may elect a variety of services, including but not limited to: information technology, network, business support services, etc. The term of the transition services agreements are for 12 months following each closing date, respectively, with two optional three month extensions. As of September 30, 2022, the transition services agreements with both buyers were still in effect for certain limited services. None of the costs related to the employees, processes or systems utilized to provide the services under the transition services agreements were allocated to discontinued operations. Income earned under these agreements is presented in other income, net in the condensed consolidated statement of operations and associated receivables are presented in accounts receivable – other, net in the condensed consolidated balance sheet. The Company recognized $1.3 million and $14.8 million of income related to the transition service agreements for the three and nine months ended September 30, 2022, respectively. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | Note 4. Revenue from Contracts with Customers R evenue by Service Offering The following table presents revenue by service offering: Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (in millions) Residential subscription HSD $ 84.2 $ 85.6 $ 251.1 $ 246.6 Video 42.4 50.0 132.8 156.1 Telephony 6.1 7.0 18.5 21.9 Total residential subscription $ 132.7 $ 142.6 $ 402.4 $ 424.6 Business subscription HSD $ 18.1 $ 17.7 $ 53.9 $ 52.0 Video 2.9 2.8 8.8 8.4 Telephony 6.7 7.2 20.5 21.9 Total business subscription $ 27.7 $ 27.7 $ 83.2 $ 82.3 Total subscription services revenue 160.4 170.3 485.6 506.9 Other business services revenue(1) 5.4 5.6 16.1 16.9 Other revenue 7.9 8.1 22.7 23.6 Total revenue $ 173.7 $ 184.0 $ 524.4 $ 547.4 (1) I ncludes wholesale and colocation lease revenue of $4.8 million and $4.8 million for the three months ended September 30, 2022 and 2021, respectively, and $ 14.4 million and $14.6 million for the nine months ended September 30, 2022 and 2021, respectively. Costs of Obtaining Contracts with Customers The following table summarizes the activity of costs of obtaining contracts with customers: Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (in millions) Balance at beginning of period $ 38.2 $ 35.4 $ 37.3 $ 31.8 Deferral 4.6 4.3 12.4 12.2 Amortization (3.7) (2.7) (10.6) (7.0) Balance at end of period $ 39.1 $ 37.0 $ 39.1 $ 37.0 The following table presents the current and non-current portion of costs of obtaining contracts with customers as of the end of the corresponding periods: September 30, 2022 December 31, 2021 (in millions) Current costs of obtaining contracts with customers $ 15.4 $ 14.1 Non-current costs of obtaining contracts with customers 23.7 23.2 Total costs of obtaining contracts with customers $ 39.1 $ 37.3 The current portion and the non-current portion of costs of obtaining contracts with customers are included in prepaid expenses and other and other non-current assets, respectively, in the Company’s unaudited condensed consolidated balance sheets. Amortization of costs of obtaining contracts with customers is included in selling, general and administrative expense in the Company’s unaudited condensed consolidated statements of operations. Contract Liabilities The following table summarizes the activity of current and non-current contract liabilities: Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (in millions) Balance at beginning of period $ 2.9 $ 3.3 $ 3.3 $ 2.9 Deferral 2.9 3.3 9.1 9.1 Revenue recognized (3.0) (3.2) (9.6) (8.6) Balance at end of period $ 2.8 $ 3.4 $ 2.8 $ 3.4 The following table presents the current and non-current portion of contract liabilities as of the end of the corresponding periods: September 30, 2022 December 31, 2021 (in millions) Current contract liabilities $ 2.5 $ 2.9 Non-current contract liabilities 0.3 0.4 Total contract liabilities $ 2.8 $ 3.3 The current and the non-current portion of contract liabilities are included in the current portion of unearned service revenue and other non-current liabilities, respectively, in the Company’s unaudited condensed consolidated balance sheets. Unsatisfied Performance Obligations Revenue from month-to-month residential subscription service contracts have historically represented a significant portion of the Company’s revenue and the Company expects that this will continue to be the case in future periods. All residential subscription service performance obligations will be satisfied within one year. A summary of expected business subscription and other business services revenue to be recognized in future periods related to performance obligations which have not been satisfied or are partially unsatisfied as of September 30, 2022 is set forth in the table below: 2022 2023 2024 Thereafter Total (in millions) Subscription services $ 13.7 $ 37.8 $ 21.8 $ 9.3 $ 82.6 Other business services 0.8 2.2 0.9 0.2 4.1 Total expected revenue $ 14.5 $ 40.0 $ 22.7 $ 9.5 $ 86.7 Provision for Doubtful Accounts The provision for doubtful accounts and the allowance for doubtful accounts are based on the aging of the individual receivables, historical trends and current and anticipated future economic conditions. The Company manages credit risk by disconnecting services to customers who are delinquent, generally after 100 days of delinquency. The individual receivables are written-off after all reasonable efforts to collect the funds have been made. Actual write-offs may differ from the amounts reserved. The following table presents the change in the allowance for doubtful accounts for trade accounts receivable: Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (in millions) Balance at beginning of period $ 2.4 $ 5.0 $ 4.3 $ 6.7 Provision charged to expense (1) 2.0 2.1 2.7 5.7 Accounts written off, net of recoveries (1.0) (1.6) (3.6) (6.9) Balance at end of period $ 3.4 $ 5.5 $ 3.4 $ 5.5 (1) The Company released nil and $1.6 million of reserves established in 2020 related to COVID-19 during the three and nine months ended September 30, 2022, respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment, Net | |
Property, Plant and Equipment, Net | Note 5. Property, Plant and Equipment, Net Property, plant and equipment consists of the following: September 30, December 31, 2022 2021 (in millions) Distribution facilities $ 1,307.3 $ 1,238.3 Customer premise equipment 272.6 267.7 Head-end equipment 246.3 228.5 Computer equipment and software 149.8 132.5 Telephony infrastructure 52.4 52.4 Buildings and leasehold improvements 32.6 32.1 Vehicles 22.9 23.7 Office and technical equipment 19.0 18.9 Land 4.4 4.4 Construction in progress (including material inventory and other) 38.2 34.9 Total property, plant and equipment 2,145.5 2,033.4 Less accumulated depreciation (1,435.7) (1,311.1) $ 709.8 $ 722.3 Depreciation expense for the three months ended September 30, 2022 and 2021 was $44.9 million and $42.2 million, respectively. Depreciation expense for the nine months ended September 30, 2022 and 2021 was $133.7 million and $125.7 million, respectively. Included in depreciation and amortization expense in the condensed consolidated statement of operations for the three and nine months ended September 30, 2022 were net gains on sales of operating assets of nil and $1.0 million, respectively. |
Accrued Liabilities and Other
Accrued Liabilities and Other | 9 Months Ended |
Sep. 30, 2022 | |
Accrued Liabilities and Other | |
Accrued Liabilities and Other | Note 6. Accrued Liabilities and Other Accrued liabilities and other consists of the following: September 30, December 31, 2022 2021 (in millions) Programming costs $ 18.2 $ 19.3 Payroll and employee benefits 17.1 29.6 Other accrued liabilities 7.1 9.5 Property, income, sales and use taxes(1) 5.9 132.7 Franchise and revenue sharing fees 5.3 7.9 Customer cash collections (Transition Services Agreements) 3.4 17.5 Utility pole costs 2.4 2.2 $ 59.4 $ 218.7 (1) As of December 31, 2021 includes the current income tax payable associated with the sale of the Chicago, Illinois, Evansville, Indiana, and Baltimore, Maryland markets. |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Leases | 9 Months Ended |
Sep. 30, 2022 | |
Long-Term Debt and Finance Leases | |
Long Term Debt and Finance Leases | Note 7. Long-Term Debt and Finance Leases The following table summarizes the Company’s long-term debt and finance leases: December 31, September 30, 2022 2021 Available borrowing Effective Outstanding Outstanding capacity interest rate(1) balance balance (in millions) Long-term debt: Term B Loans, net(2) $ — 6.49 % $ 719.3 $ 724.2 Revolving Credit Facility(3) 245.6 3.00 % — — Total long-term debt $ 245.6 719.3 724.2 Other Financing 0.1 0.4 Finance lease obligations 21.5 22.3 Total long-term debt, finance lease obligations and other 740.9 746.9 Debt issuance costs, net(4) (4.8) (5.5) Sub-total 736.1 741.4 Less current portion (18.1) (17.9) Long-term portion $ 718.0 $ 723.5 (1) Represents the effective interest rate in effect for all borrowings outstanding as of September 30, 2022 pursuant to each debt instrument including the applicable margin. (2) At September 30, 2022 and December 31, 2021 includes $5.2 million and $5.8 million of net discounts, respectively. (3) Available borrowing capacity at September 30, 2022 represents $250.0 million of total availability less outstanding letters of credit of $4.4 million. Letters of credit are used in the ordinary course of business and are released when the respective contractual obligations have been fulfilled by the Company. (4) At September 30, 2022 and December 31, 2021 debt issuance costs include $3.7 million and $4.1 million related to Term B Loans and $1.1 million and $1.4 million related to the Revolving Credit Facility, respectively. Refinancing of the Term B Loans and Revolving Credit Facility On December 20, 2021, the Company entered into a new secured credit agreement with Morgan Stanley Senior Funding, Inc., as administrative agent, collateral agent and issuing bank (the “Credit Agreement”). The Credit Agreement consists of (i) a new Term Loan B in an aggregate principal amount of $730.0 million and (ii) a $250.0 million revolving credit commitment. The Term Loan B matures in December 2028 and bears interest at a rate equal to the Secured Overnight Financing Rate (“SOFR”) plus 3.00%, subject to a 50 basis point floor, and the revolving credit commitment bears interest at a rate equal to SOFR plus 2.75%, subject to a 50 basis point commitment fee rate for unused commitments, and matures in December 2026. The Senior Secured Term B loans and Revolving Credit Facility are secured on a first-priority basis by a lien on substantially all of the Company’s assets, subject to certain exceptions and permitted liens. As of September 30, 2022, the Company was in compliance with all debt covenants. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 8. Stock-Based Compensation WOW’s 2017 Omnibus Incentive Plan provides for grants of stock options, restricted stock and performance awards. The Company’s directors, officers and other employees and persons who engage in services for the Company are eligible for grants under the 2017 Omnibus Incentive Plan. The 2017 Omnibus Incentive Plan has authorized 12,074,128 shares of common stock to be available for issuance, subject to adjustment in the event of a reorganization, stock split, merger or similar change in the Company’s corporate structure of the outstanding shares of common stock. The following table presents restricted stock activity during the nine months ended September 30, 2022: Number of Unvested Restricted Stock Shares Outstanding, beginning of period 4,325,124 Granted 836,388 Vested (1,671,123) Forfeited (168,332) Outstanding, end of period(1) 3,322,057 (1) The total outstanding unvested shares of restricted stock awards granted to employees and directors are included in total outstanding shares as of September 30, 2022. Restricted stock awards generally vest ratably over a four year period based on the date of grant. For restricted stock awards that contain only service conditions for vesting, the Company calculates the award fair value based on the closing stock price on the accounting grant date. Certain awards were modified during the year ended December 31, 2021 and are classified as liabilities. Nonvested Performance Shares On March 3, 2022, the Company granted 199,592 performance shares which will vest based on the Company’s achievement level relative to the following performance measures at December 31, 2024: 50% based upon the Company’s Total Shareholder Return (“TSR”) relative to the TSRs of the Company’s peer group and 50% based on the Company’s three-year cumulative EBITDA metric. EBITDA is defined as net income (loss) before net interest expense, income taxes, depreciation and amortization (including impairments), impairment losses on intangibles and goodwill, the write-off of any asset, loss on early extinguishment of debt, integration and restructuring expenses and all non-cash charges and expenses (including stock compensation expense) and certain other income and expenses. Upon achievement of the minimum threshold performance metric, the grantee may earn 50% to 200% of their respective target shares based on the performance goal. The performance shares based on relative TSR performance have a market condition and are valued using a Monte Carlo simulation model on the grant date, which resulted in a grant date fair value of $24.71 per share. The estimated fair value is amortized to expense over the requisite service period, which ends on December 31, 2024. The following assumptions were used in the Monte Carlo simulation for computing the grant date fair value of the performance shares with a market condition: risk-free interest rate of 1.66%, volatility factors in the expected market price of the Company's common shares of 58.47% and an expected life of three years. The performance shares based on three-year cumulative EBITDA have a performance condition. The probability of achieving the performance condition is assessed at each reporting period. If it is deemed probable that the performance condition will be met, compensation cost will be recognized based on the closing price per share of the Company's common stock on the date of the grant multiplied by the number of awards expected to be earned. If it is deemed that it is not probable that the performance condition will be met, the Company will discontinue the recognition of compensation cost and any compensation cost previously recorded will be reversed. During the fourth quarter of 2021, the Company determined that it was not probable that the performance condition based on three-year cumulative EBITDA would be met for the performance shares issued in 2021 and 2020. The Company came to this conclusion based on the projected loss of EBITDA due to the sale of five service areas in 2021. See Note 3 – Discontinued Operations for additional information regarding the sales. As a result of this conclusion, the Company reversed approximately $1.0 million of previously recognized stock compensation expense in the fourth quarter of 2021. During February of 2022, the Compensation Committee approved proportional adjustments to the three-year cumulative EBITDA metrics associated with the 2021 and 2020 performance shares to adjust for the sale of the five service areas. Stock compensation expense will be recognized from the date of adjustment through the remaining service period of the awards if achievement is deemed probable. As of September 30, 2022, achievement of the performance conditions associated with the 2022, 2021 and 2020 performance shares was deemed probable. The Company recorded $6.4 million and $4.5 million for the three months ended September 30, 2022 and 2021, respectively, and recorded $18.5 million and $11.6 million for the nine months ended September 30, 2022 and 2021, respectively, of non-cash stock-based compensation expense which is reflected in selling, general and administrative expense and operating expenses (excluding depreciation and amortization), depending on the recipients’ duties in the Company’s unaudited condensed consolidated statements of operations. |
Earnings (Loss) per Common Shar
Earnings (Loss) per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings (Loss) per Common Share | |
Earnings (Loss) per Common Share | Note 9. Earnings (Loss) per Common Share Basic earnings or loss per share attributable to the Company’s common stockholders is computed by dividing net earnings or loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings or loss per share attributable to common stockholders presents the dilutive effect, if any, on a per share basis of potential common shares (such as restricted stock units) as if they had been vested or converted during the periods presented. No such items were included in the computation of diluted loss or earnings per share for the three and nine months ended September 30, 2021 because the Company incurred a net loss from continuing operations and the effect of inclusion would have been anti-dilutive. Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (in millions, except share data) Income (loss) from continuing operations $ 0.5 $ (21.2) $ 10.2 $ (66.4) Income from discontinued operations $ — $ 539.1 $ — $ 606.3 Net income $ 0.5 $ 517.9 $ 10.2 $ 539.9 Basic weighted-average shares 84,274,050 82,973,519 83,908,691 82,615,949 Effect of dilutive securities: Restricted stock awards 2,461,196 — 2,763,184 — Diluted weighted-average shares 86,735,246 82,973,519 86,671,875 82,615,949 Basic and diluted earnings (loss) per Basic $ 0.01 $ (0.26) $ 0.12 $ (0.80) Diluted $ 0.01 $ (0.26) $ 0.12 $ (0.80) Basic and diluted earnings per Basic $ — $ 6.50 $ — $ 7.34 Diluted $ — $ 6.50 $ — $ 7.34 Basic and diluted earnings per common share Basic $ 0.01 $ 6.24 $ 0.12 $ 6.54 Diluted $ 0.01 $ 6.24 $ 0.12 $ 6.54 The dilutive effect of the potential common shares from the performance shares is included in diluted earnings per share upon the satisfaction of certain performance and market conditions. These conditions are evaluated at each reporting period and if the conditions have been satisfied during the reporting period, the number of contingently issuable shares are included in the computation of diluted earnings per share. As of September 30, 2022, the Company determined the performance conditions associated with the performance shares issued in 2021 and 2022 were not yet achieved; however, the performance condition associated with the performance shares issued in 2020, and the market conditions indicated a certain level of achievement within the payout range. Therefore, the contingently issuable performance shares associated with the 2020 performance condition and market conditions were included in the computation of diluted earnings per share. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | Note 10. Fair Value Measurements The fair values of cash and cash equivalents, receivables and trade payables approximate their carrying values due to the short-term nature of these instruments. For assets and liabilities of a long-term nature, the Company determines fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. The Company applies the following hierarchy in determining fair value: ● Level 1, defined as observable inputs being quoted prices in active markets for identical assets; ● Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and ● Level 3, defined as values determined using models that utilize significant unobservable inputs for which little or no market data exists, discounted cash flow methodologies or similar techniques, or other determinations requiring significant management judgment or estimation. The Company’s derivative instrument expired in May 2021; however, prior to expiration the derivative instrument was accounted for at fair value on a recurring basis and classified within Level 2 of the valuation hierarchy. The fair value of the derivative instrument was measured as the present value of all expected future cash flows based on the LIBOR-based swap yield curves as of the measurement date. The present value calculation utilized discount rates that were adjusted to reflect the credit quality of the Company and its counterparties. The estimated fair value of the Company’s long-term debt is based on dealer quotes considering current market rates for the Company’s credit facility and is classified as Level 2. The ratio of the Company’s aggregate debt balance has trended from quoted market prices in active markets to quoted prices in non-active markets. The fair value of the Company’s long-term debt was valued at $702.8 million and $729.1 million as of September 30, 2022 and December 31, 2021, respectively. Long-term debt fair value does not include debt issuance costs and discounts. There were no transfers into or out of Level 1, 2 or 3 during the periods ended September 30, 2022 and December 31, 2021. The Company’s nonfinancial assets such as franchise operating rights, property, plant, and equipment, and other intangible assets are not measured at fair value on a recurring basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence that an impairment may exist. When such impairments are recorded, fair values are generally classified within Level 3 of the valuation hierarchy. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | Note 11. Derivative Instruments and Hedging Activities The Company is exposed to certain risks during the normal course of its business arising from adverse changes in interest rates. The Company selectively uses derivative financial instruments (“derivatives”), including interest rate swaps, to manage interest rate risk. The Company does not hold or issue derivative instruments for speculative purposes. Fluctuations in interest rates can be volatile, and the Company’s risk management activities do not totally eliminate these risks. Consequently, these fluctuations could have a significant effect on the Company’s financial results. The Company’s exposure to interest rate risk results primarily from its variable rate borrowings. On May 9, 2018, the Company entered into variable to fixed interest rate swap agreements for a notional amount of $1,361.2 million to hedge the outstanding principal balance of its then-existing variable rate term loan debt. The interest rate swap contracts expired in May of 2021. Gains on derivatives designated as cash flow hedges included in the unaudited condensed consolidated statements of comprehensive income for nine months ended September 30, 2021 are shown in the table below: Nine months ended September 30, 2021 (in millions) Interest rate swap contracts(1) Gain recorded in AOCI on derivatives, before tax $ 8.5 Tax impact (2.0) Gain recorded in AOCI on derivatives, net $ 6.5 (1) Gains (losses) on derivatives reclassified from AOCI into income are included in “ Interest expense ” in the unaudited condensed consolidated statements of operations, the same line item as the earnings effect of the hedged item. Losses recognized for the nine months ended September 30, 2021 total $9.5 million. For the periods presented, all cash flows associated with derivatives are classified as operating cash flows in the unaudited condensed consolidated statements of cash flows. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Taxes | |
Income Taxes | Note 12. Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the difference is expected to reverse. Additionally, the impact on deferred tax assets and liabilities of changes in tax rates is reflected in the financial statements in the period that includes the date of enactment. The Company reported income tax expense of $0.4 million and $204.6 million for the three months ended September 30, 2022 and 2021, respectively and $4.5 million and $208.3 million for the nine months ended September 30, 2022 and 2021, respectively. The change in income tax expense is primarily related to the inclusion of the gain on sale of the Cleveland and Columbus, Ohio service areas in taxable income for the three and nine months ended September 30, 2021, coupled with a decrease in income for the three and nine months ended September 30, 2022 relating to our smaller footprint following the sales of five service areas in 2021. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 13. Commitments and Contingencies Sprint Patent Infringement Claim The Company is party to various legal proceedings (including individual, class and putative class actions) arising in the normal course of its business covering a wide range of matters and types of claims including, but not limited to, general contracts, billing disputes, rights of access, programming, taxes, fees and surcharges, consumer protection, trademark and patent infringement, employment, regulatory, tort, claims of competitors and disputes with other carriers. In accordance with GAAP, the Company accrues an expense for pending litigation when it determines that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. Legal defense costs are expensed as incurred. None of the Company’s existing accruals for pending matters are material. The Company consistently monitors its pending litigation for the purpose of adjusting its accruals and revising its disclosures accordingly, in accordance with GAAP, when required. However, litigation is subject to uncertainty, and the outcome of any particular matter is not predictable. The Company will vigorously defend its interests in pending litigation, and the Company believes that the ultimate resolution of all such matters, after considering insurance coverage or other indemnities to which it is entitled, will not have a material adverse effect on its consolidated financial position, results of operations, or cash flows. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation and Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”); however, in the opinion of management, the disclosures made are adequate to ensure the information presented is not misleading. The year-end consolidated balance sheet was derived from audited financial statements. In the opinion of management, all normally recurring adjustments considered necessary for the fair presentation of the financial statements have been included, and the financial statements present fairly the financial position and results of operations for the interim periods presented. The results of operations for any interim period are not necessarily indicative of results expected for the full year or any future period. These unaudited condensed consolidated financial statements should be read in conjunction with the 2021 Annual Report filed with the SEC on February 24, 2022. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make assumptions and estimates that affect the reported amounts and disclosures of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts and disclosures of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances. To the extent there are differences between those estimates and actual results, the unaudited condensed consolidated financial statements may be materially affected. |
Recently Issued Accounting Standards and Recently Adopted Accounting Pronouncements | Recently Issued Accounting Standards ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-10, Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance (“ASU 2021-10”). The FASB issued ASU 2021-10 which requires business entities to disclose information about transactions with a government that are accounted for by applying a grant or contribution model by analogy to increase the transparency of government assistance including the disclosure of the types of assistance, an entity’s accounting for the assistance, and the effect of the assistance on an entity’s financial statements. The amendments in this update are available for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. The Company will adopt these amendments prospectively as of January 1, 2022 and will include the appropriate disclosures in the Annual Report on Form 10-K for the year ended December 31, 2022. The adoption will not have a material impact on the Company's financial position, results of operations or cash flows. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations | |
Schedule of discontinued operations - assets and liabilities, components of income, revenue by service offering and non-cash items and capital expenditure | The following table presents information regarding certain components of income from discontinued operations: Three months ended Nine months ended September 30, September 30, 2021 2021 (in millions) Revenue $ 83.7 $ 293.9 Costs and expenses: Operating (excluding depreciation and amortization) 28.9 106.1 Selling, general and administrative 5.2 10.7 Depreciation and amortization — 41.0 34.1 157.8 Income from operations 49.6 136.1 Other income: Interest income — 0.4 Gain on sale of assets, net 689.9 690.1 Other income, net — 0.1 Income from discontinued operations before provision for income tax 739.5 826.7 Income tax expense (200.4) (220.4) Income from discontinued operations $ 539.1 $ 606.3 The following table presents revenue by service offering from discontinued operations: Three months ended Nine months ended September 30, September 30, 2021 2021 (in millions) Residential subscription HSD $ 41.4 $ 143.5 Video 27.1 98.6 Telephony 3.0 10.9 Total Residential subscription $ 71.5 $ 253.0 Business subscription HSD $ 5.0 $ 16.7 Video 0.7 2.5 Telephony 2.3 7.9 Total business subscription $ 8.0 $ 27.1 Total subscription services revenue 79.5 280.1 Other business services revenue 0.6 1.6 Other revenue 3.6 12.2 Total revenue $ 83.7 $ 293.9 The following table presents specified items of cash flow and significant non-cash items of discontinued operations: Nine months ended September 30, 2021 (in millions) Specified items of cash flow: Capital expenditures $ 41.2 Non-cash operating activities: Operating lease additions $ — Non-cash investing activities: Capital expenditure accounts payable and accruals $ 2.3 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contracts with Customers | |
Schedule of revenue by service offering | Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (in millions) Residential subscription HSD $ 84.2 $ 85.6 $ 251.1 $ 246.6 Video 42.4 50.0 132.8 156.1 Telephony 6.1 7.0 18.5 21.9 Total residential subscription $ 132.7 $ 142.6 $ 402.4 $ 424.6 Business subscription HSD $ 18.1 $ 17.7 $ 53.9 $ 52.0 Video 2.9 2.8 8.8 8.4 Telephony 6.7 7.2 20.5 21.9 Total business subscription $ 27.7 $ 27.7 $ 83.2 $ 82.3 Total subscription services revenue 160.4 170.3 485.6 506.9 Other business services revenue(1) 5.4 5.6 16.1 16.9 Other revenue 7.9 8.1 22.7 23.6 Total revenue $ 173.7 $ 184.0 $ 524.4 $ 547.4 (1) I ncludes wholesale and colocation lease revenue of $4.8 million and $4.8 million for the three months ended September 30, 2022 and 2021, respectively, and $ 14.4 million and $14.6 million for the nine months ended September 30, 2022 and 2021, respectively. |
Schedule of activity and costs of current and non-current costs of obtaining contracts | Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (in millions) Balance at beginning of period $ 38.2 $ 35.4 $ 37.3 $ 31.8 Deferral 4.6 4.3 12.4 12.2 Amortization (3.7) (2.7) (10.6) (7.0) Balance at end of period $ 39.1 $ 37.0 $ 39.1 $ 37.0 September 30, 2022 December 31, 2021 (in millions) Current costs of obtaining contracts with customers $ 15.4 $ 14.1 Non-current costs of obtaining contracts with customers 23.7 23.2 Total costs of obtaining contracts with customers $ 39.1 $ 37.3 |
Schedule of activity of contract liabilities and current and non-current contract liabilities | Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (in millions) Balance at beginning of period $ 2.9 $ 3.3 $ 3.3 $ 2.9 Deferral 2.9 3.3 9.1 9.1 Revenue recognized (3.0) (3.2) (9.6) (8.6) Balance at end of period $ 2.8 $ 3.4 $ 2.8 $ 3.4 September 30, 2022 December 31, 2021 (in millions) Current contract liabilities $ 2.5 $ 2.9 Non-current contract liabilities 0.3 0.4 Total contract liabilities $ 2.8 $ 3.3 |
Summary of expected revenue to be recognized in future periods related to performance obligations which have not been satisfied or are partially unsatisfied | 2022 2023 2024 Thereafter Total (in millions) Subscription services $ 13.7 $ 37.8 $ 21.8 $ 9.3 $ 82.6 Other business services 0.8 2.2 0.9 0.2 4.1 Total expected revenue $ 14.5 $ 40.0 $ 22.7 $ 9.5 $ 86.7 |
Schedule of change in the allowance for doubtful accounts for trade accounts receivable | Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (in millions) Balance at beginning of period $ 2.4 $ 5.0 $ 4.3 $ 6.7 Provision charged to expense (1) 2.0 2.1 2.7 5.7 Accounts written off, net of recoveries (1.0) (1.6) (3.6) (6.9) Balance at end of period $ 3.4 $ 5.5 $ 3.4 $ 5.5 (1) The Company released nil and $1.6 million of reserves established in 2020 related to COVID-19 during the three and nine months ended September 30, 2022, respectively. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment, Net | |
Schedule of property, plant and equipment | September 30, December 31, 2022 2021 (in millions) Distribution facilities $ 1,307.3 $ 1,238.3 Customer premise equipment 272.6 267.7 Head-end equipment 246.3 228.5 Computer equipment and software 149.8 132.5 Telephony infrastructure 52.4 52.4 Buildings and leasehold improvements 32.6 32.1 Vehicles 22.9 23.7 Office and technical equipment 19.0 18.9 Land 4.4 4.4 Construction in progress (including material inventory and other) 38.2 34.9 Total property, plant and equipment 2,145.5 2,033.4 Less accumulated depreciation (1,435.7) (1,311.1) $ 709.8 $ 722.3 |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accrued Liabilities and Other | |
Schedule of accrued liabilities and other | September 30, December 31, 2022 2021 (in millions) Programming costs $ 18.2 $ 19.3 Payroll and employee benefits 17.1 29.6 Other accrued liabilities 7.1 9.5 Property, income, sales and use taxes(1) 5.9 132.7 Franchise and revenue sharing fees 5.3 7.9 Customer cash collections (Transition Services Agreements) 3.4 17.5 Utility pole costs 2.4 2.2 $ 59.4 $ 218.7 (1) As of December 31, 2021 includes the current income tax payable associated with the sale of the Chicago, Illinois, Evansville, Indiana, and Baltimore, Maryland markets. |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Long-Term Debt and Finance Leases | |
Summary of long-term debt and finance lease obligations | December 31, September 30, 2022 2021 Available borrowing Effective Outstanding Outstanding capacity interest rate(1) balance balance (in millions) Long-term debt: Term B Loans, net(2) $ — 6.49 % $ 719.3 $ 724.2 Revolving Credit Facility(3) 245.6 3.00 % — — Total long-term debt $ 245.6 719.3 724.2 Other Financing 0.1 0.4 Finance lease obligations 21.5 22.3 Total long-term debt, finance lease obligations and other 740.9 746.9 Debt issuance costs, net(4) (4.8) (5.5) Sub-total 736.1 741.4 Less current portion (18.1) (17.9) Long-term portion $ 718.0 $ 723.5 (1) Represents the effective interest rate in effect for all borrowings outstanding as of September 30, 2022 pursuant to each debt instrument including the applicable margin. (2) At September 30, 2022 and December 31, 2021 includes $5.2 million and $5.8 million of net discounts, respectively. (3) Available borrowing capacity at September 30, 2022 represents $250.0 million of total availability less outstanding letters of credit of $4.4 million. Letters of credit are used in the ordinary course of business and are released when the respective contractual obligations have been fulfilled by the Company. (4) At September 30, 2022 and December 31, 2021 debt issuance costs include $3.7 million and $4.1 million related to Term B Loans and $1.1 million and $1.4 million related to the Revolving Credit Facility, respectively. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stock-Based Compensation | |
Summary of the restricted stock awards activity | The following table presents restricted stock activity during the nine months ended September 30, 2022: Number of Unvested Restricted Stock Shares Outstanding, beginning of period 4,325,124 Granted 836,388 Vested (1,671,123) Forfeited (168,332) Outstanding, end of period(1) 3,322,057 (1) The total outstanding unvested shares of restricted stock awards granted to employees and directors are included in total outstanding shares as of September 30, 2022. |
Earnings (Loss) per Common Sh_2
Earnings (Loss) per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings (Loss) per Common Share | |
Schedule of computation of income per share | Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (in millions, except share data) Income (loss) from continuing operations $ 0.5 $ (21.2) $ 10.2 $ (66.4) Income from discontinued operations $ — $ 539.1 $ — $ 606.3 Net income $ 0.5 $ 517.9 $ 10.2 $ 539.9 Basic weighted-average shares 84,274,050 82,973,519 83,908,691 82,615,949 Effect of dilutive securities: Restricted stock awards 2,461,196 — 2,763,184 — Diluted weighted-average shares 86,735,246 82,973,519 86,671,875 82,615,949 Basic and diluted earnings (loss) per Basic $ 0.01 $ (0.26) $ 0.12 $ (0.80) Diluted $ 0.01 $ (0.26) $ 0.12 $ (0.80) Basic and diluted earnings per Basic $ — $ 6.50 $ — $ 7.34 Diluted $ — $ 6.50 $ — $ 7.34 Basic and diluted earnings per common share Basic $ 0.01 $ 6.24 $ 0.12 $ 6.54 Diluted $ 0.01 $ 6.24 $ 0.12 $ 6.54 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities | |
Schedule of gains and losses on derivatives | Nine months ended September 30, 2021 (in millions) Interest rate swap contracts(1) Gain recorded in AOCI on derivatives, before tax $ 8.5 Tax impact (2.0) Gain recorded in AOCI on derivatives, net $ 6.5 (1) Gains (losses) on derivatives reclassified from AOCI into income are included in “ Interest expense ” in the unaudited condensed consolidated statements of operations, the same line item as the earnings effect of the hedged item. Losses recognized for the nine months ended September 30, 2021 total $9.5 million. |
General Information - Markets a
General Information - Markets and segments (Details) | 9 Months Ended |
Sep. 30, 2022 item segment | |
Organization and Basis of Presentation | |
Number of markets | item | 14 |
Number of reportable segments | segment | 1 |
Discontinued Operations - Compo
Discontinued Operations - Components of Income (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2021 Counterparty agreement | Sep. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | |
Discontinued Operations | |||
Number of separate asset sales | agreement | 2 | ||
Number of different buyers in asset sales | Counterparty | 2 | ||
Other income (expense): | |||
Income from discontinued operations | $ 539.1 | $ 606.3 | |
Atlantic and Astound broadband markets | Discontinued Operations, Held-for-sale or Disposed of by Sale | |||
Discontinued operations - Components of income | |||
Revenue | 83.7 | 293.9 | |
Costs and expenses | |||
Operating (excluding depreciation and amortization) | 28.9 | 106.1 | |
Selling, general and administrative | 5.2 | 10.7 | |
Depreciation and amortization | 41 | ||
Total costs and expenses | 34.1 | 157.8 | |
Income from operations | 49.6 | 136.1 | |
Other income (expense): | |||
Interest income (expense) | 0.4 | ||
Gain on sale of assets, net | 689.9 | 690.1 | |
Other income, net | 0.1 | ||
Income from discontinued operations before provision for income tax | 739.5 | 826.7 | |
Income tax expense | (200.4) | (220.4) | |
Income from discontinued operations | $ 539.1 | $ 606.3 |
Discontinued Operations - Reven
Discontinued Operations - Revenue by Service Offering (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Discontinued Operations | ||||
Total revenue | $ 173.7 | $ 184 | $ 524.4 | $ 547.4 |
Subscription services | ||||
Discontinued Operations | ||||
Revenue | 160.4 | 170.3 | 485.6 | 506.9 |
Other business services | ||||
Discontinued Operations | ||||
Revenue | 5.4 | 5.6 | 16.1 | 16.9 |
Other business services - Wholesale and colocation lease revenue | ||||
Discontinued Operations | ||||
Revenue | 4.8 | 4.8 | 14.4 | 14.6 |
Other revenue | ||||
Discontinued Operations | ||||
Other revenue | 7.9 | 8.1 | 22.7 | 23.6 |
Residential Subscription | Subscription services | ||||
Discontinued Operations | ||||
Revenue | 132.7 | 142.6 | 402.4 | 424.6 |
Residential Subscription | HSD | ||||
Discontinued Operations | ||||
Revenue | 84.2 | 85.6 | 251.1 | 246.6 |
Residential Subscription | Video | ||||
Discontinued Operations | ||||
Revenue | 42.4 | 50 | 132.8 | 156.1 |
Residential Subscription | Telephony | ||||
Discontinued Operations | ||||
Revenue | 6.1 | 7 | 18.5 | 21.9 |
Business Subscription | Subscription services | ||||
Discontinued Operations | ||||
Revenue | 27.7 | 27.7 | 83.2 | 82.3 |
Business Subscription | HSD | ||||
Discontinued Operations | ||||
Revenue | 18.1 | 17.7 | 53.9 | 52 |
Business Subscription | Video | ||||
Discontinued Operations | ||||
Revenue | 2.9 | 2.8 | 8.8 | 8.4 |
Business Subscription | Telephony | ||||
Discontinued Operations | ||||
Revenue | $ 6.7 | 7.2 | $ 20.5 | 21.9 |
Atlantic and Astound broadband markets | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||||
Discontinued Operations | ||||
Total revenue | 83.7 | 293.9 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Held-for-sale or Disposed of by Sale | Subscription services | ||||
Discontinued Operations | ||||
Revenue | 79.5 | 280.1 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Held-for-sale or Disposed of by Sale | Other business services | ||||
Discontinued Operations | ||||
Revenue | 0.6 | 1.6 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Held-for-sale or Disposed of by Sale | Other revenue | ||||
Discontinued Operations | ||||
Other revenue | 3.6 | 12.2 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Held-for-sale or Disposed of by Sale | Residential Subscription | ||||
Discontinued Operations | ||||
Revenue | 71.5 | 253 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Held-for-sale or Disposed of by Sale | Residential Subscription | HSD | ||||
Discontinued Operations | ||||
Revenue | 41.4 | 143.5 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Held-for-sale or Disposed of by Sale | Residential Subscription | Video | ||||
Discontinued Operations | ||||
Revenue | 27.1 | 98.6 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Held-for-sale or Disposed of by Sale | Residential Subscription | Telephony | ||||
Discontinued Operations | ||||
Revenue | 3 | 10.9 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Held-for-sale or Disposed of by Sale | Business Subscription | ||||
Discontinued Operations | ||||
Revenue | 8 | 27.1 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Held-for-sale or Disposed of by Sale | Business Subscription | HSD | ||||
Discontinued Operations | ||||
Revenue | 5 | 16.7 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Held-for-sale or Disposed of by Sale | Business Subscription | Video | ||||
Discontinued Operations | ||||
Revenue | 0.7 | 2.5 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Held-for-sale or Disposed of by Sale | Business Subscription | Telephony | ||||
Discontinued Operations | ||||
Revenue | $ 2.3 | $ 7.9 |
Discontinued Operations - Cash
Discontinued Operations - Cash Flow and Significant Non-Cash Items (Details) - Atlantic and Astound broadband markets - Discontinued Operations, Held-for-sale or Disposed of by Sale $ in Millions | 9 Months Ended |
Sep. 30, 2021 USD ($) | |
Specified items of cash flow | |
Capital expenditures | $ 41.2 |
Non-cash financing activities: | |
Capital expenditure accounts payable and accruals | $ 2.3 |
Discontinued Operations - Trans
Discontinued Operations - Transition Services Agreement (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 USD ($) agreement item | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Discontinued Operations | |||||
Other income, net | $ 1.5 | $ 1.9 | $ 15.7 | $ 2.4 | |
Transition Services Agreement | |||||
Discontinued Operations | |||||
Number of separate agreements | agreement | 2 | ||||
Agreement term | 12 months | ||||
Number of optional term extensions | item | 2 | ||||
Period of optional term extension | 3 months | ||||
Amount of employee service, processes or systems expense allocated to discontinued operations | $ 0 | ||||
Other income, net | $ 1.3 | $ 14.8 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue by Service Offering (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue from Contracts with Customers | ||||
Total revenue | $ 173.7 | $ 184 | $ 524.4 | $ 547.4 |
Subscription services | ||||
Revenue from Contracts with Customers | ||||
Revenue | 160.4 | 170.3 | 485.6 | 506.9 |
Other business services | ||||
Revenue from Contracts with Customers | ||||
Revenue | 5.4 | 5.6 | 16.1 | 16.9 |
Other business services - Wholesale and colocation lease revenue | ||||
Revenue from Contracts with Customers | ||||
Revenue | 4.8 | 4.8 | 14.4 | 14.6 |
Other revenue | ||||
Revenue from Contracts with Customers | ||||
Other revenue | 7.9 | 8.1 | 22.7 | 23.6 |
Residential Subscription | Subscription services | ||||
Revenue from Contracts with Customers | ||||
Revenue | 132.7 | 142.6 | 402.4 | 424.6 |
Residential Subscription | HSD | ||||
Revenue from Contracts with Customers | ||||
Revenue | 84.2 | 85.6 | 251.1 | 246.6 |
Residential Subscription | Video | ||||
Revenue from Contracts with Customers | ||||
Revenue | 42.4 | 50 | 132.8 | 156.1 |
Residential Subscription | Telephony | ||||
Revenue from Contracts with Customers | ||||
Revenue | 6.1 | 7 | 18.5 | 21.9 |
Business Subscription | Subscription services | ||||
Revenue from Contracts with Customers | ||||
Revenue | 27.7 | 27.7 | 83.2 | 82.3 |
Business Subscription | HSD | ||||
Revenue from Contracts with Customers | ||||
Revenue | 18.1 | 17.7 | 53.9 | 52 |
Business Subscription | Video | ||||
Revenue from Contracts with Customers | ||||
Revenue | 2.9 | 2.8 | 8.8 | 8.4 |
Business Subscription | Telephony | ||||
Revenue from Contracts with Customers | ||||
Revenue | $ 6.7 | $ 7.2 | $ 20.5 | $ 21.9 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Costs of Obtaining Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Revenue from Contracts with Customers | |||||
Capitalized contract cost, Beginning of period | $ 38.2 | $ 35.4 | $ 37.3 | $ 31.8 | |
Deferral | 4.6 | 4.3 | 12.4 | 12.2 | |
Amortization | (3.7) | (2.7) | (10.6) | (7) | |
Capitalized contract cost, End of period | 39.1 | 37 | 39.1 | 37 | |
Current costs of obtaining contracts with customers | 15.4 | 15.4 | $ 14.1 | ||
Non-current costs of obtaining contracts with customers | 23.7 | 23.7 | 23.2 | ||
Total costs of obtaining contracts with customers | $ 39.1 | $ 37 | $ 39.1 | $ 37 | $ 37.3 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Revenue from Contracts with Customers | |||||
Contract liability, Beginning of period | $ 2.9 | $ 3.3 | $ 3.3 | $ 2.9 | |
Deferral | 2.9 | 3.3 | 9.1 | 9.1 | |
Revenue recognized | (3) | (3.2) | (9.6) | (8.6) | |
Contract liability, End of period | 2.8 | 3.4 | 2.8 | 3.4 | |
Current contract liabilities | 2.5 | 2.5 | $ 2.9 | ||
Non-current contract liabilities | 0.3 | 0.3 | 0.4 | ||
Total contract liabilities | $ 2.8 | $ 3.4 | $ 2.8 | $ 3.4 | $ 3.3 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Unsatisfied Performance Obligations Amount (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 86.7 |
Subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 82.6 |
Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 4.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 14.5 |
Expected period to recognize revenue of remaining performance obligations | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | Subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 13.7 |
Expected period to recognize revenue of remaining performance obligations | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 0.8 |
Expected period to recognize revenue of remaining performance obligations | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 40 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 37.8 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 2.2 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 22.7 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 21.8 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 0.9 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 9.5 |
Expected period to recognize revenue of remaining performance obligations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 9.3 |
Expected period to recognize revenue of remaining performance obligations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 0.2 |
Expected period to recognize revenue of remaining performance obligations |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Provision for Doubtful Accounts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue from Contracts with Customers | ||||
Threshold period past due for trade accounts receivable for disconnecting service to customers | 100 days | |||
Change in the allowance for doubtful accounts | ||||
Balance at beginning of period | $ 2.4 | $ 5 | $ 4.3 | $ 6.7 |
Provision charged to expense | 2 | 2.1 | 2.7 | 5.7 |
Accounts written off, net of recoveries | (1) | (1.6) | (3.6) | (6.9) |
Balance at end of period | 3.4 | $ 5.5 | 3.4 | $ 5.5 |
Amount released from reserve related to COVID-19 | $ 0 | $ 1.6 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Components (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | $ 2,145.5 | $ 2,145.5 | $ 2,033.4 | ||
Less accumulated depreciation | (1,435.7) | (1,435.7) | (1,311.1) | ||
Plant, Property and Equipment, Net | 709.8 | 709.8 | 722.3 | ||
Depreciation expense | 44.9 | $ 42.2 | 133.7 | $ 125.7 | |
Gain on sale of operating assets, net | 0 | 1 | |||
Distribution facilities | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 1,307.3 | 1,307.3 | 1,238.3 | ||
Customer premise equipment | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 272.6 | 272.6 | 267.7 | ||
Head-end equipment | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 246.3 | 246.3 | 228.5 | ||
Computer equipment and software | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 149.8 | 149.8 | 132.5 | ||
Telephony infrastructure | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 52.4 | 52.4 | 52.4 | ||
Buildings and leasehold improvements | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 32.6 | 32.6 | 32.1 | ||
Vehicles | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 22.9 | 22.9 | 23.7 | ||
Office and technical equipment | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 19 | 19 | 18.9 | ||
Land | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | 4.4 | 4.4 | 4.4 | ||
Construction in progress (including material inventory and other) | |||||
Property, Plant and Equipment, Net | |||||
Total property, plant and equipment | $ 38.2 | $ 38.2 | $ 34.9 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Accrued Liabilities and Other | ||
Programming costs | $ 18.2 | $ 19.3 |
Payroll and employee benefits | 17.1 | 29.6 |
Other accrued liabilities | 7.1 | 9.5 |
Property, income, sales and use taxes | 5.9 | 132.7 |
Franchise and revenue sharing fees | 5.3 | 7.9 |
Customer cash collections (Transition Services Agreements) | 3.4 | 17.5 |
Utility pole costs | 2.4 | 2.2 |
Accrued liabilities and other | $ 59.4 | $ 218.7 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Leases - Summary (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 21, 2021 |
Long-Term Debt and Capital Leases | |||
Available borrowing capacity | $ 245.6 | ||
Long-term debt | 719.3 | $ 724.2 | |
Other Financing | 0.1 | 0.4 | |
Finance lease obligations | $ 21.5 | $ 22.3 | |
Finance Lease, Liability, Statement of Financial Position | Long-term portion, Less current portion | Long-term portion, Less current portion | |
Total long-term debt, finance lease obligations and other | $ 740.9 | $ 746.9 | |
Debt issuance costs, net | (4.8) | (5.5) | |
Sub-total | 736.1 | 741.4 | |
Less current portion | (18.1) | (17.9) | |
Long-term portion | $ 718 | 723.5 | |
Term B Loans | |||
Long-Term Debt and Capital Leases | |||
Effective interest rate (as a percent) | 6.49% | ||
Long-term debt | $ 719.3 | 724.2 | |
Debt issuance costs, net | (3.7) | (4.1) | |
Net discount | 5.2 | 5.8 | |
Revolving Credit Facility | |||
Long-Term Debt and Capital Leases | |||
Available borrowing capacity | $ 245.6 | ||
Effective interest rate (as a percent) | 3% | ||
Debt issuance costs, net | $ (1.1) | $ (1.4) | |
Maximum borrowing capacity | 250 | $ 250 | |
Outstanding letters of credit | $ 4.4 |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Leases - Term B Loans and Revolving Credit Facility (Details) - USD ($) $ in Millions | Dec. 21, 2021 | Sep. 30, 2022 |
Term B Loans | ||
Long-Term Debt and Capital Leases | ||
Debt issued | $ 730 | |
Term B Loans | SOFR | ||
Long-Term Debt and Capital Leases | ||
Spread on variable rate (as a percent) | 3% | |
Floor rate (as a percent) | 0.50% | |
Revolving Credit Facility | ||
Long-Term Debt and Capital Leases | ||
Maximum borrowing capacity | $ 250 | $ 250 |
Commitment fee rate for unused commitments | 0.50% | |
Revolving Credit Facility | SOFR | ||
Long-Term Debt and Capital Leases | ||
Spread on variable rate (as a percent) | 2.75% |
Stock-Based Compensation - 2017
Stock-Based Compensation - 2017 Plan (Details) | Sep. 30, 2022 shares |
2017 Plan | |
Stock Based Compensation | |
Number of authorized shares | 12,074,128 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted stock awards - shares | 3 Months Ended | 9 Months Ended |
Dec. 31, 2021 | Sep. 30, 2022 | |
Restricted Stock Awards | ||
Outstanding, beginning of period (in shares) | 4,181,731 | 4,325,124 |
Granted (in shares) | 836,388 | |
Vested (in shares) | (1,671,123) | |
Forfeited (in shares) | (168,332) | |
Outstanding, end of period (in shares) | 4,325,124 | 3,322,057 |
Additional information | ||
Vesting period | 4 years |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 03, 2022 $ / shares shares | Feb. 28, 2022 | Dec. 31, 2021 USD ($) | Dec. 31, 2021 item | |
Fair value assumptions | ||||
Number of service areas sold | item | 5 | |||
Performance shares | ||||
Stock Based Compensation | ||||
Granted (in shares) | shares | 199,592 | |||
Fair value assumptions | ||||
Amount reversed of previously recognized stock compensation expense | $ | $ 1 | |||
Performance shares | Share-based Payment Arrangement, Tranche One, TSR | ||||
Stock Based Compensation | ||||
Vesting (as a percent) | 50% | |||
Grant date fair value (in dollars per share) | $ / shares | $ 24.71 | |||
Fair value assumptions | ||||
Risk-free interest rate (as a percent) | 1.66% | |||
Expected volatility (as a percent) | 58.47% | |||
Expected life | 3 years | |||
Performance shares | Share-based Payment Arrangement, Tranche Two, EBITDA metric | ||||
Stock Based Compensation | ||||
Vesting (as a percent) | 50% | |||
Vesting period | 3 years | |||
Performance shares | Share-based Payment Arrangement, Tranche Two, EBITDA metric | Award date, 2020 and 2021 | ||||
Stock Based Compensation | ||||
Vesting period | 3 years | 3 years | ||
Performance shares | Minimum | ||||
Stock Based Compensation | ||||
Vesting (as a percent) | 50% | |||
Performance shares | Maximum | ||||
Stock Based Compensation | ||||
Vesting (as a percent) | 200% |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Selling, general and administrative expense and operating expenses (excluding depreciation and amortization) | ||||
Stock-Based Compensation | ||||
Non-cash compensation expense | $ 6.4 | $ 4.5 | $ 18.5 | $ 11.6 |
Earnings (Loss) per Common Sh_3
Earnings (Loss) per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings (Loss) per Common Share | ||||
Income (loss) from continuing operations, basic | $ 0.5 | $ (21.2) | $ 10.2 | $ (66.4) |
Income (loss) from continuing operations, diluted | 0.5 | (21.2) | 10.2 | (66.4) |
Income from discontinued operations, basic | 539.1 | 606.3 | ||
Income from discontinued operations, diluted | 539.1 | 606.3 | ||
Net income, basic | 0.5 | 517.9 | 10.2 | 539.9 |
Net income, diluted | $ 0.5 | $ 517.9 | $ 10.2 | $ 539.9 |
Basic weighted-average shares | 84,274,050 | 82,973,519 | 83,908,691 | 82,615,949 |
Effect of dilutive securities | ||||
Restricted stock awards | 2,461,196 | 2,763,184 | ||
Diluted weighted-average shares | 86,735,246 | 82,973,519 | 86,671,875 | 82,615,949 |
Basic and diluted earnings (loss) per common share - continuing operations | ||||
Basic (in dollars per share) | $ 0.01 | $ (0.26) | $ 0.12 | $ (0.80) |
Diluted (in dollars per share) | 0.01 | (0.26) | 0.12 | (0.80) |
Basic and diluted earnings per common share - discontinued operations | ||||
Basic (in dollars per share) | 6.50 | 7.34 | ||
Diluted (in dollars per share) | 6.50 | 7.34 | ||
Basic and diluted earnings per common share | ||||
Basic (in dollars per share) | 0.01 | 6.24 | 0.12 | 6.54 |
Diluted (in dollars per share) | $ 0.01 | $ 6.24 | $ 0.12 | $ 6.54 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Financial instruments and financial liabilities | ||
Transfer of assets from level 1 to level 2 | $ 0 | $ 0 |
Transfer of assets from level 2 to level 1 | 0 | 0 |
Transfer of liabilities from level 1 to level 2 | 0 | 0 |
Transfer of liabilities from level 2 to level 1 | 0 | 0 |
Transfer of assets into level 3 | 0 | 0 |
Transfer of assets out of level 3 | 0 | 0 |
Transfer of liabilities into level 3 | 0 | 0 |
Transfer of liabilities out of level 3 | $ 0 | $ 0 |
Recurring | ||
Financial instruments and financial liabilities | ||
Long-Term Debt, Fair Value by Fair Value Hierarchy Level | us-gaap:FairValueInputsLevel2Member | us-gaap:FairValueInputsLevel2Member |
Long-term debt | $ 702.8 | $ 729.1 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Notional amounts and fair value (Details) $ in Millions | May 09, 2018 USD ($) |
Interest rate swaps | Cash flow hedging | |
Derivatives | |
Notional amount | $ 1,361.2 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Gains and losses on derivatives (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021 USD ($) | |
Gains and losses on derivatives | |
Gain recorded in AOCI on derivatives, net | $ 6.5 |
Cash flow hedging | Interest rate swaps | |
Gains and losses on derivatives | |
Gain recorded in AOCI on derivatives, before tax | 8.5 |
Tax impact | (2) |
Gain recorded in AOCI on derivatives, net | 6.5 |
Gain (loss) on derivatives | $ (9.5) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income | Interest Expense. |
Income Taxes - (Benefit) Expens
Income Taxes - (Benefit) Expense (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 item | |
Income Taxes | |||||
Income tax (benefit) expense | $ | $ 0.4 | $ 204.6 | $ 4.5 | $ 208.3 | |
Deferred tax (expense) benefit | |||||
Number of service areas sold | item | 5 |