Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 | 83,632,666 | |
Entity Central Index Key | 0001701051 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 22.6 | $ 31 |
Accounts receivable-trade, net of allowance for doubtful accounts of $6.7 and $4.3, respectively | 40.5 | 39.9 |
Accounts receivable-other, net | 13.4 | 12.2 |
Prepaid expenses and other | 41.1 | 37.8 |
Total current assets | 117.6 | 120.9 |
Right-of-use lease assets-operating | 18.3 | 15 |
Property, plant and equipment, net | 787.3 | 725.8 |
Franchise operating rights | 325.3 | 585.1 |
Goodwill | 225.1 | 225.1 |
Intangible assets subject to amortization, net | 1.1 | 1.3 |
Other non-current assets | 47.2 | 44.2 |
Total assets | 1,521.9 | 1,717.4 |
Current liabilities | ||
Accounts payable-trade | 52 | 46.1 |
Accrued interest | 1.2 | 0.1 |
Current portion of long-term lease liability-operating | 4.2 | 4.9 |
Accrued liabilities and other | 67.8 | 68.7 |
Current portion of long-term debt and finance lease obligations | 17.2 | 17.7 |
Current portion of unearned service revenue | 27 | 27.2 |
Total current liabilities | 169.4 | 164.7 |
Long-term debt and finance lease obligations, net of debt issuance costs -less current portion | 871.9 | 725 |
Long-term lease liability-operating | 16.2 | 11.6 |
Deferred income taxes, net | 138.6 | 225.3 |
Other non-current liabilities | 26.8 | 15.7 |
Total liabilities | 1,222.9 | 1,142.3 |
Commitments and contingencies (Note 13) | ||
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; 98,588,713 and 96,830,312 issued as of September 30, 2023 and December 31, 2022, respectively; 83,632,263 and 86,417,733 outstanding as of September 30, 2023 and December 31, 2022, respectively | 1 | 1 |
Additional paid-in capital | 388.9 | 374.7 |
Accumulated income | 63.8 | 308 |
Treasury stock at cost, 14,956,450 and 10,412,579 shares as of September 30, 2023 and December 31, 2022, respectively | (154.7) | (108.6) |
Total stockholders' equity | 299 | 575.1 |
Total liabilities and stockholders' equity | $ 1,521.9 | $ 1,717.4 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable-trade, allowance for doubtful accounts | $ 6.7 | $ 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) | 98,588,713 | 96,830,312 |
Common stock, shares outstanding ( in shares) | 83,632,263 | 86,417,733 |
Common shares held in treasury, (in shares) | 14,956,450 | 10,412,579 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Revenue | $ 173.1 | $ 173.7 | $ 517.9 | $ 524.4 |
Costs and expenses: | ||||
Operating (excluding depreciation and amortization) | 75.6 | 79.1 | 229.3 | 249.4 |
Selling, general and administrative | 37.5 | 39.7 | 166.6 | 117.3 |
Depreciation and amortization | 49.4 | 45 | 141.6 | 132.9 |
Impairment losses on intangibles | 131.7 | 259.8 | ||
Total costs and expenses | 294.2 | 163.8 | 797.3 | 499.6 |
(Loss) income from operations | (121.1) | 9.9 | (279.4) | 24.8 |
Other income (expense): | ||||
Interest expense | (18.9) | (10.5) | (51.1) | (25.8) |
Other income, net | (0.1) | 1.5 | 1.9 | 15.7 |
(Loss) income before provision for income tax | (140.1) | 0.9 | (328.6) | 14.7 |
Income tax benefit (expense) | 35.6 | (0.4) | 84.4 | (4.5) |
Net (loss) income | $ (104.5) | $ 0.5 | $ (244.2) | $ 10.2 |
Basic and diluted (loss) earnings per common share | ||||
Basic (in dollars per share) | $ (1.29) | $ 0.01 | $ (2.99) | $ 0.12 |
Diluted (in dollars per share) | $ (1.29) | $ 0.01 | $ (2.99) | $ 0.12 |
Weighted-average common shares outstanding | ||||
Basic (in shares) | 80,888,537 | 84,274,050 | 81,797,740 | 83,908,691 |
Diluted (in shares) | 80,888,537 | 86,735,246 | 81,797,740 | 86,671,875 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Common Stock | Treasury Stock at Cost | Additional Paid-in Capital | Accumulated Income | Total |
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 | ||||
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 | ||||
Increase (Decrease) in Stockholders' Deficit | |||||
Purchase of shares (in shares) | 389,817 | ||||
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 | ||||
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) | 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 | ||||
Balances at beginning of period at Dec. 31, 2022 | $ 1 | (108.6) | 374.7 | 308 | $ 575.1 |
Balances at beginning of period (in shares) at Dec. 31, 2022 | 86,417,733 | 86,417,733 | |||
Increase (Decrease) in Stockholders' Deficit | |||||
Stock-based compensation | 5.6 | $ 5.6 | |||
Issuance of restricted stock, net (in shares) | 1,783,965 | ||||
Purchase of shares | (28.4) | (28.4) | |||
Purchase of shares (in shares) | (2,642,178) | ||||
Net Income (Loss) | (38) | (38) | |||
Balances at end of period at Mar. 31, 2023 | $ 1 | (137) | 380.3 | 270 | 514.3 |
Balances at end of period (in shares) at Mar. 31, 2023 | 85,559,520 | ||||
Balances at beginning of period at Dec. 31, 2022 | $ 1 | $ (108.6) | 374.7 | 308 | $ 575.1 |
Balances at beginning of period (in shares) at Dec. 31, 2022 | 86,417,733 | 86,417,733 | |||
Increase (Decrease) in Stockholders' Deficit | |||||
Purchase of shares (in shares) | 4,543,871 | ||||
Net Income (Loss) | $ (244.2) | ||||
Balances at end of period at Sep. 30, 2023 | $ 1 | $ (154.7) | 388.9 | 63.8 | $ 299 |
Balances at end of period (in shares) at Sep. 30, 2023 | 83,632,263 | 83,632,263 | |||
Balances at beginning of period at Mar. 31, 2023 | $ 1 | (137) | 380.3 | 270 | $ 514.3 |
Balances at beginning of period (in shares) at Mar. 31, 2023 | 85,559,520 | ||||
Increase (Decrease) in Stockholders' Deficit | |||||
Stock-based compensation | 5.1 | 5.1 | |||
Issuance of restricted stock, net (in shares) | (8,493) | ||||
Purchase of shares | (17.5) | (17.5) | |||
Purchase of shares (in shares) | (1,866,046) | ||||
Net Income (Loss) | (101.7) | (101.7) | |||
Balances at end of period at Jun. 30, 2023 | $ 1 | (154.5) | 385.4 | 168.3 | 400.2 |
Balances at end of period (in shares) at Jun. 30, 2023 | 83,684,981 | ||||
Increase (Decrease) in Stockholders' Deficit | |||||
Stock-based compensation | 3.5 | 3.5 | |||
Issuance of restricted stock, net (in shares) | (17,071) | ||||
Purchase of shares | $ (0.2) | (0.2) | |||
Purchase of shares (in shares) | (35,647) | 35,647 | |||
Net Income (Loss) | (104.5) | (104.5) | |||
Balances at end of period at Sep. 30, 2023 | $ 1 | $ (154.7) | $ 388.9 | $ 63.8 | $ 299 |
Balances at end of period (in shares) at Sep. 30, 2023 | 83,632,263 | 83,632,263 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 |
Restricted stock awards | |||||||
Number of shares granted to employees and directors | 2,699,299 | 2,847,006 | 3,057,037 | 3,223,995 | 3,322,057 | 3,523,316 | 3,721,638 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (244.2) | $ 10.2 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 141.3 | 133.9 |
Deferred income taxes | (86.7) | (9) |
Provision for doubtful accounts | 8.5 | 2.7 |
Loss (gain) on sale of operating assets, net | 0.3 | (1) |
Amortization of debt issuance costs and discount | 1.3 | 1.3 |
Impairment losses on intangibles | 259.8 | |
Non-cash compensation | 13.9 | 18.5 |
Other non-cash items | 0.1 | 0.1 |
Changes in operating assets and liabilities: | ||
Receivables and other operating assets | (16.7) | (5.9) |
Payables and accruals | 12.8 | (163.6) |
Net cash provided by (used in) operating activities | 90.4 | (12.8) |
Cash flows from investing activities: | ||
Capital expenditures | (188.3) | (114.5) |
Other investing activities | 0.2 | 1.3 |
Net cash used in investing activities | (188.1) | (113.2) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt, net | 160 | |
Payments on long-term debt and finance lease obligations | (24.5) | (14.9) |
Purchase of shares | (46.2) | (7) |
Net cash provided by (used in) financing activities | 89.3 | (21.9) |
Decrease in cash and cash equivalents | (8.4) | (147.9) |
Cash and cash equivalents, beginning of period | 31 | 193.2 |
Cash and cash equivalents, end of period | 22.6 | 45.3 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the periods for interest | 48.5 | 24.3 |
Cash paid during the periods for income taxes | 10.9 | 142.7 |
Cash received during the periods for refunds of income taxes | 4.9 | |
Non-cash operating activities: | ||
Operating lease additions | 8 | 2.7 |
Non-cash financing activities: | ||
Finance lease additions | 9.6 | 8.3 |
Capital expenditures within accounts payable and accruals | $ 36.2 | $ 25.9 |
General Information
General Information | 9 Months Ended |
Sep. 30, 2023 | |
General Information | |
General Information | Note 1. General Information WideOpenWest, Inc. (“WOW” or the “Company”) is one of the nation’s leading broadband providers offering an expansive portfolio of advanced services, including high-speed data (“HSD”), cable television (“Video”), and digital telephony (“Telephony”) services to residential and business customers. The Company serves customers in 15 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, Pinellas County and Seminole 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, 2023 | |
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 2022 Annual Report filed with the SEC on February 27, 2023. 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | Note 3. 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, 2023 2022 2023 2022 (in millions) Residential subscription HSD $ 90.8 $ 84.2 $ 265.6 $ 251.1 Video 36.1 42.4 114.0 132.8 Telephony 5.2 6.1 16.3 18.5 Total residential subscription $ 132.1 $ 132.7 $ 395.9 $ 402.4 Business subscription HSD $ 19.0 $ 18.1 $ 56.1 $ 53.9 Video 2.8 2.9 8.6 8.8 Telephony 6.4 6.7 19.5 20.5 Total business subscription $ 28.2 $ 27.7 $ 84.2 $ 83.2 Total subscription services revenue 160.3 160.4 480.1 485.6 Other business services revenue(1) 5.4 5.4 15.7 16.1 Other revenue 7.4 7.9 22.1 22.7 Total revenue $ 173.1 $ 173.7 $ 517.9 $ 524.4 (1) I ncludes wholesale and colocation lease revenue of $5.0 million and $4.8 million for the three months ended September 30, 2023 and 2022, respectively and $14.6 million and $14.4 million for the nine months ended September 30, 2023 and 2022, 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, 2023 2022 2023 2022 (in millions) Balance at beginning of period $ 40.8 $ 38.2 $ 39.5 $ 37.3 Deferral 4.8 4.6 14.1 12.4 Amortization (4.1) (3.7) (12.1) (10.6) Balance at end of period $ 41.5 $ 39.1 $ 41.5 $ 39.1 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, 2023 December 31, 2022 (in millions) Current costs of obtaining contracts with customers $ 16.3 $ 15.6 Non-current costs of obtaining contracts with customers 25.2 23.9 Total costs of obtaining contracts with customers $ 41.5 $ 39.5 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, 2023 2022 2023 2022 (in millions) Balance at beginning of period $ 2.5 $ 2.9 $ 2.7 $ 3.3 Deferral 2.8 2.9 8.0 9.1 Revenue recognized (2.8) (3.0) (8.2) (9.6) Balance at end of period $ 2.5 $ 2.8 $ 2.5 $ 2.8 The following table presents the current and non-current portion of contract liabilities as of the end of the corresponding periods: September 30, 2023 December 31, 2022 (in millions) Current contract liabilities $ 2.2 $ 2.4 Non-current contract liabilities 0.3 0.3 Total contract liabilities $ 2.5 $ 2.7 The current portion 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 has 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, 2023 is set forth in the table below: 2023 2024 2025 Thereafter Total (in millions) Subscription services $ 15.8 $ 46.9 $ 26.2 $ 11.0 $ 99.9 Other business services 0.8 2.5 1.0 0.4 4.7 Total expected revenue $ 16.6 $ 49.4 $ 27.2 $ 11.4 $ 104.6 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, 2023 2022 2023 2022 (in millions) Balance at beginning of period $ 5.9 $ 2.4 $ 4.3 $ 4.3 Provision charged to expense(1) 3.0 2.0 8.5 2.7 Accounts written off, net of recoveries (2.2) (1.0) (6.1) (3.6) Balance at end of period $ 6.7 $ 3.4 $ 6.7 $ 3.4 (1) During the three and nine months ended September 30, 2022, the Company released nil and $1.6 million of reserves established in 2020 related to COVID-19. |
Plant, Property and Equipment,
Plant, Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2023 | |
Plant, Property and Equipment, Net | |
Plant, Property and Equipment, Net | Note 4. Plant, Property and Equipment, Net Plant, property and equipment consists of the following: September 30, December 31, 2023 2022 (in millions) Distribution facilities $ 1,446.8 $ 1,341.1 Customer premise equipment 272.3 272.3 Head-end equipment 287.1 256.7 Computer equipment and software 174.4 156.4 Telephony infrastructure 48.0 52.4 Buildings and leasehold improvements 33.2 33.4 Vehicles 25.2 22.9 Office and technical equipment 18.9 19.1 Land 4.4 4.4 Construction in progress (including material inventory and other) 69.6 43.5 Total property, plant and equipment 2,379.9 2,202.2 Less accumulated depreciation (1,592.6) (1,476.4) $ 787.3 $ 725.8 Depreciation expense for the three months ended September 30, 2023 and 2022 was $48.9 million and $44.9 million, respectively. Included in depreciation and amortization expense in the condensed consolidated statement of operations for the three months ended September 30, 2023 and 2022 were net losses on sales of operating assets of $0.4 million and nil, respectively. Depreciation expense for the nine months ended September 30, 2023 and 2022 was $141.1 million and $133.7 million, respectively. Included in depreciation and amortization expense in the condensed consolidated statement of operations for the nine months ended September 30, 2023 and 2022 were net losses on sales of operating assets of $0.3 million and net gains on sales of operating assets of $1.0 million, respectively. |
Franchising Operating Rights an
Franchising Operating Rights and Goodwill | 9 Months Ended |
Sep. 30, 2023 | |
Franchising Operating Rights and Goodwill | |
Franchising Operating Rights and Goodwill | Note 5. Franchising Operating Rights and Goodwill Changes in the carrying amounts of the Company’s franchise operating rights and goodwill during the three and nine months ended September 30, 2023 are set forth below: Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 (in millions) Franchise Operating Rights Balance at beginning of period $ 457.0 $ 620.1 $ 585.1 $ 620.1 Impairment charge (131.7) — (259.8) — Balance at end of period $ 325.3 $ 620.1 $ 325.3 $ 620.1 Goodwill Balance at beginning of period $ 225.1 $ 225.1 $ 225.1 $ 225.1 Impairment charge — — — — Balance at end of period $ 225.1 $ 225.1 $ 225.1 $ 225.1 Due to the decline in the Company’s projected cash flows, combined with a reduction in stock price, which represented a triggering event during the three months ended September 30, 2023, the Company performed an interim impairment analysis of its franchise operating rights and goodwill. Franchise Operating Rights Franchise operating rights are evaluated for impairment by comparing the carrying value of the intangible asset to its estimated fair value, utilizing both quantitative and qualitative methods, at the lowest level of identifiable cash flows, which generally represent the markets in which the Company operates. Qualitative analysis is performed for franchise assets in the event the previous analysis indicates that there is a significant margin between the estimated fair value of franchise operating rights and the carrying value of those rights, and that it is more likely than not that the estimated fair value equals or exceeds its carrying value. For the interim impairment analysis, all franchise operating rights were evaluated using quantitative analysis. The Company calculates the estimated fair value of franchise operating rights using the multi-period excess earnings method, an income approach, which calculates the estimated fair value of an intangible asset by discounting its future cash flows. The estimated fair value is determined based on discrete discounted future cash flows attributable to each franchise operating right intangible asset using assumptions consistent with internal forecasts. Assumptions key in estimating fair value under this method include, but are not limited to, revenue and subscriber growth rates (less anticipated customer churn), operating expenditures, capital expenditures (including any build out), market share achieved or market multiples, contributory asset charge rates, tax rates and a discount rate. The discount rate used in the model represents a weighted average cost of capital and the perceived risk associated with an intangible asset such as the Company’s franchise operating rights. If the fair value of the franchise operating right asset was less than its carrying value, the Company recognizes an impairment charge for the difference between the fair value and the carrying value of the asset. As a result of the interim impairment analyses performed, the estimated fair value of certain franchise operating right assets was determined to be below the carrying value, which resulted in the recognition of non-cash impairment losses for the three months ended September 30, 2023. The Company also performed an interim impairment analysis for the three months ended June 30, 2023, which resulted in the recognition of non-cash impairment losses. The table below outlines the impairment charges recognized in each market for the periods presented: September 30, 2023 Three month ended Nine months ended (in millions) Columbus, GA $ 35.4 $ 39.1 Huntsville, AL 21.5 81.5 Augusta, GA 20.5 44.9 Montgomery, AL 20.0 33.0 Charleston, SC 12.5 12.5 Panama City, FL 9.5 23.0 Valley, AL 6.5 10.5 Knoxville, TN 5.8 5.8 Newnan, GA - 9.5 Total $ 131.7 $ 259.8 The primary driver of the impairment charge was a decline in the estimated fair market value of indefinite-lived intangible assets in certain markets. The decline is primarily due to declining cash flows in the markets listed above, which results in an increase in the discount rate used to estimate fair value, with the decline in the Company’s common stock price further contributing to the impairment change. The impairment charges do not have an impact on the Company’s intent and/or ability to renew or extend existing franchise operating rights. Goodwill For the interim impairment analysis, the Company quantitatively evaluated goodwill at the consolidated reporting unit level. The Company determined the estimated fair value utilizing a market approach that incorporated the approximate market capitalization as of the interim testing date, increased by the quoted market price of the Company’s debt and adjusted for a control premium. Based on the interim analysis, the estimated fair value of goodwill exceeded the carrying value, as such, no impairment charge related to goodwill was recognized during the three and nine months ended September 30, 2023. |
Accrued Liabilities and Other
Accrued Liabilities and Other | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 2022 (in millions) Payroll and employee benefits $ 17.3 $ 22.2 Programming costs 12.3 15.9 Patent litigation settlement 9.8 1.3 Other accrued liabilities 8.6 8.6 Restructuring related to employee severance 6.0 4.1 Franchise and revenue sharing fees 4.8 5.6 Customer cash collections (Transition Services Agreements) 3.6 3.6 Property, income, sales and use taxes 3.4 5.8 Utility pole costs 2.0 1.6 $ 67.8 $ 68.7 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Leases | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 2022 Available borrowing Effective Outstanding Outstanding capacity interest rate(1) balance balance (in millions) Long-term debt: Term B Loans, net(2) $ — 8.39 % $ 712.9 $ 717.7 Revolving Credit Facility(3) 86.4 8.13 % 159.0 9.0 Total long-term debt $ 86.4 871.9 726.7 Finance lease obligations 21.2 20.6 Total long-term debt and finance lease obligations 893.1 747.3 Debt issuance costs, net(4) (4.0) (4.6) Sub-total 889.1 742.7 Less current portion (17.2) (17.7) Long-term portion $ 871.9 $ 725.0 (1) Represents the effective interest rate in effect for all borrowings outstanding as of September 30, 2023 pursuant to each debt instrument including the applicable margin. (2) At September 30, 2023 and December 31, 2022 includes $4.3 million and $5.0 million of net discounts, respectively. (3) Available borrowing capacity at September 30, 2023 represents $250.0 million of total availability less borrowings of $159.0 million on the Revolving Credit Facility and outstanding letters of credit of $4.6 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, 2023 and December 31, 2022 debt issuance costs include $3.1 million and $3.5 million related to Term B Loans and $0.9 million and $1.1 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 B Loan in an aggregate principal amount of $730.0 million and (ii) a $250.0 million revolving credit commitment. The Term B Loan 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, 2023, the Company was in compliance with all debt covenants. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 8. Stock-Based Compensation The Company’s stock incentive plan, the 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 plan. The stock incentive plan has authorized 15,924,128 shares of the Company’s 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 or the outstanding shares of common stock. 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. The Company recorded $3.5 million and $6.4 million of total non-cash compensation expense for the three months ended September 30, 2023 and 2022, respectively, and recorded $13.9 million and $18.5 million for the nine months ended September 30, 2023 and 2022, respectively. Certain awards were modified during the year ended December 31, 2021 and were classified as liabilities. During the nine months ended September 30, 2023, the remainder of these liability-based awards were settled with shares of restricted stock for approximately $0.3 million. The non-cash compensation expense associated with these awards was nil and $0.5 million for the nine months ended September 30, 2023 and 2022, respectively and is included in total non-cash compensation expense. The following table presents restricted stock activity during the nine months ended September 30, 2023: Number of Unvested Restricted Stock Shares Outstanding, beginning of period 3,223,995 Granted 2,075,854 Vested (2,283,097) Forfeited (317,453) Outstanding, end of period(1) 2,699,299 (1) The total outstanding non-vested shares of restricted stock awards granted to employees and directors are included in total outstanding shares as of September 30, 2023. Grants of Performance Shares On March 3, 2023, the Company granted 264,028 performance shares which will vest based on the Company’s achievement level relative to the following performance measures at December 31, 2025: 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 $16.19 per share. The estimated fair value is amortized to expense over the requisite service period, which ends on December 31, 2025. 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 4.62%, volatility factors in the expected market price of the Company's common shares of 51.61% 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. At September 30, 2023, 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 2022 and 2023. Achievement of the performance conditions associated with the 2021 performance shares was deemed probable. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity | |
Equity | Note 9. Equity On October 4, 2022, the Company’s Board of Directors authorized the Company to repurchase up to $50.0 million of its outstanding common stock. The Company completed the Share Repurchase Program in June 2023 with approximately 4.9 million shares purchased for $50.4 million (including commissions). The following table summarizes the Company’s purchases of WOW common stock during the three and nine months ended September 30, 2023 and 2022, respectively. These shares are reflected as treasury stock in the Company’s consolidated balance sheets. Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 (shares) Share buybacks — — 3,751,803 — Income tax withholding(1) 35,647 56,282 792,068 389,817 35,647 56,282 4,543,871 389,817 (1) Generally, the company withholds shares to cover the income tax withholdings of the employee upon vesting. These shares are not part of the board approved Share Repurchase Program . |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings per Common Share | |
Earnings per Common Share | Note 10. Earnings per Common Share Basic earnings or loss per share attributable to the Company’s common stockholders is computed by dividing net income 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, 2023 because the Company incurred a net loss and the effect of inclusion would have been anti-dilutive. Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 (in millions, except share data) Net (loss) income $ (104.5) $ 0.5 $ (244.2) $ 10.2 Basic weighted-average shares 80,888,537 84,274,050 81,797,740 83,908,691 Effect of dilutive securities: Restricted stock awards — 2,461,196 — 2,763,184 Diluted weighted-average shares 80,888,537 86,735,246 81,797,740 86,671,875 Basic and diluted (loss) earnings per common share Basic $ (1.29) $ 0.01 $ (2.99) $ 0.12 Diluted $ (1.29) $ 0.01 $ (2.99) $ 0.12 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, 2023, the Company determined the performance conditions were not yet achieved; however, the market conditions indicated a certain level of achievement within the payout range. Therefore, the contingently issuable performance shares associated with the market condition are included in the computation of diluted earnings per share, if they have a dilutive effect on earnings per share. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | Note 11. 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 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 $702.9 million and $699.2 million as of September 30, 2023 and December 31, 2022, 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, 2023 and December 31, 2022. 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
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 benefit of $35.6 million and income tax expense of $0.4 million for the three months ended September 30, 2023 and 2022, respectively, and income tax benefit of $84.4 million and income tax expense of $4.5 million for the nine months ended September 30, 2023 and 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 13. Commitments and Contingencies On March 7, 2018, Sprint Communications Company LP (“Sprint”) filed a complaint in the U.S. District Court for the District of Delaware alleging that the Company infringed a set of patents directed to the provision of Voice over Internet Protocol services. This lawsuit was part of a larger, decade long patent enforcement campaign by Sprint aimed at numerous service providers in the broadband and telecommunications industry. In April 2023, prior to the commencement of the Company’s jury trial on April 24, 2023, the Company and Sprint entered into settlement discussions and also conducted a formal mediation. Those discussions culminated in a negotiated resolution of the pending litigation, for which the parties executed a binding term sheet on April 19, 2023, and a Confidential Settlement and License Agreement on April 28, 2023. The terms of the settlement are confidential, but the agreement does obligate the Company to make payments to Sprint over the course of three years in exchange for a full release of all liability. The Company intends to pursue funding contributions for that settlement from third parties implicated by Sprint’s claims and the Company’s defense, including indemnification claims against the Company’s various affected equipment providers. As a result of the settlement, the Company accrued $46.8 million as of March 31, 2023, and the associated expense is included in selling, general and administrative expenses. The Company does not believe that the settlement will have a material impact on the Company’s capital expenditures. The Company is also 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, 2023 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | 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 2022 Annual Report filed with the SEC on February 27, 2023. 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. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contracts with Customers | |
Schedule of revenue by service offering | Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 (in millions) Residential subscription HSD $ 90.8 $ 84.2 $ 265.6 $ 251.1 Video 36.1 42.4 114.0 132.8 Telephony 5.2 6.1 16.3 18.5 Total residential subscription $ 132.1 $ 132.7 $ 395.9 $ 402.4 Business subscription HSD $ 19.0 $ 18.1 $ 56.1 $ 53.9 Video 2.8 2.9 8.6 8.8 Telephony 6.4 6.7 19.5 20.5 Total business subscription $ 28.2 $ 27.7 $ 84.2 $ 83.2 Total subscription services revenue 160.3 160.4 480.1 485.6 Other business services revenue(1) 5.4 5.4 15.7 16.1 Other revenue 7.4 7.9 22.1 22.7 Total revenue $ 173.1 $ 173.7 $ 517.9 $ 524.4 (1) I ncludes wholesale and colocation lease revenue of $5.0 million and $4.8 million for the three months ended September 30, 2023 and 2022, respectively and $14.6 million and $14.4 million for the nine months ended September 30, 2023 and 2022, 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, 2023 2022 2023 2022 (in millions) Balance at beginning of period $ 40.8 $ 38.2 $ 39.5 $ 37.3 Deferral 4.8 4.6 14.1 12.4 Amortization (4.1) (3.7) (12.1) (10.6) Balance at end of period $ 41.5 $ 39.1 $ 41.5 $ 39.1 September 30, 2023 December 31, 2022 (in millions) Current costs of obtaining contracts with customers $ 16.3 $ 15.6 Non-current costs of obtaining contracts with customers 25.2 23.9 Total costs of obtaining contracts with customers $ 41.5 $ 39.5 |
Schedule of activity of contract liabilities and current and non-current contract liabilities | Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 (in millions) Balance at beginning of period $ 2.5 $ 2.9 $ 2.7 $ 3.3 Deferral 2.8 2.9 8.0 9.1 Revenue recognized (2.8) (3.0) (8.2) (9.6) Balance at end of period $ 2.5 $ 2.8 $ 2.5 $ 2.8 September 30, 2023 December 31, 2022 (in millions) Current contract liabilities $ 2.2 $ 2.4 Non-current contract liabilities 0.3 0.3 Total contract liabilities $ 2.5 $ 2.7 |
Summary of expected revenue to be recognized in future periods related to performance obligations which have not been satisfied or are partially unsatisfied | 2023 2024 2025 Thereafter Total (in millions) Subscription services $ 15.8 $ 46.9 $ 26.2 $ 11.0 $ 99.9 Other business services 0.8 2.5 1.0 0.4 4.7 Total expected revenue $ 16.6 $ 49.4 $ 27.2 $ 11.4 $ 104.6 |
Schedule of change in the allowance for doubtful accounts for trade accounts receivable | Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 (in millions) Balance at beginning of period $ 5.9 $ 2.4 $ 4.3 $ 4.3 Provision charged to expense(1) 3.0 2.0 8.5 2.7 Accounts written off, net of recoveries (2.2) (1.0) (6.1) (3.6) Balance at end of period $ 6.7 $ 3.4 $ 6.7 $ 3.4 (1) During the three and nine months ended September 30, 2022, the Company released nil and $1.6 million of reserves established in 2020 related to COVID-19. |
Plant, Property and Equipment_2
Plant, Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Plant, Property and Equipment, Net | |
Schedule of plant, property and equipment | September 30, December 31, 2023 2022 (in millions) Distribution facilities $ 1,446.8 $ 1,341.1 Customer premise equipment 272.3 272.3 Head-end equipment 287.1 256.7 Computer equipment and software 174.4 156.4 Telephony infrastructure 48.0 52.4 Buildings and leasehold improvements 33.2 33.4 Vehicles 25.2 22.9 Office and technical equipment 18.9 19.1 Land 4.4 4.4 Construction in progress (including material inventory and other) 69.6 43.5 Total property, plant and equipment 2,379.9 2,202.2 Less accumulated depreciation (1,592.6) (1,476.4) $ 787.3 $ 725.8 |
Franchising Operating Rights _2
Franchising Operating Rights and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Franchising Operating Rights and Goodwill | |
Schedule of changes in the carrying amounts of franchise operating rights | Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 (in millions) Franchise Operating Rights Balance at beginning of period $ 457.0 $ 620.1 $ 585.1 $ 620.1 Impairment charge (131.7) — (259.8) — Balance at end of period $ 325.3 $ 620.1 $ 325.3 $ 620.1 Goodwill Balance at beginning of period $ 225.1 $ 225.1 $ 225.1 $ 225.1 Impairment charge — — — — Balance at end of period $ 225.1 $ 225.1 $ 225.1 $ 225.1 |
Schedule of changes in the carrying amounts of goodwill | Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 (in millions) Franchise Operating Rights Balance at beginning of period $ 457.0 $ 620.1 $ 585.1 $ 620.1 Impairment charge (131.7) — (259.8) — Balance at end of period $ 325.3 $ 620.1 $ 325.3 $ 620.1 Goodwill Balance at beginning of period $ 225.1 $ 225.1 $ 225.1 $ 225.1 Impairment charge — — — — Balance at end of period $ 225.1 $ 225.1 $ 225.1 $ 225.1 |
Schedule of impairment charges recognized in each market | September 30, 2023 Three month ended Nine months ended (in millions) Columbus, GA $ 35.4 $ 39.1 Huntsville, AL 21.5 81.5 Augusta, GA 20.5 44.9 Montgomery, AL 20.0 33.0 Charleston, SC 12.5 12.5 Panama City, FL 9.5 23.0 Valley, AL 6.5 10.5 Knoxville, TN 5.8 5.8 Newnan, GA - 9.5 Total $ 131.7 $ 259.8 |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Liabilities and Other | |
Schedule of accrued liabilities and other | September 30, December 31, 2023 2022 (in millions) Payroll and employee benefits $ 17.3 $ 22.2 Programming costs 12.3 15.9 Patent litigation settlement 9.8 1.3 Other accrued liabilities 8.6 8.6 Restructuring related to employee severance 6.0 4.1 Franchise and revenue sharing fees 4.8 5.6 Customer cash collections (Transition Services Agreements) 3.6 3.6 Property, income, sales and use taxes 3.4 5.8 Utility pole costs 2.0 1.6 $ 67.8 $ 68.7 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Long-Term Debt and Finance Leases | |
Summary of long-term debt and finance lease obligations | December 31, September 30, 2023 2022 Available borrowing Effective Outstanding Outstanding capacity interest rate(1) balance balance (in millions) Long-term debt: Term B Loans, net(2) $ — 8.39 % $ 712.9 $ 717.7 Revolving Credit Facility(3) 86.4 8.13 % 159.0 9.0 Total long-term debt $ 86.4 871.9 726.7 Finance lease obligations 21.2 20.6 Total long-term debt and finance lease obligations 893.1 747.3 Debt issuance costs, net(4) (4.0) (4.6) Sub-total 889.1 742.7 Less current portion (17.2) (17.7) Long-term portion $ 871.9 $ 725.0 (1) Represents the effective interest rate in effect for all borrowings outstanding as of September 30, 2023 pursuant to each debt instrument including the applicable margin. (2) At September 30, 2023 and December 31, 2022 includes $4.3 million and $5.0 million of net discounts, respectively. (3) Available borrowing capacity at September 30, 2023 represents $250.0 million of total availability less borrowings of $159.0 million on the Revolving Credit Facility and outstanding letters of credit of $4.6 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, 2023 and December 31, 2022 debt issuance costs include $3.1 million and $3.5 million related to Term B Loans and $0.9 million and $1.1 million related to the Revolving Credit Facility, respectively. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stock-Based Compensation | |
Summary of the restricted stock awards activity | The following table presents restricted stock activity during the nine months ended September 30, 2023: Number of Unvested Restricted Stock Shares Outstanding, beginning of period 3,223,995 Granted 2,075,854 Vested (2,283,097) Forfeited (317,453) Outstanding, end of period(1) 2,699,299 (1) The total outstanding non-vested shares of restricted stock awards granted to employees and directors are included in total outstanding shares as of September 30, 2023. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity | |
Summary of repurchases of common stock | Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 (shares) Share buybacks — — 3,751,803 — Income tax withholding(1) 35,647 56,282 792,068 389,817 35,647 56,282 4,543,871 389,817 (1) Generally, the company withholds shares to cover the income tax withholdings of the employee upon vesting. These shares are not part of the board approved Share Repurchase Program . |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings per Common Share | |
Schedule of computation of income per share | Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 (in millions, except share data) Net (loss) income $ (104.5) $ 0.5 $ (244.2) $ 10.2 Basic weighted-average shares 80,888,537 84,274,050 81,797,740 83,908,691 Effect of dilutive securities: Restricted stock awards — 2,461,196 — 2,763,184 Diluted weighted-average shares 80,888,537 86,735,246 81,797,740 86,671,875 Basic and diluted (loss) earnings per common share Basic $ (1.29) $ 0.01 $ (2.99) $ 0.12 Diluted $ (1.29) $ 0.01 $ (2.99) $ 0.12 |
General Information - Markets a
General Information - Markets and segments (Details) | 9 Months Ended |
Sep. 30, 2023 item segment | |
General Information | |
Number of markets | item | 15 |
Number of Reportable Segments | segment | 1 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from Contracts with Customers | ||||
Total revenue | $ 173.1 | $ 173.7 | $ 517.9 | $ 524.4 |
Subscription services | ||||
Revenue from Contracts with Customers | ||||
Revenue | 160.3 | 160.4 | 480.1 | 485.6 |
Other business services | ||||
Revenue from Contracts with Customers | ||||
Revenue | 5.4 | 5.4 | 15.7 | 16.1 |
Other business services - Wholesale and colocation lease revenue | ||||
Revenue from Contracts with Customers | ||||
Revenue | 5 | 4.8 | 14.6 | 14.4 |
Other revenue | ||||
Revenue from Contracts with Customers | ||||
Other revenue | 7.4 | 7.9 | 22.1 | 22.7 |
Residential Subscription | Subscription services | ||||
Revenue from Contracts with Customers | ||||
Revenue | 132.1 | 132.7 | 395.9 | 402.4 |
Residential Subscription | HSD | ||||
Revenue from Contracts with Customers | ||||
Revenue | 90.8 | 84.2 | 265.6 | 251.1 |
Residential Subscription | Video | ||||
Revenue from Contracts with Customers | ||||
Revenue | 36.1 | 42.4 | 114 | 132.8 |
Residential Subscription | Telephony | ||||
Revenue from Contracts with Customers | ||||
Revenue | 5.2 | 6.1 | 16.3 | 18.5 |
Business Subscription | Subscription services | ||||
Revenue from Contracts with Customers | ||||
Revenue | 28.2 | 27.7 | 84.2 | 83.2 |
Business Subscription | HSD | ||||
Revenue from Contracts with Customers | ||||
Revenue | 19 | 18.1 | 56.1 | 53.9 |
Business Subscription | Video | ||||
Revenue from Contracts with Customers | ||||
Revenue | 2.8 | 2.9 | 8.6 | 8.8 |
Business Subscription | Telephony | ||||
Revenue from Contracts with Customers | ||||
Revenue | $ 6.4 | $ 6.7 | $ 19.5 | $ 20.5 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue from Contracts with Customers | |||||
Capitalized contract cost, Beginning of period | $ 40.8 | $ 38.2 | $ 39.5 | $ 37.3 | |
Deferral | 4.8 | 4.6 | 14.1 | 12.4 | |
Amortization | (4.1) | (3.7) | (12.1) | (10.6) | |
Capitalized contract cost, End of period | 41.5 | 39.1 | 41.5 | 39.1 | |
Current costs of obtaining contracts with customers | 16.3 | 16.3 | $ 15.6 | ||
Non-current costs of obtaining contracts with customers | 25.2 | 25.2 | 23.9 | ||
Total costs of obtaining contracts with customers | $ 41.5 | $ 39.1 | $ 41.5 | $ 39.1 | $ 39.5 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue from Contracts with Customers | |||||
Contract liability, Beginning of period | $ 2.5 | $ 2.9 | $ 2.7 | $ 3.3 | |
Deferral | 2.8 | 2.9 | 8 | 9.1 | |
Revenue recognized | (2.8) | (3) | (8.2) | (9.6) | |
Contract liability, End of period | 2.5 | 2.8 | 2.5 | 2.8 | |
Current contract liabilities | 2.2 | 2.2 | $ 2.4 | ||
Non-current contract liabilities | 0.3 | 0.3 | 0.3 | ||
Total contract liabilities | $ 2.5 | $ 2.8 | $ 2.5 | $ 2.8 | $ 2.7 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Unsatisfied Performance Obligations Amount (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Business subscription services and other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 104.6 |
Business subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 99.9 |
Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 4.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Residential Subscription | Maximum | |
Unsatisfied Performance Obligations | |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Business subscription services and other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 16.6 |
Expected period to recognize revenue of remaining performance obligations | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Business subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 15.8 |
Expected period to recognize revenue of remaining performance obligations | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | 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]: 2024-01-01 | Business subscription services and other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 49.4 |
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 | Business subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 46.9 |
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 | $ 2.5 |
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 | Business subscription services and other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 27.2 |
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 | Business subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 26.2 |
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 | Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 1 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Business subscription services and other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 11.4 |
Expected period to recognize revenue of remaining performance obligations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Business subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 11 |
Expected period to recognize revenue of remaining performance obligations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 0.4 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from Contracts with Customers | ||||
Period of delinquency after which Company disconnects services to customers | 100 days | |||
Change in the allowance for doubtful accounts | ||||
Balance at beginning of period | $ 5.9 | $ 2.4 | $ 4.3 | $ 4.3 |
Provision charged to expense | 3 | 2 | 8.5 | 2.7 |
Accounts written off, net of recoveries | (2.2) | (1) | (6.1) | (3.6) |
Balance at end of period | $ 6.7 | 3.4 | $ 6.7 | 3.4 |
Amount released from reserve related to COVID-19 | $ 0 | $ 1.6 |
Plant, Property and Equipment_3
Plant, Property and Equipment, Net - Components (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Plant, Property and Equipment, Net | |||||
Total property, plant and equipment | $ 2,379.9 | $ 2,379.9 | $ 2,202.2 | ||
Less accumulated depreciation | (1,592.6) | (1,592.6) | (1,476.4) | ||
Plant, Property and Equipment, Net | 787.3 | 787.3 | 725.8 | ||
Depreciation expense | 48.9 | $ 44.9 | 141.1 | $ 133.7 | |
Losses (gains) on sale of operating assets, net | 0.4 | $ 0 | 0.3 | $ (1) | |
Distribution facilities | |||||
Plant, Property and Equipment, Net | |||||
Total property, plant and equipment | 1,446.8 | 1,446.8 | 1,341.1 | ||
Customer premise equipment | |||||
Plant, Property and Equipment, Net | |||||
Total property, plant and equipment | 272.3 | 272.3 | 272.3 | ||
Head-end equipment | |||||
Plant, Property and Equipment, Net | |||||
Total property, plant and equipment | 287.1 | 287.1 | 256.7 | ||
Computer equipment and software | |||||
Plant, Property and Equipment, Net | |||||
Total property, plant and equipment | 174.4 | 174.4 | 156.4 | ||
Telephony infrastructure | |||||
Plant, Property and Equipment, Net | |||||
Total property, plant and equipment | 48 | 48 | 52.4 | ||
Buildings and leasehold improvements | |||||
Plant, Property and Equipment, Net | |||||
Total property, plant and equipment | 33.2 | 33.2 | 33.4 | ||
Vehicles | |||||
Plant, Property and Equipment, Net | |||||
Total property, plant and equipment | 25.2 | 25.2 | 22.9 | ||
Office and technical equipment | |||||
Plant, Property and Equipment, Net | |||||
Total property, plant and equipment | 18.9 | 18.9 | 19.1 | ||
Land | |||||
Plant, Property and Equipment, Net | |||||
Total property, plant and equipment | 4.4 | 4.4 | 4.4 | ||
Construction in progress (including material inventory and other) | |||||
Plant, Property and Equipment, Net | |||||
Total property, plant and equipment | $ 69.6 | $ 69.6 | $ 43.5 |
Franchising Operating Rights _3
Franchising Operating Rights and Goodwill - Roll forward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Franchise Operating Rights | ||||
Balance at beginning of period | $ 457 | $ 620.1 | $ 585.1 | $ 620.1 |
Impairment charge | (131.7) | (259.8) | ||
Balance at end of period | 325.3 | 620.1 | 325.3 | 620.1 |
Goodwill | ||||
Balance at beginning of period | 225.1 | 225.1 | 225.1 | 225.1 |
Impairment charge | 0 | 0 | ||
Balance at end of period | $ 225.1 | $ 225.1 | $ 225.1 | $ 225.1 |
Franchising Operating Rights _4
Franchising Operating Rights and Goodwill - Impairment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Franchise operating rights | ||||
Impairment of franchise operating rights | $ 131.7 | $ 259.8 | ||
Goodwill | ||||
Impairment of goodwill | 0 | 0 | ||
Columbus, GA | ||||
Franchise operating rights | ||||
Impairment of franchise operating rights | 35.4 | 39.1 | ||
Huntsville, AL | ||||
Franchise operating rights | ||||
Impairment of franchise operating rights | 21.5 | 81.5 | ||
Augusta, GA | ||||
Franchise operating rights | ||||
Impairment of franchise operating rights | 20.5 | 44.9 | ||
Montgomery, AL | ||||
Franchise operating rights | ||||
Impairment of franchise operating rights | 20 | 33 | ||
Charleston, SC | ||||
Franchise operating rights | ||||
Impairment of franchise operating rights | 12.5 | 12.5 | ||
Panama City, FL | ||||
Franchise operating rights | ||||
Impairment of franchise operating rights | 9.5 | 23 | ||
Valley, AL | ||||
Franchise operating rights | ||||
Impairment of franchise operating rights | 6.5 | 10.5 | ||
Knoxville, TN | ||||
Franchise operating rights | ||||
Impairment of franchise operating rights | $ 5.8 | 5.8 | ||
Newnan, GA | ||||
Franchise operating rights | ||||
Impairment of franchise operating rights | $ 9.5 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accrued Liabilities and Other | ||
Payroll and employee benefits | $ 17.3 | $ 22.2 |
Programming costs | 12.3 | 15.9 |
Patent litigation settlement | 9.8 | 1.3 |
Other accrued liabilities | 8.6 | 8.6 |
Restructuring related to employee severance | 6 | 4.1 |
Franchise and revenue sharing fees | 4.8 | 5.6 |
Customer cash collections (Transition Services Agreements) | 3.6 | 3.6 |
Property, income, sales and use taxes | 3.4 | 5.8 |
Utility pole costs | 2 | 1.6 |
Accrued liabilities and other | $ 67.8 | $ 68.7 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Leases - Summary (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 20, 2021 |
Long-Term Debt and Capital Leases | |||
Available borrowing capacity | $ 86.4 | ||
Long-term debt | 871.9 | $ 726.7 | |
Finance lease obligations | $ 21.2 | $ 20.6 | |
Finance Lease, Liability, Statement of Financial Position | Long-term portion, Less current portion | Long-term portion, Less current portion | |
Total long-term debt and finance lease obligations | $ 893.1 | $ 747.3 | |
Debt issuance costs, net | (4) | (4.6) | |
Sub-total | 889.1 | 742.7 | |
Less current portion | (17.2) | (17.7) | |
Long-term portion | $ 871.9 | 725 | |
Term B Loans | |||
Long-Term Debt and Capital Leases | |||
Effective interest rate (as a percent) | 8.39% | ||
Long-term debt | $ 712.9 | 717.7 | |
Debt issuance costs, net | (3.1) | (3.5) | |
Net discount | 4.3 | 5 | |
Revolving Credit Facility | |||
Long-Term Debt and Capital Leases | |||
Available borrowing capacity | $ 86.4 | ||
Effective interest rate (as a percent) | 8.13% | ||
Long-term debt | $ 159 | 9 | |
Debt issuance costs, net | (0.9) | $ (1.1) | |
Maximum borrowing capacity | 250 | $ 250 | |
Outstanding letters of credit | $ 4.6 |
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. 20, 2021 | Sep. 30, 2023 |
Term B Loans | ||
Long-Term Debt and Capital Leases | ||
Debt issued | $ 730 | |
Floor rate (as a percent) | 0.50% | |
Term B Loans | SOFR | ||
Long-Term Debt and Capital Leases | ||
Spread on variable rate (as a percent) | 3% | |
Revolving Credit Facility | ||
Long-Term Debt and Capital Leases | ||
Maximum borrowing capacity | $ 250 | $ 250 |
Commitment fee rate for unused commitments (as a percent) | 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) | 9 Months Ended |
Sep. 30, 2023 shares | |
Stock Based Compensation | |
Number of authorized shares | 15,924,128 |
Restricted stock awards | |
Stock Based Compensation | |
Vesting period | 4 years |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock-Based Compensation | ||||
Non-cash compensation expense | $ 3.5 | $ 6.4 | $ 13.9 | $ 18.5 |
Amount of liability settled with shares of stock | 0.3 | |||
Modified awards classified as liabilities | ||||
Stock-Based Compensation | ||||
Non-cash compensation expense | $ 0 | $ 0.5 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted stock awards | 9 Months Ended |
Sep. 30, 2023 shares | |
Restricted Stock Awards | |
Outstanding, beginning of period (in shares) | 3,223,995 |
Granted (in shares) | 2,075,854 |
Vested (in shares) | (2,283,097) |
Forfeited (in shares) | (317,453) |
Outstanding, end of period (in shares) | 2,699,299 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares (Details) - Performance shares | Mar. 03, 2023 $ / shares shares |
Stock Based Compensation | |
Granted (in shares) | shares | 264,028 |
Share-based Payment Arrangement, Tranche One, TSR | |
Stock Based Compensation | |
Vesting (as a percent) | 50% |
Grant date fair value (in dollars per share) | $ / shares | $ 16.19 |
Fair value assumptions | |
Risk-free interest rate (as a percent) | 4.62% |
Expected volatility (as a percent) | 51.61% |
Expected life | 3 years |
Share-based Payment Arrangement, Tranche Two, EBITDA metric | |
Stock Based Compensation | |
Vesting (as a percent) | 50% |
Vesting period | 3 years |
Minimum | |
Stock Based Compensation | |
Percentage of target shares that may be earned upon achievement of threshold performance metric | 50% |
Maximum | |
Stock Based Compensation | |
Percentage of target shares that may be earned upon achievement of threshold performance metric | 200% |
Equity - Share Repurchase Plan
Equity - Share Repurchase Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Oct. 04, 2022 | |
Share Repurchase Program | ||||||
Common Stock | ||||||
Common stock repurchase authorized amount (in dollars) | $ 50 | |||||
Treasury Stock at Cost | ||||||
Common Stock | ||||||
Income tax withholding (in shares) | 35,647 | 56,282 | 792,068 | 389,817 | ||
Share buybacks and income tax withholding (in shares) | 35,647 | 56,282 | 4,543,871 | 389,817 | ||
Treasury Stock at Cost | Share Repurchase Program | ||||||
Common Stock | ||||||
Purchase of shares (in dollars) | $ 50.4 | |||||
Share buybacks (in shares) | 3,751,803 | 4,900,000 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings per Common Share | ||||
Net (loss) income, basic | $ (104.5) | $ 0.5 | $ (244.2) | $ 10.2 |
Net (loss) income, diluted | $ (104.5) | $ 0.5 | $ (244.2) | $ 10.2 |
Basic weighted-average shares | 80,888,537 | 84,274,050 | 81,797,740 | 83,908,691 |
Effect of dilutive securities | ||||
Restricted stock awards | 2,461,196 | 2,763,184 | ||
Diluted weighted-average shares | 80,888,537 | 86,735,246 | 81,797,740 | 86,671,875 |
Basic and diluted (loss) earnings per common share | ||||
Basic (in dollars per share) | $ (1.29) | $ 0.01 | $ (2.99) | $ 0.12 |
Diluted (in dollars per share) | $ (1.29) | $ 0.01 | $ (2.99) | $ 0.12 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
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 | $ 702.9 | $ 699.2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Taxes | ||||
Income tax benefit (expense) | $ 35.6 | $ (0.4) | $ 84.4 | $ (4.5) |
Commitments and Contingencies -
Commitments and Contingencies - Legal (Details) - Sprint Patent Infringement Claim - USD ($) $ in Millions | Apr. 28, 2023 | Mar. 31, 2023 |
Commitments and contingencies | ||
Settlement payment period | 3 years | |
Amount accrued as result of settlement | $ 46.8 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net Income (Loss) | $ (104.5) | $ (101.7) | $ (38) | $ 0.5 | $ 4 | $ 5.7 | $ (244.2) | $ 10.2 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |