WOW - Earnings call transcript Q4 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the Fourth Quarter and Year End 2018 WideOpenWest, Inc. Earnings Conference Call.

As a reminder, I want to advise everyone that this call is being recorded. At this time, I would like to turn the call over to Mr. Lucas Binder, WOW!'s Vice President, Corporate Development and Investor Relations. Mr. ahead, go Please Binder.

Lucas Binder

Officer; Good quarter and earnings and is Chief me Jack. Financial WOW!'s joining Officer. call. you our today Executive WOW!'s Elder, fourth year Teresa Rich morning, you, Fish, thank Chief everyone, for With and Thank end XXXX

implied started, are to matters our harbor results, provisions results, statements Securities that Laws we and subject those performance These in we are in may and unknown that other call and to the remind business or materially position during the factors safe financial and forward-looking risks, our operating of get the be Before make our forward-looking other operating some Federal to from expected everyone to reliance known on statements. our actual relating business. will made or cause forward-looking our different we need statements uncertainties expressed about strategy

reliance any statements. forward-looking not are such statements. place forward-looking such on update disclaim undue We to You to cautioned obligation

that morning. to For refer cause section XX-K from the please additional statements, Risk information concerning including the our forward-looking the this differ filed could affect results SEC, our to actual SEC Factors financial filings materially with or our of results our with factors

subscription adjusted capital acquisitions In revenue, EBITDA; adjusted expenditures; including earnings measures. subscription to residential share; adjusted and certain acquisitions acquisitions adjusted note Such including services in non-GAAP and dispositions; earnings business flow. cash including measures in addition, revenue, adjusted and please per release, EBITDA; today's dispositions; transaction transaction call and financial that dispositions; our we refer and free include, diluted transaction revenue,

With expenditures be presentation total investors, is intended measures not including reported this the a provide measures. company revenue Michael, reconciled discussed we adjusted These and the to earnings schedule Panama impact believes the Florida our City, ir.wowway.com. that capital While capital trending isolation. on and release GAAP in which our to information measures release comparable non-GAAP revenue to impact EBITDA results total means our references include adjusted financial acquisitions, website transaction the from to in of considered noted, dispositions, at are non-GAAP call included and impact useful for reconciliation information Michael. and the and adjusted market, these Hurricane regard impact exclude of and to from transaction hit result most adjusted available otherwise our at results, from the to have to EBITDA on impact and transaction this Unless adjusted exclude metrics earnings the to in subscriber acquisitions Hurricane expenditures, dispositions, the

turn Now, over call Teresa. I'll the to

Teresa Elder

thank and Lucas, Thanks, you, today's everyone, call. joining for

As to we were By and a transformation knew care, on investments need adding entered in invest was an all that have throughout impact in initiatives and had focused XXXX, there year. the headcount digital customer We transformation. in sales the business. marketing we

of high-speed quarter HSD grew organic best turn in in fourth RGUs organic in year, We which at HSD growth our generating In investments, the efficiencies Our seen least network. our years. to decline, New drove the of milestone RGU and scores quarter net in four data revenue culminating unit this satisfaction each XXXX scores, of set the volumes Year. in XX,XXX and promoter net XX,XXX, over an helped in in We customer into first operator X,XXX, of improvement X full operational have churn, or throughout of realize over heading being gig improve which subscribers have RGU We in addition we achieved HSD to a trouble customer us substantially records XX% to customer additions subscriber total net growth improvement employee positions XXXX, XXX% XXXX year experience addition. we grew XX,XXX. call and by organic

get back heading adjusted XXXX, EBITDA in Our our transaction we transaction we into would quarter In lowering transaction fourth over to adjusted by of XXXX. with year guidance XXXX, knowledge effect to throughout grew EBITDA XXXX. in deploy investments to our forward. EBITDA for growth and adjusted X.X% the the improvements that and year have We continue will will expect we drive meeting going the started these connects XXXX to product of grow offerings, re-launched the wowway.com The efforts compound from continue both year, to Whole-Home XXXX. in half benefits started Wi-Fi that to second make in and

of addition callback in the expecting to and field the are and further efficient, organizations we features drive isolated, interactive organization. flow voice when with benefits care care These all the of response Additionally, text, more are is improved dispatch, support not the efficiencies chat efficiencies benefit.

all of Another Nation. of won highlight since was our For time our progress I first Best award speaks marks in the of the WOW! Brightest winner This Companies of XXXX. efforts Work investment time the employees. WOW! the not to recently fifth a the has named in have year, at and around people. XXXX the be to end we more of this the the made proud and could

in WOW! is toward heard time. we people you throughout build the move keep drive being you. while and reliable, easy as surprising define did our reps, experience, efforts year, on and ready the which we added have our As to we RGUs. In X,XXX In to reliable, fit, XXXX, world pleasantly we the doing reps their and easy quarter, get connecting reflected vision, being or HSD delight we to fourth every always now last consistency through the our

fourth organic fourth the Importantly, quarter additions RGU positive the for quarter RGU were X,XXX, consecutive of HSD HSD organic addition. net net

X.X% of year at XX% start represents a provided And XXXX. additions this above XX,XXX we a of added the RGUs net XX.X% full year. increase in over increase XXXX the and the For we the high-end RGUs, total HSD year, range guidance in HSD over

were the years. and our for and at year best Additionally, subscriber quarter fourth quarter year in churn the least subscriber full churn fourth XXXX full results two

subscription and Fourth dispositions acquisitions quarter fourth last year in revenue subscription X,XXX. XX% years. in growth fourth XXXX best During year-over-year, business grew services total grew representing the services the acquisitions quarter Full XX.X% quarter of consecutive result The versus four XXXX, we including and including business this grew digit our segment. dispositions revenue XXXX. XXXX ninth of by double subscribers quarter

Our Edge-Outs through nodes our the December XX, growth Edge-Out reached ramping network well for of remains achieved continue our to XX.X% As XXXX, unique XX.X% a XXXX extend Edge-Out nodes opportunity WOW! a ability And XXXX and penetration. penetration.

more passed penetration in So our Edge-Out an XX.X% the far this by expanded achieved days year, XX,XXX have nodes and our of XXXX average XXX after market. homes than

full flow. For generated WOW! cash transaction free adjusted year, the million $XX.X in

was we and first saw capital start interest cash positive attributable as of flow in year-over-year transaction than expense expenditures, cash expected the the our adjusted higher $XX.X While guidance of adjusted improvement transaction was largely of below promised, we flow. this provided at was And XXXX, free year to free million. this which

churn, I people As on EBITDA our and drove mentioned, customer investment executed in which we our for RGU and XXXX customers, year. adjusted in-line outperformance plans transaction growth HSD through the for

we So XXXX satisfaction much is our of retention engagement. efforts have success and customer driven employee steps to of and the experienced satisfaction through improve employees by around we've the the the taken and

moves procedures from productivity area never a of time. has But into Georgia Georgia improvements for these care place We're some right we and basis, employees. happy drive the to we benefits. Augusta, with through Springs also Additionally, able call WOW! lower efficient our separate the our Chicago impact Point, in location. call a and to and cost allowed of structure, Colorado fewer rationalize to organization has in-market to WOW! and This redeploying year-over-year capture more We're materialized been while bad of on the resources West business in volume reduce operational the continued facilities XXXX. out business. and the The know allow productivity rolls volumes outsource in to truck and organization lower balancing have these are

in greater results in are pleasing. marketing XXXX. and been as improvements and of to investments impact not these in the since continue efficient drive could and months continue be investments now spend look wowway.com, more Our the re-launch than It's we six to more more

We percentage to this have see greater channel. come of connects a continued through

XXXX, also self-care, notification of drive such to overall report WOW! early The two occurred saw earlier increase. its increase experience, and lower and more functionality rate enhancements too features our will will months February but customer churn adding calls. other and XXXX fewer to better are experience the with as benefits on in implement better contribute and We annual still results, greater rate uptake. aligning calls. The than on we proactive to details annual increases. a to It's future cost sharing forward programming look

market responders, our and in running how execution by the I are family transaction who able We hit across be we delivering customer by texts specifics respect earnings Panama back on commented, possible WOW! which pressure, and it kind EBITDA with team, bring so grateful of We the on One will This quarter. work From nimble our as our months reconnect to last a were and and do able making end more community we gestures the under while do the call, perspective, we back overwhelmingly with for positive. appreciate execute be The of X one service. important their Florida. and teams, many has customers all comments been resilience. the connect the provide storm. as business feedback have enabled are up subscriber people all leaders, impact. of We less and market. our service financial for the in after majority closely the from their than to of community are XXXX, they And growth smaller and jobs As responder the community to not on by community. great Hurricane first of the customers and provide the equally Rich business in of our WOW! and the and inspired discussed was proud were also could first markets bring example City, adjusted the to a to because in are to the Michael vast the customers teams friends. from work our our

to growth to continuation in of and transaction to be the a trends in continue adjusted inflection precisely with will of XXXX. trends, continued XXXX We returning and to growth its leading return our transaction HSD HSD growth adjusted growing in and XXXX EBITDA. fourth improving a subscribers, on revenue and RGUs will We a in focus expect executed in organic EBITDA. WOW! year quarter

on our you. to sharing We have the an and successes forward look XXXX, of build of progress all with to opportunity

Now, I'll turn it over to Rich.

Richard Fish

Teresa. Thanks,

or not adjusted free or I from during some transaction that XXXX. interest and for XXXX. business. transaction a operating them more of company's indicative made of filing have non-cash impact have this statements The indicating which not Please filed were may the a the only our net utilize as calculating the to of occurred cash not expense, carry-forwards do that this cash goodwill. These such performance as have, years of noted XXXX flows, we of the certain loss to you SEC calculations. tax an and being in way an any our impact available restated our details. complex, in that transaction, filings tax, tax for on restatements adjusted the we've underlying Furthermore, impacted adjusted restatements morning and an XX-K $XXX we errors in financial share corrections balances, EBITDA, XXXX nor financial deferred other our deferred of leverage impact or highlights, Before result ability X-K million to morning part our revenues is in refer EBITDA, will or that income XXXX liabilities partnership, did The made

XXXX, of acquisitions including As RGU we the successfully high-end reported Teresa EBITDA transaction total and or our while our plans guidance in adjusted and revenue HSD far executed the of midpoint at range for on discussed, above dispositions exceeded guidance. its

basis, XXXX, year reported adjusted per billion, was year-over-year $XX.X of totaled increase full $X.XXX quarters, XXXX transaction was share share totaled growth and in $XXX.X adjusted and five earnings first the the EBITDA representing for revenue adjusted said, diluted million. WOW!. X.X% total net on up Teresa quarter million of for loss we For year $X.XX. million, per Loss EBITDA $X.XX of year-over-year which Fourth return in to EBITDA and transaction a adjusted the a $XXX.X as

cost Transaction XX%. the improvement XXXX. Hurricane in points, range increased XXXX upper million, a full the A as In adjusted for excludes in one-time nature of year guidance our EBITDA which the quarter EBITDA to operating retention, the in structure. margin sequential improved addition, customer inefficiencies Michael impact of half XXX for result over of transaction adjusted basis $XXX.X totaled at of coming of the our gained fourth

fourth subscriber last As the quarter Teresa highlighted the very fourth quarter of was metrics. strong consecutive of year

the best last growth improvement the organic we of of HSD rate XX% fourth of X,XXX Total XXXX. result organic our was X,XXX. included Overall, over HSD of losses as video This RGUs, quarter the as in of RGU added was which which impact years. RGU demonstrated X,XXX net from to in of total fourth improvement is also fourth quarter quarter growth the represents hurricane last quarter X,XXX of RGUs Excluding experienced an subscriber fourth dramatic year. RGU the Similar in year-over-year four or compared of to year years. HSD we've decreased represents transaction this the performance straight adjusted the total an quarter basis, This the video least last RGUs the during growth performance in a organic RGU positive fourth during a at strong with HSD basis. during positive the the Net subscriber total quarter fourth fourth metric the net for grew On of during on trends RGUs RGUs company. total quarter, net XX,XXX quarter X.X% XXXX, representing the fourth for X,XXX in HSD momentum full four by X,XXX the best our HSD subscribers a the increase XXXX. the during

of in and in customers hurricane, HSD includes RGUs, is to the X,XXX release As trending This estimate a RGUs. result approximately loss the outlined of which structures. was earnings we impact impact X,XXX one-time our a X,XXX subscribers

$X.X as million XX.X% services revenue $XX.X $X.X increased in totaled acquisitions million revenue the subscription of and subscription quarter for or a over fourth of the quarter services reported Business services. year. XXXX, fourth increase the business million to X.X%. year-over-year or of quarter, dispositions Turning however, last Business including

XXXX December passed homes result XXX,XXX continues of Edge-Out passed new expectations. to in we started to The below a penetration of XXXX. by XX.X% XX,XXX our nodes extended The during more XXXX have Edge-Out Edge-Out homes in average days an penetration and those that initiative, homes market the of now XX, XX.X%. added our XX,XXX the in passed as than reached XX,XXX had XXXX the of turn have communities. new primarily just of new growth As nodes, added projects. at and have Unexpected penetration. And already Edge-Out of XXX the we homes in date passed, was added started factors the that and we've impacted nodes in end have total the the ramp of for timing achieved the we've permitting with quarter to the delays Edge-Out passed network homes homes up do new fourth of is approvals at getting XXXX Edge-Out a XX.X% of some end in

expect Edge-Outs We've expected, much year. deployment market, of to a In passed took in the as throughout in addition, homes do first restore Panama quarter invest the in to year this City even and of than compared growth efforts resources homes beginning more which last Edge-Out passed. the throughout XXXX however, impacted the to continued, more

Our in for adjusted elements million of has of driver out was you and expansion been to network of as totaled fourth know, Chicago reimbursed the incurred on for the $XXX.X build be $X.X completion are Capital subscribers of project, the key a expenditures investments the Fiber growth a continue Edge-Out million will completed. of quarter and company. be reported in toward that XXXX EBITDA a basis, which final as amount the will

totaled market expenditures which the Transaction totaled the adjusted $X.X million for Michael. restoration $XX.X of $XX.X fourth XXXX strategic included capital toward adjusted quarter of transaction repair million, the Hurricane incurred was capital and million. Panama City addition, following In the expenditures

of revenue Excluding totaled transaction adjusted capital $XX.X XXXX quarter XX.X% million expenditures acquisitions capital strategic investments, those fourth dispositions. or total including and

transaction full adjusted CapEx totaling For included $XXX.X transaction $XX.X year the strategic expenditures million. totaled XXXX which million, capital adjusted

dispositions. including Excluding expenditures acquisitions XX.X% those $XXX.X total of revenue and year capital million transaction CapEx, adjusted strategic totaled XXXX, or full

the expectations. expected million cash increase XXXX, on of expenditures XXXX revolver came Edge-Out of had delays to $XX.X unexpected such with leverage, product, call, we mentioned an timing we buildup the we address capital million capacity. of to higher capital in impact the inventory end support expected Whole-Home of outstanding As in range included that regard for and builds with relocates. government new hand, associated of end and expenditures necessary to than earnings to at above associated the our we requirements be network we high $XXX.X $X.XXX network at forced those the certain billion XXXX the the guidance year Contributors launch on had and undrawn Wi-Fi was capital local debt higher-than-expected third in totaling as With had for liquidity and the quarter our

discussed sequentially reduction on had we that a to basis. December to third a As time at as leverage and on trailing total leverage a XX, peak ended expected in XX-month adjusted we're the to XXXX conference call, pleased we X.XX with XXXX, quarter times transaction improvement see we

forward anticipated XXXX, well adjusted throughout we and of claim on insurance credits EBITDA. One-time $X.X both adjusted to rebuild the million continue The XXX total impacts ended million, of is million of full $X.X Relating the first of the reconciliation release webpage. $XX to the plant impact that over with on EBITDA in quarter XXXX $XX.X XXXX. next our remainder approximately couple as revenue was rebuild completing in City Looking the decline of Hurricane be Panama see costs fourth expect We're coverage year. with and our accelerated during trending the in to for Investor finalize incurred expenses available which Lucas to expected are our to and address as to covering our file of amount to million. in the $X.X for EBITDA of quarter work miles growth network and impact weeks. which for business schedules, just Relations totaling expenditures required the year results, This said to to totaled leverage initial year associated for expect as includes fourth our XXXX. we quarter Michael, capital the incurred with additional earnings provide transaction financial in outlook finally, interruption reconstructed adjusted customer under total our the the And to a

we employee on now marketing improved be those care, mentioned, WOW! and levels, and digital back our can churn growth invest positive look made sales The and across and most conscious and service organic HSD benefits transformation. HSD to Teresa we significant as we measured significantly reduced by in satisfaction RGU As XXXX, decision customer investments the greatly experienced during XXXX. scores RGU customer importantly customer the from

over reported $XX.X the flow prior million, its adjusted of positive of cash an transaction which first also XXXX over was year year. million free of dramatic improvement growth representing $XX.X While

Teresa anticipated growth expected first The implemented between the to customer typically seasonality $X.XXX $X.XXX the uptick in of new for this for off and be transaction As year increase and during between year churn related second and mentioned, highlights the of XXXX that billion year fourth XX,XXX XXXX. positive the in the focus between return had rate are to revenue that is adjusted total the the precise given execution key - quarter. billion. RGU we half expect and quarter quarter weighted and we the EBITDA our HSD that in experienced we second be The to our guidance toward throughout is with successes expect more heavily we XX,XXX we've growth on RGUs XXXX associated in building and the growth, that subscriber

the adjusting Michael. XXXX we totaling adjusted was Hurricane we transaction earlier, EBITDA the million $XXX.X reported $XXX.X for year adjusted million for of As and for impacts discussed EBITDA

X, to XXXX We to be year transaction last we as and we expect quarter which $XX in to to transaction EBITDA first expect to adjusted XXXX. a basis transaction with represent our throughout million, first first programming of XXXX down to adjusted in of quarter sequential into the a adjusted on the the annual be year-over-year XXXX $XXX then the and million return between improve effect quarter expect year. to sequentially growth million of of EBITDA Nevertheless, January to relative for million. approximately result Similar EBITDA growth go $X increases to next $XXX by year, costs,

turn concludes to back call it remarks. open that the to to So our operator the prepared And questions. we'll

Operator

question Your John with from of Instructions] Hodulik [Operator Certainly. first UBS. line comes the

Your line is open.

Batya Levi

color will it's up Maybe has to how Levi, churn of And Do subs, Batya for CapEx, in year Thank clarify adoption build-out questions, how couple magnitude A do the to Edge-Outs, early, on been to about more comments of it's in much expect increase increase you this more provide mentioned versus the a rate the another the far. pick where you XXXX? for of Hi, on allocated but last first-half to still maybe so John. heavily spent little Edge-Out? can your be And then up? And half, can the and you on year? should implemented provide many thereby? just even better? expect be how you in homes we weighted expect color you. you the question churn pick get CapEx will you CapEx bit And second

Teresa Elder

couple questions over of Rich to for Batya. it thanks, first the I'll then turn and take Great, some.

going XXXX churn, when ready. to subscriber be was. did are always, rate the year, that doing of year. level year. a that But of realistic But started think the it our concerns to year On about naturally XXXX that for But more rate our in you're This X. all is, last quarter since it greater increase, we start is we work retain this there increase done good of January We've X. on it's increase. started on to the year we rate that yes, customers first increase than some costs the with rate And hard programming lots February customers. than April Last impacted is year earlier we small of closely feel as we With a of on group about we I doing X communication. aligns a the

on So new Rich, we're you beginning the will the Edge-Outs, to be the want take difference continued the of to year year, working think rate And then, over didn't have a But and until quarter. year I set that? we on certainly second there since do and last increase churn CapEx records quarter-over-quarter.

Richard Fish

Yeah, Sure. Batya, year-over-year think CapEx, at flat. as for when is I guidance look to think relates I spend a we it year basis the on relatively next

to relates to it Edge-Out spend levels similar XXXX that XX,XXX we're would expect that Edge-Outs, say did we new homes As we currently passed in XX,XXX projects. XXXX, would and I between targeting for

Batya Levi

Got it. Thank you.

Operator

comes Your the Riley of with next line from Silver question Zack B. FBR.

open. line Your is

Zack Silver

Okay, for taking great. the question. much Thank very you

be of I may the concerns is around pressured stock that things One recently your leverage. that think

guys I'm this growth think wondering CapEx XXXX. generated versus organic, the And speed kind in balance year. of you sub spending great high on focusing data Edge-Out how on about You deleveraging of

Richard Fish

think I Zack. hey, Yeah, -

Zack Silver

Hey.

Richard Fish

that not on accretive or EBITDA. at for see with opportunity steep investment to those accretive where we penetration The exclusively conversation that get opportunities standpoint, the unbelievable been curve experience able included from relatively we we've and one look we specifically the from the think provide returns projects. highly not significantly but rates, I that penetration projects increase opportunities, them is Edge-Out a to our

been public opportunities best or cash quickest into pretty like feel is that. being yearly still to objective an to we mid-Xs to that leverage to, free our it We and basis. on positive while intent, trajectory we at something maintaining growth on about invest X the and way the to objective de-lever is of has the from to company to look have that status previous do continue a this below accretive continue we accomplish flow the in when we've calls where drive So said like on have,

Zack Silver

discounting driving Rich. high-single-digit, of detail Got is high-speed What you. on growth data to helpful? less it, Any be ARPU that there the like we're ex-hurricane on? would thank that? Is then may or up-sell looks kind - packages some calculating. And higher that were Thank going you, be what

Teresa Elder

terrific first we that up-selling Zack, seeing Yeah. you've as X well, XXX with key most think on footprint we're X come are customers less us Certainly we and two operator of have taking is which well, I so with hit is the think, whether great. the ARPU. our and gig just longer gig yes, helps overall us speeds, that to it's of higher we're to things. as as our and perhaps packages, which on higher staying also have higher packages, that I definitely customer the pricing discounting rationalized and But

Zack Silver

Thank it. you much. Got very

Operator

question next from Yong Amy Your the line with of Macquarie. comes

is line open. Your

Amy Yong

Thank we you. and then, satellite margin for you Teresa, their first, you're think bit seeing on expansion a the two dispute questions, can down and HBO? Should the for in break with comment good Dish a with XXXX? and morning. particularly programming us side, footprint, Thank maybe little efficiencies. Maybe you And it you on landscape talked competitive lot your cable between about operational what about

Teresa Elder

when about compete. about competition, feel there's how Amy. we very we no question about to think Thanks, that. good And Yeah, remains we positioned robust, competition are

being at us to efforts. And that I of value up our So Really, are think two in lowest shows years. compete like we've said, think our pricing had confidence market with and successfully. retention has we we've in also in really our we that allowed I this churn think high-speeds as smart in the having least have I some the nimble

So of have. groups really I between don't we that differentiate know that competitors I the can

past. uptick a in that channel on as buy whether the We we've I offer channels seen us, online to customers continue more it's from customers big as us, reach our think to wowway.com, in easy like to which wasn't

feel how about good the are board, competing the across we I marketplace. So in

continuing are our to calls don't of wait out have our whether it's home we centers the that to much and us. or network to efficiencies, Well, want if stay truck the operational than to. volume of precisely, our more business, don't terms rolls. Customers In execute is call into have reliable for drive they

reasons downsizing So, did definitely year. driving the of part business the of cost out that's actually some earlier we is and yes, that this

Amy Yong

you. Great. Thank

Operator

James of line Ratcliffe with the ISI. from comes question next Your Evercore

open. Your line is

James Ratcliffe

Hi, and XXXX the sort get basis a could. that thanks days like newer for the Can you're expect for much going expectations are be longer do questions. versus penetrations and what vintage secondly, older for same how if mentioned Teresa, home forward? bit back? of the financial running penetration just Rich, taking that just much for And Thanks. I you the exist sub-percentage whatever talk the to business for it some those reason? Edge-Outs and looks vintage it's of lower Or around on for the no about costs might you Teresa your Rich, of than of did. How XXXX's performance the are of one you business One recover a City, Edge-Outs is that interruption. to expecting of you Panama active

Teresa Elder

I'll okay. penetration. to start Yeah, the on jump

rates each we the properties that Edge-Outs we So feel good really penetration about of have. penetrations, the the of of vintages

so, we the underneath they're about doing I we're move tracking there XX%, Certainly, some better. XXXX And quite the feel good do well vintage forward. are And as feeling even like forward. as well but we that, move tracking that is over

don't the versus have I So vintage concerns other. of one

but And good the out. boding build on address penetrations City. I process rigorous where Panama in again, can I think that that's And seeing. how City, then, well guess quite I'm we we we're Rich Panama a have for growth We evaluate, feeling about once

Richard Fish

Sure.

the million impact additional and revenue was if in for the insurance with associated cetera some roughly $X.X million claim XXXX the total on build was of et the the credits impact, the mechanics expenses the in that the $X.X you Just to expedite that related million. to of recall, of $X.X $XXX,XXX EBITDA,

insurance not We've We not the customers, We them. lost believing collect taken under that will have destroyed their mentioned say I to eventually - of out under we them position as coverage the But necessarily coverages certainly, whether as we're the policy X,XXX our had in be those system, be folks able them. not customers really restore billing had of year interruption that they approximately customers. we our Unfortunately, had X,XXX building I won't Those have called will the which business be that there. clearly to indemnity had one extended network or who have of of approximately the a that addition period not the homes guess. a the loss the XXXX. position service. coverage are we expect fiscal provides we following that's to XX-month for in business in that of our we relationships extent they otherwise, in have restoration are for not of to interruption an to in us permanently business period, rebuilding that those We a would and to process we actual something I returned

service, continued to of inside year. X,XXX even will customers insurance billing those the not throughout as that submissions will be we billings insurance this the X,XXX year, customers we with claim group, those be for So carrier associated lost though submitting our

Lucas Binder

one out clarification, to homes just taken as we are James provide And them they the customer. haven't passed, but not far as in

Richard Fish

correct. That's

Lucas Binder

adjustment made. has So, that been

James Ratcliffe

it. Got

Just to sure understand I then make that.

effectively that permanent expect for back So you bounce those looking customer to impacts, XQ? of essentially shouldn't be of be the you that we and in are sort any ones cite RGU

Richard Fish

correct. That's

however, first be the I of least those think of during months that's losing will XX coverage. economics assumption. our at covered, safe as customers a BI The part

James Ratcliffe

Great. Thank you.

Operator

Your KeyBanc line Nispel Markets. next of Capital Brandon the with question from comes

open. is line Your

Brandon Nispel

network gig that maybe now the questions perspective Thanks. one Can And was it enabled I Two increase results at XX% And was going Great, One you leave thank about customer do one you adjusted you can longer-term I themselves Teresa, penetration? Teresa's please. that. a what I timeframe? be on from over talk strategically, EBITDA of yeah, actually I'll Rich, maybe compounding the of transaction X Can then you. think if going think frame forward. for, your could, are footprint. a expect comments you what that comments is to of growth in

Richard Fish

the Okay, tell the you put that I'll it take out longer-term relates first growth as that I would we've not domain. that's one public something percentages. to into

that and respect able I'd certainly the answer Teresa growth. to this question is is, year to a we year not So way would I as be specific inflection think a mentioned, be this with return to is of an year your question. The

for an would consider anomaly, our that we we able be be have we're XXXX in we EBITDA year adjusted if we execute kind right the initiatives, growth plans, that to feel mid-single-digit the comfortable such to repeated. feel ability not guidance being opportunity to our not that to comfortable Our very such of drive suggest make on with that, that XXXX. performance an for improvements inflection it Clearly, as something financial that's describing would be

performance. a a return XXXX the the made a have financial company without year-over-year inflection, of of the of growth were where an like kind to we important that? footing we solid at put the unbelievably year beginning it do investments to multi-period here year, necessary anything year in feel do was on that of So specifics, in trajectory end giving year, of you to you any the was last to Teresa, because

Teresa Elder

Yeah, it's really whole enabled, help as we just also our whatever with they think take commercial network well. is that, provide, and care with to gig their variety able that I of add the to certainly of customers whether needs mean, as them in is a and that in residential the speeds our space to marketplace X I we attracts can need

work our So really the especially is in products and growing that really everything Wi-Fi, customers. new XXXX Things for XXXX. we We're the customers this have network we're means We're doing enable what think for reducing position helping well home. stickier, like are that customers. churn as also I we very is in that Whole-Home just us year mesh

of All contribute and the increase towards that our penetration competitiveness. in will

Brandon Nispel

for could adjusted guidance I quick, follow the Great. Thanks. include up EBITDA any real insurance If reimbursements does Rich, year? for

Richard Fish

It is not.

interruption we claim related million would that of the be EBITDA $X.X it top guided would XXXX business as range. to make that to Specifically, of our on relates

Brandon Nispel

you. Thank Great.

Operator

comes from Russo question of Credit the Suisse. Brian Your next with line

line is Your open.

Brian Russo

follow-up questions, Teresa Two for Rich. thanks. then Hi, and one for a

happened was or think this love thoughts the product wireless what that early I'd days it of so your at are of offerings. change So I you your in something. previously competitive like kind expectations - a for broadband at have get at about the when seen to this notion you your any you of to I change kind expect Teresa, all, restatements, major a landscape of federal the in And for that, edge. taxpayer that as be Rich, just least to taxes? for, were clarify. broadband on in wanted Does what the wouldn't strategy. the wireless or to think maybe but it's that bundled follow-up I mentioned thought but full start - competitors then competitive still wondering just point paying, on Does of able paying you've bundle And for all full now kind a of I remarks, until to being offering thoughts XXXX I cash cash your think I

just So update was to if there any to Thanks. wanted clarify that?

Teresa Elder

Okay.

ahead wireless on first go and the I'll So start product.

I So you, career I on year, when myself of half been in has all last you my think I introduced told wireless. that, of to

with very think And, the I'm we've disadvantage, the competitive now. don't no, don't I wireless So customers familiar and we right wireless marketplace. a any product seen wireless because have

quite so and cable challenger worked on that out well I being and us, our brand customers for alternative has us good. the companies a rely very so on for the there, Our focus so, far doing other provide that strong well we and really to think products

right turn what's But we're well in the Rich. aware over to space. focus are happening And the taxes, feel delivering. about to watching on what and regard that now, in we that We then good always I'll

Richard Fish

taxpayer that it, the the opening At of did categorically remarks. of a This year, impacted by our taxes, But error back I in not that non-cash so is the at impacted be the business not $XXX it end for existing Yeah, some restatements we answer involved no. that deferred occurred whatsoever. and significant mention on have balances. - all. was There's time going of available NOL shape the way, tax expense this an NOLs company's no assertion, to we XXXX. million or form. Brian, any nothing won't available simply in are the is And happy It belief federal to deferred goodwill, impact income cash impacting reconfirm

Brian Russo

everyone. Thanks Perfect.

Operator

Capital [Operator comes Markets. with Brandon the Instructions] next question from line Your of Nispel KeyBanc

open. is line Your

Brandon Nispel

Great.

start to any OTT drove to And terms want provider? growth there options you expectations outperformance in all to when HSD your on then, Maybe different out to compelling strategies in back jump a maybe XXXX that OTT video an one. for Just maybe the guided in you with does another at for sense of make Are looking year there? ago? initial what compared in Thanks. it for video, partnering

Teresa Elder

Netflix think our programming. alternatives that. embraced and the one network I the video back that especially WOW! always in We first a way has for to of with well were day is up in side, work the has Well, been Okay. on company set

alternative year. look providers We to offerings at last our for customer continue base new and

network suited. gives For different a example, TV, just type of in of is we well rev-share as opportunity just terms programs, very which Cheddar launched our well. us And

that in in one that's are last like XX%, the results a we're in XXXX I three our network We the transformation, video readying losses ensuring of video everything So feel space. doing And very is best period. really digital in Relative competitive yeah, XX% or video the saw our we improvement with year-ago the to years.

care, being really wowway.com precise of sales customer connects we and other HSD, whether was in had, the board. Whole-Home that of an as of we've targeted customers the helped combination the many of mesh more it's those much churn terms new buy all also of the and HSD think make It's that to more the really for the but to easily things products certainly top-end at it channel made I the just the better the the marketing In things make reduction. that launching problems network done all only so positive, more the the fewer impact have more funnel not through customers that approach, experience culmination strategies reliable, across and we offering Wi-Fi alternative through such network, that improvements

was a we than of all this year perhaps time. traction, think ago a combination it So better getting of had I anticipated those at things,

Operator

would The call has over to now Q&A to of I the closing portion the for WOW! team the like call back remarks. ended. management turn

Teresa Elder

and business in And our appreciate great very WOW! much interest your day. your much, appreciate Great. Have still everyone. support you joining Well, of thank you us I so a I today.

Operator

thank fourth for the earnings you and concludes conference quarter your like end participation. XXXX WideOpenWest, We'd This call. to year Inc.,

You disconnect. may now

WideOpenWest (WOW) 8 Mar 192018 Q4 Earnings call transcript