WideOpenWest, Inc. (NYSE:WOW) Q3 2019 Earnings Conference Call - Final Transcript

Nov 01, 2019 • 09:00 am ET


WideOpenWest, Inc. (NYSE:WOW) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Third Quarter 2019 WideOpenWest Incorporated Earnings Conference Call. [Operator Instructions].

I would now like to turn the call over to Mr. Lucas Binder, Vice President of Corporate Development and Investor Relations. Mr. Binder, please go ahead.

Lucas Binder

Thank you, Keith. Good morning everyone and thank you for joining our third quarter 2019 earnings call. With me today is Teresa Elder, WOW's Chief Executive Officer, and Rich Fish, WOW's Chief Financial Officer

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

You are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update such forward-looking statements. For additional information concerning factors that could affect our financial results or cause actual results to differ materially from our forward-looking statements, please refer to our filings with the SEC, including the Risk Factors section of our Form 10-K filed with the SEC.

In addition, please note that in today's call and in our earnings release, we will refer to certain non-GAAP financial measures, such measures include adjusted EBITDA, transaction-adjusted EBITDA, transaction-adjusted capital expenditures, transaction-adjusted capital expenditures excluding transaction-adjusted strategic capital expenditures and transaction-adjusted diluted earnings per share. While the company believes these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. We've included a reconciliation of reported adjusted EBITDA to transaction-adjusted EBITDA in our earnings release and trending schedule available on our website at ir.wowway.com. Unless otherwise noted, references to transaction-adjusted results discussed in this call, these results are adjusted to include the impact from acquisitions and exclude the impact from dispositions and exclude the impact from Hurricane Michael and associated insurance settlement.

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

Teresa Elder

Thanks, Lucas, and thank you everyone for joining today's call. We are very pleased with the operational execution reflected in our third quarter 2019 results. We saw positive HSD RGU additions; organic HSD RGU additions; solid Edge-Out subscriber growth, our best Edge-Out homes passed expansion month in our history and continued growth in transaction-adjusted EBITDA. Total subscribers grew 7,800 in the third quarter of 2019. This represented the best quarterly subscriber growth in six quarters. HSD RGUs grew by 10,200 in the third quarter, the best HSD RGU growth since the first quarter of 2018.

Organic HSD RGUs also grew in the third quarter, adding 7,900. Total subscriber churn remained consistent with the year ago period, which had