WideOpenWest, Inc. [WOW] Filings

10-Q 1 wow-20240630x10q.htm 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-38101

WideOpenWest, Inc.

(Exact name of registrant as specified in its charter)

Delaware (State or Other Jurisdiction of Incorporation or Organization)	46-0552948 (IRS Employer Identification No.)

7887 East Belleview Avenue, Suite 1000 Englewood, Colorado (Address of Principal Executive Offices)	80111 (Zip Code)

(720) 479-3500

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	WOW	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☐	Accelerated filer ☒

Non-accelerated filer ☐	Smaller reporting company ☐
Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of outstanding shares of the registrant’s common stock as of August 2, 2024 was 84,689,135.

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WIDEOPENWEST, INC. AND SUBSIDIARIES

FORM 10-Q

FOR THE PERIOD ENDED JUNE 30, 2024

TABLE OF CONTENTS

		Page
PART I. Financial Information
Item 1:	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations	2
	Condensed Consolidated Statements of Stockholders’ Equity	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to the Condensed Consolidated Financial Statements	5
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3:	Quantitative and Qualitative Disclosures about Market Risk	26
Item 4:	Controls and Procedures	26
PART II. Other Information		28
Item 1:	Legal Proceedings	28
Item 1A:	Risk Factors	28
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3:	Defaults Upon Senior Securities	28
Item 4:	Mine Safety Disclosures	28
Item 5:	Other Information	28
Item 6:	Exhibits	30

This Quarterly Report on Form 10-Q is for the three and six months ended June 30, 2024. Any statement contained in a prior periodic report shall be deemed to be modified or superseded for purposes of this Quarterly Report to the extent that a statement contained herein modifies or supersedes such statement. The Securities and Exchange Commission allows us to “incorporate by reference” information that we file with them, which means that we can disclose important information by referring you directly to those documents. Information incorporated by reference is considered to be part of this Quarterly Report. References in this Quarterly Report to “WOW,” “we,” “us,” “our,” or “the Company” are to WideOpenWest, Inc. and its direct and indirect subsidiaries, unless the context specifies or requires otherwise.

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Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this Quarterly Report that are not historical facts contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent our goals, beliefs, plans and expectations about our prospects for the future and other future events. Such statements involve certain risks, uncertainties and assumptions. Forward-looking statements include all statements that are not historical fact and can be identified by terms such as “may,” “intend,” “might,” “will,” “should,” “could,” “would,” “anticipate,” “expect,” “believe,” “estimate,” “plan,” “project,” “predict,” “potential,” or the negative of these terms. Although these forward-looking statements reflect our good-faith belief and reasonable judgment based on current information, these statements are qualified by important factors, many of which are beyond our control, that could cause our actual results to differ materially from those in the forward-looking statements, including, but not limited to:

●

the ability to retain and further attract customers due to increased competition, resource abilities of competitors, and shifts in the entertainment desires of customers;

●

our ability to respond to rapid technological change, including our ability to develop and deploy new products and technologies;

●

increases in programming and retransmission costs and/or programming exclusivity in favor of our competitors;

●

the disruption or failure of our network information systems or technologies as a result of hacking, viruses, outages or natural disasters in one or more of our geographic markets;

●

the effects of new regulations or regulatory changes on our business;

●

our substantial level of indebtedness, sensitivity to increases in prevailing interest rates, and our ability to comply with all covenants in our debt agreements;

●

our ability to procure necessary materials, equipment and services from our vendors in a timely manner in connection with our network expansion initiatives;

●

changes in laws and government regulations that may impact the availability and cost of capital;

●

effects of uncertain economic conditions (e.g., unemployment, decreased disposable income, etc.) which may negatively affect our customers’ demand or ability to pay for our current and future products and services;

●

our ability to manage the risks involved in the foregoing; and

other factors described from time to time in our reports filed or furnished with the SEC, and in particular those factors set forth in the section entitled “Risk Factors” in our annual report filed on Form 10-K with the SEC on March 13, 2024 and other reports subsequently filed with the SEC. Given these uncertainties, you should not place undue reliance on any such forward-looking statements. The forward-looking statements included in this report are made as of the date hereof or the date specified herein, based on information available to us as of such date. Except as required by law, we assume no obligation to update these forward-looking statements, even if new information becomes available in the future.

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PART I-FINANCIAL INFORMATION

WIDEOPENWEST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)


	June 30,		December 31,
	2024		2023

	(in millions, except share data)
Assets
Current assets
Cash and cash equivalents	$	20.7	$	23.4
Accounts receivable—trade, net of allowance for doubtful accounts of $5.5 and $6.7, respectively		37.4		38.8
Accounts receivable—other, net		3.7		9.5
Prepaid expenses and other		44.4		38.5
Total current assets		106.2		110.2
Right-of-use lease assets—operating		20.9		20.1
Property, plant and equipment, net		843.5		830.4
Franchise operating rights		278.3		278.3
Goodwill		225.1		225.1
Intangible assets subject to amortization, net		0.8		1.0
Other non-current assets		49.0		49.6
Total assets	$	1,523.8	$	1,514.7
Liabilities and stockholders’ equity
Current liabilities
Accounts payable—trade	$	59.3	$	59.5
Accrued interest		1.8		1.6
Current portion of long-term lease liability—operating		4.4		4.3
Accrued liabilities and other		62.4		60.0
Current portion of long-term debt and finance lease obligations		17.9		18.8
Current portion of unearned service revenue		25.0		25.4
Total current liabilities		170.8		169.6
Long-term debt and finance lease obligations, net of debt issuance costs —less current portion		956.6		915.7
Long-term lease liability—operating		18.6		18.0
Deferred income taxes, net		115.8		125.7
Other non-current liabilities		25.4		27.5
Total liabilities		1,287.2		1,256.5
Commitments and contingencies (Note 14)
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; 100,155,191 and 98,594,629 issued as of June 30, 2024 and December 31, 2023, respectively; 84,757,140 and 83,557,786 outstanding as of June 30, 2024 and December 31, 2023, respectively		1.0		1.0
Additional paid-in capital		397.7		391.8
Retained earnings (accumulated deficit)		(5.5)		20.3
Treasury stock at cost, 15,398,051 and 15,036,843 shares as of June 30, 2024 and December 31, 2023, respectively		(156.6)		(154.9)
Total stockholders’ equity		236.6		258.2
Total liabilities and stockholders’ equity	$	1,523.8	$	1,514.7

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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WIDEOPENWEST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)


	Three months ended				Six months ended
	June 30,				June 30,
	2024		2023		2024		2023

	(in millions, except per share and share data)
Revenue	$	158.8	$	172.6	$	320.3	$	344.8
Costs and expenses:
Operating (excluding depreciation and amortization)		64.6		75.6		132.1		153.7
Selling, general and administrative		37.8		43.6		74.2		129.1
Depreciation and amortization		52.7		46.7		105.1		92.2
Impairment losses on intangibles		—		128.1		—		128.1
		155.1		294.0		311.4		503.1
Income (loss) from operations		3.7		(121.4)		8.9		(158.3)
Other income (expense):
Interest expense		(17.8)		(17.3)		(38.8)		(32.2)
Other income, net		0.2		0.8		0.5		2.0
Loss before provision for income tax		(13.9)		(137.9)		(29.4)		(188.5)
Income tax benefit		3.1		36.2		3.6		48.8
Net loss	$	(10.8)	$	(101.7)	$	(25.8)	$	(139.7)

Basic and diluted loss per common share
Basic	$	(0.13)	$	(1.25)	$	(0.32)	$	(1.70)
Diluted	$	(0.13)	$	(1.25)	$	(0.32)	$	(1.70)
Weighted-average common shares outstanding
Basic		81,938,341		81,502,527		81,644,131		82,262,724
Diluted		81,938,341		81,502,527		81,644,131		82,262,724

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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WIDEOPENWEST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited)



								Retained
		Common		Treasury		Additional		Earnings		Total
	Common	Stock		Stock at		Paid-in		(Accumulated		Stockholders'
	Stock	Par Value		Cost		Capital		Deficit)		Equity

	(in millions, except share data)
Balances at January 1, 2024	83,557,786	$	1.0	$	(154.9)	$	391.8	$	20.3	$	258.2
Stock-based compensation	—		—		—		3.0		—		3.0
Issuance of restricted stock, net	111,431		—		—		—		—		—
Purchase of shares	(339,891)		—		(1.6)		—		—		(1.6)
Net loss	—		—		—		—		(15.0)		(15.0)
Balances at March 31, 2024(1)	83,329,326	$	1.0	$	(156.5)	$	394.8	$	5.3	$	244.6
Stock-based compensation	—		—		—		2.9		—		2.9
Issuance of restricted stock, net	1,449,131		—		—		—		—		—
Purchase of shares	(21,317)		—		(0.1)		—		—		(0.1)
Net loss	—		—		—		—		(10.8)		(10.8)
Balances at June 30, 2024(1)	84,757,140	$	1.0	$	(156.6)	$	397.7	$	(5.5)	$	236.6

(1)	Included in outstanding shares as of March 31, 2024 and June 30, 2024 are 1,482,690 and 2,726,560, respectively, of non-vested shares of restricted stock awards granted to employees and directors.


		Common		Treasury		Additional				Total
	Common	Stock		Stock at		Paid-in		Retained		Stockholders'
	Stock	Par Value		Cost		Capital		Earnings		Equity

	(in millions, except share data)
Balances at January 1, 2023	86,417,733	$	1.0	$	(108.6)	$	374.7	$	308.0	$	575.1
Stock-based compensation	—		—		—		5.6		—		5.6
Issuance of restricted stock, net	1,783,965		—		—		—		—		—
Purchase of shares	(2,642,178)		—		(28.4)		—		—		(28.4)
Net loss	—		—		—		—		(38.0)		(38.0)
Balances at March 31, 2023(1)	85,559,520	$	1.0	$	(137.0)	$	380.3	$	270.0	$	514.3
Stock-based compensation	—		—		—		5.1		—		5.1
Issuance of restricted stock, net	(8,493)		—		—		—		—		—
Purchase of shares	(1,866,046)		—		(17.5)		—		—		(17.5)
Net income	—		—		—		—		(101.7)		(101.7)
Balances at June 30, 2023(1)	83,684,981	$	1.0	$	(154.5)	$	385.4	$	168.3	$	400.2

(1)	Included in outstanding shares as of March 31, 2023 and June 30, 2023 are 3,057,037 and 2,847,006, respectively, of non-vested shares of restricted stock awards granted to employees and directors.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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WIDEOPENWEST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


	Six Months Ended
	June 30,
	2024		2023

	(in millions)
Cash flows from operating activities:
Net loss	$	(25.8)	$	(139.7)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		105.4		92.3
Deferred income taxes		(9.9)		(49.5)
Provision for doubtful accounts		4.8		5.5
Gain on sale of operating assets, net		(0.3)		(0.1)
Amortization of debt issuance costs and discount		0.9		0.8
Change in fair value of derivative instruments		(0.7)		—
Impairment losses on intangibles		—		128.1
Non-cash compensation		5.9		10.4
Other non-cash items		(0.1)		—
Changes in operating assets and liabilities:
Receivables and other operating assets		0.1		(13.7)
Payables and accruals		6.3		7.1
Net cash provided by operating activities	$	86.6	$	41.2
Cash flows from investing activities:
Capital expenditures	$	(123.6)	$	(123.8)
Other investing activities		0.1		0.2
Net cash used in investing activities	$	(123.5)	$	(123.6)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	$	44.0	$	130.0
Payments on long-term debt and finance lease obligations		(10.0)		(9.7)
Reimbursement of finance lease payments		1.7		—
Purchase of shares		(1.5)		(45.9)
Net cash provided by financing activities	$	34.2	$	74.4
Decrease in cash and cash equivalents		(2.7)		(8.0)
Cash and cash equivalents, beginning of period		23.4		31.0
Cash and cash equivalents, end of period	$	20.7	$	23.0
Supplemental disclosures of cash flow information:
Cash paid during the periods for interest, net	$	38.6	$	30.2
Cash paid during the periods for income taxes	$	0.1	$	9.8
Cash received during the periods for refunds of income taxes	$	—	$	4.8
Non-cash operating activities:
Operating lease additions	$	2.9	$	0.9
Non-cash investing and financing activities:
Finance lease additions	$	5.1	$	4.3
Excise tax payable	$	0.2	$	—
Capital expenditures within accounts payable and accruals	$	33.7	$	29.8

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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WIDEOPENWEST, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024

(unaudited)

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 16 markets in the United States which consist of Detroit and Lansing, Michigan; Augusta, Columbus, Newnan and West Point, Georgia; Charleston and Greenville County, 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.

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 2023 Annual Report filed with the SEC on March 13, 2024.

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.

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Recently Issued Accounting Standards

ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

In November 2023, Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-07, Segment Reporting (Topic 280), Improvement to Reportable Segment Disclosures. ASU 2023-07 will require public business entities (“PBEs”) to disclose, on an annual and interim basis, significant segment expenses provided to the chief operating decision maker (“CODM”) including a profit and loss; an amount for other segment items by reportable segment, including a description of composition; annual disclosures about a reportable segment’s profit or loss; if a CODM uses more than one measure of a segment’s profit or loss the PBE may report one or more of those additional measures; and requires that a PBE disclose the title and position of the CODM. The updated disclosure requirements are to be adopted for annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024. The Company does not anticipate adoption will have a material impact on the financial position, results of operations, cash flows or disclosures.

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

In October 2023, FASB issued Accounting Standard Update (“ASU”) 2023-09, Income Taxes (Topic 740), Improvement to Income Tax Disclosures. ASU 2023-09 will require all entities to disclose more detailed information in their reconciliation of their statutory tax rate to their effective tax rate. This requires PBEs to include incremental detail in a numerical, tabular format, while all other entities will do so through enhanced qualitative disclosures. The ASU also requires entities to disclose more detailed information about income taxes paid, including by jurisdiction; pretax income (or loss) from continuing operations; and income tax expense (or benefit). The updated disclosure requirements are to be adopted for annual periods beginning after December 15, 2024. The Company expects the adoption of the standard to result in additional disaggregation in the income tax footnote disclosures.

Note 3. Revenue from Contracts with Customers

Revenue by Service Offering

The following table presents revenue by service offering:


	Three months ended				Six months ended
	June 30,				June 30,
	2024		2023		2024		2023

	(in millions)
Residential subscription
HSD	$	85.7	$	88.0	$	172.6	$	174.8
Video		28.3		38.7		57.6		77.9
Telephony		4.5		5.5		9.3		11.1
Total residential subscription	$	118.5	$	132.2	$	239.5	$	263.8
Business subscription
HSD	$	19.3	$	18.7	$	38.6	$	37.1
Video		2.5		2.9		5.0		5.8
Telephony		6.2		6.6		12.4		13.1
Total business subscription	$	28.0	$	28.2	$	56.0	$	56.0
Total subscription services revenue		146.5		160.4		295.5		319.8
Other business services revenue(1)		5.0		5.1		10.3		10.3
Other revenue		7.3		7.1		14.5		14.7
Total revenue	$	158.8	$	172.6	$	320.3	$	344.8

(1)	Includes wholesale and colocation lease revenue of $4.7 million and $4.9 million for the three months ended June 30, 2024 and 2023, respectively and $9.7 million and $9.6 million for the six months ended June 30, 2024 and 2023, respectively.

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Promotional Costs

The following table summarizes the activity of promotional costs:


	Three months ended				Six months ended
	June 30,				June 30,
	2024		2023		2024		2023

	(in millions)
Balance at beginning of period	$	20.3	$	18.5	$	20.4	$	18.0
Deferral		1.7		1.9		3.8		4.0
Amortization		(2.3)		(1.8)		(4.5)		(3.4)
Balance at end of period	$	19.7	$	18.6	$	19.7	$	18.6

The following table presents the current and non-current portion of promotional costs for the periods presented:


	June 30, 2024		December 31, 2023

	(in millions)
Current promotional costs	$	8.4	$	8.0
Non-current promotional costs		11.3		12.4
Total promotional costs	$	19.7	$	20.4

Costs of Obtaining Contracts with Customers

The following table summarizes the activity of costs of obtaining contracts with customers:


	Three months ended				Six months ended
	June 30,				June 30,
	2024		2023		2024		2023

	(in millions)
Balance at beginning of period	$	42.9	$	39.9	$	42.4	$	39.5
Deferral		4.5		4.9		9.2		9.3
Amortization		(4.2)		(4.0)		(8.4)		(8.0)
Balance at end of period	$	43.2	$	40.8	$	43.2	$	40.8

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:


	June 30, 2024		December 31, 2023

	(in millions)
Current costs of obtaining contracts with customers	$	16.8	$	16.5
Non-current costs of obtaining contracts with customers		26.4		25.9
Total costs of obtaining contracts with customers	$	43.2	$	42.4

The current portion and the non-current portion of promotional costs and 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 promotional costs and costs of obtaining contracts with customers is included in selling, general and administrative expense in the Company’s unaudited condensed consolidated statements of operations.

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Contract Liabilities

The following table summarizes the activity of current and non-current contract liabilities:


	Three months ended				Six months ended
	June 30,				June 30,
	2024		2023		2024		2023

	(in millions)
Balance at beginning of period	$	2.3	$	2.5	$	2.5	$	2.7
Deferral		2.7		2.7		5.1		5.2
Revenue recognized		(2.6)		(2.7)		(5.2)		(5.4)
Balance at end of period	$	2.4	$	2.5	$	2.4	$	2.5

The following table presents the current and non-current portion of contract liabilities as of the end of the corresponding periods:


	June 30, 2024		December 31, 2023

	(in millions)
Current contract liabilities	$	2.1	$	2.2
Non-current contract liabilities		0.3		0.3
Total contract liabilities	$	2.4	$	2.5

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 June 30, 2024 is set forth in the table below:


	2024		2025		2026		Thereafter		Total

	(in millions)
Subscription services	$	23.8	$	27.6	$	9.3	$	3.8	$	64.5
Other business services		1.3		1.7		0.9		0.4		4.3
Total expected revenue	$	25.1	$	29.3	$	10.2	$	4.2	$	68.8

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.

Table of Contents

The following table presents the change in the allowance for doubtful accounts for trade accounts receivable:


	Three months ended					Six months ended
	June 30,					June 30,
	2024		2023		2024		2023

	(in millions)
Accounts receivable - trade	$	42.9	$	45.6	$	42.9	$	45.6

Allowance for doubtful accounts:
Balance at beginning of period	$	6.4	$	4.8	$	6.7	$	4.3
Provision charged to expense		2.1		2.9		4.8		5.5
Accounts written off, net of recoveries		(3.0)		(1.8)		(6.0)		(3.9)
Balance at end of period	$	5.5	$	5.9	$	5.5	$	5.9

Accounts receivable - trade, net of allowance for doubtful accounts	$	37.4	$	39.7	$	37.4	$	39.7

Note 4. Plant, Property and Equipment, Net

Plant, property and equipment consists of the following:


	June 30,		December 31,
	2024		2023

	(in millions)
Distribution facilities	$	1,612.9	$	1,510.6
Head-end equipment		293.0		296.5
Customer premise equipment		274.8		274.9
Computer equipment and software		192.4		182.0
Telephony infrastructure		48.0		48.0
Buildings and leasehold improvements		33.9		33.4
Vehicles		30.7		28.1
Office and technical equipment		19.1		19.1
Land		4.4		4.4
Construction in progress (including material inventory and other)		63.0		76.6
Total property, plant and equipment		2,572.2		2,473.6
Less accumulated depreciation		(1,728.7)		(1,643.2)
	$	843.5	$	830.4

Depreciation expense for the three months ended June 30, 2024 and 2023 was $52.5 million and $46.7 million, respectively. Included in depreciation and amortization expense in the unaudited condensed consolidated statement of operations for the three months ended June 30, 2024 and 2023 were net gains on sales of operating assets of nil and $0.1 million, respectively.

Depreciation expense for the six months ended June 30, 2024 and 2023 was $105.2 million and $92.1 million, respectively. Included in depreciation and amortization expense in the unaudited condensed consolidated statement of operations for the six months ended June 30, 2024 and 2023 were net gains on sales of operating assets of $0.3 million and $0.1 million, respectively.

Table of Contents

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 six months ended June 30, 2024 and 2023 are set forth below:


	January 1,				June 30,
	2024		Impairment		2024

	(in millions)
Franchise operating rights	$	278.3	$	—	$	278.3
Goodwill		225.1		—		225.1
	$	503.4	$	—	$	503.4


	January 1,				June 30,
	2023		Impairment		2023

	(in millions)
Franchise operating rights	$	585.1	$	(128.1)	$	457.0
Goodwill		225.1		—		225.1
	$	810.2	$	(128.1)	$

WideOpenWest, Inc. [WOW] Filings
10-Q	[2024-08-08]
10-Q	[2024-05-07]
10-K	[2024-03-13]
10-Q	[2023-11-08]
10-Q	[2023-08-08]
10-Q	[2023-05-04]
10-K	[2023-02-27]
10-Q	[2022-11-03]
10-Q	[2022-08-05]
10-Q	[2022-05-09]
10-K	[2022-02-24]
10-Q	[2021-11-08]
10-Q	[2021-08-05]
10-Q	[2021-05-04]
10-K	[2021-02-24]
10-Q	[2020-11-05]
10-Q	[2020-08-03]
10-Q	[2020-05-04]
10-K	[2020-03-04]
10-Q	[2019-11-01]
10-Q	[2019-08-02]
10-Q	[2019-05-07]
10-K	[2019-03-07]
10-Q	[2018-11-08]
10-Q	[2018-08-09]
10-Q	[2018-05-11]
10-K	[2018-03-14]
10-Q	[2017-11-13]
10-Q	[2017-08-14]
S-1	[2017-03-23]