WideOpenWest, Inc. (NYSE:WOW) Q1 2024 Earnings Call Transcript

Expansion CapEx increased $18.7 million from the same period last year as we continue to invest in our future growth, bringing fiber homes to Central Florida and Greenville, South Carolina and now new markets in Michigan as well. In the first quarter, we spent $43.1 million on greenfields, $1.7 million on Edge-Outs and an additional $2.2 million on business services. As Teresa indicated in her comments, our greenfield spend included a significant amount of upfront expense focused on providing the foundation for passing additional homes throughout the remainder of the year. We believe we’re on track to spend no more than $60 million on greenfield expansion this year. Our unlevered adjusted free cash flow, which we define as adjusted EBITDA less CapEx, was negative $5.1 million for the first quarter, almost entirely driven by higher expansion spend predominantly on greenfields.

Finally, I would like to provide our expectations for the second quarter. As Teresa indicated in her comments this morning, we are seeing positive indications from the steps we are taking to address the challenges in our legacy markets. And we believe that we will see further approvals again in the second quarter. We expect our HSD net adds to be between negative 2,000 and negative 500. The ending of the ACP program is causing some uncertainty this quarter and is being reflected in our net adds guidance for the second quarter. We believe HSD revenue will be between $104 million and $107 million. We expect total revenue for the second quarter will be between $158 million and $161 million. And adjusted EBITDA to be between $63 million and $66 million.

Thank you so much for joining us this morning, and have a great day.

Operator: