Knology Posts Modest 3Q Gains

Author:
Publish date:
Updated on

Knology reported its third-quarter-2006 earnings Wednesday, including an all-time EBITDA high for the company.

The operator posted revenue of $65.3 million versus $58.6 million in the third quarter of 2005 and $64.1 million in the second quarter of 2006.

Earnings before interest, taxes, debt and amortization were a record $17.3 million compared with $12.6 million in the year-ago period and $16.5 million in the previous quarter.

The company reported a net loss of $10.5 million, or $0.30 per share, versus $8.2 million ($0.34) in the prior-year quarter and $10.2 million ($0.42) in this year’s second quarter, adding that the third-quarter-2005 figure included a gain of $8.5 million on the sale of discontinued operations.

Total connections increased 8,391 to 458,467, with Knology adding 4,764 data connections, 2,329 voice connections and 1,298 video connections. Average monthly revenue per connection was $47.79 compared with $46.49 in the third quarter of 2005 and $47.89 in the previous quarter. Average monthly connection churn was 2.8%, unchanged from both the third quarter of 2005 and the second quarter of 2006.

“We have maintained our focus on business fundamentals and customer service, driving the company to record-high revenue and EBITDA performance in the third quarter of 2006,” CEO Rodger L. Johnson said in a prepared statement.

Chief financial officer Todd Holt added, “Our improved capital structure, including the lower cash-interest requirements, along with strong operating performance and efficient capital spending, resulted in solid free cash flow for the third quarter of 2006 and positions the company for positive free-cash-flow trends in future periods.”

Related