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EX-99.1 - EXHIBIT 99.1 - KNOLOGY INC | a6696564ex99_1.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
8-K
CURRENT REPORT
PURSUANT TO SECTION 13
OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): |
April 26, 2011 |
KNOLOGY, INC. |
(Exact name of registrant as specified in its charter) |
Delaware |
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000-32647 |
58-2424258 |
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(State or other jurisdiction |
|
(Commission |
(I.R.S. Employer |
1241 O. G. Skinner Drive, West Point, Georgia |
31833 |
|
(Address of principal executive offices) |
(Zip Code) |
Registrant's telephone number, including area code: |
706-645-8752 |
|
Not Applicable |
Former name or former address, if changed since last report |
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On April 26, 2011, Knology, Inc. (the “Company”) issued a press release announcing its 2011 first quarter results. The full text of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein.
In the attached press release, we use the Non-GAAP financial measure EBITDA, as adjusted. EBITDA, as adjusted, is calculated as net income (loss) before interest; taxes; depreciation and amortization; non-cash stock compensation; M&A integration and restructuring expense; debt modification expense; gain on interest rate swaps; amortization of deferred loss on interest rate swaps; and other expense (income). EBITDA, as adjusted, is an operational measure that is not calculated and presented in accordance with accounting principles generally accepted in the United States. EBITDA, as adjusted, eliminates the uneven effect on operating income of non-cash depreciation of tangible assets and amortization of certain intangible assets and, therefore, is useful to management in measuring the overall operational strength and performance of the Company. A limitation of this measure, however, is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used for generating our revenues. Management evaluates the costs of such tangible and intangible assets through other financial measures such as capital expenditures and investment spending. Another limitation of EBITDA, as adjusted, is that it does not reflect income net of interest expense, which is a significant expense because of the substantial debt we have incurred.
In the attached press release, we also use the Non-GAAP financial measure Free Cash Flow. Free Cash Flow is calculated as EBITDA, as adjusted, less capitalized tangible and intangible expenditures and cash interest paid net of cash interest received. The use of Free Cash Flow is important because it allows management, as well as investors and analysts, to assess our ability to make additional investments and meet our debt obligations.
The press release attached as Exhibit 99.1 and incorporated by reference herein includes a reconciliation of EBITDA, as adjusted, and Free Cash Flow to net income (loss), the most directly comparable GAAP measure, for the three month periods ended March 31, 2010 and 2011.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated April 26, 2011.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Knology, Inc. |
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Date: |
April 26, 2011 |
By: |
/s/ Robert K. Mills |
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Name: |
Robert K. Mills |
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Title: |
Chief Financial Officer |
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Exhibit Index
Exhibit No. |
Description |
99.1 |
Press Release dated April 26, 2011. |