KNOLOGY INC

CIK:0001096788|SEC Filings

Condensed Consolidated Statements Of Comprehensive Income (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
OPERATING REVENUES:
Video	$ 59,635	$ 59,520
Voice	34,061	32,968
Data	34,400	30,864
Other	4,037	4,610
Total operating revenues	132,133	127,962
OPERATING EXPENSES:
Direct costs (excluding depreciation and amortization)	43,869	41,361
Selling, general and administrative	45,146	41,418
Depreciation and amortization	25,043	23,272
Total operating expenses	114,058	106,051
OPERATING INCOME	18,075	21,911
OTHER INCOME (EXPENSE):
Interest income	1	36
Interest expense	(9,071)	(10,573)
Debt modification expense	0	(181)
Gain on interest rate swaps	1,269	1,032
Other income (loss), net	(51)	7
Total other expense	(7,852)	(9,679)
NET INCOME	10,223	12,232
OTHER COMPREHENSIVE INCOME
Unrealized losses on change in fair value of hedge instruments	(1,886)	(2,676)
Total other comprehensive income	(1,886)	(2,676)
COMPREHENSIVE INCOME	$ 8,337	$ 9,556
BASIC NET INCOME PER SHARE	$ 0.27	$ 0.33
DILUTED NET INCOME PER SHARE	$ 0.26	$ 0.31
BASIC WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING	37,870,279	37,243,788
DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING	39,626,458	38,919,920

Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 10,223	$ 12,232
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	25,043	23,272
Non-cash stock compensation	1,592	1,694
Non-cash bank loan interest expense	562	481
Non-cash gain on interest rate swaps	(1,269)	(1,032)
Provision for bad debt	1,747	1,652
Gain on disposition of property	(10)	(1)
Changes in operating assets and liabilities:
Accounts receivable	(631)	186
Prepaid expenses and other assets	(2,745)	(2,044)
Accounts payable	(2,466)	4,996
Accrued liabilities	(41)	(1,388)
Unearned revenue	782	288
Total adjustments	22,564	28,104
Net cash provided by operating activities	32,787	40,336
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(27,307)	(26,007)
Acquisition of businesses, net of cash acquired	(13,706)	0
Maturities of certificates of deposit	0	105
Investment in Tower Cloud, Inc.	0	(1,116)
MDU signing bonuses and other intangible expenditures	136	(234)
Proceeds from sale of property	1,511	14
Net cash used in investing activities	(39,366)	(27,238)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long term debt	0	20,000
Principal payments on debt and short-term borrowings	(9,084)	(1,283)
Expenditures related to modification of long term debt	0	(4,905)
Stock options exercised	1,525	562
Net cash provided by (used in) financing activities	(7,559)	14,374
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(14,138)	27,472
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	84,866	47,120
CASH AND CASH EQUIVALENTS AT END OF PERIOD	70,728	74,592
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the periods for interest	8,922	11,005
Non-cash financing activities:
Debt acquired in capital lease transactions	$ 485	$ 0

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 70,728	$ 84,866
Restricted cash	2,164	2,164
Certificates of deposit	1,220	1,220
Accounts receivable, net of allowance for doubtful accounts of $1,923 and $1,759 as of December 31, 2011 and March 31, 2012, respectively	36,642	37,678
Prepaid expenses and other	5,696	2,950
Total current assets	116,450	128,878
PROPERTY, PLANT AND EQUIPMENT, NET	419,901	414,599
GOODWILL	277,668	267,685
CUSTOMER BASE, NET	19,228	17,443
DEFERRED DEBT ISSUANCE AND DEBT MODIFICATION COSTS, NET	10,272	10,834
INVESTMENTS	11,894	11,894
OTHER INTANGIBLES AND OTHER ASSETS, NET	3,615	5,413
Total assets	859,028	856,746
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long term debt	17,799	17,375
Accounts payable	28,457	30,888
Accrued liabilities	21,914	21,584
Unearned revenue	17,987	17,076
Interest rate swap	28	1,297
Total current liabilities	86,185	88,220
NONCURRENT LIABILITIES:
Long term debt, net of current portion	718,210	727,233
Interest rate swaps	22,913	21,027
Total noncurrent liabilities	741,123	748,260
Total liabilities	827,308	836,480
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value per share; 199,000,000 shares authorized, none outstanding	0	0
Non-voting common stock, $.01 par value per share; 25,000,000 shares authorized, none outstanding	0	0
Common stock, $.01 par value per share; 200,000,000 shares authorized, 37,767,626 and 38,090,497 shares issued and outstanding at December 31, 2011 and March 31, 2012, respectively	381	378
Additional paid-in capital	622,468	619,354
Accumulated other comprehensive loss	(22,913)	(21,027)
Accumulated deficit	(568,216)	(578,439)
Total stockholders' equity	31,720	20,266
Total liabilities and stockholders' equity	$ 859,028	$ 856,746