WEST POINT, Ga. … Telecommunications services provider Knology reported better results and increased revenue in the second quarter of 2002, but it is still not turning a profit.
Net loss was $27.1 million during the second quarter, compared with $27.8 million during the first quarter and $30.8 million during the second quarter of 2001. Revenues for the second quarter 2002 were $34.8 million, up $2.8 million , or 9 percent, compared with the first quarter and up $9.4 million, or 37 percent, compared with the second quarter 2001.
“We completed the second quarter with solid results; however, consistent with our forecast for the second quarter, our net connection growth declined compared to the record numbers achieved in the first quarter,” President and Chief Executive Rodger Johnson said in a statement.” We are pleased with the progress of our previously announced debt restructuring efforts and believe that upon completion of a successful restructuring transaction, an improved balance sheet and liquidity position will complement our favorable operating performance to position Knology for continued successful growth.”
The decline in net connections is primarily due to seasonally higher second-quarter “churn” and the company’s decision to reduce capital and operating expenses in certain parts of its business during the second quarter, Johnson said.
Knology ended the quarter with approximately $22.8 million of cash, of which $15.4 million is restricted for use by the borrowers of the CoBank, ACB loan, which consist of three Knology subsidiaries. They are Interstate Telephone, Valley Telephone and Globe Telecommunications.
Knology provides interactive voice, video and data services in the Southeast, providing residential and business customers more than 200 channels of digital cable TV, local and long-distance digital telephone service.