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Executives

Rodger L. Johnson - Chairman, Chief Executive Officer

M. Todd Holt - President

Bruce D. Herman - Chief Financial Officer

Bret T. McCants - Executive Vice President – Operations

Analysts

Jonathan Atkin - RBC Capital Markets

Frank Louthan - Raymond James & Associates, Inc.

David Joyce - Miller Tabak Roberts Securities

[Ahmed Khorsand] – DWS Financial

Dennis Leibowitz - Act II Partners

Knology, Inc. (KNOL) Q2 2008 Earnings Call August 11, 2008 10:00 AM ET

Operator

Good morning and welcome to the Knology Inc. second quarter 2008 conference call. (Operator Instructions). I would now like to turn the conference over to your moderator Todd Holt, Knology’s president.

Todd Holt

Good morning everyone and welcome to the Knology conference call. With me this morning is Roger Johnson, our chairman of the board and CEO, Bret McCants, Knology’s Executive Vice President of Operations and Bruce Herman, our Chief Financial Officer.

Roger will comment on the recent executive promotions in a moment. Roger will also provide his state of the business review as well as cover some of the high lights of the second quarter. I will follow Roger with a more detailed review of the quarterly financial and operating performance of the business.

Before Roger gets started, let me offer a cautionary note regarding forward-looking statements. Some of the information we provide and discuss in this call is forward-looking information and is given in reliance on the Safe Harbor Provided by the Private Securities Litigation Reform Act. These forward-looking statements involve risks and uncertainties, our actual results could differ materially from these forward-looking statements due to certain factors, including the risk and uncertainties discussed in Knology’s annual report on form 10-K for the fiscal year ended December 31, 2007 and our other reports filed with the Securities and Exchange Commission.

Rodger Johnson

Before we discuss our second quarter results I will make a couple of comments regarding our recently announced senior management promotions. Several months ago our board of directors asked if I would consider becoming chairman of the board of Knology. As I stated in the announcement press release, I was both honored and humbled by this request, but I also saw it as an opportunity to broaden and strengthen an already strong management team. This led me to ask Todd Holt to become our president and Bret McCants to become our executive vice president of operations. Both of these individuals will maintain responsibility for the functional units currently reporting to them and will also pick up additional responsibilities.

Simultaneously Bruce Herman, who has been serving as our vice president of strategy and development, will become our chief financial officer. Bruce was the CEO of Prairie Wave Communications at the time we completed that acquisition and he had previously served as their CFO. We are excited about these moves and believe they will provide us a more efficient decision making process as we move forward at Knology.

The two most often asked questions following the announcement of these promotions have been number one, am I staying for the long-term as CEO of Knology, the answer to that is absolutely yes. I still feel like we have a lot of wood to chop here at Knology. Our future is very bright, our market space is dynamic and ever changing and I love working with the people at Knology. I am not going anywhere. The second most common question has been where is Bruce going to be located. Bruce moved his family south last year and has been working at our WestPoint offices for some time, so he is committed. I have always felt it important to have our CFO right down the hall and don’t see any reason to change my views now.

Now for second quarter 2008 results:

We had another good quarter at Knology. Revenue EBITDA and free cash flow all showed double-digit growth when compared to the same period a year ago and EBITDA margin is up to 32.8%. This represents almost a 6% increase over 2Q of ’07. We are obviously benefiting from the Graceba acquisition in our year-to-year comparisons, but have also seen positive strides in the financial performance of our Legacy markets. Probably the highlight of the second quarter was the strong growth we enjoyed in our business and commercial subscriber base. We added almost 3,500 business RGUs during the quarter, passing the 100,000 threshold and business connections for the time.

Business connections now represent more than 15.3% of our total connections and they tend to be more profitable than our residential connections, plus businesses represent contracted revenue and they churn far less than our residential customer base. We have actually closed business sales this year where we netted as much as $13,000 per month yet only reflected a single RGU. As many of you have heard us say, the growing impact of business sales is rendering RGUs less and less meaningful as a measure of growth and future profitability for our company.

Before leaving business sales I want to mention that we recently rolled out a suite of communication services which we call Plexus. It includes Matrix, our IP Centrex offering and newly developed iPLEX products. IPLEX is the sip trunking service for those of you who are not familiar, that stands for session initiated protocol and it replaces the need for traditional telephone lines and is normally a replacement for trunks transported over traditional telephone T1 services. Given the focus and the growth of data and voice communications in small to medium businesses, this IP based managed services is right in the sweet spot of what businesses are looking for. We are already experiencing strong sales of the product and are excited about its future.

Shifting gears on you, our penetrations stats have not changed much over last quarter. Overall RGU penetration is still hovering in the 73% range. Five of our 12 markets now have penetration greater than 100%; another is greater than 95%; three more in the 80% range; two are in the mid-60% range and one market is below 50%.

Our Triple Play customers represent 49% of our residential customer base and our Double Play customers represent 32%, meaning 80% of our residential customers buy more than one service from us: clearly, the customers in the markets where we operating are strongly committed to Knology.

Digital penetration for the quarter continued to hover near the 50% level and has been largely driven by the high definition and DVR sales which we have noted on the past few earnings calls. Todd will give you a little bit more color on this in his comments, but the tangible evidence that I see is the video ARPU of now almost $62.00 a month.

On our first quarter conference call we noted some softness in our residential RGU growth near the end of the quarter and indicated it would carry into the seasonally slow second quarter. This softness was not caused by churn, which has actually been better in both the first and second quarters this year than for the same periods in 2007. This means we have not seen an increase in competitive losses; rather what we have seen is a slowing in the acquisition of new residential customers. While some of this is a product of the macroeconomic environment out there right now, the largest contributor was a decision on our part not to offer any discount promotions in the first quarter of the first half of the second quarter. If you have followed Knology for a any time you know we are very disciplined in our decision making process.

You will recall that we introduced a price promotion, a $99.00 triple play and $66.00 double play bundle in the third quarter of ’07 that led to our best third quarter RGU growth in five years. We learned that we are definitely able to drive RGU growth with an aggressive promotion if we choose to.

Customers who signed up in third quarter ’07 for our double-play promotional offer were scheduled to roll up to a higher price point in March/April of ’08 and customers who signed up for our triple play promotional offer were scheduled to roll up to a higher price point in June/July ’08.

Rather than throw another promotion in the market with no historical performance data, we chose to wait to see what kind of results we had, particularly what kind of retention levels we would have when prices increased. What we learned after reviewing our March/April data, is that we had a strong retention rate for our third quarter ’07 double play promotion customers.

We have since validated an equally strong retention of our third quarter ’07 triple play promotional customers. Currently 60%+ of our double play and 75% of our triple play promotional customers remain with us after receiving their price increases. These are an outstanding result, especially when we consider that the largest portion of the customer departures is consistent with our normal churned experience.

So, we went ahead in May and established new promotional offers that still deliver solid gross margins for both a double and triple play bundles and do not include any expensive premium give aways in the packages. We saw our May sales increase by 20.1% versus April, June was up another 9.5% versus May and July was up another 9.2% versus June. We are now back up to more normal levels with respect to our installation back-logs. We will benefit for the remainder of the year from this sales increase as well as the roll up of the previous triple play promotional pricing to full price.

Although we paid a short-term price in the seasonally slow quarter, we feel better about this approach then if we had put a promotion in place and then discovered, for instance, that we only had a 10% retention rate and had inappropriately perpetuated a poor offer. I many be getting the cart before the horse a little bit, but as an aside, we generated solid net gain RGU activity in the month of July.

One last comment before I turn the call over to Todd, we are continuing our focus on driving free cash flow in 2008. We saw another $9.5 million in free cash in the second quarter of ’08 and will continue to be diligent in our management of capital expenditures while we grow our business. We have completed the restocking of our CP inventories following the big increase in Hi-Def and DVR sales last year and we have also completed the movement of our Pinellas head in out of Verizon facilities. These were two big hits on CapEx that we took in the first half of the year. We reverted to more comfortable CapEx levels in June and actually anticipate spending a little less on CapEx than our beginning of the year projections.

Todd Holt

I will begin by reviewing the connections, ARPU, and churn numbers.

We ended the second quarter with just over 666,000 total connections. That is a 6.6% increase over last year and for the quarter a reduction of 5,462 connections from the previous quarter. Rodger earlier addressed the seasonal soft second quarter as well as the timing of our promotional activity, both of which contributed to the connection activity in the second quarter. Overall we lost 3,980 video connections, 2313 telephone connections and gained 831 data or high-speed internet connections.

The business experienced continued healthy gains in business enterprise connections adding 3,474 business connections during the quarter. These business connections are very valuable connections given they are low-churn and high ARPU, high gross margin economics. We are pleased with the success we have experienced and are confident that we can continue to drive solid performance in this lucrative business environment. Business connections now account for 15.3% of total connections, so as you can see we have some real scale to this segment of our overall business.

Our focus on growing the company profitably has resulted in ongoing increases in ARPU. Our overall average connection ARPU increased to $50.91 in the second quarter of 2008, compared to $48.90 a year ago and compared to $50.36 in the previous quarter. Average connection ARPU also increased for all three services and for Q2 was $61.75 per video, $46.87 for telephone and $40.42 for the data high-speed internet connection.

Customer ARPU, rather than connection ARPU also increased to $121.07; that is strong. We believe these high ARPU figures reflect some of the discipline in managing the business that Roger referred to earlier and the ARPU has been favorably impacted by price increases, healthy business connection increases, and continued consumer demand for the high-end video services.

Our deployment of the high-end HD/DVR box increased 67% over last year and as of quarter end 26% of our vide sub subscribed to an advanced service, that compares to 19% last year and 54% of digital customers subscribe to an advanced service, that compares to 45% last year. These are both very nice increases compared to the previous period.

Average monthly connection churn has remarkably remained in check in this down economic environment. Churn always increases in the second quarter, so that higher than first quarter churn was expected and we were pleased with the 2.7% average monthly churn posted in Q2. This compares to 3.1% churn in the second quarter last year. Now to be fair last years churn was somewhat unfavorably impacted by our credit policy decisions and higher than normal military moves; however we believe the 2.7% for this Q2 this year is very good and continues to reflect the benefits of a very bundled and loyal customer base as well as a healthy mix of low-churn business customers.

Moving on to the financial performance for the second quarter, our revenue was $102.1 million for the quarter, representing an 11.5% increase compared to the second quarter last year and a sequential quarterly increase from $101.3 million in the first quarter of 2008.

EBITDA for the second quarter was $33.5 million, a 17.6% increase compared to the same period last year and our EBITDA margin increased to 32.8% in this quarter, a nice increase from the 31% EBITDA margin posted in the same period one year ago.

Our gross margin percentage was 71.2%, a very high margin equaling the percentage posted in the same period one year ago and an increase from the 70.3% gross margin posted last quarter. Our GAAP operating income was $7.6 million in the second quarter that represents a 41% increase compared to the same period last year. GAAP operating income was down compared to Q1 of 2008 which was primarily due to increased marketing spend, some higher non-cash compensation expense and one time name changes expenses associated with the PrairieWave and Graceba businesses.

Our bottom line for the second quarter of 2008 was a net loss of $4 million or $0.11 per share: that compares with a net loss of $33 million or $0.94 per share for the second quarter of 2007. The 2007 number was impacted by a $27.4 million loss on the early extinguishment of debt.

On the balance sheet we ended the second quarter with $37.6 million in cash: that’s up from about $33 million of cash at the end of the first quarter. In addition to the cash on hand, we also maintained a $25 million revolver, none of which is currently drawn; it continues to serve as liquidity cushion for the business. From a leverage perspective we are at about 4.6 times calculated on an LQA EBITDA basis using gross debt. The same calculation on a net debt basis yields a leverage ratio of 4.23 times. Also, our interest coverage is about three times, so we feel very good about where we are from a balance sheet, liquidity, and leverage standpoint.

Our CapEx for the quarter came in at $13.1 million and net cash interest was $10.9 million. That results in free cash flow for the quarter of $9.5 million. This represents a 9.3% free cash flow yield for the second quarter and with expected increase in quarterly EBITDA on a go-forward basis and expected decreases in quarterly CapEx spending, we expect to deliver a double-digit free-cash flow for the year. This is very significant and reflects a very healthy business.

Remember, we are required to use 50% of our excess free-cash flow as defined by our credit facility to pay down principle in addition to the !% annual amortization. The remaining cash flow will allow us to maintain a strong cash balance with solid liquidity as we continue to keep our eyes and ears open for high quality M&A opportunities to compliment our organic growth.

We continue to be very excited about our business. As Rodger indicated early Q3 activity is very promising and we are looking forward to the remainder of 2008.

Rodger will now come in on our outlook for the rest of the year before we open the line for Q&A.

Rodger Johnson

Before taking your calls, we should probably give you some insight into our current feelings with respect to guidance. At this time we still feel that we will come in within the ranges we gave you at the beginning of the year for revues and EBITDA. Because of the decision to hold back a promotional offer until we had performance data we anticipate that we will come in near the lower end of those ranges. As a reminder, our original ranges were revenue $410 to $420 million and EBITDA $140 to $144 million. We now anticipate that we will bring capital expenditures in $2 to $3 million below our previous estimate of $50 million. Coupling this with our EIBTDA projections we still feel that we will deliver free cash flow in the upper $40 million range approaching $50 million and therefore, ad Todd suggested, we will provide double digit free cash flow yield.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Jonathan Atkin with RBC Capital Markets.

Jonathan Atkin - RBC Capital Markets

I wonder if you could comment on the overall economic environment and your operating markets beyond what you alluded to in your remarks. Then, in your commercial segment specifically are you starting to see any particularly targeted competitive responses?

Rodger Johnson

We have seen some softness on residential RGUs. Anybody who denies that the consumer is affected by this economy is kind of missing the mark here. We have seen it particularly in this

WestPoint area that I have commented on in times gone by, because of lay-offs in the textile industry. The corollary is that we are seeing good growth on our business sales activity with the KIA automotive plant coming in.

We have also seen some softness in the Florida markets just because of where a lot of people got caught in the mortgage crisis down there and we’ve seen some businesses that have been struggling in that environment, but all in all, I think we have held our own from an economic standpoint. I think the markets that we operate in, these secondary and tertiary markets in the south are for the most part still growth markets.

Todd Holt

It is interesting on the economic front as well is that, as Rodger indicated, it is pretty much just towards the gross connects. We actually study our churn very, very closely and the various reasons for churn and the bad debt churn or non-pay churn is very, very good and we just believe that does reflect the good, loyal, bundled customers. We are not seeing if the economic conditions impact the churn or the bad debt expense for the business.

Rodger Johnson

On the business competitive side, we are not really seeing anything new and magnanimous there. If anything, quite frankly, I think we’re becoming more competitive in those market places. The things that I mentioned with the sip trunking, we see that business universe as a great way to expand our revenues and our profitability, because the capital has already been invested there. So, at this point in time we’re not seeing anything meaningful. We are actually taking share away from the bells, we think, in our environments.

Jonathan Atkin - RBC Capital Markets

It looks like you are doing a fair bit of hiring of sales personnel on the consumer side, but also on the business side, just based on what you have listed on your web site. I wondered if you could refresh us on how many sales reps you have overall in each segment and is the hiring that’s taking place is replacing folks that left or are you actually increasing your headcount in that area?

Bret McCants

We have about 45 SME sales reps in the field and then we have two folks that would be dedicated to what we would call wholesale or large sale.

Rodger Johnson

That’s on the business side Jonathon and honestly I couldn’t tell you off the top of my head where we are on the residential side. We pretty well keep that constant.

Bret McCants

That’s usually between 100, 120 residential sales reps in the field and then we have a large contingency of outbound and inbound call center sales reps as well.

Jonathan Atkin - RBC Capital Markets

There is nothing unusual going on in terms of the hiring then?

Rodger Johnson

No not at all. We are actually ratcheting up the business sales somewhat, because we just see such a great opportunity there.

Operator

Your next question comes from Frank Louthan with Raymond James & Associates, Inc.

Frank Louthan - Raymond James & Associates, Inc.

Can you give me an idea on the business side, what is sort of your average contract lengths there and what is the ARPU for those customers and then maybe give us an idea what are sort of the residential ARPUs growing nicely in aggregate, I just want to get a sense for what the residential side has been doing as well.

Of the one market that you mentioned that is under 50% penetrated, what has the growth been at that market, what was it in the last couple of quarters? Has it been improving materially or has it been sort of flat.

Rodger Johnson

The first one, the average contract length is typically three years or so. We’ve got some that are in the five and seven year range, but for the most part three years. Any time we put one of those in place, especially if it requires capital, you have heard us say before we subject it to s process where we are seeking a yield of at least a 40% IRR on those.

You asked a question about ARPUs on the residential side versus the business side. We couldn’t tell you an average ARPU on the business side, because as we’ve said it’s kind of a meaningless number. We can go as low as $50.00 per month to as high as the one I gave you an example of $13,000 per month, so it’s a pretty wide range, so it’s not a number that we really, really track, because it doesn’t mean that much to us.

Todd Holt

Frank asked about the residential ARPU and that has been moving up every single quarter consistent with what we see on the connection ARPU trends and we’re up over $110 now average residential custer [ph] monthly ARPU, so that’s a real strong number and that’s driven by several things. I mean it’s driven by the price increases we run through every year as well as the continued strong demand for those advanced video applications, whether it’s the digital DVR or HD particularly. You know the DVR and HD right now that adds solid ARPU to the residential customer and it’s very strong flow through down to gross margin and all the way down to EBITDA margin, so we continue to see those trends in the business.

Rodger Johnson

Then your last question was the one market that we have below 50% have we seen meaningful growth there? I would say not really, it’s just been kind of plodding along generating good market level free-cash flow for us right now, good solid EBITDA. So, I don’t see any massive growth out of that market from a percentage penetration standpoint.

Frank Louthan - Raymond James & Associates, Inc.

On the enterprise side, can you give us an idea what percentage of that base is more the medium side, say a T1 customer or larger of your enterprise base and what part of it is growing? Is it sort of the $50.00 a month business customer or more of a T1 or better kind of a more advanced business customer?

Rodger Johnson

We have actually got those numbers where we can show you what percentage of our business RGUs come from what size customers, I just don’t have those in here with me. I’ll get back to you on that answer. I think what we’re doing is we’re actually seeing growth in both segments. We’re seeing the small customers continue to grow at a very, very rapid rate and we’re also seeing the large customers grow with the products that we have in the market place, so we’re seeing good growth through out our business universe.

As I mentioned we’re really excited about this sift trunking product and what it’s doing for us.

Operator

Your next question comes from David Joyce with Miller Tabak & Company.

David Joyce - Miller Tabak Roberts Securities

One of the questions I had was with regard to your digital penetration of 50% it’s still below the Country Wide average. I was just wondering if that is related just to Pannelis [ph] or is it something because of your being in smaller markets that’s driving that and related to that, when would you plan to be all digital?

Todd Holt

First on the digital penetration number, it’s really not due to any of those reasons, it’s strictly due to our approach to the business and we have a different discipline than some other providers; so we do not feel that it’s smart to aggressively promote that service. We want it to pay for itself. Those boxes are expensive. We want to achieve a high IRR on that box deployment and as you know we’re focused on delivering good free cash flow.

We like the digital customers, we’ve got opportunities to increase our penetration there, but we’re going to do it in a very profitable, disciplined manner.

Rodger Johnson

We just haven’t done any of the big digital box give away programs that you’ve seen some of the other folks do.

David Joyce - Miller Tabak Roberts Securities

On the recent promotions where you said you had the double play retention of 60% and 75% on triple play, did you say that on the double play side that was still along the lines of normal turn rates?

Rodger Johnson

Yes if you look at double play customers, depending on what segment you get you would see anywhere from 2.5 to 2.3% churn on those double play customers and some of those customers started actually 14 to 15 months ago, so if you run the math out it’s holding pretty true to what our normal churn is. Running it forward for 14 to 15 months you would have that much normal churn.

David Joyce - Miller Tabak Roberts Securities

It looks like SG&A was up a little more than we thought. Is that related to some extra sales force that you have been putting in place for the business growth?

Rodger Johnson

It was primarily three reasons: we had higher investment in marketing spend in the second quarter compared to the first quarter so that came in late in the quarter as we spent more to get the promotions out of the marketplace and then in addition in the SG&A includes the non-cash stock based compensation, there was an increase there with a recent grant of stock options and then the third thing was the one time name change expenses in the Graceba and PrairieWave market places that are behind us now, so it’s really those three particular areas that increased the SG&A this quarter.

David Joyce - Miller Tabak Roberts Securities

You increased marketing spending on some promotions in the second quarter; was that in the first half of the second quarter?

Rodger Johnson

No it was late in the second quarter. We mentioned, I think on the first quarter earnings call, we really didn’t try to put anything out on this promotional response until we had retention rates in hand, so we really didn’t make that investment until the very, very later part of the quarter and I think that’s the reason you’ve seen those kind of sales numbers pop up as I indicated in my comments. The marketing has really, really kicked in for us.

David Joyce - Miller Tabak Roberts Securities

You wouldn’t have been trying to market the promotions going into the slow portion of the quarter when you’d be losing the customers to seasonality then?

Rodger Johnson

No, we historically have not done that and like I said, what we chose to do was to wait to see what the results are, know that we were going to have retention, start marketing into the growth environment and that’s what we’ve seen.

Operator

Your next question comes from [Ahmed Khorsand] with DWS Financial.

[Ahmed Khorsand]– DWS Financial

When you look at Q2 backlog coming back from normal, would that provide you guys with some sort of leverage going into Q3 operating levels and how much leverage would that provide?

Rodger Johnson

I’m not sure what you mean by leverage?

[Ahmed Khorsand]– DWS Financial

What I’m trying to refer to is in Q2 you obviously had a lot of these guys that are installing these lines sitting and not doing much, because you weren’t promoting or didn’t have a backlog that was at normal. So now that they are working, you are producing revenues from the backlog they are installing, what kind of operating leverage can you get from your stales force and your technical force?

Rodger Johnson

Now I see what you’re saying, yes we definitely have opportunity. As Bret would tell you, I think, our backlog has doubled from the low point that we hit to where we are right now; so what we’re seeing is great deal of efficiency out of our technical installation forces and also our sales force as we continue to drive that. As a matter of fact, last week we had three consecutive days where daily sales were north of 1,000, so we’re getting that leverage in the marketplace now.

[Ahmed Khorsand]– DWS Financial

What kind of an operating margin can that translate into?

Rodger Johnson

It’s going to be similar to that high 70% type gross margin and that’ll provide us opportunities because, as you can see, the last several quarters there’s a healthy mix of business customers and we’re selling the data. The high speed internet service is still the fastest growing; that’s a 95% gross margin product, so with the additional customers coming on that are highly bundled, as well as business customers, that actually gives us an opportunity to expand our margins on both the gross margin line as well as the EBITDA margin line.

That added ARPU that added revenue; we’ll see very high flow through to gross margin and EBITDA margin, so it can expand from where we are today.

Todd Holt

Yes I think that’s the answer, we’ll get better flow through than we have and we’ll see an expansion of our EBITDA margin.

Operator

Your last question comes from Dennis Leibowitz with Act II Partners.

Dennis Leibowitz - Act II Partners

On the decline in residential voice product, is that part of the promotional issue? I mean most of the operators are still rolling it out and getting higher penetration are showing higher voice penetrations.

Rodger Johnson

Yes I think that’s a good reflection, it’s just simply a matter of the fact that we just weren’t promoting anything during that period. I think the biggest RGU reduction was on the video side and over half of what we saw on the video side came from video only customers, which tend to be our least profitable, highest churn customer, so we saw it there.

Back to the question at the beginning on the economic environment, without a doubt some of the customers that are triple and double play customers are doing like a lot of people are seeing right now and they’re terminating their land line and going to a wireless service. We don’t tend to see as much of that in our markets as we read about in some of the larger metropolitan areas, but we would be not being candid with you if we didn’t think that some of that factored in.

Mostly it’s everybody else is still building that Telco base. Now remember what I said, we’ve got five markets that are already 100% RGU penetrated.

Dennis Leibowitz - Act II Partners

So if you get a rebound because of the new promotions in the third quarter the voice ought to go along with it?

Rodger Johnson

Yes, we’re already seeing that. As a matter of fact if I believe what I saw and like I said awhile ago, I’m getting the cart before the horse and Todd will wrap me on the knuckles, but I think we saw growth in all three products in July, video, voice and data.

Rodger Johnson

I appreciate everybody being with us. I think we’ve fought our way through that second quarter. I still, you know, if I had 20-20 hindsight and if I’d known that we were going to do as good on retention as we ended up doing, I would have probably pulled the trigger on the promos a little bit earlier, but I would rather have the facts in hand and not get us going down a path where all of a sudden we walked into something where the retention didn’t hold up. I think it’s behind us, like I said earlier. The sales are popping forward. We’re also going to see a good increase in revenue as a result of the triple play guys that are rolling up to full price right now.

Given what I’ve told you about guidance we remain optimistic for the rest of the year.

We appreciate your support. If anybody has any one on one questions for Todd or I please don’t hesitate to call. Thank you.

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