25 Feb Mediacom Communications Reports Combined Results for Fourth Quarter and Full Year 2020
MEDIACOM PARK, N.Y.–(BUSINESS WIRE)–MEDIACOM COMMUNICATIONS CORPORATION today released combined unaudited financial and operating highlights for the three months and full year ended December 31, 2020.
Mediacom Combined Results for Fourth Quarter 2020*
Revenues were $549.4 million, a 6.9% increase from the prior year period
Adjusted OIBDA was $246.8 million, a 16.3% increase from the prior year period
Free cash flow was $151.4 million, a 24.0% increase from the prior year period
High-speed data (“HSD”) customers were 1,438,000, an 8.3% increase from December 31, 2019
Net debt of $1,713.6 billion, a $471.7 million reduction from December 31, 2019
Net leverage ratio of 1.74x, compared to 2.57x at December 31, 2019
Mediacom Combined Results for Full Year 2020*
Revenues were $2.131 billion, a 4.9% increase from the prior year period
Adjusted OIBDA was $898.9 million, a 11.2% increase from the prior year period
Free cash flow was $538.0 million, a 28.4% increase from the prior year period
“I am proud to announce record-breaking 2020 results, a truly exceptional performance in the face of the economic and operating challenges caused by the coronavirus pandemic,” stated Rocco B. Commisso, Mediacom’s founder, Chairman and Chief Executive Officer. “During the fourth quarter of 2020, not only did we achieve the 96th consecutive quarter of year-over-year revenue growth, an extraordinary feat, but Adjusted OIBDA rose 16.3% and we generated free cash flow of $151 million, both all-time records.
For full-year 2020, Adjusted OIBDA grew to $899 million, or 11.2%, representing Mediacom’s highest organic annual growth rate ever, and among the highest reported for 2020 in the U.S. telecommunications industry. Noteworthy is our ever-growing free cash flow which has enabled Mediacom to reduce debt by $600 million during the past two years, despite funding $1 billion for capital investments and the acquisition and support of ACF Fiorentina. Our outstanding financial performance strengthened the balance sheet even more, with net leverage declining to 1.7x, validating S&P’s decision to upgrade Mediacom’s credit rating to BBB investment grade in August of last year.
During these very difficult and trying times, Mediacom’s hard-working frontline employees have been critical to the mission of delivering fast and reliable broadband connections to our residential customers and their families, as well as to our commercial clients. Mediacom’s fiber-rich network performed remarkably well after COVID struck, handling significant increases in average bandwidth consumption per user and strong Internet customer growth, clearly demonstrating that our long-standing strategy of massive reinvestment in our broadband network continues to pay substantial dividends.”
* See Table 7 regarding our use of non-GAAP measures and definitions of Adjusted OIBDA and free cash flow and Table 8 for footnotes.
TABLE 1*
Mediacom Communications Corporation
Selected Combined Financial and Operating Data
(Dollars in thousands, except per unit data)
(Unaudited)
Three Months Ended
December 31,
2020
2019
YoY% Change
High-speed data (“HSD”)
$
249,803
$
217,820
14.7
%
Video
166,658
178,653
(6.7
%)
Phone
29,280
29,926
(2.2
%)
Business services
74,321
72,639
2.3
%
Advertising
29,304
14,877
97.0
%
Total revenues
$
549,366
$
513,915
6.9
%
Service costs
(205,690
)
(208,791
)
(1.5
%)
SG&A expenses
(81,612
)
(81,743
)
(0.2
%)
Management fees
(16,000
)
(11,500
)
39.1
%
OIBDA (a)
$
246,064
$
211,881
16.1
%
Non-cash, share based compensation
707
385
83.6
%
Adjusted OIBDA (a)
$
246,771
$
212,266
16.3
%
Cash interest expense (a)
(6,807
)
(19,670
)
(65.4
%)
Capital expenditures
(88,595
)
(70,515
)
25.6
%
Free cash flow (a)
$
151,369
$
122,081
24.0
%
Adjusted OIBDA margin (b)
44.9
%
41.3
%
December 31, 2020
December 31, 2019
YoY% Change
HSD customers
1,438,000
1,328,000
8.3
%
Video customers
643,000
710,000
(9.4
%)
Phone customers
586,000
613,000
(4.4
%)
Primary service units (“PSUs”)
2,667,000
2,651,000
0.6
%
HSD customer increases
13,000
12,000
Video customer declines
(20,000
)
(19,000
)
Phone customer declines
(13,000
)
(3,000
)
Quarterly PSU declines
(20,000
)
(10,000
)
December 31, 2020
December 31, 2019
Total debt (c)
$
1,750,000
$
2,215,000
Cash
(36,414
)
(29,733
)
Net debt
$
1,713,586
$
2,185,267
Unused lines of credit (d)
$
679,606
$
628,823
Net leverage ratio (e)
1.74x
2.57x
Interest coverage ratio (f)
36.25x
10.79x
_______________
* See Table 7 for information about our use of non-GAAP measures and definitions of OIBDA, Adjusted OIBDA and free cash flow and Table 8 for footnotes.
TABLE 2*
Mediacom Communications Corporation
Selected Combined Financial and Operating Data
(Dollars in thousands, except per unit data)
(Unaudited)
Year Ended
December 31,
2020
2019
YoY% Change
High-speed data (“HSD”)
$
943,988
$
840,958
12.3
%
Video
707,510
738,542
(4.2
%)
Phone
117,919
119,145
(1.0
%)
Business services
294,966
285,403
3.4
%
Advertising
66,841
47,192
41.6
%
Total revenues
$
2,131,224
$
2,031,240
4.9
%
Service costs
(856,916
)
(854,862
)
0.2
%
SG&A expenses
(325,259
)
(325,881
)
(0.2
%)
Management fees
(53,000
)
(44,000
)
20.5
%
OIBDA (a)
$
896,049
$
806,497
11.1
%
Non-cash, share based compensation
2,828
1,539
83.8
%
Adjusted OIBDA (a)
$
898,877
$
808,036
11.2
%
Cash interest expense (a)
(39,887
)
(92,524
)
(56.9
%)
Capital expenditures
(320,953
)
(296,597
)
8.2
%
Free cash flow (a)
$
538,037
$
418,915
28.4
%
Adjusted OIBDA margin (b)
42.2
%
39.8
%
December 31, 2020
December 31, 2019
YoY% Change
HSD customers
1,438,000
1,328,000
8.3
%
Video customers
643,000
710,000
(9.4
%)
Phone customers
586,000
613,000
(4.4
%)
Primary service units (“PSUs”)
2,667,000
2,651,000
0.6
%
HSD customer increases
110,000
64,000
Video customer declines
(67,000
)
(66,000
)
Phone customer declines
(27,000
)
(1,000
)
Annual PSU increases (declines)
16,000
(3,000
)
December 31, 2020
December 31, 2019
Total debt (c)
$
1,750,000
$
2,215,000
Cash
(36,414
)
(29,733
)
Net debt
$
1,713,586
$
2,185,267
Unused lines of credit (d)
$
679,606
$
628,823
Net leverage ratio (e)
1.91x
2.70x
Interest coverage ratio (f)
22.54x
8.73x
_______________
* See Table 7 for information about our use of non-GAAP measures and definitions of OIBDA, Adjusted OIBDA and free cash flow and Table 8 for footnotes.
TABLE 3*
Mediacom Communications Corporation
Selected Combined Financial and Operating Data
(Dollars in thousands, except per unit data)
(Unaudited)
Three Months Ended
December 31, 2020
Mediacom
Broadband
Mediacom LLC
Eliminations
Mediacom
Combined
High-speed data (“HSD”)
$
133,228
$
116,575
―
$
249,803
Video
89,272
77,386
―
166,658
Phone
15,632
13,648
―
29,280
Business services
44,617
29,704
―
74,321
Advertising
25,916
3,388
―
29,304
Total revenues
$
308,665
$
240,701
―
$
549,366
Service costs
(109,791
)
(95,899
)
―
(205,690
)
SG&A expenses
(49,611
)
(32,001
)
―
(81,612
)
Management fees
(9,600
)
(6,400
)
―
(16,000
)
OIBDA (a)
$
139,663
$
106,401
―
$
246,064
Investment income from affiliate
―
4,500
(4,500
)
―
Non-cash share-based compensation
385
322
―
707
Adjusted OIBDA (a)
$
140,048
$
111,223
(4,500
)
$
246,771
Cash interest expense (a)
(3,214
)
(3,593
)
―
(6,807
)
Capital expenditures
(45,832
)
(42,763
)
―
(88,595
)
Dividend to preferred members
(4,500
)
―
4,500
―
Free cash flow (a)
$
86,502
$
64,867
―
$
151,369
Mediacom
Broadband
Mediacom LLC
Mediacom
Combined
HSD customers
784,000
654,000
1,438,000
Video customers
350,000
293,000
643,000
Phone customers
320,000
266,000
586,000
Primary service units (“PSUs”)
1,454,000
1,213,000
2,667,000
HSD customer increases
3,000
10,000
13,000
Video customer declines
(11,000
)
(9,000
)
(20,000
)
Phone customer declines
(8,000
)
(5,000
)
(13,000
)
Quarterly PSU declines
(16,000
)
(4,000
)
(20,000
)
Mediacom
Broadband
Mediacom LLC
Mediacom
Combined
Total debt (c)
$
905,313
$
844,688
$
1,750,000
Cash
(19,008
)
(17,406
)
(36,414
)
Net debt
$
886,305
$
827,282
$
1,713,586
Unused lines of credit (d)
$
365,846
$
313,760
$
679,606
Net leverage ratio (e)
1.58x
1.86x
1.74x
Interest coverage ratio (f)
43.57x
30.96x
36.25x
_______________
* See Table 7 for information about our use of non-GAAP measures and definitions of OIBDA, Adjusted OIBDA and free cash flow and Table 8 for footnotes.
Due to rounding of Mediacom Broadband and Mediacom LLC results, slight differences may exist with actual Mediacom Combined results.
TABLE 4*
Mediacom Communications Corporation
Selected Combined Financial and Operating Data
(Dollars in thousands, except per unit data)
(Unaudited)
Three Months Ended
December 31, 2019
Mediacom
Broadband
Mediacom LLC
Eliminations
Mediacom
Combined
High-speed data (“HSD”)
$
117,823
$
99,997
―
$
217,820
Video
96,878
81,775
―
178,653
Phone
16,103
13,823
―
29,926
Business services
44,103
28,536
―
72,639
Advertising
12,737
2,140
―
14,877
Total revenues
$
287,644
$
226,271
―
$
513,915
Service costs
(112,217
)
(96,574
)
―
(208,791
)
SG&A expenses
(49,038
)
(32,705
)
―
(81,743
)
Management fees
(6,900
)
(4,600
)
―
(11,500
)
OIBDA (a)
$
119,489
$
92,392
―
$
211,881
Investment income from affiliate
―
4,500
(4,500
)
―
Non-cash share-based compensation
204
181
―
385
Adjusted OIBDA (a)
$
119,693
$
97,073
(4,500
)
$
212,266
Cash interest expense (a)
(10,313
)
(9,357
)
―
(19,670
)
Capital expenditures
(36,615
)
(33,900
)
―
(70,515
)
Dividend to preferred members
(4,500
)
―
4,500
―
Free cash flow (a)
$
68,265
$
53,816
―
$
122,081
Mediacom
Broadband
Mediacom LLC
Mediacom
Combined
HSD customers
732,000
596,000
1,328,000
Video customers
389,000
321,000
710,000
Phone customers
338,000
275,000
613,000
Primary service units (“PSUs”)
1,459,000
1,192,000
2,651,000
HSD customer increases
6,000
6,000
12,000
Video customer declines
(11,000
)
(8,000
)
(19,000
)
Phone customer declines
(2,000
)
(1,000
)
(3,000
)
Quarterly PSU declines
(7,000
)
(3,000
)
(10,000
)
Mediacom
Broadband
Mediacom LLC
Mediacom
Combined
Total debt (c)
$
1,102,625
$
1,112,375
$
2,215,000
Cash
(15,482
)
(14,251
)
(29,733
)
Net debt
$
1,087,143
$
1,098,124
$
2,185,267
Unused lines of credit (d)
$
266,871
$
361,952
$
628,823
Net leverage ratio (e)
2.27x
2.83x
2.57x
Interest coverage ratio (f)
11.61x
10.37x
10.79x
_______________
* See Table 7 for information about our use of non-GAAP measures and definitions of OIBDA, Adjusted OIBDA and free cash flow and Table 8 for footnotes.
Due to rounding of Mediacom Broadband and Mediacom LLC results, slight differences may exist with actual Mediacom Combined results.
TABLE 5*
Mediacom Communications Corporation
Selected Combined Financial and Operating Data
(Dollars in thousands, except per unit data)
(Unaudited)
Year Months Ended
December 31, 2020
Mediacom
Broadband
Mediacom LLC
Eliminations
Mediacom
Combined
High-speed data (“HSD”)
$
505,822
$
438,166
―
$
943,988
Video
380,358
327,152
―
707,510
Phone
63,213
54,706
―
117,919
Business services
177,651
117,315
―
294,966
Advertising
58,217
8,624
―
66,841
Total revenues
$
1,185,261
$
945,963
―
$
2,131,224
Service costs
(459,973
)
(396,943
)
―
(856,916
)
SG&A expenses
(197,153
)
(128,106
)
―
(325,259
)
Management fees
(31,800
)
(21,200
)
―
(53,000
)
OIBDA (a)
$
496,335
$
399,714
―
$
896,049
Investment income from affiliate
―
18,000
(18,000
)
―
Non-cash share-based compensation
1,509
1,319
―
2,828
Adjusted OIBDA (a)
$
497,844
$
419,033
(18,000
)
$
898,877
Cash interest expense (a)
(19,462
)
(20,425
)
―
(39,887
)
Capital expenditures
(164,959
)
(155,994
)
―
(320,953
)
Dividend to preferred members
(18,000
)
―
18,000
―
Free cash flow (a)
$
295,423
$
242,614
―
$
538,037
Mediacom
Broadband
Mediacom LLC
Mediacom
Combined
HSD customers
784,000
654,000
1,438,000
Video customers
350,000
293,000
643,000
Phone customers
320,000
266,000
586,000
Primary service units (“PSUs”)
1,454,000
1,213,000
2,667,000
HSD customer increases
52,000
58,000
110,000
Video customer declines
(39,000
)
(28,000
)
(67,000
)
Phone customer declines
(18,000
)
(9,000
)
(27,000
)
Annual PSU (declines) increases
(5,000
)
21,000
16,000
Mediacom
Broadband
Mediacom LLC
Mediacom
Combined
Total debt (c)
$
905,313
$
844,688
$
1,750,000
Cash
(19,008
)
(17,406
)
(36,414
)
Net debt
$
886,305
$
827,282
$
1,713,586
Unused lines of credit (d)
$
365,846
$
313,760
$
679,606
Net leverage ratio (e)
1.78x
1.97x
1.91x
Interest coverage ratio (f)
25.58x
20.52x
22.54x
_______________
* See Table 7 for information about our use of non-GAAP measures and definitions of OIBDA, Adjusted OIBDA and free cash flow and Table 8 for footnotes.
Due to rounding of Mediacom Broadband and Mediacom LLC results, slight differences may exist with actual Mediacom Combined results.
TABLE 6*
Mediacom Communications Corporation
Selected Combined Financial and Operating Data
(Dollars in thousands, except per unit data)
(Unaudited)
Year Ended
December 31, 2019
Mediacom
Broadband
Mediacom LLC
Eliminations
Mediacom
Combined
High-speed data (“HSD”)
$
455,828
$
385,130
―
$
840,958
Video
402,240
336,302
―
738,542
Phone
64,343
54,802
―
119,145
Business services
173,822
111,581
―
285,403
Advertising
39,578
7,614
―
47,192
Total revenues
$
1,135,811
$
895,429
―
$
2,031,240
Service costs
(461,663
)
(393,199
)
―
(854,862
)
SG&A expenses
(196,527
)
(129,354
)
―
(325,881
)
Management fees
(26,400
)
(17,600
)
―
(44,000
)
OIBDA (a)
$
451,221
$
355,276
―
$
806,497
Investment income from affiliate
―
18,000
(18,000
)
―
Non-cash share-based compensation
816
723
―
1,539
Adjusted OIBDA (a)
$
452,037
$
373,999
(18,000
)
$
808,036
Cash interest expense (a)
(48,972
)
(43,552
)
―
(92,524
)
Capital expenditures
(155,704
)
(140,893
)
―
(296,597
)
Dividend to preferred members
(18,000
)
―
18,000
―
Free cash flow (a)
$
229,361
$
189,554
―
$
418,915
Mediacom
Broadband
Mediacom LLC
Mediacom
Combined
HSD customers
732,000
596,000
1,328,000
Video customers
389,000
321,000
710,000
Phone customers
338,000
275,000
613,000
Primary service units (“PSUs”)
1,459,000
1,192,000
2,651,000
HSD customer increases
33,000
31,000
64,000
Video customer declines
(39,000
)
(27,000
)
(66,000
)
Phone customer declines
(1,000
)
―
(1,000
)
Annual PSU (declines) increases
(7,000
)
4,000
(3,000
)
Mediacom
Broadband
Mediacom LLC
Mediacom
Combined
Total debt (c)
$
1,102,625
$
1,112,375
$
2,215,000
Cash
(15,482
)
(14,251
)
(29,733
)
Net debt
$
1,087,143
$
1,098,124
$
2,185,267
Unused lines of credit (d)
$
266,871
$
361,952
$
628,823
Net leverage ratio (e)
2.40x
2.94x
2.70x
Interest coverage ratio (f)
9.23x
8.59x
8.73x
_______________
* See Table 7 for information about our use of non-GAAP measures and definitions of OIBDA, Adjusted OIBDA and free cash flow and Table 8 for footnotes.
Due to rounding of Mediacom Broadband and Mediacom LLC results, slight differences may exist with actual Mediacom Combined results.
TABLE 7
Use of Non-GAAP Financial Measures
“OIBDA,” “Adjusted OIBDA,” “cash interest expense” and “free cash flow” are not financial measures calculated in accordance with generally accepted accounting principles (“GAAP”) in the United States. We define OIBDA as operating income before depreciation and amortization and Adjusted OIBDA as OIBDA plus investment income from affiliate and excluding non-cash share-based compensation. OIBDA and Adjusted OIBDA may not be comparable to similarly titled measures used by other companies, which may have different depreciation and amortization policies, and are key components in our covenant calculations.
We define cash interest expense as interest expense, net, less amortization of deferred financing costs. Cash interest expense excludes the amortization of financing costs which were paid upon the financing of the relevant debt.
For Mediacom Broadband LLC, we define free cash flow as Adjusted OIBDA less capital expenditures, cash interest expense and dividends to preferred members. For Mediacom LLC, we define free cash flow as Adjusted OIBDA less capital expenditures and cash interest expense. Free cash flow may not be comparable to similarly titled measures reported by other companies.
Reference to “Mediacom Combined” reflects the combined results of Mediacom Broadband LLC and Mediacom LLC, eliminating intercompany amounts.
TABLE 8
Footnotes
See Table 7 for information regarding our use of non-GAAP financial measures.
Represents Adjusted OIBDA as a percentage of total revenues.
Total debt excludes the effect of deferred financing costs, net.
Represents unused and available commitments under our revolving credit facilities after giving effect to outstanding borrowings and letters of credit
Represents net debt at period end divided by annualized Adjusted OIBDA for the period.
Represents Adjusted OIBDA divided by cash interest expense for the period.
About Mediacom
Mediacom Communications Corporation is the 5th largest cable operator in the U.S. serving over 1.4 million customers in smaller markets primarily in the Midwest and Southeast. Mediacom offers a wide array of information, communications and entertainment services to households and businesses, including video, high-speed data, phone, and home security and automation. Through Mediacom Business, the company provides innovative broadband solutions to commercial and public sector customers of all sizes, and sells advertising and production services under the OnMedia brand. More information about Mediacom is available at www.mediacomcable.com.
Contacts
Investor RelationsJack P. Griffin
Group Vice President,
Corporate Finance
(845) 443-2654
Media RelationsThomas J. Larsen
Senior Vice President,
Government and Public Relations
(845) 443-2754
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