Mediacom Communications Reports Combined Results for Third Quarter 2019

Mediacom Communications Reports Combined Results for Third Quarter 2019

MEDIACOM PARK, N.Y.–(BUSINESS WIRE)–MEDIACOM COMMUNICATIONS CORPORATION today released combined unaudited financial and operating highlights for the three months ended September 30, 2019.

Mediacom Combined Results for Third Quarter 2019*

Revenues were $510.6 million, reflecting a 3.5% increase from the prior year period

Adjusted OIBDA was $198.3 million, reflecting an 7.8% increase from the prior year period

Capital expenditures were $75.9 million, compared to $80.7 million in the prior year period

Free cash flow was $98.5 million, compared to $81.5 million in the prior year period

Ending primary service units (“PSUs”) of 2,661,000, compared to 2,662,000 at September 30, 2018

Ending customer relationships of 1,367,000, compared to 1,365,000 at September 30, 2018

Total leverage ratio of 2.92x, compared to 3.26x at September 30, 2018

Interest coverage ratio of 8.28x, compared to 8.45x at September 30, 2018

Reference to “Mediacom Combined” reflects the combined results of Mediacom Broadband LLC and Mediacom LLC, eliminating intercompany amounts. Mediacom Combined information is being provided for convenience and informational purposes, and does not modify or supplement the separate financial and operating results of Mediacom Broadband LLC, which were previously released and filed with the SEC on Form 8-K on October 31, 2019.

About Mediacom

Mediacom Communications Corporation is the 5th largest cable operator in the United States and the leading gigabit broadband provider to smaller markets primarily in the Midwest and Southeast. Through its fiber-rich network, Mediacom provides high-speed data, video and phone services to nearly 1.4 million households and businesses across 22 states. The company delivers scalable broadband solutions to commercial and public sector customers of all sizes through Mediacom Business, and sells advertising and production services under the OnMedia brand. More information about Mediacom is available at www.mediacomcable.com.

TABLE 1*

 

Mediacom Communications Corporation
Selected Combined Financial and Operating Data
(Dollars in thousands, except per unit data)
(Unaudited)

 

 
 

 
 

 

Three Months Ended
September 30,

 

2019

 

2018

 

YoY % Change

High-speed data (“HSD”)

$

213,058

 

$

189,848

 

12.2

%

Video

 

184,027

 

 

191,622

 

(4.0

%)

Phone

 

29,876

 

 

28,789

 

3.8

%

Business services

 

72,053

 

 

68,515

 

5.2

%

Advertising

 

11,566

 

 

14,408

 

(19.7

%)

Total revenues

$

510,580

 

$

493,182

 

3.5

%

Service costs

 

(216,201

)

 

(213,050

)

1.5

%

SG&A expenses

 

(84,926

)

 

(85,584

)

(0.8

%)

Management fees

 

(11,500

)

 

(10,500

)

9.5

%

OIBDA (a)

$

197,953

 

$

184,048

 

7.6

%

Deferred compensation

 

384

 

 

 

Adjusted OIBDA (a)

$

198,337

 

$

184,048

 

7.8

%

Cash interest expense (a)

 

(23,960

)

 

(21,782

)

10.0

%

Capital expenditures

 

(75,890

)

 

(80,727

)

(6.0

%)

Free cash flow (a)

$

98,487

 

$

81,539

 

20.8

%

 

 

 

 

 

 

 

Adjusted OIBDA margin (b)

 

38.8

%

 

37.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

September 30, 2018

YoY % Change

HSD customers

 

1,316,000

 

 

1,260,000

 

4.4

%

Video customers

 

729,000

 

 

793,000

 

(8.1

%)

Phone customers

 

616,000

 

 

609,000

 

1.1

%

Primary service units (“PSUs”)

 

2,661,000

 

 

2,662,000

 

(0.0

%)

 

 

 

 

 

 

 

HSD customer increases

 

13,000

 

 

9,000

 

 

 

Video customer declines

 

(18,000

)

 

(15,000

)

 

 

Phone customer increases

 

 

10,000

 

 

 

Quarterly PSU (declines) increases

 

(5,000

)

 

4,000

 

 

 

 

 

 

 

 

 

 

Customer relationships (c)

 

1,367,000

 

 

1,365,000

 

0.1

%

 

 

 

 

 

 

 

Average total monthly revenue per:

 

 

 

 

 

 

PSU (d)

$

63.90

 

$

61.80

 

3.4

%

Customer relationship (e)

$

124.46

 

$

120.30

 

3.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

September 30, 2018

 

 

 

Bank credit facility

$

2,265,000

 

$

2,200,000

 

 

 

5½% senior notes due 2021

 

50,000

 

 

200,000

 

 

 

Total debt (f)

$

2,315,000

 

$

2,400,000

 

 

 

 

 

 

 

 

 

 

Total leverage ratio (g)

2.92x

 

3.26x

 

 

 

Interest coverage ratio (h)

8.28x

 

8.45x

 

 

 

* See Table 4 for information about our use of non-GAAP measures and definitions of Adjusted OIBDA and free cash flow and Table 5 for footnotes.

TABLE 2*

Mediacom Communications Corporation
Selected Combined Financial and Operating Data
(Dollars in thousands, except per unit data)
(Unaudited)

 
 
 

 

Three Months Ended
September 30, 2019

 

Mediacom
Broadband

Mediacom
LLC

 

Eliminations

Mediacom
Combined

HSD

$

115,238

 

$

97,820

 

 

$

 

$

213,058

 

Video

 

99,538

 

 

84,489

 

 

 

 

184,027

 

Phone

 

16,150

 

 

13,726

 

 

 

 

29,876

 

Business services

 

43,878

 

 

28,175

 

 

 

 

72,053

 

Advertising

 

9,706

 

 

1,860

 

 

 

 

11,566

 

Total revenues

$

284,510

 

$

226,070

 

 

$

 

$

510,580

 

Service costs

 

(116,634

)

 

(99,567

)

 

 

 

(216,201

)

SG&A expenses

 

(51,257

)

 

(33,669

)

 

 

 

(84,926

)

Management fees

 

(6,900

)

 

(4,600

)

 

 

 

(11,500

)

OIBDA (a)

$

109,719

 

$

88,234

 

 

 

$

197,953

 

Investment income from affiliate

 

 

 

4,500

$

(4,500

)

 

 

Deferred compensation

 

204

 

 

180

 

 

 

 

384

 

Adjusted OIBDA (a)

$

109,923

 

$

92,914

 

 

$

(4,500

)

$

198,337

 

Cash interest expense (a)

 

(12,919

)

 

(11,041

)

 

 

 

(23,960

)

Capital expenditures

 

(39,987

)

 

(35,903

)

 

 

 

(75,890

)

Dividend to preferred members

 

(4,500

)

 

 

 

 

4,500

 

 

Free cash flow (a)

$

52,517

 

$

45,970

 

 

$

$

98,487

 

 

 

 

 
 

 

 

 

 

 

 
 

 

 

Mediacom
Broadband

Mediacom
LLC

 
 

Mediacom
Combined

 

HSD customers

 

726,000

 

 

590,000

 

 

 

1,316,000

 

Video customers

 

400,000

 

 

329,000

 

 

 

729,000

 

Phone customers

 

340,000

 

 

276,000

 

 

 

616,000

 

Primary service units (“PSUs”)

 

1,466,000

 

 

1,195,000

 

 

 

2,661,000

 

 

 

 

 
 

 

 

HSD customer increases

 

5,000

 

 

8,000

 

 

 

13,000

 

Video customer declines

 

(12,000

)

 

(6,000

)

 

 

(18,000

)

Phone customer (declines) increases

 

(1,000

)

 

1,000

 

 

 

 

Quarterly PSU (declines) increases

 

(8,000

)

 

3,000

 

 

 

(5,000

)

 

 

 

 
 

 

 

Customer relationships (c)

 

757,000

 

 

610,000

 

 

 

1,367,000

 

 

 

 

 
 

 

 

Average total monthly revenue per:

 

 

 
 

 

 

PSU (d)

$

64.51

 

$

63.14

 

 

$

63.90

 

Customer relationship (e)

$

125.03

 

$

123.74

 

 

$

124.46

 

 

 

 

 
 

 

 

 

 

 

 
 

 

 

 

Mediacom
Broadband

Mediacom
LLC

 
 

Mediacom
Combined

 

Bank credit facility

$

1,147,250

 

$

1,117,750

 

 

$

2,265,000

 

5½% senior notes due 2021

 

50,000

 

 

 

 

 

50,000

 

Total debt (f)

$

1,197,250

 

$

1,117,750

 

 

$

2,315,000

 

 

 

 

 
 

 

 

Total leverage ratio (g)

2.72x

3.01x

 

 

2.92x

Interest coverage ratio (h)

8.51x

8.42x

 

 

8.28x

 

 

 

* See Table 4 for information about our use of non-GAAP measures and definitions of Adjusted OIBDA and free cash flow and Table 5 for footnotes.

TABLE 3*

Mediacom Communications Corporation
Selected Combined Financial and Operating Data
(Dollars in thousands, except per unit data)
(Unaudited)

 
 
 
 
 

 

Three Months Ended
September 30, 2018

 

Mediacom
Broadband

 

Mediacom
LLC

 

Eliminations

Mediacom
Combined

HSD

$

102,834

 

$

87,014

 

$

$

189,848 

Video

 

104,679

 

 

86,943

 

 

 

191,622

 

Phone

 

15,540

 

 

13,249

 

 

 

28,789

 

Business services

 

41,951

 

 

26,564

 

 

 

68,515

 

Advertising

 

11,390

 

 

3,018

 

 

 

14,408

 

Total revenues

$

276,394

 

$

216,788

 

$

$

493,182

 

Service costs

 

(115,781

)

 

(97,269

)

 

 

(213,050

)

SG&A expenses

 

(51,768

)

 

(33,816

)

 

 

(85,584

)

Management fees

 

(6,325

)

 

(4,175

)

 

 

(10,500

)

OIBDA (a)

$

102,520

 

$

81,528

 

$

$

184,048

 

Investment income from affiliate

 

 

4,500

 

 

(4,500

)

Deferred compensation

 

 

 

Adjusted OIBDA (a)

$

102,520

 

$

86,028

 

$

(4,500

)

$

184,048

 

Cash interest expense (a)

 

(12,009

)

 

(9,773

)

 

 

(21,782

)

Capital expenditures

 

(43,243

)

 

(37,484

)

 

 

(80,727

)

Dividend to preferred members

 

(4,500

)

 

 

4,500

 

Free cash flow (a)

$

42,768

 

$

38,771

 

$

$

81,539

 

 

 

 

 

 

 

 
 

 

 

 

 

 

 

 

 

 
 

 

 

 

Mediacom
Broadband

 

Mediacom
LLC

 

 
 

Mediacom
Combined

 

HSD customers

 

694,000

 

 

566,000

 

 

 
 

 

1,260,000

 

Video customers

 

437,000

 

 

356,000

 

 

 
 

 

793,000

 

Phone customers

 

336,000

 

 

273,000

 

 

 
 

 

609,000

 

Primary service units (“PSUs”)

 

1,467,000

 

 

1,195,000

 

 

 
 

 

2,662,000

 

 

 

 

 

 

 

 
 

 

 

HSD customer increases

 

4,000

 

 

5,000

 

 

 
 

 

9,000

 

Video customer declines

 

(10,000

)

 

(5,000

)

 

 
 

 

(15,000

)

Phone customer increases

 

4,000

 

 

6,000

 

 

 
 

 

10,000

 

Quarterly PSU (declines) increases

 

(2,000

)

 

6,000

 

 

 
 

 

4,000

 

 

 

 

 

 

 

 
 

 

 

Customer relationships (c)

 

756,000

 

 

609,000

 

 

 
 

 

1,365,000

 

 

 

 

 

 

 

 
 

 

 

Average total monthly revenue per:

 

 

 

 

 

 
 

 

 

PSU (d)

$

62.76

 

$

60.62

 

 

 
 

$

61.80

 

Customer relationship (e)

$

121.79

 

$

118.46

 

 

 
 

$

120.30

 

 

 

 

 

 

 

 
 

 

 

 

 

 

 

 

 

 
 

 

 

 

Mediacom
Broadband

 

Mediacom
LLC

 

 
 

Mediacom
Combined

 

Bank credit facility

$

1,060,750

 

$

1,139,250

 

 

 
 

$

2,200,000

 

5½% senior notes due 2021

 

200,000

 

 

 

 
 

 

200,000

 

Total debt (f)

$

1,260,750

 

$

1,139,250

 

 

 
 

$

2,400,000

 

 

 

 

 

 

 

 
 

 

 

Total leverage ratio (g)

3.07x

 

3.31x

 

 

 
 

3.26x

 

Interest coverage ratio (h)

8.54x

 

8.80x 

 

 

 
 

8.45x

 

* See Table 4 for information about our use of non-GAAP measures and definitions of Adjusted OIBDA and free cash flow and Table 5 for footnotes.

TABLE 4
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 deferred 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.

We define free cash flow as Adjusted OIBDA less capital expenditures, cash interest expense and dividends to preferred members. Free cash flow may not be comparable to similarly titled measures reported by other companies.

TABLE 5
Footnotes

(a)

See Table 4 for information regarding our use of non-GAAP financial measures.

(b)

Represents Adjusted OIBDA as a percentage of total revenues.

(c)

Represents the total number of customers that take at least one service, without regard to which service(s) customers purchase.

(d)

Represents average total monthly revenues for the period divided by average PSUs for such period.

(e)

Represents average total monthly revenues for the period divided by average customer relationships for such period.

(f)

Total debt excludes the effect of deferred financing costs, net.

(g)

Represents total debt at period end divided by annualized Adjusted OIBDA for the period.

(h)

Represents Adjusted OIBDA divided by cash interest expense for the period.

 
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

No Comments

Sorry, the comment form is closed at this time.