Earnings

Mediacom Combined Earnings

Mediacom Communications Reports Combined Results for Second Quarter 2019

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

Mediacom Combined Results for Second Quarter 2019*

  • Revenues were $508.9 million, reflecting a 4.2% increase from the prior year period
  • Adjusted OIBDA was $201.9 million, reflecting an 9.1% increase from the prior year period
  • Capital expenditures were $77.5 million, compared to $76.9 million in the prior year period
  • Free cash flow was $100.1 million, compared to $86.6 million in the prior year period
  • Ending primary service units (“PSUs”) of 2,666,000, a 0.3% increase from June 30, 2018
  • Ending customer relationships of 1,368,000, unchanged from June 30, 2018
  • Total leverage ratio of 2.98x, compared to 3.35x at June 30, 2018
  • Interest coverage ratio of 8.32x, compared to 8.59x at June 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 August [1], 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 
June 30,

   

 

 

 

 

2019

 

 

 

2018

 

 

YoY % Change

High-speed data (“HSD”)

$

208,983

 

 

$

184,190

 

 

13.5

%

Video

 

188,141

 

 

 

195,427

 

 

(3.7

%)

Phone

 

29,917

 

 

 

28,389

 

 

5.4

%

Business services

 

71,304

 

 

 

68,062

 

 

4.8

%

Advertising

 

10,546

 

 

 

12,356

 

 

(14.6

%)

Total revenues

$

508,891

 

 

$

488,424

 

 

4.2

%

Service costs

 

(216,808

)

 

 

(212,641

)

 

2.0

%

SG&A expenses

 

(80,553

)

 

 

(81,671

)

 

(1.4

%)

Management fees

 

(10,000

)

 

 

(9,000

)

 

11.1

%

OIBDA (a)

$

201,530

 

 

$

185,112

 

 

8.9

%

Deferred compensation

 

385

 

 

   

 

Adjusted OIBDA (a)

$

201,915

 

 

$

185,112

 

 

9.1

%

Cash interest expense (a)

 

(24,265

)

 

 

(21,556

)

 

12.6

%

Capital expenditures

 

(77,533

)

 

 

(76,907

)

 

0.8

%

Free cash flow (a)

$

100,117

 

 

$

86,649

 

 

15.5

%

 

 

 

 

   

 

 

Adjusted OIBDA margin (b)

 

39.7

%

 

 

37.9

%

 

 

 

 

 

 

 

   

 

 

 

 

 

 

   

 

 

 

June 30, 2019

 

June 30, 2018

   

YoY % Change

HSD customers

 

1,303,000

 

 

 

1,251,000

 

 

4.2

%

Video customers

 

747,000

 

 

 

808,000

 

 

(7.5

%)

Phone customers

 

616,000

 

 

 

599,000

 

 

2.8

%

Primary service units (“PSUs”)

 

2,666,000

 

 

 

2,658,000

 

 

0.3

%

 

 

 

 

   

 

 

HSD customer increases

 

15,000

 

 

 

23,000

 

 

 

 

Video customer declines

 

(17,000

)

 

 

(9,000

)

 

 

 

Phone customer (declines) increases

 

(1,000

)

 

 

17,000

 

 

 

 

Quarterly PSU (declines) increases

 

(3,000

)

 

 

31,000

 

 

 

 

 

 

 

 

   

 

 

Customer relationships (c)

 

1,368,000

 

 

 

1,368,000

 

 

0.0

%

 

 

 

 

   

 

 

Average total monthly revenue per:

 

 

 

   

 

 

PSU (d)

$

63.59

 

 

$

61.61

 

 

3.2

%

Customer relationship (e)

$

124.04

 

 

$

119.23

 

 

4.0

%

 

 

 

 

   

 

 

 

 

 

 

   

 

 

 

June 30, 2019

 

June 30, 2018

 

 

 

Bank credit facility

$

2,360,000

 

 

$

2,280,000

 

 

 

 

5½% senior notes due 2021

 

50,000

 

 

 

200,000

 

 

 

 

Total debt (f)

$

2,410,000

 

 

$

2,480,000

 

 

 

 

 

 

 

 

   

 

 

Total leverage ratio (g)

2.98x

 

3.35x

   

 

 

Interest coverage ratio (h)

8.32x

 

8.59x

   

 

 

* 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 
June 30, 2019

 

Mediacom 
Broadband

   

Mediacom 
LLC

  Eliminations  

Mediacom 
Combined

HSD

$

113,331

 

 

$

95,652

 

 

$

   

$

208,983

 

Video

 

102,629

 

 

 

85,512

 

   

   

 

188,141

 

Phone

 

16,172

 

 

 

13,745

 

   

   

 

29,917

 

Business services

 

43,491

 

 

 

27,813

 

   

   

 

71,304

 

Advertising

 

8,780

 

 

 

1,766

 

   

   

 

10,546

 

Total revenues

$

284,403

 

 

$

224,488

 

 

$

   

$

508,891

 

Service costs

 

(117,413

)

 

 

(99,395

)

   

   

 

(216,808

)

SG&A expenses

 

(48,720

)

 

 

(31,833

)

   

   

 

(80,553

)

Management fees

 

(6,000

)

 

 

(4,000

)

   

   

 

(10,000

)

OIBDA (a)

$

112,270

 

 

$

89,260

 

 

$

   

$

201,530

 

Investment income from affiliate

   

 

4,500

 

   

 

(4,500

)

 

 

Deferred compensation

 

204

 

 

 

181

 

   

   

 

385

 

Adjusted OIBDA (a)

$

112,474

 

 

$

93,941

 

   

$

(4,500

)

 

$

201,915

 

Cash interest expense (a)

 

(12,653

)

 

 

(11,612

)

   

   

 

(24,265

)

Capital expenditures

 

(42,548

)

 

 

(34,985

)

   

   

 

(77,533

)

Dividend to preferred members

 

(4,500

)

 

     

 

4,500

 

 

 

Free cash flow (a)

$

52,773

 

 

$

47,344

 

 

$

   

$

100,117

 

 

 

   

 

     

 

   

 

 

 

 

   

 

     

 

   

 

 

 

Mediacom 
Broadband

 

Mediacom 
LLC

       

Mediacom 
Combined

HSD customers

 

721,000

 

 

 

582,000

 

   

 

   

 

1,303,000

 

Video customers

 

412,000

 

 

 

335,000

 

   

 

   

 

747,000

 

Phone customers

 

341,000

 

 

 

275,000

 

   

 

   

 

616,000

 

Primary service units (“PSUs”)

 

1,474,000

 

 

 

1,192,000

 

   

 

   

 

2,666,000

 

 

 

   

 

     

 

   

 

 

HSD customer increases

 

8,000

 

 

 

7,000

 

   

 

   

 

15,000

 

Video customer declines

 

(10,000

)

 

 

(7,000

)

   

 

   

 

(17,000

)

Phone customer declines

 

(1,000

)

 

     

 

   

 

(1,000

)

Quarterly PSU declines

 

(3,000

)

 

     

 

   

 

(3,000

)

 

 

   

 

     

 

   

 

 

Customer relationships (c)

 

760,000

 

 

 

608,000

 

   

 

   

 

1,368,000

 

 

 

   

 

     

 

   

 

 

Average total monthly revenue per:

 

   

 

     

 

   

 

 

PSU (d)

$

64.25

 

 

$

62.78

 

   

 

   

$

63.59

 

Customer relationship (e)

$

124.82

 

 

$

123.07

 

   

 

   

$

124.04

 

 

 

   

 

     

 

   

 

 

 

 

   

 

     

 

   

 

 

 

Mediacom 
Broadband

 

Mediacom 
LLC

       

Mediacom 
Combined

Bank credit facility

$

1,236,875

 

 

$

1,123,125

 

   

 

   

$

2,360,000

 

5½% senior notes due 2021

 

50,000

 

 

     

 

   

 

50,000

 

Total debt (f)

$

1,286,875

 

 

$

1,123,125

 

   

 

   

$

2,410,000

 

 

 

   

 

     

 

   

 

 

Total leverage ratio (g)

2.86x

   

2.99x

     

 

   

2.98x

 

Interest coverage ratio (h)

8.89x

   

8.09x

     

 

   

8.32x

 

* 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 
June 30, 2018

 

Mediacom 
Broadband

 

Mediacom 
LLC

  Eliminations  

Mediacom 
Combined

HSD

$

 

100,023

 

 

$

 

84,167

 

 

$

   

$

 

184,190

 

Video

 

107,812

 

 

 

87,615

 

   

   

 

195,427

 

Phone

 

15,271

 

 

 

13,118

 

   

   

 

28,389

 

Business services

 

41,682

 

 

 

26,380

 

   

   

 

68,062

 

Advertising

 

9,964

 

 

 

2,392

 

   

   

 

12,356

 

Total revenues

$

 

274,752

 

 

$

 

213,672

 

 

$

   

$

 

488,424

 

Service costs

 

(115,267

)

 

 

(97,374

)

   

   

 

(212,641

)

SG&A expenses

 

(49,102

)

 

 

(32,569

)

   

   

 

(81,671

)

Management fees

 

(5,350

)

 

 

(3,650

)

   

   

 

(9,000

)

OIBDA (a)

$

 

105,033

 

 

$

 

80,079

 

 

$

   

$

 

185,112

 

Investment income from affiliate

   

 

4,500

 

   

(4,500

)

 

 

Deferred compensation

   

     

   

 

Adjusted OIBDA (a)

$

 

105,033

 

 

$

 

84,579

 

 

$

(4,500

)

 

$

 

185,112

 

Cash interest expense (a)

 

(12,307

)

 

 

(9,249

)

   

   

 

(21,556

)

Capital expenditures

 

(40,439

)

 

 

(36,468

)

   

   

 

(76,907

)

Dividend to preferred members

 

(4,500

)

 

     

4,500

 

 

 

Free cash flow (a)

$

 

47,787

 

 

$

 

38,862

 

 

$

   

$

 

86,649

 

 

 

   

 

     

 

   

 

 

 

 

   

 

     

 

   

 

 

 

Mediacom 
Broadband

 

Mediacom 
LLC

         

Mediacom 
Combined

HSD customers

 

690,000

 

 

 

561,000

 

   

 

   

 

1,251,000

 

Video customers

 

447,000

 

 

 

361,000

 

   

 

   

 

808,000

 

Phone customers

 

332,000

 

 

 

267,000

 

   

 

   

 

599,000

 

Primary service units (“PSUs”)

 

1,469,000

 

 

 

1,189,000

 

   

 

   

 

2,658,000

 

 

 

   

 

     

 

   

 

 

HSD customer increases

 

11,000

 

 

 

12,000

 

   

 

   

 

23,000

 

Video customer declines

 

(6,000

)

 

 

(3,000

)

   

 

   

 

(9,000

)

Phone customer increases

 

9,000

 

 

 

8,000

 

   

 

   

 

17,000

 

Quarterly PSU increases

 

14,000

 

 

 

17,000

 

   

 

   

 

31,000

 

 

 

   

 

     

 

   

 

 

Customer relationships (c)

 

757,000

 

 

 

611,000

 

   

 

   

 

1,368,000

 

 

 

   

 

     

 

   

 

 

Average total monthly revenue per:

 

   

 

     

 

   

 

 

PSU (d)

$

 

62.64

 

 

$

 

60.33

 

   

 

   

$

 

61.61

 

Customer relationship (e)

$

 

121.06

 

 

$

 

116.95

 

   

 

   

$

 

119.23

 

 

 

   

 

     

 

   

 

 

 

 

   

 

     

 

   

 

 

 

Mediacom 
Broadband

 

Mediacom 
LLC

         

Mediacom 
Combined

Bank credit facility

$

 

1,127,500

 

 

$

 

1,152,500

 

   

 

   

$

 

2,280,000

 

5½% senior notes due 2021

 

200,000

 

 

     

 

   

 

200,000

 

Total debt (f)

$

 

1,327,500

 

 

$

 

1,152,500

 

   

 

   

$

 

2,480,000

 

 

 

   

 

     

 

   

 

 

Total leverage ratio (g)

3.16x

   

3.41x

     

 

   

3.35x

 

Interest coverage ratio (h)

8.53x

   

9.14x

     

 

   

8.59x

 

* 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

  1. See Table 4 for information regarding our use of non-GAAP financial measures.
  2. Represents Adjusted OIBDA as a percentage of total revenues.
  3. Represents the total number of customers that take at least one service, without regard to which service(s) customers purchase.
  4. Represents average total monthly revenues for the period divided by average PSUs for such period.
  5. Represents average total monthly revenues for the period divided by average customer relationships for such period.
  6. Total debt excludes the effect of deferred financing costs, net.
  7. Represents total debt at period end divided by annualized Adjusted OIBDA for the period.
  8. Represents Adjusted OIBDA divided by cash interest expense for the period.

Contacts

Investor Relations 
Jack P. Griffin 
Group Vice President, 
Corporate Finance 
(845) 443-2654

Media Relations 
Thomas J. Larsen 
Senior Vice President, 
Government and Public Relations 
(845) 443-2754