Earnings

Mediacom Combined Earnings

Mediacom Communications Reports Combined Results for First Quarter 2020

MEDIACOM PARK, N.Y.--(BUSINESS WIRE)--MEDIACOM COMMUNICATIONS CORPORATION today released combined unaudited financial and operating highlights for the three months ended March 31, 2020.

Mediacom Combined Results for First Quarter 2020*

  • Revenues were $517.5 million, reflecting a 3.9% increase from the prior year period
  • Adjusted OIBDA was $205.1 million, reflecting an 4.9% increase from the prior year period
  • Capital expenditures were $76.7 million, compared to $72.7 million in the prior year period
  • Free cash flow was $112.6 million, compared to $98.2 million in the prior year period
  • Ending high-speed data (“HSD”) customers of 1,349,000, a 4.7% increase from March 31, 2019
  • Ending customer relationships of 1,377,000, a 0.7% increase from March 31, 2019
  • Net leverage ratio of 2.57x, compared to 2.82x at March 31, 2019
  • Interest coverage ratio of 12.93x, compared to 7.94x at March 31, 2019

Reference to “Mediacom Combined” reflects the combined results of Mediacom Broadband LLC and Mediacom LLC, eliminating intercompany amounts.

About Mediacom

Mediacom Communications Corporation is the 5th largest cable operator in the U.S. serving almost 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.

TABLE 1*

Mediacom Communications Corporation

Selected Combined Financial and Operating Data

(Dollars in thousands, except per unit data)

(Unaudited)

 

 

 

   

 

 

 

 

Three Months Ended
March 31,

 

 

 

 

2020

 

2019

 

YoY% Change

High-speed data (“HSD”)

 

$

223,449

 

 

$

201,097

 

 

11.1

%

Video

 

 

181,294

 

 

 

187,721

 

 

(3.4

%)

Phone

 

 

29,697

 

 

 

29,426

 

 

0.9

%

Business services

 

 

70,638

 

 

 

69,407

 

 

1.8

%

Advertising

 

 

12,398

 

 

 

10,203

 

 

21.5

%

Total revenues

 

$

517,476

 

 

$

497,854

 

 

3.9

%

Service costs

 

 

(216,068

)

 

 

(213,062

)

 

1.4

%

SG&A expenses

 

 

(84,975

)

 

 

(78,659

)

 

8.0

%

Management fees

 

 

(12,000

)

 

 

(11,000

)

 

9.1

%

OIBDA (a)

 

$

204,433

 

 

$

195,133

 

 

4.8

%

Non-cash, share based compensation

 

 

707

 

 

 

385

 

 

83.6

%

Adjusted OIBDA (a)

 

$ 

205,140 

 

 

$ 

195,518 

 

 

4.9

%

Cash interest expense (a)

 

 

(15,869

)

 

 

(24,629

)

 

(35.6

%)

Capital expenditures

 

 

(76,689

)

 

 

(72,659

)

 

5.5

%

Free cash flow (a)

 

$

112,582

 

 

$

98,230

 

 

14.6

%

 

 

 

   

 

   

 

Adjusted OIBDA margin (b)

 

 

39.6

%

 

 

39.3

%

 

 

 

 

 

   

 

   

 

 

 

 

   

 

   

 

 

 

March 31, 2020

   

March 31, 2019

   

YoY% Change

HSD customers

 

 

1,349,000

 

 

 

1,288,000

 

 

4.7

%

Video customers

 

 

693,000

 

 

 

764,000

 

 

(9.3

%)

Phone customers

 

 

608,000

 

 

 

617,000

 

 

(1.5

%)

Primary service units (“PSUs”)

 

 

2,650,000

 

 

 

2,669,000

 

 

(0.7

%)

 

 

 

   

 

   

 

HSD customer increases

 

 

21,000

 

 

 

24,000

 

 

 

Video customer declines

 

 

(17,000

)

 

 

(12,000

)

 

 

Phone customer (declines) increases

 

 

(5,000

)

 

 

3,000

 

 

 

Quarterly PSU (declines) increases

 

 

(1,000

)

 

 

15,000

 

 

 

 

 

 

   

 

   

 

Customer relationships (c)

 

 

1,377,000

 

 

 

1,367,000

 

 

0.7

%

 

 

 

   

 

   

 

Average total monthly revenue per:

 

 

   

 

   

 

PSU (d)

 

$

65.08

 

 

$

62.35

 

 

4.4

%

Customer relationship (e)

 

$

125.91

 

 

$

121.84

 

 

3.3

%

 

 

 

   

 

   

 

 

 

 

   

 

   

 

 

 

March 31, 2020

 

March 31, 2019

 

 

Bank credit facility

 

$

2,140,000

 

 

$

2,147,750

 

 

 

5½% senior notes due 2021

 

   

 

200,000

 

 

 

Total debt (f)

 

$

2,140,000

 

 

$

2,347,750

 

 

 

Cash

 

 

(32,484

)

 

 

(145,723

)

 

 

Net debt

 

$

2,107,516

 

 

$

2,202,027

 

 

 

 

 

 

   

 

   

 

Net leverage ratio (g)

 

2.57x

 

 

2.82x

 

 

 

Interest coverage ratio (h)

 

12.93x

 

 

7.94x

 

 

 

                 

* See Table 4 for information about our use of non-GAAP measures and definitions of 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
March 31, 2020

 

 

Mediacom
Broadband

 

Mediacom
LLC

 

Eliminations

 

Mediacom
Combined

High-speed data (“HSD”)

 

$

120,810

 

 

$

102,639

 

 

 

$

223,449

 

Video

 

 

98,266

 

 

 

83,028

 

 

 

 

181,294

 

Phone

 

 

16,010

 

 

 

13,687

 

 

 

 

29,697

 

Business services

 

 

42,818

 

 

 

27,820

 

 

 

 

70,638

 

Advertising

 

 

10,610

 

 

 

1,788

 

 

 

 

12,398

 

Total revenues

 

$

288,514

 

 

$

228,962

 

 

 

$

517,476

 

Service costs

 

 

(116,492

)

 

 

(99,576

)

 

 

 

(216,068

)

SG&A expenses

 

 

(51,519

)

 

 

(33,456

)

 

 

 

(84,975

)

Management fees

 

 

(7,200

)

 

 

(4,800

)

 

 

 

(12,000

)

OIBDA (a)

 

$

113,303

 

 

$

91,130

 

 

 

$

204,433

 

Investment income from affiliate

 

   

 

4,500

 

 

(4,500)

 

 

Non-cash share-based compensation

 

 

375

 

 

 

332

 

 

 

 

707

 

Adjusted OIBDA (a)

 

$

113,678

 

 

$

95,962

 

 

(4,500)

 

$

205,140

 

Cash interest expense (a)

 

 

(8,048

)

 

 

(7,821

)

 

 

 

(15,869

)

Capital expenditures

 

 

(40,017

)

 

 

(36,672

)

 

 

 

(76,689

)

Dividend to preferred members

 

 

(4,500

)

 

   

4,500

 

 

Free cash flow (a)

 

$

61,113

 

 

$

51,469

 

 

 

$

112,582

 

 

 

 

   

 

   

 

 

 

 

 

 

 

   

 

   

 

 

 

 

 

 

Mediacom
Broadband

 

Mediacom
LLC

     

Mediacom
Combined

HSD customers

 

 

743,000

 

 

 

606,000

 

 

 

 

 

1,349,000

 

Video customers

 

 

380,000

 

 

 

313,000

 

 

 

 

 

693,000

 

Phone customers

 

 

335,000

 

 

 

273,000

 

 

 

 

 

608,000

 

Primary service units (“PSUs”)

 

 

1,458,000

 

 

 

1,192,000

 

 

 

 

 

2,650,000

 

 

 

 

   

 

   

 

 

 

 

HSD customer increases

 

 

11,000

 

 

 

10,000

 

 

 

 

 

21,000

 

Video customer declines

 

 

(9,000

)

 

 

(8,000

)

 

 

 

 

(17,000

)

Phone customer declines

 

 

(3,000

)

 

 

(2,000

)

 

 

 

 

(5,000

)

Quarterly PSU declines

 

 

(1,000

)

 

   

 

 

 

(1,000

)

 

 

 

   

 

   

 

 

 

 

Customer relationships (c)

 

 

762,000

 

 

 

615,000

 

 

 

 

 

1,377,000

 

 

 

 

   

 

   

 

 

 

 

Average total monthly revenue per:

 

 

   

 

   

 

 

 

 

PSU (d)

 

$

65.94

 

 

$

64.03

 

 

 

 

$

65.08

 

Customer relationship (e)

 

$

127.04

 

 

$

124.50

 

 

 

 

$

125.91

 

 

 

 

   

 

   

 

 

 

 

 

 

 

   

 

   

 

 

 

 

 

 

Mediacom
Broadband

 

Mediacom
LLC

     

Mediacom
Combined

Bank credit facility

 

$

1,042,500

 

 

$

1,097,500

 

 

 

 

$

2,140,000

 

5½% senior notes due 2021

 

   

   

 

 

 

Total debt (f)

 

$

1,042,500

 

 

$

1,097,500

 

 

 

 

$

2,140,000

 

Cash

 

 

(16,957

)

 

 

(15,527

)

 

 

 

 

(32,484

)

Net debt

 

$

1,025,543

 

 

$

1,081,973

 

 

 

 

$

2,107,516

 

 

 

 

   

 

   

 

 

 

 

Net leverage ratio (g)

 

2.26x

 

 

2.82x

 

 

 

 

2.57x

 

Interest coverage ratio (h)

 

14.13x

 

 

12.27x

 

 

 

 

12.93x

 

                       

* See Table 4 for information about our use of non-GAAP measures and definitions of 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
March 31, 2019

 

 

Mediacom
Broadband

 

Mediacom
LLC

 

Eliminations

 

Mediacom
Combined

High-speed data (“HSD”)

 

$

109,436

 

 

$

91,661

 

 

 

$

201,097

 

Video

 

 

103,195

 

 

 

84,526

 

 

 

 

187,721

 

Phone

 

 

15,918

 

 

 

13,508

 

 

 

 

29,426

 

Business services

 

 

42,350

 

 

 

27,057

 

 

 

 

69,407

 

Advertising

 

 

8,355

 

 

 

1,848

 

 

 

 

10,203

 

Total revenues

 

$

279,254

 

 

$

218,600

 

 

 

$

497,854

 

Service costs

 

 

(115,399

)

 

 

(97,663

)

 

 

 

(213,062

)

SG&A expenses

 

 

(47,512

)

 

 

(31,147

)

 

 

 

(78,659

)

Management fees

 

 

(6,600

)

 

 

(4,400

)

 

 

 

(11,000

)

OIBDA (a)

 

$

109,743

 

 

$

85,390

 

 

 

$

195,133

 

Investment income from affiliate

 

   

 

4,500

 

 

(4,500)

 

 

Non-cash share-based compensation

 

 

204

 

 

 

181

 

 

 

 

385

 

Adjusted OIBDA (a)

 

$

109,947

 

 

$

90,071

 

 

(4,500)

 

$

195,518

 

Cash interest expense (a)

 

 

(13,087

)

 

 

(11,542

)

 

 

 

(24,629

)

Capital expenditures

 

 

(36,554

)

 

 

(36,105

)

 

 

 

(72,659

)

Dividend to preferred members

 

 

(4,500

)

 

   

4,500

 

 

Free cash flow (a)

 

$

55,806

 

 

$

42,424

 

 

 

$

98,230

 

 

 

 

   

 

   

 

 

 

 

 

 

 

   

 

   

 

 

 

 

 

 

Mediacom
Broadband

 

Mediacom
LLC

     

Mediacom
Combined

HSD customers

 

 

713,000

 

 

 

575,000

 

 

 

 

 

1,288,000

 

Video customers

 

 

422,000

 

 

 

342,000

 

 

 

 

 

764,000

 

Phone customers

 

 

342,000

 

 

 

275,000

 

 

 

 

 

617,000

 

Primary service units (“PSUs”)

 

 

1,477,000

 

 

 

1,192,000

 

 

 

 

 

2,669,000

 

 

 

 

   

 

   

 

 

 

 

HSD customer increases

 

 

14,000

 

 

 

10,000

 

 

 

 

 

24,000

 

Video customer declines

 

 

(6,000

)

 

 

(6,000

)

 

 

 

 

(12,000

)

Phone customer increases

 

 

3,000

 

 

   

 

 

 

3,000

 

Quarterly PSU increases

 

 

11,000

 

 

 

4,000

 

 

 

 

 

15,000

 

 

 

 

   

 

   

 

 

 

 

Customer relationships (c)

 

 

759,000

 

 

 

608,000

 

 

 

 

 

1,367,000

 

 

 

 

   

 

   

 

 

 

 

Average total monthly revenue per:

 

 

   

 

   

 

 

 

 

PSU (d)

 

$

63.26

 

 

$

61.23

 

 

 

 

$

62.35

 

Customer relationship (e)

 

$

123.13

 

 

$

120.24

 

 

 

 

$

121.84

 

 

 

 

   

 

   

 

 

 

 

 

 

 

   

 

   

 

 

 

 

 

 

Mediacom
Broadband

 

Mediacom
LLC

     

Mediacom
Combined

Bank credit facility

 

$

1,019,250

 

 

$

1,128,500

 

 

 

 

$

2,147,750

 

5½% senior notes due 2021

 

 

200,000

 

 

   

 

 

 

200,000

 

Total debt (f)

 

$

1,219,250

 

 

$

1,128,500

 

 

 

 

$

2,347,750

 

Cash

 

 

(133,886

)

 

 

(11,837

)

 

 

 

 

(145,723

)

Net debt

 

$

1,085,364

 

 

$

1,116,663

 

 

 

 

$

2,202,027

 

 

 

 

   

 

   

 

 

 

 

Net leverage ratio (g)

 

2.47x

 

 

3.10x

 

 

 

 

2.82x

 

Interest coverage ratio (h)

 

8.40x

 

 

7.80x

 

 

 

 

7.94x

 

                       

* See Table 4 for information about our use of non-GAAP measures and definitions of 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 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.

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 net 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 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