Investor News Release

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, 2018.

Mediacom Combined Results for Fourth Quarter 2018*

• Revenues were $496.4 million, reflecting a 5.2% increase from the prior year period
• Adjusted OIBDA was $196.2 million, reflecting a 6.6% increase from the prior year period
• Capital expenditures were $96.3 million, compared to $82.7 million in the prior year period
• Free cash flow was $76.6 million, compared to $75.6 million in the prior year period
• Ending primary service units (“PSUs”) of 2,654,000, a 2.3% increase from December 31, 2017
• Ending customer relationships of 1,357,000, a 0.4% decline from December 31, 2017
• Net leverage ratio of 2.91x, compared to 3.50x at December 31, 2017
• Interest coverage ratio of 8.41x, compared to 7.14x at December 31, 2017

Mediacom Combined Results for Full Year 2018*

• Revenues were $1,956.4 million, reflecting a 4.2% increase from the prior year
• Adjusted OIBDA was $745.0 million, reflecting a 4.6% increase from the prior year
• Capital expenditures were $333.7 million, compared to $341.8 million in the prior year
• Free cash flow was $319.5 million, compared to $264.4 million in the prior year
• Net leverage ratio of 3.07x, compared to 3.62x at December 31, 2017
• Interest coverage ratio of 8.12x, compared to 6.73x at December 31, 2017
• Ending net debt of $2,286.3 million, a $293.5 million reduction from December 31, 2017

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 previously released separate financial results of Mediacom Broadband LLC. Holders of Mediacom Broadband LLC debt should refer to its separate financial and operating results, which were previously released and furnished with the SEC on Form 8-K on February 21, 2019.

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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.

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Changes in Accounting Standards – Revenue Recognition

As of January 1, 2018, we adopted Accounting Standards Update No. 2014-09 – Revenues from Contracts with Customers and related guidance (collectively, “revenue recognition”), which was issued by the Financial Accounting Standards Board. Adoption of this accounting standard affected both the timing of revenue recognition (the “timing change”) and the allocation of revenues among video, HSD and phone within our multi-product offerings, in which we offer product bundles at a discount (the “allocation change”). We adopted this accounting standard using a modified retrospective transition, and accordingly, the impact of such adoption was reflected in our financial results only for the three months and full year ended December 31, 2018 and prior period results were not restated. The adoption of the new standard did not have a material impact on the results of operations of Mediacom Combined for the three months and full year ended December 31, 2018. Excluding the impact of the timing change on Mediacom Combined, total revenues and OIBDA for the three months ended December 31, 2018, would have increased 5.2% and 7.4%, respectively. Excluding the impact of the timing change on Mediacom Combined, total revenues and OIBDA for the full year ended December 31, 2018, would have increased 4.2% and 4.4%, respectively. Because of the allocation change, we recorded a decrease in our video revenues and corresponding increases in our HSD and phone revenues. Excluding the overall impact of the timing change and the allocation change for Mediacom Combined, video revenues would have decreased 0.1%, HSD revenues would have increased 11.6% and phone revenues would have decreased 4.8% for the three months ended December 31, 2018. Excluding the overall impact of the timing change and the allocation change for Mediacom Combined, video revenues would have decreased 0.5%, HSD revenues would have increased 9.1% and phone revenues would have decreased 1.3% for the full year ended December 31, 2018.

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Footnotes

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.