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Mediacom Communications Reports Combined Results for Second Quarter 2020

Due to rounding of Mediacom Broadband and Mediacom LLC, slight differences may exist with actual Mediacom Combined results.

MEDIACOM PARK, N.Y.--()--MEDIACOM COMMUNICATIONS CORPORATION today released combined unaudited financial and operating highlights for the three months ended June 30, 2020.

Mediacom Combined Results for Second Quarter 2020*

  • Revenues were $525.8 million, reflecting a 3.3% increase from the prior year period
  • Adjusted OIBDA was $218.1 million, reflecting an 8.0% increase from the prior year period
  • Free cash flow was $135.2 million, reflecting a 35.0% increase from the prior year period
  • Ending high-speed data (“HSD”) customers of 1,396,000, a 7.1% increase from June 30, 2019
  • Net leverage ratio of 2.28x, compared to 2.95x at June 30, 2019
  • Interest coverage ratio of 24.90x, compared to 8.32x at June 30, 2019
  • Average borrowing costs of 1.7%, compared to 4.0% for the prior year period
  • Available cash and unused revolving credit lines exceeded $750 million at June 30, 2020

“Never in my 42-year career with the cable industry, let alone my lifetime, have I witnessed a more disastrous economic environment due to the coronavirus pandemic, where countless large and small companies filed for bankruptcy or were saved from failure by massive government assistance,” stated Rocco B. Commisso, Mediacom’s founder, Chairman and CEO. “Even global media/telecom leaders like AT&T/WarnerMedia/DirecTV, Comcast/NBCUniversal/SkyTV, and Disney/ESPN went backwards on revenues and net income or generated significant losses in their latest reporting periods. Amid this backdrop, and in stark contrast, Mediacom not only increased free cash flow by 35%, but registered its 94th consecutive quarter of year-over-year revenue growth, truly a unique and impressive accomplishment in the annals of American business.

“The immense challenges caused by this pandemic underscored the critical nature of a fast and reliable Internet connection, particularly for remote working, distance learning, telemedicine and entertainment. In retrospect, our strategic decision to invest $3 billion over the last decade to ‘future-proof’ our fiber-rich network was visionary, giving us the ability to handle the recent 35% surge in customers’ bandwidth consumption, and allowing us to attract a record 47,000 new Internet customers during the quarter.

“I could not be prouder of our employees spread over 22 states for rising above the potential health risks to service our 1.4 million Internet customers. I take even more pride in knowing that despite millions of workers in the U.S. unfortunately losing their jobs, Mediacom continued its long-standing policy of no layoffs, putting the welfare and security of our employees and their families at the very top of our priorities.

“Our financial position has never been stronger. Mediacom’s long-term bank and institutional lenders are supported by an investment-grade balance sheet and our commitment to maintain a net leverage ratio of less than 3.0x.  Since year-end 2018, despite the substantial borrowings and distributions made to finance the acquisition and operations of ACF Fiorentina, we repaid over $300 million in debt, made possible by the ever-increasing cash generation capacity of Mediacom. For the full year 2020, we expect to reach free cash flow in excess of $500 million, an all-time record for our company,” concluded Mr. Commisso.
____________________

* 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 1*

Mediacom Communications Corporation

Selected Combined Financial and Operating Data

(Dollars in thousands, except per unit data)

(Unaudited)

             

 

 

Three Months Ended
June 30,

 

 

 

 

2020

 

2019

 

YoY% Change

High-speed data (“HSD”)

 

$

232,012

 

 

$

208,983

 

 

11.0

%

Video

 

 

181,938

 

 

 

188,141

 

 

(3.3

%)

Phone

 

 

29,546

 

 

 

29,917

 

 

(1.2

%)

Business services

 

 

74,010

 

 

 

71,304

 

 

3.8

%

Advertising

 

 

8,301

 

 

 

10,546

 

 

(21.3

%)

Total revenues

 

$

525,807

 

 

$

508,891

 

 

3.3

%

Service costs

 

 

(218,333

)

 

 

(216,808

)

 

0.7

%

SG&A expenses

 

 

(78,131

)

 

 

(80,553

)

 

(3.0

%)

Management fees

 

 

(12,000

)

 

 

(10,000

)

 

20.0

%

OIBDA (a)

 

$

217,343

 

 

$

201,530

 

 

7.8

%

Non-cash, share based compensation

 

 

707

 

 

 

385

 

 

83.6

%

Adjusted OIBDA (a)

 

$

218,050

 

 

$

201,915

 

 

8.0

%

Cash interest expense (a)

 

 

(8,757

)

 

 

(24,265

)

 

(63.9

%)

Capital expenditures

 

 

(74,114

)

 

 

(77,533

)

 

(4.4

%)

Free cash flow (a)

 

$

135,179

 

 

$

100,117

 

 

35.0

%

 

 

 

   

 

   

 

Adjusted OIBDA margin (b)

 

 

41.5

%

 

 

39.7

%

 

 

 

 

 

   

 

   

 

 

 

 

   

 

   

 

 

 

June 30, 2020

 

June 30, 2019

 

YoY% Change

HSD customers

 

 

1,396,000

 

 

 

1,303,000

 

 

7.1

%

Video customers

 

 

676,000

 

 

 

747,000

 

 

(9.5

%)

Phone customers

 

 

602,000

 

 

 

616,000

 

 

(2.3

%)

Primary service units (“PSUs”)

 

 

2,674,000

 

 

 

2,666,000

 

 

0.3

%

 

 

 

   

 

   

 

HSD customer increases

 

 

47,000

 

 

 

15,000

 

 

 

Video customer declines

 

 

(17,000

)

 

 

(17,000

)

 

 

Phone customer declines

 

 

(6,000

)

 

 

(1,000

)

 

 

Quarterly PSU increases (declines)

 

 

24,000

 

 

 

(3,000

)

 

 

 

 

 

   

 

   

 

Customer relationships (c)

 

 

1,404,000

 

 

 

1,368,000

 

 

2.6

%

 

 

 

   

 

   

 

Average total monthly revenue per:

 

 

   

 

   

 

PSU (d)

 

$

65.84

 

 

$

63.59

 

 

3.5

%

Customer relationship (e)

 

$

126.05

 

 

$

124.04

 

 

1.6

%

 

 

 

   

 

   

 

 

 

 

   

 

   

 

 

 

June 30, 2020

 

June 30, 2019

 

 

Bank credit facility

 

$

2,025,000

 

 

$

2,360,000

 

 

 

5½% senior notes due 2021

 

   

 

50,000

 

 

 

Total debt (f)

 

$

2,025,000

 

 

$

2,410,000

 

 

 

Cash

 

 

(34,971

)

 

 

(27,228

)

 

 

Net debt

 

$

1,990,029

 

 

$

2,382,772

 

 

 

 

 

 

   

 

   

 

Net leverage ratio (g)

 

2.28x

   

2.95x

   

 

Interest coverage ratio (h)

 

24.90x

   

8.32x

   

 

____________________

* 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
June 30, 2020

 

 

Mediacom
Broadband

 

Mediacom
LLC

 

Eliminations

 

Mediacom
Combined

High-speed data (“HSD”)

 

$

124,964

 

 

$

107,048

 

 

   

$

232,012

 

Video

 

 

98,382

 

 

 

83,556

 

 

   

 

181,938

 

Phone

 

 

15,887

 

 

 

13,659

 

 

   

 

29,546

 

Business services

 

 

44,675

 

 

 

29,335

 

 

   

 

74,010

 

Advertising

 

 

7,149

 

 

 

1,152

 

 

   

 

8,301

 

Total revenues

 

$

291,057

 

 

$

234,750

 

 

   

$

525,807

 

Service costs

 

 

(117,934

)

 

 

(100,399

)

 

   

 

(218,333

)

SG&A expenses

 

 

(47,808

)

 

 

(30,323

)

 

   

 

(78,131

)

Management fees

 

 

(7,200

)

 

 

(4,800

)

 

   

 

(12,000

)

OIBDA (a)

 

$

118,115

 

 

$

99,228

 

 

   

$

217,343

 

Investment income from affiliate

 

   

 

4,500

 

 

(4,500

)

 

 

Non-cash share-based compensation

 

 

375

 

 

 

332

 

 

   

 

707

 

Adjusted OIBDA (a)

 

$

118,490

 

 

$

104,060

 

 

(4,500

)

 

$

218,050

 

Cash interest expense (a)

 

 

(4,163

)

 

 

(4,594

)

 

   

 

(8,757

)

Capital expenditures

 

 

(37,855

)

 

 

(36,259

)

 

   

 

(74,114

)

Dividend to preferred members

 

 

(4,500

)

 

   

4,500

 

 

 

Free cash flow (a)

 

$

71,972

 

 

$

63,207

 

 

   

$

135,179

 

 

 

 

   

 

   

 

   

 

 

 

 

 

   

 

   

 

   

 

 

 

 

Mediacom
Broadband

 

Mediacom
LLC

       

Mediacom
Combined

HSD customers

 

 

767,000

 

 

 

629,000

 

 

 

   

 

1,396,000

 

Video customers

 

 

370,000

 

 

 

306,000

 

 

 

   

 

676,000

 

Phone customers

 

 

331,000

 

 

 

271,000

 

 

 

   

 

602,000

 

Primary service units (“PSUs”)

 

 

1,468,000

 

 

 

1,206,000

 

 

 

   

 

2,674,000

 

 

 

 

   

 

   

 

   

 

 

HSD customer increases

 

 

24,000

 

 

 

23,000

 

 

 

   

 

47,000

 

Video customer declines

 

 

(10,000

)

 

 

(7,000

)

 

 

   

 

(17,000

)

Phone customer declines

 

 

(4,000

)

 

 

(2,000

)

 

 

   

 

(6,000

)

Quarterly PSU increases

 

 

10,000

 

 

 

14,000

 

 

 

   

 

24,000

 

 

 

 

   

 

   

 

   

 

 

Customer relationships (c)

 

 

774,000

 

 

 

630,000

 

 

 

   

 

1,404,000

 

 

 

 

   

 

   

 

   

 

 

Average total monthly revenue per:

 

 

   

 

   

 

   

 

 

PSU (d)

 

$

66.32

 

 

$

65.26

 

 

 

   

$

65.84

 

Customer relationship (e)

 

$

126.33

 

 

$

125.70

 

 

 

   

$

126.05

 

 

 

 

   

 

   

 

   

 

 

 

 

 

   

 

   

 

   

 

 

 

 

Mediacom
Broadband

 

Mediacom
LLC

       

Mediacom
Combined

Bank credit facility

 

$

931,438

 

 

$

1,093,563

 

 

 

   

$

2,025,000

 

5½% senior notes due 2021

 

   

   

 

   

 

Total debt (f)

 

$

931,438

 

 

$

1,093,563

 

 

 

   

$

2,025,000

 

Cash

 

 

(16,020

)

 

 

(18,951

)

 

 

   

 

(34,971

)

Net debt

 

$

915,418

 

 

$

1,074,612

 

 

 

   

$

1,990,029

 

 

 

 

   

 

   

 

   

 

 

Net leverage ratio (g)

 

1.93x

   

2.58x

   

 

   

2.28x

 

Interest coverage ratio (h)

 

28.46x

   

22.65x

   

 

   

24.90x

 
____________________

* 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.

 Due to rounding of Mediacom Broadband and Mediacom LLC results, slight differences may exist with actual Mediacom Combined results.

TABLE 3*

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

High-speed data (“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

)

 

 

Non-cash share-based 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 increases

 

 

(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

 

Cash

 

 

(12,724

)

 

 

(14,504

)

 

 

   

 

(27,228

)

Net debt

 

$

1,274,151

 

 

$

1,108,621

 

 

 

   

$

2,382,772

 

 

 

 

   

 

   

 

   

 

 

Net leverage ratio (g)

 

2.83x

   

2.95x

   

 

   

2.95x

 

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 OIBDA and free cash flow and Table 5 for footnotes.

 Due to rounding of Mediacom Broadband and Mediacom LLC results, slight differences may exist with actual Mediacom Combined results.

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.

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

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 net debt at period end divided by annualized Adjusted OIBDA for the period.
  8. 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