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Mediacom Communications Reports Combined Results for Second Quarter 2016

MEDIACOM PARK, N.Y.--(BUSINESS WIRE)--MEDIACOM COMMUNICATIONS CORPORATION today released combined unaudited financial and operating highlights for the three months ended June 30, 2016.

Mediacom Combined Results for Second Quarter 2016*

  • Revenues were $450.8 million, reflecting a 4.4% increase from the prior year period
  • OIBDA was $172.7 million, reflecting a 4.0% increase from the prior year period
  • Capital expenditures were $86.4 million, compared to $76.9 million in the prior year period
  • Free cash flow was $55.6 million, compared to $51.9 million in the prior year period
  • Ending primary service units ("PSUs") of 2,424,000, a 3.4% increase from June 30, 2015
  • Ending customer relationships of 1,336,000, a 2.5% increase from June 30, 2015
  • Total leverage ratio of 4.19x, compared to 4.69x at June 30, 2015
  • Interest coverage ratio of 5.61x, compared to 4.46x for the prior year period
  • Ending total debt of $2,895.0 million, a $220.0 million reduction from June 30, 2015

Reference to "Mediacom Combined" reflects the combined results of Mediacom Broadband LLC and Mediacom LLC, eliminating intercompany amounts. The Mediacom Combined information is being provided for convenience and informational purposes only, and does not modify or supplement the previously released separate financial results of Mediacom Broadband LLC and Mediacom LLC. Holders of Mediacom Broadband LLC or Mediacom LLC debt should refer to the separate financial and operating results for each company, which were previously released and furnished with the Securities and Exchange Commission on Form 8-K on August 2, 2016.

About Mediacom

Mediacom Communications Corporation is the 5th largest cable operator in the U.S. serving over 1.3 million customers in smaller markets primarily in the Midwest and Southeast through its wholly-owned subsidiaries, Mediacom Broadband LLC and Mediacom LLC. 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.mediacomcc.com.

______________________


* 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,
2016 2015 YoY% Change
Video

$

203,257

$ 204,175 (0.4 %)
High-speed data 149,357 132,595 12.6 %
Phone 27,581 28,708 (3.9 %)
Business services 57,367 51,851 10.6 %
Advertising 13,259 14,422 (8.1 %)
Total revenues $ 450,821 $ 431,751 4.4 %
Service costs (190,606 ) (182,681 ) 4.3 %
SG&A expenses (79,540 ) (75,002 ) 6.1 %
Management fees (8,000 ) (8,000 )

OIBDA (a) $ 172,675 $ 166,068 4.0 %
Cash interest expense (a) (30,760 ) (37,274 ) (17.5 %)
Capital expenditures (b) (86,353 ) (76,850 ) 12.4 %
Free cash flow (a) $ 55,562 $ 51,944 7.0 %
OIBDA margin (c) 38.3 % 38.5 %
June 30, 2016 June 30, 2015 YoY% Change
Video customers 842,000 879,000 (4.2 %)
High-speed data ("HSD") customers 1,128,000 1,051,000 7.3 %
Phone customers 454,000 415,000 9.4 %
Primary service units ("PSUs") 2,424,000 2,345,000 3.4 %
Video customer declines (11,000 ) (12,000 )
HSD customer increases 14,000 10,000
Phone customer increases 10,000 4,000
Quarterly PSU increases 13,000 2,000
Customer relationships (d) 1,336,000 1,304,000 2.5 %
Average total monthly revenue per:
PSU (e) $ 62.16 $ 61.40 1.2 %
Customer relationship (f) $ 112.61 $ 110.66 1.8 %
June 30, 2016 June 30, 2015
Bank credit facility $ 2,145,000 $ 2,365,000
5½% senior notes due 2021 200,000 200,000
7¼% senior notes due 2022 250,000 250,000
6⅜% senior notes due 2023 300,000 300,000
Total debt (g) $ 2,895,000 $ 3,115,000
Total leverage ratio (h) 4.19x 4.69x
Interest coverage ratio (i) 5.61x 4.46x

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* 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, 2016

Mediacom

Broadband

Mediacom

LLC

Eliminations

Mediacom

Combined

Video

$

114,148

$ 89,109 $ 203,257
High-speed data 82,307 67,050 149,357
Phone 14,655 12,926 27,581
Business services 34,950 22,417 57,367
Advertising 10,308 2,951 13,259
Total revenues $ 256,368 $ 194,453 $ 450,821
Service costs (105,413 ) (85,193 ) (190,606 )
SG&A expenses (48,133 ) (31,407 ) (79,540 )
Management fees (4,750 ) (3,250 ) (8,000 )
OIBDA (a) $ 98,072 $ 74,603 $ 172,675
Investment income from affiliate 4,500 (4,500 )
Adjusted OIBDA (a) $ 98,072 $ 79,103 (4,500 ) $ 172,675
Cash interest expense (a) (18,461 ) (12,299 ) (30,760 )
Capital expenditures (b) (45,013 ) (41,340 ) (86,353 )
Dividend to preferred members (4,500 ) 4,500
Free cash flow (a) $ 30,098 $ 25,464 $ 55,562

Mediacom

Broadband

Mediacom

LLC

Mediacom

Combined

Video customers 472,000 370,000 842,000
HSD customers 628,000 500,000 1,128,000
Phone customers 250,000 204,000 454,000
Primary service units ("PSUs") 1,350,000 1,074,000 2,424,000
Video customer declines (7,000 ) (4,000 ) (11,000 )
HSD customer increases 7,000 7,000 14,000
Phone customer increases 5,000 5,000 10,000
Quarterly PSU increases 5,000 8,000 13,000
Customer relationships (d) 741,000 595,000 1,336,000
Average total monthly revenue per:
PSU (e) $ 63.42 $ 60.58 $ 62.16
Customer relationship (f) $ 115.40 $ 109.12 $ 112.61

Mediacom

Broadband

Mediacom
LLC

Mediacom

Combined

Bank credit facility $ 1,188,000 $ 957,000 $ 2,145,000
5½% senior notes due 2021 200,000 200,000
7¼% senior notes due 2022 250,000 250,000
6⅜% senior notes due 2023 300,000 300,000
Total debt (g) $ 1,688,000 $ 1,207,000 $ 2,895,000
Total leverage ratio (h) 4.30x 3.81x 4.19x
Interest coverage ratio (i) 5.31x 6.43x 5.61x
______________________


* 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
June 30, 2015

Mediacom

Broadband

Mediacom

LLC

Eliminations

Mediacom

Combined

Video

$

115,310

$ 88,865 $ 204,175
High-speed data 73,095 59,500 132,595
Phone 15,260 13,448 28,708
Business services 31,819 20,032 51,851
Advertising 10,648 3,774 14,422
Total revenues $ 246,132 $ 185,619 $ 431,751
Service costs (101,305 ) (81,376 ) (182,681 )
SG&A expenses (44,863 ) (30,139 ) (75,002 )
Management fees (4,750 ) (3,250 ) (8,000 )
OIBDA (a) $ 95,214 $ 70,854 $ 166,068
Investment income from affiliate 4,500 (4,500 )
Adjusted OIBDA (a) $ 95,214 $ 75,354 (4,500 ) $ 166,068
Cash interest expense (a) (22,094 ) (15,180 ) (37,274 )
Capital expenditures (b) (40,820 ) (36,030 ) (76,850 )
Dividend to preferred members (4,500 ) 4,500
Free cash flow (a) $ 27,800 $ 24,144 $ 51,944

Mediacom

Broadband

Mediacom

LLC

Mediacom

Combined

Video customers 494,000 385,000 879,000
HSD customers 585,000 466,000 1,051,000
Phone customers 228,000 187,000 415,000
Primary service units ("PSUs") 1,307,000 1,038,000 2,345,000
Video customer declines (8,000 ) (4,000 ) (12,000 )
HSD customer increases 4,000 6,000 10,000
Phone customer increases 3,000 1,000 4,000
Quarterly PSU (declines) increases (1,000 ) 3,000 2,000
Customer relationships (d) 723,000 581,000 1,304,000
Average total monthly revenue per:
PSU (e) $ 62.75 $ 59.69 $ 61.40
Customer relationship (f) $ 113.79 $ 106.77 $ 110.66

Mediacom

Broadband

Mediacom

LLC

Mediacom

Combined

Bank credit facility $ 1,397,000 $ 968,000 $ 2,365,000
5½% senior notes due 2021 200,000 200,000
7¼% senior notes due 2022 250,000 250,000
6⅜% senior notes due 2023 300,000 300,000
Total debt (g) $ 1,897,000 $ 1,218,000 $ 3,115,000
Total leverage ratio (h) 4.98x 4.04x 4.69x
Interest coverage ratio (i) 4.31x 4.96x 4.46x
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* 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. 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 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) Capital expenditures for the three months ended June 30, 2016 exclude changes in accrued property, plant and equipment, which represented a cash use of $2.7 million and a cash source of $3.7 million at Mediacom Broadband LLC and Mediacom LLC, respectively.

Capital expenditures for the three months ended June 30, 2015 exclude changes in accrued property, plant and equipment, which represented cash sources of $2.3 million and $2.9 million for Mediacom Broadband LLC and Mediacom LLC, respectively.

(c) Represents OIBDA as a percentage of total revenues.
(d) Represents the total number of customers that take at least one service, without regard to which service(s) customers purchase.
(e) Represents average total monthly revenues for the quarter divided by average PSUs for such quarter.
(f) Represents average total monthly revenues for the quarter divided by average customer relationships for such quarter.
(g) Total debt excludes the effect of deferred financing costs, net.
(h) For Mediacom Combined and Mediacom Broadband LLC, represents total debt at quarter end divided by annualized OIBDA for the quarter. For Mediacom LLC, represents total debt at quarter end divided by annualized Adjusted OIBDA for the quarter.
(i) For Mediacom Combined and Mediacom Broadband LLC, represents OIBDA divided by cash interest expense for the quarter. For Mediacom LLC, represents Adjusted OIBDA divided by cash interest expense for the quarter.

Contacts

Mediacom Communications
Investor Relations
Jack P. Griffin, 845-443-2654
Vice President, Corporate Finance
or
Media Relations
Thomas J. Larsen, 845-443-2754
Senior Vice President, Government and Public Relations