Mediacom Communications Reports Combined Results for Third Quarter 2021

November 03, 2021 07:30 AM Eastern Daylight Time

MEDIACOM PARK, N.Y.--()--MEDIACOM COMMUNICATIONS CORPORATION today released combined unaudited financial and operating highlights for the three months ended September 30, 2021.

Mediacom Combined Results for Third Quarter 2021*

  • Revenues were $557.1 million, a 3.4% increase from the prior year period
  • Adjusted OIBDA was $246.5 million, a 7.7% increase from the prior year period
  • After-tax free cash flow was $115.6 million, a 14.4% decrease from the prior year period
  • High-speed data customers were 1,466,000, a 2.9% increase from the prior year
  • Net debt of $1.352 billion, a $505.1 million reduction from September 30, 2020
  • Net leverage ratio of 1.37x, compared to 2.03x at September 30, 2020

“Mediacom delivered another period of superior results in the third quarter of 2021, highlighted by a 7.7% increase in Adjusted OIBDA,” stated Rocco B. Commisso, Mediacom’s founder, Chairman and Chief Executive Officer. “Despite becoming a meaningful income taxpayer in 2021, our net leverage dropped below 1.4x, fueled by over $500 million of debt reduction in the last twelve months. Our investment-grade balance sheet remains among the strongest in the telecommunications industry.”

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 1.5 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.

_______________________________

* See Table 4 regarding our usage and definitions of non-GAAP financial measures, 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
September 30, 2021

 

 

 

2021

 

2020

 

YoY% Change

High-speed data (“HSD”)

$

274,255

 

$

238,724

 

14.9%

Video

 

168,099

 

 

177,620

 

(5.4%)

Phone

 

27,932

 

 

29,396

 

(5.0%)

Business services

 

77,535

 

 

75,997

 

2.0%

Advertising

 

9,289

 

 

16,838

 

(44.8%)

Total revenues

$

557,110

 

$

538,575

 

3.4%

Service costs

 

(213,877)

 

 

(216,825)

 

(1.4%)

SG&A expenses

 

(82,653)

 

 

(80,541)

 

2.6%

Management fees

 

(15,000)

 

 

(13,000)

 

15.4%

OIBDA (a)

$

245,580

 

$

228,209

 

7.6%

Non-cash, share based compensation

 

876

 

 

707

 

23.9%

Adjusted OIBDA (a)

$

246,456

 

$

228,916

 

7.7%

Capital expenditures

 

(92,197)

 

 

(81,555)

 

13.0%

Cash interest expense (a)

 

(5,139)

 

 

(8,454)

 

(39.2%)

Income taxes (a)

 

(33,511)

 

 

(3,926)

 

NM

After-tax free cash flow (a)

$

115,609

 

$

134,981

 

(14.4%)

 

 

 

 

 

 

Adjusted OIBDA margin (b)

 

44.2%

 

 

42.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2021

 

September 30, 2020

 

YoY% Change

HSD customers

 

1,466,000

 

 

1,425,000

 

2.9%

Video customers

 

590,000

 

 

663,000

 

(11.0%)

Phone customers

 

549,000

 

 

599,000

 

(8.3%)

Primary service units (“PSUs”)

 

2,605,000

 

 

2,687,000

 

(3.1%)

 

 

 

 

 

 

HSD customer (declines) increases

 

(2,000)

 

 

29,000

 

 

Video customer declines

 

(21,000)

 

 

(13,000)

 

 

Phone customer declines

 

(15,000)

 

 

(3,000)

 

 

Quarterly PSU (declines) increases

 

(38,000)

 

 

13,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2021

 

September 30, 2020

 

 

Total debt (c)

$

1,390,000

 

$

1,890,000

 

 

Cash

 

(37,584)

 

 

(32,484)

 

 

Net debt

$

1,352,416

 

$

1,857,516

 

 

 

 

 

 

 

 

Unused lines of credit (d)

$

711,107

 

$

641,000

 

 

 

 

 

 

 

 

Net leverage ratio (e)

1.37x

 

2.03x

 

 

Interest coverage ratio (f)

47.96x

 

27.08x

 

 

* See Table 4 regarding our usage and definitions of non-GAAP financial measures, 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
September 30, 2021

 

Mediacom
Broadband

 

Mediacom
LLC

 

Eliminations

 

Mediacom
Combined

High-speed data (“HSD”)

$

144,015

 

$

130,240

 

 

$

274,255

Video

 

89,278

 

 

78,821

 

 

 

168,099

Phone

 

14,764

 

 

13,168

 

 

 

27,932

Business services

 

46,319

 

 

31,216

 

 

 

77,535

Advertising

 

7,806

 

 

1,483

 

 

 

9,289

Total revenues

$

302,182

 

$

254,928

 

 

$

557,110

Service costs

 

(113,997)

 

 

(99,880)

 

 

 

(213,877)

SG&A expenses

 

(49,460)

 

 

(33,193)

 

 

 

(82,653)

Management fees

 

(9,000)

 

 

(6,000)

 

 

 

(15,000)

OIBDA (a)

$

129,725

 

$

115,855

 

 

$

245,580

Investment income from affiliate

 

 

4,500

 

(4,500)

 

Non-cash share-based compensation

 

438

 

 

438

 

 

 

876

Adjusted OIBDA (a)

$

130,163

 

$

120,793

 

(4,500)

 

$

246,456

Capital expenditures

 

(47,967)

 

 

(44,230)

 

 

 

(92,197)

Cash interest expense (a)

 

(3,414)

 

 

(1,725)

 

 

 

(5,139)

Income taxes (a)

 

(18,682)

 

 

(14,829)

 

 

 

(33,511)

Dividend to preferred members

 

(4,500)

 

 

4,500

 

After-tax free cash flow (a)

$

55,600

 

$

60,009

 

 

$

115,609

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mediacom
Broadband

 

Mediacom
LLC

     

Mediacom
Combined

HSD customers

 

793,000

 

 

673,000

 

 

 

 

1,466,000

Video customers

 

319,000

 

 

271,000

 

 

 

 

590,000

Phone customers

 

297,000

 

 

252,000

 

 

 

 

549,000

Primary service units (“PSUs”)

 

1,409,000

 

 

1,196,000

 

 

 

 

2,605,000

 

 

 

 

 

 

 

 

HSD customer (declines) increases

 

(4,000)

 

 

2,000

 

 

 

 

(2,000)

Video customer declines

 

(13,000)

 

 

(8,000)

 

 

 

 

(21,000)

Phone customer declines

 

(10,000)

 

 

(5,000)

 

 

 

 

(15,000)

Quarterly PSU declines

 

(27,000)

 

 

(11,000)

 

 

 

 

(38,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mediacom
Broadband

 

Mediacom
LLC

     

Mediacom
Combined

Total debt (c)

$

897,500

 

$

492,500

 

 

 

$

1,390,000

Cash

 

(19,979)

 

 

(17,605)

 

 

 

 

(37,584)

Net debt

$

877,521

 

$

474,895

 

 

 

$

1,352,416

 

 

 

 

 

 

 

 

Unused lines of credit(d)

$

348,996

 

$

362,111

 

 

 

$

711,107

 

 

 

 

 

 

 

 

Net leverage ratio (e)

1.69x

 

0.98x

 

 

 

1.37x

Interest coverage ratio (f)

38.13x

 

70.02x

 

 

 

47.96x

* See Table 4 regarding our usage and definitions of non-GAAP financial measures, 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
September 30, 2020

 

Mediacom
Broadband

 

Mediacom
LLC

 

Eliminations

 

Mediacom
Combined

High-speed data (“HSD”)

$

126,820

 

$

111,904

 

 

$

238,724

Video

 

94,438

 

 

83,182

 

 

 

177,620

Phone

 

15,684

 

 

13,712

 

 

 

29,396

Business services

 

45,541

 

 

30,456

 

 

 

75,997

Advertising

 

14,542

 

 

2,296

 

 

 

16,838

Total revenues

$

297,025

 

$

241,550

 

 

$

538,575

Service costs

 

(115,756)

 

 

(101,069)

 

 

 

(216,825)

SG&A expenses

 

(48,215)

 

 

(32,326)

 

 

 

(80,541)

Management fees

 

(7,800)

 

 

(5,200)

 

 

 

(13,000)

OIBDA (a)

$

125,254

 

$

102,955

 

 

$

228,209

Investment income from affiliate

 

 

4,500

 

(4,500)

 

Non-cash share-based compensation

 

374

 

 

333

 

 

 

707

Adjusted OIBDA (a)

$

125,628

 

$

107,788

 

(4,500)

 

$

228,916

Capital expenditures

 

(41,255)

 

 

(40,300)

 

 

 

(81,555)

Cash interest expense (a)

 

(4,037)

 

 

(4,417)

 

 

 

(8,454)

Income taxes (a)

 

(2,860)

 

 

(1,066)

 

 

 

(3,926)

Dividend to preferred members

 

(4,500)

 

 

4,500

 

After-tax free cash flow (a)

$

72,976

 

$

62,005

 

 

$

134,981

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mediacom
Broadband

 

Mediacom
LLC

     

Mediacom
Combined

HSD customers

 

781,000

 

 

644,000

 

 

 

 

1,425,000

Video customers

 

361,000

 

 

302,000

 

 

 

 

663,000

Phone customers

 

328,000

 

 

271,000

 

 

 

 

599,000

Primary service units (“PSUs”)

 

1,470,000

 

 

1,217,000

 

 

 

 

2,687,000

 

 

 

 

 

 

 

 

HSD customer increases

 

14,000

 

 

15,000

 

 

 

 

29,000

Video customer declines

 

(9,000)

 

 

(4,000)

 

 

 

 

(13,000)

Phone customer declines

 

(3,000)

 

 

 

 

 

(3,000)

Quarterly PSU increases

 

2,000

 

 

11,000

 

 

 

 

13,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mediacom
Broadband

 

Mediacom
LLC

     

Mediacom
Combined

Total debt (c)

$

911,875

 

$

978,125

 

 

 

$

1,890,000

Cash

 

(14,884)

 

 

(17,600)

 

 

 

 

(32,484)

Net debt

$

896,991

 

$

960,525

 

 

 

$

1,857,516

 

 

 

 

 

 

 

 

Unused lines of credit(d)

$

365,800

 

$

275,200

 

 

 

$

641,000

 

 

 

 

 

 

 

 

Net leverage ratio (e)

1.79x

 

2.23x

 

 

 

2.03x

Interest coverage ratio (f)

31.12x

 

24.40x

 

 

 

27.08x

* See Table 4 regarding our usage and definitions of non-GAAP financial measures, 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,” “income taxes” and “after-tax 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.

We define income taxes as the estimated amount of federal and state income taxes that Mediacom Broadband LLC and Mediacom LLC would have paid during the three months ended September 30, 2021 and 2020, respectively, in the event they were each tax-paying corporations.

For Mediacom Broadband LLC, we define after-tax free cash flow as Adjusted OIBDA less capital expenditures, cash interest expense, income taxes and dividends to preferred members. For Mediacom LLC, we define free cash flow as Adjusted OIBDA less capital expenditures, cash interest expense and income taxes. After-tax 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 between them.

   

TABLE 5

   

Footnotes

     

(a)

  See Table 4 for information regarding our usage of non-GAAP financial measures.

(b)

  Represents Adjusted OIBDA as a percentage of total revenues.

(c)

  Total debt excludes the effect of deferred financing costs, net.

(d)

  Represents unused and available commitments under our revolving credit facilities after giving effect to outstanding borrowings and letters of credit issued thereunder.

(e)

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

(f)

  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