Investor News Release

Mediacom Communications Reports Combined Results for Third Quarter 2017

MEDIACOM PARK, N.Y.--(BUSINESS WIRE)--MEDIACOM COMMUNICATIONS CORPORATION today released combined unaudited financial and operating highlights for the three months ended September 30, 2017.

Mediacom Combined Results for Third Quarter 2017*

Revenues were $471.6 million, reflecting a 3.8% increase from the prior year period
OIBDA was $173.0 million, reflecting a 2.3% increase from the prior year period
Capital expenditures were $90.0 million, compared to $82.1 million in the prior year period
Free cash flow was $56.5 million, compared to $57.0 million in the prior year period
Ending primary service units (“PSUs”) of 2,559,000, a 4.6% increase from September 30, 2016
- Includes 14,000 PSUs acquired by Mediacom LLC in January 2017
Ending customer relationships of 1,362,000, a 1.4% increase from September 30, 2016
- Includes 9,000 customer relationships acquired by Mediacom LLC in January 2017
Total leverage ratio of 3.81x, compared to 4.18x at September 30, 2016
Interest coverage ratio of 6.51x, compared to 5.63x at September 30, 2016
Ending total debt of $2,640.0 million, a reduction of $190.0 million from September 30, 2016

Reference to “Mediacom Combined” reflects the combined results of Mediacom Broadband LLC and Mediacom LLC, eliminating intercompany amounts. Mediacom LLC information is being voluntarily provided, as Mediacom LLC’s contractual obligation to file reports with the Securities and Exchange Commission (“SEC”) terminated in February 2017. 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 November 1, 2017.

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 September 30,
	2017			2016			YoY% Change
Video	$	199,077		$	200,560		(0.7	%)
High-speed data		169,000			152,226		11.0	%
Phone		28,275			27,573		2.5	%
Business services		63,073			58,111		8.5	%
Advertising		12,160			15,717		(22.6	%)
Total revenues	$	471,585		$	454,187		3.8	%
Service costs		(204,698	)		(193,341	)	5.9	%
SG&A expenses		(84,348	)		(82,762	)	1.9	%
Management fees		(9,500	)		(9,000	)	5.6	%
OIBDA ^(a)	$	173,039		$	169,084		2.3	%
Cash interest expense ^(a)		(26,600	)		(30,019	)	(11.4	%)
Capital expenditures		(89,985	)		(82,053	)	9.7	%
Free cash flow ^(a)	$	56,454		$	57,012		(1.0	)%

OIBDA margin ^(b)		36.7	%		37.2	%


	September 30, 2017			September 30, 2016			YoY% Change
Video customers		823,000			834,000		(1.3	%)
High-speed data (“HSD”) customers		1,194,000			1,145,000		4.3	%
Phone customers		542,000			467,000		16.1	%
Primary service units (“PSUs”)		2,559,000			2,446,000		4.6	%

Video customer declines		(6,000	)		(8,000	)
HSD customer increases		9,000			17,000
Phone customer increases		22,000			13,000
Quarterly PSU increases		25,000			22,000

Customer relationships ^(c)		1,362,000			1,343,000		1.4	%

Average total monthly revenue per:
PSU ^(d)	$	61.73		$	62.17		(0.7	)%
Customer relationship ^(e)	$	115.33		$	113.02		2.0	%


	September 30, 2017			September 30, 2016
Bank credit facility	$	2,140,000		$	2,080,000
5½% senior notes due 2021		200,000			200,000
7¼% senior notes due 2022	―				250,000
6⅜% senior notes due 2023		300,000			300,000
Total debt ^(f)	$	2,640,000		$	2,830,000

Total leverage ratio ^(g)	3.81		x	4.18		x
Interest coverage ratio ^(h)	6.51		x	5.63		x

*		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 September 30, 2017
	Mediacom Broadband			Mediacom LLC			Eliminations	Mediacom Combined
Video	$	109,793		$	89,284		―	$	199,077
High-speed data		92,012			76,988		―		169,000
Phone		15,050			13,225		―		28,275
Business services		38,476			24,597		―		63,073
Advertising		9,706			2,454		―		12,160
Total revenues	$	265,037		$	206,548		―	$	471,585
Service costs		(110,885	)		(93,813	)	―		(204,698	)
SG&A expenses		(50,256	)		(34,092	)	―		(84,348	)
Management fees		(5,650	)		(3,850	)	―		(9,500	)
OIBDA ^(a)	$	98,246		$	74,793		―	$	173,039
Investment income from affiliate	―				4,500		(4,500)	―
Adjusted OIBDA ^(a)	$	98,246		$	79,293		(4,500)	$	173,039
Cash interest expense ^(a)		(16,271	)		(10,329	)	―		(26,600	)
Capital expenditures		(46,491	)		(43,494	)	―		(89,985	)
Dividend to preferred members		(4,500	)	―			4,500	―
Free cash flow ^(a)	$	30,984		$	25,470		―	$	56,454


	Mediacom Broadband			Mediacom LLC				Mediacom Combined
Video customers		455,000			368,000				823,000
HSD customers		659,000			535,000				1,194,000
Phone customers		300,000			242,000				542,000
Primary service units (“PSUs”)		1,414,000			1,145,000				2,559,000

Video customer declines		(4,000	)		(2,000	)			(6,000	)
HSD customer increases		4,000			5,000				9,000
Phone customer increases		12,000			10,000				22,000
Quarterly PSU increases		12,000			13,000				25,000

Customer relationships ^(c)		754,000			608,000				1,362,000

Average total monthly revenue per:
PSU ^(d)	$	62.75		$	60.47			$	61.73
Customer relationship ^(e)	$	117.17		$	113.05			$	115.33


	Mediacom Broadband			Mediacom LLC				Mediacom Combined
Bank credit facility	$	972,000		$	1,168,000			$	2,140,000
5½% senior notes due 2021		200,000		―					200,000
6⅜% senior notes due 2023		300,000		―					300,000
Total debt ^(f)	$	1,472,000		$	1,168,000			$	2,640,000

Total leverage ratio ^(g)	3.75		x	3.68		x		3.81		x
Interest coverage ratio ^(h)	6.04		x	7.68		x		6.51		x

*		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 September 30, 2016
	Mediacom Broadband			Mediacom LLC			Eliminations	Mediacom Combined
Video	$	112,188		$	88,372		―	$	200,560
High-speed data		83,482			68,744		―		152,226
Phone		14,625			12,948		―		27,573
Business services		35,639			22,472		―		58,111
Advertising		12,765			2,952		―		15,717
Total revenues	$	258,699		$	195,488		―	$	454,187
Service costs		(106,127	)		(87,214	)	―		(193,341	)
SG&A expenses		(50,600	)		(32,162	)	―		(82,762	)
Management fees		(5,350	)		(3,650	)	―		(9,000	)
OIBDA ^(a)	$	96,622		$	72,462		―	$	169,084
Investment income from affiliate	―				4,500		(4,500)	―
Adjusted OIBDA ^(a)	$	96,622		$	76,962		(4,500)	$	169,084
Cash interest expense ^(a)		(17,916	)		(12,103	)	―		(30,019	)
Capital expenditures		(44,122	)		(37,931	)	―		(82,053	)
Dividend to preferred members		(4,500	)	―			4,500	―
Free cash flow ^(a)	$	30,084		$	26,928		―	$	57,012


	Mediacom Broadband			Mediacom LLC				Mediacom Combined
Video customers		466,000			368,000				834,000
HSD customers		636,000			509,000				1,145,000
Phone customers		257,000			210,000				467,000
Primary service units (“PSUs”)		1,359,000			1,087,000				2,446,000

Video customer declines		(6,000	)		(2,000	)			(8,000	)
HSD customer increases		8,000			9,000				17,000
Phone customer increases		7,000			6,000				13,000
Quarterly PSU increases		9,000			13,000				22,000

Customer relationships ^(c)		744,000			599,000				1,343,000

Average total monthly revenue per:
PSU ^(d)	$	63.66		$	60.31			$	62.17
Customer relationship ^(e)	$	116.14		$	109.15			$	113.02


	Mediacom Broadband			Mediacom LLC				Mediacom Combined
Bank credit facility	$	1,155,000		$	925,000			$	2,080,000
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 ^(f)	$	1,655,000		$	1,175,000			$	2,830,000

Total leverage ratio ^(g)	4.28		x	3.82		x		4.18		x
Interest coverage ratio ^(h)	5.39		x	6.36		x		5.63		x

*		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)		Represents 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)		For Mediacom Combined and Mediacom Broadband LLC, represents total debt at period end divided by annualized OIBDA for the period. For Mediacom LLC, represents total debt at period end divided by annualized Adjusted OIBDA for the period.
^(h)		For Mediacom Combined and Mediacom Broadband LLC, represents OIBDA divided by cash interest expense for the period. For Mediacom LLC, represents Adjusted OIBDA divided by cash interest expense for the period.

Contacts

Mediacom Communications Corporation
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