MEDIACOM COMMUNICATIONS CORPORATION today released combined unaudited
financial and operating highlights for the three months ended March 31,
2019.
Mediacom Combined Results for First Quarter
2019*
-
Revenues were $497.9 million, reflecting a 4.1% increase from the
prior year period -
Adjusted OIBDA was $195.5 million, reflecting an 8.9% increase from
the prior year period -
Capital expenditures were $72.7 million, compared to $79.8 million in
the prior year period -
Free cash flow was $98.2 million, compared to $74.7 million in the
prior year period -
Ending primary service units (“PSUs”) of 2,669,000, a 1.6% increase
from March 31, 2018 -
Ending customer relationships of 1,367,000, a 0.3% increase from March
31, 2018 - Net leverage ratio of 2.82x, compared to 3.49x at March 31, 2018
- Interest coverage ratio of 7.94x, compared to 7.16x at March 31, 2018
-
Ending net debt of $2,202.0 million, a $306.3 million reduction from
March 31, 2018
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
separate financial and operating results of Mediacom Broadband LLC,
which were previously released and filed with the SEC on Form 8-K on May
2, 2019.
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
nearly 1.4 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.
|
TABLE 1* Mediacom Communications Corporation
Selected Combined Financial and Operating Data (Unaudited) |
||||||||||||||
|
Three Months Ended March 31, |
||||||||||||||
| 2019 | 2018 | YoY % Change | ||||||||||||
| High-speed data (“HSD”) | $ |
201,097 |
$ | 178,341 | 12.8 | % | ||||||||
| Video | 187,721 | 195,248 | (3.9 | %) | ||||||||||
| Phone | 29,426 | 28,069 | 4.8 | % | ||||||||||
| Business services | 69,407 | 65,277 | 6.3 | % | ||||||||||
| Advertising | 10,203 | 11,468 | (11.0 | %) | ||||||||||
| Total revenues | $ | 497,854 | $ | 478,403 | 4.1 | % | ||||||||
| Service costs | (213,062 | ) | (209,485 | ) | 1.7 | % | ||||||||
| SG&A expenses | (78,659 | ) | (79,298 | ) | (0.8 | %) | ||||||||
| Management fees | (11,000 | ) | (10,000 | ) | 10.0 | % | ||||||||
| OIBDA (a) | $ | 195,133 | $ | 179,620 | 8.6 | % | ||||||||
| Deferred compensation | 385 |
― |
― | |||||||||||
| Adjusted OIBDA (a) | $ | 195,518 | $ | 179,620 | 8.9 | % | ||||||||
| Cash interest expense (a) | (24,629 | ) | (25,087 | ) | (1.8 | %) | ||||||||
| Capital expenditures | (72,659 | ) | (79,820 | ) | (9.0 | %) | ||||||||
| Free cash flow (a) | $ | 98,230 | $ | 74,713 | 31.5 | % | ||||||||
| Adjusted OIBDA margin (b) | 39.3 | % | 37.5 | % | ||||||||||
| March 31, 2019 | March 31, 2018 | YoY % Change | ||||||||||||
| HSD customers | 1,288,000 | 1,228,000 | 4.9 | % | ||||||||||
| Video customers | 764,000 | 817,000 | (6.5 | %) | ||||||||||
| Phone customers | 617,000 | 582,000 | 6.0 | % | ||||||||||
| Primary service units (“PSUs”) | 2,669,000 | 2,627,000 | 1.6 | % | ||||||||||
| HSD customer increases | 24,000 | 19,000 | ||||||||||||
| Video customer declines | (12,000 | ) | (4,000 | ) | ||||||||||
| Phone customer increases | 3,000 | 18,000 | ||||||||||||
| Quarterly PSU increases | 15,000 | 33,000 | ||||||||||||
| Customer relationships (c) | 1,367,000 | 1,363,000 | 0.3 | % | ||||||||||
| Average total monthly revenue per: | ||||||||||||||
| PSU (d) | $ | 62.35 | $ | 61.09 | 2.1 | % | ||||||||
| Customer relationship (e) | $ | 121.84 | $ | 117.00 | 4.1 | % | ||||||||
| March 31, 2019 | March 31, 2018 | |||||||||||||
| Bank credit facility | $ | 2,147,750 | $ | 2,189,750 | ||||||||||
| 5½% senior notes due 2021 | 200,000 | 200,000 | ||||||||||||
| 6⅜% senior notes due 2023 | ― | 300,000 | ||||||||||||
| Total debt (f) | $ | 2,347,750 | $ | 2,689,750 | ||||||||||
| Cash | (145,723 | ) | (181,382 | ) | ||||||||||
| Net debt (a) | $ | 2,202,027 | $ | 2,508,368 | ||||||||||
| Net leverage ratio (g) | 2.82x | 3.49x | ||||||||||||
| Interest coverage ratio (h) | 7.94x | 7.16x | ||||||||||||
* See Table 4 for information about our use of non-GAAP measures and
definitions of Adjusted 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 |
|||||||||||||||||
|
Mediacom |
Mediacom |
Eliminations |
Mediacom |
||||||||||||||
| HSD | $ |
109,436 |
$ | 91,661 |
$ |
― |
$ | 201,097 | |||||||||
| Video | 103,195 | 84,526 | ― | 187,721 | |||||||||||||
| Phone | 15,918 | 13,508 | ― | 29,426 | |||||||||||||
| Business services | 42,350 | 27,057 | ― | 69,407 | |||||||||||||
| Advertising | 8,355 | 1,848 | ― | 10,203 | |||||||||||||
| Total revenues | $ | 279,254 | $ | 218,600 |
$ |
― |
$ | 497,854 | |||||||||
| Service costs | (115,399 | ) | (97,663 | ) | ― | (213,062 | ) | ||||||||||
| SG&A expenses | (47,512 | ) | (31,147 | ) | ― | (78,659 | ) | ||||||||||
| Management fees | (6,600 | ) | (4,400 | ) | ― | (11,000 | ) | ||||||||||
| OIBDA (a) | $ | 109,743 | $ | 85,390 |
$ |
― |
$ | 195,133 | |||||||||
| Investment income from affiliate | ― | 4,500 | (4,500 | ) | ― | ||||||||||||
| Deferred compensation | 204 | 181 | ― | 385 | |||||||||||||
| Adjusted OIBDA (a) | $ | 109,947 | $ | 90,071 |
$ |
|
(4,500 | ) | $ | 195,518 | |||||||
| Cash interest expense (a) | (13,087 | ) | (11,542 | ) | ― | (24,629 | ) | ||||||||||
| Capital expenditures | (36,554 | ) | (36,105 | ) | ― | (72,659 | ) | ||||||||||
| Dividend to preferred members | (4,500 | ) | ― | 4,500 | ― | ||||||||||||
| Free cash flow (a) | $ | 55,806 | $ | 42,424 |
$ |
― |
$ | 98,230 | |||||||||
|
Mediacom |
Mediacom |
Mediacom |
|||||||||||||||
| HSD customers | 713,000 | 575,000 | 1,288,000 | ||||||||||||||
| Video customers | 422,000 | 342,000 | 764,000 | ||||||||||||||
| Phone customers | 342,000 | 275,000 | 617,000 | ||||||||||||||
| Primary service units (“PSUs”) | 1,477,000 | 1,192,000 | 2,669,000 | ||||||||||||||
| HSD customer increases | 14,000 | 10,000 | 24,000 | ||||||||||||||
| Video customer declines | (6,000 | ) | (6,000 | ) | (12,000 | ) | |||||||||||
| Phone customer increases | 3,000 | ― | 3,000 | ||||||||||||||
| Quarterly PSU increases | 11,000 | 4,000 | 15,000 | ||||||||||||||
| Customer relationships (c) | 759,000 | 608,000 | 1,367,000 | ||||||||||||||
| Average total monthly revenue per: | |||||||||||||||||
| PSU (d) | $ | 63.26 | $ | 61.23 | $ | 62.35 | |||||||||||
| Customer relationship (e) | $ | 123.13 | $ | 120.24 | $ | 121.84 | |||||||||||
|
Mediacom |
Mediacom |
Mediacom |
|||||||||||||||
| Bank credit facility | $ | 1,019,250 | $ | 1,128,500 | $ | 2,147,750 | |||||||||||
| 5½% senior notes due 2021 | 200,000 | ― | 200,000 | ||||||||||||||
| Total debt (f) | $ | 1,219,250 | $ | 1,128,500 | $ | 2,347,750 | |||||||||||
| Cash | (133,886 | ) | (11,837 | ) | (145,723 | ) | |||||||||||
| Net debt (a) | $ | 1,085,364 | $ | 1,116,663 | $ | 2,202,027 | |||||||||||
| Net leverage ratio (g) | 2.47x | 3.10x | 2.82x | ||||||||||||||
| Interest coverage ratio (h) | 8.40x | 7.80x | 7.94x | ||||||||||||||
* See Table 4 for information about our use of non-GAAP measures and
definitions of Adjusted 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 |
||||||||||||||||
|
Mediacom |
Mediacom |
Eliminations |
Mediacom |
|||||||||||||
| HSD | $ |
97,501 |
$ | 80,840 |
$ |
― |
$ | 178,341 | ||||||||
| Video | 107,672 | 87,576 |
|
― |
195,248 | |||||||||||
| Phone | 15,149 | 12,920 |
|
― |
28,069 | |||||||||||
| Business services | 40,153 | 25,124 |
|
― |
65,277 | |||||||||||
| Advertising | 9,206 | 2,262 |
|
― |
11,468 | |||||||||||
| Total revenues | $ | 269,681 | $ | 208,722 |
$ |
― |
$ | 478,403 | ||||||||
| Service costs | (113,042 | ) | (96,443 | ) |
|
― |
(209,485 | ) | ||||||||
| SG&A expenses | (47,708 | ) | (31,590 | ) |
|
― |
(79,298 | ) | ||||||||
| Management fees | (6,000 | ) | (4,000 | ) |
|
― |
(10,000 | ) | ||||||||
| OIBDA (a) | $ | 102,931 | $ | 76,689 |
$ |
― |
$ | 179,620 | ||||||||
| Investment income from affiliate | ― | 4,500 | (4,500 | ) | ― | |||||||||||
| Deferred compensation | ― | ― |
|
― |
― | |||||||||||
| Adjusted OIBDA (a) | $ | 102,931 | $ | 81,189 | $ | (4,500 | ) | $ | 179,620 | |||||||
| Cash interest expense (a) | (15,966 | ) | (9,121 | ) |
|
― |
(25,087 | ) | ||||||||
| Capital expenditures | (44,889 | ) | (34,931 | ) |
|
― |
(79,820 | ) | ||||||||
| Dividend to preferred members | (4,500 | ) | ― | 4,500 | ― | |||||||||||
| Free cash flow (a) | $ | 37,576 | $ | 37,137 |
$ |
― |
$ | 74,713 | ||||||||
|
Mediacom |
Mediacom |
Mediacom |
||||||||||||||
| HSD customers | 679,000 | 549,000 | 1,228,000 | |||||||||||||
| Video customers | 453,000 | 364,000 | 817,000 | |||||||||||||
| Phone customers | 323,000 | 259,000 | 582,000 | |||||||||||||
| Primary service units (“PSUs”) | 1,455,000 | 1,172,000 | 2,627,000 | |||||||||||||
| HSD customer increases | 11,000 | 8,000 | 19,000 | |||||||||||||
| Video customer declines | (2,000 | ) | (2,000 | ) | (4,000 | ) | ||||||||||
| Phone customer increases | 11,000 | 7,000 | 18,000 | |||||||||||||
| Quarterly PSU increases | 20,000 | 13,000 | 33,000 | |||||||||||||
| Customer relationships (c) | 756,000 | 607,000 | 1,363,000 | |||||||||||||
| Average total monthly revenue per: | ||||||||||||||||
| PSU (d) | $ | 62.21 | $ | 59.69 | $ | 61.09 | ||||||||||
| Customer relationship (e) | $ | 118.99 | $ | 114.53 | $ | 117.00 | ||||||||||
|
Mediacom |
Mediacom |
Mediacom |
||||||||||||||
| Bank credit facility | $ | 1,039,750 | $ | 1,150,000 | $ | 2,189,750 | ||||||||||
| 5½% senior notes due 2021 | 200,000 | ― | 200,000 | |||||||||||||
| 6⅜% senior notes due 2023 | 300,000 | ― | 300,000 | |||||||||||||
| Total debt (f) | $ | 1,539,750 | $ | 1,150,000 | $ | 2,689,750 | ||||||||||
| Cash | (170,970 | ) | (10,412 | ) | (181,382 | ) | ||||||||||
| Net debt (a) | $ | 1,368,780 | $ | 1,139,588 | $ | 2,508,368 | ||||||||||
| Net leverage ratio (g) | 3.32x | 3.51x | 3.49x | |||||||||||||
| Interest coverage ratio (h) | 6.45x | 8.90x | 7.16x | |||||||||||||
* See Table 4 for information about our use of non-GAAP measures and
definitions of Adjusted OIBDA and free cash flow and Table 5 for
footnotes.
TABLE 4
Use of Non-GAAP Financial Measures
“OIBDA,” “Adjusted OIBDA,” “cash interest expense,” “free cash flow” and
“net debt” 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 deferred 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 net debt as total debt less cash and cash equivalents. Net
debt is used as an alternative to total debt for comparison purposes
under certain circumstances in which we have greater than usual levels
of cash. On April 15, 2019, Mediacom Broadband LLC and Mediacom
Broadband Corporation (together, “Mediacom Broadband”) completed the
redemption of $150.0 million principal amount outstanding of their
existing 5½% senior notes due 2021 (the “5½% Notes”) at an aggregate
redemption price of $150.0 million, which was funded in part by $117.9
million of excess cash. On April 2, 2018, Mediacom Broadband completed
the redemption of all of their outstanding 6⅜% senior notes due 2023 at
an aggregate redemption price of $309.6 million, which was funded in
part by $158.0 million of excess cash. Due to the timing of such
transactions, Mediacom Broadband temporarily had greater than usual
levels of cash as of both March 31, 2019 and 2018, and therefore we
believe net debt to be a more appropriate comparative measure for
periods where excess cash is held for the purpose of retiring debt.
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 free cash flow as Adjusted OIBDA less capital expenditures,
cash interest expense and dividends to preferred members. 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 Adjusted 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) |
Represents net debt at period end divided by annualized Adjusted OIBDA for the period. |
|
| (h) |
Represents Adjusted OIBDA divided by cash interest expense for the period. |
|
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