Mediacom Communications Reports Combined Results for Second Quarter 2019

Sponsored by Businesswire

MEDIACOM COMMUNICATIONS CORPORATION today released combined unaudited financial and operating highlights for the three months ended June 30, 2019.

Mediacom Combined Results for Second Quarter 2019*

Revenues were $508.9 million, reflecting a 4.2% increase from the prior year period
Adjusted OIBDA was $201.9 million, reflecting an 9.1% increase from the prior year period
Capital expenditures were $77.5 million, compared to $76.9 million in the prior year period
Free cash flow was $100.1 million, compared to $86.6 million in the prior year period
Ending primary service units (“PSUs”) of 2,666,000, a 0.3% increase from June 30, 2018
Ending customer relationships of 1,368,000, unchanged from June 30, 2018
Total leverage ratio of 2.98x, compared to 3.35x at June 30, 2018
Interest coverage ratio of 8.32x, compared to 8.59x at June 30, 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 August [1], 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 (Dollars in thousands, except per unit data) (Unaudited)

	Three Months Ended June 30,
		2019			2018		YoY % Change
High-speed data (“HSD”)	$	208,983		$	184,190		13.5	%
Video		188,141			195,427		(3.7	%)
Phone		29,917			28,389		5.4	%
Business services		71,304			68,062		4.8	%
Advertising		10,546			12,356		(14.6	%)
Total revenues	$	508,891		$	488,424		4.2	%
Service costs		(216,808	)		(212,641	)	2.0	%
SG&A expenses		(80,553	)		(81,671	)	(1.4	%)
Management fees		(10,000	)		(9,000	)	11.1	%
OIBDA ^(a)	$	201,530		$	185,112		8.9	%
Deferred compensation		385		―			―
Adjusted OIBDA ^(a)	$	201,915		$	185,112		9.1	%
Cash interest expense ^(a)		(24,265	)		(21,556	)	12.6	%
Capital expenditures		(77,533	)		(76,907	)	0.8	%
Free cash flow ^(a)	$	100,117		$	86,649		15.5	%

Adjusted OIBDA margin ^(b)		39.7	%		37.9	%


	June 30, 2019			June 30, 2018			YoY % Change
HSD customers		1,303,000			1,251,000		4.2	%
Video customers		747,000			808,000		(7.5	%)
Phone customers		616,000			599,000		2.8	%
Primary service units (“PSUs”)		2,666,000			2,658,000		0.3	%

HSD customer increases		15,000			23,000
Video customer declines		(17,000	)		(9,000	)
Phone customer (declines) increases		(1,000	)		17,000
Quarterly PSU (declines) increases		(3,000	)		31,000

Customer relationships ^(c)		1,368,000			1,368,000		0.0	%

Average total monthly revenue per:
PSU ^(d)	$	63.59		$	61.61		3.2	%
Customer relationship ^(e)	$	124.04		$	119.23		4.0	%


	June 30, 2019			June 30, 2018
Bank credit facility	$	2,360,000		$	2,280,000
5½% senior notes due 2021		50,000			200,000
Total debt ^(f)	$	2,410,000		$	2,480,000

Total leverage ratio ^(g)	2.98x			3.35x
Interest coverage ratio ^(h)	8.32x			8.59x

* 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 June 30, 2019
	Mediacom Broadband			Mediacom LLC			Eliminations					Mediacom Combined
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	)		―
Deferred 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 declines		(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

Total leverage ratio ^(g)	2.86x			2.99x								2.98x
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 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 June 30, 2018
	Mediacom Broadband			Mediacom LLC			Eliminations			Mediacom Combined
HSD	$	100,023		$	84,167		$	―		$	184,190
Video		107,812			87,615			―			195,427
Phone		15,271			13,118			―			28,389
Business services		41,682			26,380			―			68,062
Advertising		9,964			2,392			―			12,356
Total revenues	$	274,752		$	213,672		$	―		$	488,424
Service costs		(115,267	)		(97,374	)		―			(212,641	)
SG&A expenses		(49,102	)		(32,569	)		―			(81,671	)
Management fees		(5,350	)		(3,650	)		―			(9,000	)
OIBDA ^(a)	$	105,033		$	80,079		$	―		$	185,112
Investment income from affiliate	―				4,500			(4,500	)	―
Deferred compensation	―			―				―		―
Adjusted OIBDA ^(a)	$	105,033		$	84,579		$	(4,500	)	$	185,112
Cash interest expense ^(a)		(12,307	)		(9,249	)		―			(21,556	)
Capital expenditures		(40,439	)		(36,468	)		―			(76,907	)
Dividend to preferred members		(4,500	)	―				4,500		―
Free cash flow ^(a)	$	47,787		$	38,862		$	―		$	86,649


	Mediacom Broadband			Mediacom LLC						Mediacom Combined
HSD customers		690,000			561,000						1,251,000
Video customers		447,000			361,000						808,000
Phone customers		332,000			267,000						599,000
Primary service units (“PSUs”)		1,469,000			1,189,000						2,658,000

HSD customer increases		11,000			12,000						23,000
Video customer declines		(6,000	)		(3,000	)					(9,000	)
Phone customer increases		9,000			8,000						17,000
Quarterly PSU increases		14,000			17,000						31,000

Customer relationships ^(c)		757,000			611,000						1,368,000

Average total monthly revenue per:
PSU ^(d)	$	62.64		$	60.33					$	61.61
Customer relationship ^(e)	$	121.06		$	116.95					$	119.23


	Mediacom Broadband			Mediacom LLC						Mediacom Combined
Bank credit facility	$	1,127,500		$	1,152,500					$	2,280,000
5½% senior notes due 2021		200,000		―							200,000
Total debt ^(f)	$	1,327,500		$	1,152,500					$	2,480,000

Total leverage ratio ^(g)	3.16x			3.41x						3.35x
Interest coverage ratio ^(h)	8.53x			9.14x						8.59x

* 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,” 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 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 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

See Table 4 for information regarding our use of non-GAAP financial measures.
Represents Adjusted OIBDA as a percentage of total revenues.
Represents the total number of customers that take at least one service, without regard to which service(s) customers purchase.
Represents average total monthly revenues for the period divided by average PSUs for such period.
Represents average total monthly revenues for the period divided by average customer relationships for such period.
Total debt excludes the effect of deferred financing costs, net.
Represents total debt at period end divided by annualized Adjusted OIBDA for the period.
Represents Adjusted OIBDA divided by cash interest expense for the period.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190801005548/en/