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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.

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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

Source: Mediacom Communications Corporation