Sign In  |  Register  |  About Menlo Park  |  Contact Us

Menlo Park, CA
September 01, 2020 1:28pm
7-Day Forecast | Traffic
  • Search Hotels in Menlo Park

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Altice USA Reports Third Quarter 2022 Results

Reaches 1.9 Million Fiber Passings and More Than 135K Fiber Customers

Altice USA (NYSE: ATUS) today reports results for the third quarter ended September 30, 2022.

Dexter Goei, Altice USA Executive Chairman, said: “In the third quarter, we made significant progress in delivering against our Optimum Fiber broadband strategy. We saw a further acceleration in our fiber network deployment, achieving our highest ever level of incremental fiber passings and now reaching 1.9 million total fiber passings. With fiber broadband net additions of 31k, we reached 135k fiber customers at the end of the quarter. Our multi-gig speed tiers continued to roll out across our Optimum Fiber footprint, offering faster fiber speeds to more customers across the Tri-State. While we are operating in a very competitive environment and are starting to see some macroeconomic pressures across our business, we are confident that we have the right strategy to return to sustainable growth. We are very pleased to welcome Dennis Mathew as our new CEO and have the utmost confidence in him to build on our current momentum and deliver on our growth plan.”

Dennis Mathew, Altice USA Chief Executive Officer, said: "I am delighted to join Altice USA and see enormous potential for the company. In my first 30 days, I have been extremely impressed with Altice’s leadership team and the passion, energy, and dedication of our thousands of employees across our connectivity, news, and advertising businesses. Looking ahead, we remain laser focused on executing against our fiber broadband strategy, laying the foundation to provide the best products and customer experience for the long term, as well as providing viewers and customers with the best news and advertising solutions in the marketplace.”

Key Financial Highlights

  • Total Revenue declined -7.0% YoY in Q3 2022 to $2.39 billion (-4.3% excluding air strand revenue(1)), including Residential revenue decline of -4.4% YoY, Business Services revenue decline of -16.8% YoY (+0.1% excluding air strand revenue(1)) and News & Advertising revenue decline of -16.1% YoY.
  • Net income attributable to stockholders was $85.0 million in Q3 2022 ($0.19/share on a diluted basis) compared to net income of $266.9 million in Q3 2021 ($0.58/share on a diluted basis).
  • Net cash flows from operating activities were $629.2 million in Q3 2022, compared to $698.3 million in Q3 2021.
  • Adjusted EBITDA(2) declined -18.1% YoY in Q3 2022 to $954.4 million (-12.7% excluding air strand revenue(1)) with a margin of 39.9%.
  • Cash capital expenditures of $493.6 million in Q3 2022 represented 20.6% of revenue and were up 59.6% YoY mainly driven by accelerated fiber-to-the-home (FTTH) rollout and new builds (10.5% of revenue excluding FTTH and new builds).
  • Operating Free Cash Flow(2) decreased -46.1% YoY to $460.8 million in Q3 2022.
  • Free Cash Flow(2) decreased -65.2% YoY to $135.6 million in Q3 2022.

Q3-22 Summary Financials

Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands)

2022

 

2021

 

2022

 

2021

Revenue

$2,393,552

 

$2,574,882

 

$7,278,463

 

$7,569,711

Net income attributable to Altice USA, Inc. stockholders

84,951

 

266,853

 

387,676

 

738,649

Adjusted EBITDA(2)

954,390

 

1,164,804

 

2,953,188

 

3,344,211

Capital Expenditures (cash)

493,559

 

309,172

 

1,371,056

 

845,067

Revenue Growth and Adjusted EBITDA Detail

 

Q3-22

 

 

 

Total Revenue YoY

 

(7.0)%

excl. air strand revenue(1)

 

(4.3)%

 

 

 

 

 

 

Residential Revenue YoY

 

(4.4)%

 

 

 

Business Services Revenue YoY

 

(16.8)%

excl. air strand revenue(1)

 

+0.1%

 

 

 

 

 

 

News & Advertising Revenue YoY

 

(16.1)%

 

 

 

Adjusted EBITDA YoY

 

(18.1)%

excl. air strand revenue(1)

 

(12.7)%

Adjusted EBITDA Margin

 

39.9%

Residential unique customer relationships(3), broadband subscribers and organic net additions (losses)(4)

Subscribers (in thousands)

Q1-21

 

Q2-21(5)

 

Q3-21

 

Q4-21

 

FY-21(5)

 

Q1-22

 

Q2-22

Q3-22

Residential ending customer relationships

4,647.4

 

4,670.7

 

4,646.0

 

4,632.8

 

4,632.8

 

4,612.1

 

4,564.2

4,514.7

Residential customer organic net losses

(1.0)

 

(11.9)

 

(24.7)

 

(13.2)

 

(50.8)

 

(20.7)

 

(47.9)

(49.5)

Broadband ending subscribers

4,370.8

 

4,401.3

 

4,388.1

 

4,386.2

 

4,386.2

 

4,373.2

 

4,333.6

4,290.6

Broadband organic net additions (losses)

11.5

 

0.2

 

(13.1)

 

(1.9)

 

(3.3)

 

(13.0)

 

(39.6)

(43.0)

Key Operational Highlights

  • Fiber Broadband Primary Service Units (PSUs): Quarterly FTTH broadband net additions were +31k in Q3 2022, more than double the growth compared to Q3 2021 (+12k), driven by both higher fiber gross additions and increased migrations of existing customers. Total fiber broadband customers reached 135k as of the end of Q3 2022.
  • Total unique Residential customer relationships declined -2.8% YoY in Q3 2022. Unique Residential customer net losses in the quarter were -50k, compared to -25k in Q3 2021.
    • Residential Broadband PSUs: Quarterly total Residential broadband net losses were -43k in Q3 2022, compared to -13k broadband net losses in Q3 2021.
    • Residential Video PSUs: Quarterly video net losses were -82k in Q3 2022, compared to -67k video net losses in Q3 2021.
  • Residential revenue declined -4.4% YoY in Q3 2022 to $1.88 billion:
    • Residential revenue per customer relationship in Q3 2022 declined -1.9% YoY to $138.12, mostly due to the loss of higher ARPU video customers.
  • Business Services revenue of $366.6 million was down -16.8% YoY in Q3 2022 due to the early termination of a backhaul contract for air strands which resulted in the recognition of deferred revenue and termination fees over the amended term in the prior year period. Excluding air strand revenue in the prior period, Business Services revenue grew +0.1% YoY(1). SMB / Other revenue was down -21.6% YoY in Q3 2022, or down -0.1% YoY excluding air strand revenue(1). Lightpath revenue grew +0.5% YoY in Q3 2022.
  • News and Advertising revenue was down -16.1% YoY to $120.5 million in Q3 2022, or down -20.7% YoY excluding political revenue.
  • Optimum Mobile has approximately 236k mobile lines(6) as of September 30, 2022 (+5k net additions in Q3 2022), reaching 5.5% penetration of the Company's residential broadband customer base.

Fiber Rollout, Launch of Multi-Gig Fiber Internet and Network Expansion Update

  • Fiber (FTTH) rollout update: As of Q3 2022, the Company has 1.9 million FTTH passings, adding +321k new FTTH passings in the quarter, representing the highest number of quarterly incremental passings to date (vs. +44k new passings in Q3 2021, and +270k new passings in Q2 2022).
  • Rollout of Optimum 5 Gig and 2 Gig Fiber Internet service: The Company recently introduced Optimum 5 Gbps (5 Gig) Fiber Internet, with symmetrical speeds up to 5 Gig. In addition to the new 5 Gig internet speed tier, the Company also introduced Optimum 2 Gbps (2 Gig) Fiber Internet. The new 5 Gig and 2 Gig Optimum Fiber Internet tiers are now available across Long Island and Connecticut in our fiber footprint. At the end of Q3 2022, 41% of the Company’s fiber passings had multi-gig speeds available and all of the Company’s fiber passings are expected to be multi-gig enabled by Q1 2023.
  • 1 Gbps (1 Gig) broadband speed sell-in to all new customers, where 1 Gig or higher services are available, was 35% in Q3 2022. Approximately 19% of the residential customer base currently take 1 Gig speeds, representing a significant growth opportunity for the Company.
  • Broadband speed taken by the Company’s customer base on average has nearly doubled in the past three years to 391 Mbps in Q3 2022. Approximately 42% of the Company’s broadband customers remain on plans with download speeds of 200 Mbps or less, representing a sizable opportunity to continue to upgrade speeds. Broadband-only customer usage averaged 576 GB per month in Q3 2022, which is 23% higher than the average usage of the entire customer base (467 GB per month).
  • New build activity update: the Company has been accelerating the pace of its network edge-outs, adding +52k total passings in Q3 2022, and a total of +202k total passings in the last twelve months (LTM). The Company continues to see strong momentum in growing customer penetration, typically reaching approximately 40% within a year of rollout in new-build areas. The Company is on track to add an incremental 175k+ new passings in FY 2022.
  • Infrastructure subsidies update: the Company has applied for subsidies for rolling out FTTH to over 222k homes and has been awarded subsidy grants for a total of 35k homes year-to-date, totaling $44 million. These subsidy grants will enable the Company to bring high speed broadband connectivity to unserved and underserved communities in Arizona, Louisiana, West Virginia, and North Carolina.

FY 2022 Capex Guidance Reiterated

  • The Company expects to continue to accelerate investments in key growth initiatives, reiterating cash capex guidance of approximately $1.7 billion to $1.8 billion in FY 2022.

Additional Highlights and Announcements

Altice USA Appoints Dennis Mathew Chief Executive Officer; Names Dexter Goei Executive Chairman of the Board

Altice USA announced that its Board of Directors appointed Dennis Mathew to the position of Chief Executive Officer, effective October 3, 2022. Mr. Mathew assumed the CEO role from Dexter Goei who was named Executive Chairman of the Board of Directors, also effective October 3, 2022. Altice USA Founder Patrick Drahi remains a Director of the Board.

Optimum’s Retail Expansion Continues in Texas, New Jersey, and West Virginia

Optimum recently announced the opening of new retail stores in Texas (Abilene, Midland, and Lake Conroe, Prosper, a second location in Georgetown, and a second location in Tyler), New Jersey (Bayonne, Edison), and West Virginia (Parkersburg).

Balance Sheet Review

As of September 30, 2022:

  • Net debt for CSC Holdings, LLC Restricted Group was $22,710 million at the end of Q3 2022(7), representing net leverage of 6.0x Adjusted EBITDA on a LTM basis, or 6.2x Adjusted EBITDA on a Last 2 Quarters Annualized (L2QA) basis. The weighted average cost of debt for CSC Holdings, LLC Restricted Group was 5.1% as of the end of Q3 2022 and the weighted average life was 5.8 years. The Company expects to return to a leverage target of 4.5x to 5.0x net debt / Adjusted EBITDA on a L2QA basis for its CSC Holdings, LLC debt silo over time.
  • Net debt for Cablevision Lightpath LLC was $1,362 million at the end of Q3 2022(7), representing net leverage of 6.2x LTM (6.0x L2QA). The weighted average cost of debt for Cablevision Lightpath LLC was 5.1% as of the end of Q3 2022 and the weighted average life was 5.3 years.
  • Consolidated net debt for Altice USA was $24,037 million(7), representing consolidated net leverage of 6.0x LTM (6.1x L2QA at the end of Q3 2022).

Shares Outstanding

As of September 30, 2022, the Company had 454,668,428 combined Class A and Class B shares outstanding.

Altice USA Consolidated Operating Results

(In thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2022

 

2021

 

2022

 

2021

Revenue:

 

 

 

 

 

 

 

Broadband

$

981,842

 

 

$

989,410

 

 

$

2,970,039

 

 

$

2,952,136

 

Video

 

816,001

 

 

 

877,422

 

 

 

2,499,437

 

 

 

2,675,861

 

Telephony

 

83,097

 

 

 

99,943

 

 

 

252,952

 

 

 

310,298

 

Residential revenue

 

1,880,940

 

 

 

1,966,775

 

 

 

5,722,428

 

 

 

5,938,295

 

Business services and wholesale

 

366,554

 

 

 

440,813

 

 

 

1,105,579

 

 

 

1,180,039

 

News and Advertising

 

120,522

 

 

 

143,625

 

 

 

368,447

 

 

 

380,462

 

Mobile

 

22,837

 

 

 

20,456

 

 

 

73,312

 

 

 

60,355

 

Other

 

2,699

 

 

 

3,213

 

 

 

8,697

 

 

 

10,560

 

Total revenue

 

2,393,552

 

 

 

2,574,882

 

 

 

7,278,463

 

 

 

7,569,711

 

Operating expenses:

 

 

 

 

 

 

 

Programming and other direct costs

 

782,121

 

 

 

843,909

 

 

 

2,429,925

 

 

 

2,545,645

 

Other operating expenses

 

694,390

 

 

 

590,519

 

 

 

2,009,760

 

 

 

1,760,132

 

Restructuring and other expense

 

4,007

 

 

 

1,885

 

 

 

10,058

 

 

 

10,958

 

Depreciation and amortization (including impairments)

 

445,769

 

 

 

447,958

 

 

 

1,327,243

 

 

 

1,327,142

 

Operating income

 

467,265

 

 

 

690,611

 

 

 

1,501,477

 

 

 

1,925,834

 

Other income (expense):

 

 

 

 

 

 

 

Interest expense, net

 

(340,989

)

 

 

(319,001

)

 

 

(954,564

)

 

 

(954,684

)

Gain (loss) on investments

 

(425,686

)

 

 

(46,821

)

 

 

(902,060

)

 

 

151,651

 

Gain (loss) on derivative contracts, net

 

323,668

 

 

 

43,385

 

 

 

643,856

 

 

 

(109,020

)

Gain on interest rate swap contracts

 

105,945

 

 

 

5,521

 

 

 

268,960

 

 

 

59,600

 

Loss on extinguishment of debt and write-off of deferred financing costs

 

 

 

 

 

 

 

 

 

 

(51,712

)

Other income, net

 

3,245

 

 

 

2,280

 

 

 

8,196

 

 

 

7,606

 

Income before income taxes

 

133,448

 

 

 

375,975

 

 

 

565,865

 

 

 

1,029,275

 

Income tax expense

 

(35,827

)

 

 

(105,226

)

 

 

(152,563

)

 

 

(279,053

)

Net income

 

97,621

 

 

 

270,749

 

 

 

413,302

 

 

 

750,222

 

Net income attributable to noncontrolling interests

 

(12,670

)

 

 

(3,896

)

 

 

(25,626

)

 

 

(11,573

)

Net income attributable to Altice USA stockholders

$

84,951

 

 

$

266,853

 

 

$

387,676

 

 

$

738,649

 

Basic net income per share

$

0.19

 

 

$

0.59

 

 

$

0.86

 

 

$

1.61

 

Diluted net income per share

$

0.19

 

 

$

0.58

 

 

$

0.86

 

 

$

1.59

 

Basic weighted average common shares

 

453,239

 

 

 

454,049

 

 

 

453,233

 

 

 

460,023

 

Diluted weighted average common shares

 

453,390

 

 

 

457,163

 

 

 

453,284

 

 

 

465,349

 

Altice USA Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

Nine Months Ended September 30,

2022

2021

Cash flows from operating activities:

 

 

Net income

$

413,302

 

$

750,222

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

Depreciation and amortization (including impairments)

 

1,327,243

 

 

1,327,142

 

Loss (gain) on investments

 

902,060

 

 

(151,651

)

Loss (gain) on derivative contracts, net

 

(643,856

)

 

109,020

 

Loss on extinguishment of debt and write-off of deferred financing costs

 

 

 

51,712

 

Amortization of deferred financing costs and discounts (premiums) on indebtedness

 

61,447

 

 

69,176

 

Share-based compensation expense

 

114,410

 

 

80,277

 

Deferred income taxes

 

(89,240

)

 

97,046

 

Decrease in right-of-use assets

 

33,315

 

 

32,694

 

Provision for doubtful accounts

 

65,281

 

 

46,448

 

Other

 

(492

)

 

1,434

 

Change in assets and liabilities, net of effects of acquisitions and dispositions:

 

 

Accounts receivable, trade

 

389

 

 

(35,077

)

Prepaid expenses and other assets

 

15,730

 

 

33,381

 

Amounts due from and due to affiliates

 

(1,732

)

 

12,804

 

Accounts payable and accrued liabilities

 

17,776

 

 

(121,503

)

Deferred revenue

 

(5,508

)

 

(24,829

)

Liabilities related to interest rate swap contracts

 

(304,409

)

 

(100,817

)

Net cash provided by operating activities

 

1,905,716

 

 

2,177,479

 

Cash flows from investing activities:

 

 

Capital expenditures

 

(1,371,056

)

 

(845,067

)

Payment for acquisitions, net of cash acquired

 

(2,060

)

 

(340,444

)

Other, net

 

(2,985

)

 

(2,285

)

Net cash used in investing activities

 

(1,376,101

)

 

(1,187,796

)

Cash flows from financing activities:

 

 

Proceeds from long-term debt

 

1,565,000

 

 

3,310,000

 

Repayment of debt

 

(1,942,428

)

 

(3,483,026

)

Proceeds from collateralized indebtedness and related derivative contracts, net

 

 

 

185,105

 

Repayment of collateralized indebtedness and related derivative contracts, net

 

 

 

(185,105

)

Principal payments on finance lease obligations

 

(97,165

)

 

(60,257

)

Purchase of shares of Altice USA Class A common stock, pursuant to a share repurchase program

 

 

 

(804,928

)

Other

 

(207

)

 

2,698

 

Net cash used in financing activities

 

(474,800

)

 

(1,035,513

)

Net increase (decrease) in cash and cash equivalents

 

54,815

 

 

(45,830

)

Effect of exchange rate changes on cash and cash equivalents

 

51

 

 

(140

)

Net increase (decrease) in cash and cash equivalents

 

54,866

 

 

(45,970

)

Cash, cash equivalents and restricted cash at beginning of year

 

195,975

 

 

278,686

 

Cash, cash equivalents and restricted cash at end of period

$

250,841

 

$

232,716

 

Reconciliation of Non-GAAP Financial Measures:

We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) excluding income taxes, non-operating income or expenses, loss on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments, interest expense, net, depreciation and amortization (including impairments), share-based compensation expense, restructuring expense, and transaction expenses.

We believe Adjusted EBITDA is an appropriate measure for evaluating the operating performance of the Company. Adjusted EBITDA and similar measures with similar titles are common performance measures used by investors, analysts and peers to compare performance in our industry. Internally, we use revenue and Adjusted EBITDA measures as important indicators of our business performance and evaluate management’s effectiveness with specific reference to these indicators. We believe Adjusted EBITDA provides management and investors a useful measure for period-to-period comparisons of our core business and operating results by excluding items that are not comparable across reporting periods or that do not otherwise relate to the Company’s ongoing operating results. Adjusted EBITDA should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), and other measures of performance presented in accordance with GAAP. Since Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies.

We also use Operating Free Cash Flow (defined as Adjusted EBITDA less cash capital expenditures), and Free Cash Flow (defined as net cash flows from operating activities less cash capital expenditures) as indicators of the Company’s financial performance. We believe these measures are two of several benchmarks used by investors, analysts and peers for comparison of performance in the Company’s industry, although they may not be directly comparable to similar measures reported by other companies.

Reconciliation of net income to Adjusted EBITDA and Operating Free Cash Flow (unaudited):

 

 

 

 

 

 

 

 

(in thousands)

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

Net income

$

97,621

 

 

$

270,749

 

 

$

413,302

 

 

$

750,222

 

Income tax expense

 

35,827

 

 

 

105,226

 

 

 

152,563

 

 

 

279,053

 

Other income, net

 

(3,245

)

 

 

(2,280

)

 

 

(8,196

)

 

 

(7,606

)

Gain on interest rate swap contracts, net

 

(105,945

)

 

 

(5,521

)

 

 

(268,960

)

 

 

(59,600

)

Loss (gain) on derivative contracts, net

 

(323,668

)

 

 

(43,385

)

 

 

(643,856

)

 

 

109,020

 

Loss (gain) on investments

 

425,686

 

 

 

46,821

 

 

 

902,060

 

 

 

(151,651

)

Loss on extinguishment of debt and write-off of deferred financing costs

 

 

 

 

 

 

 

 

 

 

51,712

 

Interest expense, net

 

340,989

 

 

 

319,001

 

 

 

954,564

 

 

 

954,684

 

Depreciation and amortization (including impairments)

 

445,769

 

 

 

447,958

 

 

 

1,327,243

 

 

 

1,327,142

 

Restructuring and other expense

 

4,007

 

 

 

1,885

 

 

 

10,058

 

 

 

10,958

 

Share-based compensation

 

37,349

 

 

 

24,350

 

 

 

114,410

 

 

 

80,277

 

Adjusted EBITDA

 

954,390

 

 

 

1,164,804

 

 

 

2,953,188

 

 

 

3,344,211

 

Capital Expenditures (cash)

 

493,559

 

 

 

309,172

 

 

 

1,371,056

 

 

 

845,067

 

Operating Free Cash Flow

$

460,831

 

 

$

855,632

 

 

$

1,582,132

 

 

$

2,499,144

 

Reconciliation of net cash flow from operating activities to Free Cash Flow (unaudited):

 

 

 

 

 

 

 

 

Net cash flows from operating activities

$

629,162

 

$

698,314

 

$

1,905,716

 

$

2,177,479

Capital Expenditures (cash)

 

493,559

 

 

309,172

 

 

1,371,056

 

 

845,067

Free Cash Flow

$

135,603

 

$

389,142

 

$

534,660

 

$

1,332,412

Customer Metrics(10) (in thousands, except per customer amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1-21

Q2-21(5)

Q3-21

Q4-21

 

FY-21(5)

 

Q1-22

Q2-22

Q3-22

Total Passings(8)

 

9,067.6

9,195.1

9,212.5

9,263.3

 

9,263.3

 

9,304.9

9,363.1

9,414.9

Residential

 

4,647.4

4,670.7

4,646.0

4,632.8

 

4,632.8

 

4,612.1

4,564.2

4,514.7

SMB

 

375.8

380.7

381.6

381.9

 

381.9

 

382.9

383.1

382.5

Total Unique Customer Relationships(3)

 

5,023.2

5,051.4

5,027.6

5,014.7

 

5,014.7

 

4,995.0

4,947.3

4,897.2

Residential Customers:

 

 

 

 

 

 

 

 

 

 

 

Broadband

 

4,370.8

4,401.3

4,388.1

4,386.2

 

4,386.2

 

4,373.2

4,333.6

4,290.6

Video

 

2,906.6

2,870.5

2,803.0

2,732.3

 

2,732.3

 

2,658.7

2,574.2

2,491.8

Telephony

 

2,161.2

2,118.4

2,057.1

2,005.2

 

2,005.2

 

1,951.5

1,886.9

1,818.9

Residential ARPU ($)(9)

 

142.24

142.24

140.73

137.79

 

141.08

 

137.92

140.13

138.12

Fiber (FTTH) Customer Metrics (in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1-21

Q2-21

Q3-21

Q4-21

 

FY-21

 

Q1-22

Q2-22

Q3-22

FTTH Total Passings(10)

 

921.4

982.5

1,026.6

1,171.0

 

1,171.0

 

1,316.6

1,587.1

1,908.2

FTTH Total customer relationships(11)(12)

 

35.9

47.3

58.9

69.7

 

69.7

 

81.0

104.4

135.3

FTTH Residential

 

35.9

47.3

58.7

69.3

 

69.3

 

80.4

103.7

134.2

FTTH SMB

 

0.0

0.1

0.2

0.3

 

0.3

 

0.6

0.7

1.2

Consolidated Net Debt as of September 30, 2022

 

CSC Holdings, LLC Restricted Group (in $m)

Principal

Amount

 

Coupon /

Margin

 

Maturity

Drawn RCF

$1,300

 

S+2.350%

 

2027

Term Loan

2,843

 

L+2.250%

 

2025

Term Loan B-3

1,230

 

L+2.250%

 

2026

Term Loan B-5

2,925

 

L+2.500%

 

2027

Guaranteed Notes

1,310

 

5.500%

 

2027

Guaranteed Notes

1,000

 

5.375%

 

2028

Guaranteed Notes

1,750

 

6.500%

 

2029

Guaranteed Notes

1,100

 

4.125%

 

2030

Guaranteed Notes

1,000

 

3.375%

 

2031

Guaranteed Notes

1,500

 

4.500%

 

2031

Senior Notes

750

 

5.250%

 

2024

Senior Notes

1,046

 

7.500%

 

2028

Legacy unexchanged Cequel Notes

4

 

7.500%

 

2028

Senior Notes

2,250

 

5.750%

 

2030

Senior Notes

2,325

 

4.625%

 

2030

Senior Notes

500

 

5.000%

 

2031

CSC Holdings, LLC Restricted Group Gross Debt

22,833

 

 

 

 

CSC Holdings, LLC Restricted Group Cash

(123)

 

 

 

 

CSC Holdings, LLC Restricted Group Net Debt

$22,710

 

 

 

 

 

 

 

 

 

 

CSC Holdings, LLC Restricted Group Undrawn RCF

$1,043

 

 

 

 

Cablevision Lightpath LLC (in $m)

Principal

Amount

 

Coupon /

Margin

 

Maturity

Drawn RCF

$—

 

L+3.250%

 

2025

Term Loan

590

 

L+3.250%

 

2027

Senior Secured Notes

450

 

3.875%

 

2027

Senior Notes

415

 

5.625%

 

2028

Cablevision Lightpath Gross Debt

1,455

 

 

 

 

Cablevision Lightpath Cash

(92)

 

 

 

 

Cablevision Lightpath Net Debt

$1,362

 

 

 

 

 

 

 

 

 

 

Cablevision Lightpath Undrawn RCF

$100

 

 

 

 

Net Leverage Schedules as of September 30, 2022 (in $m)

 

 

CSC Holdings

Restricted

Group(14)

 

Cablevision

Lightpath LLC

 

CSC Holdings

Consolidated(15)

 

Altice USA

Consolidated

 

 

 

 

 

 

 

 

Gross Debt Consolidated(13)

$22,833

 

$1,455

 

$24,287

 

$24,287

Cash

(123)

 

(92)

 

(248)

 

(251)

Net Debt Consolidated

$22,710

 

$1,362

 

$24,039

 

$24,037

LTM EBITDA

$3,808

 

$220

 

$4,036

 

$4,036

L2QA EBITDA

$3,686

 

$228

 

$3,923

 

$3,923

Net Leverage (LTM)

6.0x

 

6.2x

 

6.0x

 

6.0x

Net Leverage (L2QA)

6.2x

 

6.0x

 

6.1x

 

6.1x

WACD (%)

5.1%

 

5.1%

 

5.1%

 

5.1%

Reconciliation to Financial Reported Debt

 

 

Actual

Total Debenture and Loans from Financial Institutions (Carrying Amount)

$24,247

Unamortized financing costs and discounts, net of unamortized premiums

13

Fair value adjustments

27

Gross Debt Consolidated(13)

24,287

Finance leases and other notes

369

Total Debt

24,656

Cash

(251)

Net Debt

$24,405

(1)

Excludes all air strand revenue and related costs from Business Services for all periods.

(2)

See “Reconciliation of Non-GAAP Financial Measures” on page 7 of this release.

(3)

Total Unique Customer Relationships represent the number of households/businesses that receive at least one of the Company’s fixed-line services. Customers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one customer, regardless of size, revenue generated, or number of boxes, units, or outlets on our hybrid-fiber-coaxial (HFC) and fiber-to-the-home (FTTH) network. Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group. Most of these accounts are also not entirely free, as they typically generate revenue through pay-per-view or other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion. In counting bulk Residential customers, such as an apartment building, we count each subscribing family unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual room units at that hotel.

(4)

Customer metrics do not include Optimum Mobile customers.

(5)

Since Q2-21, figures include Morris Broadband, LLC acquired subscribers.

(6)

Mobile lines includes approximately 33.4k lines receiving free service.

(7)

Net debt, defined as the principal amount of debt less cash, and excluding finance leases and other notes and collateralized debt.

(8)

Total passings represents the estimated number of single residence homes, apartments and condominium units passed by the HFC and FTTH network in areas serviceable without further extending the transmission lines. In addition, it includes commercial establishments that have connected to our HFC and FTTH network. Broadband services were not available to approximately 30 thousand total passings and telephony services were not available to approximately 500 thousand total passings. Total passings include approximately 89k total passings acquired in the Morris Broadband acquisition in Q2-21.

(9)

ARPU is calculated by dividing the average monthly revenue for the respective quarter (fourth quarter for annual periods) derived from the sale of broadband, video and telephony services to Residential customers by the average number of total Residential customers for the same period.

(10)

Represents the estimated number of single residence homes, apartments and condominium units passed by the FTTH network in areas serviceable without further extending the transmission lines. In addition, it includes commercial establishments that have connected to our FTTH network.

(11)

Represents number of households/businesses that receive at least one of the Company's fixed-line services on our FTTH network.

(12)

FTTH customers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one customer, regardless of size, revenue generated, or number of boxes, units, or outlets on our FTTH network. Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group. Most of these accounts are also not entirely free, as they typically generate revenue through pay-per view or other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion. In counting bulk residential customers, such as an apartment building, we count each subscribing family unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual room units at that hotel.

(13)

Principal amount of debt excluding finance leases and other notes and collateralized debt.

(14)

CSC Holdings, LLC Restricted Group excludes the unrestricted subsidiaries, primarily Cablevision Lightpath LLC and NY Interconnect, LLC.

(15)

CSC Holdings Consolidated includes the CSC Holdings, LLC Restricted Group and the unrestricted subsidiaries.

Numerical information is presented on a rounded basis using actual amounts. Minor differences in totals and percentage calculations may exist due to rounding.

About Altice USA

Altice USA (NYSE: ATUS) is one of the largest broadband communications and video services providers in the United States, delivering broadband, video, mobile, proprietary content and advertising services to nearly 5.0 million residential and business customers across 21 states through its Optimum brand. The Company operates a4, an advanced advertising and data business, which provides audience-based, multiscreen advertising solutions to local, regional and national businesses and advertising clients. Altice USA also offers hyper-local, national, international and business news through its News 12, Cheddar News and i24NEWS networks.

FORWARD-LOOKING STATEMENTS

Certain statements in this earnings release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this earnings release, including, without limitation, those regarding our intentions, beliefs or current expectations concerning, among other things: our future financial conditions and performance, results of operations and liquidity; our strategy, objectives, prospects, capital expenditure plans, fiber deployment and network expansion and upgrade plans, distribution channel expansion plans and leverage targets; our ability to achieve operational performance improvements; and future developments in the markets in which we participate or are seeking to participate. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “plan”, “project”, “should”, “target”, or “will” or, in each case, their negative, or other variations or comparable terminology. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. To the extent that statements in this earnings release are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements including risks referred to in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and subsequent reports on Form 10-Q. You are cautioned to not place undue reliance on Altice USA’s forward-looking statements. Any forward-looking statement speaks only as of the date on which it was made. Altice USA specifically disclaims any obligation to publicly update or revise any forward-looking statement, as of any future date.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 MenloPark.com & California Media Partners, LLC. All rights reserved.