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MEDIACOM PARK, N.Y.–(BUSINESS WIRE)–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
(Dollars in
thousands, except per unit 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
March 31, 2019

Mediacom
Broadband

   

Mediacom
LLC

    Eliminations    

Mediacom
Combined

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
Broadband

 

Mediacom
LLC

 

Mediacom
Combined

 
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
Broadband

 

Mediacom
LLC

 

Mediacom
Combined

 
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
March 31, 2018

Mediacom
Broadband

   

Mediacom
LLC

    Eliminations    

Mediacom
Combined

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
Broadband

 

Mediacom
LLC

 

Mediacom
Combined

 
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
Broadband

 

Mediacom
LLC

 

Mediacom
Combined

 
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.
 

Contacts

Investor Relations
Jack P. Griffin
Group Vice
President,
Corporate Finance
(845) 443-2654

Media Relations
Thomas J. Larsen
Senior Vice
President,
Government and Public Relations
(845) 443-2754