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Mediacom Communications Reports Combined Results for Second Quarter 2021

·9 min read

MEDIACOM PARK, N.Y., August 04, 2021--(BUSINESS WIRE)--MEDIACOM COMMUNICATIONS CORPORATION today released combined unaudited financial and operating highlights for the three months ended June 30, 2021.

Mediacom Combined Results for Second Quarter 2021*

  • Revenues were $557.0 million, a 5.9% increase from the prior year period

  • Adjusted OIBDA was $251.2 million, a 15.2% increase from the prior year period

  • After-tax free cash flow was $128.8 million, a 1.9% decrease from the prior year period

  • High-speed data customers were 1,468,000, a 5.2% increase from the prior year period

  • Net debt of $1.482 billion, a $508 million reduction from June 30, 2020

  • Net leverage ratio of 1.47x, compared to 2.28x at June 30, 2020

"Mediacom delivered exceptional results in the second quarter of 2021, highlighted by a 15.2% increase in Adjusted OIBDA, our fourth consecutive quarter of industry-leading growth rates, benefiting largely by our decision to transition to a broadband-centric business strategy," stated Rocco B. Commisso, Mediacom’s founder, Chairman and Chief Executive Officer. "Our streak of year-over-year revenue growth has now reached a remarkable 98 consecutive quarters, a testament to the perseverance of our dedicated employees in the face of numerous challenges encountered over the last 25 years."

"Despite becoming a meaningful income taxpayer this year, we still managed to reduce our net debt by $232 million during the first half of 2021. Our lenders continue to benefit from our investment grade financial position, with Mediacom’s net leverage declining below 1.5x, the lowest in our history."

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 1.5 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.

_______________________

* See Table 4 regarding our usage and definitions of non-GAAP financial measures, and Table 5 for footnotes.

TABLE 1*

Mediacom Communications Corporation

Selected Combined Financial and Operating Data

(Dollars in thousands, except per unit data)

(Unaudited)

Three Months Ended
June 30, 2021

2021

2020

YoY% Change

High-speed data ("HSD")

$

268,585

$

232,012

15.8

%

Video

172,283

181,938

(5.3

%)

Phone

28,450

29,546

(3.7

%)

Business services

77,857

74,010

5.2

%

Advertising

9,830

8,301

18.4

%

Total revenues

$

557,005

$

525,807

5.9

%

Service costs

(215,877

)

(218,333

)

(1.1

%)

SG&A expenses

(75,797

)

(78,131

)

(3.0

%)

Management fees

(15,000

)

(12,000

)

25.0

%

OIBDA (a)

$

250,331

$

217,343

15.2

%

Non-cash, share based compensation

878

707

24.2

%

Adjusted OIBDA (a)

$

251,209

$

218,050

15.2

%

Capital expenditures

(81,694

)

(74,114

)

10.2

%

Cash interest expense (a)

(5,591

)

(8,757

)

(36.2

%)

Income taxes (a)

(35,143

)

(3,927

)

NM

After-tax free cash flow (a)

$

128,781

$

131,252

(1.9

%)

Adjusted OIBDA margin (b)

45.1

%

41.5

%

June 30, 2021

June 30, 2020

YoY% Change

HSD customers

1,468,000

1,396,000

5.2

%

Video customers

611,000

676,000

(9.6

%)

Phone customers

564,000

602,000

(6.3

%)

Primary service units ("PSUs")

2,643,000

2,674,000

(1.2

%)

HSD customer increases

14,000

47,000

Video customer declines

(15,000

)

(17,000

)

Phone customer declines

(10,000

)

(6,000

)

Quarterly PSU (declines) increases

(11,000

)

24,000

June 30, 2021

June 30, 2020

Total debt (c)

$

1,515,000

$

2,025,000

Cash

(33,404

)

(34,971

)

Net debt

$

1,481,596

$

1,990,029

Unused lines of credit (d)

$

694,055

$

715,043

Net leverage ratio (e)

1.47x

2.28x

Interest coverage ratio (f)

44.93x

24.90x

* See Table 4 regarding our usage and definitions of non-GAAP financial measures, 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, 2021

Mediacom

Broadband

Mediacom

LLC

Eliminations

Mediacom

Combined

High-speed data ("HSD")

$

141,966

$

126,619

$

268,585

Video

91,764

80,519

172,283

Phone

15,055

13,395

28,450

Business services

46,639

31,218

77,857

Advertising

8,254

1,576

9,830

Total revenues

$

303,678

$

253,327

$

557,005

Service costs

(114,845

)

(101,032

)

(215,877

)

SG&A expenses

(46,148

)

(29,649

)

(75,797

)

Management fees

(9,000

)

(6,000

)

(15,000

)

OIBDA (a)

$

133,685

$

116,646

$

250,331

Investment income from affiliate

4,500

(4,500

)

Non-cash share-based compensation

439

439

878

Adjusted OIBDA (a)

$

134,124

$

121,585

(4,500

)

$

251,209

Capital expenditures

(39,652

)

(42,042

)

(81,694

)

Cash interest expense (a)

(3,339

)

(2,252

)

(5,591

)

Income taxes (a)

(21,119

)

(14,024

)

(35,143

)

Dividend to preferred members

(4,500

)

4,500

After-tax free cash flow (a)

$

65,514

$

63,267

$

128,781

Mediacom

Broadband

Mediacom

LLC

Mediacom

Combined

HSD customers

797,000

671,000

1,468,000

Video customers

332,000

279,000

611,000

Phone customers

307,000

257,000

564,000

Primary service units ("PSUs")

1,436,000

1,207,000

2,643,000

HSD customer increases

6,000

8,000

14,000

Video customer declines

(9,000

)

(6,000

)

(15,000

)

Phone customer declines

(6,000

)

(4,000

)

(10,000

)

Quarterly PSU declines

(9,000

)

(2,000

)

(11,000

)

Mediacom

Broadband

Mediacom

LLC

Mediacom

Combined

Total debt (c)

$

892,188

$

622,812

$

1,515,000

Cash

(16,234

)

(17,170

)

(33,404

)

Net debt

$

875,954

$

605,642

$

1,481,596

Unused lines of credit(d)

$

360,996

$

333,059

$

694,055

Net leverage ratio (e)

1.63x

1.25x

1.47x

Interest coverage ratio (f)

40.17x

53.99x

48.93x

* See Table 4 regarding our usage and definitions of non-GAAP financial measures, 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, 2020

Mediacom

Broadband

Mediacom

LLC

Eliminations

Mediacom

Combined

High-speed data ("HSD")

$

124,964

$

107,048

$

232,012

Video

98,382

83,556

181,938

Phone

15,887

13,659

29,546

Business services

44,675

29,335

74,010

Advertising

7,149

1,152

8,301

Total revenues

$

291,057

$

234,750

$

525,807

Service costs

(117,934

)

(100,399

)

(218,333

)

SG&A expenses

(47,808

)

(30,323

)

(78,131

)

Management fees

(7,200

)

(4,800

)

(12,000

)

OIBDA (a)

$

118,115

$

99,228

$

217,343

Investment income from affiliate

4,500

(4,500

)

Non-cash share-based compensation

375

332

707

Adjusted OIBDA (a)

$

118,490

$

104,060

(4,500

)

$

218,050

Capital expenditures

(37,855

)

(36,259

)

(74,114

)

Cash interest expense (a)

(4,163

)

(4,594

)

(8,757

)

Income taxes (a)

(2,861

)

(1,066

)

(3,927

)

Dividend to preferred members

(4,500

)

4,500

After-tax free cash flow (a)

$

69,111

$

62,141

$

131,252

Mediacom

Broadband

Mediacom

LLC

Mediacom

Combined

HSD customers

767,000

629,000

1,396,000

Video customers

370,000

306,000

676,000

Phone customers

331,000

271,000

602,000

Primary service units ("PSUs")

1,468,000

1,206,000

2,674,000

HSD customer increases

24,000

23,000

47,000

Video customer declines

(10,000

)

(7,000

)

(17,000

)

Phone customer declines

(4,000

)

(2,000

)

(6,000

)

Quarterly PSU increases

10,000

14,000

24,000

Mediacom

Broadband

Mediacom

LLC

Mediacom

Combined

Total debt (c)

$

931,438

$

1,093,563

$

2,025,000

Cash

(16,020

)

(18,951

)

(34,971

)

Net debt

$

915,418

$

1,074,612

$

1,990,029

Unused lines of credit(d)

$

352,846

$

362,197

$

715,043

Net leverage ratio (e)

1.93x

2.58x

2.28x

Interest coverage ratio (f)

28.46x

22.65x

24.90x

* See Table 4 regarding our usage and definitions of non-GAAP financial measures, and Table 5 for footnotes.

Due to rounding of Mediacom Broadband and Mediacom LLC results, slight differences may exist with actual Mediacom Combined results.

TABLE 4
Use of Non-GAAP Financial Measures

"OIBDA," "Adjusted OIBDA," "cash interest expense," "estimated federal / state income taxes" and "after-tax 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 non-cash share-based 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 income taxes as the estimated amount of federal and state income taxes that Mediacom Broadband LLC and Mediacom LLC would have paid during the three months ended June 30, 2021 and 2020, respectively, in the event they were each tax-paying corporations.

For Mediacom Broadband LLC, we define after-tax free cash flow as Adjusted OIBDA less capital expenditures, cash interest expense, estimated federal and state taxes and dividends to preferred members. For Mediacom LLC, we define free cash flow as Adjusted OIBDA less capital expenditures, cash interest expense and estimated federal and state taxes. After-tax free cash flow may not be comparable to similarly titled measures reported by other companies.

Reference to "Mediacom Combined" reflects the combined results of Mediacom Broadband LLC and Mediacom LLC, eliminating intercompany amounts.

TABLE 5
Footnotes

  1. See Table 4 for information regarding our usage of non-GAAP financial measures.

  2. Represents Adjusted OIBDA as a percentage of total revenues.

  3. Total debt excludes the effect of deferred financing costs, net.

  4. Represents unused and available commitments under our revolving credit facilities after giving effect to outstanding borrowings and letters of credit issued thereunder.

  5. Represents net debt at period end divided by annualized Adjusted OIBDA for the period.

  6. Represents Adjusted OIBDA divided by cash interest expense for the period.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210804005585/en/

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

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