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Mediacom Communications Reports Combined Results for Fourth Quarter and Full Year 2020

·15-min read

MEDIACOM COMMUNICATIONS CORPORATION today released combined unaudited financial and operating highlights for the three months and full year ended December 31, 2020.

Mediacom Combined Results for Fourth Quarter 2020*

  • Revenues were $549.4 million, a 6.9% increase from the prior year period

  • Adjusted OIBDA was $246.8 million, a 16.3% increase from the prior year period

  • Free cash flow was $151.4 million, a 24.0% increase from the prior year period

  • High-speed data ("HSD") customers were 1,438,000, an 8.3% increase from December 31, 2019

  • Net debt of $1,713.6 billion, a $471.7 million reduction from December 31, 2019

  • Net leverage ratio of 1.74x, compared to 2.57x at December 31, 2019

Mediacom Combined Results for Full Year 2020*

  • Revenues were $2.131 billion, a 4.9% increase from the prior year period

  • Adjusted OIBDA was $898.9 million, a 11.2% increase from the prior year period

  • Free cash flow was $538.0 million, a 28.4% increase from the prior year period

"I am proud to announce record-breaking 2020 results, a truly exceptional performance in the face of the economic and operating challenges caused by the coronavirus pandemic," stated Rocco B. Commisso, Mediacom’s founder, Chairman and Chief Executive Officer. "During the fourth quarter of 2020, not only did we achieve the 96th consecutive quarter of year-over-year revenue growth, an extraordinary feat, but Adjusted OIBDA rose 16.3% and we generated free cash flow of $151 million, both all-time records.

For full-year 2020, Adjusted OIBDA grew to $899 million, or 11.2%, representing Mediacom’s highest organic annual growth rate ever, and among the highest reported for 2020 in the U.S. telecommunications industry. Noteworthy is our ever-growing free cash flow which has enabled Mediacom to reduce debt by $600 million during the past two years, despite funding $1 billion for capital investments and the acquisition and support of ACF Fiorentina. Our outstanding financial performance strengthened the balance sheet even more, with net leverage declining to 1.7x, validating S&P’s decision to upgrade Mediacom’s credit rating to BBB investment grade in August of last year.

During these very difficult and trying times, Mediacom’s hard-working frontline employees have been critical to the mission of delivering fast and reliable broadband connections to our residential customers and their families, as well as to our commercial clients. Mediacom’s fiber-rich network performed remarkably well after COVID struck, handling significant increases in average bandwidth consumption per user and strong Internet customer growth, clearly demonstrating that our long-standing strategy of massive reinvestment in our broadband network continues to pay substantial dividends."

* See Table 7 regarding our use of non-GAAP measures and definitions of Adjusted OIBDA and free cash flow and Table 8 for footnotes.

TABLE 1*

Mediacom Communications Corporation

Selected Combined Financial and Operating Data

(Dollars in thousands, except per unit data)

(Unaudited)

Three Months Ended
December 31,

2020

2019

YoY% Change

High-speed data ("HSD")

$

249,803

$

217,820

14.7

%

Video

166,658

178,653

(6.7

%)

Phone

29,280

29,926

(2.2

%)

Business services

74,321

72,639

2.3

%

Advertising

29,304

14,877

97.0

%

Total revenues

$

549,366

$

513,915

6.9

%

Service costs

(205,690

)

(208,791

)

(1.5

%)

SG&A expenses

(81,612

)

(81,743

)

(0.2

%)

Management fees

(16,000

)

(11,500

)

39.1

%

OIBDA (a)

$

246,064

$

211,881

16.1

%

Non-cash, share based compensation

707

385

83.6

%

Adjusted OIBDA (a)

$

246,771

$

212,266

16.3

%

Cash interest expense (a)

(6,807

)

(19,670

)

(65.4

%)

Capital expenditures

(88,595

)

(70,515

)

25.6

%

Free cash flow (a)

$

151,369

$

122,081

24.0

%

Adjusted OIBDA margin (b)

44.9

%

41.3

%

December 31, 2020

December 31, 2019

YoY% Change

HSD customers

1,438,000

1,328,000

8.3

%

Video customers

643,000

710,000

(9.4

%)

Phone customers

586,000

613,000

(4.4

%)

Primary service units ("PSUs")

2,667,000

2,651,000

0.6

%

HSD customer increases

13,000

12,000

Video customer declines

(20,000

)

(19,000

)

Phone customer declines

(13,000

)

(3,000

)

Quarterly PSU declines

(20,000

)

(10,000

)

December 31, 2020

December 31, 2019

Total debt (c)

$

1,750,000

$

2,215,000

Cash

(36,414

)

(29,733

)

Net debt

$

1,713,586

$

2,185,267

Unused lines of credit (d)

$

679,606

$

628,823

Net leverage ratio (e)

1.74x

2.57x

Interest coverage ratio (f)

36.25x

10.79x

_______________

* See Table 7 for information about our use of non-GAAP measures and definitions of OIBDA, Adjusted OIBDA and free cash flow and Table 8 for footnotes.

TABLE 2*

Mediacom Communications Corporation

Selected Combined Financial and Operating Data

(Dollars in thousands, except per unit data)

(Unaudited)

Year Ended
December 31,

2020

2019

YoY% Change

High-speed data ("HSD")

$

943,988

$

840,958

12.3

%

Video

707,510

738,542

(4.2

%)

Phone

117,919

119,145

(1.0

%)

Business services

294,966

285,403

3.4

%

Advertising

66,841

47,192

41.6

%

Total revenues

$

2,131,224

$

2,031,240

4.9

%

Service costs

(856,916

)

(854,862

)

0.2

%

SG&A expenses

(325,259

)

(325,881

)

(0.2

%)

Management fees

(53,000

)

(44,000

)

20.5

%

OIBDA (a)

$

896,049

$

806,497

11.1

%

Non-cash, share based compensation

2,828

1,539

83.8

%

Adjusted OIBDA (a)

$

898,877

$

808,036

11.2

%

Cash interest expense (a)

(39,887

)

(92,524

)

(56.9

%)

Capital expenditures

(320,953

)

(296,597

)

8.2

%

Free cash flow (a)

$

538,037

$

418,915

28.4

%

Adjusted OIBDA margin (b)

42.2

%

39.8

%

December 31, 2020

December 31, 2019

YoY% Change

HSD customers

1,438,000

1,328,000

8.3

%

Video customers

643,000

710,000

(9.4

%)

Phone customers

586,000

613,000

(4.4

%)

Primary service units ("PSUs")

2,667,000

2,651,000

0.6

%

HSD customer increases

110,000

64,000

Video customer declines

(67,000

)

(66,000

)

Phone customer declines

(27,000

)

(1,000

)

Annual PSU increases (declines)

16,000

(3,000

)

December 31, 2020

December 31, 2019

Total debt (c)

$

1,750,000

$

2,215,000

Cash

(36,414

)

(29,733

)

Net debt

$

1,713,586

$

2,185,267

Unused lines of credit (d)

$

679,606

$

628,823

Net leverage ratio (e)

1.91x

2.70x

Interest coverage ratio (f)

22.54x

8.73x

_______________

* See Table 7 for information about our use of non-GAAP measures and definitions of OIBDA, Adjusted OIBDA and free cash flow and Table 8 for footnotes.

TABLE 3*

Mediacom Communications Corporation

Selected Combined Financial and Operating Data

(Dollars in thousands, except per unit data)

(Unaudited)

Three Months Ended
December 31, 2020

Mediacom
Broadband

Mediacom LLC

Eliminations

Mediacom
Combined

High-speed data ("HSD")

$

133,228

$

116,575

$

249,803

Video

89,272

77,386

166,658

Phone

15,632

13,648

29,280

Business services

44,617

29,704

74,321

Advertising

25,916

3,388

29,304

Total revenues

$

308,665

$

240,701

$

549,366

Service costs

(109,791

)

(95,899

)

(205,690

)

SG&A expenses

(49,611

)

(32,001

)

(81,612

)

Management fees

(9,600

)

(6,400

)

(16,000

)

OIBDA (a)

$

139,663

$

106,401

$

246,064

Investment income from affiliate

4,500

(4,500

)

Non-cash share-based compensation

385

322

707

Adjusted OIBDA (a)

$

140,048

$

111,223

(4,500

)

$

246,771

Cash interest expense (a)

(3,214

)

(3,593

)

(6,807

)

Capital expenditures

(45,832

)

(42,763

)

(88,595

)

Dividend to preferred members

(4,500

)

4,500

Free cash flow (a)

$

86,502

$

64,867

$

151,369

Mediacom
Broadband

Mediacom LLC

Mediacom
Combined

HSD customers

784,000

654,000

1,438,000

Video customers

350,000

293,000

643,000

Phone customers

320,000

266,000

586,000

Primary service units ("PSUs")

1,454,000

1,213,000

2,667,000

HSD customer increases

3,000

10,000

13,000

Video customer declines

(11,000

)

(9,000

)

(20,000

)

Phone customer declines

(8,000

)

(5,000

)

(13,000

)

Quarterly PSU declines

(16,000

)

(4,000

)

(20,000

)

Mediacom
Broadband

Mediacom LLC



Mediacom
Combined

Total debt (c)

$

905,313

$

844,688

$

1,750,000

Cash

(19,008

)

(17,406

)

(36,414

)

Net debt

$

886,305

$

827,282

$

1,713,586

Unused lines of credit (d)

$

365,846

$

313,760

$

679,606

Net leverage ratio (e)

1.58x

1.86x

1.74x

Interest coverage ratio (f)

43.57x

30.96x

36.25x

_______________

* See Table 7 for information about our use of non-GAAP measures and definitions of OIBDA, Adjusted OIBDA and free cash flow and Table 8 for footnotes.

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

TABLE 4*

Mediacom Communications Corporation

Selected Combined Financial and Operating Data

(Dollars in thousands, except per unit data)

(Unaudited)

Three Months Ended
December 31, 2019

Mediacom
Broadband

Mediacom LLC

Eliminations

Mediacom
Combined

High-speed data ("HSD")

$

117,823

$

99,997

$

217,820

Video

96,878

81,775

178,653

Phone

16,103

13,823

29,926

Business services

44,103

28,536

72,639

Advertising

12,737

2,140

14,877

Total revenues

$

287,644

$

226,271

$

513,915

Service costs

(112,217

)

(96,574

)

(208,791

)

SG&A expenses

(49,038

)

(32,705

)

(81,743

)

Management fees

(6,900

)

(4,600

)

(11,500

)

OIBDA (a)

$

119,489

$

92,392

$

211,881

Investment income from affiliate

4,500

(4,500

)

Non-cash share-based compensation

204

181

385

Adjusted OIBDA (a)

$

119,693

$

97,073

(4,500

)

$

212,266

Cash interest expense (a)

(10,313

)

(9,357

)

(19,670

)

Capital expenditures

(36,615

)

(33,900

)

(70,515

)

Dividend to preferred members

(4,500

)

4,500

Free cash flow (a)

$

68,265

$

53,816

$

122,081

Mediacom
Broadband

Mediacom LLC


Mediacom
Combined

HSD customers

732,000

596,000

1,328,000

Video customers

389,000

321,000

710,000

Phone customers

338,000

275,000

613,000

Primary service units ("PSUs")

1,459,000

1,192,000

2,651,000

HSD customer increases

6,000

6,000

12,000

Video customer declines

(11,000

)

(8,000

)

(19,000

)

Phone customer declines

(2,000

)

(1,000

)

(3,000

)

Quarterly PSU declines

(7,000

)

(3,000

)

(10,000

)

Mediacom
Broadband

Mediacom LLC

Mediacom
Combined

Total debt (c)

$

1,102,625

$

1,112,375

$

2,215,000

Cash

(15,482

)

(14,251

)

(29,733

)

Net debt

$

1,087,143

$

1,098,124

$

2,185,267

Unused lines of credit (d)

$

266,871

$

361,952

$

628,823

Net leverage ratio (e)

2.27x

2.83x

2.57x

Interest coverage ratio (f)

11.61x

10.37x

10.79x

_______________

* See Table 7 for information about our use of non-GAAP measures and definitions of OIBDA, Adjusted OIBDA and free cash flow and Table 8 for footnotes.

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

TABLE 5*

Mediacom Communications Corporation

Selected Combined Financial and Operating Data

(Dollars in thousands, except per unit data)

(Unaudited)

Year Months Ended
December 31, 2020

Mediacom
Broadband

Mediacom LLC

Eliminations

Mediacom
Combined

High-speed data ("HSD")

$

505,822

$

438,166

$

943,988

Video

380,358

327,152

707,510

Phone

63,213

54,706

117,919

Business services

177,651

117,315

294,966

Advertising

58,217

8,624

66,841

Total revenues

$

1,185,261

$

945,963

$

2,131,224

Service costs

(459,973

)

(396,943

)

(856,916

)

SG&A expenses

(197,153

)

(128,106

)

(325,259

)

Management fees

(31,800

)

(21,200

)

(53,000

)

OIBDA (a)

$

496,335

$

399,714

$

896,049

Investment income from affiliate

18,000

(18,000

)

Non-cash share-based compensation

1,509

1,319

2,828

Adjusted OIBDA (a)

$

497,844

$

419,033

(18,000

)

$

898,877

Cash interest expense (a)

(19,462

)

(20,425

)

(39,887

)

Capital expenditures

(164,959

)

(155,994

)

(320,953

)

Dividend to preferred members

(18,000

)

18,000

Free cash flow (a)

$

295,423

$

242,614

$

538,037

Mediacom
Broadband

Mediacom LLC

Mediacom
Combined

HSD customers

784,000

654,000

1,438,000

Video customers

350,000

293,000

643,000

Phone customers

320,000

266,000

586,000

Primary service units ("PSUs")

1,454,000

1,213,000

2,667,000

HSD customer increases

52,000

58,000

110,000

Video customer declines

(39,000

)

(28,000

)

(67,000

)

Phone customer declines

(18,000

)

(9,000

)

(27,000

)

Annual PSU (declines) increases

(5,000

)

21,000

16,000

Mediacom
Broadband

Mediacom LLC

Mediacom
Combined

Total debt (c)

$

905,313

$

844,688

$

1,750,000

Cash

(19,008

)

(17,406

)

(36,414

)

Net debt

$

886,305

$

827,282

$

1,713,586

Unused lines of credit (d)

$

365,846

$

313,760

$

679,606

Net leverage ratio (e)

1.78x

1.97x

1.91x

Interest coverage ratio (f)

25.58x

20.52x

22.54x

_______________

* See Table 7 for information about our use of non-GAAP measures and definitions of OIBDA, Adjusted OIBDA and free cash flow and Table 8 for footnotes.

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

TABLE 6*

Mediacom Communications Corporation

Selected Combined Financial and Operating Data

(Dollars in thousands, except per unit data)

(Unaudited)

Year Ended
December 31, 2019

Mediacom
Broadband

Mediacom LLC

Eliminations

Mediacom
Combined

High-speed data ("HSD")

$

455,828

$

385,130

$

840,958

Video

402,240

336,302

738,542

Phone

64,343

54,802

119,145

Business services

173,822

111,581

285,403

Advertising

39,578

7,614

47,192

Total revenues

$

1,135,811

$

895,429

$

2,031,240

Service costs

(461,663

)

(393,199

)

(854,862

)

SG&A expenses

(196,527

)

(129,354

)

(325,881

)

Management fees

(26,400

)

(17,600

)

(44,000

)

OIBDA (a)

$

451,221

$

355,276

$

806,497

Investment income from affiliate

18,000

(18,000

)

Non-cash share-based compensation

816

723

1,539

Adjusted OIBDA (a)

$

452,037

$

373,999

(18,000

)

$

808,036

Cash interest expense (a)

(48,972

)

(43,552

)

(92,524

)

Capital expenditures

(155,704

)

(140,893

)

(296,597

)

Dividend to preferred members

(18,000

)

18,000

Free cash flow (a)

$

229,361

$

189,554

$

418,915

Mediacom
Broadband

Mediacom LLC



Mediacom
Combined

HSD customers

732,000

596,000

1,328,000

Video customers

389,000

321,000

710,000

Phone customers

338,000

275,000

613,000

Primary service units ("PSUs")

1,459,000

1,192,000

2,651,000

HSD customer increases

33,000

31,000

64,000

Video customer declines

(39,000

)

(27,000

)

(66,000

)

Phone customer declines

(1,000

)

(1,000

)

Annual PSU (declines) increases

(7,000

)

4,000

(3,000

)

Mediacom
Broadband

Mediacom LLC

Mediacom
Combined

Total debt (c)

$

1,102,625

$

1,112,375

$

2,215,000

Cash

(15,482

)

(14,251

)

(29,733

)

Net debt

$

1,087,143

$

1,098,124

$

2,185,267

Unused lines of credit (d)

$

266,871

$

361,952

$

628,823

Net leverage ratio (e)

2.40x

2.94x

2.70x

Interest coverage ratio (f)

9.23x

8.59x

8.73x

_______________

* See Table 7 for information about our use of non-GAAP measures and definitions of OIBDA, Adjusted OIBDA and free cash flow and Table 8 for footnotes.

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

TABLE 7
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 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.

For Mediacom Broadband LLC, we define free cash flow as Adjusted 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.

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

TABLE 8
Footnotes

  1. See Table 7 for information regarding our use 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

  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.

About Mediacom

Mediacom Communications Corporation is the 5th largest cable operator in the U.S. serving over 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210225005555/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