Altice USA (NYSE:ATUS) today reported results for the fourth quarter and full year ended December 31, 2018.
Dexter Goei, Altice USA Chief Executive Officer, said: "Altice USA has once again delivered great financial performance, meeting all of our guidance targets for 2018, and hitting many more operational milestones. Throughout the year, we drove improved subscriber trends and accelerated revenue growth, achieved our highest ever margins, and generated material growth in free cash flow. We enter 2019 continuing on our fast-paced journey defined by innovation and simplicity to deliver state-of-the-art connectivity services, advanced business solutions and high-quality content.”
Altice USA Key Financial Highlights
Three Months Ended |
Twelve Months Ended |
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($k) | 2018 | 2017 | 2018 | 2017 | |||||
Actual | Actual | Actual | Actual | ||||||
Revenue | $2,454,940 | $2,359,808 | $9,566,608 | $9,306,950 | |||||
Adjusted EBITDA(1) | 1,106,097 | 1,034,960 | 4,163,078 | 3,981,410 | |||||
Net income attributable to Altice USA, Inc. stockholders | 213,086 | 2,242,475 | 18,833 | 1,493,177 | |||||
Capital Expenditures (cash) | 320,765 | 232,430 | 1,153,589 | 951,349 | |||||
Altice USA Operational Highlights
Altice USA FY 2018 Guidance Achieved
For the full year 2018, Altice USA achieved revenue growth of 2.8% YoY (in line with guidance for ~2.5-3.0% YoY growth), Adjusted EBITDA margin expansion of 0.7 percentage points YoY (in line with guidance for Adjusted EBITDA margin expansion) and reported annual capex of $1.15bn (in line with guidance to be less than $1.3bn). Altice USA also reached its year-end leverage target of 4.5x to 5.0x net debt / Adjusted EBITDA, reporting 4.9x at the end of 2018 on a L2QA basis.
Altice USA FY 2019 Outlook
For the full year 2019 Altice USA expects:
Additional Q4 2018 Highlights
Product & Service Enhancements
Altice USA unveiled its Altice One Operating System (OS) 2.0, an update to its Altice One entertainment and connectivity platform that adds enhanced mobility and more advanced features for customers, including the ability to watch Cloud DVR content on the go on the Altice One mobile app. OS 2.0 also brings Altice One customers access to the YouTube Kids app, the ability to use voice search on YouTube to discover videos, more 4K content for a vivid viewing experience, and live show restart on more than 20 additional networks. Altice One has transformed the way Optimum and Suddenlink customers connect to the content they love by simplifying their entertainment experience and providing expansive WiFi coverage to power their homes. Altice USA continues to make updates and enhancements to evolve the Altice One experience for its customers.
Network Investments to Enhance Broadband Speeds, Video Services and Reliability
Altice Fiber symmetrical 1Gbps internet service (up to 10G+ capable) over Altice’s new fiber-to-the-home (FTTH) network is now being rolled out to residential customers in select areas of Long Island, New Jersey and Connecticut. Altice Fiber provides an unmatched experience to support the most data intensive activities, from streaming 4K ultra-high-definition (UHD) and high-definition (HD) video on multiple devices, enjoying multi-player gaming experiences, video chat, streaming music, high-quality virtual- and augmented-reality experiences, and downloading large files simultaneously on dozens of devices at once. The Altice Fiber Gateway is the first all-in-one integrated Giga-optics router and smart WiFi device offered by an MSO in the United States. The Gateway optimizes traffic on the home WiFi network to enable a superior experience. This includes simultaneous dual-band WiFi that automatically switches frequencies based on the bandwidth and range needs of the device in use, WiFi extenders available to create a mesh network for increased coverage, and the ability to manage the home WiFi experience via an intuitive app. The Altice Fiber service will roll out to additional areas throughout Altice’s New York area region as the company continues to deploy and activate its FTTH network.
In addition to its fiber deployment, Altice USA is enhancing broadband services on its existing hybrid fiber-coaxial (HFC) network in the Optimum service area, now delivering broadband speeds of up to 400 Mbps for residential customers and with plans to launch 1 Gbps (Gigabit) service and smart WiFi capabilities over HFC in 2019. In addition, further 1 Gbps capacity will be added in certain areas in the Suddenlink service area, as well as continuing to build new homes at an accelerated pace. As a result of recent enhancements to Altice USA’s network and with the launch of Altice One, an increasing number of consumers are selecting increased broadband speeds and using more data:
Mobile
During the fourth quarter, Altice USA completed its development of the core network to support its infrastructure-based MVNO including upgrading and expanding its WiFi network. Approximately 19 thousand AirStrands have now been deployed with the Sprint partnership, representing the quickest and largest deployment of its kind in the United States to date, leveraging Altice USA’s existing network infrastructure. The commercial launch of a mobile service for Altice USA customers is still on track for 2019.
Advertising and News Businesses
a4, Altice USA’s cross-screen targeted advertising company, introduced Athena, a next generation platform that simplifies the media planning process. Athena enables marketers to plan and activate true cross-screen campaigns, locally and nationally, in just minutes. The data that powers it streamlines the processes of creating audience segments and planning - as well as activating - media across screens including TV, digital video and display, OTT and social media. This effectively balances the reach and frequency of a campaign for a given target audience. Athena is the first application that truly places the end-to-end power and control into the hands of marketers.
Altice USA’s News businesses continued to perform well in the fourth quarter. i24NEWS continued to expand distribution and is now available on Comcast, Charter / Spectrum, Mediacom, and Altice USA’s Optimum and Suddenlink systems with more to come. The network also grew its viewership and consistently maintained a lead over other international news networks. News 12 Networks, the company’s hyper-local news network in the NY tri-state area, remains the most viewed TV network in Optimum households, and TV ratings continue to grow. News 12 also saw significant increases in unique visitors to its digital and mobile platforms and continues to invest in its digital offerings (digital viewership growing over 20% YoY with over 60% YoY growth of total video views on News 12 websites). In the fourth quarter, News 12 provided deep political coverage on the 2018 Midterm election which drove high ratings, beating many broadcast affiliates in the Optimum footprint in terms of viewership.
Share repurchases
In conjunction with the separation from Altice Europe NV (Euronext: ATC, ATCB), the Board of Directors of Altice USA authorized a share repurchase program of $2.0bn, effective June 8, 2018. Under the repurchase program, shares of Altice USA Class A common stock may be purchased from time to time in the open market and may include trading plans entered into with one or more brokerage firms in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934. From inception through December 31, 2018, Altice USA repurchased an aggregate of 28,028,680 shares for a total purchase price of approximately $500m (including $259m in Q4), equivalent to $17.84 per share. The acquired shares were retired and the cost for these shares was recorded in paid in capital in Altice USA’s consolidated balance sheet. As of December 31, 2018, Altice USA had 709,040,286 combined Class A and Class B shares outstanding.
For the full year 2019, Altice USA is targeting a further $1.5bn of share repurchases excluding any potential merger, asset sale and acquisition (M&A) activity.
Combination of Suddenlink (Cequel) and Optimum (Cablevision) Businesses under Single Credit Silo
Following the initial public offering of Altice USA and subsequent separation from Altice Europe NV, on October 2, 2018, Altice USA announced its intention to further simplify its structure and operations by combining (the “Combination”) the Suddenlink (Cequel) and Optimum (Cablevision) businesses under a single credit silo.
The Combination marks a significant milestone in the integration of the Suddenlink and Optimum businesses and aligns Altice USA’s debt capital structure with the way Altice USA is managed: as a unified company with a common strategy. The Combination has resulted in a more diversified credit silo which has simplified Altice USA’s financing strategy and financial reporting requirements. The Combination was leverage neutral for Altice USA.
The Combination was effected mainly by the following transactions:
The closing of the Combination was completed on November 27, 2018, following receipt of relevant regulatory approvals and other customary conditions.
Other Significant Events
Additional $5 Billion of Refinancing Activity in 2019 YTD
In January 2019, Altice USA’s wholly owned subsidiary CSC Holdings issued $1.5bn in aggregate principal amount of senior guaranteed notes due 2029 (“CSC Holdings 2029 Guaranteed Notes”). The notes bear interest at a rate of 6.5% and will mature on February 1, 2029. The net proceeds from the sale of the notes were used to repay certain indebtedness, including to repay at maturity $526m aggregate principal amount of CSC Holdings' 8.625% senior notes due February 2019 plus accrued interest, redeem approximately $905m of the aggregate outstanding amount of CSC Holdings' 10.125% senior notes due 2023 at a redemption price of 107.594% plus accrued interest, and paid fees and expenses associated with the transactions.
Subsequently in February 2019, CSC Holdings issued an additional $250m principal amount of CSC Holdings 2029 Guaranteed Notes at a price of 101.75% of the principal value with the net proceeds used to repay $250m of amounts outstanding under the revolving credit facility.
In January 2019, CSC Holdings also obtained commitments to refinance its existing revolving credit facility. After the refinancing, the total size of the new revolving credit facility is $2.56bn, including $2.17bn extended to January 2024 and priced at LIBOR plus 2.25%. The remaining $392m matures in November 2021.
In February 2019, CSC Holdings entered into a $1.0bn senior secured Term Loan B-4 maturing on April 15, 2027, the proceeds of which were used to redeem $895m in aggregate principal amount of CSC Holdings’ 10.125% Senior Notes due 2023, representing the entire aggregate principal amount outstanding, and paying related fees, costs and expenses. The Incremental Term Loan B-4 bears interest at a rate per annum equal to LIBOR plus 3.00% and was issued with an original issue discount of 1.0%.
Following all of this recent refinancing activity, Altice USA’s average cost of debt was reduced from 6.5% to 6.1% (representing an annual interest cost saving of over $80m) with the average maturity of its debt increasing from 5.9 to 6.6 years (as of the end of December 2018). Through a series of separate floating-for-fixed interest rate swap transactions, Altice USA also increased its percentage of fixed rate debt to approximately 75% as of the end of December 2018 (pro forma for the recent refinancing activity).
Financial and Operational Review
For quarter and full year ended December 31, 2018 compared to quarter and full year ended December 31, 2017
Altice USA Consolidated Operating Results | |||||||||
(Dollars in thousands, except per share data) | |||||||||
Three Months Ended |
Twelve Months Ended |
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2018 | 2017 (5) | 2018 | 2017 (5) | ||||||
Actual | Actual | Actual | Actual | ||||||
Revenue: | |||||||||
Pay TV | $1,033,649 | $1,049,135 | $4,156,428 | $4,274,122 | |||||
Broadband | 743,725 | 681,779 | 2,887,455 | 2,608,595 | |||||
Telephony | 162,007 | 169,064 | 652,895 | 700,765 | |||||
Business services and wholesale | 348,087 | 330,510 | 1,362,758 | 1,298,213 | |||||
Advertising | 162,103 | 121,712 | 482,649 | 391,866 | |||||
Other | 5,369 | 7,608 | 24,423 | 33,389 | |||||
Total revenue | 2,454,940 | 2,359,808 | 9,566,608 | 9,306,950 | |||||
Operating expenses: | |||||||||
Programming and other direct costs | 800,055 | 763,508 | 3,173,076 | 3,035,655 | |||||
Other operating expenses | 562,424 | 577,838 | 2,290,266 | 2,347,315 | |||||
Restructuring and other expense | 8,683 | 9,636 | 38,548 | 152,401 | |||||
Depreciation and amortization (including impairments) | 555,054 | 791,771 | 2,382,339 | 2,930,571 | |||||
Operating income | 528,724 | 217,055 | 1,682,379 | 841,008 | |||||
Other income (expense): | |||||||||
Interest expense, net | (397,874) | (369,854) | (1,545,426) | (1,601,211) | |||||
Gain (loss) on investments and sale of affiliate interests, net | (68,846) | 67,466 | (250,877) | 237,354 | |||||
Gain (loss) on derivative contracts, net | 87,965 | (82,060) | 218,848 | (236,330) | |||||
Gain (loss) on interest rate swap contracts | 2,708 | (7,057) | (61,697) | 5,482 | |||||
Loss on extinguishment of debt and write-off of deferred financing costs | (7,188) | — | (48,804) | (600,240) | |||||
Other loss, net | (11) | (4,632) | (12,484) | (13,651) | |||||
Income (loss) before income taxes | 145,478 | (179,082) | (18,061) | (1,367,588) | |||||
Income tax benefit | 68,330 | 2,422,407 | 38,655 | 2,862,352 | |||||
Net income | 213,808 | 2,243,325 | 20,594 | 1,494,764 | |||||
Net income attributable to noncontrolling interests | (722) | (850) | (1,761) | (1,587) | |||||
Net income attributable to Altice USA stockholders | $213,086 | $2,242,475 | $18,833 | $1,493,177 | |||||
Basic and diluted net income per share | $0.30 | $3.04 | $0.03 | $2.15 | |||||
Basic and diluted weighted average common shares | 713,478 | 737,069 | 730,088 | 696,055 | |||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA less Cash Capital Expenditures:
We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) excluding income taxes, other 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 and sale of affiliate interests, net, interest expense (including cash interest expense), interest income, depreciation and amortization (including impairments), share-based compensation expense or benefit, restructuring expense or credits 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 Adjusted EBITDA less cash Capital Expenditures, or Operating Free Cash Flow, as an indicator of the Company’s financial performance. We believe this measure is one of several benchmarks used by investors, analysts and peers for comparison of performance in the Company’s industry, although it may not be directly comparable to similar measures reported by other companies.
Altice USA |
Three Months Ended December 31, |
Twelve Months Ended December 31, |
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(Dollars in thousands) | 2018 | 2017 (6) | 2018 | 2017 (6) | |||||
Actual | Actual | Actual | Actual | ||||||
Net income | $213,808 | $2,243,325 | $20,594 | $1,494,764 | |||||
Income tax benefit | (68,330) | (2,422,407) | (38,655) | (2,862,352) | |||||
Other expense, net | 11 | 4,632 | 12,484 | 13,651 | |||||
Loss (gain) on interest rate swap contracts | (2,708) | 7,057 | 61,697 | (5,482) | |||||
Loss (gain) on derivative contracts, net | (87,965) | 82,060 | (218,848) | 236,330 | |||||
Loss (gain) on investments and sales of affiliate interests, net | 68,846 | (67,466) | 250,877 | (237,354) | |||||
Loss on extinguishment of debt and write-off of deferred financing costs | 7,188 | — | 48,804 | 600,240 | |||||
Interest expense, net | 397,874 | 369,854 | 1,545,426 | 1,601,211 | |||||
Depreciation and amortization | 555,054 | 791,771 | 2,382,339 | 2,930,571 | |||||
Restructuring and other expense | 8,683 | 9,636 | 38,548 | 152,401 | |||||
Share-based compensation | 13,636 | 16,498 | 59,812 | 57,430 | |||||
Adjusted EBITDA | $1,106,097 | $1,034,960 | $4,163,078 | $3,981,410 | |||||
Capital Expenditures (accrued) | 418,899 | 342,771 | 1,305,104 | 1,020,761 | |||||
Adjusted EBITDA less Capex (accrued) | $687,198 | $692,189 | $2,857,974 | $2,960,649 | |||||
Capital Expenditures (cash) | 320,765 | 232,430 | 1,153,589 | 951,349 | |||||
Adjusted EBITDA less Capex (cash) | $785,332 | $802,530 | $3,009,489 | $3,030,061 | |||||
Altice USA Customer Metrics (in thousands, except per customer amounts) | |||||||||||||||||||||
Q1-17 | Q2-17 | Q3-17 | Q4-17 | FY-17 | Q1-18 | Q2-18 | Q3-18 | Q4-18 | FY-18 | ||||||||||||
Homes passed (7) | 8,547.2 | 8,570.1 | 8,577.2 | 8,620.9 | 8,620.9 | 8,642.0 | 8,671.0 | 8,701.7 | 8,737.3 | 8,737.3 | |||||||||||
Residential | 4,548.4 | 4,536.9 | 4,529.0 | 4,535.0 | 4,535.0 | 4,543.4 | 4,539.8 | 4,534.9 | 4,542.1 | 4,542.1 | |||||||||||
SMB | 364.7 | 367.3 | 369.1 | 371.3 | 371.3 | 373.2 | 375.3 | 376.3 | 377.5 | 377.5 | |||||||||||
Total Unique Customer Relationships (8) | 4,913.1 | 4,904.3 | 4,898.1 | 4,906.3 | 4,906.3 | 4,916.6 | 4,915.1 | 4,911.2 | 4,919.6 | 4,919.6 | |||||||||||
Pay TV | 3,499.8 | 3,462.7 | 3,430.2 | 3,405.5 | 3,405.5 | 3,375.1 | 3,350.9 | 3,322.8 | 3,307.5 | 3,307.5 | |||||||||||
Broadband | 4,002.8 | 4,004.4 | 4,020.9 | 4,046.2 | 4,046.2 | 4,072.6 | 4,082.1 | 4,096.3 | 4,118.1 | 4,118.1 | |||||||||||
Telephony | 2,551.0 | 2,543.8 | 2,547.2 | 2,557.4 | 2,557.4 | 2,549.7 | 2,545.6 | 2,533.5 | 2,531.2 | 2,531.2 | |||||||||||
Total Residential RGUs | 10,053.6 | 10,010.9 | 9,998.3 | 10,009.1 | 10,009.1 | 9,997.4 | 9,978.6 | 9,952.6 | 9,956.8 | 9,956.8 | |||||||||||
Residential ARPU ($) (9) | 138.87 | 138.83 | 139.77 | 139.75 | 139.46 | 139.63 | 140.19 | 142.96 | 142.44 | 141.32 | |||||||||||
Optimum Customer Metrics (in thousands, except per customer amounts) |
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Q1-17 | Q2-17 | Q3-17 | Q4-17 | FY-17 | Q1-18 | Q2-18 | Q3-18 | Q4-18 | FY-18 | ||||||||||||
Homes passed (7) | 5,128.4 | 5,139.7 | 5,134.4 | 5,163.9 | 5,163.9 | 5,174.0 | 5,187.3 | 5,197.3 | 5,209.4 | 5,209.4 | |||||||||||
Residential | 2,886.9 | 2,889.1 | 2,887.0 | 2,893.4 | 2,893.4 | 2,888.0 | 2,889.7 | 2,882.8 | 2,886.1 | 2,886.1 | |||||||||||
SMB | 261.2 | 261.8 | 261.9 | 262.6 | 262.6 | 263.2 | 263.8 | 263.1 | 263.0 | 263.0 | |||||||||||
Total Unique Customer Relationships (8) | 3,148.2 | 3,150.9 | 3,148.9 | 3,156.0 | 3,156.0 | 3,151.2 | 3,153.5 | 3,145.9 | 3,149.1 | 3,149.1 | |||||||||||
Pay TV | 2,412.8 | 2,400.9 | 2,382.2 | 2,363.2 | 2,363.2 | 2,340.1 | 2,327.3 | 2,306.6 | 2,290.5 | 2,290.5 | |||||||||||
Broadband | 2,636.4 | 2,646.0 | 2,653.1 | 2,670.0 | 2,670.0 | 2,673.4 | 2,681.3 | 2,682.9 | 2,694.6 | 2,694.6 | |||||||||||
Telephony | 1,955.0 | 1,954.3 | 1,958.8 | 1,965.0 | 1,965.0 | 1,953.5 | 1,949.4 | 1,942.8 | 1,941.3 | 1,941.3 | |||||||||||
Total Residential RGUs | 7,004.2 | 7,001.2 | 6,994.1 | 6,998.2 | 6,998.2 | 6,967.0 | 6,958.0 | 6,932.3 | 6,926.4 | 6,926.4 | |||||||||||
Residential ARPU ($) (9) | 155.52 | 155.47 | 156.55 | 155.39 | 155.79 | 154.48 | 155.69 | 158.39 | 157.36 | 156.36 | |||||||||||
Suddenlink Customer Metrics (in thousands, except per customer amounts) |
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Q1-17 | Q2-17 | Q3-17 | Q4-17 | FY-17 | Q1-18 | Q2-18 | Q3-18 | Q4-18 | FY-18 | ||||||||||||
Homes passed (7) | 3,418.7 | 3,430.4 | 3,442.8 | 3,457.1 | 3,457.1 | 3,468.0 | 3,483.7 | 3,504.4 | 3,527.9 | 3,527.9 | |||||||||||
Residential | 1,661.5 | 1,647.8 | 1,642.0 | 1,641.5 | 1,641.5 | 1,655.5 | 1,650.1 | 1,652.1 | 1,656.0 | 1,656.0 | |||||||||||
SMB | 103.4 | 105.5 | 107.2 | 108.7 | 108.7 | 109.9 | 111.5 | 113.2 | 114.4 | 114.4 | |||||||||||
Total Unique Customer Relationships (8) | 1,764.9 | 1,753.3 | 1,749.2 | 1,750.2 | 1,750.2 | 1,765.4 | 1,761.6 | 1,765.3 | 1,770.4 | 1,770.4 | |||||||||||
Pay TV | 1,087.0 | 1,061.8 | 1,048.0 | 1,042.4 | 1,042.4 | 1,035.0 | 1,023.6 | 1,016.2 | 1,017.0 | 1,017.0 | |||||||||||
Broadband | 1,366.5 | 1,358.4 | 1,367.8 | 1,376.2 | 1,376.2 | 1,399.2 | 1,400.8 | 1,413.4 | 1,423.5 | 1,423.5 | |||||||||||
Telephony | 596.0 | 589.5 | 588.4 | 592.3 | 592.3 | 596.2 | 596.1 | 590.7 | 589.8 | 589.8 | |||||||||||
Total Residential RGUs | 3,049.4 | 3,009.7 | 3,004.2 | 3,010.9 | 3,010.9 | 3,030.4 | 3,020.5 | 3,020.3 | 3,030.3 | 3,030.3 | |||||||||||
Residential ARPU ($) (9) | 109.88 | 109.81 | 110.30 | 112.21 | 110.81 | 113.58 | 113.10 | 115.98 | 116.43 | 114.97 | |||||||||||
Consolidated Net Debt as of December 31, 2018, Actual and Pro Forma
Altice USA (CSC Holdings) In $m | Actual | Pro Forma | Coupon / Margin | Maturity | |||||
Guaranteed Notes | 1,096 | 1,096 | 5.375% | 2023 | |||||
Guaranteed Notes | 1,000 | 1,000 | 6.625% | 2025 | |||||
Guaranteed Notes | 1,499 | 1,499 | 5.500% | 2026 | |||||
Guaranteed Notes | 1,310 | 1,310 | 5.500% | 2027 | |||||
Guaranteed Notes | 1,000 | 1,000 | 5.375% | 2028 | |||||
New Guaranteed Notes | — | 1,750 | 6.500% | 2029 | |||||
Senior Notes | 526 | — | 8.625% | 2019 | |||||
Senior Notes | 1,000 | 1,000 | 6.750% | 2021 | |||||
Senior Notes | 1,241 | 1,241 | 5.125% | 2021 | |||||
Senior Notes | 1,800 | — | 10.125% | 2023 | |||||
Senior Notes | 750 | 750 | 5.250% | 2024 | |||||
Senior Notes | 1,684 | 1,684 | 10.875% | 2025 | |||||
Senior Notes | 618 | 618 | 7.750% | 2025 | |||||
Senior Notes | 1,046 | 1,046 | 7.500% | 2028 | |||||
Term Loan | 2,955 | 2,955 | L+2.250% | 2025 | |||||
Term Loan B-2 | 1,493 | 1,493 | L+2.50% | 2026 | |||||
Term Loan B-3 | 1,275 | 1,275 | L+2.250% | 2026 | |||||
New Term Loan B-4 | — | 1,000 | L+3.000% | 2027 | |||||
Drawn RCF | 250 | 200 | L+2.250% | 2021,2024 | |||||
Other debt & leases | 33 | 33 | |||||||
CSC Holdings Total Debt | 20,576 | 20,950 | |||||||
Senior Notes | 500 | 500 | 8.000% | 2020 | |||||
Senior Notes | 649 | 649 | 5.875% | 2022 | |||||
Legacy unexchanged Cequel Notes | 15 | 15 | |||||||
Cablevision Total Debt | 21,740 | 22,114 | |||||||
Total Cash | (299) | (299) | |||||||
Cablevision Net Debt | 21,441 | 21,815 | |||||||
Altice USA Net Debt | 21,441 | 21,815 | |||||||
Undrawn RCF | 2,050 | 2,360 | |||||||
WACD (%) | 6.5% | 6.1% | |||||||
Altice USA Net Leverage Reconciliation as of December 31, 2018
In $m | ||||
Altice USA |
Actual | |||
Gross Debt Consolidated | $21,740 | |||
Cash | (299) | |||
Net Debt Consolidated | 21,441 | |||
LTM EBITDA (10) | 4,176.6 | |||
L2QA EBITDA (10) | 4,353.2 | |||
Net Leverage (LTM) | 5.1x | |||
Net Leverage (L2QA) | 4.9x | |||
In $m | |||
Altice USA Reconciliation to Financial Reported Debt |
Actual | ||
Total Debenture and Loans from Financial Institutions (Carrying Amount) | $21,275 | ||
Unamortized Financing Costs | 256 | ||
Fair Value Adjustments | 176 | ||
Total Value of Debenture and Loans from Financial Institutions (Principal Amount) | 21,707 | ||
Other Debt & Capital Leases | 33 | ||
Gross Debt Consolidated | 21,740 | ||
Cash | (299) | ||
Net Debt Consolidated | $21,441 | ||
About Altice USA
Altice USA (NYSE: ATUS) is one of the largest broadband communications and video services providers in the United States, delivering broadband, pay television, telephony services, proprietary content and advertising services to approximately 4.9 million Residential and Business customers across 21 states through its Optimum and Suddenlink brands.
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(1) | See “Reconciliation of Net income (loss) to Adjusted EBITDA and Adjusted EBITDA less Cash Capital Expenditures” on page 9 of this release. Operating Free Cash Flow (“OpFCF”) defined here as Adjusted EBITDA less cash capital expenditures. | |
(2) | Free Cash Flow defined here as cash flow from operating activities less cash capital expenditures (including deductions of cash interest, cash taxes and net changes in working capital). | |
(3) | As of January 2019 | |
(4) | Excluding leases / other debt. | |
(5) | Amounts for 2017 have been adjusted following required GAAP accounting standard changes to reflect the adoption of ASC 606, Revenue from Contracts with Customers, and ASU No. 2017-07 Compensation Retirement Benefits (Topic 715) | |
(6) | Amounts for 2017 have been adjusted following required GAAP accounting standard changes to reflect the adoption of ASC 606, Revenue from Contracts with Customers, and ASU No. 2017-07 Compensation Retirement Benefits (Topic 715). | |
(7) | Homes passed represents the estimated number of single residence homes, apartments and condominium units passed by the cable distribution network in areas serviceable without further extending the transmission lines. In addition, it includes commercial establishments that have connected to our cable distribution network. For Suddenlink, broadband services were not available to approximately 100 homes passed and telephony services were not available to approximately 500 homes passed. | |
(8) | 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. In calculating the number of customers, we count all customers other than inactive/disconnected customers. 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. | |
(9) | ARPU calculated by dividing the average monthly revenue for the respective quarter or annual periods derived from the sale of broadband, pay television and telephony services to Residential customers for the respective quarter by the average number of total Residential customers for the same period. Historical ARPU figures have been adjusted to reflect the adoption of the accounting standard change ASC 606, Revenue from Contracts with Customers. | |
(10) | Excludes management fees. | |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190221005892/en/
Head of Investor Relations
Nick Brown: +1 917 589 9983 / [email protected]
Head of Communications
Lisa Anselmo: +1 929 418-4362 / [email protected]