Altice USA (NYSE: ATUS) today reports results for the fourth quarter and full year ended December 31, 2022.
Dennis Mathew, Altice USA Chief Executive Officer, said: "In the full year 2022, we made great progress against our key initiatives and began to see the benefits of our increased investments, notably around our fiber network expansion, accelerated new build activity, execution of the Suddenlink rebrand to Optimum, improvements in customer care and growing our distribution channels. We are pleased with our momentum as demonstrated by the sequential improvement in our subscriber trends in the fourth quarter. Looking ahead, we have a clear strategy centered around growing our broadband and mobile businesses by delivering best-in-class customer and employee experiences and we are committed to executing with discipline, setting us on a path to return to sustainable customer, revenue, and cash flow growth."
Key Financial Highlights
Q4-22 Summary Financials |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||
(in thousands) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenue |
$2,369,196 |
|
$2,521,138 |
|
$9,647,659 |
|
$10,090,849 |
Net income (loss) attributable to Altice USA, Inc. stockholders |
(193,113) |
|
251,662 |
|
194,563 |
|
990,311 |
Adjusted EBITDA(2) |
913,349 |
|
1,083,040 |
|
3,866,537 |
|
4,427,251 |
Capital Expenditures (cash) |
543,226 |
|
386,648 |
|
1,914,282 |
|
1,231,715 |
Revenue Growth and Adjusted EBITDA Detail |
|
Q4-22 |
FY-22 |
||
|
|
|
|
|
|
Total Revenue YoY |
|
(6.0 |
)% |
(4.4 |
)% |
excl. air strand revenue(1) |
|
(4.7 |
)% |
(3.2 |
)% |
|
|
|
|
|
|
Residential Revenue YoY |
|
(5.0 |
)% |
(4.0 |
)% |
|
|
|
|
|
|
Business Services Revenue YoY |
|
(9.3 |
)% |
(7.1 |
)% |
excl. air strand revenue(1) |
|
(0.4 |
)% |
0.6 |
% |
|
|
|
|
|
|
News & Advertising Revenue YoY |
|
(10.8 |
)% |
(5.5 |
)% |
excl. political revenue |
|
(25.0 |
)% |
(10.5 |
)% |
|
|
|
|
|
|
Adjusted EBITDA YoY |
|
(15.7 |
)% |
(12.7 |
)% |
excl. air strand revenue(1) |
|
(12.8 |
)% |
(10.3 |
)% |
Adjusted EBITDA Margin |
|
38.6 |
% |
40.1 |
% |
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 |
|
Q4-22 |
|
FY-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 |
|
4,498.5 |
|
4,498.5 |
Residential customer organic net losses |
(1.0) |
|
(11.9) |
|
(24.7) |
|
(13.2) |
|
(50.8) |
|
(20.7) |
|
(47.9) |
|
(49.5) |
|
(16.2) |
|
(134.3) |
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 |
|
4,282.9 |
|
4,282.9 |
Broadband organic net additions (losses) |
11.5 |
|
0.2 |
|
(13.1) |
|
(1.9) |
|
(3.3) |
|
(13.0) |
|
(39.6) |
|
(43.0) |
|
(7.7) |
|
(103.3) |
Key Operational Highlights
Fiber Rollout, Multi-Gig Fiber Internet and Network Expansion Update
FY 2023 Capex Guidance
Balance Sheet Review
As of December 31, 2022:
Successful Pricing of New Term Loan
On December 19, 2022, CSC Holdings entered into the thirteenth amendment under its existing credit facilities agreement (the "Thirteenth Amendment" or "Term Loan B-6"). The Term Loan B-6 provides for, among other things, new refinancing term loan commitments in an aggregate principal amount of $2.0 billion issued with an original issue discount of 200 basis points, with an extended maturity until the date that is the earlier of (i) January 15, 2028 and (ii) April 15, 2027 if, as of such date, any Term Loan B-5 borrowings are still outstanding, unless the Incremental Loan B-5 maturity date has been extended to a date falling after January 15, 2028.
Interest on the Term Loan B-6 will be calculated at a rate per annum equal to the Term SOFR rate or the alternate base rate, as applicable, plus the applicable margin, where the applicable margin is (i) with respect to any alternate base rate loan, 3.50% per annum and (ii) with respect to any Term SOFR loan, 4.50% per annum. The proceeds from the Term Loan B-6 were used to refinance (including by way of cashless roll) a portion of the Company's Term Loan B-1 and Term Loan B-3.
Shares Outstanding
As of December 31, 2022, the Company had 456,162,292 combined Class A and Class B shares outstanding.
Altice USA Consolidated Operating Results (In thousands, except per share data) (Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Broadband |
$ |
960,628 |
|
|
$ |
972,953 |
|
|
$ |
3,930,667 |
|
|
$ |
3,925,089 |
|
Video |
|
781,869 |
|
|
|
850,344 |
|
|
|
3,281,306 |
|
|
|
3,526,205 |
|
Telephony |
|
79,454 |
|
|
|
94,515 |
|
|
|
332,406 |
|
|
|
404,813 |
|
Residential revenue |
|
1,821,951 |
|
|
|
1,917,812 |
|
|
|
7,544,379 |
|
|
|
7,856,107 |
|
Business services and wholesale |
|
368,258 |
|
|
|
406,005 |
|
|
|
1,473,837 |
|
|
|
1,586,044 |
|
News and Advertising |
|
151,846 |
|
|
|
170,205 |
|
|
|
520,293 |
|
|
|
550,667 |
|
Mobile |
|
24,367 |
|
|
|
23,839 |
|
|
|
97,679 |
|
|
|
84,194 |
|
Other |
|
2,774 |
|
|
|
3,277 |
|
|
|
11,471 |
|
|
|
13,837 |
|
Total revenue |
|
2,369,196 |
|
|
|
2,521,138 |
|
|
|
9,647,659 |
|
|
|
10,090,849 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and other direct costs |
|
775,713 |
|
|
|
836,484 |
|
|
|
3,205,638 |
|
|
|
3,382,129 |
|
Other operating expenses |
|
725,709 |
|
|
|
619,633 |
|
|
|
2,735,469 |
|
|
|
2,379,765 |
|
Restructuring expense and other operating items(17) |
|
120,227 |
|
|
|
6,218 |
|
|
|
130,285 |
|
|
|
17,176 |
|
Depreciation and amortization (including impairments) |
|
446,430 |
|
|
|
460,010 |
|
|
|
1,773,673 |
|
|
|
1,787,152 |
|
Operating income |
|
301,117 |
|
|
|
598,793 |
|
|
|
1,802,594 |
|
|
|
2,524,627 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(377,072 |
) |
|
|
(311,907 |
) |
|
|
(1,331,636 |
) |
|
|
(1,266,591 |
) |
Gain (loss) on investments |
|
242,268 |
|
|
|
(240,549 |
) |
|
|
(659,792 |
) |
|
|
(88,898 |
) |
Gain (loss) on derivative contracts, net |
|
(218,041 |
) |
|
|
194,931 |
|
|
|
425,815 |
|
|
|
85,911 |
|
Gain on interest rate swap contracts |
|
2,828 |
|
|
|
33,135 |
|
|
|
271,788 |
|
|
|
92,735 |
|
Loss on extinguishment of debt and write-off of deferred financing costs |
|
(575 |
) |
|
|
— |
|
|
|
(575 |
) |
|
|
(51,712 |
) |
Other income, net |
|
339 |
|
|
|
2,229 |
|
|
|
8,535 |
|
|
|
9,835 |
|
Income (loss) before income taxes |
|
(49,136 |
) |
|
|
276,632 |
|
|
|
516,729 |
|
|
|
1,305,907 |
|
Income tax expense |
|
(143,277 |
) |
|
|
(15,922 |
) |
|
|
(295,840 |
) |
|
|
(294,975 |
) |
Net income (loss) |
|
(192,413 |
) |
|
|
260,710 |
|
|
|
220,889 |
|
|
|
1,010,932 |
|
Net income attributable to noncontrolling interests |
|
(700 |
) |
|
|
(9,048 |
) |
|
|
(26,326 |
) |
|
|
(20,621 |
) |
Net income (loss) attributable to Altice USA stockholders |
$ |
(193,113 |
) |
|
$ |
251,662 |
|
|
$ |
194,563 |
|
|
$ |
990,311 |
|
Basic net income (loss) per share |
$ |
(0.43 |
) |
|
$ |
0.56 |
|
|
$ |
0.43 |
|
|
$ |
2.16 |
|
Diluted net income (loss) per share |
$ |
(0.43 |
) |
|
$ |
0.56 |
|
|
$ |
0.43 |
|
|
$ |
2.14 |
|
Basic weighted average common shares |
|
453,276 |
|
|
|
453,228 |
|
|
|
453,244 |
|
|
|
458,311 |
|
Diluted weighted average common shares |
|
453,276 |
|
|
|
453,230 |
|
|
|
453,282 |
|
|
|
462,295 |
|
Altice USA Consolidated Statements of Cash Flows |
|||||||
(in thousands) (Unaudited) |
|||||||
|
December 31, |
||||||
|
2022 |
|
2021 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net income |
$ |
220,889 |
|
|
$ |
1,010,932 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization (including impairments) |
|
1,773,673 |
|
|
|
1,787,152 |
|
Loss on investments |
|
659,792 |
|
|
|
88,898 |
|
Gain on derivative contracts, net |
|
(425,815 |
) |
|
|
(85,911 |
) |
Loss on extinguishment of debt and write-off of deferred financing costs |
|
575 |
|
|
|
51,712 |
|
Amortization of deferred financing costs and discounts (premiums) on indebtedness |
|
77,356 |
|
|
|
91,226 |
|
Share-based compensation expense |
|
159,985 |
|
|
|
98,296 |
|
Deferred income taxes |
|
36,385 |
|
|
|
40,701 |
|
Decrease in right-of-use assets |
|
44,342 |
|
|
|
43,820 |
|
Provision for doubtful accounts |
|
88,159 |
|
|
|
68,809 |
|
Other |
|
3,460 |
|
|
|
4,928 |
|
Change in assets and liabilities, net of effects of acquisitions and dispositions: |
|
|
|
|
|
|
|
Accounts receivable, trade |
|
(45,279 |
) |
|
|
(30,379 |
) |
Prepaid expenses and other assets |
|
50,419 |
|
|
|
28,343 |
|
Amounts due from and due to affiliates |
|
(7,749 |
) |
|
|
23,758 |
|
Accounts payable and accrued liabilities |
|
46,724 |
|
|
|
(177,326 |
) |
Deferred revenue |
|
(14,953 |
) |
|
|
(40,929 |
) |
Interest rate swap contracts |
|
(301,062 |
) |
|
|
(149,952 |
) |
Net cash provided by operating activities |
|
2,366,901 |
|
|
|
2,854,078 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Capital expenditures |
|
(1,914,282 |
) |
|
|
(1,231,715 |
) |
Payment for acquisitions, net of cash acquired |
|
(2,060 |
) |
|
|
(340,444 |
) |
Other, net |
|
(5,168 |
) |
|
|
(1,444 |
) |
Net cash used in investing activities |
|
(1,921,510 |
) |
|
|
(1,573,603 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
Proceeds from long-term debt |
|
4,276,903 |
|
|
|
4,410,000 |
|
Repayment of debt |
|
(4,469,727 |
) |
|
|
(4,870,108 |
) |
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 |
|
(134,682 |
) |
|
|
(85,949 |
) |
Purchase of shares of Altice USA Class A common stock, pursuant to a share repurchase program |
|
— |
|
|
|
(804,928 |
) |
Other |
|
(8,400 |
) |
|
|
(11,539 |
) |
Net cash used in financing activities |
|
(335,906 |
) |
|
|
(1,362,524 |
) |
Net increase (decrease) in cash and cash equivalents |
|
109,485 |
|
|
|
(82,049 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
291 |
|
|
|
(662 |
) |
Net increase (decrease) in cash and cash equivalents |
|
109,776 |
|
|
|
(82,711 |
) |
Cash, cash equivalents and restricted cash at beginning of year |
|
195,975 |
|
|
|
278,686 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
305,751 |
|
|
$ |
195,975 |
|
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 and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring expense and other operating items (such as significant legal settlements, contractual payments for terminated employees, and impairments).
Adjusted EBITDA eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our business and from intangible assets recognized from acquisitions, as well as certain non-cash and other operating items that affect the period-to-period comparability of our operating performance. In addition, Adjusted EBITDA is unaffected by our capital and tax structures and by our investment activities.
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.
We revised our definition of Adjusted EBITDA in the fourth quarter of 2022 to exclude the impact of significant legal settlements. This revision did not impact amounts reported in prior periods.
Reconciliation of net income to Adjusted EBITDA and Operating Free Cash Flow (unaudited): |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
(in thousands) |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(192,413 |
) |
|
$ |
260,710 |
|
|
$ |
220,889 |
|
|
$ |
1,010,932 |
|
Income tax expense |
|
143,277 |
|
|
|
15,922 |
|
|
|
295,840 |
|
|
|
294,975 |
|
Other income, net |
|
(339 |
) |
|
|
(2,229 |
) |
|
|
(8,535 |
) |
|
|
(9,835 |
) |
Gain on interest rate swap contracts, net |
|
(2,828 |
) |
|
|
(33,135 |
) |
|
|
(271,788 |
) |
|
|
(92,735 |
) |
Loss (gain) on derivative contracts, net |
|
218,041 |
|
|
|
(194,931 |
) |
|
|
(425,815 |
) |
|
|
(85,911 |
) |
Loss (gain) on investments |
|
(242,268 |
) |
|
|
240,549 |
|
|
|
659,792 |
|
|
|
88,898 |
|
Loss on extinguishment of debt and write-off of deferred financing costs |
|
575 |
|
|
|
— |
|
|
|
575 |
|
|
|
51,712 |
|
Interest expense, net |
|
377,072 |
|
|
|
311,907 |
|
|
|
1,331,636 |
|
|
|
1,266,591 |
|
Depreciation and amortization (including impairments) |
|
446,430 |
|
|
|
460,010 |
|
|
|
1,773,673 |
|
|
|
1,787,152 |
|
Restructuring expense and other operating items |
|
120,227 |
|
|
|
6,218 |
|
|
|
130,285 |
|
|
|
17,176 |
|
Share-based compensation |
|
45,575 |
|
|
|
18,019 |
|
|
|
159,985 |
|
|
|
98,296 |
|
Adjusted EBITDA |
|
913,349 |
|
|
|
1,083,040 |
|
|
|
3,866,537 |
|
|
|
4,427,251 |
|
Capital Expenditures (cash) |
|
543,226 |
|
|
|
386,648 |
|
|
|
1,914,282 |
|
|
|
1,231,715 |
|
Operating Free Cash Flow |
$ |
370,123 |
|
|
$ |
696,392 |
|
|
$ |
1,952,255 |
|
|
$ |
3,195,536 |
|
Reconciliation of net cash flow from operating activities to Free Cash Flow (unaudited): |
||||||||||||
|
|
|
|
|
|
|
|
|||||
Net cash flows from operating activities |
$ |
461,185 |
|
|
$ |
676,599 |
|
$ |
2,366,901 |
|
$ |
2,854,078 |
Capital Expenditures (cash) |
|
543,226 |
|
|
|
386,648 |
|
|
1,914,282 |
|
|
1,231,715 |
Free Cash Flow |
$ |
(82,041 |
) |
|
$ |
289,951 |
|
$ |
452,619 |
|
$ |
1,622,363 |
Customer Metrics (in thousands, except per customer amounts) |
||||||||||||||
|
|
Q1-21 |
Q2-21(5) |
Q3-21 |
Q4-21 |
|
FY-21(5) |
|
Q1-22 |
Q2-22 |
Q3-22 |
Q4-22 |
|
FY-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 |
9,463.8 |
|
9,463.8 |
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 |
4,498.5 |
|
4,498.5 |
SMB |
|
375.8 |
380.7 |
381.6 |
381.9 |
|
381.9 |
|
382.9 |
383.1 |
382.5 |
381.2 |
|
381.2 |
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 |
4,879.7 |
|
4,879.7 |
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 |
4,282.9 |
|
4,282.9 |
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 |
2,439.0 |
|
2,439.0 |
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 |
1,764.1 |
|
1,764.1 |
Residential ARPU ($)(9) |
|
142.24 |
142.24 |
140.73 |
137.79 |
|
141.08 |
|
137.92 |
140.13 |
138.12 |
134.76 |
|
137.70 |
Fiber (FTTH) Customer Metrics (in thousands) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1-21 |
Q2-21 |
Q3-21 |
Q4-21 |
|
FY-21 |
|
Q1-22 |
Q2-22 |
Q3-22 |
Q4-22 |
|
FY-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 |
2,158.7 |
|
2,158.7 |
FTTH Total customer relationships(11) |
|
35.9 |
47.3 |
58.9 |
69.7 |
|
69.7 |
|
81.0 |
104.4 |
135.3 |
171.7 |
|
171.7 |
FTTH Residential |
|
35.9 |
47.3 |
58.7 |
69.3 |
|
69.3 |
|
80.4 |
103.7 |
134.2 |
170.0 |
|
170.0 |
FTTH SMB |
|
0.0 |
0.1 |
0.2 |
0.3 |
|
0.3 |
|
0.6 |
0.7 |
1.2 |
1.7 |
|
1.7 |
Consolidated Net Debt as of December 31, 2022 |
|||||
CSC Holdings, LLC Restricted Group (in $m) |
Principal Amount |
|
Coupon / Margin |
|
Maturity |
Drawn RCF |
$1,575 |
|
S+2.350% |
|
2025(12) |
Term Loan |
1,536 |
|
L+2.250% |
|
2025 |
Term Loan B-3 |
527 |
|
L+2.250% |
|
2026 |
Term Loan B-5 |
2,918 |
|
L+2.500% |
|
2027 |
Term Loan B-6 |
2,002 |
|
S+4.500% |
|
2028(13) |
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 |
23,092 |
|
|
|
|
CSC Holdings, LLC Restricted Group Cash |
(171) |
|
|
|
|
CSC Holdings, LLC Restricted Group Net Debt |
$22,921 |
|
|
|
|
|
|
|
|
|
|
CSC Holdings, LLC Restricted Group Undrawn RCF |
$769 |
|
|
|
|
Cablevision Lightpath LLC (in $m) |
Principal Amount |
|
Coupon / Margin |
|
Maturity |
Drawn RCF |
$— |
|
L+3.250% |
|
2025 |
Term Loan |
588 |
|
L+3.250% |
|
2027 |
Senior Secured Notes |
450 |
|
3.875% |
|
2027 |
Senior Notes |
415 |
|
5.625% |
|
2028 |
Cablevision Lightpath Gross Debt |
1,453 |
|
|
|
|
Cablevision Lightpath Cash |
(100) |
|
|
|
|
Cablevision Lightpath Net Debt |
$1,353 |
|
|
|
|
|
|
|
|
|
|
Cablevision Lightpath Undrawn RCF |
$100 |
|
|
|
|
Net Leverage Schedules as of December 31, 2022 (in $m) |
|||||||
|
CSC Holdings Restricted Group(14) |
|
Cablevision Lightpath LLC |
|
CSC Holdings Consolidated(15) |
|
Altice USA Consolidated |
|
|
|
|
|
|
|
|
Gross Debt Consolidated(16) |
$23,092 |
|
$1,453 |
|
$24,545 |
|
$24,545 |
Cash |
(171) |
|
(100) |
|
(305) |
|
(305) |
Net Debt Consolidated |
$22,921 |
|
$1,353 |
|
$24,240 |
|
$24,240 |
LTM EBITDA |
$3,633 |
|
$225 |
|
$3,867 |
|
$3,867 |
L2QA EBITDA |
$3,488 |
|
$237 |
|
$3,735 |
|
$3,735 |
Net Leverage (LTM) |
6.3x |
|
6.0x |
|
6.3x |
|
6.3x |
Net Leverage (L2QA) |
6.6x |
|
5.7x |
|
6.5x |
|
6.5x |
WACD (%) |
5.7% |
|
5.4% |
|
5.7% |
|
5.7% |
Reconciliation to Financial Reported Debt |
|
|
Actual |
Total Debenture and Loans from Financial Institutions (Carrying Amount) |
$24,469 |
Unamortized financing costs and discounts, net of unamortized premiums |
24 |
Fair value adjustments |
52 |
Gross Debt Consolidated(16) |
24,545 |
Finance leases and other notes |
372 |
Total Debt |
24,917 |
Cash |
(305) |
Net Debt |
$24,612 |
_______________________________ | |
(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 include approximately 31.6k 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. 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. |
(12) |
The CSC Holdings' revolving credit facility is due on the earlier of (i) July 13, 2027 and (ii) April 17, 2025 if, as of such date, any Term Loan borrowings are still outstanding, unless the Term Loan maturity date has been extended to a date falling after July 13, 2027. |
(13) |
The Term Loan B-6 that is due on the earlier of (i) January 15, 2028 and (ii) April 15, 2027 if, as of such date, any Term Loan B-5 are still outstanding, unless the Term Loan B-5 maturity date has been extended to a date falling after January 15, 2028. |
(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. |
(16) |
Principal amount of debt excluding finance leases and other notes and collateralized debt. |
(17) |
Includes a legal settlement with T-Mobile of $112.5 million in Q4 2022 related to a legacy Sprint VOIP patent dispute. The Company paid $65 million in December 2022 and the balance of $47.5 million is payable on or before June 30, 2024. |
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 approximately 4.9 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, 2022 and previous 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230222005846/en/
Investor Relations
Nick Brown: +1 917 589 9983 / [email protected]
Sarah Freedman: +1 631 660 8714 / [email protected]
Communications
Lisa Anselmo: +1 516 279 9461 / [email protected]
Janet Meahan: +1 516 519 2353 / [email protected]