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Exhibit 99.1

 

LOGO   

 

For Immediate Release

Mediacom Broadband LLC and Mediacom LLC Report

Results for Fourth Quarter and Full Year 2011

 

 

Middletown, NY – March 9, 2012 – MEDIACOM BROADBAND LLC AND MEDIACOM LLC, wholly-owned subsidiaries of Mediacom Communications Corporation, today each reported unaudited financial and operating highlights for the three months and year ended December 31, 2011. These results for each of Mediacom Broadband LLC and Mediacom LLC remain subject to adjustments based upon completion of their respective audits for the year ended December 31, 2011.

Mediacom Broadband LLC*

Fourth Quarter 2011 Highlights:

 

   

Revenues were $219.1 million, reflecting a 2.0% increase from the prior year period

 

   

OIBDA was $86.7 million, reflecting an 11.9% increase from the prior year period

 

   

Free cash flow of $2.6 million, compared to $12.2 million in the prior year period

Full Year 2011 Highlights:

 

   

Revenues were $874.8 million, reflecting a 3.2% increase from the prior year

 

   

OIBDA was $333.5 million, reflecting an 8.0% increase from the prior year

 

   

Free cash flow of $41.8 million, compared to $41.5 million in the prior year

Mediacom LLC*

Fourth Quarter 2011 Highlights:

 

   

Revenues were $167.9 million, reflecting a 2.3% increase from the prior year period

 

   

Adjusted OIBDA was $71.3 million, reflecting a 10.2% increase from the prior year period

 

   

Free cash flow of $17.9 million, compared to $18.8 million in the prior year period

Full Year 2011 Highlights:

 

   

Revenues were $675.6 million, reflecting a 3.7% increase from the prior year

 

   

Adjusted OIBDA was $273.4 million, reflecting a 7.0% increase from the prior year

 

   

Free cash flow of $77.0 million, compared to $68.8 million in the prior year

About Mediacom

Mediacom Communications is the nation’s eighth largest cable television company and one of the leading cable operators focused on serving the smaller cities in the United States, with a significant concentration in the Midwestern and Southeastern regions. Mediacom Communications offers a wide array of broadband products and services, including digital television, video-on-demand, digital video recorders, high-definition television, as well as high-speed Internet access and phone service. Mediacom Communications also offers affordable broadband communications solutions that can be tailored to any size business through Mediacom Business. For more information about Mediacom Communications, please visit www.mediacomcc.com.

 

Contacts:   

Investor Relations

  

Media Relations

Calvin G. Craib

  

Thomas J. Larsen

Senior Vice President, Corporate Finance

  

Group Vice President, Legal and Public Affairs

(845) 695-2675

  

(845) 695-2754

 

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


TABLE 1*

Mediacom Broadband LLC

Selected Financial and Operating Data

(Dollars in thousands, except per unit data)

(Unaudited)

 

     Three Months Ended
December 31,
       
     2011     2010     YoY% Change  

Video

   $ 125,818      $ 128,350        (2.0 )% 

High-speed data

     60,803        54,582        11.4

Phone

     17,835        16,125        10.6

Advertising

     14,644        15,768        (7.1 )% 
  

 

 

   

 

 

   

 

 

 

Total revenues

   $ 219,100      $ 214,825        2.0

Service costs

     (84,245     (89,172     (5.5 )% 

SG&A expenses

     (43,738     (44,211     (1.1 )% 

Management fees

     (4,377     (3,947     10.9
  

 

 

   

 

 

   

 

 

 

OIBDA (a)

   $ 86,740      $ 77,495        11.9

Cash interest expense (a)

     (26,864     (26,564     1.1

Capital expenditures (b)

     (52,770     (34,249     54.1

Dividend to preferred members

     (4,500     (4,500     —     
  

 

 

   

 

 

   

 

 

 

Free cash flow (a)

   $ 2,606      $ 12,182        (78.6 )% 
  

 

 

   

 

 

   

 

 

 

OIBDA margin (c)

     39.6     36.1  

 

     December 31, 2011     December 31, 2010  

Bank credit facility

   $ 1,497,000      $ 1,365,000   

8 1/2% senior notes due 2015

     500,000        500,000   
  

 

 

   

 

 

 

Total debt

   $ 1,997,000      $ 1,865,000   
  

 

 

   

 

 

 

Unused revolving credit commitments

   $ 60,400      $ 427,200   

Total leverage ratio (d)

     5.76     6.02

Interest coverage ratio (e)

     3.23     2.92

 

     December 31, 2011      December 31, 2010  

Basic subscribers

     596,000         663,000   

High-speed data customers

     468,000         459,000   

Phone customers

     180,000         175,000   
  

 

 

    

 

 

 

Primary service units (“PSUs”)

     1,244,000         1,297,000   

Digital customers

     415,000         409,000   
  

 

 

    

 

 

 

Revenue generating units

     1,659,000         1,706,000   
  

 

 

    

 

 

 

Customer relationships (f)

     701,000         729,000   

Average total monthly revenue per:

     

Basic subscriber (g)

   $ 120.92       $ 107.60   

PSU (h)

   $ 58.38       $ 55.32   

Customer relationship (i)

   $ 103.67       $ 97.96   

 

* See Tables 3 and 7.

 

Page 2 of 7


TABLE 2*

Mediacom Broadband LLC

Selected Financial Data

(Dollars in thousands, except per unit data)

(Unaudited)

 

     Twelve Months Ended
December 31,
       
     2011     2010     YoY% Change  

Video

   $ 515,980      $ 518,142        (0.4 )% 

High-speed data

     238,610        214,103        11.4

Phone

     70,195        64,392        9.0

Advertising

     49,975        51,024        (2.1 )% 
  

 

 

   

 

 

   

 

 

 

Total revenues

   $ 874,760      $ 847,661        3.2

Service costs

     (351,922     (354,011     (0.6 )% 

SG&A expenses

     (173,855     (168,938     2.9

Management fees

     (15,452     (15,775     (2.0 )% 
  

 

 

   

 

 

   

 

 

 

OIBDA (a)

   $ 333,531      $ 308,937        8.0

Cash interest expense (a)

     (107,164     (108,114     (0.9 )% 

Capital expenditures (b)

     (166,552     (141,347     17.8

Dividend to preferred members

     (18,000     (18,000     —     
  

 

 

   

 

 

   

 

 

 

Free cash flow (a)

   $ 41,815      $ 41,476        0.8
  

 

 

   

 

 

   

 

 

 

OIBDA margin (c)

     38.1     36.4  

TABLE 3

Mediacom Broadband LLC

Reconciliation of Non-GAAP Measures

(Dollars in thousands)

(Unaudited)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2011     2010     2011     2010  

Free cash flow

   $ 2,606      $ 12,182      $ 41,815      $ 41,476   

Capital expenditures

     52,770        34,249        166,552        141,347   

Dividend to preferred members

     4,500        4,500        18,000        18,000   

Other expense, net

     (495     (633     (2,136     (2,230

Share-based compensation

     —          339        —          1,305   

Changes in assets and liabilities, net

     2,654        4,618        52,769        56,133   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows provided by operating activities

   $ 62,035      $ 55,255      $ 277,000      $ 256,031   
  

 

 

   

 

 

   

 

 

   

 

 

 

OIBDA

   $ 86,740      $ 77,495      $ 333,531      $ 308,937   

Depreciation and amortization

     (37,145     (34,516     (143,999     (131,733
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

   $ 49,595      $ 42,979      $ 189,532      $ 177,204   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash interest expense

   $ 26,864      $ 26,564      $ 107,164      $ 108,114   

Amortization of deferred financing costs

     1,096        1,391        4,345        3,992   
  

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense, net

   $ 27,960      $ 27,955      $ 111,509      $ 112,106   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

* See Tables 3 and 7.

 

Page 3 of 7


TABLE 4*

Mediacom LLC

Selected Financial and Operating Data

(Dollars in thousands, except per unit data)

(Unaudited)

 

     Three Months Ended
December 31,
       
     2011     2010     YoY% Change  

Video

   $ 96,723      $ 99,703        (3.0 )% 

High-speed data

     50,764        45,055        12.7

Phone

     16,214        14,723        10.1

Advertising

     4,207        4,642        (9.4 )% 
  

 

 

   

 

 

   

 

 

 

Total revenues

   $ 167,908      $ 164,123        2.3

Service costs

     (69,289     (73,166     (5.3 )% 

SG&A expenses

     (28,505     (27,734     2.8

Management fees

     (3,323     (3,015     10.2
  

 

 

   

 

 

   

 

 

 

OIBDA (a)

   $ 66,791      $ 60,208        10.9

Investment income from affiliate

     4,500        4,500        —     
  

 

 

   

 

 

   

 

 

 

Adjusted OIBDA (a)

   $ 71,291      $ 64,708        10.2

Cash interest expense (a)

     (23,103     (21,857     5.7

Capital expenditures (b)

     (30,247     (24,078     25.6
  

 

 

   

 

 

   

 

 

 

Free cash flow (a)

   $ 17,941      $ 18,773        (4.4 )% 
  

 

 

   

 

 

   

 

 

 

Adjusted OIBDA margin (j)

     42.5     39.4  

 

     December 31, 2011      December 31, 2010  

Bank credit facility

   $ 1,233,000       $ 1,169,000   

9 1/8% senior notes due 2019

     350,000         350,000   
  

 

 

    

 

 

 

Total debt

   $ 1,583,000       $ 1,519,000   
  

 

 

    

 

 

 

Unused revolving credit commitments

   $ 139,800       $ 303,800   

Total leverage ratio (d)

     5.55x         5.87x   

Interest coverage ratio (e)

     3.09x         2.96x   

 

     December 31, 2011      December 31, 2010  

Basic subscribers

     473,000         530,000   

High-speed data customers

     383,000         379,000   

Phone customers

     159,000         157,000   
  

 

 

    

 

 

 

Primary service units (“PSUs”)

     1,015,000         1,066,000   

Digital customers

     303,000         322,000   
  

 

 

    

 

 

 

Revenue generating units

     1,318,000         1,388,000   
  

 

 

    

 

 

 

Customer relationships (f)

     569,000         594,000   

Average total monthly revenue per:

     

Basic subscriber (g)

   $ 116.48       $ 102.74   

PSU (h)

   $ 54.74       $ 51.42   

Customer relationship (i)

   $ 97.76       $ 91.95   

 

* See Tables 6 and 7.

 

Page 4 of 7


TABLE 5*

Mediacom LLC

Selected Financial Data

(Dollars in thousands, except per unit data)

(Unaudited)

 

     Twelve Months Ended
December 31,
       
     2011     2010     YoY% Change  

Video

   $ 400,377      $ 399,905        0.1

High-speed data

     196,206        176,134        11.4

Phone

     63,491        58,320        8.9

Advertising

     15,482        16,967        (8.8 )% 
  

 

 

   

 

 

   

 

 

 

Total revenues

   $ 675,556      $ 651,326        3.7

Service costs

     (293,940     (291,946     0.7

SG&A expenses

     (114,300     (109,752     4.1

Management fees

     (11,896     (12,123     (1.9 )% 
  

 

 

   

 

 

   

 

 

 

OIBDA (a)

   $ 255,420      $ 237,505        7.5

Investment income from affiliate

     18,000        18,000        —     
  

 

 

   

 

 

   

 

 

 

Adjusted OIBDA (a)

   $ 273,420      $ 255,505        7.0

Cash interest expense (a)

     (93,778     (88,432     6.0

Capital expenditures (b)

     (102,688     (98,301     4.5
  

 

 

   

 

 

   

 

 

 

Free cash flow (a)

   $ 76,954      $ 68,772        11.9
  

 

 

   

 

 

   

 

 

 

Adjusted OIBDA margin (j)

     40.5     39.2  

TABLE 6

Mediacom LLC

Reconciliation of Non-GAAP Measures

(Dollars in thousands)

(Unaudited)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2011     2010     2011     2010  

Free cash flow

   $ 17,941      $ 18,773      $ 76,954      $ 68,772   

Capital expenditures

     30,247        24,078        102,688        98,301   

Other expense, net

     (316     (641     (1,913     (2,777

Share-based compensation

     —          156        —          585   

Changes in assets and liabilities, net

     3,788        (82     (11,088     (66,481
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows provided by operating activities

   $ 51,660      $ 42,284      $ 166,641      $ 98,400   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted OIBDA

   $ 71,291      $ 64,708      $ 273,420      $ 255,505   

Investment income from affiliate

     (4,500     (4,500     (18,000     (18,000
  

 

 

   

 

 

   

 

 

   

 

 

 

OIBDA

   $ 66,791      $ 60,208      $ 255,420      $ 237,505   

Depreciation and amortization

     (29,138     (27,601     (117,352     (109,509
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

   $ 37,653      $ 32,607      $ 138,068      $ 127,996   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash interest expense

   $ 23,103      $ 21,857      $ 93,778      $ 88,432   

Amortization of deferred financing costs

     951        994        3,903        3,392   
  

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense, net

   $ 24,054      $ 22,851      $ 97,681      $ 91,824   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

* See Tables 6 and 7.

 

Page 5 of 7


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. We define cash interest expense as interest expense, net, less amortization of deferred financing costs. For Mediacom Broadband LLC, we define free cash flow as 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. OIBDA, Adjusted OIBDA, cash interest expense and free cash flow have inherent limitations as discussed below.

OIBDA and Adjusted OIBDA are some of the primary measures used by management to evaluate our performance and to forecast future results. We believe OIBDA and Adjusted OIBDA are useful for investors because it enables them to assess our performance in a manner similar to the methods used by management, and provides a measure that can be used to analyze value and compare the companies in the cable industry. A limitation of OIBDA and Adjusted OIBDA, however, is that they exclude depreciation and amortization, which represents the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in our business. Management utilizes a separate process to budget, measure and evaluate capital expenditures. 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, as defined under our debt arrangements.

Free cash flow is used by management to evaluate our ability to repay debt, and to facilitate the growth of our business with internally generated funds. A limitation of free cash flow, however, is that it may be affected by the timing of our capital spending. We believe free cash flow is useful for investors for the same reasons and provides measures that can be used to analyze value and compare companies in the cable television industry, although our measure of free cash flow may not be directly comparable to similar measures reported by other companies.

OIBDA, Adjusted OIBDA and free cash flow should not be regarded as alternatives to operating income or net income as indicators of operating performance, or to the statement of cash flows as measures of liquidity, nor should they be considered in isolation or as substitutes for financial measures prepared in accordance with GAAP. We believe that operating income is the most directly comparable GAAP financial measure to OIBDA and Adjusted OIBDA, and that net cash flows provided by operating activities is the most directly comparable GAAP financial measure to free cash flow.

Cash interest expense excludes the amortization of financing costs which were paid upon the financing of the relevant debt. We believe cash interest expense is useful for investors because it enables them to assess our cost of debt for the current period without including the amortization of financing costs that were previously paid. We believe interest expense, net, is the most directly comparable GAAP financial measure to cash interest expense.

For reconciliations of OIBDA, Adjusted OIBDA, cash interest expense and free cash flow to their most directly comparable GAAP financial measures, see Tables 3 and 6.

Cautionary Statement Regarding Forward-Looking Statements

In this press release, we state our beliefs of future events and of our future financial performance. These forward-looking statements are not guarantees of future performance or results, and are subject to risks and uncertainties that could cause actual results to differ materially from historical results or those we anticipate as a result of various factors, many of which are beyond our control. Factors that may cause such differences to occur include, but are not limited to: increased levels of competition; greater than anticipated programming and other service costs; our ability to generate sufficient cash flow to meet our debt service obligations; and other risks and uncertainties discussed in the Annual Reports on Form 10-K for the year ended December 31, 2010 for each of Mediacom Broadband LLC and Mediacom LLC. We disclaim any obligation to update any forward-looking statements contained herein, except as required by applicable federal securities laws.

 

Page 6 of 7


NOTES:

 

(a)

See above for information about our use of Non-GAAP financial measures.

(b)

Capital expenditures for Mediacom Broadband LLC exclude $2.2 million and $9.1 million of non-cash transactions representing capital expenditures which were accrued during the three months and twelve months ended December 31, 2011, respectively. Capital expenditures for Mediacom LLC exclude $0.9 million and $3.0 million of non-cash transactions representing capital expenditures which were accrued during the three months and twelve month ended December 31, 2011, respectively.

(c)

Represents OIBDA as a percentage of total revenues.

(d)

For Mediacom Broadband LLC, represents total debt at quarter end divided by annualized OIBDA for the quarter. For Mediacom LLC, represents total debt at quarter end divided by annualized Adjusted OIBDA for the quarter.

(e)

For Mediacom Broadband LLC, represents OIBDA divided by cash interest expense for the quarter. For Mediacom LLC, represents Adjusted OIBDA divided by cash interest expense for the quarter.

(f)

Represents the total number of customers that receive at least one level of service, without regard to which service(s) customers purchase.

(g)

Represents average total monthly revenues for the quarter divided by average basic subscribers for such quarter.

(h)

Represents average total monthly revenues for the quarter divided by average PSUs for such quarter.

(i)

Represents average total monthly revenues for the quarter divided by average customer relationships for such quarter.

(j)

Represents Adjusted OIBDA as a percentage of total revenues.

 

Page 7 of 7