Strong Fiber Growth; Increased Fiber
Migrations and Fiber Penetration Best Mobile Performance in
Four Years Continued Progress in Enhancing and Expanding Our
Networks Unveiled Transformation Plan to Unlock Key Free
Cash Flow Opportunities
Altice USA (NYSE: ATUS) today reports results for the third
quarter ended September 30, 2024.
Dennis Mathew, Altice USA Chairman and Chief Executive
Officer, said: "Over the last two years, we’ve made significant
progress in strengthening our networks, stabilizing our operations,
and setting a strong foundation for long-term growth. These efforts
have resulted in positive momentum across our fiber and mobile
product lines in the third quarter. Our focus remains on
transforming our business for future growth with significant
revenue opportunities, including expanding our advanced product
portfolio, increasing penetration of our best-in-class fiber
network, and driving operational efficiencies with a sustainable
capital structure. Executing on these goals will drive free cash
flow, increase shareholder value and support sustainable long-term
growth over time.”
Third Quarter 2024
Financial Overview
- Total revenue of $2.2 billion (-3.9% year over
year)
- Residential revenue of $1.7 billion (-5.6% year over
year)
- Residential revenue per user (“ARPU”)(1) of $135.77
(-1.9% year over year)
- Business Services revenue of $366.4 million (-0.1% year
over year)
- News and Advertising revenue of $117.7 million (+9.5%
year over year)
- Net income (loss) attributable to stockholders of
($43.0) million ($(0.09)/share on a diluted basis) in Q3 2024 and
$66.8 million ($0.15/share on a diluted basis) in Q3 2023
- Net cash flows from operating activities of $436.0 million
in Q3 2024 and $474.5 million in Q3 2023
- Adjusted EBITDA(2) of $862.0 million (-5.8% year over
year), and margin of 38.7%
- Cash capital expenditures of $359.2 million (+1.7% year
over year) and Capital intensity(3) of 16.1% (13.1% excluding fiber
and new builds)
- We remained disciplined on capital spend over the course of the
year and now anticipate cash capital expenditures of $1.5 billion
in full year 2024, representing a $200 million dollar reduction
compared to full year 2023 cash capital expenditures
- Free Cash Flow(2) of $76.9 million, including $115
million of higher cash interest in Q3 2024 year over year
Third Quarter 2024 Key Operational
Highlights
- Strong Fiber Net Adds Reaching 482k Fiber Customers, a +63%
Increase in Total Fiber Customers Compared to Q3 2023
- Fiber customer growth continued in Q3 2024 with +47k fiber net
additions, of which 73% were driven by migrations of existing
customers
- Fiber network penetration reached 16.6% at the end of Q3 2024,
up from 10.8% at the end of Q3 2023
- Mobile Line Net Adds of +36k in Q3 2024, Representing the
Highest Mobile Line Net Adds in Four Years; Reaching 420k Lines
- Optimum Mobile line net additions of +36k in Q3 2024, compared
to +24k in Q3 2023
- 5.2% of broadband base converged with mobile(4) at the end of
Q3 2024, up from 3.2% at the end of Q3 2023
- Strengthening Our Go-To-Market Strategy to Leverage
Convergence Opportunities
- Simplified product offers and base management strategy to drive
convergence and provide customers more value
- Evolved our video model with the introduction of new TV
packages -- Entertainment TV, Extra TV, & Everything TV --
which drive higher margins via mutually beneficial programming
agreements, offer consumers more content flexibility and are
available alongside a customer's favorite streaming services via
Optimum Stream
- Total Broadband Primary Service Units (PSUs) Net Losses of
-50k(5)
- Broadband net losses were -50k(5) in Q3 2024, compared to -31k
in Q3 2023
- Performance was driven by continued low levels of switching
activity, competitive pressures across our footprint, and muted
trends in the income-constrained segment, including elevated
non-pay disconnects from prior ACP subscribers
- Continued Progress in Delivering on Multi-Year Network
Strategy; Reaching Nearly 3 million Fiber Passings
- Fiber passings additions of +52k in Q3 2024, reaching 2.9
million fiber passings, and targeting approximately 3 million fiber
passings by year-end 2024
- Total passings additions of +38k in Q3 2024, reaching 9.8
million total passings, and targeting over 175k additional passings
in full year 2024
- Capital intensity(3) of 16.1% in Q3 2024 compared to 15.2% in
Q3 2023
- Service call rate(6) improved by 11% year over year in Q3
2024
- Service visit repeat rate(7) improved by 28% year over year in
Q3 2024
- Achieved approximately 99% node health across our entire
footprint in Q3 2024 through enhanced node monitoring and proactive
maintenance
- Deploying new digital modulation technologies on our DOCSIS 3.1
HFC network to improve broadband performance with over 3 million
customers expected to benefit from better speed attainability and
reliability this year
Opportunities to Improve Free Cash
Flow(2) Over Time
- Revenue Opportunities
- Improve broadband subscriber trends
- Reach 1 million+ mobile lines by year-end 2027
- Launch additional high margin value-added services
- Expand B2B product portfolio and scalable solutions
- Fiber Penetration
- Maximize asset value and competitive positioning
- Accelerate growth of fiber base with plans to achieve 1
million+ fiber subscribers by year-end 2026
- Deliver 30%+ fiber penetration year-end 2026
- Operational Efficiency
- Achieve gross margin of ~70% by year-end 2026
- Improve other operating expenses(8) by 4-6% by year-end
2026
- Return normalized Adjusted EBITDA(2) margins to ~40%
- Sustainable Capital Structure
- Sufficient liquidity to support long-term operational
roadmap
- Deliver annual capex under $1.3bn in full year 2025
- Maintain positive annual Free Cash Flow(2)
Balance Sheet Review as of September
30, 2024
- Net debt(9) for CSC Holdings, LLC Restricted Group was
$23,180 million at the end of Q3 2024, representing net leverage of
7.2x L2QA(10)
- The weighted average cost of debt for CSC Holdings, LLC
Restricted Group was 6.9% and the weighted average life of debt was
4.4 years
- Net debt(9) for Cablevision Lightpath LLC was $1,410 million
at the end of Q3 2024, representing net leverage of 5.7x
L2QA(10)
- The weighted average cost of debt for Cablevision Lightpath LLC
was 5.4% and the weighted average life of debt was 3.3 years
- Consolidated net debt(9) for Altice USA was $24,564 million,
representing consolidated net leverage of 7.1x L2QA(10)
- The weighted average cost of debt for consolidated Altice USA
was 6.8% and the weighted average life of debt was 4.3 years
Shares Outstanding
- As of September 30, 2024, Altice USA had 461,189,373
combined shares of Class A and Class B common stock
outstanding
Customer Metrics (in thousands,
except per customer amounts)
Q1-23
Q2-23
Q3-23
Q4-23
FY-23
Q1-24
Q2-24
Q3-24
Total Passings(11)
9,512.2
9,578.6
9,609.0
9,628.7
9,628.7
9,679.3
9,746.4
9,784.7
Total Passings additions
48.4
66.4
30.4
19.7
164.9
50.6
67.2
38.3
Total Customer
Relationships(5)(12)(13)
Residential
4,472.4
4,429.5
4,391.5
4,363.1
4,363.1
4,326.8
4,272.3
4,217.5
SMB
380.9
381.0
381.1
380.3
380.3
379.7
379.7
378.4
Total Unique Customer Relationships
4,853.3
4,810.5
4,772.6
4,743.5
4,743.5
4,706.5
4,652.0
4,595.9
Residential net additions (losses)
(26.1)
(42.9)
(38.0)
(28.4)
(135.4)
(36.3)
(54.5)
(54.8)
Business Services net additions
(losses)
(0.3)
0.1
0.1
(0.8)
(0.9)
(0.7)
0.0
(1.2)
Total customer net additions (losses)
(26.4)
(42.7)
(37.9)
(29.2)
(136.2)
(37.0)
(54.5)
(56.1)
Residential PSUs(5)
Broadband
4,263.7
4,227.0
4,196.0
4,169.0
4,169.0
4,139.7
4,088.7
4,039.5
Video
2,380.5
2,312.2
2,234.6
2,172.4
2,172.4
2,094.7
2,021.9
1,944.8
Telephony
1,703.5
1,640.8
1,572.7
1,515.3
1,515.3
1,452.1
1,391.1
1,326.0
Broadband net additions (losses)
(19.2)
(36.8)
(31.0)
(27.0)
(113.9)
(29.4)
(51.0)
(49.2)
Video net additions (losses)
(58.6)
(68.3)
(77.6)
(62.2)
(266.7)
(77.7)
(72.8)
(77.0)
Telephony net additions (losses)
(60.6)
(62.7)
(68.1)
(57.4)
(248.9)
(63.1)
(61.1)
(65.1)
Residential ARPU ($)(1)
135.32
137.44
138.42
136.01
136.80
135.67
135.95
135.77
SMB PSUs
Broadband
349.0
349.1
349.4
348.9
348.9
348.5
348.8
347.7
Video
95.3
93.7
91.9
89.6
89.6
87.3
85.4
83.3
Telephony
210.0
208.0
205.9
203.2
203.2
200.7
199.2
196.8
Broadband net additions (losses)
(0.1)
0.1
0.3
(0.5)
(0.2)
(0.4)
0.3
(1.1)
Video net additions (losses)
(2.0)
(1.6)
(1.8)
(2.3)
(7.7)
(2.3)
(1.9)
(2.1)
Telephony net additions (losses)
(2.3)
(2.0)
(2.1)
(2.6)
(9.1)
(2.6)
(1.4)
(2.4)
Total Mobile Lines(14)
Mobile ending lines
247.9
264.2
288.2
322.2
322.2
351.6
384.5
420.1
Mobile ending lines excluding free
service
223.3
257.9
288.1
322.2
322.2
351.6
384.5
420.1
Mobile line net additions
7.6
16.3
24.1
34.0
82.0
29.3
33.0
35.5
Mobile line net additions ex-free
service
14.6
34.6
30.3
34.1
113.5
29.3
33.0
35.5
Fiber (“FTTH”) Customer Metrics (in
thousands)
Q1-23
Q2-23
Q3-23
Q4-23
FY-23
Q1-24
Q2-24
Q3-24
FTTH Total Passings(15)
2,373.0
2,659.5
2,720.2
2,735.2
2,735.2
2,780.0
2,842.0
2,893.7
FTTH Total Passing additions
214.2
286.6
60.7
14.9
576.4
44.8
62.0
51.7
FTTH Residential customer
relationships
207.2
245.9
289.3
333.8
333.8
385.2
422.7
468.5
FTTH SMB customer relationships
2.7
3.9
5.7
7.6
7.6
9.4
11.4
13.1
FTTH Total Customer
Relationships(16)
209.9
249.7
295.1
341.4
341.4
394.6
434.1
481.6
FTTH Residential net additions
37.2
38.6
43.4
44.5
163.8
51.4
37.5
45.7
FTTH SMB net additions
0.9
1.2
1.9
1.8
5.8
1.9
2.0
1.7
FTTH Total Customer Net
Additions
38.1
39.8
45.3
46.3
169.7
53.2
39.5
47.4
Altice USA Consolidated Operating
Results ($ and shares in thousands, except per share data)
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Revenue:
Broadband
$
913,417
$
961,751
$
2,745,400
$
2,884,661
Video
715,117
775,818
2,210,156
2,321,557
Telephony
69,877
73,640
212,545
227,390
Mobile
30,563
20,320
82,935
53,993
Residential revenue
1,728,974
1,831,529
5,251,036
5,487,601
Business services and wholesale
366,355
366,852
1,100,506
1,095,197
News and Advertising
117,682
107,484
328,687
319,686
Other
14,689
11,335
39,161
32,968
Total revenue
2,227,700
2,317,200
6,719,390
6,935,452
Operating expenses:
Programming and other direct costs
711,330
750,538
2,174,677
2,284,537
Other operating expenses
674,564
667,278
2,019,356
1,974,651
Restructuring, impairments and other
operating items
10,871
4,453
15,525
39,303
Depreciation and amortization (including
impairments)
386,342
402,366
1,170,503
1,237,283
Operating income
444,593
492,565
1,339,329
1,399,678
Other income (expense):
Interest expense, net
(448,168)
(420,216)
(1,328,264)
(1,216,203)
Gain on investments and sale of affiliate
interests, net
—
—
292
192,010
Loss on derivative contracts, net
—
—
—
(166,489)
Gain (loss) on interest rate swap
contracts, net
(45,657)
31,972
10,220
78,708
Gain (loss) on extinguishment of debt and
write-off of deferred financing costs
—
—
(7,035)
4,393
Other income (loss), net
(1,495)
(1,470)
(4,526)
7,165
Income (loss) before income
taxes
(50,727)
102,851
10,016
299,262
Income tax benefit (expense)
9,892
(27,336)
(42,045)
(106,433)
Net income (loss)
(40,835)
75,515
(32,029)
192,829
Net income attributable to noncontrolling
interests
(2,135)
(8,676)
(16,773)
(21,825)
Net income (loss) attributable to
Altice USA stockholders
$
(42,970)
$
66,839
$
(48,802)
$
171,004
Basic net income (loss) per
share
$
(0.09)
$
0.15
$
(0.11)
$
0.38
Diluted net income (loss) per
share
$
(0.09)
$
0.15
$
(0.11)
$
0.38
Basic weighted average common
shares
460,626
454,730
459,335
454,702
Diluted weighted average common
shares
460,626
455,076
459,335
455,118
Altice USA Consolidated Statements of
Cash Flows ($ in thousands) (unaudited)
Nine Months Ended September
30,
2024
2023
Cash flows from operating activities:
Net income (loss)
$
(32,029)
$
192,829
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization (including
impairments)
1,170,503
1,237,283
Gain on investments and sale of affiliate
interests, net
(292)
(192,010)
Loss on derivative contracts, net
—
166,489
Loss (gain) on extinguishment of debt and
write-off of deferred financing costs
7,035
(4,393)
Amortization of deferred financing costs
and discounts (premiums) on indebtedness
15,470
26,334
Share-based compensation
50,351
29,368
Deferred income taxes
(7,129)
(187,295)
Decrease in right-of-use assets
33,729
34,633
Allowance for credit losses
68,433
62,148
Other
5,469
9,406
Change in operating assets and
liabilities, net of effects of acquisitions and dispositions:
Accounts receivable, trade
(24,721)
(29,403)
Prepaid expenses and other assets
(127,820)
(76,862)
Amounts due from and due to affiliates
(45,700)
56,193
Accounts payable and accrued
liabilities
(89,539)
(2,374)
Deferred revenue
8,589
9,531
Interest rate swap contracts
110,130
(1,692)
Net cash provided by operating
activities
1,142,479
1,330,185
Cash flows from investing activities:
Capital expenditures
(1,042,975)
(1,409,561)
Payments for acquisitions, net of cash
acquired
(5,748)
—
Other, net
2,743
(1,677)
Net cash used in investing activities
(1,045,980)
(1,411,238)
Cash flows from financing activities:
Proceeds from long-term debt
3,875,000
2,350,000
Repayment of debt
(3,891,175)
(2,215,112)
Proceeds from derivative contracts in
connection with the settlement of collateralized debt
—
38,902
Principal payments on finance lease
obligations
(99,426)
(112,795)
Payment related to acquisition of a
noncontrolling interest
(7,261)
(7,035)
Additions to deferred financing costs
(18,936)
—
Other, net
(6,345)
(8,521)
Net cash provided by (used in) financing
activities
(148,143)
45,439
Net decrease in cash and cash
equivalents
(51,644)
(35,614)
Effect of exchange rate changes on cash
and cash equivalents
(403)
(1,482)
Net decrease in cash and cash
equivalents
(52,047)
(37,096)
Cash, cash equivalents and restricted cash
at beginning of year
302,338
305,751
Cash, cash equivalents and restricted cash
at end of period
$
250,291
$
268,655
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, gain (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, impairments and other operating items (such as
significant legal settlements and contractual payments for
terminated employees). We define Adjusted EBITDA margin as Adjusted
EBITDA divided by total revenue.
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 our operating performance. 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 our 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 U.S. generally accepted accounting
principles (“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 Free Cash Flow (defined as net cash flows from
operating activities less cash capital expenditures) as a liquidity
measure. We believe this measure is useful to investors in
evaluating our ability to service our debt and make continuing
investments with internally generated funds, although it may not be
directly comparable to similar measures reported by other
companies.
Reconciliation of Net Income (Loss) to
Adjusted EBITDA ($ in thousands) (unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Net income (loss)
$
(40,835)
$
75,515
$
(32,029)
$
192,829
Income tax expense (benefit)
(9,892)
27,336
42,045
106,433
Other loss (income), net
1,495
1,470
4,526
(7,165)
Loss (gain) on interest rate swap
contracts, net
45,657
(31,972)
(10,220)
(78,708)
Loss on derivative contracts, net
—
—
—
166,489
Gain on investments and sale of affiliate
interests, net
—
—
(292)
(192,010)
Loss (gain) on extinguishment of debt and
write-off of deferred financing costs
—
—
7,035
(4,393)
Interest expense, net
448,168
420,216
1,328,264
1,216,203
Depreciation and amortization
386,342
402,366
1,170,503
1,237,283
Restructuring, impairments and other
operating items
10,871
4,453
15,525
39,303
Share-based compensation
20,170
16,115
50,351
29,368
Adjusted EBITDA
861,976
915,499
2,575,708
2,705,632
Adjusted EBITDA margin
38.7%
39.5%
38.3%
39.0%
Reconciliation of net cash flow from
operating activities to Free Cash Flow (Deficit) (in thousands)
(unaudited):
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Net cash flows from operating
activities
$
436,024
$
474,498
$
1,142,479
$
1,330,185
Less: Capital expenditures (cash)
359,159
353,219
1,042,975
1,409,561
Free Cash Flow (Deficit)
$
76,865
$
121,279
$
99,504
$
(79,376)
Consolidated Net Debt as of September
30, 2024 ($ in millions)
CSC Holdings, LLC Restricted
Group
Principal
Amount
Coupon / Margin
Maturity
Drawn RCF
$1,700
SOFR+2.350%
2027
Term Loan B-5
2,865
L+2.500%(17)
2027
Term Loan B-6
1,972
SOFR+4.500%
2028(18)
Guaranteed Notes
1,310
5.500%
2027
Guaranteed Notes
1,000
5.375%
2028
Guaranteed Notes
1,000
11.250%
2028
Guaranteed Notes
2,050
11.750%
2029
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
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
23,372
CSC Holdings, LLC Restricted Group
Cash
(192)
CSC Holdings, LLC Restricted Group Net
Debt
$23,180
CSC Holdings, LLC Restricted Group
Undrawn RCF
$617
Cablevision Lightpath LLC
Principal Amount
Coupon / Margin
Maturity
Drawn RCF(19)
$—
SOFR+3.360%
Term Loan
578
SOFR+3.360%
2027
Senior Secured Notes
450
3.875%
2027
Senior Notes
415
5.625%
2028
Cablevision Lightpath Gross
Debt
1,443
Cablevision Lightpath Cash
(32)
Cablevision Lightpath Net Debt
$1,410
Cablevision Lightpath Undrawn
RCF
$115
Net Leverage Schedules as of September
30, 2024 ($ in millions)
CSC Holdings Restricted
Group(20)
Cablevision Lightpath
LLC
CSC Holdings
Consolidated(21)
Altice USA
Consolidated
Gross Debt Consolidated(22)
$23,372
$1,443
$24,814
$24,814
Cash
(192)
(32)
(240)
(250)
Net Debt Consolidated(9)
$23,180
$1,410
$24,574
$24,564
LTM EBITDA
$3,231
$248
$3,478
$3,479
L2QA EBITDA
$3,210
$248
$3,457
$3,458
Net Leverage (LTM)
7.2x
5.7x
7.1x
7.1x
Net Leverage (L2QA)(10)
7.2x
5.7x
7.1x
7.1x
WACD (%)
6.9%
5.4%
6.9%
6.8%
Reconciliation to Financial Reported
Debt
Altice USA
Consolidated
Total Debenture and Loans from
Financial Institutions (Carrying Amount)
$24,766
Unamortized financing costs and discounts,
net of unamortized premiums
48
Gross Debt Consolidated(22)
24,814
Finance leases and other notes
286
Total Debt
25,100
Cash
(250)
Net Debt
$24,850
(1)
ARPU is calculated by dividing the average
monthly revenue for the respective period derived from the sale of
broadband, video, telephony and mobile services to residential
customers by the average number of total residential customers for
the same period and excludes mobile-only customer
relationships.
(2)
See “Reconciliation of Non-GAAP Financial
Measures” beginning on page 7 of this earnings release.
(3)
Capital intensity refers to total cash
capital expenditures as a percentage of total revenue.
(4)
Broadband base converged with mobile is
expressed as the percentage of customers subscribing to both
broadband and mobile services divided by the total broadband
customer base. Excludes mobile only customers.
(5)
Customer metrics as of September 30, 2024
reflect adjustments to align to the Company’s bulk residential
subscriber count policy, resulting in an increase of 4.7 thousand
residential customer relationships, 3.8 thousand broadband
customers and 5.2 thousand video customers. The impact of these
adjustments to customer relationships, broadband and video customer
net additions was not material for any period presented and as such
prior period metrics were not restated.
(6)
Service call rate represents technical,
care and support calls per customer.
(7)
Service visit repeat rate represents the
number of repeat visits or truck rolls per customer within 30
days.
(8)
Other Operating Expenses exclude
programming and direct costs, depreciation and amortization,
share-based compensation, restructuring, impairments and other
operating items.
(9)
Net debt, defined as the principal amount
of debt less cash, and excluding finance leases and other
notes.
(10)
L2QA leverage is calculated as quarter end
net leverage divided by the last two quarters of Adjusted EBITDA
annualized.
(11)
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.
(12)
Total Unique Customer Relationships
represent the number of households/businesses that receive at least
one of our 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 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.
(13)
Total Customer Relationship metrics do not
include mobile-only customers.
(14)
Mobile ending lines include lines
receiving free service. Mobile ending lines excluding free service
exclude additions relating to mobile lines receiving free service
from all periods presented, and includes net additions from when
customers previously on free service start making payments.
(15)
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.
(16)
Represents number of households/businesses
that receive at least one of our 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 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.
(17)
The Incremental Term Loan B-5 bears
interest at a rate equal to Synthetic USD London Interbank Offered
Rate ("LIBOR") plus 2.50% per annum through March 31, 2025.
Thereafter, we will be required to pay interest at a rate equal to
the alternate base rate (“ABR”), plus the applicable margin, where
the ABR is the greater of (x) prime rate or (y) the federal funds
effective rate plus 50 basis points and the applicable margin for
any ABR loan is 1.50% per annum.
(18)
The Incremental Term Loan B-6 is due on
the earlier of (i) January 15, 2028 and (ii) April 15, 2027 if, as
of such date, any Incremental Term Loan B-5 borrowings are still
outstanding, unless the Incremental Term Loan B-5 maturity date has
been extended to a date falling after January 15, 2028.
(19)
Under the extension amendment to the
Lightpath credit agreement entered into in February 2024, $95
million of revolving credit commitments, if drawn, would be due on
June 15, 2027 and $20 million of revolving credit commitments, if
drawn, would be due on November 30, 2025.
(20)
CSC Holdings, LLC Restricted Group
excludes the unrestricted subsidiaries, primarily Cablevision
Lightpath LLC and NY Interconnect, LLC.
(21)
CSC Holdings Consolidated includes the CSC
Holdings, LLC Restricted Group and the unrestricted
subsidiaries.
(22)
Principal amount of debt excluding finance
leases and other notes.
Certain numerical information is presented on a rounded basis.
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 4.6 million residential and
business customers across 21 states through its Optimum brand. We
operate Optimum Media, an advanced advertising and data business,
which provides audience-based, multiscreen advertising solutions to
local, regional and national businesses and advertising clients. We
also offer hyper-local, national and international news through our
News 12 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, our
revenue streams, results of operations and liquidity, including
Free Cash Flow; our strategy, objectives, prospects, trends,
service and operational improvements, capital expenditure plans,
broadband, fiber, video and mobile growth, product offerings and
passings; our ability to achieve operational performance
improvements; our ability to achieve near and longer term revenue,
penetration, operational efficiency and capital structure
opportunities (including mobile lines, fiber subscribers, fiber
penetration, gross margin, operating expenses, EBITDA margins,
annual capital expenditures, and annual Free Cash Flow); 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 without
limitation the terms “anticipate”, “believe”, “could”, “estimate”,
“expect”, “forecast”, “intend”, “may”, “opportunity”, “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, 2023 and subsequent Quarterly
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/20241104860652/en/
Investor Relations John Hsu: +1 917 405 2097 /
john.hsu@alticeusa.com Sarah Freedman: +1 631 660 8714 /
sarah.freedman@alticeusa.com
Media Relations Lisa Anselmo: +1 516 279 9461 /
lisa.anselmo@alticeusa.com Janet Meahan: +1 516 519 2353 /
janet.meahan@alticeusa.com
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