Improved Financial Trends Across Revenue,
Adjusted EBITDA, and Customer ARPU in 2H-23
Acceleration in Fiber Customer Net Adds and
Mobile Line Net Adds
Positive Trends in Customer Experience,
Network, and Operations
Altice USA (NYSE: ATUS) today reports results for the fourth
quarter and full year ended December 31, 2023.
Dennis Mathew, Altice USA Chairman and Chief Executive
Officer, said: "2023 marked the beginning of a transformative
journey for Optimum as we drove significant improvements across
every area of our business by acting with operational and financial
discipline. In the second half of 2023 we drove improvements in
year-over-year trends across revenue, adjusted EBITDA and customer
ARPU. We drove capital intensity down throughout the year,
generated positive free cash flow in the full year, and proactively
managed our debt maturity profile. I’m also proud of the notable
achievements across our operations to improve customer experience,
invest in quality networks and expansion to fuel broadband, and
enhance our base management and go-to-market efforts to set the
foundation for growth. We are well positioned as we enter 2024 and
I am confident that we’re on the right path to return to
sustainable long-term customer, revenue and adjusted EBITDA growth
over time.”
Fourth Quarter and Full Year Financial
Overview
- Total Revenue was $2.3 billion Q4-23 (-2.9%YoY), and $9.24
billion FY-23 (-4.3% YoY) Marking improvement in revenue
declines year-over-year compared to -6.0% Q4-22 YoY and -4.4% FY-22
YoY.
- Residential Revenue(1) was $1.79 billion in Q4-23 (-2.8%
YoY), and $7.27 billion in FY-23 (-4.4% YoY). Driven mostly due
to the loss of higher ARPU video customers over the last year.
- Residential revenue per user (ARPU)(2) was $136.01 in Q4-23
and $136.80 in FY-23. ARPU grew +0.1% in Q4-23 YoY or +$0.15,
and was down -1.5% YoY in FY-23. Showing improvement in
year-over-year ARPU compared to -2.1% Q4-22 YoY and -2.2% FY-22
YoY.
- Business Services Revenue was $372.0 million in Q4-23
(+1.0% YoY), and $1.47 billion in FY-23 (-0.5% YoY). This
included Lightpath revenue growth of +9.2% in Q4-23 and +2.1% in
FY-23 YoY, and SMB / Other decline of -1.9% in Q4-23 and -1.4%
FY-23 YoY.
- News and Advertising Revenue was $128.1 million in
Q4-23 (-15.7% YoY) and $447.7 million in FY-23 (-13.9% YoY).
Excluding political advertising revenue, News and Advertising grew
+8.9% in Q4-23 YoY and was down -1.7% FY-23 YoY.
- Net income (loss) attributable to stockholders was ($117.8)
million (($0.26)/share on a diluted basis) in Q4-23 and $53.2
million ($0.12/share on a diluted basis) in FY-23.
- Net cash flows from operating activities were $496.2 million
in Q4-23 and $1,826.4 million in FY-23.
- Adjusted EBITDA(3) was $903.3 million in Q4-23 and $3.61
billion in FY-23 Q4-23 Margin of 39.2%, and declined -1.1% YoY.
FY-23 Margin of 39.1%, and declined -6.7% YoY. Demonstrating
improvement in Adjusted EBITDA declines year-over-year compared to
-15.7% Q4-22 and -12.7% FY-22 YoY.
- Cash capital expenditures of $295.2 million in Q4-23 and
$1.70 billion in FY-23 Q4-23 capital intensity was 12.8% (7.9%
excluding FTTH and new builds) and improved by decline of -45.6%
YoY. FY-23 capital intensity was 18.5% (10.5% excluding FTTH and
new builds) and improved by decline of -10.9% YoY. The Company
expects to continue to invest in key growth initiatives, with
anticipated cash capex of approximately $1.6 billion to $1.7
billion in FY 2024.
- Operating Free Cash Flow(3) was $608.0 million in Q4-23 and
$1.90 billion in FY-23 Q4-23 Margin of 26.4%, and grew +64.3%
YoY. FY-23 Margin of 20.6% and declined -2.5% YoY.
- Free Cash Flow(3) was $201.0 million in Q4-23 and $121.6
million in FY-23 Driven by a step down in cash capital spend in
the back half of the year.
Key Operational Highlights for the
Fourth Quarter and Full Year
- Strong Fiber Net Adds; Reaching 341k Fiber Customers
Fiber customer net additions were +46k in Q4 2023, Optimum's best
quarter for fiber net adds, and added +170k customers in FY 2023.
Fiber customer net adds were driven by both higher fiber gross
additions and increased migrations of existing customers.
Penetration of the fiber network reached 12.5% at the end of FY-23,
up from 8.0% penetration at the end of FY-22.
- Accelerated Optimum Mobile Net Add Growth +34k in Q4-23;
8.2x Growth YoY; Reaching 322k Lines Optimum Mobile saw the
fourth straight quarter of accelerated growth, reaching 7.1%
penetration of the Company's total broadband customer base, up from
5.2% penetration in Q4-22.
- Total Broadband Primary Service Units (PSUs) net losses of
-27k Broadband net losses were -27k in Q4 2023, compared to -9k
in Q4 2022. In Q4-23 Optimum saw additional competitive pressure
during the holiday season in addition to a continued low move
environment. The Optimum strategy positions us well to improve
subscriber trends over time.
- Improved Customer Experience (CX) Leading to Higher
Satisfaction Scores Optimum saw CX improvements year-over-year
across a variety of metrics including:
- +21pts improvement in tNPS(4) Q4-23.
- +68% increase in self-install rate(5) Q4-23.
- ~300k fewer truck rolls(6) FY-23.
- ~1.7 million fewer inbound calls(7) FY-23.
- Continued Progress in Building Best-in-Class Broadband
Network Experiences
- 8 Gig symmetrical speeds launched across Optimum East Fiber
footprint.
- 93% of Optimum West upgraded to DOCSIS 3.1 as of the end of
FY-23.
- Grew total passings +165k, reaching 9.6 million total passings
at the end of FY-23 and continues to see strong momentum in growing
customer penetration, typically reaching approximately 40% within
one year of rollout in new-build areas.
- Grew fiber passings +576k, reaching 2.7 million fiber passings
at the end of FY-23.
Proactive Focus on Debt Maturity
Profile
- In January 2024, CSC Holdings issued $2.050 billion of senior
guaranteed notes due 2029 at an interest rate of 11.750% which will
mature on January 31, 2029. The proceeds from these notes were used
to repay the outstanding balance of Term Loan B and Incremental
Term B-3 loans, as well as pay the fees, costs and expenses
associated with these transactions.
- Also in January 2024, the company notified the holders of the
5.250% senior notes due 2024 with the intent to redeem these notes
in full (in accordance with the terms of the indenture). The
company expects to drawdown $750 million under the revolving credit
facility to repay these notes on February 28, 2024.
Balance Sheet Review as of December 31,
2023
- Net debt for CSC Holdings, LLC Restricted Group was
$23,020 million at the end of Q4 2023(8), representing net leverage
of 6.8x Adjusted EBITDA on a Last Two Quarters Annualized (L2QA)
basis.
- The weighted average cost of debt for CSC Holdings, LLC
Restricted Group was 6.1% as of the end of Q4 2023 and the weighted
average life was 4.7 years.
- Pro forma for January 2024 refinancing activity(9) discussed
above, the weighted average cost of debt for CSC Holdings, LLC
Restricted Group was 6.6% as of the end of Q4 2023 and the weighted
average life was 5.1 years.
- Company aims to return to a leverage target of 4.5x to 5.0x net
debt / Adjusted EBITDA on an L2QA basis for its CSC Holdings, LLC
debt silo over time.
- Net debt for Cablevision Lightpath LLC was $1,421
million at the end of Q4 2023(8), representing net leverage of 5.8x
L2QA.
- The weighted average cost of debt for Cablevision Lightpath LLC
was 5.4% as of the end of Q4 2023 and the weighted average life was
4.1 years.
- Consolidated net debt for Altice USA was $24,422
million(8), representing consolidated net leverage of 6.7x
L2QA.
Shares Outstanding
As of December 31, 2023, the Company had 455,997,406 combined
Class A and Class B shares outstanding.
Customer Metrics
(in thousands, except per customer
amounts)
Q1-22
Q2-22
Q3-22
Q4-22
FY-22
Q1-23
Q2-23
Q3-23
Q4-23
FY-23
Total Passings(10)
9,304.9
9,363.1
9,414.9
9,463.8
9,463.8
9,512.2
9,578.6
9,609.0
9,628.7
9,628.7
Total Passings additions
41.6
58.2
51.8
48.8
200.5
48.4
66.4
30.4
19.7
164.9
Total Customer
Relationships(11)(12)
Residential
4,612.1
4,564.2
4,514.7
4,498.5
4,498.5
4,472.4
4,429.5
4,391.5
4,363.1
4,363.1
SMB
382.9
383.1
382.5
381.2
381.2
380.9
381.0
381.1
380.3
380.3
Total Unique Customer Relationships
4,995.0
4,947.3
4,897.2
4,879.7
4,879.7
4,853.3
4,810.5
4,772.6
4,743.5
4,743.5
Residential net additions (losses)
(20.7)
(47.9)
(49.5)
(16.2)
(134.3)
(26.1)
(42.9)
(38.0)
(28.4)
(135.4)
Business Services net additions
(losses)
1.0
0.2
(0.6)
(1.3)
(0.7)
(0.3)
0.1
0.1
(0.8)
(0.9)
Total customer net additions (losses)
(19.8)
(47.7)
(50.1)
(17.5)
(135.0)
(26.4)
(42.7)
(37.9)
(29.2)
(136.2)
Residential PSUs
Broadband
4,373.2
4,333.6
4,290.6
4,282.9
4,282.9
4,263.7
4,227.0
4,196.0
4,169.0
4,169.0
Video
2,658.7
2,574.2
2,491.8
2,439.0
2,439.0
2,380.5
2,312.2
2,234.6
2,172.4
2,172.4
Telephony
1,951.5
1,886.9
1,818.9
1,764.1
1,764.1
1,703.5
1,640.8
1,572.7
1,515.3
1,515.3
Broadband net additions (losses)
(13.0)
(39.6)
(43.0)
(7.7)
(103.3)
(19.2)
(36.8)
(31.0)
(27.0)
(113.9)
Video net additions (losses)
(73.6)
(84.5)
(82.4)
(52.8)
(293.2)
(58.6)
(68.3)
(77.6)
(62.2)
(266.7)
Telephony net additions (losses)
(53.7)
(64.7)
(68.0)
(54.8)
(241.1)
(60.6)
(62.7)
(68.1)
(57.4)
(248.9)
Residential ARPU ($)(1)(2)
139.00
141.36
139.24
135.86
138.83
135.32
137.44
138.42
136.01
136.80
SMB PSUs
Broadband
350.4
350.7
350.2
349.1
349.1
349.0
349.1
349.4
348.9
348.9
Video
102.6
101.0
99.1
97.3
97.3
95.3
93.7
91.9
89.6
89.6
Telephony
216.8
215.3
214.0
212.3
212.3
210.0
208.0
205.9
203.2
203.2
Broadband net additions (losses)
1.1
0.3
(0.5)
(1.1)
(0.2)
(0.1)
0.1
0.3
(0.5)
(0.2)
Video net additions (losses)
(1.6)
(1.6)
(1.9)
(1.8)
(6.9)
(2.0)
(1.6)
(1.8)
(2.3)
(7.7)
Telephony net additions (losses)
(2.0)
(1.6)
(1.3)
(1.7)
(6.5)
(2.3)
(2.0)
(2.1)
(2.6)
(9.1)
Total Mobile Lines
Mobile ending lines
198.3
231.3
236.1
240.3
240.3
247.9
264.2
288.2
322.2
322.2
Mobile ending lines excluding free
service(13)
190.0
195.5
202.7
208.7
208.7
223.3
257.9
288.1
322.2
322.2
Mobile line net additions
11.9
33.0
4.8
4.1
53.8
7.6
16.3
24.1
34.0
82.0
Mobile line net additions ex-free
service(13)
3.6
5.5
7.2
6.0
22.3
14.6
34.6
30.3
34.1
113.5
Fiber (FTTH) Customer Metrics
(in thousands)
Q1-22
Q2-22
Q3-22
Q4-22
FY-22
Q1-23
Q2-23
Q3-23
Q4-23
FY-23
FTTH Total Passings(14)
1,316.6
1,587.1
1,908.2
2,158.7
2,158.7
2,373.0
2,659.5
2,720.2
2,735.2
2,735.2
FTTH Total Passing additions
145.7
270.4
321.2
250.5
987.8
214.2
286.6
60.7
14.9
576.4
FTTH Residential
80.4
103.7
134.2
170.0
170.0
207.2
245.9
289.3
333.8
333.8
FTTH SMB
0.6
0.7
1.2
1.7
1.7
2.7
3.9
5.7
7.6
7.6
FTTH Total customer
relationships(15)
81.0
104.4
135.3
171.7
171.7
209.9
249.7
295.1
341.4
341.4
FTTH Residential net additions
11.1
23.3
30.5
35.8
100.7
37.2
38.6
43.4
44.5
163.8
FTTH SMB net additions
0.2
0.2
0.4
0.6
1.4
0.9
1.2
1.9
1.8
5.8
FTTH Total customer net
additions
11.3
23.5
30.9
36.4
102.1
38.1
39.8
45.3
46.3
169.7
Altice USA Consolidated Operating
Results
(in thousands, except per share data)
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Revenue:
(unaudited)
Broadband
$
939,811
$
960,628
$
3,824,472
$
3,930,667
Video
750,454
781,869
3,072,011
3,281,306
Telephony
72,808
79,454
300,198
332,406
Mobile(1)
23,019
14,811
77,012
61,832
Residential revenue(1)
1,786,092
1,836,762
7,273,693
7,606,211
Business services and wholesale
371,952
368,364
1,467,149
1,474,269
News and Advertising
128,056
151,846
447,742
520,293
Other(1)
15,512
12,224
48,480
46,886
Total revenue
2,301,612
2,369,196
9,237,064
9,647,659
Operating expenses:
Programming and other direct costs
745,305
775,713
3,029,842
3,205,638
Other operating expenses
671,607
725,709
2,646,258
2,735,469
Restructuring, impairments and other
operating items
175,424
120,227
214,727
130,285
Depreciation and amortization (including
impairments)
407,014
446,430
1,644,297
1,773,673
Operating income
302,262
301,117
1,701,940
1,802,594
Other income (expense):
Interest expense, net
(422,917
)
(377,072
)
(1,639,120
)
(1,331,636
)
Gain (loss) on investments and sale of
affiliate interests, net
(11,773
)
242,268
180,237
(659,792
)
Gain (loss) on derivative contracts,
net
—
(218,041
)
(166,489
)
425,815
Gain (loss) on interest rate swap
contracts, net
(46,044
)
2,828
32,664
271,788
Gain (loss) on extinguishment of debt and
write-off of deferred financing costs
—
(575
)
4,393
(575
)
Other income (loss), net
(2,225
)
339
4,940
8,535
Income (loss) before income
taxes
(180,697
)
(49,136
)
118,565
516,729
Income tax benefit (expense)
66,905
(143,277
)
(39,528
)
(295,840
)
Net income (loss)
(113,792
)
(192,413
)
79,037
220,889
Net income attributable to noncontrolling
interests
(4,014
)
(700
)
(25,839
)
(26,326
)
Net income (loss) attributable to
Altice USA stockholders
$
(117,806
)
$
(193,113
)
$
53,198
$
194,563
Basic net income (loss) per
share
$
(0.26
)
$
(0.43
)
$
0.12
$
0.43
Diluted net income (loss) per
share
$
(0.26
)
$
(0.43
)
$
0.12
$
0.43
Basic weighted average common
shares
454,785
453,276
454,723
453,244
Diluted weighted average common
shares
454,785
453,276
455,034
453,282
Altice USA Consolidated Statements of Cash Flows (in
thousands)
Twelve Months Ended December
31,
2023
2022
Cash flows from operating activities:
Net income
$
79,037
$
220,889
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization (including
impairments)
1,644,297
1,773,673
Loss (gain) on investments and sale of
affiliate interests, net
(180,237
)
659,792
Loss (gain) on derivative contracts,
net
166,489
(425,815
)
Loss (gain) on extinguishment of debt and
write-off of deferred financing costs
(4,393
)
575
Amortization of deferred financing costs
and discounts (premiums) on indebtedness
34,440
77,356
Share-based compensation expense
47,926
159,985
Deferred income taxes
(226,915
)
36,385
Decrease in right-of-use assets
46,108
44,342
Provision for doubtful accounts
84,461
88,159
Goodwill impairment
163,055
—
Other
11,169
3,460
Change in operating assets and
liabilities, net of effects of acquisitions and dispositions:
Accounts receivable, trade
(77,703
)
(45,279
)
Prepaid expenses and other assets
(54,782
)
50,419
Amounts due from and due to affiliates
50,831
(7,749
)
Accounts payable and accrued
liabilities
(39,256
)
46,724
Deferred revenue
9,164
(14,953
)
Interest rate swap contracts
72,707
(301,062
)
Net cash provided by operating
activities
1,826,398
2,366,901
Cash flows from investing activities:
Capital expenditures
(1,704,811
)
(1,914,282
)
Payments for acquisitions, net of cash
acquired
—
(2,060
)
Other, net
(1,712
)
(5,168
)
Net cash used in investing activities
(1,706,523
)
(1,921,510
)
Cash flows from financing activities:
Proceeds from long-term debt
2,700,000
4,276,903
Repayment of debt
(2,688,009
)
(4,469,727
)
Proceeds from derivative contracts in
connection with the settlement of collateralized debt
38,902
—
Principal payments on finance lease
obligations
(149,297
)
(134,682
)
Payments to acquire noncontrolling
interest
(14,070
)
—
Other, net
(10,117
)
(8,400
)
Net cash used in financing activities
(122,591
)
(335,906
)
Net increase (decrease) in cash and cash
equivalents
(2,716
)
109,485
Effect of exchange rate changes on cash
and cash equivalents
(697
)
291
Net increase (decrease) in cash and cash
equivalents
(3,413
)
109,776
Cash, cash equivalents and restricted cash
at beginning of year
305,751
195,975
Cash, cash equivalents and restricted cash
at end of year
$
302,338
$
305,751
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).
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.
Reconciliation of Net Income to
Adjusted EBITDA and Operating Free Cash Flow
(in thousands)
(unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Net income (loss)
$
(113,792
)
$
(192,413
)
$
79,037
$
220,889
Income tax expense (benefit)
(66,905
)
143,277
39,528
295,840
Other loss (income), net
2,225
(339
)
(4,940
)
(8,535
)
Loss (gain) on interest rate swap
contracts, net
46,044
(2,828
)
(32,664
)
(271,788
)
Loss (gain) on derivative contracts,
net
—
218,041
166,489
(425,815
)
Loss (gain) on investments and sale of
affiliate interests, net
11,773
(242,268
)
(180,237
)
659,792
Loss (gain) on extinguishment of debt and
write-off of deferred financing costs
—
575
(4,393
)
575
Interest expense, net
422,917
377,072
1,639,120
1,331,636
Depreciation and amortization
407,014
446,430
1,644,297
1,773,673
Restructuring, impairments and other
operating items
175,424
120,227
214,727
130,285
Share-based compensation
18,558
45,575
47,926
159,985
Adjusted EBITDA
903,258
913,349
3,608,890
3,866,537
Capital expenditures (cash)
295,250
543,226
1,704,811
1,914,282
Operating Free Cash Flow
$
608,008
$
370,123
$
1,904,079
$
1,952,255
Reconciliation of net cash flow from
operating activities to Free Cash Flow (Deficit)
(unaudited):
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Net cash flows from operating
activities
$
496,213
$
461,185
$
1,826,398
$
2,366,901
Capital Expenditures (cash)
295,250
543,226
1,704,811
1,914,282
Free Cash Flow (Deficit)
$
200,963
$
(82,041
)
$
121,587
$
452,619
Consolidated Net Debt as of December 31, 2023(9)
CSC Holdings, LLC Restricted Group
(in $m)
Principal
Amount
Pro Forma Principal Amount
(9)
Coupon / Margin
Maturity
Drawn RCF
$825
$1,575
SOFR+2.350%
2027
Term Loan
1,520
—
L+2.250%(16)
2025
Term Loan B-3
522
—
L+2.250%(16)
2026
Term Loan B-5
2,888
2,888
L+2.500%(16)
2027
Term Loan B-6
1,987
1,987
SOFR+4.500%
2028(17)
Guaranteed Notes
1,310
1,310
5.500%
2027
Guaranteed Notes
1,000
1,000
5.375%
2028
Guaranteed Notes
1,000
1,000
11.250%
2028
Guaranteed Notes
—
2,050
11.750%
2029
Guaranteed Notes
1,750
1,750
6.500%
2029
Guaranteed Notes
1,100
1,100
4.125%
2030
Guaranteed Notes
1,000
1,000
3.375%
2031
Guaranteed Notes
1,500
1,500
4.500%
2031
Senior Notes
750
—
5.250%
2024
Senior Notes
1,046
1,046
7.500%
2028
Legacy unexchanged Cequel Notes
4
4
7.500%
2028
Senior Notes
2,250
2,250
5.750%
2030
Senior Notes
2,325
2,325
4.625%
2030
Senior Notes
500
500
5.000%
2031
CSC Holdings, LLC Restricted Group
Gross Debt
23,277
23,285
CSC Holdings, LLC Restricted Group
Cash
(257)
(257)
CSC Holdings, LLC Restricted Group Net
Debt
$23,020
$23,028
CSC Holdings, LLC Restricted Group
Undrawn RCF
$1,516
$767
Cablevision Lightpath LLC (in
$m)
Principal Amount
Coupon / Margin
Maturity
Drawn RCF
$—
SOFR+3.360%
2025
Term Loan
582
SOFR+3.360%
2027
Senior Secured Notes
450
3.875%
2027
Senior Notes
415
5.625%
2028
Cablevision Lightpath Gross
Debt
1,447
Cablevision Lightpath Cash
(26)
Cablevision Lightpath Net Debt
$1,421
Cablevision Lightpath Undrawn
RCF
$100
Net Leverage Schedules as of December
31, 2023 (in $m)
CSC Holdings Restricted
Group(18)
Cablevision Lightpath
LLC
CSC Holdings
Consolidated(19)
Altice USA
Consolidated
Gross Debt Consolidated(20)
$23,277
$1,447
$24,724
$24,724
Cash
(257)
(26)
(302)
(302)
Net Debt Consolidated(8)
$23,020
$1,421
$24,422
$24,422
LTM EBITDA
$3,366
$246
$3,609
$3,609
L2QA EBITDA
$3,393
$246
$3,638
$3,638
Net Leverage (LTM)
6.8x
5.8x
6.8x
6.8x
Net Leverage (L2QA)
6.8x
5.8x
6.7x
6.7x
WACD (%)
6.1%
5.4%
6.1%
6.1%
Reconciliation to Financial Reported
Debt
Actual
Total Debenture and Loans from
Financial Institutions (Carrying Amount)
$24,672
Unamortized financing costs, discounts and
fair value adjustments, net of unamortized premiums
52
Gross Debt Consolidated(20)
24,724
Finance leases and other notes
403
Total Debt
25,127
Cash
(302)
Net Debt
$24,825
(1)
Beginning in the second quarter
of 2023, mobile service revenue previously included in mobile
revenue is now separately reported in residential revenue and
business services revenue. In addition, mobile equipment revenue
previously included in mobile revenue is now included in other
revenue. Prior period amounts have been revised to conform with
this presentation.
(2)
Average revenue per user (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. ARPU amounts for
prior periods have been adjusted to include mobile service
revenue.
(3)
See “Reconciliation of Non-GAAP
Financial Measures” beginning on page 8 of this release.
(4)
Transactional NPS (tNPS)
represents the average monthly metric for the quarter that blends
Care, Field, Retail and Sales across Fixed, Mobile, and Advanced
Support.
(5)
Self-install % increase is the
change in percentage of residential installs at eligible addresses
choosing self-install, excluding fiber installs.
(6)
Truck rolls exclude employee
initiated special request orders.
(7)
Inbounds calls refers to
technical, care and support call.
(8)
Net debt, defined as the
principal amount of debt less cash, and excluding finance leases
and other notes.
(9)
In January 2024, CSC Holdings
issued $2,050,000 in aggregate principal amount of senior
guaranteed notes due 2029 which bear interest at a rate of 11.750%
maturing January 31, 2029. The proceeds from the sale of these
notes were used to repay the outstanding principal balance of the
Term Loan B loan and the Incremental Term Loan B-3 in full, and to
pay fees, costs and expenses associated with these transactions.
Also in January 2024, we notified the holders of our 5.250% Senior
Notes due 2024 and 5.250% Series B Senior Notes due 2024 of our
intent to redeem these notes in full. We expect to draw down
$750,000 under our Revolving Credit Facility to redeem these notes
on February 28, 2024.
(10)
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.
(11)
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.
(12)
Total Customer Relationship
metrics do not include mobile-only customers.
(13)
Reported ending mobile lines
include lines receiving free service. Adjusted mobile lines 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.
(14)
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.
(15)
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.
(16)
These loans use Synthetic USD
LIBOR, calculated as Term SOFR plus a spread adjustment.
(17)
The 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 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.
(18)
CSC Holdings, LLC Restricted
Group excludes the unrestricted subsidiaries, primarily Cablevision
Lightpath LLC and NY Interconnect, LLC.
(19)
CSC Holdings Consolidated
includes the CSC Holdings, LLC Restricted Group and the
unrestricted subsidiaries.
(20)
Principal amount of debt
excluding finance leases and other notes and collateralized
debt.
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 4.7 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 and i24NEWS networks.
FORWARD-LOOKING STATEMENT
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,
trends, service and operational improvements, base management
strategy, capital expenditure plans, fiber and mobile growth, and
upgrade 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 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/20240214021015/en/
Investor Relations Sarah Freedman: +1 631 660 8714 /
sarah.freedman@alticeusa.com
Communications Lisa Anselmo: +1 516 279 9461 /
lisa.anselmo@alticeusa.com Janet Meahan: +1 516 519 2353 /
janet.meahan@alticeusa.com
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