| [August 05, 2009] |
 |
Atlantic Broadband Finance, LLC Reports 2009 Second Quarter Financial Results and Conference Call
QUINCY, Mass. --(Business Wire)--
Atlantic Broadband Finance, LLC ("Atlantic Broadband" or the "Company") reported today financial results for the period ended June 30, 2009.
Revenue for the three months ended June 30, 2009 was $75.3 million as compared to $69.4 million for the three months ended June 30, 2008, an increase of $5.9 million or 8.5%. This increase was mainly the result of (i) a $1.5 million increase in video revenue resulting from increases in digital, Digital Video Recorder and high definition subscribers; (ii) an increase in high-speed data revenue of $1.7 million or 14.5% from continued marketing focus for this service offering driving HSD subscriber growth; (iii) a $1.5 million increase in telephone revenue generated by increases in subscriber levels and (iv) a $1.2 million increase in commercial revenue as we continue to expand our non-residential customer base through targeted marketing efforts. We expect revenues to continue to increase as video subscriber levels stabilize while we expect to continue to see subscriber growth in our high-speed data and telephone service offerings.
Operating expenses for the three months ended June 30, 2009 were $33.9 million as compared to $31.9 million for the same period in 2008. The $2.0 million increase was mainly the result of increased programming costs in conjunction with annual contractual increases, coupled with increased HSD and telephony direct costs driven by higher subscriber levels and usage. We expect operating expenses to continue to increase as growth in total revenue generating units will result in increased direct expenses, while technical and customer support levels should remain relatively stable.
Selling, general and administrative expenses for the three months ended June 30, 2009 were $10.6 million as compared to $10.8 million for the three months ended June 30, 2008, a decrease of $0.2 million. This decrease resulted mainly from decreases in marketing efforts during a traditionally slower gross subscriber connect season. We expect to see relatively moderate growth in selling, general and administrative expenses as we increase marketing spending to drive subscriber growth trends.
Revenue for the six months ended June 30, 2009 was $149.1 million as compared to $136.7 million for the six months ended June 30, 2008, an increase of $12.4 million or 9.1%. This increase was mainly the result of a (i) $2.9 million in video revenue from increased digital subscriber levels, along with increased usage of Digital Video Recorders and high definition converters; (ii) a $3.5 million or 15.5% increase in high-speed data revenue resulting from continued marketing focus for this service offering driving HSD subscriber growth; (iii) a $3.4 million increase in telephone revenue generated by this service offering through subscriber growth and (iv) a $2.3 million increase in commercial revenue as we continue to expand our non-residential customer base through targeted marketing efforts.
Operating expenses for the six months ended June 30, 2009 were $67.8 million as compared to $63.2 million for the same period in 2008. The $4.6 million or 7.3% increase was mainly the result of increased programming costs in conjunction with annual contractual increases, coupled with the incurrence of higher levels direct costs associated with our continued expansion of high speed data and cable telephony services.
Selling, general and administrative expenses for the six months ended June 30, 2009 and June 30, 2008 were a consistent $20.5 million. Underlying this flat trend is a moderate increase in marketing spending of $0.2 million, offset by decreases in other general expense items due to conscious efforts to control costs.
Liquidity and Cash Flow:
Total debt outstanding at June 30, 2009 was $599.6 million and cash balances were $10.5 million at quarter end. On an annualized basis, EBITDA for the six months ended June 30, 2009, adjusted for certain expenditures as defined in the Company's credit agreement totaling $0.2 million resulted in a total leverage ratio as defined in said credit agreement of approximately 5.0x.
Summary Financial Results:
The following tables summarize financial results for the three and six month periods ended June 30, 2009:
Subscriber information
6/30/08
12/31/08
6/30/09
EBU's
225,401
223,583
220,328
Digital Subscribers
87,190
89,854
88,559
HSD Residential Subscribers
119,461
126,143
131,669
Telephone Residential Subscribers
41,394
50,692
57,277
Homes Passed
502,596
504,931
505,812
Internet-ready Homes Passed
493,881
497,330
498,211
Telephone-ready Homes Passed
456,692
476,845
486,625
Basic Subscribers
285,471
285,540
283,790
Basic Penetration of Homes Passed
56.8
%
56.6
%
56.1
%
Digital Penetration of Basic Subscribers
30.5
%
31.5
%
31.2
%
HSD Penetration of Internet-ready Homes Passed
24.2
%
25.4
%
26.4
%
Telephone Penetration of Telephone-ready Homes Passed
9.1
%
10.6
%
11.8
%
Operating results
Three Months Ended June 30.
Six Months Ended June 30.
2008
2009
2008
2009
Amount
%
Amount
%
Amount
%
Amount
%
(dollars in thousands)
(dollars in thousands)
Revenue:
Video
$39,997
57.6
%
$41,466
55.1
%
$79,407
58.1
%
$82,338
55.2
%
High Speed Data
11,482
16.6
13,149
17.5
22,517
16.5
26,000
17.4
Telephone
4,325
6.2
5,846
7.7
8,054
5.9
11,428
7.7
Advertising Sales
1,789
2.6
1,652
2.2
3,323
2.4
3,314
2.2
Commercial
6,050
8.7
7,299
9.7
11,916
8.7
14,238
9.6
Other
5,771
8.3
5,871
7.8
11,456
8.4
11,732
7.9
Total revenue
$69,414
100.0
%
$75,283
100.0
%
$136,673
100.0
%
$149,050
100.0
%
Costs and expenses:
Operating (excluding depreciation and
amortization and other items listed below)
31,885
45.9
%
33,945
45.1
%
63,158
46.2
%
67,794
45.5
%
Selling, general and administrative
10,817
15.6
%
10,590
14.1
%
20,452
15.0
%
20,549
13.8
%
Depreciation and amortization
10,428
15.0
%
10,283
13.7
%
21,646
15.8
%
21,164
14.2
%
Income from operations
16,284
20,465
31,417
39,543
Other Income (expenses):
Gain (loss) from derivative instruments
2,706
--
(457
)
1,821
Loss on extinguishment of debt
--
(4,619
)
--
(4,619
)
Interest expense, net
(11,545
)
(8,876
)
(24,561
)
(19,170
)
Net Income
7,445
6,970
6,399
17,575
Reconciliation of Income from operations to EBITDA (in thousands):
Three Months
Six Months
Ended
Ended
June 30, 2009
June 30, 2009
Income from operations
$ 20,465
$ 39,543
Plus:
Depreciation and amortization
10,283
21,164
EBITDA
$ 30,748
$ 60,707
Conference Call:
The Company will host a conference call at 11:00 a.m. EDT on Friday August 7, 2009 to discuss the financial results. To access the conference call, interested parties may dial (888) 339-2688 and provide the conference passcode "184 660 80" to the attendant. A replay will be available through August 29, 2009 by dialing (888) 286-8010 and using the passcode "173 845 74".
Note Regarding Forward-Looking Statements:
Statements in this release that are "forward-looking statements" are based upon current expectations and assumptions, and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation reform Act of 1995. Words of expressions such as "intends", "expects", "expected", "anticipates" or variations of such words and similar expressions are intended to identify such forward-looking statements. Key risks are described in the Company's report filed with the Securities and Exchange Commission (SEC (News - Alert)).
[ Back To TMCnet.com's Homepage ]
|
TMCnet LOGIN
Webinars
