[August 13, 2004] Atlantic Broadband Finance, LLC Reports 2004 Second Quarter Financial Results and Conference Call QUINCY, Mass. --(Business Wire)-- Aug. 13, 2004 -- Atlantic Broadband Finance, LLC reported today financial results for the quarter ended June 30, 2004. The Company will host a conference call at 1:30 EDT on Wednesday August 18, 2004 to review the results. On September 3, 2003, Atlantic Broadband Finance, LLC ("Atlantic Broadband") entered into a definitive agreement with certain subsidiaries of Charter Communications, Inc. ("Charter") to purchase cable television systems in Pennsylvania, New York, Maryland, Delaware, West Virginia and Florida. The sale of all of the systems excluding those in New York closed on March 1, 2004, while the New York system was operated under a franchise management agreement until the sale for this system was consummated on April 30, 2004. Results for the six months ended June 30, 2004 represent the system results for the first two months ended February 29, 2004 under Charter management, and for the four months ended June 31, 2004 under Atlantic Broadband management. Also included are the pre-closing corporate overhead costs of Atlantic Broadband. On a combined basis, the Atlantic Broadband system's total revenue for the three months ended June 30, 2004 was $45.3 million as compared to $43.3 million for the three months ended June 30, 2003, the increase in revenue being driven mainly by increases in high speed data revenues resulting from significant consumer demand, coupled with an increase in other revenue in conjunction with the change in the reporting of a communications tax pass-through, with the related revenue and offsetting expense now being charged through the statement of operations in accordance with generally accepted accounting principles. For the three months ended June 30, 2004, the Company's operating and selling, general and administrative expenses were $28.3 million, including approximately $1.4 million in non-recurring transition related expenses or duplicative corporate overhead costs. The approximately $26.9 million of recurring operating and selling, general and administrative expenses were significantly higher than when the systems were operated by Charter due to increased programming, insurance and billing expenses resulting from Atlantic's cost structure, coupled with the offsetting expense for the communications tax pass-through. The second quarter adjusted EBITDA for the three months ended June 30, 2004 was approximately $18.4 million. For the six months ended June 30, 2004, on a combined pro forma basis total revenues were $89.3 million as compared to $86.1 million for the comparable period in 2003. Again, the increase in total revenues was mainly driven by the increased high speed data revenues and the communications tax pass-through reporting change discussed above. Total operating and selling, general and administrative expenses were $54.1 million for the six months ended June 30, 2004 as compared to $44.4 million for the six months ended June 30, 2003. This increase reflects $3.3 million in non-recurring transition expenses and a $1.6 million increase resulting from the tax pass-through reporting change. The remaining $4.8 million increase reflects Atlantic's higher cost structure. On a pro forma basis, EBITDA for the six months ended June 30, 2004 was $36.1 million. Total debt outstanding at June 30, 2004 was $486.4 million and cash balances were $14.6 million at quarter end. On an annualized basis, the second quarter's pro forma adjusted EBITDA resulted in a total leverage ratio as defined in the Company's credit agreement of approximately 6.87x. -0- *T Reconciliation of Net Loss to Adjusted EBITDA (in thousands): Three Months Six Months Ended Ended June 30, 2004 June 30, 2004 ------------- ------------- Combined net income $6,807 $3,215 Plus: Income tax expense - 28 Interest expense, net 7,946 20,525 Depreciation and amortization 8,404 17,096 Non-recurring transition /duplicative expenses 1,384 3,331 FMV adjustment of interest rate swap (6,122) (6,060) Historic Charter programming expense n/a 8,536 Historic Charter internet backbone expense n/a 170 Historic Charter billing expense n/a 426 Historic Charter P&C insurance expense n/a 167 Historic Charter corporate charges n/a 435 Less: ABB pro forma programming expense n/a (9,926) ABB internet backbone expense n/a (349) ABB billing expense n/a (426) ABB P&C insurance expense n/a (368) ABB corporate expense n/a (653) ------------- ------------- Pro forma adjusted EBITDA $18,419 $36,147 ------------- ------------- *T Access to the Conference Call To access the conference call, interested parties may dial (800) 531-3250 and provide the conference ID "4459324" to the attendant. A replay will be available beginning on August 20th via the Company's website at atlanticbb.com for thirty days following the live event. 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). [ Back To TMCnet.com's Homepage ]