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Suddenlink Reports Third Quarter 2009 Financial and Operating ResultsST. LOUIS --(Business Wire)-- Cequel Communications Holdings I, LLC ("Cequel Holdings" and, together with its subsidiaries, the "Company" or "Suddenlink") today reported financial and operating results for the three and nine months ended September 30, 2009. Third Quarter 2009 Highlights Third quarter revenues of $391.3 million grew 7.0% on a pro forma basis and 8.8% on an actual basis compared to the prior year. Revenues for the first nine months of 2009 of $1.167 billion grew 8.1% on a pro forma basis and 9.9% on an actual basis compared to the prior year. Adjusted EBITDA (as defined herein) for the third quarter of $139.0 million grew 9.7% on a pro forma basis and 11.1% on an actual basis compared to the prior year. Adjusted EBITDA for the first nine months of 2009 was $410.2 million, an increase of 12.8% on a pro forma basis and 14.3% on an actual basis compared to the prior year. Revenue generating units (RGUs) increased 58,600 for the third quarter and 178,300 year-over-year (on a pro forma basis), or a 6.9% annual gain. Total average monthly revenue per basic video customer was $103.80, a pro forma increase of 8.7% year-over-year. Bundled customers represented 52.2% of total customer relationships, an increase of 580 basis points from one year ago, primarily from growth in triple play customer relationships, which represented 15.2% of total customer relationships at September 30, 2009. "We are very pleased with our third quarter results, in particular, the continued growth we have achieved in our digital television, Internet, and phone services," said Cequel Holdings' Chairman and Chief Executive Officer Jerry Kent. "We remain in outstanding financial condition and believe the significant improvements we've made in customer service have been key to our overall success, despite a challenging economic environment." Three Months Ended September 30, 2009 Compared to Pro Forma Three Months Ended September 30, 2008 Operating results and year-over-year changes as described below are presented on a pro forma basis for the three months ended September 30, 2008 to exclude the impact of the disposition during 2008 of three small non-strategic cable systems and to include the acquisition of CoStreet Communications, which occurred on October 15, 2008, as if those transactions had been consummated on January 1, 2008. Third quarter 2009 revenues rose 7.0%, largely attributable to the growth in revenue generating units, offset in part by a decrease in advertising revenues. Video revenues increased 3.0%, primarily due to customer growth in digital video and advanced video services, as well as basic video rate increases, offset in part by a lower number of basic customers. The Company lost approximately 8,200 basic customers during the three months ended September 30, 2009, compared to a pro forma increase of 4,500 basic customers during the three months ended September 30, 2008, and lost 26,200 basic customers on a pro forma basis over the last twelve months. Digital video customers increased by 42,100 over the trailing twelve months and grew by 16,300 during the three months ended September 30, 2009, compared with a pro forma increase of 18,900 during the same period in the prior year. High-speed data revenues increased 8.9%, due to an increase of 70,300 residential high-speed data customers over the last twelve months and growth in commercial high-speed data services to small and medium sized businesses. Residential high-speed data customers grew by 24,200 during the three months ended September 30, 2009, as compared to a pro forma gain of 29,000 during the three months ended September 30, 2008. Telephone revenues increased 39.9%, primarily due to an increase of 92,100 residential telephone customers over the last twelve months. Residential telephone customers grew by 26,300 during the three months ended September 30, 2009, as compared to a gain of 24,000 during the three months ended September 30, 2008. Advertising revenues decreased 16.6%, largely due to sharp decreases in local and national advertising, especially in the automotive industry, and the absence of significant political advertising revenues in the current year. Other revenues increased 17.3% due to, among other things, increased converter rental charges for high-definition and DVR capable digital converters, and from broadcast retransmission fees, which were collected for the first time in the first quarter 2009. Operating costs and expenses rose 5.5%, primarily due to higher programming costs, increased broadcast retransmission expenses and increased telephone service costs, offset in part by lower vehicle fuel expenses and lower bad debt expenses. Adjusted EBITDA for the three months ended September 30, 2009 was $139.0 million, an increase of 9.7% from the same quarter last year, resulting in an Adjusted EBITDA margin of 35.5%, an increase of 90 basis points from the year ago period. Income from operations for the third quarter of 2009 was $58.4 million, an increase of 16.4%, compared to $50.1 million for the third quarter of 2008. Net loss was $7.7 million, an improvement of 51.1% from a net loss of $15.8 million in the prior year period. Liquidity and Capital Resources At September 30, 2009, the Company had approximately $254.6 million in cash and cash equivalents on hand and a $200.0 million undrawn credit facility revolver, reduced by outstanding letters of credit. Capital expenditures for the third quarter of 2009 were $54.9 million, compared to $52.3 million for the same period in 2008. In the fourth quarter 2009, the Company began the first phase of its bandwidth investment plan. Over the next three years, this investment in the Company's existing network will provide additional capacity to launch video on demand services into new areas, provide capacity for additional high definition channels and increase Internet speeds for the Company's customers. The Company expects full year 2009 capital expenditures to be approximately $250 million, including approximately $35 million related to the bandwidth investment plan. Net cash flows from operating activities increased to $81.8 million for the third quarter of 2009, compared to $63.2 million for the third quarter of 2008, primarily from growth in Adjusted EBITDA. Net cash flows used in investing activities, primarily consisting of capital expenditures, were $54.9 million and $51.2 million for the quarters ended September 30, 2009 and 2008, respectively. Net cash flows used in financing activities were $12.5 million for the third quarter 2009 and $5.9 million for the third quarter 2008. Free Cash Flow for the quarter and nine months ended September 30, 2009 was $24.9 million and $84.9 million, respectively, both significant increases from the year ago period. The Total Leverage Ratio (Consolidated Total Debt to Adjusted Pro Forma EBITDA) for Cequel Communications, LLC, an indirect wholly owned subsidiary of Cequel Holdings, as defined in and calculated in accordance with the applicable credit agreements, was 5.5x at September 30, 2009. The Total Leverage Ratio net of all cash on hand was 5.1x at September 30, 2009. New Financings On November 4, 2009, Cequel Holdings, and its subsidiary co-issuer Cequel Capital Corporation, issued $600 million of senior notes, due November 2017. The notes bear interest at 8.625%, and were sold at a discount to yield an effective interest rate of 8.875%. The Company used the proceeds, plus cash on hand, to prepay $300 million of amounts outstanding under its 1st Lien Credit Facility and $300 million of amounts outstanding under its 2nd Lien Credit Facility - Tranche B, and to pay for associated fees and expenses. Conference Call As previously announced, the Company will host a conference call to discuss its third quarter results at 11:00 a.m. (Eastern Time) on Thursday, November 19, 2009. The dial-in information for the earnings call is as follows: Within the United States 866-394-9561 International 281-312-0031 Password Cequel Communications Conference ID 41340209 A replay of this earnings call will be available on the Company's website (www.suddenlink.com). During the conference call, representatives of the Company may discuss and answer one or more questions concerning the Company's business and financial matters. The responses to these questions, as well as other matters discussed during the call, may contain information that has not been previously disclosed. Quarterly Report The information in this press release should be read in conjunction with the financial statements and footnotes contained in the Company's quarterly report for the quarter ended September 30, 2009 which will be posted on the Company's website (www.suddenlink.com) on November 19, 2009. Use of Non-GAAP Financial Measures The Company uses certain measures that are not defined by Generally Accepted Accounting Principles ("GAAP") to evaluate various aspects of its business. Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. Adjusted EBITDA is a non-GAAP financial measure defined as net loss, plus interest expense, provision for income taxes, depreciation, amortization, non-cash share based compensation expense, and (gain)/loss on sale of cable assets. Free Cash Flow is a non-GAAP financial measure defined as Adjusted EBITDA, less capital expenditures and cash interest expense. Adjusted EBITDA and Free Cash Flow may not be necessarily comparable to similarly titled measures of other companies. Furthermore, Adjusted EBITDA and free cash flow have limitations as analytical tools and should not be considered in isolation from, or as an alternative to, net income or loss, operating income, cash flow from operations or other combined income or cash flow data prepared in accordance with GAAP. A reconciliation of Adjusted EBITDA to EBITDA and net loss is provided in Table 8. A reconciliation of Free Cash Flow to net cash provided by operating activities is provided in Table 9. The Company believes that Adjusted EBITDA and Free Cash Flow provide information useful to investors in assessing the Company's ability to fund operations, service its debt and make additional investments from internally generated funds. In addition, Adjusted EBITDA generally correlates to the covenant calculations under the Company's credit facilities. Company Description The Company, which does business as Suddenlink Communications, is the eighth largest cable broadband company in the United States, supporting the information, communication and entertainment demands of approximately 1.3 million residential customers and thousands of commercial customers in Arkansas, Louisiana, North Carolina, Oklahoma, Texas, West Virginia, and elsewhere. Suddenlink simplifies its customers' lives through one call for support, one connection, and one bill for TV, Internet, telephone, and other services. Cautionary Note Regarding Forward-Looking Statements Some statements in this Press Release are known as "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may relate to, among other things: competition for video, high-speed data and telephone customers; the Company's ability to achieve anticipated customer and revenue growth and to successfully introduce new products and services; greater than anticipated effects of the current, or future, economic downturns or other factors which may negatively affect demand for the Company's products and services; increasing programming costs and delivery expenses related to the Company's products and services; changes in consumer preferences, laws and regulations or technology that may cause the Company to change its operational strategies; the Company's substantial indebtedness; the restrictions contained in the Company's financing agreements; the Company's ability to generate sufficient cash flow to meet its debt service obligations; and fluctuations in interest rates which may cause the Company's interest expense to vary from quarter to quarter. These forward-looking statements include, but are not limited to, statements about our plans, objectives, expectations and intentions and other statements contained in this Press Release that are not historical facts. When used in this Press Release, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements, including our plans, objectives, expectations and intentions and other factors. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of the date on which this Press Release is posted on the Company's website (www.suddenlink.com). The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made on related subjects in the Company's subsequent reports furnished to holders of the notes. Tables: 1 Consolidated Statements of Operations - three and nine month periods 2 Pro Forma Consolidated Statements of Operations - three and nine month periods 3 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Cash Flows 5 Capital Expenditures 6 Pro Forma Summary Operating Statistics 7 Free Cash Flow 8 Reconciliation of EBITDA and Adjusted EBITDA 9 Reconciliation of Free Cash Flow 10 Reconciliation of Cash Interest Expense TABLE 1 Cequel Communications Holdings I, LLC Consolidated Statements of Operations (unaudited) (in thousands) Three Months Ended Nine Months Ended September 30, Percent September 30, Percent 2009 2008 Change 2009 2008 Change Actual Actual Actual Actual Revenues: Video $ 203,814 $ 198,122 2.9 % $ 615,760 $ 594,950 3.5 % High Speed Data 91,150 77,477 17.6 % 271,638 226,343 20.0 % Telephone 25,028 17,889 39.9 % 69,710 46,223 50.8 % Advertising Sales 15,908 19,099 -16.7 % 47,180 56,373 -16.3 % Other 55,442 47,237 17.4 % 162,407 137,385 18.2 % Total Revenues 391,342 359,824 8.8 % 1,166,695 1,061,274 9.9 % Costs and Expenses: Operating (excluding depreciation and amortization) 169,863 151,190 -12.4 % 505,898 453,246 -11.6 % Selling, general and administrative (excluding non-cash share based compensation expense) 82,459 83,519 1.3 % 250,569 249,224 -0.5 % Operating costs and expenses 252,322 234,709 -7.5 % 756,467 702,470 -7.7 % Adjusted EBITDA 139,020 125,115 11.1 % 410,228 358,804 14.3 % Adjusted EBITDA Margin (a) 35.5 % 34.8 % 35.2 % 33.8 % Depreciation and amortization 79,003 75,107 -5.2 % 242,785 220,755 -10.0 % Non-cash share based compensation expense 1,836 1,726 -6.4 % 5,467 5,012 -9.1 % (Gain) / loss on sale of cable assets (177 ) (308 ) -42.5 % (233 ) 1,180 119.7 % Income from operations 58,358 48,590 20.1 % 162,209 131,857 23.0 % Interest expense, net (62,066 ) (64,985 ) 4.5 % (181,412 ) (194,246 ) 6.6 % Loss before provision for income taxes (3,708 ) (16,395 ) 77.4 % (19,203 ) (62,389 ) 69.2 % Provision for income taxes (4,023 ) (975 ) -312.6 % (5,087 ) (2,925 ) -73.9 % Net loss $ (7,731 ) $ (17,370 ) 55.5 % $ (24,290 ) $ (65,314 ) 62.8 % (a) Represents Adjusted EBITDA as a percentage of total revenue. TABLE 2 Cequel Communications Holdings I, LLC Pro Forma Consolidated Statements of Operations (unaudited) (b) (in thousands) Three Months Ended Nine Months Ended September 30, Percent September 30, Percent 2009 2008 Change 2009 2008 Change Actual Pro Forma (b) Actual Pro Forma (b) Revenues: Video $ 203,814 $ 197,872 3.0 % $ 615,760 $ 593,972 3.7 % High Speed Data 91,150 83,686 8.9 % 271,638 245,360 10.7 % Telephone 25,028 17,889 39.9 % 69,710 46,223 50.8 % Advertising Sales 15,908 19,081 -16.6 % 47,180 56,322 -16.2 % Other 55,442 47,252 17.3 % 162,407 137,256 18.3 % Total Revenues 391,342 365,780 7.0 % 1,166,695 1,079,133 8.1 % Costs and Expenses: Operating (excluding depreciation and amortization) 169,863 155,040 -9.6 % 505,898 464,679 -8.9 % Selling, general and administrative (excluding non-cash share based compensation expense) 82,459 84,066 1.9 % 250,569 250,838 0.1 % Operating costs and expenses 252,322 239,106 -5.5 % 756,467 715,517 -5.7 % Adjusted EBITDA 139,020 126,674 9.7 % 410,228 363,616 12.8 % Adjusted EBITDA Margin (a) 35.5 % 34.6 % 35.2 % 33.7 % Depreciation and amortization 79,003 75,107 -5.2 % 242,785 220,755 -10.0 % Non-cash share based compensation expense 1,836 1,726 -6.4 % 5,467 5,012 -9.1 % (Gain) / loss on sale of cable assets (177 ) (308 ) -42.5 % (233 ) 1,180 119.7 % Income from operations 58,358 50,149 16.4 % 162,209 136,669 18.7 % Interest expense, net (62,066 ) (64,985 ) 4.5 % (181,412 ) (194,246 ) 6.6 % Loss before provision for income taxes (3,708 ) (14,836 ) 75.0 % (19,203 ) (57,577 ) 66.6 % Provision for income taxes (4,023 ) (975 ) -312.6 % (5,087 ) (2,925 ) -73.9 % Net loss $ (7,731 ) $ (15,811 ) 51.1 % $ (24,290 ) $ (60,502 ) 59.9 % (a) Represents Adjusted EBITDA as a percentage of total revenue. (b) Pro forma to exclude the impact of the disposition during 2008 of three small non-strategic cable systems and to include the acquisition of CoStreet Communications, which occurred on October 15, 2008, as if those transactions had been consummated on January 1, 2008. TABLE 3 Cequel Communications Holdings I, LLC Condensed Consolidated Balance Sheets (unaudited) (in thousands) September 30, December 31, 2009 2008 ASSETS Cash and cash equivalents $ 254,633 $ 170,517 Accounts receivable, net 128,013 126,537 Prepaid expenses 22,059 25,456 Total current assets 404,705 322,510 Property, plant and equipment, net 1,290,480 1,349,243 Intangible assets, net 2,099,695 2,142,556 Other assets, net 45,917 47,769 Total assets $ 3,840,797 $ 3,862,078 LIABILITIES AND MEMBER'S EQUITY Accounts payable and accrued expenses $ 195,296 $ 182,825 Deferred revenue 98,485 93,569 Current portion of long-term debt 23,250 23,250 Other current liabilities 106,730 99,411 Total current liabilities 423,761 399,055 Long-term debt, less current portion 3,030,879 3,031,034 Deferred tax liabilities 24,043 21,354 Other long-term liabilities 99,607 159,232 Total liabilities 3,578,290 3,610,675 Total member's equity 262,507 251,403 Total liabilities and member's equity $ 3,840,797 $ 3,862,078 TABLE 4 Cequel Communications Holdings I, LLC Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Net cash provided by operating activities $ 81,759 $ 63,231 $ 273,822 $ 199,686 Net cash used in investing activities (54,927 ) (51,226 ) (162,531 ) (178,112 ) Net cash used in financing activities (12,456 ) (5,884 ) (27,175 ) (17,645 ) Increase in cash and cash equivalents 14,376 6,121 84,116 3,929 Cash and cash equivalents, beginning of period 240,257 177,962 170,517 180,154 Cash and cash equivalents, end of period $ 254,633 $ 184,083 $ 254,633 $ 184,083 TABLE 5 Cequel Communications Holdings I, LLC Capital Expenditures (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Customer premise equipment $ 14,216 $ 11,524 $ 53,233 $ 59,619 Scalable infrastructure 7,369 7,611 20,514 18,357 Line extensions 1,732 1,918 4,417 7,864 Upgrade/rebuild 614 2,598 1,483 6,220 Commercial 3,141 2,928 9,446 7,832 Support capital 27,812 25,763 74,200 78,093 $ 54,884 $ 52,342 $ 163,293 $ 177,985 TABLE 6 Cequel Communications Holdings I, LLC Pro Forma Summary Operating Statistics Approximate as of: September 30, June 30, December 31, September 30, 2009 2009 2008 2008 Actual Actual Actual Pro Forma (r) Revenue Generating Units (RGU): Basic video customers (a) 1,254,500 1,262,700 1,274,900 1,280,700 Digital video customers (b) 530,800 514,500 496,200 488,700 Residential high-speed data customers (c) 731,300 707,100 674,100 661,000 Residential telephone customers (d) 253,200 226,900 182,700 161,100 Total revenue generating units (e) 2,769,800 2,711,200 2,627,900 2,591,500 Quarterly net customer additions (losses) Actual Actual Actual Pro Forma (r) Basic video customers (8,200 ) (21,500 ) (5,800 ) 4,500 Digital video customers 16,300 2,900 7,500 18,900 Residential high-speed data customers 24,200 1,700 13,100 29,000 Residential telephone customers 26,300 20,900 21,600 24,000 Total revenue generating units 58,600 4,000 36,400 76,400 Average Revenue per Unit (ARPU): Actual Actual Pro Forma (r) Pro Forma (r) Pro forma average monthly revenue per basic video customer (f) $ 103.80 $ 102.21 $ 97.88 $ 95.50 Customer Relationships Actual Actual Actual Pro Forma (r) Total customer relationships (g) 1,265,900 1,267,500 1,269,300 1,273,200 Double play relationships (h) 469,500 465,400 464,800 466,900 Double play penetration (i) 37.1 % 36.7 % 36.6 % 36.7 % Triple play relationships (j) 191,900 173,200 140,400 123,800 Triple play penetration (k) 15.2 % 13.7 % 11.1 % 9.7 % Total bundled customers (l) 661,400 638,600 605,200 590,700 Bundled penetration (m) 52.2 % 50.4 % 47.7 % 46.4 % Estimated Customer Penetration Actual Actual Actual Pro Forma (r) Estimated basic penetration (n) 47.5 % 48.1 % 48.8 % 49.1 % Estimated digital penetration (o) 42.3 % 40.7 % 38.9 % 38.2 % Estimated residential high-speed data penetration (p) 28.6 % 27.8 % 26.6 % 26.2 % Estimated residential telephone penetration (q) 12.1 % 11.0 % 9.0 % 7.9 % (a) Basic video customers include all residential customers who receive video cable services. Also included are commercial or multi-dwelling accounts that are converted to equivalent basic units, which are referred to as EBUs, by dividing the total bulk billed basic revenues of a particular system by the most prevalent retail rate paid by non-bulk basic customers in that market for a comparable level of service. The EBU calculation method is consistent with methodology used in determining costs paid to programmers. (b) Digital video customers include all basic video customers that have one or more digital set-top boxes or cable cards deployed. (c) Residential high-speed data customers include all residential customers who subscribe to our high-speed data service. Excluded from these totals are all commercial high-speed data customers, including small and medium sized commercial cable modem accounts and customers who take our scalable, fiber-based enterprise network services. (d) Residential telephone customers include all residential customers who subscribe to our telephone service. Residential customers who take multiple telephone lines are only counted once in the total. Excluded from these totals are all commercial telephone customers. (e) Total RGUs represents the sum of basic video, digital video, residential high-speed data and residential telephone customers. (f) Pro forma average revenue per basic video customer represents the pro forma total revenue for a quarter, divided by three, divided by the average basic video customers for the quarter. (g) Customer relationships represent the number of residential customers who receive at least one level of service, encompassing video, high-speed data or telephone services, without regard to the number of services purchased. For example, a residential customer who purchases only high-speed data service and no video service will count as one customer relationship, and a residential customer who purchases both video and high-speed data services will also count as only one customer relationship. (h) Double play customer numbers reflect residential customers who subscribe to two of our core services (video, high-speed data and telephone). (i) Double play penetration represents double play customers as a percentage of customer relationships. (j) Triple play customer numbers reflect residential customers who subscribe to all three of our core services (video, high-speed data and telephone). (k) Triple play penetration represents triple play customers as a percentage of customer relationships. (l) Total bundled customers represents the sum of double play and triple play customers. (m) Bundled penetration represents total bundled customers as a percentage of customer relationships. (n) Estimated basic penetration is calculated as basic video customers divided by the estimated total homes passed of the Company. (o) Estimated digital penetration is calculated as digital video customers divided by basic video customers. (p) Estimated residential high-speed data penetration is calculated as residential high-speed data customers divided by the estimated homes passed of the Company where residential high-speed data service is currently available. (q) Estimated residential telephone penetration is calculated as residential telephone customers divided by the estimated homes passed of the Company where residential telephone service is currently available. (r) Pro forma to exclude the impact of the disposition during 2008 of three small non-strategic cable systems and to include the acquisition of CoStreet Communications, which occurred on October 15, 2008, as if those transactions had been consummated on January 1, 2008. TABLE 7 Cequel Communications Holdings I, LLC Free Cash Flow (unaudited) (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Adjusted EBITDA $ 139,020 $ 125,115 $ 410,228 $ 358,804 Capital expenditures (54,884 ) (52,342 ) (163,293 ) (177,985 ) Cash interest expense (59,219 ) (54,284 ) (162,020 ) (160,621 ) Free Cash Flow $ 24,917 $ 18,489 $ 84,915 $ 20,198 TABLE 8 Cequel Communications Holdings I, LLC Reconciliation of EBITDA and Adjusted EBITDA (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Net Loss $ (7,731 ) $ (17,370 ) $ (24,290 ) $ (65,314 ) Add back: Interest expense, net 62,066 64,985 181,412 194,246 Provision for income taxes 4,023 975 5,087 2,925 Depreciation and amortization 79,003 75,107 242,785 220,755 EBITDA 137,361 123,697 404,994 352,612 Non-cash share based compensation 1,836 1,726 5,467 5,012 (Gain)/loss on sale of cable assets (177 ) (308 ) (233 ) 1,180 Adjusted EBITDA $ 139,020 $ 125,115 $ 410,228 $ 358,804 TABLE 9 Cequel Communications Holdings I, LLC Reconciliation of Free Cash Flow (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Net cash provided by operating activities $ 81,759 $ 63,231 $ 273,822 $ 199,686 Capital expenditures (54,884 ) (52,342 ) (163,293 ) (177,985 ) Current income tax expense 2,293 525 2,400 1,575 Interest income (273 ) (1,044 ) (468 ) (3,184 ) Changes in assets and liabilities, net (3,978 ) 8,119 (27,546 ) 106 Free Cash Flow $ 24,917 $ 18,489 $ 84,915 $ 20,198 TABLE 10 Cequel Communications Holdings I, LLC Reconciliation of Cash Interest Expense (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Interest expense, net $ 62,066 $ 64,985 $ 181,412 $ 194,246 Add: interest income 273 1,044 468 3,184 Less: deferred financing amortization (3,120 ) (2,384 ) (8,870 ) (7,153 ) Less: non-cash paid-in kind interest expense - (9,361 ) (10,990 ) (29,656 ) Cash interest expense $ 59,219 $ 54,284 $ 162,020 $ 160,621 |
