[February 27, 2018] |
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Altice USA Reports Full Year and Fourth Quarter 2017 Results
Altice USA (NYSE: ATUS) today reported results for the full year
and quarter ended December 31, 20171
Dexter Goei, Altice USA Chairman and Chief Executive Officer, said: "2017
was a transformational year for Altice USA. We continued to have
great momentum and delivered strong financial results by growing our
customer base, revenues and margins with high free cash flow growth. We
have made significant investments in our customer experience as well as
strategic decisions to improve our products and services. This includes
expanding the availability of ultra-fast broadband speeds, launching our
new integrated entertainment platform Altice One, expanding our content
line-up, commencing the rollout of a state-of-the-art fiber (FTTH)
network, signing a full MVNO agreement to be able to launch mobile
services for our customers and investing in a multiscreen addressable
and national advertising platform. In 2018 and beyond, we will remain
very focused on investing for growth in innovation, superior service and
an advanced network to deliver a more robust and differentiated product
portfolio to meet customers' needs."
Altice USA Key Financial Highlights
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Revenue growth of +3.2% YoY in FY 2017 (excluding Newsday); reported
revenue growth of +1.9% YoY to $9.33 billion
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In Q4, reported revenue grew +2.6% YoY to $2.37 billion, driven by
residential (B2C) revenue growth of 1.8%, business services (B2B)
revenue growth of 5.1% and advertising revenue growth of 9.9%
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Adjusted EBITDA grew +19.5% YoY in FY 2017 to $4.01 billion; Adjusted
EBITDA (excluding Newsday) margin increased 5.9 percentage points YoY
to 42.9% (44.1% in Q4 2017)
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Operating Free Cash Flow2 grew +25.8% YoY in FY 2017 to
$3.01 billion with an OpFCF margin of 32.3% vs. 26.5% in FY 2016
(OpFCF margin of 34.5% in Q4 2017) showing very strong cash flow
conversion
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Three Months Ended December 31,
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Twelve Months Ended December 31,
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($k)
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2017
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2016
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2017
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2016
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Actual
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Actual
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Actual
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Actual
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Revenue
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2,365,378
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2,305,901
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9,326,570
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6,017,212
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Adjusted EBITDA3
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1,043,337
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929,608
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4,005,690
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2,414,735
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Net income (loss)4
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2,254,682
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(236,049)
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1,521,618
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(831,479)
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Capital Expenditures (cash)
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228,066
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247,815
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991,364
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625,541
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Altice USA Operational Highlights
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Residential (B2C) revenue growth of +2.9% in FY 2017 driven by growth
in total unique residential (B2C) customer relationships with net
additions of +7k in FY 2017 (+6k in Q4 2017)
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Residential (B2C) ARPU increased 2.2% YoY to $139.8 in FY 2017 (+1.5%
YoY in Q4 2017 to $140.2)
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Residential (B2C) broadband net additions of +25k, pay TV RGU net
losses of -25k, and telephony net additions of +10k in Q4 2017 (vs.
+36k, -21k, and -4k in Q4 2016 respectively)
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Solid Business Services (B2B) revenue growth of +5.5% in FY 2017
driven by superior SMB growth +7.5% YoY with SMB representing c.64% of
total B2B revenue (Enterprise & Carrier revenue, representing c.36% of
total B2B revenue, grew +2.3% in FY 2017)
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Advertising growth supported by investment in multiscreen and national
targeted audience capabilities
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Continued enhancement of data services with an increased demand for
higher speed tiers; 90% of B2C broadband gross additions taking
download speeds of 100Mbps or higher at end of Q4
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Up to 400Mbps broadband speeds were available for 86% of Altice USA
residential/business customers by the end of 2017, including 95% of
the Optimum footprint, with 72% of the Suddenlink footprint now able
to receive up to 1 Gigabit speeds
Altice USA 2018 and Medium-Term Financial
Outlook
For the full year 2018 Altice USA expects:
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Revenue growth c.2.5-3.0% YoY
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To increase investment for the continued rollout of Altice One, fiber
(FTTH) deployment, and new MVNO network investment keeping with annual
capex ~$1.3bn
Altice USA also reiterates its plan to expand its Adjusted EBITDA and
cash flow margins over the medium- to long-term.
Additional Q4 2017 Highlights
Product and Service Enhancements and Innovations The
Altice One service, the company's connectivity and entertainment
platform, became available across the full Optimum footprint in January
2018 with integrated access to Netflix. Altice One combines the latest
video, internet and connectivity technologies into one immersive
experience as we make it simpler for our customers to find video content
they want to watch and access their on-demand subscriptions such as
Netflix in one place. The commercial launch of Altice One is expected
across the Suddenlink footprint during the second and third quarters of
2018.
In November 2017, Altice USA opened its first customer experience center
at the Westfield Garden State Plaza Mall in Paramus, New Jersey and in
February opened its second location at the Westfield South Shore Mall in
Bay Shore, NY. These next-generation retail stores provide consumers an
opportunity to interact firsthand with the Company's Optimum-branded
digital cable television, high-speed Internet, WiFi and voice services,
as well as purchase third-party merchandise. The Optimum Experience
Centers are changing the way we interact with our customers and the way
they interact with us by providing a more personal, in-store experience
that showcases the many ways we enable seamless connectivity.
Altice USA also unveiled an enhanced portfolio of international TV
packages to provide customers with even more high-quality and
in-language programming options to meet their content needs. These
include Spanish, French and Russian-language TV packages for Optimum and
Suddenlink customers.
Partnerships On November 5, 2017, Altice USA and
Sprint announced a new multi-year strategic agreement under which Altice
USA will utilize Sprint's network to provide mobile voice and data
services to its customers throughout the nation. In this agreement, the
first of its kind, Sprint will provide Altice USA with access to its
full MVNO model, allowing Altice USA to connect its network to the
Sprint Nationwide network and have control over the Altice USA mobile
features, functionality, and customer experience. We are moving forward
with our plans with Sprint, developing the core network in 2018, and
expect to commercially launch a mobile service for Altice USA customers
by 2019.
i24NEWS, which launched in the U.S. in February 2017, expanded its
carriage relationships in the fourth quarter with the launch of the
network on Charter Communications. i24NEWS is now available on Altice
USA's Optimum and Suddenlink systems, Mediacom systems (launched in Q3)
and Charter's Spectrum systems. With global headquarters in Tel Aviv,
European headquarters in Paris, and U.S. headquarters in New York City,
i24NEWS is the only 24/7 international news and current affairs channel
broadcasting from the heart of the Middle East. It is available in
millions of households worldwide, and offers live news reports daily to
viewers, providing a unique and connected international news
organization in the marketplace.
On December 13, 2017 Altice USA, Charter Communications and Comcast
Cable announced a preliminary agreement to form a new Interconnect in
the New York market that will provide a one-stop advertising solution to
reach more than 6.2 million households across the New York DMA. For
marketers, agencies and advertisers, the new Interconnect will provide
an enhanced way to strategically reach audiences across TV and digital
platforms.
Network Investments to Enhance Broadband Speeds and Reliability Altice
USA's fiber-to-the-home (FTTH) deployment continues to progress well
with construction to connect several hundred thousand homes in New York,
New Jersey and Connecticut underway. The fiber network build is expected
to accelerate in 2018 with the first commercialization of FTTH services
later this year. Altice USA's FTTH network will benefit customers by
enabling for a more connected home, and by delivering faster speeds and
a high-quality service experience.
Altice USA also continues to roll out enhanced data services to its
customers on its existing hybrid fiber coax (DOCSIS) cable network and
an increasing number of consumers are selecting increased broadband
speeds:
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Up to 400Mbps broadband speeds were available for 86% of Altice USA
residential/business customers by the end of 2017 including 95% of the
Optimum footprint (increased significantly from a maximum speed for
Optimum customers of 101Mbps when Altice took over the business);
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Altice USA continues to see an increasing number of customers
upgrading their speed tiers with 90% of residential broadband gross
additions taking download speed tiers of 100Mbps or higher at the end
of Q4 2017 (61% of the residential customer base now take speeds of
100Mbps or higher, increased from just 21% at the end of Q4 2016);
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Up to 1 Gigabit speeds were available for 29% of Altice USA's
customers by the end of 2017, representing 72% of the Suddenlink
footprint where the Company continues to expand the availability of
this service (increased from c.40% prior to the Suddenlink
acquisition);
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These upgrades have allowed us to meet customer demand for higher
broadband speeds with the average broadband speed taken by Altice
USA's customer base more than doubling to 128Mbps at the end of Q4
2017 (from 64Mbps at the end of Q4 2016) with average data usage per
customer reaching over 200GB as of the end of 2017 as customers are
using our broadband services more and more.
Programming Altice USA is focused on providing the
highest quality video and service experience to our customers at a great
value, and these arrangements ensure that Altice USA's customers will
continue to receive the programming they want at a competitive cost.
Most recently on February 13, 2018, Altice USA and Starz announced a new
multi-year affiliation agreement, securing rights for Altice USA to
offer the full suite of STARZ and STARZ ENCORE premium linear and HD
channels, On-Demand, HD On-Demand and online services across the Optimum
and Suddenlink cable systems. The agreement also allows for Altice USA
to sell the STARZ App to their customers on the new Altice One
entertainment service, as well as broader digital rights including TV
Everywhere.
This agreement with Starz follows the recent comprehensive distribution
agreement to deliver Disney's lineup of sports, news and entertainment
content to Optimum video customers across television and streaming
devices reached on October 5, 2017.
Altice USA Spin-Off On January 8, 2018 Altice N.V.
("Altice NV", Euronext: ATC, ATCB), the majority shareholder of Altice
USA, announced that its Board of Directors had approved plans for the
separation of Altice USA from Altice NV (which will be renamed "Altice
Europe"). The separation will enable each business to focus more on the
distinct opportunities for value creation in their respective markets
and ensure greater transparency for investors. The proposed transaction
is designed to create simplified, independent and more focused US and
European operations to the benefit of their respective customers,
employees, investors and other stakeholders. The separation also further
clarifies the prioritization of capital allocation between the US and
European operations and ensures that US capital structure and capital
allocation decisions are independent of any Europe-related
considerations.
The separation is to be effected by a spin-off of Altice NV's 67.2%
interest in Altice USA through a distribution in kind to Altice NV
shareholders5. Altice NV aims to complete the proposed
transaction by the end of the second quarter 2018 following regulatory
and Altice NV shareholder approvals.
Following this proposed transaction, the two companies will be led by
separate management teams. Dexter Goei will continue to serve as CEO and
a Director of Altice USA. Patrick Drahi, founder of Altice, will retain
control of both companies and is committed to long-term ownership.
Post-separation, Mr. Drahi will serve as Chairman of the Board of Altice
USA.
Simultaneously, the Board of Directors of Altice USA approved in
principle the payment of a $1.5 billion cash dividend to all
shareholders immediately prior to completion of the separation. Formal
approval of the dividend and setting of a record date are expected to
occur in the second quarter of 2018. The payment of the dividend will be
funded with new financing at Optimum which was raised in January 2018
and available Optimum revolving facility capacity. In addition, the
Board of Directors of Altice USA has authorized a share repurchase
program of $2 billion, effective following completion of the separation.
Following the announcement of the spin-off of Altice USA, Altice NV's
ownership of Altice Technical Services US has been transferred to Altice
USA for a nominal consideration as previously announced.
Financial and Operational Review
For quarter ended December 31, 2017 compared to quarter ended
December 31, 2016
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Reported revenue growth for Altice USA of +2.6% YoY in Q4 2017 to
$2,365m:
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Optimum revenue growth+2.8% YoY
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Suddenlink revenue growth +2.4% YoY
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Adjusted EBITDA for Altice USA grew +12.2% YoY in Q4 2017 to $1,043m;
Adjusted EBITDA margin increased 3.8 percentage points YoY to 44.1%
(vs. 40.3% in Q4 2016):
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Optimum Adjusted EBITDA growth of +17.8% YoY; Adjusted EBITDA
margin increased +5.5 percentage points YoY to 43.2% due to
realisation of efficiency savings (vs. 37.7% in Q4 2016);
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Suddenlink Adjusted EBITDA growth +1.1% YoY; Adjusted EBITDA
margin decreased -0.6 percentage points YoY to 46.1% mainly due to
higher content expense from adding back Viacom content in Q4 2017
(vs. 46.7% in Q4 2016).
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Cash capex for Altice USA was $228m in Q4 2017 representing 9.6% of
revenue.
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OpFCF for Altice USA grew +19.6% YoY in Q4 2017 to $815m:
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Optimum OpFCF growth +20.4% YoY;
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Suddenlink OpFCF growth +17.8% YoY.
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Altice USA saw total unique residential B2C customer relationship net
additions of +6k in Q4 2017, including broadband RGU additions of
+25k, -25k pay TV RGU losses and +10k telephony RGU additions (vs.
+18k, +36k, -21k, -4k in Q4 2016 respectively). Altice USA ARPU per
unique customer grew +1.5% in Q4 2017 to $140.2:
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Optimum's base of unique residential B2C customer relationships
grew +6k net additions in Q4, in line with last year, including
broadband RGU additions of +17k, -19k pay TV RGU losses and +6k
telephony RGU additions (compared to Q4 2016 with +6k unique
customer additions, +15k broadband RGUs additions, -15k pay TV RGU
losses and -7k telephony RGU losses). Altice USA continues to have
a strong competitive position in the Optimum footprint, enhanced
with the recent full commercial launch of Altice One. Increased
demand for higher speed broadband tiers at Optimum continues to
drive growth in residential ARPU per unique customer (+0.9% YoY).
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Suddenlink unique residential B2C customer relationship net losses
of -1k in Q4 2017 compared to +13k additions in Q4 2016, mainly
due to the slowdown in broadband RGU growth observed since Q3 with
similar quarterly additions of +8k in Q4 2017 (vs. broadband RGUs
of 9k in Q3 2017 and +20k in Q4 2016). Suddenlink's bundle
offerings have been rationalized and streamlined, as well as
introducing more localized pricing and adding back Viacom content
by the end of 2017. Together with the full commercial launch of
Altice One at Suddenlink expected across Q2 / Q3 2018, these new
offers are expected to contribute to improved customer metrics
later this year. Pay TV RGU losses of -6k and telephony RGU
additions of +4k were in line YoY (vs. -6k and +3k in Q4 2016
respectively). Increased demand for higher speed broadband tiers
at Suddenlink continues to drive growth in residential ARPU per
unique customer (+3.0% YoY).
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Altice USA's Business Services (B2B) revenue increased 5.1% YoY in Q4
mainly due to growth in SMB +6.0% YoY with Enterprise & Carrier
revenue increasing +3.5% YoY. Optimum had 263k and Suddenlink had 109k
SMB customers as of the end of 2017.
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Altice USA's advertising revenue increased 9.9% YoY in Q4 primarily
due to an increase in digital advertising revenue and an increase in
data and analytics revenue, partially offset by a decrease in
political advertising. During Q4, Altice USA's internal and
customer-facing marketing capabilities have been reorganized into a
single unit within its advertising business to drive synergies (Altice
Media and Data Solutions). Following the acquisitions of Audience
Partners and Place Media, Altice USA can now reach all US internet
households with targeted digital advertising and 100m+ TV households
with targeted video advertising.
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Altice USA's programming costs increased +4.7% YoY in Q4 2017 (+3.3%
in FY 2017) due primarily to an increase in contractual programming
rates, partially offset by the decrease in video customers. Since the
acquisitions of Suddenlink and Optimum, Altice USA has now
successfully renewed programming contracts representing over 70% of
its annual programming expense. We continue to expect programming
costs per customer to increase by high single digits going forward:
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Optimum's programming costs increased +3.3% YoY in Q4 2017 to
$476m;
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Suddenlink's programming costs increased +8.8% YoY in Q4 2017 to
$160m.
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Altice USA has seen significant and rapid deleveraging at both Optimum
and Suddenlink since the completion of their respective acquisitions
as a result of underlying growth and improved cash flow generation.
Altice USA reduced its target leverage range of 4.5-5.0x net debt to
EBITDA in conjunction with the announcement of the spin-off from
Altice NV. Net debt for Altice USA at the end of the fourth quarter
was $20,743m, a reduction of $447m from the end of the third quarter6.
This represents consolidated LTM net leverage for Altice USA of 5.1x
on a reported basis at the end of December 2017. Net leverage for
Optimum was 5.1x and for Suddenlink was 5.3x at the end of December
2017 on LTM basis.
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Pro forma for the new financing at Optimum to fund the special cash
dividend that is expected to be paid prior to completion of the
spin-off of Altice USA from Altice NV and other refinancing in January
2018, Altice USA's blended weighted average cost of debt was 6.2%
(6.6% for Optimum, 5.5% for Suddenlink) and the blended weighted
average life was 6.3 years at the end of December 2017.
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Altice USA Consolidated Operating Results
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(Dollars in thousands, except per share data)
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Three Months Ended December 31,
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Twelve Months Ended December 31,
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2017
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2016
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2017
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2016
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2016
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Actual
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Actual
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Actual
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Pro Forma1
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Actual
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Revenue:
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Pay TV
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$
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1,029,135
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$
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1,058,930
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$
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4,214,745
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$
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4,227,221
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$
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2,759,216
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Broadband
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676,493
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597,960
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2,563,772
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2,290,040
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1,617,029
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Telephony
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199,904
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214,836
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823,981
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872,115
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529,973
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Business services and wholesale
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330,526
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314,578
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1,298,817
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1,230,643
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819,541
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Advertising
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121,712
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110,764
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391,866
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377,468
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257,741
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Other
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7,608
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8,833
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33,389
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157,329
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33,712
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Total revenue
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2,365,378
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2,305,901
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9,326,570
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9,154,816
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6,017,212
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Operating expenses:
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Programming and other direct costs
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763,508
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733,422
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3,035,655
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2,999,785
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1,911,230
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Other operating expenses
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575,031
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655,569
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2,342,655
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2,842,585
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1,705,615
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Restructuring and other expense
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9,636
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85,309
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152,401
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229,774
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240,395
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Depreciation and amortization
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791,699
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614,377
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2,930,475
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2,484,284
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1,700,306
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Operating income
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225,504
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217,224
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865,384
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598,388
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459,666
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Other income (expense):
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Interest expense, net
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(369,854)
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(439,651)
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(1,601,211)
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(1,760,421)
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(1,442,730)
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Gain on investments, net
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67,466
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58,429
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237,354
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271,886
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141,896
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Loss on derivative contracts, net
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(82,060)
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(27,124)
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(236,330)
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(89,979)
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(53,696)
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Gain (loss) on interest rate swap contracts
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(7,057)
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(97,341)
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5,482
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(72,961)
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(72,961)
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Loss on extinguishment of debt and write-off of deferred financing
costs
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-
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(107,701)
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(600,240)
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(127,649)
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(127,649)
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Other income (expense), net
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(2,620)
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1,781
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|
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(1,788)
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9,184
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4,329
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Loss before income taxes
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(168,621)
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(394,383)
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(1,331,349)
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|
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(1,171,552)
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(1,091,145)
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Income tax benefit
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2,423,303
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158,334
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2,852,967
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450,295
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259,666
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Net income (loss)
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2,254,682
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(236,049)
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1,521,618
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(721,257)
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(831,479)
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Net income attributable to noncontrolling interests
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(850)
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(659)
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(1,587)
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(315)
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(551)
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Net income (loss) attributable to Altice USA stockholders
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$
|
2,253,832
|
|
|
$
|
(236,708)
|
|
|
$
|
1,520,031
|
|
|
$
|
(721,572)
|
|
|
$
|
(832,030)
|
Basic net income (loss) per share
|
|
|
|
$
|
3.06
|
|
|
$
|
(0.36)
|
|
|
$
|
2.18
|
|
|
$
|
(1.11)
|
|
|
$
|
(1.28)
|
Basic weighted average common shares
|
|
|
|
|
737,069
|
|
|
|
649,525
|
|
|
|
696,055
|
|
|
|
649,525
|
|
|
|
649,525
|
Diluted net income (loss) per share
|
|
|
|
$
|
3.06
|
|
|
$
|
(0.36)
|
|
|
$
|
2.18
|
|
|
$
|
(1.11)
|
|
|
$
|
(1.28)
|
Diluted weighted average common shares
|
|
|
|
|
737,069
|
|
|
|
649,525
|
|
|
|
696,055
|
|
|
|
649,525
|
|
|
|
649,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Certain reclassifications have been made to the 2016 amounts to
conform to the 2017 presentation including Altice USA's data analytics
revenue being reported within Advertising.
Reconciliation of net loss to Adjusted EBITDA and Adjusted EBITDA
less Cash Capital Expenditures:
We define Adjusted EBITDA, which is a non-GAAP financial measure, as net
income (loss) excluding income taxes, income (loss) from discontinued
operations, other non-operating income or expenses, 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, interest expense (including cash
interest expense), interest income, depreciation and amortization
(including impairments), share-based compensation expense or benefit,
restructuring expense or credits and transaction expenses.
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 Adjusted EBITDA less cash Capital Expenditures, or Operating
Free Cash Flow, as an indicator of the Company's financial performance.
We believe this measure is one of several benchmarks used by investors,
analysts and peers for comparison of performance in the Company's
industry, although it may not be directly comparable to similar measures
reported by other companies.
|
Altice USA (Dollars in thousands, except per share data)
|
|
|
|
|
|
Altice USA
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
|
|
Actual
|
|
|
Actual
|
|
|
Actual
|
|
|
Pro Forma1
|
|
|
Actual
|
Net income (loss)
|
|
|
|
$
|
2,254,682
|
|
|
|
$
|
(236,049)
|
|
|
$
|
1,521,618
|
|
|
$
|
(721,257)
|
|
|
$
|
(831,479)
|
Income tax expense (benefit)
|
|
|
|
(2,423,303
|
)
|
|
|
(158,334)
|
|
|
(2,852,967)
|
|
|
(450,295)
|
|
|
(259,666)
|
Other expense (income), net
|
|
|
|
2,620
|
|
|
|
(1,781)
|
|
|
1,788
|
|
|
(9,184)
|
|
|
(4,329)
|
Loss (gain) on interest rate swap contracts
|
|
|
|
7,057
|
|
|
|
97,341
|
|
|
(5,482)
|
|
|
72,961
|
|
|
72,961
|
Loss on derivative contracts, net
|
|
|
|
82,060
|
|
|
|
27,124
|
|
|
236,330
|
|
|
89,979
|
|
|
53,696
|
Gain on investments, net
|
|
|
|
(67,466)
|
|
|
|
(58,429)
|
|
|
(237,354)
|
|
|
(271,886)
|
|
|
(141,896)
|
Loss on extinguishment of debt and write-off of deferred financing
costs
|
|
|
|
-
|
|
|
|
107,701
|
|
|
600,240
|
|
|
127,649
|
|
|
127,649
|
Interest expense, net
|
|
|
|
369,854
|
|
|
|
439,651
|
|
|
1,601,211
|
|
|
1,760,421
|
|
|
1,442,730
|
Depreciation and amortization
|
|
|
|
791,699
|
|
|
|
614,377
|
|
|
2,930,475
|
|
|
2,484,284
|
|
|
1,700,306
|
Restructuring and other expenses
|
|
|
|
9,636
|
|
|
|
85,309
|
|
|
152,401
|
|
|
229,774
|
|
|
240,395
|
Share-based compensation
|
|
|
|
16,498
|
|
|
|
12,698
|
|
|
57,430
|
|
|
39,599
|
|
|
14,368
|
Adjusted EBITDA
|
|
|
|
$
|
1,043,337
|
|
|
|
$
|
929,608
|
|
|
$
|
4,005,690
|
|
|
$
|
3,352,045
|
|
|
$
|
2,414,735
|
Capital Expenditures (accrued)
|
|
|
|
|
362,972
|
|
|
|
|
319,916
|
|
|
|
1,044,305
|
|
|
|
1,035,542
|
|
|
|
700,679
|
Adjusted EBITDA less Capex (accrued)
|
|
|
|
$
|
680,365
|
|
|
|
$
|
609,692
|
|
|
$
|
2,961,385
|
|
|
$
|
2,316,503
|
|
|
$
|
1,714,056
|
Capital Expenditures (cash)
|
|
|
|
$
|
228,066
|
|
|
|
$
|
247,815
|
|
|
$
|
991,364
|
|
|
$
|
955,672
|
|
|
$
|
625,541
|
Adjusted EBITDA less Capex (cash)
|
|
|
|
$
|
815,271
|
|
|
|
$
|
681,793
|
|
|
$
|
3,014,326
|
|
|
$
|
2,396,373
|
|
|
$
|
1,789,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cablevision (Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cablevision
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
|
|
Actual
|
|
|
Actual
|
|
|
Actual
|
|
|
Pro Forma1
|
|
|
Actual
|
Operating income
|
|
|
|
$
|
100,396
|
|
|
$
|
94,607
|
|
|
$
|
345,063
|
|
|
$
|
213,587
|
|
|
$
|
74,865
|
Depreciation and amortization
|
|
|
|
|
610,137
|
|
|
|
437,608
|
|
|
|
2,251,614
|
|
|
|
1,747,643
|
|
|
|
963,665
|
Restructuring and other expenses
|
|
|
|
7,202
|
|
|
80,650
|
|
|
112,384
|
|
|
201,529
|
|
|
212,150
|
Share-based compensation
|
|
|
|
13,463
|
|
|
8,073
|
|
|
42,060
|
|
|
34,395
|
|
|
9,164
|
Adjusted EBITDA
|
|
|
|
$
|
731,198
|
|
|
$
|
620,938
|
|
|
$
|
2,751,121
|
|
|
$
|
2,197,154
|
|
|
$
|
1,259,844
|
Capital Expenditures (accrued)
|
|
|
|
|
254,028
|
|
|
|
204,427
|
|
|
|
724,130
|
|
|
|
683,715
|
|
|
|
348,852
|
Adjusted EBITDA less Capex (accrued)
|
|
|
|
$
|
477,170
|
|
|
$
|
416,511
|
|
|
$
|
2,026,991
|
|
|
$
|
1,513,439
|
|
|
$
|
910,992
|
Capital Expenditures (cash)
|
|
|
|
$
|
161,201
|
|
|
$
|
147,392
|
|
|
$
|
711,432
|
|
|
$
|
628,488
|
|
|
$
|
298,357
|
Adjusted EBITDA less Capex (cash)
|
|
|
|
$
|
569,997
|
|
|
$
|
473,546
|
|
|
$
|
2,039,689
|
|
|
$
|
1,568,666
|
|
|
$
|
961,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Suddenlink (Dollars in thousands, except per share data)
|
|
|
|
|
|
Suddenlink
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
Actual
|
|
|
Actual
|
|
|
Actual
|
|
|
Actual
|
Operating income
|
|
|
|
$
|
125,108
|
|
|
|
$
|
110,226
|
|
|
$
|
520,321
|
|
|
$
|
384,801
|
Depreciation and amortization
|
|
|
|
|
181,562
|
|
|
|
|
176,769
|
|
|
|
678,861
|
|
|
|
736,641
|
Restructuring and other expenses
|
|
|
|
2,434
|
|
|
|
17,050
|
|
|
40,017
|
|
|
28,245
|
Share-based compensation
|
|
|
|
3,035
|
|
|
|
4,625
|
|
|
15,370
|
|
|
5,204
|
Adjusted EBITDA
|
|
|
|
$
|
312,139
|
|
|
|
$
|
308,670
|
|
|
$
|
1,254,569
|
|
|
$
|
1,154,891
|
Capital Expenditures (accrued)
|
|
|
|
|
108,944
|
|
|
|
|
115,489
|
|
|
|
320,175
|
|
|
|
351,827
|
Adjusted EBITDA less Capex (accrued)
|
|
|
|
$
|
203,195
|
|
|
|
$
|
193,181
|
|
|
$
|
934,394
|
|
|
$
|
803,064
|
Capital Expenditures (cash)
|
|
|
|
$
|
66,865
|
|
|
|
$
|
100,423
|
|
|
$
|
279,932
|
|
|
$
|
327,184
|
Adjusted EBITDA less Capex (cash)
|
|
|
|
$
|
245,274
|
|
|
|
$
|
208,247
|
|
|
$
|
974,637
|
|
|
$
|
827,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is the contribution from Newsday Media Group:
|
|
|
|
Altice USA ($m)
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
2016
|
|
|
2016
|
Pro Forma Revenue
|
|
|
|
$
|
2,305.9
|
|
|
$
|
9,154.8
|
Less Newsday
|
|
|
|
|
0.0
|
|
|
|
115.4
|
Pro Forma Excluding Newsday
|
|
|
|
$
|
2,305.9
|
|
|
$
|
9,039.4
|
|
|
|
|
|
|
|
|
|
|
The following table sets forth certain customer metrics by segment
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Altice USA Customer Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In thousands
|
|
|
|
FY-15
|
|
|
Q1-16
|
|
|
Q2-16
|
|
|
Q3-16
|
|
|
Q4-16
|
|
|
FY-16
|
|
|
Q1-17
|
|
|
Q2-17
|
|
|
Q3-17
|
|
|
Q4-17
|
|
|
FY-17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes Passed (1)
|
|
|
|
8,428.1
|
|
|
8,447.9
|
|
|
8,467.6
|
|
|
8,493.7
|
|
|
8,523.6
|
|
|
8,523.6
|
|
|
8,547.2
|
|
|
8,570.1
|
|
|
8,577.2
|
|
|
8,620.9
|
|
|
8,620.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential (B2C)
|
|
|
|
4,475.5
|
|
|
4,504.5
|
|
|
4,510.3
|
|
|
4,509.7
|
|
|
4,528.2
|
|
|
4,528.2
|
|
|
4,548.4
|
|
|
4,536.9
|
|
|
4,529.0
|
|
|
4,535.0
|
|
|
4,535.0
|
SMB (B2B)
|
|
|
|
351.7
|
|
|
354.1
|
|
|
358.7
|
|
|
361.0
|
|
|
363.6
|
|
|
363.6
|
|
|
364.7
|
|
|
367.3
|
|
|
369.1
|
|
|
371.3
|
|
|
371.3
|
Total Unique Customer Relationships (2)
|
|
|
|
4,827.2
|
|
|
4,858.6
|
|
|
4,869.0
|
|
|
4,870.7
|
|
|
4,891.8
|
|
|
4,891.8
|
|
|
4,913.1
|
|
|
4,904.3
|
|
|
4,898.1
|
|
|
4,906.3
|
|
|
4,906.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pay TV
|
|
|
|
3,640.4
|
|
|
3,622.9
|
|
|
3,596.0
|
|
|
3,555.9
|
|
|
3,534.5
|
|
|
3,534.5
|
|
|
3,499.8
|
|
|
3,462.7
|
|
|
3,430.2
|
|
|
3,405.5
|
|
|
3,405.5
|
Broadband
|
|
|
|
3,838.2
|
|
|
3,888.1
|
|
|
3,909.4
|
|
|
3,926.9
|
|
|
3,962.5
|
|
|
3,962.5
|
|
|
4,002.8
|
|
|
4,004.4
|
|
|
4,020.9
|
|
|
4,046.2
|
|
|
4,046.2
|
Telephony
|
|
|
|
2,588.3
|
|
|
2,595.6
|
|
|
2,589.7
|
|
|
2,562.6
|
|
|
2,559.0
|
|
|
2,559.0
|
|
|
2,551.0
|
|
|
2,543.8
|
|
|
2,547.2
|
|
|
2,557.4
|
|
|
2,557.4
|
Total B2C RGUs
|
|
|
|
10,066.9
|
|
|
10,106.6
|
|
|
10,095.1
|
|
|
10,045.4
|
|
|
10,056.1
|
|
|
10,056.1
|
|
|
10,053.6
|
|
|
10,010.9
|
|
|
9,998.3
|
|
|
10,009.1
|
|
|
10,009.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B2C ARPU ($) (3)
|
|
|
|
134.2
|
|
|
135.3
|
|
|
136.7
|
|
|
136.5
|
|
|
138.1
|
|
|
136.8
|
|
|
139.1
|
|
|
139.3
|
|
|
140.1
|
|
|
140.2
|
|
|
139.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Optimum Customer Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In thousands
|
|
|
|
FY-15
|
|
|
Q1-16
|
|
|
Q2-16
|
|
|
Q3-16
|
|
|
Q4-16
|
|
|
FY-16
|
|
|
Q1-17
|
|
|
Q2-17
|
|
|
Q3-17
|
|
|
Q4-17
|
|
|
FY-17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes Passed (1)
|
|
|
|
5,075.9
|
|
|
5,085.6
|
|
|
5,093.6
|
|
|
5,105.2
|
|
|
5,116.2
|
|
|
5,116.2
|
|
|
5,128.4
|
|
|
5,139.7
|
|
|
5,134.4
|
|
|
5,163.9
|
|
|
5,163.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential (B2C)
|
|
|
|
2,857.5
|
|
|
2,866.4
|
|
|
2,882.4
|
|
|
2,873.4
|
|
|
2,879.1
|
|
|
2,879.1
|
|
|
2,886.9
|
|
|
2,889.1
|
|
|
2,887.0
|
|
|
2,893.4
|
|
|
2,893.4
|
SMB (B2B)
|
|
|
|
258.0
|
|
|
258.2
|
|
|
260.7
|
|
|
261.2
|
|
|
262.0
|
|
|
262.0
|
|
|
261.2
|
|
|
261.8
|
|
|
261.9
|
|
|
262.6
|
|
|
262.6
|
Total Unique Customer Relationships (2)
|
|
|
|
3,115.5
|
|
|
3,124.6
|
|
|
3,143.1
|
|
|
3,134.6
|
|
|
3,141.1
|
|
|
3,141.1
|
|
|
3,148.2
|
|
|
3,150.9
|
|
|
3,148.9
|
|
|
3,156.0
|
|
|
3,156.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pay TV
|
|
|
|
2,486.5
|
|
|
2,472.6
|
|
|
2,470.2
|
|
|
2,442.8
|
|
|
2,427.8
|
|
|
2,427.8
|
|
|
2,412.8
|
|
|
2,400.9
|
|
|
2,382.2
|
|
|
2,363.2
|
|
|
2,363.2
|
Broadband
|
|
|
|
2,561.9
|
|
|
2,580.2
|
|
|
2,603.6
|
|
|
2,603.4
|
|
|
2,618.9
|
|
|
2,618.9
|
|
|
2,636.4
|
|
|
2,646.0
|
|
|
2,653.1
|
|
|
2,670.0
|
|
|
2,670.0
|
Telephony
|
|
|
|
2,006.9
|
|
|
1,998.9
|
|
|
1,993.7
|
|
|
1,968.7
|
|
|
1,962.0
|
|
|
1,962.0
|
|
|
1,955.0
|
|
|
1,954.3
|
|
|
1,958.8
|
|
|
1,965.0
|
|
|
1,965.0
|
Total B2C RGUs
|
|
|
|
7,055.3
|
|
|
7,051.7
|
|
|
7,067.5
|
|
|
7,014.9
|
|
|
7,008.7
|
|
|
7,008.7
|
|
|
7,004.2
|
|
|
7,001.2
|
|
|
6,994.1
|
|
|
6,998.2
|
|
|
6,998.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B2C ARPU ($) (3)
|
|
|
|
151.4
|
|
|
152.2
|
|
|
153.5
|
|
|
152.6
|
|
|
154.5
|
|
|
153.4
|
|
|
155.8
|
|
|
156.0
|
|
|
156.9
|
|
|
155.8
|
|
|
156.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Suddenlink Customer Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In thousands
|
|
|
|
FY-15
|
|
|
Q1-16
|
|
|
Q2-16
|
|
|
Q3-16
|
|
|
Q4-16
|
|
|
FY-16
|
|
|
Q1-17
|
|
|
Q2-17
|
|
|
Q3-17
|
|
|
Q4-17
|
|
|
FY-17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes Passed (1)
|
|
|
|
3,352.2
|
|
|
3,362.2
|
|
|
3,374.0
|
|
|
3,388.5
|
|
|
3,407.4
|
|
|
3,407.4
|
|
|
3,418.7
|
|
|
3,430.4
|
|
|
3,442.8
|
|
|
3,457.1
|
|
|
3,457.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential (B2C)
|
|
|
|
1,618.0
|
|
|
1,638.1
|
|
|
1,628.0
|
|
|
1,636.3
|
|
|
1,649.1
|
|
|
1,649.1
|
|
|
1,661.5
|
|
|
1,647.8
|
|
|
1,642.0
|
|
|
1,641.5
|
|
|
1,641.5
|
SMB (B2B)
|
|
|
|
93.7
|
|
|
95.9
|
|
|
98.0
|
|
|
99.8
|
|
|
101.6
|
|
|
101.6
|
|
|
103.4
|
|
|
105.5
|
|
|
107.2
|
|
|
108.7
|
|
|
108.7
|
Total Unique Customer Relationships (2)
|
|
|
|
1,711.7
|
|
|
1,734.0
|
|
|
1,725.9
|
|
|
1,736.1
|
|
|
1,750.7
|
|
|
1,750.7
|
|
|
1,764.9
|
|
|
1,753.3
|
|
|
1,749.2
|
|
|
1,750.2
|
|
|
1,750.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pay TV
|
|
|
|
1,153.9
|
|
|
1,150.3
|
|
|
1,125.8
|
|
|
1,113.1
|
|
|
1,106.7
|
|
|
1,106.7
|
|
|
1,087.0
|
|
|
1,061.8
|
|
|
1,048.0
|
|
|
1,042.4
|
|
|
1,042.4
|
Broadband
|
|
|
|
1,276.3
|
|
|
1,307.9
|
|
|
1,305.9
|
|
|
1,323.5
|
|
|
1,343.7
|
|
|
1,343.7
|
|
|
1,366.5
|
|
|
1,358.4
|
|
|
1,367.8
|
|
|
1,376.2
|
|
|
1,376.2
|
Telephony
|
|
|
|
581.4
|
|
|
596.7
|
|
|
596.0
|
|
|
594.0
|
|
|
597.0
|
|
|
597.0
|
|
|
596.0
|
|
|
589.5
|
|
|
588.4
|
|
|
592.3
|
|
|
592.3
|
Total B2C RGUs
|
|
|
|
3,011.6
|
|
|
3,054.9
|
|
|
3,027.6
|
|
|
3,030.5
|
|
|
3,047.4
|
|
|
3,047.4
|
|
|
3,049.4
|
|
|
3,009.7
|
|
|
3,004.2
|
|
|
3,010.9
|
|
|
3,010.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B2C ARPU ($) (3)
|
|
|
|
103.4
|
|
|
105.7
|
|
|
107.0
|
|
|
108.2
|
|
|
109.3
|
|
|
107.6
|
|
|
110.0
|
|
|
110.0
|
|
|
110.6
|
|
|
112.6
|
|
|
111.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
|
|
Homes passed represents the estimated number of single residence
homes, apartments and condominium units passed by the cable
distribution network in areas serviceable without further extending
the transmission lines. In addition, it includes commercial
establishments that have connected to our cable distribution
network. For Cequel, broadband services were not available to
approximately 100 homes passed and telephony services were not
available to approximately 500 homes passed.
|
|
|
|
|
2.
|
|
|
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. In calculating the number of customers, we count
all customers other than inactive/disconnected customers. 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.
|
|
|
|
|
3.
|
|
|
ARPU calculated by dividing the average monthly revenue for the
respective quarter or annual periods derived from the sale of
broadband, pay television and telephony services to residential
customers for the respective quarter by the average number of total
residential customers for the same period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net Debt as of December 31,
2017, breakdown by credit silo
|
|
|
|
|
|
|
|
|
|
|
|
Suddenlink (Cequel) - In $m
|
|
|
|
Actual
|
|
|
Coupon / Margin
|
|
|
Maturity
|
Sn. Sec. Notes
|
|
|
|
$1,100
|
|
|
5.375%
|
|
|
2023
|
Sn. Sec. Notes
|
|
|
|
1,500
|
|
|
5.500%
|
|
|
2026
|
Term Loan
|
|
|
|
1,259
|
|
|
L+2.250%
|
|
|
2025
|
Suddenlink Sec. Debt
|
|
|
|
3,859
|
|
|
|
|
|
|
Senior Notes due 2020
|
|
|
|
1,050
|
|
|
6.375%
|
|
|
2020
|
Senior Notes due 2021
|
|
|
|
1,250
|
|
|
5.125%
|
|
|
2021
|
Senior Notes/Holdco Exchange Notes
|
|
|
|
620
|
|
|
7.750%
|
|
|
2025
|
Other Debt & Leases7
|
|
|
|
7
|
|
|
|
|
|
|
Suddenlink Gross Debt
|
|
|
|
6,786
|
|
|
|
|
|
|
Total Cash
|
|
|
|
(82)
|
|
|
|
|
|
|
Suddenlink Net Debt
|
|
|
|
6,704
|
|
|
|
|
|
|
Undrawn RCF8
|
|
|
|
336
|
|
|
|
|
|
|
WACD (%)
|
|
|
|
5.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cablevision (Optimum) - in $m
|
|
|
|
Actual
|
|
|
Pro Forma
|
|
|
Coupon / Margin
|
|
|
Maturity
|
Guaranteed Notes - LLC
|
|
|
|
$1,310
|
|
|
$1,310
|
|
|
5.500%
|
|
|
2027
|
Guaranteed Notes Acq.- LLC
|
|
|
|
1,000
|
|
|
1,000
|
|
|
6.625%
|
|
|
2025
|
Guaranteed Notes
|
|
|
|
-
|
|
|
1,000
|
|
|
5.375%
|
|
|
2028
|
Senior Notes Acq. - LLC
|
|
|
|
1,800
|
|
|
1,800
|
|
|
10.125%
|
|
|
2023
|
Senior Notes Acq. - LLC
|
|
|
|
1,684
|
|
|
1,684
|
|
|
10.875%
|
|
|
2025
|
Senior Debentures - LLC
|
|
|
|
300
|
|
|
-
|
|
|
7.875%
|
|
|
2018
|
Senior Debentures - LLC
|
|
|
|
500
|
|
|
500
|
|
|
7.625%
|
|
|
2018
|
Senior Notes - LLC
|
|
|
|
526
|
|
|
526
|
|
|
8.625%
|
|
|
2019
|
Senior Notes - LLC
|
|
|
|
1,000
|
|
|
1,000
|
|
|
6.750%
|
|
|
2021
|
Senior Notes - LLC
|
|
|
|
750
|
|
|
750
|
|
|
5.250%
|
|
|
2024
|
Term Loan
|
|
|
|
2,985
|
|
|
2,985
|
|
|
L+2.250%
|
|
|
2025
|
Term Loan
|
|
|
|
-
|
|
|
1,500
|
|
|
L+2.50%
|
|
|
2026
|
Drawn RCF
|
|
|
|
450
|
|
|
500
|
|
|
L+3.250%
|
|
|
2021
|
Other Debt & Leases9
|
|
|
|
26
|
|
|
26
|
|
|
|
|
|
|
Cablevision Total Debt LLC
|
|
|
|
12,331
|
|
|
14,581
|
|
|
|
|
|
|
Senior Notes - Corp
|
|
|
|
750
|
|
|
-
|
|
|
7.750%
|
|
|
2018
|
Senior Notes - Corp
|
|
|
|
500
|
|
|
500
|
|
|
8.000%
|
|
|
2020
|
Senior Notes - Corp
|
|
|
|
649
|
|
|
649
|
|
|
5.875%
|
|
|
2022
|
Cablevision Total Debt Corp
|
|
|
|
14,230
|
|
|
15,730
|
|
|
|
|
|
|
Total Cash
|
|
|
|
(186)
|
|
|
(186)
|
|
|
|
|
|
|
Cablevision Net Debt
|
|
|
|
14,043
|
|
|
15,544
|
|
|
|
|
|
|
Undrawn RCF10
|
|
|
|
1,734
|
|
|
1,684
|
|
|
|
|
|
|
WACD (%)
|
|
|
|
|
|
|
6.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Altice USA Pro Forma Net Leverage
Reconciliation as of December 31, 2017
|
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In $m
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Altice USA
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Suddenlink
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Optimum
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Altice USA Inc
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Pro Forma
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Gross Debt Consolidated
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$6,786
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$15,730
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$-
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$22,516
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Cash
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(82)
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(186)
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(5)
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(273)
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Net Debt Consolidated
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6,704
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15,545
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(5)
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22,243
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LTM EBITDA GAAP11
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1,265
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2,771
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4,004
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L2QA EBITDA GAAP11
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1,259
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2,911
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4,170
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Net Leverage (LTM)
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5.3x
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5.6x
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5.5x
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Net Leverage (L2QA)
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5.3x
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5.3x
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5.3x
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WACD
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5.5%
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6.6%
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6.2%
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In $m
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Altice USA Reconciliation to Financial Reported Debt
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Actual
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Pro Forma
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Total Debenture and Loans from Financial Institutions
(Carrying Amount)12
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$20,504
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$20,504
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Unamortized Financing Costs
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293
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293
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Fair Value Adjustments
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186
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186
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Total Value of Debenture and Loans from Financial Institutions
(Principal Amount)12
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20,983
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20,983
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Other Debt & Capital Leases
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33
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33
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Refinancing Impact
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-
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1,500
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Gross Debt Consolidated
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21,016
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22,516
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Cash
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(273)
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(273)
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Net Debt Consolidated
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20,743
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22,243
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Cablevision Operating Results
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(Dollars in thousands, except per share data)
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Three Months Ended December 31,
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Twelve Months Ended December 31,
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2017
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2016
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2017
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2016
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2016
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Actual
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Actual
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Actual
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Pro Forma
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Actual
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Revenue:
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Pay TV
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$
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757,008
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$
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778,759
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$
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3,113,238
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$
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3,106,697
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$
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1,638,691
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Broadband
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425,284
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376,558
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1,603,015
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1,455,625
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782,615
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Telephony
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168,782
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177,752
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693,478
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718,176
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376,034
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Business services and wholesale
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232,993
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223,947
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923,161
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879,734
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468,632
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Advertising
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104,899
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85,869
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321,149
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289,097
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169,370
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Other
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2,280
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2,608
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10,747
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132,327
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8,710
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Total revenue
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1,691,246
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1,645,493
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6,664,788
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6,581,656
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3,444,052
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Operating expenses:
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Programming and other direct costs
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569,817
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548,065
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2,280,062
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2,253,480
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1,164,925
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Other operating expenses
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403,694
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484,563
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1,675,665
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2,165,417
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1,028,447
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Restructuring and other expense
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7,202
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80,650
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112,384
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201,529
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212,150
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Depreciation and amortization
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610,137
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437,608
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2,251,614
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1,747,643
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963,665
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Operating income
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$
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100,396
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$
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94,607
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$
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345,063
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$
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213,587
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$
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74,865
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Suddenlink Operating Results
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(Dollars in thousands, except per share data)
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Three Months Ended December 31,
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Twelve Months Ended December 31,
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2017
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2016
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2017
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2016
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Actual
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Actual
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Actual
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Actual
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Revenue:
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Pay TV
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$
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272,127
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$
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280,171
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$
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1,101,507
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$
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1,120,525
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Broadband
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251,209
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221,402
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960,757
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834,414
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Telephony
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31,122
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37,084
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130,503
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153,939
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Business services and wholesale
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97,533
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90,631
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375,656
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350,909
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Advertising
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19,125
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24,895
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73,509
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88,371
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Other
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5,328
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6,224
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22,642
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25,002
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Total revenue
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676,444
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660,407
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2,664,574
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2,573,160
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Operating expenses:
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Programming and other direct costs
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196,110
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185,355
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758,189
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746,305
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Other operating expenses
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171,230
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171,007
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667,186
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677,168
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Restructuring and other expense
|
|
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2,434
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17,050
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|
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40,017
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28,245
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Depreciation and amortization
|
|
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181,562
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176,769
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678,861
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736,641
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Operating income
|
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$
|
125,108
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$
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110,226
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$
|
520,321
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$
|
384,801
|
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About Altice USA Altice USA (NYSE: ATUS), the U.S. business
of Altice N.V. (Euronext: ATC, ATCB), is one of the largest broadband
communications and video services providers in the United States,
delivering broadband, pay television, telephony services, Wi-Fi hotspot
access, proprietary content and advertising services to approximately
4.9 million residential and business customers across 21 states through
its Optimum and Suddenlink brands.
Miscellaneous
Altice USA has filed a registration statement with the Securities and
Exchange Commission (SEC) for the offering to which this presentation
relates. You should read the preliminary prospectus in that registration
statement and other documents Altice USA has filed with the SEC for more
complete information about Altice USA. You may get these documents for
free by visiting EDGAR on the SEC website at www.sec.gov.
Alternatively, you may also request a copy of the current preliminary
prospectus, at no cost, by mail to Lisa Anselmo, Altice USA, Inc., 1
Court Square West, Long Island City, NY 11101 USA. To review a filed
copy of the current registration statement and preliminary prospectus,
click the following link on the SEC website at www.sec.gov
as follows (or if such address has changed, by reviewing ATUS filings
for the relevant date on the SEC website): https://www.sec.gov/Archives/edgar/data/1702780/000104746918000085/a2234168zs-1.htm
Altice USA will publish an EU prospectus in connection with the
distribution to which this presentation relates. Upon approval by the
Netherlands Authority for the Financial Markets (AFM) and, to the extent
relevant, notification for passporting in relevant Member States of the
European EconomicArea in accordance with article 18 of the Directive
2003/71/EC, the EU prospectus will be made available on the website of
Altice N.V. and, upon request, a hard copy will be available free of
charge by Altice USA.
1 Financial data for twelve months ended December 31, 2016 is
pro forma defined as results of Altice USA as if the Cablevision
(Optimum) acquisition had occurred on January 1, 2016, unless noted
otherwise. All financials shown under U.S. generally accepted accounting
principles ("GAAP") reporting standard. 2 Operating Free
Cash Flow defined here as Adjusted EBITDA less cash capital expenditures. 3
See "Reconciliation of net income (loss) to Adjusted EBITDA and Adjusted
EBITDA less Cash Capital Expenditures" on page 9 of this release. 4
Pursuant to the enactment of the Tax Cuts & Jobs Act ("Tax Reform") on
December 22, 2017, the Company recorded a noncash deferred tax benefit
of $2,337,900 in Q4 2017 to remeasure the net deferred tax liability to
adjust for the reduction in the corporate federal income tax rate from
35% to 21% which is effective on January 1, 2018. 5 The
distribution will exclude shares indirectly owned by Altice NV through
Neptune Holding US LP ("Holding LP"). 6 As adjusted for
the special cash dividend of $1.5 billion to be paid in 2018 immediately
prior to the spin-off of Altice USA, net debt was $22,243m at the end of
the fourth quarter. 7 Excludes $3m of short term notes
payable. 8 At December 31, 2017, $14m of the revolving
credit facility was restricted for certain letters of credit issued on
behalf of the Company and $336m of the facility was undrawn and
available, subject to covenant limitations. 9 Excludes
$51m of notes payable ($21m related to collateralized debt and $30m of
ST maturities). 10 At December 31, 2017, $116m of the
revolving credit facility was restricted for certain letters of credit
issued on behalf of the Company and $1,734m of the facility was undrawn
and available, subject to covenant limitations. 11
Excluding management fees. 12 Excluding debt
collateralized by Comcast shares.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180227006587/en/
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