[May 09, 2018] |
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Altice USA Reports First Quarter 2018 Results
Altice USA (NYSE:ATUS) today reported results for first quarter
ended March 31, 20181
Dexter Goei, Altice USA Chairman and Chief Executive Officer, said: "In
the first quarter of 2018 we continued to see growth of our customer
base, revenue, margins and cash flow driven by our significant
investments to improve the customer experience. The upgrade and
expansion of our network is supporting both the Residential and Business
Services segments as we continue to launch new products and services. We
successfully introduced Altice One across the Optimum footprint,
reaching a milestone of more than 100k customers. We have now begun the
rollout of Altice One across the Suddenlink footprint but, even in
advance of this launch, Suddenlink saw a significant improvement in
customer trends in the quarter. Growth has also been supported by our
investment in a4, our newly formed advanced advertising and data
business, and we are excited to explore new opportunities with new
partners in this space."
Altice USA Key Financial Highlights
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Revenue growth of +1.2% YoY in Q1 2018 to $2.33 billion, driven by
Residential revenue growth of 0.6%, Business Services revenue growth
of 4.3% and advertising revenue growth of 5.1%
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Adjusted EBITDA grew +4.0% YoY in Q1 2018 to $981 million; Adjusted
EBITDA margin increased 1.1 percentage points YoY to 42.1% (41.0% in
Q1 2017)
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Operating Free Cash Flow2 grew +5.4% YoY in Q1 2018 to $723
million with an OpFCF margin of 31.0% vs. 29.8% in Q1 2017 showing
very strong cash flow conversion
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Three Months Ended March 31,
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($k)
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2018
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2017
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Actual
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Actual
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Revenue
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2,329,714
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2,302,259
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Adjusted EBITDA3
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980,953
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943,611
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Net loss
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(128,949)
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(76,188)
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Capital Expenditures (cash)
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257,615
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257,427
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Altice USA Operational Highlights
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Residential revenue growth of +0.6% YoY in Q1 2018, which was impacted
by a dispute with Starz and multiple storms at Optimum, as well as
reflecting the delay of a rate event
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Total unique Residential customer relationships grew with net
additions of +8k in Q1 2018 (+20k in Q1 2017) with a strengthening in
Suddenlink customer trends as expected, offsetting the Starz and
storms impacts at Optimum
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Pay TV RGU net losses of -30k in Q1 2018 were better than the
prior year (-35k in Q1 2017) due to a significant improvement in
Suddenlink's performance (-7k losses in Q1 2018 vs. -20k in Q1
2017), driven by more focused marketing and improved content
line-up with Viacom addition in Q4 2017
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Residential broadband RGU net additions of +26k and telephony RGU
net losses of -8k in Q1 2018 (vs. +40k and -8k in Q1 2017
respectively), also impacted by the Starz dispute and storms at
Optimum because of lower video / data bundle customer additions
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Residential ARPU increased 0.5% YoY to $139.6 in Q1 2018
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Solid Business Services revenue growth of +4.3% YoY in Q1 2018 boosted
by strength in Enterprise & Carrier segment of +4.8% YoY, partly
offset by slower SMB growth of +4.0% YoY with delay in rate event in Q1
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Advertising revenue growth of 5.1% YoY in Q1 2018 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; over 90% of Residential broadband gross additions
taking download speeds of 100Mbps or higher at end of Q1
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Up to 400Mbps broadband speeds were available for 87% of Altice USA
Residential/Business customers by the end of Q1 2018, including 97% 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 Reiterated
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 Q1 2018 Highlights
Product & Service Enhancements and Innovations
Altice USA recently reached the milestone of 100,000 Altice One
installations. 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 and YouTube in one
place (Netflix used by >30% of the Altice One installed base).
There has already been high initial adoption of the Altice One voice
control feature with c.40% of the Altice One customer base using the
feature daily. Additionally, the company continued to make enhancements
and add new features to Altice One, including the launch of new OTT apps
such as Cheddar, TED, Newsy, Glamour, Epicurious, Conde Nast Traveler,
CNET and Golf Digest, and availability of 4K content, with more upgrades
in the pipeline in Q2 and Q3.
Altice One is available across the Optimum footprint in the New York
tri-state area and has now started rolling out across the Suddenlink
footprint. Where it is available in the Optimum footprint, over 80% of
video customer gross additions are taking an Altice One service.
Network Investments to Enhance Broadband Speeds, Video Services
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 first commercialization
of FTTH services is still expected 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
with a native IP architecture.
Altice USA also continues to roll out enhanced data services to its
customers on its existing hybrid fiber coax (DOCSIS) cable network,
mostly following digitalization and plant / CMTS upgrades. As a result,
an increasing number of consumers are selecting increased broadband
speeds:
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Up to 400Mbps broadband speeds were available for 87% of Altice USA
Residential/Business customers by the end of Q1 2018 including 97% of
the Optimum footprint;
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Altice USA continues to see an increasing number of customers taking
higher speed tiers with over 90% of Residential broadband gross
additions taking download speed tiers of 100Mbps or higher at the end
of Q1 2018 (70% of the Residential customer base now take speeds of
100Mbps or higher, increased from just 26% at the end of Q1 2017);
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Up to 1 Gigabit speeds were available for 29% of Altice USA's
customers by the end of Q1 2018, representing 72% of the Suddenlink
footprint where the Company continues to expand the availability of
this service. In addition, the pace of new home builds at Suddenlink
has accelerated, extending the existing network plant and addressable
market;
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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 149Mbps at the end of Q1
2018 (from 70Mbps at the end of Q1 2017) with average data usage per
customer reaching over 220GB as of the end of Q1 2018, growing over
25% YoY as customers are using our broadband services more and more.
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Altice One is also improving customers' broadband experience with an
advanced WiFi router and WiFi mini repeaters, and a new Smart WiFi
service is expected to launch by the end of 2018.
In addition, Altice USA has initiated video QAM to IP transition on its
cable network to enhance its video service delivery. This upgrade will
be optimal for unicast and multicast video and will be access network
technology (fixed and wireless) agnostic in the way multi-screen
services are offered to consumers. Continuous user interface
improvements will be possible as well as reducing CPE cost and
additional network cost efficiencies. In preparation for the video QAM
to IP transition, Altice One has been enabled for both QAM and IP video.
Data & Advertising
Altice USA recently announced the launch of a4, the company's advanced
advertising and data business, which delivers audience-based,
multiscreen advertising solutions to local, regional and national
advertisers and MVPD partners. The establishment of a4 advances Altice
USA's position as a pioneer in the advertising business and is the
culmination of several years of integration and investment.
a4 enables advertisers to reach approximately 100 million U.S.
households on television through cable networks, on-demand and
addressable inventory across the U.S., and approximately 50 million U.S.
households through authenticated, privacy-compliant IP addressability
supported by rich data sets and powerful analytics and attribution
services in a simple, user-friendly way. a4 will service the complex
needs of advertisers with an advanced, all-in-one advertising and data
platform to drive clients' business results and bring tremendous
efficiencies to brands looking to reach verifiable audiences across
every screen, in- and out-of-home, as well as prove the impact of their
spending.
Content
Altice USA recently announced the establishment of its Altice USA News
division, a business unit designed to focus on the continued development
and growth of the company's news properties. The Altice USA News group
includes the hyperlocal News 12 Networks, which serves local communities
in the New York tri-state area, as well as i24NEWS, the international
news and current affairs network, including its U.S. division. The
establishment of a content-focused news organization will help to
strengthen our news properties and focus on their continued growth and
development as the Company looks to focus on expanding audience reach,
enhancing digital products, and further capitalizing on advertising
potential.
Mobile
In November 2017, Altice USA announced a multi-year strategic agreement
with Sprint whereby Altice USA will utilize Sprint's network to provide
mobile voice and data services to its customers throughout the nation.
In this agreement, 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. Altice USA has begun
developing the core network to support this service including more
investment in its WiFi network and connecting to Sprint microsites to
support Sprint's network densification, which will benefit Altice USA's
MVNO service. The commercial launch of a mobile service for Altice USA
customers is still expected by 2019.
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
shareholders4. Altice NV aims to complete the proposed
transaction in June 2018 following regulatory approvals (US regulatory
approvals obtained, awaiting AFM approval) and Altice NV shareholder
approval (Altice NV AGM vote on May 18, 2018).
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 May 2018. In addition, the Board of Directors of Altice USA
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 was transferred to Altice USA
for a nominal consideration (Altice USA now owns 100% of ATS US)5.
The transfer of Altice NV's ownership of i24 US and i24 Europe was
completed on April 23, 2018 for a minimal consideration as previously
announced (Altice USA now owns 100% of i24 US, increased from 25%
previously, and 100% of i24 Europe). 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.
Financial and Operational Review
For quarter ended March 31, 2018 compared to quarter ended March 31,
2017
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Reported revenue growth for Altice USA of +1.2% YoY in Q1 2018 to
$2,330m:
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Optimum revenue growth +0.6% YoY
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Suddenlink revenue growth +3.4% YoY
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Adjusted EBITDA for Altice USA grew +4.0% YoY in Q1 2018 to $981m;
Adjusted EBITDA margin increased 1.1 percentage points YoY to 42.1%
(vs. 41.0% in Q1 2017):
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Optimum Adjusted EBITDA growth of +7.4% YoY; Adjusted EBITDA
margin increased +2.6 percentage points YoY to 40.9% due to
realization of efficiency savings (vs. 38.3% in Q1 2017);
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Suddenlink Adjusted EBITDA growth -2.9% YoY; Adjusted EBITDA
margin decreased -2.9 percentage points YoY to 44.8% mainly due to
higher content expense from adding back Viacom content in Q4 2017
and less capitalization of CPE ahead of the launch of Altice One
(vs. 47.7% in Q1 2017).
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Cash capex for Altice USA was $258m in Q1 2018, representing 11.1% of
revenue.
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OpFCF for Altice USA grew +5.4% YoY in Q1 2018 to $723m:
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Optimum OpFCF growth +14.4% YoY;
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Suddenlink OpFCF decline -11.1% YoY due to higher content expense
from adding back Viacom and higher capex related to a step up in
new home builds
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Altice USA saw total unique Residential customer relationship net
additions of +8k in Q1 2018, including Residential broadband RGU net
additions of +26k, pay TV RGU net losses of -30k, and telephony RGU
net losses of -8k in Q1 2018 (vs. +40k, -35k, and -8k in Q1 2017
respectively). Altice USA Residential ARPU per unique customer
increased 0.5% YoY in Q1 2018 to $139.6:
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Optimum's base of unique Residential customer relationships
declined by -5k net losses in Q1 2018, a deterioration on last
year due to the impact of the Starz dispute and multiple storms,
including broadband RGU net additions of +3k, -23k pay TV RGU net
losses and -12k telephony RGU net losses (compared to Q1 2017 with
+8k unique customer net additions, +17k broadband RGUs net
additions, -15k pay TV RGU net losses and -7k telephony RGU net
losses). Altice USA continues to have a strong competitive
position in the Optimum footprint, enhanced with the recent full
commercial launch of Altice One. Optimum Residential ARPU per
unique customer declined (-0.7% YoY) due to a delay in rate event
in Q1, partly offset by increased demand for higher speed
broadband tiers.
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Suddenlink unique Residential customer relationship net additions
of +14k in Q1 2018 were higher compared to +12k net additions in
Q1 2017. Suddenlink trends have improved as expected, driven by
more focused marketing (including more localized pricing) and
improved content lineup with Viacom addition in Q4 2017. The
expansion of Altice One across the Suddenlink footprint in Q2 and
Q3 2018 should further support trends here. Broadband RGU growth
accelerated compared to 2H 2017 with quarterly net additions of
+23k in Q1 2018 (in line with broadband RGU net additions of 23k
in Q1 2017). Pay TV RGU net losses of -7k were significantly
better than the prior year (-20k in Q1 2017). Telephony RGU net
additions of +4k were also better than the prior year (vs. -1k in
Q1 2017). Increased demand for higher speed broadband tiers at
Suddenlink continues to drive growth in Residential ARPU per
unique customer (+3.4% YoY).
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Altice USA's Business Services revenue increased 4.3% YoY in Q1 2018
boosted by strength in the Enterprise & Carrier segment +4.8% due to
several large wins in the Education & Carrier verticals, partly offset
by slower SMB growth with a delay in rate event in Q1. SMB revenue
increased +4.0% YoY in Q1 supported by customer growth and increase in
ARPU by sell-in of more services. Overall customer growth of 2.3% YoY
due to improved value proposition with voice and data bundles and
reduced churn.
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Altice USA's Advertising revenue increased 5.1% YoY in Q1 2018
primarily due to an increase in digital advertising revenue and an
increase in data and analytics revenue, partially offset by a decrease
in auto and programming advertising. Altice USA has now integrated
local advertising with its Audience Partners and PlaceMedia
acquisitions into a4. Altice USA now has a targeted, multi-screen
platform, integrating TV and digital advertising into a single buy.
This includes audience targeting supported by rich, privacy-compliant
household data sets with an automated self-serve model for
advertisers. Campaign management is supported by robust analytics and
attribution.
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Altice USA's programming costs increased +2.5% YoY in Q1 2018 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 video customer to
increase by high single digits going forward (+6.4% YoY in Q1 2018):
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Optimum's programming costs increased +0.9% YoY in Q1 2018 to
$488m;
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Suddenlink's programming costs increased +7.7% YoY in Q1 2018 to
$164m.
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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
(consolidated LTM net leverage has fallen from 7.1x at Q2-16 to 5.1x
pre-cash dividend). The leverage target for Altice USA remains
4.5-5.0x net debt to EBITDA.
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Net debt for Altice USA at the end of the first quarter was $20,568m,
a reduction of $175m from the end of the fourth quarter of 20176.
This represents consolidated LTM net leverage for Altice USA of 5.1x
on a reported basis at the end of March 2018. Net leverage for Optimum
was 5.0x and for Suddenlink was 5.2x at the end of March 2018 on LTM
basis.
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Pro forma for the financing 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 and March 2018, Altice
USA's blended weighted average cost of debt was 6.3% (6.6% for
Optimum, 5.8% for Suddenlink) and the blended weighted average life
was 6.4 years at the end of March 2018. There are no material
maturities at Suddenlink until 2021, and near-term maturities at
Optimum are covered by a $2.3bn revolving credit facility.
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Altice USA Consolidated Operating Results
(Dollars in thousands, except per share data)
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Three Months Ended March 31,
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2018
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2017 7
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Actual
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Actual
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Revenue:
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Pay TV
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$
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1,033,708
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$
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1,083,878
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Broadband
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701,621
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625,918
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Telephony
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166,038
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180,961
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Business services and wholesale
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333,090
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319,420
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Advertising
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87,582
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83,361
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Other
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7,675
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8,721
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Total revenue
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2,329,714
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2,302,259
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Operating expenses:
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Programming and other direct costs
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787,361
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758,352
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Other operating expenses
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583,023
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608,144
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Restructuring and other expense
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3,587
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76,929
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Depreciation and amortization
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642,705
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608,724
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Operating income
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313,038
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250,110
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Other income (expense):
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Interest expense, net
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(374,155
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)
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(433,062
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)
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Gain (loss) on investments, net
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(248,602
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)
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131,658
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Gain (loss) on derivative contracts, net
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168,352
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(71,044
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)
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Gain (loss) on interest rate swap contracts
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(31,922
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)
|
|
|
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2,342
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Loss on extinguishment of debt and write-off of deferred financing
costs
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|
|
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(4,705
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)
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|
|
|
-
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Other expense, net
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|
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(11,658
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)
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|
|
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(2,100
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)
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Loss before income taxes
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|
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(189,652
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)
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|
|
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(122,096
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)
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Income tax benefit
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|
|
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60,703
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|
|
|
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45,908
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Net loss
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(128,949
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)
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(76,188
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)
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Net income attributable to noncontrolling interests
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|
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(2
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)
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(237
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)
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Net loss attributable to Altice USA stockholders
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$
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(128,951
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)
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$
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(76,425
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)
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Basic and diluted net loss per share
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$
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(0.17
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)
|
|
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$
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(0.12
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)
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Basic and diluted weighted average common shares
|
|
|
|
737,471
|
|
|
|
|
649,525
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
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Altice USA (Dollars in thousands)
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2018
|
|
|
2017 8
|
|
|
|
Actual
|
|
|
Actual
|
Net loss
|
|
|
$
|
(128,949)
|
|
|
|
|
$
|
(76,188)
|
Income tax benefit
|
|
|
(60,703)
|
|
|
|
|
(45,908)
|
Other expense, net
|
|
|
11,658
|
|
|
|
|
2,100
|
Loss (gain) on interest rate swap contracts
|
|
|
31,922
|
|
|
|
|
(2,342)
|
Loss (gain) on derivative contracts, net
|
|
|
(168,352)
|
|
|
|
|
71,044
|
Loss (gain) on investments, net
|
|
|
248,602
|
|
|
|
|
(131,658)
|
Loss on extinguishment of debt and write-off of deferred financing
costs
|
|
|
4,705
|
|
|
|
|
-
|
Interest expense, net
|
|
|
374,155
|
|
|
|
|
433,062
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Depreciation and amortization
|
|
|
642,705
|
|
|
|
|
608,724
|
Restructuring and other expenses
|
|
|
3,587
|
|
|
|
|
76,929
|
Share-based compensation
|
|
|
21,623
|
|
|
|
|
7,848
|
Adjusted EBITDA
|
|
|
$
|
980,953
|
|
|
|
|
$
|
943,611
|
Capital Expenditures (accrued)
|
|
|
|
216,664
|
|
|
|
|
|
162,944
|
Adjusted EBITDA less Capex (accrued)
|
|
|
$
|
764,289
|
|
|
|
|
$
|
780,667
|
Capital Expenditures (cash)
|
|
|
$
|
257,615
|
|
|
|
|
$
|
257,427
|
Adjusted EBITDA less Capex (cash)
|
|
|
$
|
723,338
|
|
|
|
|
$
|
686,184
|
|
|
|
|
|
|
|
|
|
|
|
|
Cablevision (Dollars in thousands)
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2018
|
|
|
2017 8
|
|
|
|
Actual
|
|
|
Actual
|
Operating income
|
|
|
$
|
170,693
|
|
|
|
|
$
|
122,044
|
Depreciation and amortization
|
|
|
|
485,364
|
|
|
|
|
|
443,176
|
Restructuring and other expenses
|
|
|
3,083
|
|
|
|
|
58,647
|
Share-based compensation
|
|
|
16,172
|
|
|
|
|
5,082
|
Adjusted EBITDA
|
|
|
$
|
675,312
|
|
|
|
|
$
|
628,949
|
Capital Expenditures (accrued)
|
|
|
|
135,758
|
|
|
|
|
|
115,620
|
Adjusted EBITDA less Capex (accrued)
|
|
|
$
|
539,554
|
|
|
|
|
$
|
513,329
|
Capital Expenditures (cash)
|
|
|
$
|
166,801
|
|
|
|
|
$
|
184,399
|
Adjusted EBITDA less Capex (cash)
|
|
|
$
|
508,511
|
|
|
|
|
$
|
444,550
|
|
|
|
|
|
|
|
|
|
|
|
|
Suddenlink (Dollars in thousands)
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2018
|
|
|
2017 8
|
|
|
|
Actual
|
|
|
Actual
|
Operating income
|
|
|
$
|
142,345
|
|
|
|
$
|
128,066
|
Depreciation and amortization
|
|
|
|
157,341
|
|
|
|
|
165,548
|
Restructuring and other expenses
|
|
|
504
|
|
|
|
18,282
|
Share-based compensation
|
|
|
5,451
|
|
|
|
2,766
|
Adjusted EBITDA
|
|
|
$
|
305,641
|
|
|
|
$
|
314,662
|
Capital Expenditures (accrued)
|
|
|
|
80,907
|
|
|
|
|
47,324
|
Adjusted EBITDA less Capex (accrued)
|
|
|
$
|
224,734
|
|
|
|
$
|
267,338
|
Capital Expenditures (cash)
|
|
|
$
|
90,814
|
|
|
|
$
|
73,028
|
Adjusted EBITDA less Capex (cash)
|
|
|
$
|
214,827
|
|
|
|
$
|
241,634
|
|
|
|
|
|
|
|
|
|
|
The following table sets forth certain customer metrics by segment
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Altice USA Customer Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In thousands
|
|
|
Q1-16
|
|
|
Q2-16
|
|
|
Q3-16
|
|
|
Q4-16
|
|
|
FY-16
|
|
|
Q1-17
|
|
|
Q2-17
|
|
|
Q3-17
|
|
|
Q4-17
|
|
|
FY-17
|
|
|
Q1-18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes Passed
|
|
|
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
|
|
|
8,642.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential (B2C)
|
|
|
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
|
|
|
4,543.4
|
SMB (B2B)
|
|
|
354.1
|
|
|
358.7
|
|
|
361.0
|
|
|
363.6
|
|
|
363.6
|
|
|
364.7
|
|
|
367.3
|
|
|
369.1
|
|
|
371.3
|
|
|
371.3
|
|
|
373.2
|
Total Unique Customer Relationships
|
|
|
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
|
|
|
4,916.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pay TV
|
|
|
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
|
|
|
3,375.1
|
Broadband
|
|
|
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
|
|
|
4,072.6
|
Telephony
|
|
|
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
|
|
|
2,549.7
|
Total B2C RGUs
|
|
|
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
|
|
|
9,997.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B2C ARPU ($)
|
|
|
135.3
|
|
|
136.7
|
|
|
136.5
|
|
|
138.1
|
|
|
136.8
|
|
|
138.9
|
|
|
138.8
|
|
|
139.8
|
|
|
139.8
|
|
|
139.5
|
|
|
139.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Optimum Customer Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In thousands
|
|
|
Q1-16
|
|
|
Q2-16
|
|
|
Q3-16
|
|
|
Q4-16
|
|
|
FY-16
|
|
|
Q1-17
|
|
|
Q2-17
|
|
|
Q3-17
|
|
|
Q4-17
|
|
|
FY-17
|
|
|
Q1-18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes Passed
|
|
|
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
|
|
|
5,174.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential (B2C)
|
|
|
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
|
|
|
2,888.0
|
SMB (B2B)
|
|
|
258.2
|
|
|
260.7
|
|
|
261.2
|
|
|
262.0
|
|
|
262.0
|
|
|
261.2
|
|
|
261.8
|
|
|
261.9
|
|
|
262.6
|
|
|
262.6
|
|
|
263.2
|
Total Unique Customer Relationships
|
|
|
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
|
|
|
3,151.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pay TV
|
|
|
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
|
|
|
2,340.1
|
Broadband
|
|
|
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
|
|
|
2,673.4
|
Telephony
|
|
|
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
|
|
|
1,953.5
|
Total B2C RGUs
|
|
|
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
|
|
|
6,967.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B2C ARPU ($)
|
|
|
152.2
|
|
|
153.5
|
|
|
152.6
|
|
|
154.5
|
|
|
153.4
|
|
|
155.5
|
|
|
155.5
|
|
|
156.6
|
|
|
155.4
|
|
|
155.8
|
|
|
154.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Suddenlink Customer Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In thousands
|
|
|
Q1-16
|
|
|
Q2-16
|
|
|
Q3-16
|
|
|
Q4-16
|
|
|
FY-16
|
|
|
Q1-17
|
|
|
Q2-17
|
|
|
Q3-17
|
|
|
Q4-17
|
|
|
FY-17
|
|
|
Q1-18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homes Passed
|
|
|
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
|
|
|
3,468.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential (B2C)
|
|
|
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
|
|
|
1,655.5
|
SMB (B2B)
|
|
|
95.9
|
|
|
98.0
|
|
|
99.8
|
|
|
101.6
|
|
|
101.6
|
|
|
103.4
|
|
|
105.5
|
|
|
107.2
|
|
|
108.7
|
|
|
108.7
|
|
|
109.9
|
Total Unique Customer Relationships
|
|
|
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
|
|
|
1,765.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pay TV
|
|
|
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
|
|
|
1,035.0
|
Broadband
|
|
|
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
|
|
|
1,399.2
|
Telephony
|
|
|
596.7
|
|
|
596.0
|
|
|
594.0
|
|
|
597.0
|
|
|
597.0
|
|
|
596.0
|
|
|
589.5
|
|
|
588.4
|
|
|
592.3
|
|
|
592.3
|
|
|
596.2
|
Total B2C RGUs
|
|
|
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
|
|
|
3,030.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B2C ARPU ($)
|
|
|
105.7
|
|
|
107.0
|
|
|
108.2
|
|
|
109.3
|
|
|
107.6
|
|
|
109.9
|
|
|
109.8
|
|
|
110.3
|
|
|
112.2
|
|
|
110.8
|
|
|
113.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
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.
-
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.
-
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.
-
Historical ARPU figures have been adjusted to reflect the adoption of
the accounting standard change ASC 606, Revenue from Contracts with
Customers
Consolidated Net Debt as of March 31, 2018,
breakdown by credit silo
|
|
|
|
|
|
|
|
|
|
|
|
|
Suddenlink (Cequel) - in $m
|
|
|
Actual
|
|
|
Pro Forma
|
|
|
Coupon / Margin
|
|
|
Maturity
|
Sn. Sec. Notes
|
|
|
1,100
|
|
|
1,100
|
|
|
5.375%
|
|
|
2023
|
Sn. Sec. Notes
|
|
|
1,500
|
|
|
1,500
|
|
|
5.500%
|
|
|
2026
|
Term Loan
|
|
|
1,256
|
|
|
1,256
|
|
|
L+2.250%
|
|
|
2025
|
Suddenlink Sec.Debt
|
|
|
3,856
|
|
|
3,856
|
|
|
|
|
|
|
Senior Notes
|
|
|
1,050
|
|
|
-
|
|
|
6.375%
|
|
|
2020
|
Senior Notes
|
|
|
1,250
|
|
|
1,250
|
|
|
5.125%
|
|
|
2021
|
Senior Notes
|
|
|
620
|
|
|
620
|
|
|
7.750%
|
|
|
2025
|
Senior Notes
|
|
|
-
|
|
|
1,050
|
|
|
7.500%
|
|
|
2028
|
Other debt & leases
|
|
|
1
|
|
|
1
|
|
|
|
|
|
|
Suddenlink Gross Debt
|
|
|
6,777
|
|
|
6,777
|
|
|
|
|
|
|
Total Cash
|
|
|
(234)
|
|
|
(9)
|
|
|
|
|
|
|
Suddenlink Net Debt
|
|
|
6,542
|
|
|
6,767
|
|
|
|
|
|
|
Undrawn RCF
|
|
|
350
|
|
|
350
|
|
|
|
|
|
|
WACD (%)
|
|
|
|
|
|
5.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cablevision (Optimum) - in $m
|
|
|
Actual
|
|
|
Pro Forma
|
|
|
Coupon / Margin
|
|
|
Maturity
|
Guaranteed Notes
|
|
|
1,000
|
|
|
1,000
|
|
|
6.625%
|
|
|
2025
|
Guaranteed Notes
|
|
|
1,310
|
|
|
1,310
|
|
|
5.500%
|
|
|
2027
|
Guaranteed Notes
|
|
|
1,000
|
|
|
1,000
|
|
|
5.375%
|
|
|
2028
|
Senior Notes
|
|
|
500
|
|
|
500
|
|
|
7.625%
|
|
|
2018
|
Senior Notes
|
|
|
526
|
|
|
526
|
|
|
8.625%
|
|
|
2019
|
Senior Notes
|
|
|
1,000
|
|
|
1,000
|
|
|
6.750%
|
|
|
2021
|
Senior Notes
|
|
|
1,800
|
|
|
1,800
|
|
|
10.125%
|
|
|
2023
|
Senior Notes
|
|
|
750
|
|
|
750
|
|
|
5.250%
|
|
|
2024
|
Senior Notes
|
|
|
1,684
|
|
|
1,684
|
|
|
10.875%
|
|
|
2025
|
Term Loan
|
|
|
2,978
|
|
|
2,978
|
|
|
L+2.250%
|
|
|
2025
|
Term Loan
|
|
|
1,500
|
|
|
1,500
|
|
|
L+2.500%
|
|
|
2026
|
Drawn RCF
|
|
|
-
|
|
|
100
|
|
|
L+3.250%
|
|
|
2021
|
Other debt & leases
|
|
|
22
|
|
|
22
|
|
|
|
|
|
|
Cablevision New Debt / Total Debt LLC
|
|
|
14,070
|
|
|
14,170
|
|
|
|
|
|
|
Senior Notes
|
|
|
500
|
|
|
500
|
|
|
8.000%
|
|
|
2020
|
Senior Notes
|
|
|
649
|
|
|
649
|
|
|
5.875%
|
|
|
2022
|
Cablevision New Debt / Total Debt Corp
|
|
|
15,219
|
|
|
15,319
|
|
|
|
|
|
|
Total Cash
|
|
|
(1,193)
|
|
|
(18)
|
|
|
|
|
|
|
Cablevision Net Debt
|
|
|
14,025
|
|
|
15,300
|
|
|
|
|
|
|
Undrawn RCF
|
|
|
2,300
|
|
|
2,200
|
|
|
|
|
|
|
WACD (%)
|
|
|
|
|
|
6.6%
|
|
|
|
|
|
|
Altice USA Pro Forma Net Leverage
Reconciliation as of March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
In $m
|
|
|
|
|
|
|
|
|
|
|
|
|
Altice USA
|
|
|
Suddenlink
|
|
|
Optimum
|
|
|
Altice USA Inc
|
|
|
Pro Forma
|
Gross Debt Consolidated
|
|
|
$6,777
|
|
|
$15,319
|
|
|
$-
|
|
|
$22,095
|
Cash
|
|
|
(9)
|
|
|
(18)
|
|
|
(0)
|
|
|
(28)
|
Net Debt Consolidated
|
|
|
6,767
|
|
|
15,300
|
|
|
(0)
|
|
|
22,068
|
LTM EBITDA GAAP
|
|
|
1,256
|
|
|
2,793
|
|
|
|
|
|
4,049
|
L2QA EBITDA GAAP
|
|
|
1,246
|
|
|
2,816
|
|
|
|
|
|
4,062
|
Net Leverage (LTM)
|
|
|
5.4x
|
|
|
5.5x
|
|
|
|
|
|
5.5x
|
Net Leverage (L2QA)
|
|
|
5.4x
|
|
|
5.4x
|
|
|
|
|
|
5.4x
|
WACD
|
|
|
5.8%
|
|
|
6.6%
|
|
|
|
|
|
6.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In $m
|
|
|
|
|
|
|
Altice USA Reconciliation to Financial Reported Debt
|
|
|
Actual
|
|
|
Pro Forma
|
Total Debenture and Loans from Financial Institutions
(Carrying Amount)
|
|
|
$21,477
|
|
|
$21,477
|
Unamortized Financing Costs
|
|
|
306
|
|
|
306
|
Fair Value Adjustments
|
|
|
189
|
|
|
189
|
Total Value of Debenture and Loans from Financial Institutions (Principal
Amount)
|
|
|
21,972
|
|
|
21,972
|
Other Debt & Capital Leases
|
|
|
23
|
|
|
23
|
Refinancing Impact
|
|
|
-
|
|
|
-
|
Dividend Impact
|
|
|
-
|
|
|
100
|
Gross Debt Consolidated
|
|
|
21,995
|
|
|
22,095
|
Cash
|
|
|
(1,428)
|
|
|
(28)
|
Net Debt Consolidated
|
|
|
20,568
|
|
|
22,068
|
|
|
|
|
|
|
|
|
|
|
|
Cablevision Operating Results
(Dollars in thousands)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2018
|
|
|
|
2017 (9
|
)
|
|
|
|
Actual
|
|
|
Actual
|
Revenue:
|
|
|
|
|
|
|
Pay TV
|
|
|
$
|
763,720
|
|
|
$
|
802,194
|
|
Broadband
|
|
|
|
440,351
|
|
|
|
396,333
|
|
Telephony
|
|
|
|
135,585
|
|
|
|
146,557
|
|
Business services and wholesale
|
|
|
|
234,172
|
|
|
|
228,544
|
|
Advertising
|
|
|
|
74,643
|
|
|
|
65,132
|
|
Other
|
|
|
|
2,823
|
|
|
|
3,227
|
|
Total revenue
|
|
|
|
1,651,294
|
|
|
|
1,641,987
|
|
Operating expenses:
|
|
|
|
|
|
|
Programming and other direct costs
|
|
|
|
588,581
|
|
|
|
568,311
|
|
Other operating expenses
|
|
|
|
403,573
|
|
|
|
449,809
|
|
Restructuring and other expense
|
|
|
|
3,083
|
|
|
|
58,647
|
|
Depreciation and amortization
|
|
|
|
485,364
|
|
|
|
443,176
|
|
Operating income
|
|
|
$
|
170,693
|
|
|
$
|
122,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Suddenlink Operating Results
(Dollars in thousands)
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
2018
|
|
|
2017 9
|
|
|
|
Actual
|
|
|
Actual
|
Revenue:
|
|
|
|
|
|
|
Pay TV
|
|
|
$
|
269,988
|
|
|
$
|
281,684
|
|
Broadband
|
|
|
|
261,270
|
|
|
|
229,585
|
|
Telephony
|
|
|
|
30,453
|
|
|
|
34,404
|
|
Business services and wholesale
|
|
|
|
98,918
|
|
|
|
90,876
|
|
Advertising
|
|
|
|
17,068
|
|
|
|
18,229
|
|
Other
|
|
|
|
4,852
|
|
|
|
5,494
|
|
Total revenue
|
|
|
|
682,549
|
|
|
|
660,272
|
|
Operating expenses:
|
|
|
|
|
|
|
Programming and other direct costs
|
|
|
|
202,624
|
|
|
|
190,041
|
|
Other operating expenses
|
|
|
|
179,735
|
|
|
|
158,335
|
|
Restructuring and other expense
|
|
|
|
504
|
|
|
|
18,282
|
|
Depreciation and amortization
|
|
|
|
157,341
|
|
|
|
165,548
|
|
Operating income
|
|
|
$
|
142,345
|
|
|
$
|
128,066
|
|
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, 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) relating to the distribution of shares of
Altice USA by Altice N.V. to its shareholders, which is described in
this press release. 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 such
distribution. 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 Economic Area 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
|
|
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 10 of this
release.
|
4
|
|
The distribution will exclude shares indirectly owned by Altice NV
through Neptune Holding US LP ("Holding LP").
|
5
|
|
As ATS US was an entity under common control, all previously
reported amounts have been revised to give effect to the ATS
acquisition. Therefore Altice USA actual results include operating
results of ATS US for all periods since the formation of ATS in Q2
2017 with no impact to Q1 2017 results.
|
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 $22,068m at the end of the fourth quarter.
|
7
|
|
Amounts for 2017 have been adjusted following required GAAP
accounting standard changes to reflect the adoption of ASC 606,
Revenue from Contracts with Customers, and ASU No. 2017-07
Compensation Retirement Benefits (Topic 715)
|
8
|
|
Amounts for 2017 have been adjusted following required GAAP
accounting standard changes to reflect the adoption of ASC 606,
Revenue from Contracts with Customers, and ASU No. 2017-07
Compensation Retirement Benefits (Topic 715)
|
9
|
|
Amounts for 2017 have been adjusted following required GAAP
accounting standard changes to reflect the adoption of ASC 606,
Revenue from Contracts with Customers, and ASU No. 2017-07
Compensation Retirement Benefits (Topic 715)
|
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