Mediacom Broadband LLC and Mediacom LLC Report Results for Fourth Quarter and Full Year 2012

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Mediacom Broadband LLC and Mediacom LLC Report Results for Fourth Quarter and Full Year 2012

MIDDLETOWN, N.Y.--(BUSINESS WIRE)-- MEDIACOM BROADBAND LLC AND MEDIACOM LLC, wholly-owned subsidiaries of Mediacom Communications Corporation, today each reported unaudited financial and operating highlights for the three months and year ended December 31, 2012. These results for Mediacom Broadband LLC and Mediacom LLC remain subject to adjustments based upon completion of their respective audits for the year ended December 31, 2012.

Mediacom Broadband LLC*


Fourth Quarter 2012 Highlights:

  • Revenues were $228.5 million, reflecting a 4.3% increase from the prior year period
  • Operating income before depreciation and amortization ("OIBDA") was $91.1 million, reflecting a 5.0% increase from the prior year period
  • Free cash flow of $30.8 million, compared to $2.6 million in the prior year period

Full Year 2012 Highlights:

  • Revenues were $897.4 million, reflecting a 2.6% increase from the prior year
  • OIBDA was $345.4 million, reflecting a 3.6% increase from the prior year
  • Free cash flow of $73.0 million, compared to $41.8 million in the prior year

Mediacom LLC*

Fourth Quarter 2012 Highlights:

  • Revenues were $171.8 million, reflecting a 2.3% increase from the prior year period
  • Adjusted OIBDA was $71.7 million, reflecting a 0.6% increase from the prior year period
  • Free cash flow of $23.7 million, compared to $20.0 million in the prior year period

Full Year 2012 Highlights:

  • Revenues were $681.7 million, reflecting a 0.9% increase from the prior year
  • Adjusted OIBDA was $277.7 million, reflecting a 1.6% increase from the prior year
  • Free cash flow of $80.2 million, compared to $77.0 million in the prior year

About Mediacom

Mediacom Communications Corporation is the nation's eighth largest cable television company and one of the leading cable operators focused on serving the smaller cities in the United States, with a significant customer concentration in the Midwestern and Southeastern regions. Mediacom Communications offers a wide array of information, communications and entertainment services, including video, high-speed data and phone, and provides innovative broadband communications solutions through its Mediacom Business division that can be tailored to any size business. Mediacom Communications' advertising sales and productions services are sold under its OnMedia division. More information about Mediacom Communications is available at www.mediacomcc.com.

* See Table 7 for information regarding our use of non-GAAP measures and definitions of OIBDA, Adjusted OIBDA and free cash flow.

TABLE 1*

Mediacom Broadband LLC

Selected Financial and Operating Data


(Dollars in thousands, except per unit data)

(Unaudited)

  
Three Months Ended
December 31,
2012 2011% Change
Video

$

114,620

$117,676(2.6)%
High-speed data58,36253,6108.9%
Phone16,42816,690(1.6)%
Business services22,45316,48036.2%
Advertising 16,608  14,644 13.4%
Total revenues$228,471$219,1004.3%
Service costs(86,837)(84,245)3.1%
SG&A expenses(46,726)(43,738)6.8%
Management fees (3,800) (4,377)(13.2)%
OIBDA(a)$91,108$86,7405.0%
Cash interest expense (a)(24,852)(26,864)(7.5)%
Capital expenditures (b)(30,987)(52,751)(41.3)%
Dividend to preferred members (4,500) (4,500)

Free cash flow(a)$30,769 $2,625 NM 
 
OIBDA margin (c)39.9%39.6%
         
 
December 31, 2012December 31, 2011
Video customers558,000596,000
High-speed data ("HSD") customers505,000468,000
Phone customers 190,000  180,000 
Primary service units ("PSUs")1,253,0001,244,000
 
Video customer declines(9,000)(16,000)
HSD customer increases4,0001,000
Phone customer increases 1,000  1,000 
Quarterly PSU declines(4,000)(14,000)
 
Customer relationships (d)708,000701,000
 
Average total monthly revenue per:
Video customer (e)$135.39$120.92
PSU (f)$60.68$58.38
Customer relationship (g)$107.26$103.67
         
 
December 31, 2012December 31, 2011
Bank credit facility$1,659,000$1,497,000
8½% senior notes due 2015

500,000

6⅜% senior notes due 2023 300,000  
Total indebtedness$1,959,000$1,997,000
 
Total leverage ratio (h)5.38x5.76x
Interest coverage ratio (i)3.67x3.23x
 

* See Tables 3 and 7.

TABLE 2*

Mediacom Broadband LLC

Selected Financial Data


(Dollars in thousands)

(Unaudited)

  
Year Ended
December 31,
2012 2011% Change
Video

$

464,732

$483,953(4.0)%
High-speed data226,711208,7928.6%
Phone66,55266,942(0.6)%
Business services83,79565,09828.7%
Advertising 55,630  49,975 11.3%
Total revenues$897,420$874,7602.6%
Service costs(356,915)(351,922)1.4%
SG&A expenses(180,736)(173,855)4.0%
Management fees (14,335) (15,452)(7.2)%
OIBDA(a)$345,434$333,5313.6%
Cash interest expense (a)(107,452)(107,164)0.3%
Capital expenditures (b)(146,988)(166,533)(11.7)%
Dividend to preferred members (18,000) (18,000)

 
Free cash flow(a)$72,994 $41,834 74.5%
 
OIBDA margin (c)38.5%38.1%
 

TABLE 3

Mediacom Broadband LLC

Reconciliation of Non-GAAP Measures


(Dollars in thousands)

(Unaudited)

  
Three Months Ended

December 31,

Year Ended

December 31,

2012 20112012 2011
Free cash flow

$

30,769

$2,625$72,994$41,834
Capital expenditures

30,987

52,751146,988166,533
Dividend to preferred members4,5004,50018,00018,000
Other expense, net(372)(495)(1,483)(2,136)
Loss on early extinguishment of debt (j)(5,901)

(7,776)

Share-based compensation

697

697
Changes in assets and liabilities, net (2,441) 2,516  2,315  52,631 
Net cash flows provided by operating activities$57,542 $62,594 $231,038 $277,559 
 
 
OIBDA$91,108$86,740$345,434$333,531
Depreciation and amortization (38,494) (37,145) (151,240) (143,999)
Operating income$52,614 $49,595 $194,194 $189,532 
 
 
Cash interest expense$24,852$26,864$107,452$107,164
Amortization of deferred financing costs 1,363  1,096  5,109  4,345 
Interest expense, net$26,215 $27,960 $112,561 $111,509 
 

* See Tables 3 and 7.

 

TABLE 4*

Mediacom LLC

Selected Financial and Operating Data