Mediacom Broadband LLC and Mediacom LLC Report Results for Fourth Quarter and Full Year 2012
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 | |||||||||||
2012 | 2011 | % Change | |||||||||
Video | $ | 114,620 | $ | 117,676 | (2.6 | )% | |||||
High-speed data | 58,362 | 53,610 | 8.9 | % | |||||||
Phone | 16,428 | 16,690 | (1.6 | )% | |||||||
Business services | 22,453 | 16,480 | 36.2 | % | |||||||
Advertising | 16,608 | 14,644 | 13.4 | % | |||||||
Total revenues | $ | 228,471 | $ | 219,100 | 4.3 | % | |||||
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 | $ | 86,740 | 5.0 | % | |||||
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, 2012 | December 31, 2011 | ||||||||||
Video customers | 558,000 | 596,000 | |||||||||
High-speed data ("HSD") customers | 505,000 | 468,000 | |||||||||
Phone customers | 190,000 | 180,000 | |||||||||
Primary service units ("PSUs") | 1,253,000 | 1,244,000 | |||||||||
Video customer declines | (9,000 | ) | (16,000 | ) | |||||||
HSD customer increases | 4,000 | 1,000 | |||||||||
Phone customer increases | 1,000 | 1,000 | |||||||||
Quarterly PSU declines | (4,000 | ) | (14,000 | ) | |||||||
Customer relationships (d) | 708,000 | 701,000 | |||||||||
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, 2012 | December 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) | 5.38x | 5.76x | |||||||||
Interest coverage ratio (i) | 3.67x | 3.23x | |||||||||
* See Tables 3 and 7. | |||||||||||
TABLE 2* Mediacom Broadband LLC Selected Financial Data (Dollars in thousands) (Unaudited) | |||||||||||
Year Ended | |||||||||||
2012 | 2011 | % Change | |||||||||
Video | $ | 464,732 | $ | 483,953 | (4.0 | )% | |||||
High-speed data | 226,711 | 208,792 | 8.6 | % | |||||||
Phone | 66,552 | 66,942 | (0.6 | )% | |||||||
Business services | 83,795 | 65,098 | 28.7 | % | |||||||
Advertising | 55,630 | 49,975 | 11.3 | % | |||||||
Total revenues | $ | 897,420 | $ | 874,760 | 2.6 | % | |||||
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 | $ | 333,531 | 3.6 | % | |||||
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 | 2011 | 2012 | 2011 | |||||||||||||
Free cash flow | $ | 30,769 | $ | 2,625 | $ | 72,994 | $ | 41,834 | ||||||||
Capital expenditures | 30,987 | 52,751 | 146,988 | 166,533 | ||||||||||||
Dividend to preferred members | 4,500 | 4,500 | 18,000 | 18,000 | ||||||||||||
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 | |||||||||||
