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
December 31,

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
December 31,

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