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