Second Quarter of Improved Broadband Net
Adds Year-over-Year
Acceleration in Mobile Line Net Adds,
Achieving Third Quarter of Mobile Line Net Add Growth
Best Fiber Customer Growth Quarter, Ending
Q3 at 295K Fiber Customers
Altice USA (NYSE: ATUS) today reports results for the third
quarter ended September 30, 2023.
Dennis Mathew, Altice USA Chairman and Chief Executive
Officer, said: "The close of the third quarter marks one year
since I joined Altice USA as CEO and it has been a year of
transformation as we established and quickly began to execute
against our core strategy of delivering the best customer
experiences, best customer relationships, and best network, all
with the best people.
I am pleased that in the third quarter we saw improvements
across the business, including overall financial performance,
broadband subscriber relationship trends, mobile net additions,
fiber customer growth, customer satisfaction and operational
metrics, among other areas. Specifically, for the second quarter in
a row, we drove improved broadband net adds on a year-over-year
basis, highlighting the progress we are making to strengthen our
operations, compete effectively, and enhance the quality of our
Optimum experiences. With our continued sharpened focus on leading
with operational and financial discipline, we remain optimistic
about our ability to return to sustainable broadband and cash flow
growth."
Key Operational Highlights for the
Quarter
- Year-over-Year (YoY) Improvement in Total Broadband Primary
Service Units (PSUs) Broadband net losses were -31k in Q3 2023,
compared to -43k in Q3 2022, representing a 13k improvement in
broadband net add performance trends.
- Best Quarter for Fiber Net Adds; Reaches 295k Fiber
Customers Fiber (FTTH) customer net additions were +45k in Q3
2023, our best quarter for fiber net adds. Fiber broadband net adds
were driven by both higher fiber gross additions and increased
migrations of existing customers. Total fiber broadband customers
reached 295k as of the end of Q3 2023.
- Optimum Mobile Net Add Growth of +24k is 5x Growth YoY;
Reaches 288k Lines Optimum Mobile saw the third straight
quarter of growth, adding +24k mobile net additions in Q3 2023
(+30k net additions excluding customers receiving free service(1)),
reaching 6.3% penetration of the Company's total broadband customer
base, up from 5.1% penetration in Q3-22.
- Improved Customer Experience (CX) Leading to Higher
Satisfaction Scores Optimum saw CX improvements across a
variety of metrics including:
- +22pts improvement in tNPS(2) in Q3-23 vs Q3-22(2).
- +71% increase in self-install rate for qualified new customers
in Q3-23 vs Q3-22(3).
- ~300k fewer truck rolls last twelve months (LTM) as of
Q3-23(4).
- ~1.3 million fewer inbound calls LTM as of Q3-23(5).
Driving Continued Progress in Building
and Delivering Best-in-Class Network Experiences
- Fiber Rollout Continues Optimum added +61k new FTTH
passings in the quarter, and 561k YTD, reaching 2.72 million
passings.
- Optimum 8 Gig Internet Launched to Entire East Fiber
Footprint Optimum 8 Gig symmetrical Fiber is available to all
fiber passings in the Optimum East footprint, rolling out 8 Gig to
majority of the fiber footprint earlier than planned, before
year-end. At the end of Q3 2023, 47% of the Optimum East footprint
had multi-Gig speeds available, up from 30% in Q2-23.
- Optimum Multi-Gig Offerings Pick Up Steam 1 Gig
broadband or higher speed tier sell-in to all new customers, where
1 Gig or higher services are available, was 46% in the quarter.
Approximately 23% of the Residential broadband customer base
currently take 1 Gig or higher speeds, representing a significant
growth opportunity for the Company. 1 Gig or higher speeds are
available to 95% of our total footprint.
- Continued Demand for Speed and Data Usage from Optimum
Customers
- Broadband speeds taken on average have nearly doubled in
the past three years to 432 Mbps.
- Broadband-only customer usage averaged 659 GB per month,
which is 23% higher than the average usage of the entire customer
base (535 GB per month). The top 10% of broadband residential
customers are using approximately 2 TB per month.
- Continued New Build Activity to Drive Growth The Company
continues its network edge-outs, and added +30k passings in Q3 2023
(+145k passings YTD), and continues to see strong momentum in
growing customer penetration, typically reaching approximately 40%
within one year of rollout in new-build areas.
Third Quarter Financial
Overview
- Total Revenue was $2.32 billion, down -3.2% YoY This
included Residential revenue decline of -3.4% YoY, Business
Services revenue growth of +0.1% YoY and News & Advertising
revenue decline of -10.8% YoY (or News & Advertising revenue
growth of +4.9% YoY excluding political revenue).
- Residential Revenue(6) was $1.83 billion, down -3.4% YoY
Driven mostly due to the loss of higher ARPU video customers over
the last year.
- Residential revenue per customer(7) was $138.42 Grew
sequentially +$0.98 in Q3-23 vs Q2-23, and was down -0.6% YoY.
- Business Services Revenue was $366.9 million, grew
+0.1% YoY This included Lightpath revenue growth of +2.3% YoY,
and SMB / Other decline of -0.7% YoY.
- News and Advertising Revenue was $107.5 million, down
-10.8% YoY Excluding political revenue, News & Advertising
grew +4.9% YoY.
- Net income attributable to stockholders was $66.8
million ($0.15/share on a diluted basis)
- Net cash flows from operating activities were $474.5
million
- Adjusted EBITDA(8) was $915.5 million Margin of 39.5%,
and declined -4.1% YoY.
- Cash capital expenditures of $353.2 million Represented
15.2% of revenue (8.8% of revenue excluding FTTH and new builds)
and down -28.4% YoY.
- Operating Free Cash Flow(8) was $562.3 million Margin of
24.3%, and grew +22.0% YoY.
- Free Cash Flow(8) was $121.3 million Decline of -10.6%
YoY.
Balance Sheet Review as of September
30, 2023
- Net debt for CSC Holdings, LLC Restricted Group was
$23,087 million at the end of Q3 2023(9), representing net leverage
of 6.7x Adjusted EBITDA on a Last Two Quarters Annualized (L2QA)
basis. The weighted average cost of debt for CSC Holdings, LLC
Restricted Group was 6.1% as of the end of Q3 2023 and the weighted
average life was 5.0 years. The Company aims to return to a
leverage target of 4.5x to 5.0x net debt / Adjusted EBITDA on an
L2QA basis for its CSC Holdings, LLC debt silo over time.
- Net debt for Cablevision Lightpath LLC was $1,429
million at the end of Q3 2023(9), representing net leverage of 5.8x
L2QA. The weighted average cost of debt for Cablevision Lightpath
LLC was 5.4% as of the end of Q3 2023 and the weighted average life
was 4.3 years.
- Consolidated net debt for Altice USA was $24,499
million(9), representing consolidated net leverage of 6.7x
L2QA.
Shares Outstanding
As of September 30, 2023, the Company had 454,732,471 combined
Class A and Class B shares outstanding.
Customer Metrics
(in thousands, except per customer
amounts)
Q1-22
Q2-22
Q3-22
Q4-22
FY-22
Q1-23
Q2-23
Q3-23
Total Passings(10)
9,304.9
9,363.1
9,414.9
9,463.8
9,463.8
9,512.2
9,578.6
9,609.0
Total Passings additions
41.6
58.2
51.8
48.8
200.5
48.4
66.4
30.4
Total Customer
Relationships(11)(12)
Residential
4,612.1
4,564.2
4,514.7
4,498.5
4,498.5
4,472.4
4,429.5
4,391.5
SMB
382.9
383.1
382.5
381.2
381.2
380.9
381.0
381.1
Total Unique Customer Relationships
4,995.0
4,947.3
4,897.2
4,879.7
4,879.7
4,853.3
4,810.5
4,772.6
Residential net additions (losses)
(20.7)
(47.9)
(49.5)
(16.2)
(134.3)
(26.1)
(42.9)
(38.0)
Business Services net additions
(losses)
1.0
0.2
(0.6)
(1.3)
(0.7)
(0.3)
0.1
0.1
Total customer net additions (losses)
(19.8)
(47.7)
(50.1)
(17.5)
(135.0)
(26.4)
(42.7)
(37.9)
Residential PSUs
Broadband
4,373.2
4,333.6
4,290.6
4,282.9
4,282.9
4,263.7
4,227.0
4,196.0
Video
2,658.7
2,574.2
2,491.8
2,439.0
2,439.0
2,380.5
2,312.2
2,234.6
Telephony
1,951.5
1,886.9
1,818.9
1,764.1
1,764.1
1,703.5
1,640.8
1,572.7
Broadband net additions (losses)
(13.0)
(39.6)
(43.0)
(7.7)
(103.3)
(19.2)
(36.8)
(31.0)
Video net additions (losses)
(73.6)
(84.5)
(82.4)
(52.8)
(293.2)
(58.6)
(68.3)
(77.6)
Telephony net additions (losses)
(53.7)
(64.7)
(68.0)
(54.8)
(241.1)
(60.6)
(62.7)
(68.1)
Residential ARPU ($)(6)(7)
139.00
141.36
139.24
135.86
138.83
135.32
137.44
138.42
SMB PSUs
Broadband
350.4
350.7
350.2
349.1
349.1
349.0
349.1
349.4
Video
102.6
101.0
99.1
97.3
97.3
95.3
93.7
91.9
Telephony
216.8
215.3
214.0
212.3
212.3
210.0
208.0
205.9
Broadband net additions (losses)
1.1
0.3
(0.5)
(1.1)
(0.2)
(0.1)
0.1
0.3
Video net additions (losses)
(1.6)
(1.6)
(1.9)
(1.8)
(6.9)
(2.0)
(1.6)
(1.8)
Telephony net additions (losses)
(2.0)
(1.6)
(1.3)
(1.7)
(6.5)
(2.3)
(2.0)
(2.1)
Total Mobile Lines
Mobile ending lines
198.3
231.3
236.1
240.3
240.3
247.9
264.2
288.2
Mobile ending lines excluding free
service(1)
190.0
195.5
202.7
208.7
208.7
223.3
257.9
288.1
Mobile line net additions
11.9
33.0
4.8
4.1
53.8
7.6
16.3
24.1
Mobile line net additions ex-free
service(1)
3.6
5.5
7.2
6.0
22.3
14.6
34.6
30.3
Fiber (FTTH) Customer Metrics
(in thousands)
Q1-22
Q2-22
Q3-22
Q4-22
FY-22
Q1-23
Q2-23
Q3-23
FTTH Total Passings(13)
1,316.6
1,587.1
1,908.2
2,158.7
2,158.7
2,373.0
2,659.5
2,720.2
FTTH Total Passing additions
145.7
270.4
321.2
250.5
987.8
214.2
286.6
60.7
FTTH Residential
80.4
103.7
134.2
170.0
170.0
207.2
245.9
289.3
FTTH SMB
0.6
0.7
1.2
1.7
1.7
2.7
3.9
5.7
FTTH Total customer
relationships(14)
81.0
104.4
135.3
171.7
171.7
209.9
249.7
295.1
FTTH Residential net additions
11.1
23.3
30.5
35.8
100.7
37.2
38.6
43.4
FTTH SMB net additions
0.2
0.2
0.4
0.6
1.4
0.9
1.2
1.9
FTTH Total customer net
additions
11.3
23.5
30.9
36.4
102.1
38.1
39.8
45.3
Altice USA Consolidated Operating
Results
(in thousands, except per share data)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Revenue:
Broadband
$
961,751
$
981,842
$
2,884,661
$
2,970,039
Video
775,818
816,001
2,321,557
2,499,437
Telephony
73,640
83,097
227,390
252,952
Mobile(6)
20,320
15,216
53,993
47,021
Residential revenue(6)
1,831,529
1,896,156
5,487,601
5,769,449
Business services and wholesale
366,852
366,662
1,095,197
1,105,905
News and Advertising
107,484
120,522
319,686
368,447
Other(6)
11,335
10,212
32,968
34,662
Total revenue
2,317,200
2,393,552
6,935,452
7,278,463
Operating expenses:
Programming and other direct costs
750,538
782,121
2,284,537
2,429,925
Other operating expenses
667,278
694,390
1,974,651
2,009,760
Restructuring expense and other operating
items
4,453
4,007
39,303
10,058
Depreciation and amortization (including
impairments)
402,366
445,769
1,237,283
1,327,243
Operating income
492,565
467,265
1,399,678
1,501,477
Other income (expense):
Interest expense, net
(420,216
)
(340,989
)
(1,216,203
)
(954,564
)
Gain (loss) on investments, net
—
(425,686
)
192,010
(902,060
)
Gain (loss) on derivative contracts,
net
—
323,668
(166,489
)
643,856
Gain on interest rate swap contracts,
net
31,972
105,945
78,708
268,960
Gain on extinguishment of debt and
write-off of deferred financing costs
—
—
4,393
—
Other income (loss), net
(1,470
)
3,245
7,165
8,196
Income before income taxes
102,851
133,448
299,262
565,865
Income tax expense
(27,336
)
(35,827
)
(106,433
)
(152,563
)
Net income
75,515
97,621
192,829
413,302
Net income attributable to noncontrolling
interests
(8,676
)
(12,670
)
(21,825
)
(25,626
)
Net income attributable to Altice USA
stockholders
$
66,839
$
84,951
$
171,004
$
387,676
Basic net income per share
$
0.15
$
0.19
$
0.38
$
0.86
Diluted net income per share
$
0.15
$
0.19
$
0.38
$
0.86
Basic weighted average common
shares
454,730
453,239
454,702
453,233
Diluted weighted average common
shares
455,076
453,390
455,118
453,284
Altice USA Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended September
30,
2023
2022
Cash flows from operating activities:
Net income
$
192,829
$
413,302
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization (including
impairments)
1,237,283
1,327,243
Loss (gain) on investments
(192,010
)
902,060
Loss (gain) on derivative contracts,
net
166,489
(643,856
)
Gain on extinguishment of debt and
write-off of deferred financing costs
(4,393
)
—
Amortization of deferred financing costs
and discounts (premiums) on indebtedness
26,334
61,447
Share-based compensation
29,368
114,410
Deferred income taxes
(187,295
)
(89,240
)
Decrease in right-of-use assets
34,633
33,315
Provision for doubtful accounts
62,148
65,281
Other
9,406
(492
)
Change in operating assets and
liabilities, net of effects of acquisitions and dispositions:
Accounts receivable, trade
(29,403
)
389
Prepaid expenses and other assets
(76,862
)
15,730
Amounts due from and due to affiliates
56,193
(1,732
)
Accounts payable and accrued
liabilities
(2,374
)
17,776
Deferred revenue
9,531
(5,508
)
Interest rate swap contracts
(1,692
)
(304,409
)
Net cash provided by operating
activities
1,330,185
1,905,716
Cash flows from investing activities:
Capital expenditures
(1,409,561
)
(1,371,056
)
Payments for acquisitions, net of cash
acquired
—
(2,060
)
Other, net
(1,677
)
(2,985
)
Net cash used in investing activities
(1,411,238
)
(1,376,101
)
Cash flows from financing activities:
Proceeds from long-term debt
2,350,000
1,565,000
Repayment of debt
(2,215,112
)
(1,942,428
)
Proceeds from derivative contracts in
connection with the settlement of collateralized debt
38,902
—
Principal payments on finance lease
obligations
(112,795
)
(97,165
)
Payment to acquire noncontrolling
interest
(7,035
)
—
Other, net
(8,521
)
(207
)
Net cash provided by (used in) financing
activities
45,439
(474,800
)
Net increase (decrease) in cash and cash
equivalents
(35,614
)
54,815
Effect of exchange rate changes on cash
and cash equivalents
(1,482
)
51
Net increase (decrease) in cash and cash
equivalents
(37,096
)
54,866
Cash, cash equivalents and restricted cash
at beginning of year
305,751
195,975
Cash, cash equivalents and restricted cash
at end of period
$
268,655
$
250,841
Reconciliation of Non-GAAP Financial Measures:
We define Adjusted EBITDA, which is a non-GAAP financial
measure, as net income (loss) excluding income taxes, non-operating
income or expenses, gain (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 and sale of affiliate interests, interest expense, net,
depreciation and amortization, share-based compensation,
restructuring expense and other operating items (such as
significant legal settlements, contractual payments for terminated
employees, and impairments).
Adjusted EBITDA eliminates the significant non-cash depreciation
and amortization expense that results from the capital-intensive
nature of our business and from intangible assets recognized from
acquisitions, as well as certain non-cash and other operating items
that affect the period-to-period comparability of our operating
performance. In addition, Adjusted EBITDA is unaffected by our
capital and tax structures and by our investment activities.
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 Operating Free Cash Flow (defined as Adjusted EBITDA
less cash capital expenditures), and Free Cash Flow (defined as net
cash flows from operating activities less cash capital
expenditures) as indicators of the Company’s financial performance.
We believe these measures are two of several benchmarks used by
investors, analysts and peers for comparison of performance in the
Company’s industry, although they may not be directly comparable to
similar measures reported by other companies.
Reconciliation of net income to
Adjusted EBITDA and Operating Free Cash Flow
(in thousands)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Net income
$
75,515
$
97,621
$
192,829
$
413,302
Income tax expense
27,336
35,827
106,433
152,563
Other loss (income), net
1,470
(3,245
)
(7,165
)
(8,196
)
Gain on interest rate swap contracts,
net
(31,972
)
(105,945
)
(78,708
)
(268,960
)
Loss (gain) on derivative contracts,
net
—
(323,668
)
166,489
(643,856
)
Loss (gain) on investments, net
—
425,686
(192,010
)
902,060
Gain on extinguishment of debt and
write-off of deferred financing costs
—
—
(4,393
)
—
Interest expense, net
420,216
340,989
1,216,203
954,564
Depreciation and amortization
402,366
445,769
1,237,283
1,327,243
Restructuring expense and other operating
items
4,453
4,007
39,303
10,058
Share-based compensation
16,115
37,349
29,368
114,410
Adjusted EBITDA
915,499
954,390
2,705,632
2,953,188
Capital Expenditures (cash)
353,219
493,559
1,409,561
1,371,056
Operating Free Cash Flow
$
562,280
$
460,831
$
1,296,071
$
1,582,132
Reconciliation of net cash flow from
operating activities to Free Cash Flow (Deficit)
(unaudited):
Net cash flows from operating
activities
$
474,498
$
629,162
$
1,330,185
$
1,905,716
Capital Expenditures (cash)
353,219
493,559
1,409,561
1,371,056
Free Cash Flow (Deficit)
$
121,279
$
135,603
$
(79,376
)
$
534,660
Consolidated Net Debt as of September
30, 2023(9)
CSC Holdings, LLC Restricted Group
(in $m)
Principal
Amount
Coupon /
Margin
Maturity
Drawn RCF
$850
SOFR+2.350%
2025(15)
Term Loan
1,524
L+2.250%(16)
2025
Term Loan B-3
523
L+2.250%(16)
2026
Term Loan B-5
2,895
L+2.500%(16)
2027
Term Loan B-6
1,992
SOFR+4.500%
2028(17)
Guaranteed Notes
1,310
5.500%
2027
Guaranteed Notes
1,000
5.375%
2028
Guaranteed Notes
1,000
11.250%
2028
Guaranteed Notes
1,750
6.500%
2029
Guaranteed Notes
1,100
4.125%
2030
Guaranteed Notes
1,000
3.375%
2031
Guaranteed Notes
1,500
4.500%
2031
Senior Notes
750
5.250%
2024
Senior Notes
1,046
7.500%
2028
Legacy unexchanged Cequel Notes
4
7.500%
2028
Senior Notes
2,250
5.750%
2030
Senior Notes
2,325
4.625%
2030
Senior Notes
500
5.000%
2031
CSC Holdings, LLC Restricted Group
Gross Debt
23,319
CSC Holdings, LLC Restricted Group
Cash
(232)
CSC Holdings, LLC Restricted Group Net
Debt
$23,087
CSC Holdings, LLC Restricted Group
Undrawn RCF
$1,491
Cablevision Lightpath LLC (in
$m)
Principal Amount
Coupon / Margin
Maturity
Drawn RCF
$—
SOFR+3.360%
2025
Term Loan
584
SOFR+3.360%
2027
Senior Secured Notes
450
3.875%
2027
Senior Notes
415
5.625%
2028
Cablevision Lightpath Gross
Debt
1,449
Cablevision Lightpath Cash
(20)
Cablevision Lightpath Net Debt
$1,429
Cablevision Lightpath Undrawn
RCF
$100
Net Leverage Schedules as of September
30, 2023 (in $m)
CSC Holdings
Restricted
Group(18)
Cablevision
Lightpath LLC
CSC Holdings
Consolidated(19)
Altice USA
Consolidated
Gross Debt Consolidated(20)
$23,319
$1,449
$24,768
$24,768
Cash
(232)
(20)
(268)
(268)
Net Debt Consolidated(9)
$23,087
$1,429
$24,499
$24,499
LTM EBITDA
$3,381
$237
$3,619
$3,619
L2QA EBITDA
$3,431
$246
$3,674
$3,674
Net Leverage (LTM)
6.8x
6.0x
6.8x
6.8x
Net Leverage (L2QA)
6.7x
5.8x
6.7x
6.7x
WACD (%)
6.1%
5.4%
6.1%
6.1%
Reconciliation to Financial Reported
Debt (in $m)
Actual
Total Debenture and Loans from
Financial Institutions (Carrying Amount)
$24,708
Unamortized financing costs, discounts and
fair value adjustments, net of unamortized premiums
60
Gross Debt
Consolidated(20)
24,768
Finance leases and other notes
410
Total Debt
25,178
Cash
(268)
Net Debt
$24,910
(1)
Reported ending mobile lines
include lines receiving free service. Adjusted mobile lines exclude
additions relating to mobile lines receiving free service from all
periods presented, and includes net additions from when customers
previously on free service start making payments.
(2)
Transactional NPS (tNPS)
represents the average monthly metric for the quarter that blends
Care, Field, Retail and Sales across Fixed, Mobile, and Advanced
Support.
(3)
Self-install % increase is the
change in percentage of residential installs at eligible addresses
choosing self-install, excluding fiber installs.
(4)
LTM truck rolls exclude employee
initiated special request orders, compared to immediately prior
twelve-month period (October 1, 2021 – September 30, 2022).
(5)
Last twelve months (“LTM”)
inbounds calls refers to technical, care and support call, compared
to immediately prior twelve-month period (October 1, 2021 –
September 30, 2022).
(6)
Beginning in the second quarter
of 2023, mobile service revenue previously included in mobile
revenue is now separately reported in residential revenue and
business services revenue. In addition, mobile equipment revenue
previously included in mobile revenue is now included in other
revenue. Prior period amounts have been revised to conform with
this presentation.
(7)
Residential revenue per customer
(ARPU) is calculated by dividing the average monthly revenue for
the respective period derived from the sale of broadband, video,
telephony and mobile services to residential customers by the
average number of total residential customers for the same period
and excludes mobile-only customer relationships. ARPU amounts for
prior periods have been adjusted to include mobile service
revenue.
(8)
See “Reconciliation of Non-GAAP
Financial Measures” on page 7 of this release.
(9)
Net debt, defined as the
principal amount of debt less cash, and excluding finance leases
and other notes.
(10)
Total passings represents the
estimated number of single residence homes, apartments and
condominium units passed by the HFC and FTTH network in areas
serviceable without further extending the transmission lines. In
addition, it includes commercial establishments that have connected
to our HFC and FTTH network. Broadband services were not available
to approximately 30 thousand total passings and telephony services
were not available to approximately 500 thousand total
passings.
(11)
Total Unique Customer
Relationships represent the number of households/businesses that
receive at least one of the Company’s fixed-line services.
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 on our hybrid-fiber-coaxial (HFC) and
fiber-to-the-home (FTTH) network. 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.
(12)
Total Customer Relationship
metrics do not include mobile-only customers.
(13)
Represents the estimated number
of single residence homes, apartments and condominium units passed
by the FTTH network in areas serviceable without further extending
the transmission lines. In addition, it includes commercial
establishments that have connected to our FTTH network.
(14)
Represents number of
households/businesses that receive at least one of the Company's
fixed-line services on our FTTH network. FTTH 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
on our FTTH network. 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.
(15)
The CSC Holdings' revolving
credit facility is due on the earlier of (i) July 13, 2027 and (ii)
April 17, 2025 if, as of such date, any Term Loan borrowings are
still outstanding, unless the Term Loan maturity date has been
extended to a date falling after July 13, 2027.
(16)
These loans use Synthetic USD
LIBOR, calculated as Term SOFR plus a spread adjustment.
(17)
The Term Loan B-6 is due on the
earlier of (i) January 15, 2028 and (ii) April 15, 2027 if, as of
such date, any Term Loan B-5 are still outstanding, unless the Term
Loan B-5 maturity date has been extended to a date falling after
January 15, 2028.
(18)
CSC Holdings, LLC Restricted
Group excludes the unrestricted subsidiaries, primarily Cablevision
Lightpath LLC and NY Interconnect, LLC.
(19)
CSC Holdings Consolidated
includes the CSC Holdings, LLC Restricted Group and the
unrestricted subsidiaries.
(20)
Principal amount of debt
excluding finance leases and other notes and collateralized
debt.
Numerical information is presented on a rounded basis using
actual amounts. Minor differences in totals and percentage
calculations may exist due to rounding.
About Altice USA
Altice USA (NYSE: ATUS) is one of the largest broadband
communications and video services providers in the United States,
delivering broadband, video, mobile, proprietary content and
advertising services to approximately 4.8 million residential and
business customers across 21 states through its Optimum brand. The
Company operates a4, an advanced advertising and data business,
which provides audience-based, multiscreen advertising solutions to
local, regional and national businesses and advertising clients.
Altice USA also offers hyper-local, national, international and
business news through its News 12, Cheddar News and i24NEWS
networks.
FORWARD-LOOKING STATEMENT
Certain statements in this earnings release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include, but are not limited to, all statements other
than statements of historical facts contained in this earnings
release, including, without limitation, those regarding our
intentions, beliefs or current expectations concerning, among other
things: our future financial conditions and performance, results of
operations and liquidity; our strategy, objectives, prospects,
service availability targets, customer penetration rates, capital
expenditure plans, fiber deployment and network expansion and
upgrade plans, and leverage targets; our ability to achieve
operational performance improvements; and future developments in
the markets in which we participate or are seeking to participate.
These forward-looking statements can be identified by the use of
forward-looking terminology, including the terms “anticipate”,
“believe”, “could”, “estimate”, “expect”, “forecast”, “intend”,
“may”, “plan”, “project”, “should”, “target”, or “will” or, in each
case, their negative, or other variations or comparable
terminology. Where, in any forward-looking statement, we express an
expectation or belief as to future results or events, such
expectation or belief is expressed in good faith and believed to
have a reasonable basis, but there can be no assurance that the
expectation or belief will result or be achieved or accomplished.
To the extent that statements in this earnings release are not
recitations of historical fact, such statements constitute
forward-looking statements, which, by definition, involve risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such statements including risks
referred to in our SEC filings, including our Annual Report on Form
10-K for the fiscal year ended December 31, 2022 and reports on
Form 10-Q. You are cautioned to not place undue reliance on Altice
USA’s forward-looking statements. Any forward-looking statement
speaks only as of the date on which it was made. Altice USA
specifically disclaims any obligation to publicly update or revise
any forward-looking statement, as of any future date.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231101849630/en/
Investor Relations Sarah Freedman: +1 631 660 8714 /
sarah.freedman@alticeusa.com
Communications Lisa Anselmo: +1 516 279 9461 /
lisa.anselmo@alticeusa.com Janet Meahan: +1 516 519 2353 /
janet.meahan@alticeusa.com
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