Le Lézard
Classified in: Business
Subjects: EARNINGS, Stock Sale/Buyback

Altice USA Reports Fourth Quarter and Full Year 2021 Results


Altice USA (NYSE: ATUS) today reports results for the fourth quarter and full year ended December 31, 2021.

Dexter Goei, Altice USA Chief Executive Officer, said: "We are pleased to conclude 2021 having made progress on our growth strategies by accelerating the enhancements of our network, product and customer experience. We see customer trends improving as we continue the expansion of our sales distribution channels and recently launched our planned competitive converged internet and mobile offerings. Today we also announce a new plan to bring 100% fiber broadband, delivering multi-gig speeds, to more than two thirds of our entire footprint over the next four years, reaching a total of 6.5 million FTTH passings by the end of 2025. We are confident in our strategy and that our focus on these key initiatives will drive long-term sustainable growth and value."

Key Financial Highlights

Q4 and FY-21 Summary Financials

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

($k)

2021

 

2020

 

2021

 

2020

Revenue

$2,521,138

 

$2,535,421

 

$10,090,849

 

$9,894,642

Net income attributable to Altice USA, Inc. stockholders

251,662

 

330,472

 

990,311

 

436,183

Adjusted EBITDA(3)

1,083,040

 

1,150,980

 

4,427,251

 

4,414,814

Capital Expenditures (cash)

386,648

 

344,578

 

1,231,715

 

1,073,955

Revenue Growth and Adjusted EBITDA Detail

 

Q4-21

FY-21

 

 

 

 

Total Revenue YoY

 

(0.6)%

+2.0%

Adj. for RSN credits(1)

 

(1.2)%

+0.8%

Adj. for RSN credits and air strand revenue(1)(2)

 

(2.4)%

(0.2)%

 

 

 

 

Residential Revenue Growth YoY

 

(2.0)%

+0.3%

Adj. for RSN credits(1)

 

(2.8)%

(1.0)%

 

 

 

 

Business Services Revenue Growth YoY

 

+12.1%

+9.0%

Adj. for RSN credits(1)

 

+11.8%

+8.8%

Adj. for RSN credits and air strand revenue(1)(2)

 

+3.3%

+2.0%

 

 

 

 

News & Advertising Revenue Growth YoY

 

(11.7)%

+6.1%

 

 

 

 

Adjusted EBITDA Growth YoY

 

(5.9)%

+0.3%

Adjusted EBITDA Margin

 

43.0%

43.9%

Adjusted EBITDA Margin ex-mobile(4)

 

44.2%

44.8%

Residential unique customer relationships, broadband subscribers and organic net additions (losses)

Subscribers (000s)

FY-19

Q1-20

Q2-20

Q3-20(5)

Q4-20

FY-20(5)

Q1-21

Q2-21(6)

Q3-21

Q4-21

FY-21(6)

Residential ending customer relationships

4,533.3

4,568.4

4,621.4

4,663.5

4,648.4

4,648.4

4,647.4

4,670.7

4,646.0

4,632.8

4,632.8

Residential customer organic net additions (losses)

15.2

35.2

52.9

7.7

(15.0)

80.8

(1.0)

(11.9)

(24.7)

(13.2)

(50.8)

Broadband ending subscribers

4,187.3

4,237.4

4,307.8

4,363.5

4,359.2

4,359.2

4,370.8

4,401.3

4,388.1

4,386.2

4,386.2

Broadband organic net additions (losses)

72.0

50.0

70.4

26.0

(4.3)

142.1

11.5

0.2

(13.1)

(1.9)

(3.3)

Key Operational Highlights

Accelerated fiber network rollout across Optimum and Suddenlink

Altice USA today announces an acceleration of its fiber deployment strategy over the next four years across its Optimum and Suddenlink footprints, expecting to reach 6.5 million passings by the end of 2025. This new fiber expansion in Suddenlink coupled with the continued fiber build in Optimum will position the Company to pass more than two thirds of its entire footprint with 100% fiber broadband over the next four years, including approximately 2.5 million fiber passings at Suddenlink and 4 million fiber passings at Optimum:

Accelerated new build activity and Suddenlink network upgrades

Altice USA has been accelerating the pace of its network edge-outs, adding +51k total passings in Q4 2021 and a total of +229k total passings in FY 2021 (+141k total passings FY 2021 on an organic basis excluding the acquisition of Morris Broadband in Q2 2021). The Company continues to see strong momentum in growing customer penetration, typically reaching approximately 40% within a year of rollout in new-build areas. The Company expects to add an incremental 175k+ new passings in 2022.

Altice USA continues to upgrade its existing hybrid fibercoaxial (HFC) network to deliver higher speeds in certain Suddenlink markets. In FY 2021, the Company upgraded 304k passings through radio frequency (RF) upgrades and equipment upgrades to enable higher speeds. These markets previously only offered up to 150 Mbps download speeds and were upgraded to offer up to 400 Mbps or 1 Gbps.

Increased network usage and demand for higher broadband speeds

The average broadband speed taken by Altice USA's customer base has nearly doubled in the past three years to 352 Mbps at the end of Q4 2021. Approximately 50% of our broadband customers remain on plans with download speeds of 200 Mbps or less, representing a sizable opportunity to continue to upgrade speeds. Broadband-only customer usage averaged 556 GB per month in Q4 2021, which is 25% higher than the average usage of the entire customer base (446 GB per month).

In Q4 2021, sell-in of 1 Gbps (1 Gig) broadband speeds to new customers, where 1 Gig services are available, was 47%, up from 40% in Q4 2020. Approximately 14.9% of the total customer base currently takes Gigabit speeds, representing a significant growth opportunity for the Company.

Balance Sheet Review

As of December 31, 2021:

Additional Highlights and Announcements

Altice USA Launches "Internet + Mobile Savings" Plans

In January 2022, the Company launched new "Internet + Mobile Savings" plans, giving Optimum Mobile and Optimum Internet customers the opportunity to save more on their monthly bills. Customers must maintain active Optimum Mobile and Optimum Internet services to qualify for savings. Depending on the type of mobile and Internet plans, customers could save up to $30 per month off their monthly mobile and Internet bills.

Altice USA Leadership Changes

On January 25, 2022, Altice USA announced that Keith Bowen had been named President of Altice News & Advertising, assuming the role from Jon Steinberg, who will depart the company in the spring. Keith Bowen previously served as Chief Revenue Officer for Altice News & Advertising.

On January 10, 2022, Altice USA announced the appointment of Shuvankar Roy as the company's Senior Vice President of Customer Experience. Shuvankar (Shu), who joined Altice USA with over two decades of experience at various major telecommunications providers, is responsible for enhancing the Optimum and Suddenlink customer journey, with a focus on implementing a modern, refreshed, and consistent service and support experience.

On December 14, 2021, Altice USA announced that Lee Schroeder, Altice USA's Executive Vice President of Government & Community Affairs and Chief Diversity Officer, will be leaving the company in July 2022. The Community Affairs and Chief Diversity Officer roles have been assumed by Lisa Gonzalez Anselmo, Altice USA's Executive Vice President of Communications.

On December 6, 2021, Altice USA announced the appointment of Ben Collier as Senior Vice President of Brand, Marketing, and Media. Collier will lead the company's brand and marketing strategy, advertising, and media teams as the company looks to advance its connectivity services across the United States and prepares to unify its Suddenlink and Optimum brands under the Optimum banner.

Share Repurchases and Shares Outstanding

For the twelve months ended December 31, 2021, Altice USA repurchased an aggregate of 23.6 million shares for a total purchase price of approximately $804.9 million, at an average price of $34.12. As of December 31, 2021, Altice USA had 454,654,140 combined Class A and Class B shares outstanding.

For the three months ended December 31, 2021, Altice USA did not repurchase shares.

Human Rights Campaign Foundation recognizes Altice USA as a ?Best Place to Work for LGBTQ Equality' for the Fourth Year in a Row

Altice USA is again proud to be recognized for its commitment to fostering an inclusive workplace where employees are encouraged to be their authentic selves, making us stronger as a company. As recognized in this ranking, the progress that continues to transpire reflects the collective work done across our entire business supported by our Diversity and Inclusion programs ? and remains an inspiration as we look ahead.

Altice USA Consolidated Operating Results

(In thousands, except per share data)

(Unaudited)

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

2021

 

2020

 

2021

 

2020

Revenue:

 

 

 

 

 

 

 

Broadband

$

972,953

 

 

$

942,030

 

 

$

3,925,089

 

 

$

3,689,159

 

Video

 

850,344

 

 

 

904,251

 

 

 

3,526,205

 

 

 

3,670,859

 

Telephony

 

94,515

 

 

 

110,430

 

 

 

404,813

 

 

 

468,777

 

Residential revenue

 

1,917,812

 

 

 

1,956,711

 

 

 

7,856,107

 

 

 

7,828,795

 

Business services and wholesale

 

406,005

 

 

 

362,223

 

 

 

1,586,044

 

 

 

1,454,532

 

News and Advertising

 

170,205

 

 

 

192,857

 

 

 

550,667

 

 

 

519,205

 

Mobile

 

23,839

 

 

 

20,183

 

 

 

84,194

 

 

 

78,127

 

Other

 

3,277

 

 

 

3,447

 

 

 

13,837

 

 

 

13,983

 

Total revenue

 

2,521,138

 

 

 

2,535,421

 

 

 

10,090,849

 

 

 

9,894,642

 

Operating expenses:

 

 

 

 

 

 

 

Programming and other direct costs

 

836,484

 

 

 

831,119

 

 

 

3,382,129

 

 

 

3,340,442

 

Other operating expenses

 

619,633

 

 

 

581,435

 

 

 

2,379,765

 

 

 

2,264,473

 

Restructuring and other expense

 

6,218

 

 

 

2,394

 

 

 

17,176

 

 

 

91,073

 

Depreciation and amortization (including impairments)

 

460,010

 

 

 

511,754

 

 

 

1,787,152

 

 

 

2,083,365

 

Operating income

 

598,793

 

 

 

608,719

 

 

 

2,524,627

 

 

 

2,115,289

 

Other income (expense):

 

 

 

 

 

 

 

Interest expense, net

 

(311,907

)

 

 

(313,461

)

 

 

(1,266,591

)

 

 

(1,350,341

)

Gain (loss) on investments and sale of affiliate interests, net

 

(240,549

)

 

 

263,760

 

 

 

(88,898

)

 

 

320,061

 

Gain (loss) on derivative contracts, net

 

194,931

 

 

 

(204,467

)

 

 

85,911

 

 

 

(178,264

)

Gain (loss) on interest rate swap contracts

 

33,135

 

 

 

10,119

 

 

 

92,735

 

 

 

(78,606

)

Loss on extinguishment of debt and write-off of deferred financing costs

 

?

 

 

 

?

 

 

 

(51,712

)

 

 

(250,489

)

Other income, net

 

2,229

 

 

 

2,300

 

 

 

9,835

 

 

 

5,577

 

Income before income taxes

 

276,632

 

 

 

366,970

 

 

 

1,305,907

 

 

 

583,227

 

Income tax expense

 

(15,922

)

 

 

(30,701

)

 

 

(294,975

)

 

 

(139,748

)

Net income

 

260,710

 

 

 

336,269

 

 

 

1,010,932

 

 

 

443,479

 

Net income attributable to noncontrolling interests

 

(9,048

)

 

 

(5,797

)

 

 

(20,621

)

 

 

(7,296

)

Net income attributable to Altice USA stockholders

$

251,662

 

 

$

330,472

 

 

$

990,311

 

 

$

436,183

 

Basic net income per share

$

0.56

 

 

$

0.61

 

 

$

2.16

 

 

$

0.75

 

Diluted net income per share

$

0.56

 

 

$

0.60

 

 

$

2.14

 

 

$

0.75

 

Basic weighted average common shares

 

453,228

 

 

 

544,705

 

 

 

458,311

 

 

 

581,057

 

Diluted weighted average common shares

 

453,230

 

 

 

548,572

 

 

 

462,295

 

 

 

583,689

 

Altice USA Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

December 31,

 

2021

 

2020

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income

$

1,010,932

 

 

$

443,479

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization (including impairments)

 

1,787,152

 

 

 

2,083,365

 

Loss (gain) on investments and sale of affiliate interests, net

 

88,898

 

 

 

(320,061

)

Loss (gain) on derivative contracts, net

 

(85,911

)

 

 

178,264

 

Loss on extinguishment of debt and write-off of deferred financing costs

 

51,712

 

 

 

250,489

 

Amortization of deferred financing costs and discounts (premiums) on indebtedness

 

91,226

 

 

 

91,127

 

Share-based compensation expense

 

98,296

 

 

 

125,087

 

Deferred income taxes

 

40,701

 

 

 

75,512

 

Decrease in right-of-use assets

 

43,820

 

 

 

45,995

 

Provision for doubtful accounts

 

68,809

 

 

 

65,965

 

Other

 

4,928

 

 

 

34,079

 

Change in assets and liabilities, net of effects of acquisitions and dispositions:

 

 

 

 

 

 

 

Accounts receivable, trade

 

(30,379

)

 

 

(50,747

)

Prepaid expenses and other assets

 

28,343

 

 

 

8,330

 

Amounts due from and due to affiliates

 

23,758

 

 

 

3,594

 

Accounts payable and accrued liabilities

 

(177,326

)

 

 

(118,388

)

Deferred revenue

 

(40,929

)

 

 

(39,977

)

Liabilities related to interest rate swap contracts

 

(149,952

)

 

 

104,051

 

Net cash provided by operating activities

 

2,854,078

 

 

 

2,980,164

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Capital expenditures

 

(1,231,715

)

 

 

(1,073,955

)

Payment for acquisitions, net of cash acquired

 

(340,444

)

 

 

(149,973

)

Other, net

 

(1,444

)

 

 

3,502

 

Net cash used in investing activities

 

(1,573,603

)

 

 

(1,220,426

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from long-term debt

 

4,410,000

 

 

 

8,019,648

 

Repayment of long-term debt

 

(4,870,108

)

 

 

(6,194,804

)

Proceeds from collateralized indebtedness and related derivative contracts, net

 

185,105

 

 

 

?

 

Repayment of collateralized indebtedness and related derivative contracts, net

 

(185,105

)

 

 

?

 

Principal payments on finance lease obligations

 

(85,949

)

 

 

(43,083

)

Purchase of shares of Altice USA Class A common stock, pursuant to a share repurchase program

 

(804,928

)

 

 

(4,816,379

)

Proceeds from the sale of a noncontrolling interest in Lightpath, net of expenses

 

?

 

 

 

880,197

 

Other

 

(11,539

)

 

 

(26,624

)

Net cash used in financing activities

 

(1,362,524

)

 

 

(2,181,045

)

Net decrease in cash and cash equivalents

 

(82,049

)

 

 

(421,307

)

Effect of exchange rate changes on cash and cash equivalents

 

(662

)

 

 

(2,167

)

Net decrease in cash and cash equivalents

 

(82,711

)

 

 

(423,474

)

Cash, cash equivalents and restricted cash at beginning of year

 

278,686

 

 

 

702,160

 

Cash, cash equivalents and restricted cash at end of period

$

195,975

 

 

$

278,686

 

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, 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, interest income, depreciation and amortization (including impairments), share-based compensation expense or benefit, restructuring expense or credits and transaction expenses.

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 (unaudited):

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Net income

$

260,710

 

 

$

336,269

 

 

$

1,010,932

 

 

$

443,479

 

Income tax expense

 

15,922

 

 

 

30,701

 

 

 

294,975

 

 

 

139,748

 

Other income, net

 

(2,229

)

 

 

(2,300

)

 

 

(9,835

)

 

 

(5,577

)

Loss (gain) on interest rate swap contracts, net

 

(33,135

)

 

 

(10,119

)

 

 

(92,735

)

 

 

78,606

 

Loss (gain) on derivative contracts, net

 

(194,931

)

 

 

204,467

 

 

 

(85,911

)

 

 

178,264

 

Loss (gain) on investments and sales of affiliate interests, net

 

240,549

 

 

 

(263,760

)

 

 

88,898

 

 

 

(320,061

)

Loss on extinguishment of debt and write-off of deferred financing costs

 

?

 

 

 

?

 

 

 

51,712

 

 

 

250,489

 

Interest expense, net

 

311,907

 

 

 

313,461

 

 

 

1,266,591

 

 

 

1,350,341

 

Depreciation and amortization (including impairments)

 

460,010

 

 

 

511,754

 

 

 

1,787,152

 

 

 

2,083,365

 

Restructuring and other expense

 

6,218

 

 

 

2,394

 

 

 

17,176

 

 

 

91,073

 

Share-based compensation

 

18,019

 

 

 

28,113

 

 

 

98,296

 

 

 

125,087

 

Adjusted EBITDA

 

1,083,040

 

 

 

1,150,980

 

 

 

4,427,251

 

 

 

4,414,814

 

Capital Expenditures (cash)

 

386,648

 

 

 

344,578

 

 

 

1,231,715

 

 

 

1,073,955

 

Operating Free Cash Flow

$

696,392

 

 

$

806,402

 

 

$

3,195,536

 

 

$

3,340,859

 

Reconciliation of net cash flow from operating activities to Free Cash Flow (unaudited):

 

 

 

 

 

 

 

 

Net cash flows from operating activities

$

676,599

)

 

$

791,503

)

 

$

2,854,078

)

 

$

2,980,164

)

Capital Expenditures (cash)

 

386,648

 

 

 

344,578

 

 

 

1,231,715

 

 

 

1,073,955

 

Free Cash Flow

$

289,951

 

 

$

446,925

 

 

$

1,622,363

 

 

$

1,906,209

 

Customer Metrics(11) (in thousands, except per customer amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY-19

 

Q1-20

Q2-20

Q3-20(5)

Q4-20

 

FY-20(5)

 

Q1-21

Q2-21(6)

Q3-21

Q4-21

 

FY-21(6)

Total Passings(8)

8,818.6

 

8,834.8

8,880.1

8,987.9

9,034.1

 

9,034.1

 

9,067.6

9,195.1

9,212.5

9,263.3

 

9,263.3

Residential

4,533.3

 

4,568.4

4,621.4

4,663.5

4,648.4

 

4,648.4

 

4,647.4

4,670.7

4,646.0

4,632.8

 

4,632.8

SMB

383.1

 

381.7

375.7

377.5

376.1

 

376.1

 

375.8

380.7

381.6

381.9

 

381.9

Total Unique Customer Relationships(9)

4,916.3

 

4,950.1

4,997.1

5,040.9

5,024.6

 

5,024.6

 

5,023.2

5,051.4

5,027.6

5,014.7

 

5,014.7

Residential Customers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadband

4,187.3

 

4,237.4

4,307.8

4,363.5

4,359.2

 

4,359.2

 

4,370.8

4,401.3

4,388.1

4,386.2

 

4,386.2

Video

3,179.2

 

3,137.5

3,102.9

3,035.1

2,961.0

 

2,961.0

 

2,906.6

2,870.5

2,803.0

2,732.3

 

2,732.3

Telephony

2,398.8

 

2,359.8

2,337.1

2,279.5

2,214.0

 

2,214.0

 

2,161.2

2,118.4

2,057.1

2,005.2

 

2,005.2

Residential ARPU ($)(10)

143.98

 

143.39

144.38

138.16

140.09

 

142.11

 

142.24

142.24

140.73

137.79

 

141.08

Fiber (FTTH) Customer Metrics (in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY-19

 

Q1-20

Q2-20

Q3-20

Q4-20

 

FY-20

 

Q1-21

Q2-21

Q3-21

Q4-21

 

FY-21

FTTH Total Passings(12)

510.1

 

691.2

742.6

867.9

900.1

 

900.1

 

921.4

982.5

1,026.6

1,171.0

 

1,171.0

FTTH Total customer relationships(13)(14)

3.4

 

5.1

8.7

16.3

26.1

 

26.1

 

35.9

47.3

58.9

69.7

 

69.7

FTTH Residential

3.4

 

5.1

8.7

16.3

26.1

 

26.1

 

35.9

47.3

58.7

69.3

 

69.3

FTTH SMB

0.0

 

0.0

0.0

0.0

0.0

 

0.0

 

0.0

0.1

0.2

0.3

 

0.3

Penetration of FTTH total passings(15)

0.7%

 

0.7%

1.2%

1.9%

2.9%

 

2.9%

 

3.9%

4.8%

5.7%

5.9%

 

5.9%

Consolidated Net Debt as of December 31, 2021

CSC Holdings, LLC Restricted Group (in $m)

Actual Principal

Amount

 

Coupon /

Margin

 

Maturity

Drawn RCF

$900

 

L+2.250%

 

2024

Term Loan

2,865

 

L+2.250%

 

2025

Term Loan B-3

1,240

 

L+2.250%

 

2026

Term Loan B-5

2,948

 

L+2.500%

 

2027

Guaranteed Notes

1,310

 

5.500%

 

2027

Guaranteed Notes

1,000

 

5.375%

 

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

649

 

5.875%

 

2022

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

23,136

 

 

 

 

CSC Holdings, LLC Restricted Group Cash

(82)

 

 

 

 

CSC Holdings, LLC Restricted Group Net Debt

$23,054

 

 

 

 

 

 

 

 

 

 

CSC Holdings, LLC Restricted Group Undrawn RCF

$1,436

 

 

 

 

WACD (%)

4.6%

 

 

 

 

Cablevision Lightpath LLC (in $m)

Actual Principal

Amount

 

Coupon /

Margin

 

Maturity

Drawn RCF

$?

 

L+3.250%

 

2025

Term Loan

594

 

3.750%

 

2027

Senior Secured Notes

450

 

3.875%

 

2027

Senior Notes

415

 

5.625%

 

2028

Cablevision Lightpath Gross Debt

1,459

 

 

 

 

Cablevision Lightpath Cash

(73)

 

 

 

 

Cablevision Lightpath Net Debt

$1,386

 

 

 

 

 

 

 

 

 

 

Cablevision Lightpath Undrawn RCF

$100

 

 

 

 

WACD (%)

4.3%

 

 

 

 

Altice USA Consolidated (in $m)

 

Actual Principal

Amount

Altice USA Consolidated Gross Debt

 

$24,595

Cash

 

(196)

Total Altice USA Consolidated Net Debt

 

24,400

WACD (%)

 

4.6%

Net Leverage Schedules as of December 31, 2021 (in $m)

 

CSC Holdings

Restricted

Group(17)

 

Cablevision

Lightpath LLC

 

CSC Holdings

Consolidated(18)

 

Altice USA

Consolidated

 

 

 

 

 

 

 

 

Gross Debt Consolidated(16)

$23,136

 

$1,459

 

$24,595

 

$24,595

Cash

(82)

 

(73)

 

(193)

 

(196)

Net Debt Consolidated

$23,054

 

$1,386

 

$24,402

 

$24,400

LTM EBITDA

$4,211

 

$207

 

$4,427

 

$4,427

L2QA EBITDA

$4,279

 

$206

 

$4,496

 

$4,496

Net Leverage (LTM)

5.5x

 

6.7x

 

5.5x

 

5.5x

Net Leverage (L2QA)

5.4x

 

6.7x

 

5.4x

 

5.4x

Reconciliation to Financial Reported Debt

 

 

Actual

Total Debenture and Loans from Financial Institutions (Carrying Amount)

$24,523

Unamortized Financing Costs, Net of Premiums

19

Fair Value Adjustments

53

Gross Debt Consolidated

24,595

Finance leases and other notes

317

Total Debt

24,912

Cash

(196)

Net Debt

$24,716

______________________

(1)

Adjusted revenue for RSN credits excludes service credits and associated franchise fees as a result of RSN affiliate fee credits the Company expected to receive for a minimum number of events not delivered in the twelve-month period ended December 31, 2020.
 

(2)

Adjusted revenue for air strand excludes all air strand revenue from Business Services from the current period and the same period of prior year. Approximately $100.1 million of the year-over-year increase in FY 2021 and $31.1 million of the year-over-year increase in Q4 2021 was due to an early termination of a backhaul contract for air strands which resulted in the recognition of deferred revenue and termination fees over the amended term.

 

(3)

See "Reconciliation of Non-GAAP Financial Measures" on page 8 of this release.

(4)

Q4 2021 Adjusted EBITDA margin ex-mobile of 44.2% excludes approximately $21.9m of losses related to Altice USA's mobile business in the current period and $18.9m of losses in Q4 2020. FY 2021 and 2020 Adjusted EBITDA margin ex-mobile of 44.8% excludes approximately $60.6m and $73.0m of losses related to Altice USA's mobile business, respectively.

(5)

Since Q3-20, figures include Service Electric Cable T.V. of New Jersey, Inc. acquired subscribers. Q3-20 Service Electric subscribers added 34.4k residential customer relationships, 29.7k broadband, 18.6k video, and 5.9k voice.

(6)

Since Q2-21, figures include Morris Broadband, LLC acquired subscribers. Q2-21 Morris Broadband subscribers added 35.1k residential customer relationships, 30.3k broadband, 12.2k video, and 2.2k voice.

(7)

Net debt, defined as the principal amount of debt less cash, and excluding finance leases and other notes.

(8)

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. Total passings include approximately 67k total passings acquired in the Service Electric Cable T.V. of New Jersey acquisition in Q3-20 and in Q2-21 include approximately 89k total passings acquired in the Morris Broadband acquisition.

(9)

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 HFC and 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.

(10)

ARPU is calculated by dividing the average monthly revenue for the respective quarter (fourth quarter for annual periods) derived from the sale of broadband, video and telephony services to Residential customers by the average number of total Residential customers for the same period. ARPU for the September 30, 2020 period reflects a reduction of $5.51 due to credits that we anticipated to be issued to video customers as a result of credits the Company expected to receive from certain sports programming networks whereby the minimum number of events were not delivered pursuant to the contractual agreements with the networks and related franchise fees. ARPU for the December 31, 2020 period reflects a reduction of $1.26 due to credits that we anticipated to be issued to video customers as a result of credits the Company expected to receive from certain sports programming networks whereby the minimum number of events were not delivered pursuant to the contractual agreements with the networks and related franchise fees.

(11)

Customer metrics do not include Optimum Mobile customers.

(12)

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. The figures shown here represent those FTTH passings available for marketing to customers as reflected in Altice USA's billing system (FTTH passings "ready for sales"), differing to previously reported FTTH coverage figures which represented those FTTH passings where the network had been constructed (FTTH passings "ready for service") but were not yet necessarily available for sale to customers.

(13)

Represents number of households/businesses that receive at least one of the Company's fixed-line services on our FTTH network.

(14)

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)

Represents the number of total FTTH customer relationships divided by FTTH total passings.

(16)

Principal amount of debt excluding finance leases and other notes.

(17)

CSC Holdings, LLC Restricted Group excludes the unrestricted subsidiaries, primarily Cablevision Lightpath LLC and NY Interconnect, LLC.

(18)

CSC Holdings Consolidated includes the CSC Holdings, LLC Restricted Group and the unrestricted subsidiaries.

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 more than 5.0 million residential and business customers across 21 states through its Optimum and Suddenlink brands. 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 and i24NEWS networks.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the information under the headings "Accelerated fiber network rollout across Optimum and Suddenlink" and "Accelerated new build activity and Suddenlink network upgrades" and other statements relating to capital expenditure plans, fiber deployment, network expansion and upgrades, distribution channel expansion, and leverage targets. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this 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, plans, objectives, prospects, growth, goals and 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," "remain" 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 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 Annual Report on Form 10-K. 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.


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