Altice USA Reports Third Quarter 2024 Results
Altice USA (ATUS) reported Q3 2024 results with total revenue of $2.2 billion (-3.9% YoY) and a net loss of $43 million. The company showed strong fiber growth with 47k fiber net additions, reaching 482k fiber customers (+63% YoY). Mobile performance was the best in four years with 36k net adds. However, broadband PSU losses were -50k. Key metrics included:
- Residential revenue: $1.7B (-5.6% YoY)
- Business Services revenue: $366.4M (-0.1% YoY)
- Adjusted EBITDA: $862M (-5.8% YoY)
- Free Cash Flow: $76.9M
The company unveiled a transformation plan targeting improved free cash flow through revenue opportunities, fiber penetration, and operational efficiency.
Altice USA (ATUS) ha riportato i risultati del terzo trimestre 2024 con un fatturato totale di 2,2 miliardi di dollari (-3,9% su base annua) e una perdita netta di 43 milioni di dollari. L'azienda ha mostrato una forte crescita della fibra con 47.000 nuove aggiunte di fibra, raggiungendo un totale di 482.000 clienti in fibra (+63% su base annua). Le performance mobili sono state le migliori degli ultimi quattro anni con 36.000 nuove aggiunte nette. Tuttavia, le perdite di PSU nella banda larga sono state -50.000. I principali indicatori includevano:
- Fatturato residenziale: 1,7 miliardi di dollari (-5,6% su base annua)
- Fatturato dei servizi aziendali: 366,4 milioni di dollari (-0,1% su base annua)
- EBITDA rettificato: 862 milioni di dollari (-5,8% su base annua)
- Flusso di cassa libero: 76,9 milioni di dollari
L'azienda ha svelato un piano di trasformazione mirato a migliorare il flusso di cassa libero attraverso opportunità di fatturato, penetrazione della fibra ed efficienza operativa.
Altice USA (ATUS) informó los resultados del tercer trimestre de 2024 con ingresos totales de 2,2 mil millones de dólares (-3,9% interanual) y una pérdida neta de 43 millones de dólares. La empresa mostró un fuerte crecimiento en fibra con 47,000 nuevas adiciones netas de fibra, alcanzando 482,000 clientes de fibra (+63% interanual). El rendimiento móvil fue el mejor en cuatro años con 36,000 nuevas adiciones netas. Sin embargo, las pérdidas de PSU en banda ancha fueron de -50,000. Los principales indicadores incluyeron:
- Ingresos residenciales: 1,7 mil millones de dólares (-5,6% interanual)
- Ingresos de servicios comerciales: 366,4 millones de dólares (-0,1% interanual)
- EBITDA ajustado: 862 millones de dólares (-5,8% interanual)
- Flujo de efectivo libre: 76,9 millones de dólares
La empresa presentó un plan de transformación dirigido a mejorar el flujo de efectivo libre a través de oportunidades de ingresos, penetración de fibra y eficiencia operativa.
알티스 USA (ATUS)는 2024년 3분기 실적을 발표하며 총 수익이 22억 달러(-3.9% 전년 대비)와 순손실이 4300만 달러에 이르렀습니다. 회사는 47,000개의 순 추가 가입자를 기록하며 48만 2000명의 광섬유 고객(전년 대비 +63%)으로 성장했습니다. 이동통신 실적은 4년 간의 최고치를 기록하며 36,000명의 순 추가 고객이 있었습니다. 그러나 초고속 인터넷 PSU 손실은 -50,000명이었습니다. 주요 지표는 다음과 같습니다:
- 주거용 수익: 17억 달러(-5.6% 전년 대비)
- 비즈니스 서비스 수익: 3억 6640만 달러(-0.1% 전년 대비)
- 조정된 EBITDA: 8억 6200만 달러(-5.8% 전년 대비)
- 자유 현금 흐름: 7690만 달러
회사는 수익 기회, 광섬유 침투, 운영 효율성을 통해 자유 현금 흐름 개선을 목표로 하는 전환 계획을 공개했습니다.
Altice USA (ATUS) a publié les résultats du troisième trimestre 2024 avec un chiffre d'affaires total de 2,2 milliards de dollars (-3,9% par rapport à l'année précédente) et une perte nette de 43 millions de dollars. L'entreprise a montré une forte croissance des abonnements à la fibre avec 47 000 nouvelles additions, atteignant un total de 482 000 clients fibre (+63% par rapport à l'année précédente). Les performances mobiles ont été les meilleures depuis quatre ans avec 36 000 nouveaux abonnés nets. Cependant, les pertes de PSU dans le domaine du haut débit ont atteint -50 000. Les indicateurs clés comprenaient :
- Revenus résidentiels : 1,7 milliard de dollars (-5,6% par rapport à l'année précédente)
- Revenus des services aux entreprises : 366,4 millions de dollars (-0,1% par rapport à l'année précédente)
- EBITDA ajusté : 862 millions de dollars (-5,8% par rapport à l'année précédente)
- Flux de trésorerie libre : 76,9 millions de dollars
L'entreprise a dévoilé un plan de transformation visant à améliorer le flux de trésorerie libre grâce à des opportunités de revenus, à la pénétration de la fibre et à l'efficacité opérationnelle.
Altice USA (ATUS) berichtete über die Ergebnisse des 3. Quartals 2024 mit einem Gesamtumsatz von 2,2 Milliarden Dollar (-3,9% im Vergleich zum Vorjahr) und einem Nettoverlust von 43 Millionen Dollar. Das Unternehmen zeigte ein starkes Wachstum im Bereich Glasfaser mit 47.000 neuen Glasfaser-Kunden und erreichte insgesamt 482.000 Glasfaserkunden (+63% im Vergleich zum Vorjahr). Die Mobilfunkleistung war die beste seit vier Jahren mit 36.000 Netto-Neuzugängen. Allerdings gab es im Bereich Breitband einen Verlust von -50.000 PSUs. Wichtige Kennzahlen beinhalteten:
- Wohnumsatz: 1,7 Milliarden Dollar (-5,6% im Vergleich zum Vorjahr)
- Umsatz im Geschäftskundensegment: 366,4 Millionen Dollar (-0,1% im Vergleich zum Vorjahr)
- Bereinigtes EBITDA: 862 Millionen Dollar (-5,8% im Vergleich zum Vorjahr)
- Freier Cashflow: 76,9 Millionen Dollar
Das Unternehmen stellte einen Transformationsplan vor, der auf eine Verbesserung des freien Cashflows durch Einnahmequellen, Glasfaserpenetration und betriebliche Effizienz abzielt.
- Strong fiber customer growth with 47k net additions in Q3
- Best mobile performance in 4 years with 36k net adds
- News and Advertising revenue increased 9.5% YoY to $117.7M
- Service call rate improved by 11% YoY
- Service visit repeat rate improved by 28% YoY
- Total revenue declined 3.9% YoY to $2.2B
- Net loss of $43M compared to $66.8M profit in Q3 2023
- Residential revenue decreased 5.6% YoY
- Broadband net losses of 50k subscribers
- Adjusted EBITDA declined 5.8% YoY
Insights
The Q3 2024 results reveal concerning trends for Altice USA. Key metrics show revenue declined
However, there are some positive developments: Fiber customer growth remains strong with +47k net adds, mobile lines increased by 36k (best in 4 years) and News/Advertising revenue grew
The high debt level remains a significant concern, with consolidated net leverage at 7.1x EBITDA and a weighted average cost of debt of
The fiber strategy shows promise but faces execution challenges. While fiber customers grew
Network improvements are delivering results with service call rates down
Strong Fiber Growth; Increased Fiber Migrations and Fiber Penetration
Best Mobile Performance in Four Years
Continued Progress in Enhancing and Expanding Our Networks
Unveiled Transformation Plan to Unlock Key Free Cash Flow Opportunities
Dennis Mathew, Altice USA Chairman and Chief Executive Officer, said: "Over the last two years, we’ve made significant progress in strengthening our networks, stabilizing our operations, and setting a strong foundation for long-term growth. These efforts have resulted in positive momentum across our fiber and mobile product lines in the third quarter. Our focus remains on transforming our business for future growth with significant revenue opportunities, including expanding our advanced product portfolio, increasing penetration of our best-in-class fiber network, and driving operational efficiencies with a sustainable capital structure. Executing on these goals will drive free cash flow, increase shareholder value and support sustainable long-term growth over time.”
Third Quarter 2024 Financial Overview
-
Total revenue of
$2.2 billion 3.9% year over year) -
Residential revenue of
$1.7 billion 5.6% year over year) -
Residential revenue per user (“ARPU”)(1) of
$135.77 1.9% year over year) -
Business Services revenue of
$366.4 million 0.1% year over year) -
News and Advertising revenue of
$117.7 million 9.5% year over year) -
Net income (loss) attributable to stockholders of
( ($43.0) million $(0.09) $66.8 million $0.15 -
Net cash flows from operating activities of
$436.0 million $474.5 million -
Adjusted EBITDA(2) of
$862.0 million 5.8% year over year), and margin of38.7% -
Cash capital expenditures of
$359.2 million 1.7% year over year) and Capital intensity(3) of16.1% (13.1% excluding fiber and new builds)-
We remained disciplined on capital spend over the course of the year and now anticipate cash capital expenditures of
$1.5 billion $200 million dollar
-
We remained disciplined on capital spend over the course of the year and now anticipate cash capital expenditures of
-
Free Cash Flow(2) of
$76.9 million $115 million
year over year
Third Quarter 2024 Key Operational Highlights
-
Strong Fiber Net Adds Reaching 482k Fiber Customers, a +
63% Increase in Total Fiber Customers Compared to Q3 2023-
Fiber customer growth continued in Q3 2024 with +47k fiber net additions, of which
73% were driven by migrations of existing customers -
Fiber network penetration reached
16.6% at the end of Q3 2024, up from10.8% at the end of Q3 2023
-
Fiber customer growth continued in Q3 2024 with +47k fiber net additions, of which
-
Mobile Line Net Adds of +36k in Q3 2024, Representing the Highest Mobile Line Net Adds in Four Years; Reaching 420k Lines
- Optimum Mobile line net additions of +36k in Q3 2024, compared to +24k in Q3 2023
-
5.2% of broadband base converged with mobile(4) at the end of Q3 2024, up from3.2% at the end of Q3 2023
-
Strengthening Our Go-To-Market Strategy to Leverage Convergence Opportunities
- Simplified product offers and base management strategy to drive convergence and provide customers more value
- Evolved our video model with the introduction of new TV packages -- Entertainment TV, Extra TV, & Everything TV -- which drive higher margins via mutually beneficial programming agreements, offer consumers more content flexibility and are available alongside a customer's favorite streaming services via Optimum Stream
-
Total Broadband Primary Service Units (PSUs) Net Losses of -50k(5)
- Broadband net losses were -50k(5) in Q3 2024, compared to -31k in Q3 2023
- Performance was driven by continued low levels of switching activity, competitive pressures across our footprint, and muted trends in the income-constrained segment, including elevated non-pay disconnects from prior ACP subscribers
-
Continued Progress in Delivering on Multi-Year Network Strategy; Reaching Nearly 3 million Fiber Passings
- Fiber passings additions of +52k in Q3 2024, reaching 2.9 million fiber passings, and targeting approximately 3 million fiber passings by year-end 2024
- Total passings additions of +38k in Q3 2024, reaching 9.8 million total passings, and targeting over 175k additional passings in full year 2024
-
Capital intensity(3) of
16.1% in Q3 2024 compared to15.2% in Q3 2023 -
Service call rate(6) improved by
11% year over year in Q3 2024 -
Service visit repeat rate(7) improved by
28% year over year in Q3 2024 -
Achieved approximately
99% node health across our entire footprint in Q3 2024 through enhanced node monitoring and proactive maintenance - Deploying new digital modulation technologies on our DOCSIS 3.1 HFC network to improve broadband performance with over 3 million customers expected to benefit from better speed attainability and reliability this year
Opportunities to Improve Free Cash Flow(2) Over Time
-
Revenue Opportunities
- Improve broadband subscriber trends
- Reach 1 million+ mobile lines by year-end 2027
- Launch additional high margin value-added services
- Expand B2B product portfolio and scalable solutions
-
Fiber Penetration
- Maximize asset value and competitive positioning
- Accelerate growth of fiber base with plans to achieve 1 million+ fiber subscribers by year-end 2026
-
Deliver
30% + fiber penetration year-end 2026
-
Operational Efficiency
-
Achieve gross margin of ~
70% by year-end 2026 -
Improve other operating expenses(8) by 4
-6% by year-end 2026 -
Return normalized Adjusted EBITDA(2) margins to ~
40%
-
Achieve gross margin of ~
-
Sustainable Capital Structure
- Sufficient liquidity to support long-term operational roadmap
-
Deliver annual capex under
$1.3b n - Maintain positive annual Free Cash Flow(2)
Balance Sheet Review as of September 30, 2024
-
Net debt(9) for CSC Holdings, LLC Restricted Group was
$23,180 million -
The weighted average cost of debt for CSC Holdings, LLC Restricted Group was
6.9% and the weighted average life of debt was 4.4 years
-
The weighted average cost of debt for CSC Holdings, LLC Restricted Group was
-
Net debt(9) for Cablevision Lightpath LLC was
$1,410 million -
The weighted average cost of debt for Cablevision Lightpath LLC was
5.4% and the weighted average life of debt was 3.3 years
-
The weighted average cost of debt for Cablevision Lightpath LLC was
-
Consolidated net debt(9) for Altice USA was
$24,564 million -
The weighted average cost of debt for consolidated Altice USA was
6.8% and the weighted average life of debt was 4.3 years
-
The weighted average cost of debt for consolidated Altice USA was
Shares Outstanding
- As of September 30, 2024, Altice USA had 461,189,373 combined shares of Class A and Class B common stock outstanding
Customer Metrics
|
|
|
|
|
|
|
|
|
|
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
FY-23 |
Q1-24 |
Q2-24 |
Q3-24 |
Total Passings(11) |
9,512.2 |
9,578.6 |
9,609.0 |
9,628.7 |
9,628.7 |
9,679.3 |
9,746.4 |
9,784.7 |
Total Passings additions |
48.4 |
66.4 |
30.4 |
19.7 |
164.9 |
50.6 |
67.2 |
38.3 |
Total Customer Relationships(5)(12)(13) |
|
|
|
|
|
|
|
|
Residential |
4,472.4 |
4,429.5 |
4,391.5 |
4,363.1 |
4,363.1 |
4,326.8 |
4,272.3 |
4,217.5 |
SMB |
380.9 |
381.0 |
381.1 |
380.3 |
380.3 |
379.7 |
379.7 |
378.4 |
Total Unique Customer Relationships |
4,853.3 |
4,810.5 |
4,772.6 |
4,743.5 |
4,743.5 |
4,706.5 |
4,652.0 |
4,595.9 |
Residential net additions (losses) |
(26.1) |
(42.9) |
(38.0) |
(28.4) |
(135.4) |
(36.3) |
(54.5) |
(54.8) |
Business Services net additions (losses) |
(0.3) |
0.1 |
0.1 |
(0.8) |
(0.9) |
(0.7) |
0.0 |
(1.2) |
Total customer net additions (losses) |
(26.4) |
(42.7) |
(37.9) |
(29.2) |
(136.2) |
(37.0) |
(54.5) |
(56.1) |
Residential PSUs(5) |
|
|
|
|
|
|
|
|
Broadband |
4,263.7 |
4,227.0 |
4,196.0 |
4,169.0 |
4,169.0 |
4,139.7 |
4,088.7 |
4,039.5 |
Video |
2,380.5 |
2,312.2 |
2,234.6 |
2,172.4 |
2,172.4 |
2,094.7 |
2,021.9 |
1,944.8 |
Telephony |
1,703.5 |
1,640.8 |
1,572.7 |
1,515.3 |
1,515.3 |
1,452.1 |
1,391.1 |
1,326.0 |
Broadband net additions (losses) |
(19.2) |
(36.8) |
(31.0) |
(27.0) |
(113.9) |
(29.4) |
(51.0) |
(49.2) |
Video net additions (losses) |
(58.6) |
(68.3) |
(77.6) |
(62.2) |
(266.7) |
(77.7) |
(72.8) |
(77.0) |
Telephony net additions (losses) |
(60.6) |
(62.7) |
(68.1) |
(57.4) |
(248.9) |
(63.1) |
(61.1) |
(65.1) |
Residential ARPU ($)(1) |
135.32 |
137.44 |
138.42 |
136.01 |
136.80 |
135.67 |
135.95 |
135.77 |
SMB PSUs |
|
|
|
|
|
|
|
|
Broadband |
349.0 |
349.1 |
349.4 |
348.9 |
348.9 |
348.5 |
348.8 |
347.7 |
Video |
95.3 |
93.7 |
91.9 |
89.6 |
89.6 |
87.3 |
85.4 |
83.3 |
Telephony |
210.0 |
208.0 |
205.9 |
203.2 |
203.2 |
200.7 |
199.2 |
196.8 |
Broadband net additions (losses) |
(0.1) |
0.1 |
0.3 |
(0.5) |
(0.2) |
(0.4) |
0.3 |
(1.1) |
Video net additions (losses) |
(2.0) |
(1.6) |
(1.8) |
(2.3) |
(7.7) |
(2.3) |
(1.9) |
(2.1) |
Telephony net additions (losses) |
(2.3) |
(2.0) |
(2.1) |
(2.6) |
(9.1) |
(2.6) |
(1.4) |
(2.4) |
Total Mobile Lines(14) |
|
|
|
|
|
|
|
|
Mobile ending lines |
247.9 |
264.2 |
288.2 |
322.2 |
322.2 |
351.6 |
384.5 |
420.1 |
Mobile ending lines excluding free service |
223.3 |
257.9 |
288.1 |
322.2 |
322.2 |
351.6 |
384.5 |
420.1 |
Mobile line net additions |
7.6 |
16.3 |
24.1 |
34.0 |
82.0 |
29.3 |
33.0 |
35.5 |
Mobile line net additions ex-free service |
14.6 |
34.6 |
30.3 |
34.1 |
113.5 |
29.3 |
33.0 |
35.5 |
Fiber (“FTTH”) Customer Metrics
|
|
|
|
|
|
|
|
|
|
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
FY-23 |
Q1-24 |
Q2-24 |
Q3-24 |
FTTH Total Passings(15) |
2,373.0 |
2,659.5 |
2,720.2 |
2,735.2 |
2,735.2 |
2,780.0 |
2,842.0 |
2,893.7 |
FTTH Total Passing additions |
214.2 |
286.6 |
60.7 |
14.9 |
576.4 |
44.8 |
62.0 |
51.7 |
FTTH Residential customer relationships |
207.2 |
245.9 |
289.3 |
333.8 |
333.8 |
385.2 |
422.7 |
468.5 |
FTTH SMB customer relationships |
2.7 |
3.9 |
5.7 |
7.6 |
7.6 |
9.4 |
11.4 |
13.1 |
FTTH Total Customer Relationships(16) |
209.9 |
249.7 |
295.1 |
341.4 |
341.4 |
394.6 |
434.1 |
481.6 |
FTTH Residential net additions |
37.2 |
38.6 |
43.4 |
44.5 |
163.8 |
51.4 |
37.5 |
45.7 |
FTTH SMB net additions |
0.9 |
1.2 |
1.9 |
1.8 |
5.8 |
1.9 |
2.0 |
1.7 |
FTTH Total Customer Net Additions |
38.1 |
39.8 |
45.3 |
46.3 |
169.7 |
53.2 |
39.5 |
47.4 |
Altice |
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Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
|
|
|
|
|
|
||||
Revenue: |
|
|
|
|
|
||||||
Broadband |
$ |
913,417 |
|
$ |
961,751 |
|
$ |
2,745,400 |
|
$ |
2,884,661 |
Video |
|
715,117 |
|
|
775,818 |
|
|
2,210,156 |
|
|
2,321,557 |
Telephony |
|
69,877 |
|
|
73,640 |
|
|
212,545 |
|
|
227,390 |
Mobile |
|
30,563 |
|
|
20,320 |
|
|
82,935 |
|
|
53,993 |
Residential revenue |
|
1,728,974 |
|
|
1,831,529 |
|
|
5,251,036 |
|
|
5,487,601 |
Business services and wholesale |
|
366,355 |
|
|
366,852 |
|
|
1,100,506 |
|
|
1,095,197 |
News and Advertising |
|
117,682 |
|
|
107,484 |
|
|
328,687 |
|
|
319,686 |
Other |
|
14,689 |
|
|
11,335 |
|
|
39,161 |
|
|
32,968 |
Total revenue |
|
2,227,700 |
|
|
2,317,200 |
|
|
6,719,390 |
|
|
6,935,452 |
Operating expenses: |
|
|
|
|
|
|
|
||||
Programming and other direct costs |
|
711,330 |
|
|
750,538 |
|
|
2,174,677 |
|
|
2,284,537 |
Other operating expenses |
|
674,564 |
|
|
667,278 |
|
|
2,019,356 |
|
|
1,974,651 |
Restructuring, impairments and other operating items |
|
10,871 |
|
|
4,453 |
|
|
15,525 |
|
|
39,303 |
Depreciation and amortization (including impairments) |
|
386,342 |
|
|
402,366 |
|
|
1,170,503 |
|
|
1,237,283 |
Operating income |
|
444,593 |
|
|
492,565 |
|
|
1,339,329 |
|
|
1,399,678 |
Other income (expense): |
|
|
|
|
|
|
|
||||
Interest expense, net |
|
(448,168) |
|
|
(420,216) |
|
|
(1,328,264) |
|
|
(1,216,203) |
Gain on investments and sale of affiliate interests, net |
|
— |
|
|
— |
|
|
292 |
|
|
192,010 |
Loss on derivative contracts, net |
|
— |
|
|
— |
|
|
— |
|
|
(166,489) |
Gain (loss) on interest rate swap contracts, net |
|
(45,657) |
|
|
31,972 |
|
|
10,220 |
|
|
78,708 |
Gain (loss) on extinguishment of debt and write-off of deferred financing costs |
|
— |
|
|
— |
|
|
(7,035) |
|
|
4,393 |
Other income (loss), net |
|
(1,495) |
|
|
(1,470) |
|
|
(4,526) |
|
|
7,165 |
Income (loss) before income taxes |
|
(50,727) |
|
|
102,851 |
|
|
10,016 |
|
|
299,262 |
Income tax benefit (expense) |
|
9,892 |
|
|
(27,336) |
|
|
(42,045) |
|
|
(106,433) |
Net income (loss) |
|
(40,835) |
|
|
75,515 |
|
|
(32,029) |
|
|
192,829 |
Net income attributable to noncontrolling interests |
|
(2,135) |
|
|
(8,676) |
|
|
(16,773) |
|
|
(21,825) |
Net income (loss) attributable to Altice USA stockholders |
$ |
(42,970) |
|
$ |
66,839 |
|
$ |
(48,802) |
|
$ |
171,004 |
Basic net income (loss) per share |
$ |
(0.09) |
|
$ |
0.15 |
|
$ |
(0.11) |
|
$ |
0.38 |
Diluted net income (loss) per share |
$ |
(0.09) |
|
$ |
0.15 |
|
$ |
(0.11) |
|
$ |
0.38 |
Basic weighted average common shares |
|
460,626 |
|
|
454,730 |
|
|
459,335 |
|
|
454,702 |
Diluted weighted average common shares |
|
460,626 |
|
|
455,076 |
|
|
459,335 |
|
|
455,118 |
Altice |
|||||
|
Nine Months Ended September 30, |
||||
|
2024 |
|
2023 |
||
Cash flows from operating activities: |
|
|
|
||
Net income (loss) |
$ |
(32,029) |
|
$ |
192,829 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||
Depreciation and amortization (including impairments) |
|
1,170,503 |
|
|
1,237,283 |
Gain on investments and sale of affiliate interests, net |
|
(292) |
|
|
(192,010) |
Loss on derivative contracts, net |
|
— |
|
|
166,489 |
Loss (gain) on extinguishment of debt and write-off of deferred financing costs |
|
7,035 |
|
|
(4,393) |
Amortization of deferred financing costs and discounts (premiums) on indebtedness |
|
15,470 |
|
|
26,334 |
Share-based compensation |
|
50,351 |
|
|
29,368 |
Deferred income taxes |
|
(7,129) |
|
|
(187,295) |
Decrease in right-of-use assets |
|
33,729 |
|
|
34,633 |
Allowance for credit losses |
|
68,433 |
|
|
62,148 |
Other |
|
5,469 |
|
|
9,406 |
Change in operating assets and liabilities, net of effects of acquisitions and dispositions: |
|
|
|
||
Accounts receivable, trade |
|
(24,721) |
|
|
(29,403) |
Prepaid expenses and other assets |
|
(127,820) |
|
|
(76,862) |
Amounts due from and due to affiliates |
|
(45,700) |
|
|
56,193 |
Accounts payable and accrued liabilities |
|
(89,539) |
|
|
(2,374) |
Deferred revenue |
|
8,589 |
|
|
9,531 |
Interest rate swap contracts |
|
110,130 |
|
|
(1,692) |
Net cash provided by operating activities |
|
1,142,479 |
|
|
1,330,185 |
Cash flows from investing activities: |
|
|
|
||
Capital expenditures |
|
(1,042,975) |
|
|
(1,409,561) |
Payments for acquisitions, net of cash acquired |
|
(5,748) |
|
|
— |
Other, net |
|
2,743 |
|
|
(1,677) |
Net cash used in investing activities |
|
(1,045,980) |
|
|
(1,411,238) |
Cash flows from financing activities: |
|
|
|
||
Proceeds from long-term debt |
|
3,875,000 |
|
|
2,350,000 |
Repayment of debt |
|
(3,891,175) |
|
|
(2,215,112) |
Proceeds from derivative contracts in connection with the settlement of collateralized debt |
|
— |
|
|
38,902 |
Principal payments on finance lease obligations |
|
(99,426) |
|
|
(112,795) |
Payment related to acquisition of a noncontrolling interest |
|
(7,261) |
|
|
(7,035) |
Additions to deferred financing costs |
|
(18,936) |
|
|
— |
Other, net |
|
(6,345) |
|
|
(8,521) |
Net cash provided by (used in) financing activities |
|
(148,143) |
|
|
45,439 |
Net decrease in cash and cash equivalents |
|
(51,644) |
|
|
(35,614) |
Effect of exchange rate changes on cash and cash equivalents |
|
(403) |
|
|
(1,482) |
Net decrease in cash and cash equivalents |
|
(52,047) |
|
|
(37,096) |
Cash, cash equivalents and restricted cash at beginning of year |
|
302,338 |
|
|
305,751 |
Cash, cash equivalents and restricted cash at end of period |
$ |
250,291 |
|
$ |
268,655 |
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, impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees). We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue.
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 our operating performance. 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 our 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
We also use Free Cash Flow (defined as net cash flows from operating activities less cash capital expenditures) as a liquidity measure. We believe this measure is useful to investors in evaluating our ability to service our debt and make continuing investments with internally generated funds, although it may not be directly comparable to similar measures reported by other companies.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
|
|||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
|
|
|
|
|
|
||||
Net income (loss) |
$ |
(40,835) |
|
$ |
75,515 |
|
$ |
(32,029) |
|
$ |
192,829 |
Income tax expense (benefit) |
|
(9,892) |
|
|
27,336 |
|
|
42,045 |
|
|
106,433 |
Other loss (income), net |
|
1,495 |
|
|
1,470 |
|
|
4,526 |
|
|
(7,165) |
Loss (gain) on interest rate swap contracts, net |
|
45,657 |
|
|
(31,972) |
|
|
(10,220) |
|
|
(78,708) |
Loss on derivative contracts, net |
|
— |
|
|
— |
|
|
— |
|
|
166,489 |
Gain on investments and sale of affiliate interests, net |
|
— |
|
|
— |
|
|
(292) |
|
|
(192,010) |
Loss (gain) on extinguishment of debt and write-off of deferred financing costs |
|
— |
|
|
— |
|
|
7,035 |
|
|
(4,393) |
Interest expense, net |
|
448,168 |
|
|
420,216 |
|
|
1,328,264 |
|
|
1,216,203 |
Depreciation and amortization |
|
386,342 |
|
|
402,366 |
|
|
1,170,503 |
|
|
1,237,283 |
Restructuring, impairments and other operating items |
|
10,871 |
|
|
4,453 |
|
|
15,525 |
|
|
39,303 |
Share-based compensation |
|
20,170 |
|
|
16,115 |
|
|
50,351 |
|
|
29,368 |
Adjusted EBITDA |
|
861,976 |
|
|
915,499 |
|
|
2,575,708 |
|
|
2,705,632 |
Adjusted EBITDA margin |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net cash flow from operating activities to Free Cash Flow (Deficit)
|
|||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
|
|
|
|
|
|
||||
Net cash flows from operating activities |
$ |
436,024 |
|
$ |
474,498 |
|
$ |
1,142,479 |
|
$ |
1,330,185 |
Less: Capital expenditures (cash) |
|
359,159 |
|
|
353,219 |
|
|
1,042,975 |
|
|
1,409,561 |
Free Cash Flow (Deficit) |
$ |
76,865 |
|
$ |
121,279 |
|
$ |
99,504 |
|
$ |
(79,376) |
Consolidated Net Debt as of September 30, 2024
|
|
|
|
|
|
CSC Holdings, LLC Restricted Group |
Principal
|
|
Coupon /
|
|
Maturity |
Drawn RCF |
|
|
SOFR+ |
|
2027 |
Term Loan B-5 |
2,865 |
|
L+ |
|
2027 |
Term Loan B-6 |
1,972 |
|
SOFR+ |
|
2028(18) |
Guaranteed Notes |
1,310 |
|
|
|
2027 |
Guaranteed Notes |
1,000 |
|
|
|
2028 |
Guaranteed Notes |
1,000 |
|
|
|
2028 |
Guaranteed Notes |
2,050 |
|
|
|
2029 |
Guaranteed Notes |
1,750 |
|
|
|
2029 |
Guaranteed Notes |
1,100 |
|
|
|
2030 |
Guaranteed Notes |
1,000 |
|
|
|
2031 |
Guaranteed Notes |
1,500 |
|
|
|
2031 |
Senior Notes |
1,046 |
|
|
|
2028 |
Legacy unexchanged Cequel Notes |
4 |
|
|
|
2028 |
Senior Notes |
2,250 |
|
|
|
2030 |
Senior Notes |
2,325 |
|
|
|
2030 |
Senior Notes |
500 |
|
|
|
2031 |
CSC Holdings, LLC Restricted Group Gross Debt |
23,372 |
|
|
|
|
CSC Holdings, LLC Restricted Group Cash |
(192) |
|
|
|
|
CSC Holdings, LLC Restricted Group Net Debt |
|
|
|
|
|
|
|
|
|
|
|
CSC Holdings, LLC Restricted Group Undrawn RCF |
|
|
|
|
|
Cablevision Lightpath LLC |
Principal
|
|
Coupon /
|
|
Maturity |
Drawn RCF(19) |
$— |
|
SOFR+ |
|
|
Term Loan |
578 |
|
SOFR+ |
|
2027 |
Senior Secured Notes |
450 |
|
|
|
2027 |
Senior Notes |
415 |
|
|
|
2028 |
Cablevision Lightpath Gross Debt |
1,443 |
|
|
|
|
Cablevision Lightpath Cash |
(32) |
|
|
|
|
Cablevision Lightpath Net Debt |
|
|
|
|
|
|
|
|
|
|
|
Cablevision Lightpath Undrawn RCF |
|
|
|
|
|
Net Leverage Schedules as of September 30, 2024
|
|||||||
|
|
|
|
|
|
|
|
|
CSC Holdings
|
|
Cablevision
|
|
CSC Holdings
|
|
Altice USA
|
|
|
|
|
|
|
|
|
Gross Debt Consolidated(22) |
|
|
|
|
|
|
|
Cash |
(192) |
|
(32) |
|
(240) |
|
(250) |
Net Debt Consolidated(9) |
|
|
|
|
|
|
|
LTM EBITDA |
|
|
|
|
|
|
|
L2QA EBITDA |
|
|
|
|
|
|
|
Net Leverage (LTM) |
7.2x |
|
5.7x |
|
7.1x |
|
7.1x |
Net Leverage (L2QA)(10) |
7.2x |
|
5.7x |
|
7.1x |
|
7.1x |
WACD (%) |
|
|
|
|
|
|
|
Reconciliation to Financial Reported Debt |
|
|
Altice USA
|
Total Debenture and Loans from Financial Institutions (Carrying Amount) |
|
Unamortized financing costs and discounts, net of unamortized premiums |
48 |
Gross Debt Consolidated(22) |
24,814 |
Finance leases and other notes |
286 |
Total Debt |
25,100 |
Cash |
(250) |
Net Debt |
|
(1) |
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. |
|
(2) |
See “Reconciliation of Non-GAAP Financial Measures” beginning on page 7 of this earnings release. |
|
(3) |
Capital intensity refers to total cash capital expenditures as a percentage of total revenue. |
|
(4) |
Broadband base converged with mobile is expressed as the percentage of customers subscribing to both broadband and mobile services divided by the total broadband customer base. Excludes mobile only customers. |
|
(5) |
Customer metrics as of September 30, 2024 reflect adjustments to align to the Company’s bulk residential subscriber count policy, resulting in an increase of 4.7 thousand residential customer relationships, 3.8 thousand broadband customers and 5.2 thousand video customers. The impact of these adjustments to customer relationships, broadband and video customer net additions was not material for any period presented and as such prior period metrics were not restated. |
|
(6) |
Service call rate represents technical, care and support calls per customer. |
|
(7) |
Service visit repeat rate represents the number of repeat visits or truck rolls per customer within 30 days. |
|
(8) |
Other Operating Expenses exclude programming and direct costs, depreciation and amortization, share-based compensation, restructuring, impairments and other operating items. |
|
(9) |
Net debt, defined as the principal amount of debt less cash, and excluding finance leases and other notes. |
|
(10) |
L2QA leverage is calculated as quarter end net leverage divided by the last two quarters of Adjusted EBITDA annualized. |
|
(11) |
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. |
|
(12) |
Total Unique Customer Relationships represent the number of households/businesses that receive at least one of our 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 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. |
|
(13) |
Total Customer Relationship metrics do not include mobile-only customers. |
|
(14) |
Mobile ending lines include lines receiving free service. Mobile ending lines excluding free service 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. |
|
(15) |
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. |
|
(16) |
Represents number of households/businesses that receive at least one of our 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 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. |
|
(17) |
The Incremental Term Loan B-5 bears interest at a rate equal to Synthetic USD London Interbank Offered Rate ("LIBOR") plus |
|
(18) |
The Incremental 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 Incremental Term Loan B-5 borrowings are still outstanding, unless the Incremental Term Loan B-5 maturity date has been extended to a date falling after January 15, 2028. |
|
(19) |
Under the extension amendment to the Lightpath credit agreement entered into in February 2024, |
|
(20) |
CSC Holdings, LLC Restricted Group excludes the unrestricted subsidiaries, primarily Cablevision Lightpath LLC and NY Interconnect, LLC. |
|
(21) |
CSC Holdings Consolidated includes the CSC Holdings, LLC Restricted Group and the unrestricted subsidiaries. |
|
(22) |
Principal amount of debt excluding finance leases and other notes. |
|
| Certain numerical information is presented on a rounded basis. 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
FORWARD-LOOKING STATEMENTS
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, our revenue streams, results of operations and liquidity, including Free Cash Flow; our strategy, objectives, prospects, trends, service and operational improvements, capital expenditure plans, broadband, fiber, video and mobile growth, product offerings and passings; our ability to achieve operational performance improvements; our ability to achieve near and longer term revenue, penetration, operational efficiency and capital structure opportunities (including mobile lines, fiber subscribers, fiber penetration, gross margin, operating expenses, EBITDA margins, annual capital expenditures, and annual Free Cash Flow); 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 without limitation the terms “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “opportunity”, “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, 2023 and subsequent Quarterly 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/20241104860652/en/
Investor Relations
John Hsu: +1 917 405 2097 / john.hsu@alticeusa.com
Sarah Freedman: +1 631 660 8714 / sarah.freedman@alticeusa.com
Media Relations
Lisa Anselmo: +1 516 279 9461 / lisa.anselmo@alticeusa.com
Janet Meahan: +1 516 519 2353 / janet.meahan@alticeusa.com
Source: Altice USA
FAQ
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