MEDIACOM PARK, N.Y.--(BUSINESS WIRE)--MEDIACOM COMMUNICATIONS CORPORATION today released combined unaudited financial and operating highlights for the three months ended June 30, 2020.
Mediacom Combined Results for Second Quarter 2020*
- Revenues were $525.8 million, reflecting a 3.3% increase from the prior year period
- Adjusted OIBDA was $218.1 million, reflecting an 8.0% increase from the prior year period
- Free cash flow was $135.2 million, reflecting a 35.0% increase from the prior year period
- Ending high-speed data (“HSD”) customers of 1,396,000, a 7.1% increase from June 30, 2019
- Net leverage ratio of 2.28x, compared to 2.95x at June 30, 2019
- Interest coverage ratio of 24.90x, compared to 8.32x at June 30, 2019
- Average borrowing costs of 1.7%, compared to 4.0% for the prior year period
- Available cash and unused revolving credit lines exceeded $750 million at June 30, 2020
“Never in my 42-year career with the cable industry, let alone my lifetime, have I witnessed a more disastrous economic environment due to the coronavirus pandemic, where countless large and small companies filed for bankruptcy or were saved from failure by massive government assistance,” stated Rocco B. Commisso, Mediacom’s founder, Chairman and CEO. “Even global media/telecom leaders like AT&T/WarnerMedia/DirecTV, Comcast/NBCUniversal/SkyTV, and Disney/ESPN went backwards on revenues and net income or generated significant losses in their latest reporting periods. Amid this backdrop, and in stark contrast, Mediacom not only increased free cash flow by 35%, but registered its 94th consecutive quarter of year-over-year revenue growth, truly a unique and impressive accomplishment in the annals of American business.
“The immense challenges caused by this pandemic underscored the critical nature of a fast and reliable Internet connection, particularly for remote working, distance learning, telemedicine and entertainment. In retrospect, our strategic decision to invest $3 billion over the last decade to ‘future-proof’ our fiber-rich network was visionary, giving us the ability to handle the recent 35% surge in customers’ bandwidth consumption, and allowing us to attract a record 47,000 new Internet customers during the quarter.
“I could not be prouder of our employees spread over 22 states for rising above the potential health risks to service our 1.4 million Internet customers. I take even more pride in knowing that despite millions of workers in the U.S. unfortunately losing their jobs, Mediacom continued its long-standing policy of no layoffs, putting the welfare and security of our employees and their families at the very top of our priorities.
“Our financial position has never been stronger. Mediacom’s long-term bank and institutional lenders are supported by an investment-grade balance sheet and our commitment to maintain a net leverage ratio of less than 3.0x. Since year-end 2018, despite the substantial borrowings and distributions made to finance the acquisition and operations of ACF Fiorentina, we repaid over $300 million in debt, made possible by the ever-increasing cash generation capacity of Mediacom. For the full year 2020, we expect to reach free cash flow in excess of $500 million, an all-time record for our company,” concluded Mr. Commisso.
About Mediacom
Mediacom Communications Corporation is the 5th largest cable operator in the U.S. serving over 1.4 million customers in smaller markets primarily in the Midwest and Southeast. Mediacom offers a wide array of information, communications and entertainment services to households and businesses, including video, high-speed data, phone, and home security and automation. Through Mediacom Business, the company provides innovative broadband solutions to commercial and public sector customers of all sizes, and sells advertising and production services under the OnMedia brand. More information about Mediacom is available at www.mediacomcable.com.
