Mediacom Communications Reports Combined Results for Fourth Quarter and Full Year 2020

2/25/21

MEDIACOM PARK, N.Y.--(BUSINESS WIRE)--MEDIACOM COMMUNICATIONS CORPORATION today released combined unaudited financial and operating highlights for the three months and full year ended December 31, 2020.

Mediacom Combined Results for Fourth Quarter 2020*

  • Revenues were $549.4 million, a 6.9% increase from the prior year period
  • Adjusted OIBDA was $246.8 million, a 16.3% increase from the prior year period
  • Free cash flow was $151.4 million, a 24.0% increase from the prior year period
  • High-speed data (“HSD”) customers were 1,438,000, an 8.3% increase from December 31, 2019
  • Net debt of $1,713.6 billion, a $471.7 million reduction from December 31, 2019
  • Net leverage ratio of 1.74x, compared to 2.57x at December 31, 2019

Mediacom Combined Results for Full Year 2020*

  • Revenues were $2.131 billion, a 4.9% increase from the prior year period
  • Adjusted OIBDA was $898.9 million, a 11.2% increase from the prior year period
  • Free cash flow was $538.0 million, a 28.4% increase from the prior year period

“I am proud to announce record-breaking 2020 results, a truly exceptional performance in the face of the economic and operating challenges caused by the coronavirus pandemic,” stated Rocco B. Commisso, Mediacom’s founder, Chairman and Chief Executive Officer. “During the fourth quarter of 2020, not only did we achieve the 96th consecutive quarter of year-over-year revenue growth, an extraordinary feat, but Adjusted OIBDA rose 16.3% and we generated free cash flow of $151 million, both all-time records.

For full-year 2020, Adjusted OIBDA grew to $899 million, or 11.2%, representing Mediacom’s highest organic annual growth rate ever, and among the highest reported for 2020 in the U.S. telecommunications industry. Noteworthy is our ever-growing free cash flow which has enabled Mediacom to reduce debt by $600 million during the past two years, despite funding $1 billion for capital investments and the acquisition and support of ACF Fiorentina. Our outstanding financial performance strengthened the balance sheet even more, with net leverage declining to 1.7x, validating S&P’s decision to upgrade Mediacom’s credit rating to BBB investment grade in August of last year.

During these very difficult and trying times, Mediacom’s hard-working frontline employees have been critical to the mission of delivering fast and reliable broadband connections to our residential customers and their families, as well as to our commercial clients. Mediacom’s fiber-rich network performed remarkably well after COVID struck, handling significant increases in average bandwidth consumption per user and strong Internet customer growth, clearly demonstrating that our long-standing strategy of massive reinvestment in our broadband network continues to pay substantial dividends.”

* See Table 7 regarding our use of non-GAAP measures and definitions of Adjusted OIBDA and free cash flow and Table 8 for footnotes.

TABLE 1*

Mediacom Communications Corporation

Selected Combined Financial and Operating Data

(Dollars in thousands, except per unit data)

(Unaudited)

Three Months Ended December 31,

2020

2019

YoY% Change

High-speed data (“HSD”)

$

249,803

$

217,820

14.7

%

Video

166,658

178,653

(6.7

%)

Phone

29,280

29,926

(2.2

%)

Business services

74,321

72,639

2.3

%

Advertising

29,304

14,877

97.0

%

Total revenues

$

549,366

$

513,915

6.9

%

Service costs

(205,690

)

(208,791

)

(1.5

%)

SG&A expenses

(81,612

)

(81,743

)

(0.2

%)

Management fees

(16,000

)

(11,500

)

39.1

%

OIBDA (a)

$

246,064

$

211,881

16.1

%

Non-cash, share based compensation

707

385

83.6

%

Adjusted OIBDA (a)

$

246,771

$

212,266

16.3

%

Cash interest expense (a)

(6,807

)

(19,670

)

(65.4

%)

Capital expenditures

(88,595

)

(70,515

)

25.6

%

Free cash flow (a)

$

151,369

$

122,081

24.0

%

Adjusted OIBDA margin (b)

44.9

%

41.3

%

December 31, 2020

December 31, 2019

YoY% Change

HSD customers

1,438,000

1,328,000

8.3

%

Video customers

643,000

710,000

(9.4

%)

Phone customers

586,000

613,000

(4.4

%)

Primary service units (“PSUs”)

2,667,000

2,651,000

0.6

%

HSD customer increases

13,000

12,000

Video customer declines

(20,000

)

(19,000

)

Phone customer declines

(13,000

)

(3,000

)

Quarterly PSU declines

(20,000

)

(10,000

)

December 31, 2020

December 31, 2019

Total debt (c)

$

1,750,000

$

2,215,000

Cash

(36,414

)

(29,733

)

Net debt

$

1,713,586

$

2,185,267

Unused lines of credit (d)

$

679,606

$

628,823

Net leverage ratio (e)

1.74x

2.57x

Interest coverage ratio (f)

36.25x

10.79x

_______________

* See Table 7 for information about our use of non-GAAP measures and definitions of OIBDA, Adjusted OIBDA and free cash flow and Table 8 for footnotes.

TABLE 2*

Mediacom Communications Corporation

Selected Combined Financial and Operating Data

(Dollars in thousands, except per unit data)

(Unaudited)

Year Ended December 31,

2020

2019

YoY% Change

High-speed data (“HSD”)

$

943,988

$

840,958

12.3

%

Video

707,510

738,542

(4.2

%)

Phone

117,919

119,145

(1.0

%)

Business services

294,966

285,403

3.4

%

Advertising

66,841

47,192

41.6

%

Total revenues

$

2,131,224

$

2,031,240

4.9

%

Service costs

(856,916

)

(854,862

)

0.2

%

SG&A expenses

(325,259

)

(325,881

)

(0.2

%)

Management fees

(53,000

)

(44,000

)

20.5

%

OIBDA (a)

$

896,049

$

806,497

11.1

%

Non-cash, share based compensation

2,828

1,539

83.8

%

Adjusted OIBDA (a)

$

898,877

$

808,036

11.2

%

Cash interest expense (a)

(39,887

)

(92,524

)

(56.9

%)

Capital expenditures

(320,953

)

(296,597

)

8.2

%

Free cash flow (a)

$

538,037

$

418,915

28.4

%

Adjusted OIBDA margin (b)

42.2

%

39.8

%

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