Mediacom Reports Fourth Quarter and Full Year 2021 Results

Marks Historic Achievement of 100^th Consecutive Quarter of Revenue Growth

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, 2021.

The company’s fourth quarter performance marks Mediacom’s 100^th consecutive quarter of year-over-year revenue growth, a remarkable accomplishment achieved possibly by only a handful of companies in the modern history of American business.

In honor of this significant milestone, Rocco B. Commisso, Mediacom’s founder, Chairman and CEO has issued a commemorative letter to be read in connection with the earnings release. A copy of the Chairman’s Letter can be found at http://mediacomcable.com/about/news/chairmans-letter-2022/

Mediacom Combined Results for Fourth Quarter 2021*

• Revenues were $561.2 million, a 2.2% increase from the prior year period
  • Revenues, excluding advertising, increased 5.7% from the prior year period
• Adjusted OIBDA was $266.9 million, an 8.2% increase from the prior year period
  • Adjusted OIBDA, excluding advertising, increased 15.2% from the prior year period
• After-tax free cash flow was $136.2 million, a 7.6% decrease from the prior year period
  • Income taxes were $27.8 million, compared to $3.9 million during the prior year period
• High-speed data customers were 1,463,000, a 1.7% increase from December 31, 2020
• Net debt of $1.232 billion, a $482 million reduction from December 31, 2020
• Net leverage ratio of 1.15x, compared to 1.74x at December 31, 2020

Mediacom Combined Results for Full Year 2021*

• Revenues were $2.223 billion, a 4.3% increase from the prior year
  • Revenues, excluding advertising, increased 5.7% from the prior year
• Adjusted OIBDA was $1.001 billion, an 11.3% increase from the prior year
  • Adjusted OIBDA, excluding advertising, increased 14.6% from the prior year
• After-tax free cash flow was $510.1 million, a 2.3% decrease from the prior year
  • Income taxes were $128.9 million, compared to $15.7 million during the prior year

__________________________
* See Table 7 regarding our usage and definition of non-GAAP financial measures, 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,
		2021			2020		YoY% Change
High-speed data (“HSD”)	$	277,262		$	249,803		11.0%
Video		167,754			166,658		0.7%
Phone		27,270			29,280		(6.9%)
Business services		77,392			74,321		4.1%
Advertising		11,556			29,304		(60.6%)
Total revenues	$	561,234		$	549,366		2.2%
Service costs		(210,354	)		(205,690	)	2.3%
SG&A expenses		(70,839	)		(81,612	)	(13.2%)
Management fees		(14,000	)		(16,000	)	(12.5%)
OIBDA ^(a)	$	266,041		$	246,064		8.1%
Non-cash, share based compensation		907			707		28.3%
Adjusted OIBDA ^(a)	$	266,948		$	246,771		8.2%
Capital expenditures		(98,151	)		(88,595	)	10.8%
Cash interest expense ^(a)		(4,787	)		(6,807	)	(29.7%)
Income taxes ^(a)		(27,766	)		(3,927	)	NM
After-tax free cash flow ^(a)	$	136,244		$	147,442		(7.6%)
Adjusted OIBDA margin ^(b)		47.6	%		44.9	%
	December 31, 2021			December 31, 2020			YoY% Change
HSD customers		1,463,000			1,438,000		1.7%
Video customers		572,000			643,000		(11.0%)
Phone customers		537,000			586,000		(8.4%)
Primary service units (“PSUs”)		2,572,000			2,667,000		(3.6%)
HSD customer (declines) increases		(3,000	)		13,000
Video customer declines		(18,000	)		(20,000	)
Phone customer declines		(12,000	)		(13,000	)
Quarterly PSU declines		(33,000	)		(20,000	)
	December 31, 2021			December 31, 2020
Total debt ^(c)	$	1,370,000		$	1,750,000
Cash and cash equivalents		(137,782	)		(36,414	)
Net debt	$	1,232,218		$	1,713,586
Unused lines of credit ^(d)	$	722,932		$	679,606
Net leverage ratio ^(e)	1.15x			1.74x
Interest coverage ratio ^(f)	55.77x			36.25x

__________________________
* See Table 7 regarding our usage and definitions of non-GAAP financial measures, 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,
		2021			2020		YoY% Change
High-speed data (“HSD”)	$	1,078,823		$	943,988		14.3%
Video		682,354			707,510		(3.6%)
Phone		112,471			117,919		(4.6%)
Business services		307,992			294,966		4.4%
Advertising		41,171			66,841		(38.4%)
Total revenues	$	2,222,811		$	2,131,224		4.3%
Service costs		(855,687	)		(856,916	)	(0.1%)
SG&A expenses		(309,796	)		(325,259	)	(4.8%)
Management fees		(60,000	)		(53,000	)	13.2%
OIBDA ^(a)	$	997,328		$	896,049		11.3%
Non-cash, share based compensation		3,537			2,828		25.1%
Adjusted OIBDA ^(a)	$	1,000,865		$	898,877		11.3%
Capital expenditures		(339,908	)		(320,953	)	5.9%
Cash interest expense ^(a)		(21,894	)		(39,887	)	(45.1%)
Income taxes ^(a)		(128,934	)		(15,706	)	NM
After-tax free cash flow ^(a)	$	510,129		$	522,331		(2.3%)
Adjusted OIBDA margin ^(b)		45.0	%		42.2	%
	December 31, 2021			December 31, 2020			YoY% Change
HSD customers		1,463,000			1,438,000		1.7%
Video customers		572,000			643,000		(11.0%)
Phone customers		537,000			586,000		(8.4%)
Primary service units (“PSUs”)		2,572,000			2,667,000		(3.6%)
HSD customer increases		25,000			110,000
Video customer declines		(71,000	)		(67,000	)
Phone customer declines		(49,000	)		(27,000	)
Annual PSU (declines) increases		(95,000	)		16,000
	December 31, 2021			December 31, 2020
Total debt ^(c)	$	1,370,000		$	1,750,000
Cash and cash equivalents		(137,782	)		(36,414	)
Net debt	$	1,232,218		$	1,713,586
Unused lines of credit ^(d)	$	722,932		$	679,606
Net leverage ratio ^(e)	1.23x			1.91x
Interest coverage ratio ^(f)	45.71x			22.54x

__________________________
* See Table 7 regarding our usage and definitions of non-GAAP financial measures, and Table 8 for footnotes.

TABLE 3*
Mediacom Communications Corporation
Selected Combined Financial and Operating Data
(Dollars in thousands, except per unit data)
(Unaudited)
	Three Months Ended December 31, 2021
	Mediacom Broadband			Mediacom LLC			Eliminations		Mediacom Combined
High-speed data (“HSD”)	$	145,001		$	132,261		―		$	277,262
Video		89,661			78,093		―			167,754
Phone		14,330			12,940		―			27,270
Business services		46,133			31,259		―			77,392
Advertising		9,835			1,721		―			11,556
Total revenues	$	304,960		$	256,274		―		$	561,234
Service costs		(113,050	)		(97,304	)	―			(210,354	)
SG&A expenses		(42,697	)		(28,142	)	―			(70,839	)
Management fees		(8,400	)		(5,600	)	―			(14,000	)
OIBDA ^(a)	$	140,813		$	125,228		―		$	266,041
Investment income from affiliate	―				4,500		(4,500	)	―
Non-cash share-based compensation		454			453		―			907
Adjusted OIBDA ^(a)	$	141,267		$	130,181		(4,500	)	$	266,948
Capital expenditures		(42,505	)		(55,646	)	―			(98,151	)
Cash interest expense ^(a)		(3,336	)		(1,451	)	―			(4,787	)
Income taxes ^(a)		(13,668	)		(14,098	)	―			(27,766	)
Dividend to preferred members		(4,500	)	―			4,500		―
After-tax free cash flow ^(a)	$	77,258		$	58,986		―		$	136,244
	Mediacom Broadband			Mediacom LLC					Mediacom Combined
HSD customers		788,000			675,000					1,463,000
Video customers		308,000			264,000					572,000
Phone customers		289,000			248,000					537,000
Primary service units (“PSUs”)		1,385,000			1,187,000					2,572,000
HSD customer (declines) increases		(5,000	)		2,000					(3,000	)
Video customer declines		(11,000	)		(7,000	)				(18,000	)
Phone customer declines		(8,000	)		(4,000	)				(12,000	)
Quarterly PSU declines		(24,000	)		(9,000	)				(33,000	)
	Mediacom Broadband			Mediacom LLC					Mediacom Combined
Total debt ^(c)	$	878,750		$	491,250				$	1,370,000
Cash and cash equivalents		(63,243	)		(74,539	)				(137,782	)
Net debt	$	815,507		$	416,711				$	1,232,218
Unused lines of credit ^(d)	$	360,996		$	361,936				$	722,932
Net leverage ratio ^(e)	1.44x			0.80x					1.15x
Interest coverage ratio ^(f)	42.35x			89.72x					55.77x

__________________________
* See Table 7 regarding our usage and definitions of non-GAAP financial measures, and Table 8 for footnotes.

TABLE 4*
Mediacom Communications Corporation
Selected Combined Financial and Operating Data
(Dollars in thousands, except per unit data)
(Unaudited)
	Three Months Ended December 31, 2020
	Mediacom Broadband			Mediacom LLC			Eliminations		Mediacom Combined
High-speed data (“HSD”)	$	133,228		$	116,575		―		$	249,803
Video		89,272			77,386		―			166,658
Phone		15,632			13,648		―			29,280
Business services		44,617			29,704		―			74,321
Advertising		25,916			3,388		―			29,304
Total revenues	$	308,665		$	240,701		―		$	549,366
Service costs		(109,791	)		(95,899	)	―			(205,690	)
SG&A expenses		(49,611	)		(32,001	)	―			(81,612	)
Management fees		(9,600	)		(6,400	)	―			(16,000	)
OIBDA ^(a)	$	139,663		$	106,401		―		$	246,064
Investment income from affiliate	―				4,500		(4,500	)	―
Non-cash share-based compensation		385			322		―			707
Adjusted OIBDA ^(a)	$	140,048		$	111,223		(4,500	)	$	246,771
Capital expenditures		(45,832	)		(42,763	)	―			(88,595	)
Cash interest expense ^(a)		(3,214	)		(3,593	)	―			(6,807	)
Income taxes ^(a)		(2,861	)		(1,066	)	―			(3,927	)
Dividend to preferred members		(4,500	)	―			4,500		―
After-tax free cash flow ^(a)	$	83,641		$	63,801		―		$	147,442
	Mediacom Broadband			Mediacom LLC					Mediacom Combined
HSD customers		784,000			654,000					1,438,000
Video customers		350,000			293,000					643,000
Phone customers		320,000			266,000					586,000
Primary service units (“PSUs”)		1,454,000			1,213,000					2,667,000
HSD customer increases		3,000			10,000					13,000
Video customer declines		(11,000	)		(9,000	)				(20,000	)
Phone customer declines		(8,000	)		(5,000	)				(13,000	)
Quarterly PSU declines		(16,000	)		(4,000	)				(20,000	)
	Mediacom Broadband			Mediacom LLC					Mediacom Combined
Total debt ^(c)	$	905,313		$	844,688				$	1,750,000
Cash and cash equivalents		(19,008	)		(17,406	)				(36,414	)
Net debt	$	886,305		$	827,282				$	1,713,586
Unused lines of credit ^(d)	$	365,846		$	313,760				$	679,606
Net leverage ratio ^(e)	1.58x			1.86x					1.74x
Interest coverage ratio ^(f)	43.57x			30.96x					36.25x

__________________________
* See Table 7 regarding our usage and definitions of non-GAAP financial measures, and Table 8 for footnotes.
Due to rounding of Mediacom Broadband and Mediacom LLC results, slight differences may exist with actual Mediacom Combined results.

TABLE 5*
Mediacom Communications Corporation
Selected Combined Financial and Operating Data
(Dollars in thousands, except per unit data)
(Unaudited)
	Year Ended December 31, 2021
	Mediacom Broadband			Mediacom LLC			Eliminations		Mediacom Combined
High-speed data (“HSD”)	$	568,714		$	510,109		―		$	1,078,823
Video		364,097			318,257		―			682,354
Phone		59,490			52,981		―			112,471
Business services		184,047			123,945		―			307,992
Advertising		34,898			6,273		―			41,171
Total revenues	$	1,211,246		$	1,011,565		―		$	2,222,811
Service costs		(457,628	)		(398,059	)	―			(855,687	)
SG&A expenses		(186,616	)		(123,180	)	―			(309,796	)
Management fees		(36,000	)		(24,000	)	―			(60,000	)
OIBDA ^(a)	$	531,002		$	466,326		―		$	997,328
Investment income from affiliate	―				18,000		(18,000	)	―
Non-cash share-based compensation		1,769			1,768		―			3,537
Adjusted OIBDA ^(a)	$	532,771		$	486,094		(18,000	)	$	1,000,865
Capital expenditures		(164,231	)		(175,677	)	―			(339,908	)
Cash interest expense ^(a)		(13,382	)		(8,512	)	―			(21,894	)
Income taxes ^(a)		(73,028	)		(55,906	)	―			(128,934	)
Dividend to preferred members		(18,000	)	―			18,000		―
After-tax free cash flow ^(a)	$	264,130		$	245,999		―		$	510,129
	Mediacom Broadband			Mediacom LLC					Mediacom Combined
HSD customers		788,000			675,000					1,463,000
Video customers		308,000			264,000					572,000
Phone customers		289,000			248,000					537,000
Primary service units (“PSUs”)		1,385,000			1,187,000					2,572,000
HSD customer increases		4,000			21,000					25,000
Video customer declines		(42,000	)		(29,000	)				(71,000	)
Phone customer declines		(31,000	)		(18,000	)				(49,000	)
Annual PSU declines		(69,000	)		(26,000	)				(95,000	)
	Mediacom Broadband			Mediacom LLC					Mediacom Combined
Total debt ^(c)	$	878,750		$	491,250				$	1,370,000
Cash and cash equivalents		(63,243	)		(74,539	)				(137,782	)
Net debt	$	815,507		$	416,711				$	1,232,218
Unused lines of credit ^(d)	$	360,996		$	361,936				$	722,932
Net leverage ratio ^(e)	1.53x			0.86x					1.23x
Interest coverage ratio ^(f)	39.81x			57.11x					45.71x

__________________________
* See Table 7 regarding our usage and definitions of non-GAAP financial measures, and Table 8 for footnotes.

TABLE 6*
Mediacom Communications Corporation
Selected Combined Financial and Operating Data
(Dollars in thousands, except per unit data)
(Unaudited)
	Year Ended December 31, 2020
	Mediacom Broadband			Mediacom LLC			Eliminations		Mediacom Combined
High-speed data (“HSD”)	$	505,822		$	438,166		―		$	943,988
Video		380,358			327,152		―			707,510
Phone		63,213			54,706		―			117,919
Business services		177,651			117,315		―			294,966
Advertising		58,217			8,624		―			66,841
Total revenues	$	1,185,261		$	945,963		―		$	2,131,224
Service costs		(459,973	)		(396,943	)	―			(856,916	)
SG&A expenses		(197,153	)		(128,106	)	―			(325,259	)
Management fees		(31,800	)		(21,200	)	―			(53,000	)
OIBDA ^(a)	$	496,335		$	399,714		―		$	896,049
Investment income from affiliate	―				18,000		(18,000	)	―
Non-cash share-based compensation		1,509			1,319		―			2,828
Adjusted OIBDA ^(a)	$	497,844		$	419,033		(18,000	)	$	898,877
Capital expenditures		(164,959	)		(155,994	)	―			(320,953	)
Cash interest expense ^(a)		(19,462	)		(20,425	)	―			(39,887	)
Income taxes ^(a)		(11,442	)		(4,264	)	―			(15,706	)
Dividend to preferred members		(18,000	)	―			18,000		―
Free cash flow ^(a)	$	283,981		$	238,350		―		$	522,331
	Mediacom Broadband			Mediacom LLC					Mediacom Combined
HSD customers		784,000			654,000					1,438,000
Video customers		350,000			293,000					643,000
Phone customers		320,000			266,000					586,000
Primary service units (“PSUs”)		1,454,000			1,213,000					2,667,000
HSD customer increases		52,000			58,000					110,000
Video customer declines		(39,000	)		(28,000	)				(67,000	)
Phone customer declines		(18,000	)		(9,000	)				(27,000	)
Annual PSU (declines) increases		(5,000	)		21,000					16,000
	Mediacom Broadband			Mediacom LLC					Mediacom Combined
Total debt ^(c)	$	905,313		$	844,688				$	1,750,000
Cash and cash equivalents		(19,008	)		(17,406	)				(36,414	)
Net debt	$	886,305		$	827,282				$	1,713,586
Unused lines of credit ^(d)	$	365,846		$	313,760				$	679,606
Net leverage ratio ^(e)	1.78x			1.97x					1.91x
Interest coverage ratio ^(f)	25.58x			20.52x					22.54x

__________________________
* See Table 7 regarding our usage and definitions of non-GAAP financial measures, and Table 8 for footnotes.
Due to rounding of Mediacom Broadband and Mediacom LLC results, slight differences may exist with actual Mediacom Combined results.

TABLE 7
Use of Non-GAAP Financial Measures

“OIBDA,” “Adjusted OIBDA,” “cash interest expense,” “income taxes” and “after-tax free cash flow” are not financial measures calculated in accordance with generally accepted accounting principles (“GAAP”) in the United States. We define OIBDA as operating income before depreciation and amortization and Adjusted OIBDA as OIBDA plus investment income from affiliate and excluding non-cash share-based compensation. OIBDA and Adjusted OIBDA may not be comparable to similarly titled measures used by other companies, which may have different depreciation and amortization policies, and are key components in our covenant calculations.

We define cash interest expense as interest expense, net, less amortization of deferred financing costs. Cash interest expense excludes the amortization of financing costs which were paid upon the financing of the relevant debt.

We define income taxes as the restricted payments (“RPs”) made by Mediacom Broadband LLC and Mediacom LLC to fund their pro rata share of federal and state income taxes owed by their parent company. These RPs reflected amounts that Mediacom Broadband LLC and Mediacom LLC would have incurred during the three months and full year ended December 31, 2021 and 2020, respectively, in the event they were each tax-paying corporations.

For Mediacom Broadband LLC, we define after-tax free cash flow as Adjusted OIBDA less capital expenditures, cash interest expense, income taxes and dividends to preferred members. For Mediacom LLC, we define free cash flow as Adjusted OIBDA less capital expenditures, cash interest expense and income taxes. After-tax free cash flow may not be comparable to similarly titled measures reported by other companies.

Reference to “Mediacom Combined” reflects the combined results of Mediacom Broadband LLC and Mediacom LLC, eliminating intercompany amounts between them.

TABLE 8
Footnotes

(a) See Table 7 for information regarding our usage of non-GAAP financial measures.

(b) Represents Adjusted OIBDA as a percentage of total revenues.

(c) Total debt excludes the effect of deferred financing costs, net.

(d) Represents unused and available commitments under our revolving credit facilities after giving effect to outstanding borrowings and letters of credit issued thereunder.

(e) Represents net debt at period end divided by annualized Adjusted OIBDA for the period.

(f) Represents Adjusted OIBDA divided by cash interest expense for the period.

About Mediacom

Mediacom Communications Corporation is the 5th largest cable operator in the United States and the leading gigabit broadband provider to smaller markets primarily in the Midwest and Southeast. Through its fiber-rich network, Mediacom provides high-speed data, video and phone services to 1.5 million households and businesses across 22 states. The company delivers scalable broadband solutions to commercial and public-sector customers of all sizes through Mediacom Business, and sells advertising and production services under the OnMedia brand. More information about Mediacom is available at www.mediacomcable.com.