NEW YORK–(BUSINESS WIRE)–Altice USA (NYSE: ATUS) today reports results for the fourth quarter and full year ended December 31, 2020.
Dexter Goei, Altice USA Chief Executive Officer, said: “I could not be more proud of the Altice USA team for its perseverance and dedication during such an unparalleled year. Our team’s unrelenting focus on serving both our customers and broader community has allowed us to achieve spectacular results in a number of areas, including record broadband customer gains, solid revenue growth, best-ever Adjusted EBITDA margins and highest-ever annual Free Cash Flow. We also returned $4.8 billion to shareholders for the full year through share repurchases. I am pleased to cap off a tremendous 2020 with yet another strong quarter, which makes us well-positioned for 2021.”
Key Financial Highlights
- Total Revenue grew 2.5% YoY in Q4 2020 to $2.54 billion (or up +3.2% YoY adjusted for anticipated RSN credits(1), and up +3.6% YoY further adjusted for storm credits(2)), driven by Broadband revenue growth of +14.0% YoY and News & Advertising growth of +29.7%. Total revenue grew +1.4% YoY in full-year (FY) 2020 to $9.89 billion (or up +2.4% YoY adjusted for anticipated RSN credits(1), and up +2.6% YoY further adjusted for storm credits(2)).
- Net income attributable to stockholders was $330.5m in Q4 2020, or $0.60/share on a diluted basis, compared to a net income of $0.3 million, or $0.00/share, in Q4 2019. Net income attributable to stockholders was $436.2m in FY 2020, or $0.75/share, compared to a net income of $138.9 million, or $0.21/share on a diluted basis in FY 2019.
- Net cash flows from operating activities was $791.5m in Q4 2020, compared to $720.2m in Q4 2019. FY 2020 net cash flows from operating activities was $2.98 billion, compared to $2.55 billion in FY-19.
- Adjusted EBITDA(3) increased +6.1% YoY in Q4 2020 to $1.15 billion with a margin of 45.4% (growth of +5.8% YoY and a margin of 46.5% ex-mobile, or growth of +6.6% YoY and a margin of 46.3% excluding mobile, RSN credits, and storms(4)). Adjusted EBITDA increased +3.5% YoY in FY 2020 to $4.41 billion with a margin of 44.6% (growth of +4.2% YoY and a margin of 45.7% ex-mobile, or growth of +4.8% YoY and 45.4% margin excluding mobile, RSN credits and storms).
- Cash capex of $344.6 million in Q4 2020 represented 13.6% of revenue, and was up 6.7% YoY due to the timing of capex spend in 2020 and storm reconstruction outlays in Q4 2020. Cash capex of $1.07 billion in FY 2020 represented 10.9% of revenue and was down -20.8% YoY partly due to delayed permitting in the Company’s FTTH rollout.
- Operating Free Cash Flow(3) for Q4 2020 increased +5.8% YoY to $806.4 million. Operating Free Cash Flow for FY 2020 increased +14.8% YoY to $3.34 billion, reflecting Adjusted EBITDA growth and lower capital spending on a YoY basis.
- Free Cash Flow(3) increased 12.5% YoY in Q4 2020 to $446.9 million. FY 2020 free cash flow increased +59.0% YoY to $1.91 billion, representing the highest-ever annual Free Cash Flow.
- Share repurchases were approximately $3.0 billion in Q4 2020 and $4.8 billion in FY 2020.
- FY 2021 Financial Outlook: The Company expects revenue and Adjusted EBITDA growth for 2021, cash capex to be between $1.3 to $1.4 billion for the year, and share repurchases of $1.5 billion. The Company expects leverage at year-end 2021 to be less than 5.3x (L2QA net debt to Adjusted EBITDA) for its CSC Holdings, LLC debt silo, with a target of 4.5x-5.0x L2QA EBITDA over time.
|
Q4 and FY-20 Summary Financials |
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
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|
($k) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Revenue |
|
$2,535,421 |
|
$2,474,549 |
|
$9,894,642 |
|
$9,760,859 |
|
Net income attributable to Altice USA, Inc. stockholders |
|
330,472 |
|
329 |
|
436,183 |
|
138,936 |
|
Adjusted EBITDA(3) |
|
1,150,980 |
|
1,085,000 |
|
4,414,814 |
|
4,265,471 |
|
Capital Expenditures (cash) |
|
344,578 |
|
322,795 |
|
1,073,955 |
|
1,355,350 |
|
Revenue and Adjusted EBITDA Detail |
|
Q4-20 |
|
FY-20 |
|
|
|
|
|
|
|
Total Revenue Growth YoY |
|
+2.5% |
|
+1.4% |
|
Adj. for RSN credits |
|
+3.2% |
|
+2.4% |
|
Adj. for RSN and storm credits |
|
+3.6% |
|
+2.6% |
|
|
|
|
|
|
|
Residential Revenue Growth YoY |
|
+0.8% |
|
+0.1% |
|
Adj. for RSN credits |
|
+1.7% |
|
+1.3% |
|
Adj. for RSN and storm credits |
|
+2.2% |
|
+1.6% |
|
|
|
|
|
|
|
Business Services Revenue Growth YoY |
|
-0.1% |
|
+1.8% |
|
Adj. for RSN credits |
|
+0.2% |
|
+2.0% |
|
Adj. for RSN and storm credits |
|
+0.6% |
|
+2.3% |
|
|
|
|
|
|
|
News & Advertising Revenue Growth YoY |
|
+29.7% |
|
+9.1% |
|
|
|
|
|
|
|
Adjusted EBITDA Growth YoY |
|
+6.1% |
|
+3.5% |
|
Excluding mobile |
|
+5.8% |
|
+4.2% |
|
Excluding mobile and storm credits |
|
+6.6% |
|
+4.8% |
|
|
|
|
|
|
|
Adjusted EBITDA Margin |
|
45.4% |
|
44.6% |
|
Excluding mobile |
|
46.5% |
|
45.7% |
|
Excluding mobile, RSN and storm credits |
|
46.3% |
|
45.4% |
|
Organic 2020 Residential customer net additions |
|
|
|
|
|
|
|
|
|
|
Residential customer relationships (000s) |
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
FY-20 |
|
Reported net additions |
35.1 |
|
53.0 |
|
7.7 |
|
(15.1) |
|
80.7 |
|
Less: FCC Pledge and NJ Order >90 Day |
0.0 |
|
18.1 |
|
4.4 |
|
(22.4) |
|
0.0 |
|
Less: Storm-affected >90 Day |
0.0 |
|
0.0 |
|
0.0 |
|
9.2 |
|
9.2 |
|
Adjusted net additions (excluding >90 Day) |
35.1 |
|
34.9 |
|
3.4 |
|
(1.9) |
|
71.5 |
|
Additional storm disconnects |
|
|
|
|
6.2 |
|
5.2 |
|
11.4 |
|
Adjusted + additional storm disconnects |
35.1 |
|
34.9 |
|
9.6 |
|
3.3 |
|
82.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Broadband customers (000s) |
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
FY-20 |
|
Reported net additions |
50.1 |
|
70.4 |
|
26.0 |
|
(4.3) |
|
142.1 |
|
Less: FCC Pledge and NJ Order >90 Day |
0.0 |
|
17.9 |
|
4.3 |
|
(22.1) |
|
0.0 |
|
Less: Storm-affected >90 Day |
0.0 |
|
0.0 |
|
0.0 |
|
8.7 |
|
8.7 |
|
Adjusted net additions (excluding >90 Day) |
50.1 |
|
52.6 |
|
21.7 |
|
9.1 |
|
133.5 |
|
Additional storm disconnects |
|
|
|
|
5.8 |
|
4.8 |
|
10.6 |
|
Adjusted + additional storm disconnects |
50.1 |
|
52.6 |
|
27.5 |
|
13.9 |
|
144.1 |
Key Operational Highlights
- Total unique Residential customer relationships grew +2.5% YoY in Q4 2020 on a reported basis (+1.8% YoY organically), or +2.3% YoY adjusted to exclude subscribers who were affected by Hurricanes Laura and Delta and have balances outstanding that are more than 90 days past due (“storm-affected greater than 90-day subscribers”), or +2.6% YoY further adjusted to exclude additional storm disconnects(5). Reported unique Residential customers net losses were -15k in Q4 2020. Adjusted for the retention activity of subscribers formerly covered by the FCC Pledge and the New Jersey Executive Order (“FCC Pledge and NJ Order”), as well as excluding storm-affected greater than 90-day subscribers, Residential customer net losses would have been -2k. Further adjusted to exclude additional storm disconnects, adjusted Residential customer net additions would have been +3k in Q4 2020, an improvement compared to a net loss of -5k in Q4 2019. FY 2020 reported unique Residential customer net additions were +81k, +72k excluding storm-affected greater than 90-day subscribers or +83k further adjusted for additional storm disconnects(6). FY 2020 ending Residential customer relationships include Service Electric Cable T.V. of New Jersey, Inc. (“Service Electric”) which contributed +34k Residential customer relationships in Q3 2020.
- Residential Broadband RGUs: Reported quarterly broadband net additions were -4k in Q4 2020, or +9k adjusted for the retention of subscribers formerly covered by the FCC Pledge and NJ Order, and excluding storm-affected greater than 90-day subscribers, or +14k further adjusted to exclude additional storm disconnects(5), representing an improvement compared to +7k broadband net additions in Q4 2019. Reported Residential Broadband organic net additions were +142k in FY 2020 (or +172k inclusive of Service Electric). Excluding storm-affected greater than 90-day subscribers, FY 2020 broadband net additions would have been +133k, or +174k inclusive of Service Electric and further adjusted to exclude additional storm disconnects, representing the best-ever year for broadband net additions since Altice USA’s inception, compared to +72k in FY 2019(5).
- Residential Video RGUs: Reported quarterly video net losses were -74k in Q4 2020, or -76k adjusted for the retention of subscribers formerly covered by the FCC Pledge and NJ Order, and excluding storm-affected greater than 90-day subscribers, or -74k further adjusted to exclude storm disconnects(5), compared to -44k in Q4 2019. Reported organic Residential Video net losses were -237k in FY 2020 (or -218k inclusive of Service Electric). Excluding storm-affected greater than 90-day subscribers, FY 2020 video net loss would have been -241k, or -218k inclusive of Service Electric and excluding additional storm disconnects(5), compared to -107k in FY 2019
- Residential revenue per customer relationship in Q4 2020 was down -1.8% YoY to $140.09 (or down -0.9% YoY to $141.35 adjusted for anticipated RSN credits), vs. $142.65 in Q4 2019. Adjusted for the FCC Pledge and NJ Order, and storm-affected greater than 90-day subscribers, residential revenue per customer relationship was down -0.6% YoY to $141.83. Reported Residential revenue per customer relationship in FY 2020 was down -1.3% YoY to $142.11 (or approximately flat at -0.1% to $143.82 adjusted for anticipated RSN credits), vs. $143.98 in FY 2019. Adjusted for the FCC Pledge and NJ Order, and excluding storm-affected greater than 90-day subscribers, residential revenue per customer relationship was flat YoY at $143.97.
- Total Residential revenue grew +0.8% YoY in Q4 2020 (or grew +1.7% YoY adjusted for anticipated RSN credits and +2.2% YoY further adjusted for storm credits). Total Residential revenue grew +0.1% YoY in FY 2020 (or grew +1.3% YoY adjusted for anticipated RSN credits and +1.6% YoY further adjusted for storm credits).
- Business Services revenue was down -0.1% YoY in Q4 2020 (or +0.2% YoY adjusted for anticipated RSN credits and +0.6% YoY further adjusted for storm credits) with Lightpath growing +2.6% YoY and SMB / Other revenue down -1.0% YoY. Business Services revenue grew +1.8% YoY in FY 2020 (or +2.0% YoY adjusted for anticipated RSN credits and +2.3% YoY further adjusted for storm credits). Lightpath continues to gain momentum in the education, government and healthcare verticals, driven by elevated connectivity needs during the pandemic.
- News and Advertising revenue increased +29.7% YoY in Q4 2020, driven mainly by the ongoing recovery in local advertising and an increase in political advertising in the quarter (News and Advertising revenue grew +3.5% YoY ex-political). Cheddar website traffic was up +90% in Q4 2020 YoY with a user base increase of +112% YoY. For FY 2020 News and Advertising revenue growth was +9.1% YoY, buoyed by a strong political cycle.
- Altice Mobile has approximately 169k mobile lines through December 31, 2020 since the commercial launch in September 2019 (+7k net additions in Q4 2020 and +101k net additions in FY2020, generating revenue of $20.2 million for the quarter and $78.1 million in FY 2020), reaching 3.6% penetration of Altice USA’s residential customer base. At the end of January 2021, approximately 90% of Altice Mobile customers have migrated onto the T-Mobile network from the Sprint network, leading to a 15% reduction in dropped calls.
- Increased network usage and demand for higher broadband speeds: In Q4 2020, the Company saw an increase of +47% YoY in average data usage per customer to approximately 468 GB per month (approximately 591 GB per month for broadband-only customers). The pace of broadband speed upgrades remains elevated, up +70% YoY. The average broadband speeds taken by Altice USA’s customer base has more than doubled in the past three years to 283 Mbps at the end of Q4 2020. Over 55% of our broadband customers remain on plans with download speeds 200 Mbps or less, representing a sizable opportunity to continue to upgrade speeds.
- Increase in 1 Gig broadband sell-in: 1 Gig broadband capability is available across 92% of Altice USA’s consolidated footprint. In Q4 2020, 1 Gig sell-in to new customers increased to 41% where 1 Gig services are available, up from 29% in Q3 2020. Less than 8% of the total customer base currently take Gigabit speeds, representing a significant growth opportunity for the Company.
- FTTH strategy and update: At the end of Q4 2020, Altice USA covered nearly 1 million homes with FTTH technology available for service, with FTTH sell-in to new customers increasing to 58% in areas where FTTH is available in Q4, up from 44% in Q3. The fiber sell-in rate for 1 Gig was 67% at the end of 2020. The Company remains positive on the future of its FTTH deployment initiatives and confident in delivering both capex and opex efficiencies following the completion of its FTTH build.
- Increase in new-builds: Altice USA has been accelerating the pace of its network edge-outs, organically adding 146k homes passed in 2020 across its entire footprint, with another approximately 70k homes passed from the acquisition of Service Electric in the third quarter of 2020. The Company is seeing strong momentum in growing customer penetration, typically reaching approximately 40% within a year of rollout in new-build areas, and this remains a focus area for growth.
Financial Outlook
For the full year 2021, the Company expects:
- Revenue: Growth
- Adjusted EBITDA: Growth
- Cash capital expenditures: $1.3 to $1.4 billion
- Year-end leverage target (CSC Holdings, LLC debt silo): < 5.3x net debt / Adjusted EBITDA (L2QA basis)
- Share repurchases: $1.5 billion
The Company expects to return to a leverage target of 4.5x – 5.0x net debt / Adjusted EBITDA (L2QA basis) for its CSC Holdings, LLC debt silo over time.
Balance Sheet Review
For the quarter and year ended December 31, 2020:
- Consolidated net debt for Altice USA at the end of Q4 and FY 2020 was $24,619 million on a reported basis(7). This represents consolidated L2QA (last two quarters annualized) net leverage of 5.4x (5.6x last-twelve months or “LTM”) EBITDA at the end of Q4 and FY 2020.
- Net debt for CSC Holdings, LLC was $23,195 million at the end of Q4 and FY 2020(7). CSC Holdings, LLC’s L2QA net leverage was 5.3x (5.5x LTM) EBITDA. The weighted average cost of debt for CSC Holdings, LLC was 4.7% as of the end of Q4 and FY 2020 and the weighted average life was 6.5 years.
- Net debt for Cablevision Lightpath LLC was $1,425 million at the end of Q4 and FY 2020(7). Cablevision Lightpath LLC’s L2QA net leverage was 6.5x (6.6x LTM) EBITDA. The weighted average cost of debt for Cablevision Lightpath LLC was 4.3% as of the end of Q4 and FY 2020 and the weighted average life was 6.7 years.
Additional Highlights and Announcements
Successful Tender Offer and Share Repurchases
On November 23, 2020 Altice USA launched a modified “Dutch auction” tender offer to repurchase up to $2.5 billion of its Class A common stock. Following the completion of the tender offer, the Company successfully repurchased 64,613,479 shares of Class A common stock at $36.00 per share, for a total of approximately $2.3 billion. These shares represented approximately 18.2% of the Company’s issued and outstanding shares of Class A common stock (or 12.0% of the Company’s total outstanding shares including both Class A and Class B common stock) as of the expiration date of the tender, December 21, 2020.
For the three months ended December 31, 2020, Altice USA repurchased an aggregate of 87.3 million shares for a total purchase price of approximately $3.0 billion, at an average price of $34.21. As of December 31, 2020, Altice USA had 476,469,575 combined Class A and Class B shares outstanding.
Closing of Sale of 49.99% of Lightpath Fiber Enterprise Business to Morgan Stanley Infrastructure Partners and Appointment of New Management Team
In December 2020, Altice USA closed the previously announced sale of 49.99% of its Lightpath fiber enterprise business to Morgan Stanley Infrastructure Partners (MSIP) based on an implied enterprise value of $3.2 billion. Altice USA retains a 50.01% interest in Lightpath and maintains control of the company. Accordingly, the Company continues to consolidate the operating results of the Lightpath business.
On January 14, 2020, Lightpath announced the appointment of Chris Morley as chief executive officer. Mr. Morley has more than 20 years of experience in the communications infrastructure and telecommunications industry, most recently serving as senior operating advisor for Stonepeak Infrastructure Partners. Additional executive appointments included two well-respected industry executives in Chief Revenue Officer Doug Dalissandro, formerly the chief revenue officer for Lightower Fiber Networks, and Chief Strategy Officer David Mayer, formerly the general counsel and executive vice president of business development for Lightower.
Altice USA’s Community Response to COVID-19
In 2020, Altice USA took a number of steps during the pandemic to support both its customers and community, as well its employees. These initiatives include:
- Offering Altice Advantage broadband service for free to households with K-12 and/or college students without home Internet access.
- Signing the FCC’s “Keep Americans Connected” Pledge, which provided relief to residential and business customers facing hardships.
- Creating a $10 million “Community Relief Program” aimed at supporting the recovery efforts of small and medium-sized business customers (SMBs) across the Company’s footprint.
- Philanthropic partnerships with numerous organizations, including DonorsChoose to fund classroom projects across the Altice USA service areas, as well as national and local affiliates of Boys and Girls Clubs of America, and Feeding America.
- Collaborating with large hospital systems, schools and government agencies to ensure they have the connectivity services they need to assist their communities, including waiving fees for first responders and other critical entities.
- Providing outdoor WiFi hotspots in the Optimum territory for both customers and non-customers to ensure connectivity.
- Establishing employee programs to ensure safe business continuity, including enhanced employee and customer safety protocols, and work-remote solutions.
- Raising awareness of local businesses that are still operating through a “We’re Open” campaign on News 12 and recognizing those who were supporting our local communities through a “Hey Neighbor” campaign on Optimum.
- Providing free airtime for public service announcements (PSAs) to health, community and government officials to educate customers on how to stay safe and healthy.
- Providing around-the-clock, enhanced local news coverage across our News12 and Cheddar platforms to keep our viewers up-to-date.
|
Altice USA Consolidated Operating Results |
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(In thousands, except per share data) |
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|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
Revenue: |
|
|
|
|
|
|
|
||||||||
|
Broadband |
$ |
942,030 |
|
|
$ |
826,454 |
|
|
$ |
3,689,159 |
|
|
$ |
3,222,605 |
|
|
Video |
904,251 |
|
|
968,959 |
|
|
3,670,859 |
|
|
3,997,873 |
|
||||
|
Telephony |
110,430 |
|
|
145,767 |
|
|
468,777 |
|
|
598,694 |
|
||||
|
Business services and wholesale |
362,223 |
|
|
362,409 |
|
|
1,454,532 |
|
|
1,428,532 |
|
||||
|
News and Advertising |
192,857 |
|
|
148,649 |
|
|
519,205 |
|
|
475,904 |
|
||||
|
Mobile |
20,183 |
|
|
18,090 |
|
|
78,127 |
|
|
21,264 |
|
||||
|
Other |
3,447 |
|
|
4,221 |
|
|
13,983 |
|
|
15,987 |
|
||||
|
Total revenue |
2,535,421 |
|
|
2,474,549 |
|
|
9,894,642 |
|
|
9,760,859 |
|
||||
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Programming and other direct costs |
831,119 |
|
|
847,653 |
|
|
3,340,442 |
|
|
3,300,528 |
|
||||
|
Other operating expenses |
581,435 |
|
|
598,274 |
|
|
2,264,473 |
|
|
2,300,398 |
|
||||
|
Restructuring and other expense |
2,394 |
|
|
33,888 |
|
|
91,073 |
|
|
72,978 |
|
||||
|
Depreciation and amortization (including impairments) |
511,754 |
|
|
567,459 |
|
|
2,083,365 |
|
|
2,263,144 |
|
||||
|
Operating income |
608,719 |
|
|
427,275 |
|
|
2,115,289 |
|
|
1,823,811 |
|
||||
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
|
Interest expense, net |
(313,461 |
) |
|
(376,497 |
) |
|
(1,350,341 |
) |
|
(1,530,850 |
) |
||||
|
Gain (loss) on investments and sale of affiliate interests, net |
263,760 |
|
|
(4,718 |
) |
|
320,061 |
|
|
473,406 |
|
||||
|
Gain (loss) on derivative contracts, net |
(204,467 |
) |
|
21,273 |
|
|
(178,264 |
) |
|
(282,713 |
) |
||||
|
Gain (loss) on interest rate swap contracts |
10,119 |
|
|
7,833 |
|
|
(78,606 |
) |
|
(53,902 |
) |
||||
|
Loss on extinguishment of debt and write-off of deferred financing costs |
— |
|
|
(84,207 |
) |
|
(250,489 |
) |
|
(243,806 |
) |
||||
|
Other income, net |
2,300 |
|
|
1,117 |
|
|
5,577 |
|
|
1,183 |
|
||||
|
Income (loss) before income taxes |
366,970 |
|
|
(7,924 |
) |
|
583,227 |
|
|
187,129 |
|
||||
|
Income tax benefit (expense) |
(30,701 |
) |
|
9,255 |
|
|
(139,748 |
) |
|
(47,190 |
) |
||||
|
Net income |
336,269 |
|
|
1,331 |
|
|
443,479 |
|
|
139,939 |
|
||||
|
Net income attributable to noncontrolling interests |
(5,797 |
) |
|
(1,002 |
) |
|
(7,296 |
) |
|
(1,003 |
) |
||||
|
Net income attributable to Altice USA stockholders |
$ |
330,472 |
|
|
$ |
329 |
|
|
$ |
436,183 |
|
|
$ |
138,936 |
|
|
Basic net income per share |
$ |
0.61 |
|
|
$ |
— |
|
|
$ |
0.75 |
|
|
$ |
0.21 |
|
|
Diluted net income per share |
$ |
0.60 |
|
|
$ |
— |
|
|
$ |
0.75 |
|
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basic weighted average common shares |
544,705 |
|
|
635,029 |
|
|
581,057 |
|
|
660,384 |
|
||||
|
Diluted weighted average common shares |
548,572 |
|
|
640,839 |
|
|
583,689 |
|
|
662,541 |
|
||||
|
Altice USA Consolidated Statements of Cash Flows |
|||||||
|
(In thousands) |
|||||||
|
|
2020 |
|
2019 |
||||
|
Cash flows from operating activities: |
|
|
|
||||
|
Net income |
$ |
443,479 |
|
|
$ |
139,939 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
|
Depreciation and amortization (including impairments) |
2,083,365 |
|
|
2,263,144 |
|
||
|
Gain on investments and sale of affiliate interests, net |
(320,061 |
) |
|
(473,406 |
) |
||
|
Loss on derivative contracts, net |
178,264 |
|
|
282,713 |
|
||
|
Loss on extinguishment of debt and write-off of deferred financing costs |
250,489 |
|
|
243,806 |
|
||
|
Amortization of deferred financing costs and discounts (premiums) on indebtedness |
91,127 |
|
|
106,214 |
|
||
|
Share-based compensation expense |
125,087 |
|
|
105,538 |
|
||
|
Deferred income taxes |
75,512 |
|
|
14,931 |
|
||
|
Decrease in right-of-use asset |
45,995 |
|
|
46,581 |
|
||
|
Provision for doubtful accounts |
65,965 |
|
|
91,520 |
|
||
|
Other |
34,079 |
|
|
18,558 |
|
||
|
Change in assets and liabilities, net of effects of acquisitions and dispositions: |
|
|
|
||||
|
Accounts receivable, trade |
(50,747 |
) |
|
(91,718 |
) |
||
|
Prepaid expenses and other assets |
8,330 |
|
|
(60,854 |
) |
||
|
Amounts due from and due to affiliates |
3,594 |
|
|
(7,857 |
) |
||
|
Accounts payable and accrued liabilities |
(118,388 |
) |
|
(144,894 |
) |
||
|
Deferred revenue |
(39,977 |
) |
|
(10,384 |
) |
||
|
Liabilities related to interest rate swap contracts |
104,051 |
|
|
30,338 |
|
||
|
Net cash provided by operating activities |
2,980,164 |
|
|
2,554,169 |
|
||
|
Cash flows from investing activities: |
|
|
|
||||
|
Capital expenditures |
(1,073,955 |
) |
|
(1,355,350 |
) |
||
|
Payment for acquisitions, net of cash acquired |
(149,973 |
) |
|
(172,269 |
) |
||
|
Other, net |
3,502 |
|
|
2,150 |
|
||
|
Net cash used in investing activities |
(1,220,426 |
) |
|
(1,525,469 |
) |
||
|
|
|
|
|
||||
|
Altice USA Consolidated Statements of Cash Flows (continued) |
|||||||
|
(In thousands) |
|||||||
|
|
2020 |
|
2019 |
||||
|
Cash flows from financing activities: |
|
|
|
||||
|
Proceeds from long-term debt |
8,019,648 |
|
|
9,160,229 |
|
||
|
Repayment of long-term debt |
(6,194,804 |
) |
|
(8,159,914 |
) |
||
|
Proceeds from collateralized indebtedness, net |
— |
|
|
93,000 |
|
||
|
Principal payments on finance lease obligations |
(43,083 |
) |
|
(8,980 |
) |
||
|
Purchase of shares of Altice USA, Inc. Class A common stock, pursuant to a share repurchase program and Tender Offer |
(4,816,379 |
) |
|
(1,686,873 |
) |
||
|
Proceeds from the sale of a noncontrolling interest in Lightpath, net of expenses |
880,197 |
|
|
— |
|
||
|
Additions to deferred financing costs |
(48,523 |
) |
|
(23,583 |
) |
||
|
Proceeds from stock option exercises |
14,348 |
|
|
3,209 |
|
||
|
Contributions from (distributions to) noncontrolling interests, net |
12,498 |
|
|
(1,000 |
) |
||
|
Other |
(4,947 |
) |
|
(500 |
) |
||
|
Net cash used in financing activities |
(2,181,045 |
) |
|
(624,412 |
) |
||
|
Net increase (decrease) in cash and cash equivalents excluding effect of exchange rate changes |
(421,307 |
) |
|
404,288 |
|
||
|
Effect of exchange rate changes on cash and cash equivalents |
(2,167 |
) |
|
(1,166 |
) |
||
|
Net increase (decrease) in cash and cash equivalents |
(423,474 |
) |
|
403,122 |
|
||
|
Cash, cash equivalents and restricted cash at beginning of year |
702,160 |
|
|
299,038 |
|
||
|
Cash, cash equivalents and restricted cash at end of year |
$ |
278,686 |
|
|
$ |
702,160 |
|
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.
Contacts
Investor Relations
Nick Brown: +1 917 589 9983 / nick.brown@alticeusa.com
Cathy Yao: +1 347 668 8001 / cathy.yao@alticeusa.com
Communications
Lisa Anselmo: +1 516 279 9461 / lisa.anselmo@alticeusa.com
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