Altice USA Reports Second Quarter 2023 Results

Delivers Best Fiber Customer Growth Quarter, Ending Q2 at 250K Fiber Customers
Optimum Now the Nation’s Largest 8 Gig Internet Provider

NEW YORK--(BUSINESS WIRE)-- Altice USA (NYSE: ATUS) today reports results for the second quarter ended June 30, 2023.

Dennis Mathew, Altice USA Chairman and Chief Executive Officer, said: "I am pleased with the progress we are making as we act with discipline and focus to execute on our mission for Optimum to be the connectivity provider of choice across all the communities we serve. In the second quarter we achieved sustainable operational and financial improvements across the business, with significant achievements in our customer experience and field operations translating into higher customer satisfaction metrics and reduced call volume and service visits. Our focus on creating better experiences for our customers while driving down costs resulted in stronger broadband net add performance in the quarter compared to the prior year. Our best-in-class products and networks continued with the launch of our 8 Gig symmetrical Fiber Internet service, cementing Optimum as the nation’s largest 8 Gig internet provider. Our strategy to provide the best products, the best networks, and the best customer and employee experiences, through operational execution and financial discipline, is leading to better trends across the business, and I am optimistic that the achievements in the quarter are leading indicators of a return to sustainable broadband and cash flow growth."

Key Financial Highlights

  • Total Revenue declined -5.6% YoY in Q2 2023 to $2.32 billion, including Residential revenue decline of -5.7% YoY, Business Services revenue decline of -1.9% YoY and News & Advertising revenue decline of -14.8% YoY.
  • Net income attributable to stockholders was $78.3 million in Q2 2023 ($0.17/share on a diluted basis) compared to $106.2 million in Q2 2022 ($0.23/share on a diluted basis).
  • Net cash flows from operating activities were $438.8 million in Q2 2023, compared to $676.3 million in Q2 2022.
  • Adjusted EBITDA(1) declined -8.5% YoY in Q2 2023 to $921.7 million, with a margin of 39.7%.
  • Cash capital expenditures of $473.4 million in Q2 2023 represented 20.4% of revenue (11.4% of revenue excluding fiber-to-the-home (FTTH) and new builds) and were down -2.4% YoY.
  • Operating Free Cash Flow(1) decreased -14.1% YoY to $448.3 million in Q2 2023.
  • Free Cash Flow (Deficit)(1) was ($34.6) million in Q2 2023.

Q2-23 Summary Financials

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands)

2023

 

2022

 

2023

 

2022

Revenue              

$2,324,274

 

$2,463,014

 

$4,618,252

 

$4,884,911

Net income attributable to Altice USA, Inc. stockholders           

78,300

 

106,174

 

104,165

 

302,725

Adjusted EBITDA(1)             

921,742

 

1,007,068

 

1,790,133

 

1,998,798

Capital Expenditures (cash)             

473,445

 

485,126

 

1,056,342

 

877,497

 

Revenue Growth and Adjusted EBITDA Detail

 

Q2-23

 

 

 

Total Revenue YoY

 

(5.6)%

 

 

 

Residential Revenue(2) YoY               

 

(5.7)%

 

 

 

Business Services Revenue YoY     

 

(1.9)%

excluding Sprint early termination revenue(3) 

 

(1.3)%

News & Advertising Revenue YoY    

 

(14.8)%

excluding political revenue             

 

(8.4)%

 

 

 

Adjusted EBITDA YoY         

 

(8.5)%

Adjusted EBITDA Margin    

 

39.7%

Key Operational Highlights

  • Total Broadband Primary Service Units (PSUs): Quarterly broadband net losses were -37k in Q2 2023, compared to -39k broadband net losses in Q2 2022.
  • Total Fiber Broadband PSUs: Quarterly Fiber (FTTH) broadband net additions were +40k in Q2 2023, our best quarter for fiber net adds. Fiber broadband net adds were driven by both higher fiber gross additions and increased migrations of existing customers. Total fiber broadband customers reached 250k as of the end of Q2 2023.
  • Optimum Mobile has approximately 264k mobile lines as of the end of Q2 2023, adding +16k mobile net additions in Q2 2023 (+35k net additions excluding customers receiving free service(4)), reaching 5.8% penetration of the Company's total broadband customer base.
  • Residential revenue(2) declined -5.7% YoY in Q2 2023 to $1.84 billion.
  • Residential revenue per customer relationship(5) declined -2.8% YoY in Q2 2023 to $137.44, mostly due to the loss of higher ARPU video customers.
  • Business Services revenue of $364.7 million was down -1.9% YoY in Q2 2023. SMB / Other revenue was down -2.0% YoY in Q2 2023. Lightpath revenue was down -1.4% YoY in Q2 2023. Lightpath revenue decline is driven by Sprint early termination revenue(2) in the prior period of approximately $2.3 million; excluding this early termination revenue, Lightpath revenue would have grown +1.1% in Q2 2023.
  • News and Advertising revenue was down -14.8% YoY to $113.5 million in Q2 2023, or down -8.4% excluding political revenue.

Customer Metrics (in thousands, except per customer amounts)

 

 

 

 

 

 

 

 

 

 

Q1-22

Q2-22

Q3-22

Q4-22

FY-22

Q1-23

Q2-23

 

 

 

 

 

 

 

 

Total Passings(6)   

9,304.9

9,363.1

9,414.9

9,463.8

9,463.8

9,512.2

9,578.6

Total Passings additions   

41.6

58.2

51.8

48.8

200.5

48.4

66.4

 

 

 

 

 

 

 

 

Total Customer Relationships(7)(8)

 

 

 

 

 

 

 

Residential   

4,612.1

4,564.2

4,514.7

4,498.5

4,498.5

4,472.4

4,429.5

SMB             

382.9

383.1

382.5

381.2

381.2

380.9

381.0

Total Unique Customer Relationships            

4,995.0

4,947.3

4,897.2

4,879.7

4,879.7

4,853.3

4,810.5

 

 

 

 

 

 

 

 

Residential net additions (losses)             

(20.7)

(47.9)

(49.5)

(16.2)

(134.3)

(26.1)

(42.9)

Business Services net additions (losses) 

1.0

0.2

(0.6)

(1.3)

(0.7)

(0.3)

0.1

Total customer net additions (losses)          

(19.8)

(47.7)

(50.1)

(17.5)

(135.0)

(26.4)

(42.7)

 

 

 

 

 

 

 

 

Residential PSUs

 

 

 

 

 

 

 

Broadband     

4,373.2

4,333.6

4,290.6

4,282.9

4,282.9

4,263.7

4,227.0

Video              

2,658.7

2,574.2

2,491.8

2,439.0

2,439.0

2,380.5

2,312.2

Telephony      

1,951.5

1,886.9

1,818.9

1,764.1

1,764.1

1,703.5

1,640.8

 

 

 

 

 

 

 

 

Broadband net additions (losses)

(13.0)

(39.6)

(43.0)

(7.7)

(103.3)

(19.2)

(36.8)

Video net additions (losses)        

(73.6)

(84.5)

(82.4)

(52.8)

(293.2)

(58.6)

(68.3)

Telephony net additions (losses) 

(53.7)

(64.7)

(68.0)

(54.8)

(241.1)

(60.6)

(62.7)

 

 

 

 

 

 

 

 

Residential ARPU ($)(5)

139.00

141.36

139.24

135.86

138.83

135.32

137.44

 

 

 

 

 

 

 

 

SMB PSUs

 

 

 

 

 

 

 

Broadband     

350.4

350.7

350.2

349.1

349.1

349.0

349.1

Video              

102.6

101.0

99.1

97.3

97.3

95.3

93.7

Telephony      

216.8

215.3

214.0

212.3

212.3

210.0

208.0

 

 

 

 

 

 

 

 

Broadband net additions (losses)

1.1

0.3

(0.5)

(1.1)

(0.2)

(0.1)

0.1

Video net additions (losses)        

(1.6)

(1.6)

(1.9)

(1.8)

(6.9)

(2.0)

(1.6)

Telephony net additions (losses) 

(2.0)

(1.6)

(1.3)

(1.7)

(6.5)

(2.3)

(2.0)

 

 

 

 

 

 

 

 

Total Mobile Lines

 

 

 

 

 

 

 

Mobile ending lines         

198.3

231.3

236.1

240.3

240.3

247.9

264.2

Mobile ending lines excluding free service(4)  

190.0

195.5

202.7

208.7

208.7

223.3

257.9

 

 

 

 

 

 

 

 

Mobile line net additions              

11.9

33.0

4.8

4.1

53.8

7.6

16.3

Mobile line net additions ex-free service(4)  

3.6

5.5

7.2

6.0

22.3

14.6

34.6

Fiber (FTTH) Customer Metrics  (in thousands)

 

 

 

 

 

 

 

 

 

 

Q1-22

Q2-22

Q3-22

Q4-22

FY-22

Q1-23

Q2-23

FTTH Total Passings(9)         

1,316.6

1,587.1

1,908.2

2,158.7

2,158.7

2,373.0

2,659.5

FTTH Total Passing additions

145.7

270.4

321.2

250.5

987.8

214.2

286.6

 

 

 

 

 

 

 

 

FTTH Residential           

80.4

103.7

134.2

170.0

170.0

207.2

245.9

FTTH SMB     

0.6

0.7

1.2

1.7

1.7

2.7

3.9

FTTH Total customer relationships(10)

81.0

104.4

135.3

171.7

171.7

209.9

249.7

 

 

 

 

 

 

 

 

FTTH Residential net additions 

11.1

23.3

30.5

35.8

100.7

37.2

38.6

FTTH SMB net additions           

0.2

0.2

0.4

0.6

1.4

0.9

1.2

FTTH Total customer net additions

11.3

23.5

30.9

36.4

102.1

38.1

39.8

Fiber Rollout, Multi-Gig Fiber Internet and Network Expansion Update

  • Fiber (FTTH) rollout update: As of Q2 2023, the Company has 2.66 million FTTH passings, adding +287k new FTTH passings in the quarter.
  • Launch of Optimum 8 Gbps (8 Gig) Symmetrical Fiber. Optimum 8 Gig Fiber is available to 1.7 million passings at the end of Q2 2023. Last year the Company also introduced both Optimum 5 Gbps (5 Gig) and 2 Gbps (2 Gig) Fiber Internet, with symmetrical data speeds up to 5 Gig and 2 Gig respectively in certain portions of its footprint. At the end of Q2 2023, 72% of the Company’s fiber passings in the Optimum East footprint had multi-Gig speeds available to them (1 Gig symmetric speeds are available to 100% of the Company's entire fiber footprint).
  • 1 Gbps (1 Gig) broadband or higher speed sell-in to all new customers, where 1 Gig or higher services are available, was 39% in Q2 2023. Approximately 21% of the Residential broadband customer base currently take 1 Gig or higher speeds, representing a significant growth opportunity for the Company.
  • Broadband speeds taken on average have nearly doubled in the past three years to 421 Mbps in Q2 2023.
  • Broadband-only customer usage averaged 619 GB per month in Q2 2023, which is 23% higher than the average usage of the entire customer base (501 GB per month).
  • New build activity update: The Company has been accelerating the pace of its network edge-outs, adding +66k passings in Q2 2023 (+115k passings LTM). The Company continues to see strong momentum in growing customer penetration, typically reaching approximately 40% within a year of rollout in new-build areas.

Balance Sheet Review as of June 30, 2023

  • Net debt for CSC Holdings, LLC Restricted Group was $23,150 million at the end of Q2 2023(11), representing net leverage of 6.8x Adjusted EBITDA on a last twelve month (LTM) basis. The weighted average cost of debt for CSC Holdings, LLC Restricted Group was 6.1% as of the end of Q2 2023 and the weighted average life was 5.2 years. The Company expects to return to a leverage target of 4.5x to 5.0x net debt / Adjusted EBITDA on a Last 2 Quarters Annualized (L2QA) basis for its CSC Holdings, LLC debt silo over time.
  • Net debt for Cablevision Lightpath LLC was $1,410 million at the end of Q2 2023(11), representing net leverage of 5.9x LTM. The weighted average cost of debt for Cablevision Lightpath LLC was 5.4% as of the end of Q2 2023 and the weighted average life was 4.6 years.
  • Consolidated net debt for Altice USA was $24,543 million(11), representing consolidated net leverage of 6.7x LTM.

Successful Pricing of New Senior Guaranteed Notes

In April 2023, CSC Holdings issued $1.0 billion in aggregate principal amount of senior guaranteed notes that bear interest at a rate of 11.250% and mature on May 15, 2028. The Company used the proceeds to repay outstanding borrowings drawn under the Revolving Credit Facility.

Shares Outstanding

As of June 30, 2023, the Company had 454,729,330 combined Class A and Class B shares outstanding.

Altice USA Consolidated Operating Results

(In thousands, except per share data)

(Unaudited)

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

2023

 

2022

 

2023

 

2022

Revenue:

 

 

 

 

 

 

 

Broadband

$

965,865

 

 

$

1,002,680

 

 

$

1,922,910

 

 

$

1,988,197

 

Video

 

775,138

 

 

 

841,549

 

 

 

1,545,739

 

 

 

1,683,436

 

Telephony

 

76,069

 

 

 

84,621

 

 

 

153,750

 

 

 

169,855

 

Mobile(6)

 

18,147

 

 

 

16,863

 

 

 

33,673

 

 

 

31,805

 

Residential revenue(6)

 

1,835,219

 

 

 

1,945,713

 

 

 

3,656,072

 

 

 

3,873,293

 

Business services and wholesale(6)

 

364,704

 

 

 

371,613

 

 

 

728,345

 

 

 

739,243

 

News and Advertising

 

113,465

 

 

 

133,250

 

 

 

212,202

 

 

 

247,925

 

Other(6)

 

10,886

 

 

 

12,438

 

 

 

21,633

 

 

 

24,450

 

Total revenue     

 

2,324,274

 

 

 

2,463,014

 

 

 

4,618,252

 

 

 

4,884,911

 

Operating expenses:

 

 

 

 

 

 

 

Programming and other direct costs   

 

762,280

 

 

 

819,011

 

 

 

1,533,999

 

 

 

1,647,804

 

Other operating expenses   

 

656,128

 

 

 

673,464

 

 

 

1,307,373

 

 

 

1,315,370

 

Restructuring expense and other operating items

 

5,178

 

 

 

2,673

 

 

 

34,850

 

 

 

6,051

 

Depreciation and amortization (including impairments)       

 

418,705

 

 

 

446,125

 

 

 

834,917

 

 

 

881,474

 

Operating income

 

481,983

 

 

 

521,741

 

 

 

907,113

 

 

 

1,034,212

 

Other income (expense):

 

 

 

 

 

 

 

Interest expense, net

 

(406,709

)

 

 

(310,213

)

 

 

(795,987

)

 

 

(613,575

)

Gain (loss) on investments, net

 

 

 

 

(325,601

)

 

 

192,010

 

 

 

(476,374

)

Gain (loss) on derivative contracts, net  

 

 

 

 

219,114

 

 

 

(166,489

)

 

 

320,188

 

Gain on interest rate swap contracts, net

 

61,165

 

 

 

39,868

 

 

 

46,736

 

 

 

163,015

 

Gain on extinguishment of debt and write-off of deferred financing costs

 

 

 

 

 

 

 

4,393

 

 

 

 

Other income (loss), net

 

(1,570

)

 

 

2,521

 

 

 

8,635

 

 

 

4,951

 

Income before income taxes

 

134,869

 

 

 

147,430

 

 

 

196,411

 

 

 

432,417

 

Income tax expense

 

(48,725

)

 

 

(33,890

)

 

 

(79,097

)

 

 

(116,736

)

Net income           

 

86,144

 

 

 

113,540

 

 

 

117,314

 

 

 

315,681

 

Net income attributable to noncontrolling interests

 

(7,844

)

 

 

(7,366

)

 

 

(13,149

)

 

 

(12,956

)

Net income attributable to Altice USA stockholders

$

78,300

 

 

$

106,174

 

 

$

104,165

 

 

$

302,725

 

Basic net income per share

$

0.17

 

 

$

0.23

 

 

$

0.23

 

 

$

0.67

 

Diluted net income per share

$

0.17

 

 

$

0.23

 

 

$

0.23

 

 

$

0.67

 

Basic weighted average common shares

 

454,688

 

 

 

453,230

 

 

 

454,687

 

 

 

453,230

 

Diluted weighted average common shares

 

454,688

 

 

 

453,230

 

 

 

455,139

 

 

 

453,230

 

 

Altice USA Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

Six Months Ended
June 30,

 

2023

2022

Cash flows from operating activities:

 

 

Net income

$

117,314

 

$

315,681

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

Depreciation and amortization (including impairments)

 

834,917

 

 

881,474

 

Loss (gain) on investments

 

(192,010

)

 

476,374

 

Loss (gain) on derivative contracts, net

 

166,489

 

 

 

(320,188

)

Gain on extinguishment of debt and write-off of deferred financing costs

 

(4,393

)

 

 

 

Amortization of deferred financing costs and discounts (premiums) on indebtedness

 

18,359

 

 

 

41,150

 

Share-based compensation

 

13,253

 

 

 

77,061

 

Deferred income taxes

 

(113,402

)

 

 

(57,720

)

Decrease in right-of-use assets

 

22,925

 

 

 

22,139

 

Provision for doubtful accounts

 

43,946

 

 

 

36,839

 

Other

 

9,188

 

 

 

(321

)

Change in operating assets and liabilities, net of effects of acquisitions and dispositions:

 

 

 

Accounts receivable, trade

 

(10,611

)

 

 

(790

)

Prepaid expenses and other assets

 

(58,842

)

 

 

6,689

 

Amounts due from and due to affiliates

 

31,213

 

 

 

(6,057

)

Accounts payable and accrued liabilities

 

(22,816

)

 

 

(1,527

)

Deferred revenue

 

6,649

 

 

 

(1,906

)

Interest rate swap contracts

 

(6,492

)

 

 

(192,344

)

Net cash provided by operating activities

 

855,687

 

 

 

1,276,554

 

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(1,056,342

)

 

 

(877,497

)

Other, net

 

(1,578

)

 

(610

)

Net cash used in investing activities

 

(1,057,920

)

 

 

(878,107

)

Cash flows from financing activities:

 

 

 

Proceeds from long-term debt

 

1,900,000

 

 

 

460,000

 

Repayment of debt

 

(1,739,493

)

 

 

(758,861

)

Proceeds from derivative contracts in connection with the settlement of collateralized debt

 

38,902

 

 

 

 

Principal payments on finance lease obligations 

 

(76,100

)

 

 

(62,221

)

Other, net

 

(7,974

)

 

 

 

Net cash provided by (used in) financing activities

 

115,335

 

 

 

(361,082

)

Net increase (decrease) in cash and cash equivalents

 

(86,898

)

 

 

37,365

 

Effect of exchange rate changes on cash and cash equivalents

 

548

 

 

 

(110

)

Net increase (decrease) in cash and cash equivalents

 

(86,350

)

 

 

37,255

 

Cash, cash equivalents and restricted cash at beginning of year

305,751

 

 

 

195,975

 

Cash, cash equivalents and restricted cash at end of period  

$

219,401

 

 

$

233,230

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 expense and other operating items (such as significant legal settlements, contractual payments for terminated employees, and impairments).

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 the operating performance of the Company. 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 the Company’s 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 GAAP. Since Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies.

We also use Operating Free Cash Flow (defined as Adjusted EBITDA less cash capital expenditures), and Free Cash Flow (defined as net cash flows from operating activities less cash capital expenditures) as indicators of the Company’s financial performance. We believe these measures are two of several benchmarks used by investors, analysts and peers for comparison of performance in the Company’s industry, although they may not be directly comparable to similar measures reported by other companies.

Reconciliation of net income to Adjusted EBITDA and Operating Free Cash Flow (unaudited):

 

 

 

 

(in thousands)

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

Net income

$

86,144

 

 

$

113,540

 

 

$

117,314

 

 

$

315,681

 

Income tax expense

 

48,725

 

 

 

33,890

 

 

 

79,097

 

 

 

116,736

 

Other loss (income), net

 

1,570

 

 

 

(2,521

)

 

 

(8,635

)

 

 

(4,951

)

Gain on interest rate swap contracts, net

 

(61,165

)

 

 

(39,868

)

 

 

(46,736

)

 

 

(163,015

)

Loss (gain) on derivative contracts, net

 

 

 

 

(219,114

)

 

 

166,489

 

 

 

(320,188

)

Loss (gain) on investments

 

 

 

 

325,601

 

 

 

(192,010

)

 

 

476,374

 

Gain on extinguishment of debt and write-off of deferred financing costs

 

 

 

 

 

 

 

(4,393

)

 

 

 

Interest expense, net

 

406,709

 

 

 

310,213

 

 

 

795,987

 

 

 

613,575

 

Depreciation and amortization

 

418,705

 

 

 

446,125

 

 

 

834,917

 

 

 

881,474

 

Restructuring expense and other operating items

 

5,178

 

 

 

2,673

 

 

 

34,850

 

 

 

6,051

 

Share-based compensation  

 

15,876

 

 

 

36,529

 

 

 

13,253

 

 

 

77,061

 

Adjusted EBITDA

 

921,742

 

 

 

1,007,068

 

 

 

1,790,133

 

 

 

1,998,798

 

Capital Expenditures (cash)

 

473,445

 

 

 

485,126

 

 

 

1,056,342

 

 

 

877,497

 

Operating Free Cash Flow

$

448,297

 

 

$

521,942

 

 

$

733,791

 

 

$

1,121,301

 

      

Reconciliation of net cash flow from operating activities to Free Cash Flow (unaudited):

 

 

 

 

 

 

 

 

 

 

 

 

Net cash flows from operating activities           

$

438,841

 

 

$

676,335

 

$

855,687

 

 

$

1,276,554

Capital Expenditures (cash)  

 

473,445

 

 

 

485,126

 

 

1,056,342

 

 

 

877,497

Free Cash Flow (Deficit)      

$

(34,604

)

 

$

191,209

 

$

(200,655

)

 

$

399,057

Consolidated Net Debt as of June 30, 2023(11)

CSC Holdings, LLC Restricted Group (in $m)

Principal Amount

 

Coupon / Margin

 

Maturity

Drawn RCF          

$825

 

SOFR+2.350%

 

2025(12)

Term Loan            

1,528

 

L+2.250%(13)

 

2025

Term Loan B-3     

524

 

L+2.250%(13)

 

2026

Term Loan B-5     

2,903

 

L+2.500%(13)

 

2027

Term Loan B-6     

1,997

 

SOFR+4.500%

 

2028(14)

Guaranteed Notes              

1,310

 

5.500%

 

2027

Guaranteed Notes              

1,000

 

5.375%

 

2028

Guaranteed Notes              

1,000

 

11.250%

 

2028

Guaranteed Notes              

1,750

 

6.500%

 

2029

Guaranteed Notes              

1,100

 

4.125%

 

2030

Guaranteed Notes              

1,000

 

3.375%

 

2031

Guaranteed Notes              

1,500

 

4.500%

 

2031

Senior Notes        

750

 

5.250%

 

2024

Senior Notes        

1,046

 

7.500%

 

2028

Legacy unexchanged Cequel Notes

4

 

7.500%

 

2028

Senior Notes        

2,250

 

5.750%

 

2030

Senior Notes        

2,325

 

4.625%

 

2030

Senior Notes        

500

 

5.000%

 

2031

CSC Holdings, LLC Restricted Group Gross Debt  

23,312

 

 

 

 

CSC Holdings, LLC Restricted Group Cash  

(162)

 

 

 

 

CSC Holdings, LLC Restricted Group Net Debt       

$23,150

 

 

 

 

 

 

 

 

 

 

CSC Holdings, LLC Restricted Group Undrawn RCF           

$1,511

 

 

 

 

Cablevision Lightpath LLC (in $m)

Principal Amount

 

Coupon / Margin

 

Maturity

Drawn RCF          

$—

 

SOFR+3.360%

 

2025

Term Loan            

585

 

SOFR+3.360%

 

2027

Senior Secured Notes        

450

 

3.875%

 

2027

Senior Notes        

415

 

5.625%

 

2028

Cablevision Lightpath Gross Debt

1,450

 

 

 

 

Cablevision Lightpath Cash             

(40)

 

 

 

 

Cablevision Lightpath Net Debt    

$1,410

 

 

 

 

 

 

 

 

 

 

Cablevision Lightpath Undrawn RCF          

$100

 

 

 

 

 

Net Leverage Schedules as of June 30, 2023 (in $m)

 

CSC Holdings Restricted Group(15)

 

Cablevision Lightpath LLC

 

CSC Holdings Consolidated(16)

 

Altice USA Consolidated

 

 

 

 

 

 

 

 

Gross Debt Consolidated(17)             

$23,312

 

$1,450

 

$24,762

 

$24,762

Cash     

(162)

 

(40)

 

(219)

 

(219)

Net Debt Consolidated(11)

$23,150

 

$1,410

 

$24,543

 

$24,543

LTM EBITDA        

$3,413

 

$241

 

$3,658

 

$3,658

L2QA EBITDA      

$3,338

 

$245

 

$3,580

 

$3,580

 Net Leverage (LTM)         

6.8x

 

5.9x

 

6.7x

 

6.7x

 Net Leverage (L2QA)      

6.9x

 

5.7x

 

6.9x

 

6.9x

  WACD (%)         

6.1%

 

5.4%

 

6.0%

 

6.0%

      

Reconciliation to Financial Reported Debt

 

 

Actual

Total Debenture and Loans from Financial Institutions (Carrying Amount)            

$24,694

Unamortized financing costs, discounts and fair value adjustments, net of unamortized premiums             

68

Gross Debt Consolidated(17)           

24,762

Finance leases and other notes       

421

Total Debt            

25,183

Cash

(219)

Net Debt              

$24,964

 

Investor Relations
Nick Brown: +1 917 589 9983 / nick.brown@alticeusa.com
Sarah Freedman: +1 631 660 8714 / sarah.freedman@alticeusa.com

Communications
Lisa Anselmo: +1 516 279 9461 / lisa.anselmo@alticeusa.com
Janet Meahan: +1 516 519 2353 / janet.meahan@alticeusa.com

Source: Altice USA