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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One) | | | | | |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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| For the quarterly period ended | September 30, 2022 | |
OR
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☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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| For the transition period from | | to | | |
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Commission File Number | | Registrant; State of Incorporation; Address and Telephone Number | | IRS Employer Identification No. |
| | | | | | |
001-38126 | | | | 38-3980194 |
| | Altice USA, Inc. | | |
| | Delaware | | |
| | 1 Court Square West | | |
| | Long Island City, | New York | 11101 | | |
| | (516) | 803-2300 | | | |
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Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | | | | |
Yes | ☒ | No | ☐ |
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Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). | | |
Yes | ☒ | No | ☐ |
| | | | | | | | | | | | | | |
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one) |
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Large Accelerated Filer | ☒ | | Accelerated filer | ☐ |
Non-accelerated filer | ☐ | | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
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Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). | Yes | ☐ | No | ☒ |
Securities registered pursuant to Section 12(b) of the Act: | | | | | | | | |
Title of each class | Trading Symbol | Name of each exchange on which registered |
Class A Common Stock, par value $0.01 per share | ATUS | NYSE |
| | | | | |
Number of shares of common stock outstanding as of October 28, 2022 | 454,668,428 | |
ALTICE USA, INC. AND SUBSIDIARIES
FORM 10-Q
TABLE OF CONTENTS
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| Page |
PART I. FINANCIAL INFORMATION | |
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Item 1. Financial Statements | |
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ALTICE USA, INC. AND SUBSIDIARIES | |
Consolidated Financial Statements | |
| Consolidated Balance Sheets - September 30, 2022 (Unaudited) and December 31, 2021 | |
| Consolidated Statements of Operations - Three and nine months ended September 30, 2022 and 2021 (Unaudited) | |
| Consolidated Statements of Comprehensive Income - Three and nine months ended September 30, 2022 and 2021 (Unaudited) | |
| Consolidated Statements of Stockholders' Deficiency - Three and nine months ended September 30, 2022 and 2021 (Unaudited) | |
| Consolidated Statements of Cash Flows - Nine months ended September 30, 2022 and 2021 (Unaudited) | |
| Combined Notes to Consolidated Financial Statements (Unaudited) | |
Supplemental Financial Statements Furnished: | |
CSC HOLDINGS, LLC AND SUBSIDIARIES | |
Consolidated Financial Statements | |
| Consolidated Balance Sheets - September 30, 2022 (Unaudited) and December 31, 2021 | |
| Consolidated Statements of Operations - Three and nine months ended September 30, 2022 and 2021 (Unaudited) | |
| Consolidated Statements of Comprehensive Income - Three and nine months ended September 30, 2022 and 2021 (Unaudited) | |
| Consolidated Statements of Member's Deficiency - Three and nine months ended September 30, 2022 and 2021 (Unaudited) | |
| Consolidated Statements of Cash Flows - Nine months ended September 30, 2022 and 2021 (Unaudited) | |
| Combined Notes to Consolidated Financial Statements (Unaudited) | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. Controls and Procedures | |
PART II. OTHER INFORMATION | |
Item 1. Legal Proceedings | |
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Item 6. Exhibits | |
SIGNATURES | |
Part I. FINANCIAL INFORMATION
This Form 10-Q contains statements that constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Securities Act of 1934, as amended. In this Form 10-Q there are statements concerning our future operating results and future financial performance. Words such as "expects", "anticipates", "believes", "estimates", "may", "will", "should", "could", "potential", "continue", "intends", "plans" and similar words and terms used in the discussion of future operating results, future financial performance and future events identify forward-looking statements. Investors are cautioned that such forward-looking statements are not guarantees of future performance, results or events and involve risks and uncertainties and that actual results or developments may differ materially from the forward-looking statements as a result of various factors.
We operate in a highly competitive, consumer and technology driven and rapidly changing business that is affected by government regulation and economic, strategic, technological, political and social conditions. Various factors could adversely affect our operations, business or financial results in the future and cause our actual results to differ materially from those contained in the forward-looking statements. In addition, important factors that could cause our actual results to differ materially from those in our forward-looking statements include:
•competition for broadband, video and telephony customers from existing competitors (such as broadband communications companies, direct broadcast satellite ("DBS") providers, wireless data and telephony providers, and Internet-based providers) and new fiber-based competitors entering our footprint;
•changes in consumer preferences, laws and regulations or technology that may cause us to change our operational strategies;
•increased difficulty negotiating programming agreements on favorable terms, if at all, resulting in increased costs to us and/or the loss of popular programming;
•increasing programming costs and delivery expenses related to our products and services;
•our ability to achieve anticipated customer and revenue growth, to successfully introduce new products and services and to implement our growth strategy;
•our ability to complete our capital investment plans on time and on budget, including our plan to build a parallel fiber-to-the-home ("FTTH") network, and deploy Altice One, our entertainment and connectivity platform;
•our ability to develop mobile voice and data services and our ability to attract customers to these services;
•the effects of economic conditions or other factors which may negatively affect our customers’ demand for our current and future products and services;
•the effects of industry conditions;
•demand for digital and linear advertising products and services;
•our substantial indebtedness and debt service obligations;
•adverse changes in the credit market;
•changes as a result of any tax reforms that may affect our business;
•financial community and rating agency perceptions of our business, operations, financial condition, and the industries in which we operate;
•the restrictions contained in our financing agreements;
•our ability to generate sufficient cash flow to meet our debt service obligations;
•fluctuations in interest rates which may cause our interest expense to vary from quarter to quarter;
•technical failures, equipment defects, physical or electronic break-ins to our services, computer viruses and similar problems;
•cybersecurity incidents as a result of hacking, phishing, denial of service attacks, dissemination of computer viruses, ransomware and other malicious software, misappropriation of data, and other malicious attempts;
•disruptions to our networks, infrastructure and facilities as a result of natural disasters, power outages, accidents, maintenance failures, telecommunications failures, degradation of plant assets, terrorist attacks and similar events;
•labor shortages and supply chain disruptions;
•the impact from the coronavirus ("COVID-19") pandemic;
•our ability to obtain necessary hardware, software, communications equipment and services and other items from our vendors at reasonable costs;
•our ability to effectively integrate acquisitions and to maximize expected operating efficiencies from our acquisitions or as a result of the transactions, if any;
•significant unanticipated increases in the use of bandwidth-intensive Internet-based services;
•the outcome of litigation, government investigations and other proceedings; and
•other risks and uncertainties inherent in our cable and broadband communications businesses and our other businesses, including those listed under the caption "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 16, 2022 (the "Annual Report").
These factors are not necessarily all of the important factors that could cause our actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors could cause our actual results to differ materially from those expressed in any of our forward-looking statements.
Given these uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements are made only as of the date of this Quarterly Report. Except to the extent required by law, we do not undertake, and specifically decline any obligation, to update any forward-looking statements or to publicly announce the results of any revisions to any of such statements to reflect future events or developments. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.
You should read this Quarterly Report with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect. We qualify all forward-looking statements by these cautionary statements.
Certain numerical figures included in this Quarterly Report have been subject to rounding adjustments. Accordingly, such numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them.
Item 1. Financial Statements
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ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) |
| September 30, 2022 (Unaudited) | | December 31, 2021 |
ASSETS | | | |
Current Assets: | | | |
Cash and cash equivalents | $ | 250,576 | | | $ | 195,711 | |
Restricted cash | 265 | | | 264 | |
Accounts receivable, trade (less allowance for doubtful accounts of $37,900 and $27,931, respectively) | 343,355 | | | 406,952 | |
| | | |
Prepaid expenses and other current assets ($519 and $3,776 due from affiliates, respectively) | 164,412 | | | 183,714 | |
Derivative contracts | 481,914 | | | 2,993 | |
Investment securities pledged as collateral | 1,259,877 | | | — | |
| | | |
| | | |
| | | |
| | | |
Total current assets | 2,500,399 | | | 789,634 | |
Property, plant and equipment, net of accumulated depreciation of $7,649,014 and $7,142,852, respectively | 7,077,966 | | | 6,340,467 | |
| | | |
Right-of-use operating lease assets | 234,707 | | | 222,124 | |
Investment securities pledged as collateral | — | | | 2,161,937 | |
| | | |
Other assets | 264,974 | | | 76,653 | |
Amortizable intangibles, net of accumulated amortization of $5,421,667 and $5,051,149, respectively | 1,782,300 | | | 2,202,001 | |
Indefinite-lived cable television franchises | 13,216,355 | | | 13,216,355 | |
Goodwill | 8,205,863 | | | 8,205,863 | |
Total assets | $ | 33,282,564 | | | $ | 33,215,034 | |
LIABILITIES AND STOCKHOLDERS' DEFICIENCY | | | |
Current Liabilities: | | | |
Accounts payable | $ | 1,084,737 | | | $ | 1,023,045 | |
Interest payable | 224,278 | | | 244,934 | |
Accrued employee related costs | 155,384 | | | 124,941 | |
| | | |
Deferred revenue | 90,040 | | | 94,943 | |
Debt | 2,062,295 | | | 917,313 | |
Other current liabilities ($26,821 and $31,810 due to affiliates, respectively) | 352,772 | | | 329,943 | |
Total current liabilities | 3,969,506 | | | 2,735,119 | |
Other liabilities | 160,716 | | | 159,082 | |
Deferred tax liability | 4,956,050 | | | 5,048,129 | |
Liabilities under derivative contracts | — | | | 276,933 | |
Right-of-use operating lease liability | 245,360 | | | 237,226 | |
Long-term debt, net of current maturities | 24,290,003 | | | 25,629,447 | |
Total liabilities | 33,621,635 | | | 34,085,936 | |
Commitments and contingencies (Note 14) | | | |
Stockholders' Deficiency: | | | |
Preferred stock, $0.01 par value, 100,000,000 shares authorized, no shares issued and outstanding | — | | | — | |
Class A common stock: $0.01 par value, 4,000,000,000 shares authorized, 270,358,014 shares issued and 270,338,751 shares outstanding as of September 30, 2022 and 270,341,685 shares issued and 270,320,798 shares outstanding as of December 31, 2021 | 2,704 | | | 2,703 | |
Class B common stock: $0.01 par value, 1,000,000,000 shares authorized, 490,086,674 issued, 184,329,677 shares outstanding as of September 30, 2022 and 184,333,342 shares outstanding as of December 31, 2021 | 1,843 | | | 1,843 | |
Class C common stock: $0.01 par value, 4,000,000,000 shares authorized, no shares issued and outstanding | — | | | — | |
Paid-in capital | 137,660 | | | 18,005 | |
Accumulated deficit | (461,160) | | | (848,836) | |
| (318,953) | | | (826,285) | |
Treasury stock, at cost (19,263 and 20,887 Class A common shares, respectively) | — | | | — | |
Accumulated other comprehensive income | 5,432 | | | 6,497 | |
Total Altice USA stockholders' deficiency | (313,521) | | | (819,788) | |
Noncontrolling interests | (25,550) | | | (51,114) | |
Total stockholders' deficiency | (339,071) | | | (870,902) | |
Total liabilities and stockholders' deficiency | $ | 33,282,564 | | | $ | 33,215,034 | |
See accompanying notes to consolidated financial statements.
ALTICE USA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
Revenue (including revenue from affiliates of $649, $3,277, $1,765, and $9,718, respectively) (See Note 13) | $ | 2,393,552 | | | $ | 2,574,882 | | | $ | 7,278,463 | | | $ | 7,569,711 | |
Operating expenses: | | | | | | | |
Programming and other direct costs (including charges from affiliates of $4,086, $5,294, $11,419, and $12,026, respectively) (See Note 13) | 782,121 | | | 843,909 | | | 2,429,925 | | | 2,545,645 | |
Other operating expenses (including charges from affiliates of $3,111, $3,274, $9,243 and $9,149, respectively) (See Note 13) | 694,390 | | | 590,519 | | | 2,009,760 | | | 1,760,132 | |
Restructuring and other expense | 4,007 | | | 1,885 | | | 10,058 | | | 10,958 | |
Depreciation and amortization (including impairments) | 445,769 | | | 447,958 | | | 1,327,243 | | | 1,327,142 | |
| 1,926,287 | | | 1,884,271 | | | 5,776,986 | | | 5,643,877 | |
Operating income | 467,265 | | | 690,611 | | | 1,501,477 | | | 1,925,834 | |
Other income (expense): | | | | | | | |
Interest expense, net | (340,989) | | | (319,001) | | | (954,564) | | | (954,684) | |
Gain (loss) on investments | (425,686) | | | (46,821) | | | (902,060) | | | 151,651 | |
Gain (loss) on derivative contracts, net | 323,668 | | | 43,385 | | | 643,856 | | | (109,020) | |
Gain on interest rate swap contracts, net | 105,945 | | | 5,521 | | | 268,960 | | | 59,600 | |
Loss on extinguishment of debt and write-off of deferred financing costs | — | | | — | | | — | | | (51,712) | |
Other income, net | 3,245 | | | 2,280 | | | 8,196 | | | 7,606 | |
| (333,817) | | | (314,636) | | | (935,612) | | | (896,559) | |
Income before income taxes | 133,448 | | | 375,975 | | | 565,865 | | | 1,029,275 | |
Income tax expense | (35,827) | | | (105,226) | | | (152,563) | | | (279,053) | |
Net income | 97,621 | | | 270,749 | | | 413,302 | | | 750,222 | |
Net income attributable to noncontrolling interests | (12,670) | | | (3,896) | | | (25,626) | | | (11,573) | |
Net income attributable to Altice USA, Inc. stockholders | $ | 84,951 | | | $ | 266,853 | | | $ | 387,676 | | | $ | 738,649 | |
Income per share: | | | | | | | |
Basic income per share | $ | 0.19 | | | $ | 0.59 | | | $ | 0.86 | | | $ | 1.61 | |
Basic weighted average common shares (in thousands) | 453,239 | | | 454,049 | | | 453,233 | | | 460,023 | |
| | | | | | | |
Diluted income per share | $ | 0.19 | | | $ | 0.58 | | | $ | 0.86 | | | $ | 1.59 | |
Diluted weighted average common shares (in thousands) | 453,390 | | | 457,163 | | | 453,284 | | | 465,349 | |
Cash dividends declared per common share | $ | — | | | $ | — | | | $ | — | | | $ | — | |
See accompanying notes to consolidated financial statements.
ALTICE USA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
Net income | $ | 97,621 | | | $ | 270,749 | | | $ | 413,302 | | | $ | 750,222 | |
Other comprehensive income (loss): | | | | | | | |
Defined benefit pension plans | 540 | | | (2,084) | | | (1,515) | | | 8,056 | |
Applicable income taxes | (143) | | | 555 | | | 400 | | | (2,142) | |
Defined benefit pension plans, net of income taxes | 397 | | | (1,529) | | | (1,115) | | | 5,914 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Foreign currency translation adjustment | 159 | | | (619) | | | 50 | | | (140) | |
Applicable income taxes | — | | | — | | | — | | | — | |
Foreign currency translation adjustment, net of income taxes | 159 | | | (619) | | | 50 | | | (140) | |
Other comprehensive income (loss) | 556 | | | (2,148) | | | (1,065) | | | 5,774 | |
Comprehensive income | 98,177 | | | 268,601 | | | 412,237 | | | 755,996 | |
Comprehensive income attributable to noncontrolling interests | (12,670) | | | (3,896) | | | (25,626) | | | (11,573) | |
Comprehensive income attributable to Altice USA, Inc. stockholders | $ | 85,507 | | | $ | 264,705 | | | $ | 386,611 | | | $ | 744,423 | |
See accompanying notes to consolidated financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY (In thousands) (Unaudited) |
| Class A Common Stock | | Class B Common Stock | | Paid-in Capital | | Accumulated Deficit | | Treasury Stock | | Accumulated Other Comprehensive Income | | Total Altice USA Stockholders' Deficiency | | Non-controlling Interests | | Total Deficiency |
Balance at January 1, 2022 | $ | 2,703 | | | $ | 1,843 | | | $ | 18,005 | | | $ | (848,836) | | | $ | — | | | $ | 6,497 | | | $ | (819,788) | | | $ | (51,114) | | | $ | (870,902) | |
Net income attributable to stockholders | — | | | — | | | — | | | 196,551 | | | — | | | — | | | 196,551 | | | — | | | 196,551 | |
Net income attributable to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 5,590 | | | 5,590 | |
| | | | | | | | | | | | | | | | | |
Pension liability adjustments, net of income taxes | — | | | — | | | — | | | — | | | — | | | 1,843 | | | 1,843 | | | — | | | 1,843 | |
Foreign currency translation adjustment, net of income taxes | — | | | — | | | — | | | — | | | — | | | (170) | | | (170) | | | — | | | (170) | |
Share-based compensation expense (equity classified) | — | | | — | | | 40,512 | | | — | | | — | | | — | | | 40,512 | | | — | | | 40,512 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Issuance of common shares pursuant to employee long term incentive plan | — | | | — | | | 10 | | | — | | | — | | | — | | | 10 | | | — | | | 10 | |
| | | | | | | | | | | | | | | | | |
Balance at March 31, 2022 | 2,703 | | | 1,843 | | | 58,527 | | | (652,285) | | | — | | | 8,170 | | | (581,042) | | | (45,524) | | | (626,566) | |
Net income attributable to stockholders | — | | | — | | | — | | | 106,174 | | | — | | | — | | | 106,174 | | | — | | | 106,174 | |
Net income attributable to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 7,366 | | | 7,366 | |
| | | | | | | | | | | | | | | | | |
Pension liability adjustments, net of income taxes | — | | | — | | | — | | | — | | | — | | | (3,355) | | | (3,355) | | | — | | | (3,355) | |
Foreign currency translation adjustment, net of income taxes | — | | | — | | | — | | | — | | | — | | | 61 | | | 61 | | | — | | | 61 | |
Share-based compensation expense (equity classified) | — | | | — | | | 41,680 | | | — | | | — | | | — | | | 41,680 | | | — | | | 41,680 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Issuance of common shares pursuant to employee long term incentive plan | — | | | — | | | 6 | | | — | | | — | | | — | | | 6 | | | — | | | 6 | |
| | | | | | | | | | | | | | | | | |
Balance at June 30, 2022 | $ | 2,703 | | | $ | 1,843 | | | $ | 100,213 | | | $ | (546,111) | | | $ | — | | | $ | 4,876 | | | $ | (436,476) | | | $ | (38,158) | | | $ | (474,634) | |
See accompanying notes to consolidated financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY (In thousands) (Unaudited) |
| Class A Common Stock | | Class B Common Stock | | Paid-in Capital | | Accumulated Deficit | | Treasury Stock | | Accumulated Other Comprehensive Income | | Total Altice USA Stockholders'Deficiency | | Non-controlling Interests | | Total Deficiency |
Balance at June 30, 2022 | $ | 2,703 | | | $ | 1,843 | | | $ | 100,213 | | | $ | (546,111) | | | $ | — | | | $ | 4,876 | | | $ | (436,476) | | | $ | (38,158) | | | $ | (474,634) | |
Net income attributable to stockholders | — | | | — | | | — | | | 84,951 | | | — | | | — | | | 84,951 | | | — | | | 84,951 | |
Net income attributable to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 12,670 | | | 12,670 | |
Distributions to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (62) | | | (62) | |
Pension liability adjustments, net of income taxes | — | | | — | | | — | | | — | | | — | | | 397 | | | 397 | | | — | | | 397 | |
Foreign currency translation adjustment, net of income taxes | — | | | — | | | — | | | — | | | — | | | 159 | | | 159 | | | — | | | 159 | |
Share-based compensation expense (equity classified) | — | | | — | | | 37,527 | | | — | | | — | | | — | | | 37,527 | | | — | | | 37,527 | |
Issuance of common shares pursuant to employee long term incentive plan | 1 | | | — | | | (80) | | | — | | | — | | | — | | | (79) | | | — | | | (79) | |
| | | | | | | | | | | | | | | | | |
Balance at September 30, 2022 | $ | 2,704 | | | $ | 1,843 | | | $ | 137,660 | | | $ | (461,160) | | | $ | — | | | $ | 5,432 | | | $ | (313,521) | | | $ | (25,550) | | | $ | (339,071) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY (In thousands) (Unaudited) |
| Class A Common Stock | | Class B Common Stock | | Paid-in Capital | | Accumulated Deficit | | Treasury Stock | | Accumulated Other Comprehensive Income | | Total Altice USA Stockholders'Deficiency | | Non-controlling Interests | | Total Deficiency |
Balance at January 1, 2021 | $ | 2,972 | | | $ | 1,859 | | | $ | — | | | $ | (985,641) | | | $ | (163,866) | | | $ | 3,646 | | | $ | (1,141,030) | | | $ | (62,109) | | | $ | (1,203,139) | |
Net income attributable to stockholders | — | | | — | | | — | | | 274,136 | | | — | | | — | | | 274,136 | | | — | | | 274,136 | |
Net income attributable to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 4,403 | | | 4,403 | |
| | | | | | | | | | | | | | | | | |
Pension liability adjustments, net of income taxes | — | | | — | | | — | | | — | | | — | | | 6,356 | | | 6,356 | | | — | | | 6,356 | |
Foreign currency translation adjustment, net of income taxes | — | | | — | | | — | | | — | | | — | | | 619 | | | 619 | | | — | | | 619 | |
Share-based compensation expense (equity classified) | — | | | — | | | — | | | 27,964 | | | — | | | — | | | 27,964 | | | — | | | 27,964 | |
Redeemable equity vested | — | | | — | | | — | | | 20,131 | | | — | | | — | | | 20,131 | | | — | | | 20,131 | |
Change in redeemable equity | — | | | — | | | — | | | 2,528 | | | — | | | — | | | 2,528 | | | — | | | 2,528 | |
Class A shares acquired through share repurchase program and retired | (152) | | | — | | | — | | | (522,521) | | | — | | | — | | | (522,673) | | | — | | | (522,673) | |
Conversion of Class B to Class A shares | 1 | | | (1) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Issuance of common shares pursuant to employee long term incentive plan | 1 | | | — | | | — | | | 2,037 | | | 6 | | | — | | | 2,044 | | | — | | | 2,044 | |
Other | — | | | — | | | — | | | (4,244) | | | — | | | — | | | (4,244) | | | 4,302 | | | 58 | |
Balance at March 31, 2021 | $ | 2,822 | | | $ | 1,858 | | | $ | — | | | $ | (1,185,610) | | | $ | (163,860) | | | $ | 10,621 | | | $ | (1,334,169) | | | $ | (53,404) | | | $ | (1,387,573) | |
See accompanying notes to consolidated financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY (In thousands) (Unaudited) |
| Class A Common Stock | | Class B Common Stock | | Paid-in Capital | | Accumulated Deficit | | Treasury Stock | | Accumulated Other Comprehensive Income | | Total Altice USA Stockholders'Deficiency | | Non-controlling Interests | | Total Deficiency |
Balance at March 31, 2021 | $ | 2,822 | | | $ | 1,858 | | | $ | — | | | $ | (1,185,610) | | | $ | (163,860) | | | $ | 10,621 | | | $ | (1,334,169) | | | $ | (53,404) | | | $ | (1,387,573) | |
Net income attributable to stockholders | — | | | — | | | — | | | 197,660 | | | — | | | — | | | 197,660 | | | — | | | 197,660 | |
Net income attributable to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3,274 | | | 3,274 | |
Pension liability adjustments, net of income taxes | — | | | — | | | — | | | — | | | — | | | 1,088 | | | 1,088 | | | — | | | 1,088 | |
Foreign currency translation adjustment, net of income taxes | — | | | — | | | — | | | — | | | — | | | (140) | | | (140) | | | — | | | (140) | |
Share-based compensation expense (equity classified) | — | | | — | | | — | | | 27,385 | | | — | | | — | | | 27,385 | | | — | | | 27,385 | |
Redeemable equity vested | — | | | — | | | — | | | 3,618 | | | — | | | — | | | 3,618 | | | — | | | 3,618 | |
Change in redeemable equity | — | | | — | | | — | | | (514) | | | — | | | — | | | (514) | | | — | | | (514) | |
Class A shares acquired through share repurchase program and retired | (58) | | | — | | | — | | | (202,787) | | | — | | | — | | | (202,845) | | | — | | | (202,845) | |
| | | | | | | | | | | | | | | | | |
Issuance of common shares pursuant to employee long term incentive plan | 8 | | | — | | | — | | | (488) | | | 9,365 | | | — | | | 8,885 | | | — | | | 8,885 | |
Retirement of treasury stock | (59) | | | — | | | — | | | (154,436) | | | 154,495 | | | — | | | — | | | — | | | — | |
Other | — | | | — | | | — | | | 92 | | | — | | | — | | | 92 | | | 76 | | | 168 | |
Balance at June 30, 2021 | $ | 2,713 | | | $ | 1,858 | | | $ | — | | | $ | (1,315,080) | | | $ | — | | | $ | 11,569 | | | $ | (1,298,940) | | | $ | (50,054) | | | $ | (1,348,994) | |
See accompanying notes to consolidated financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY (In thousands) (Unaudited) |
| Class A Common Stock | | Class B Common Stock | | Paid-in Capital | | Accumulated Deficit | | Treasury Stock | | Accumulated Other Comprehensive Income | | Total Altice USA Stockholders'Deficiency | | Non-controlling Interests | | Total Deficiency |
Balance at June 30, 2021 | $ | 2,713 | | | $ | 1,858 | | | $ | — | | | $ | (1,315,080) | | | $ | — | | | $ | 11,569 | | | $ | (1,298,940) | | | $ | (50,054) | | | $ | (1,348,994) | |
Net income attributable to stockholders | — | | | — | | | — | | | 266,853 | | | — | | | — | | | 266,853 | | | — | | | 266,853 | |
Net income attributable to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3,896 | | | 3,896 | |
Pension liability adjustments, net of income taxes | — | | | — | | | — | | | — | | | — | | | (1,529) | | | (1,529) | | | — | | | (1,529) | |
Foreign currency translation adjustment, net of income taxes | — | | | — | | | — | | | — | | | — | | | (619) | | | (619) | | | — | | | ( |