Investor News Release

Mediacom Communications Reports Combined Results for Third Quarter 2018

MEDIACOM PARK, N.Y.--(BUSINESS WIRE)--MEDIACOM COMMUNICATIONS CORPORATION today released combined unaudited financial and operating highlights for the three months ended September 30, 2018.

Mediacom Combined Results for Third Quarter 2018*

Revenues were $493.2 million, reflecting a 4.6% increase from the prior year period
OIBDA was $184.0 million, reflecting a 6.4% increase from the prior year period
Capital expenditures were $80.7 million, compared to $90.0 million in the prior year period
Free cash flow was $81.5 million, compared to $56.5 million in the prior year period
Ending primary service units (“PSUs”) of 2,662,000, a 4.0% increase from September 30, 2017
Ending customer relationships of 1,365,000, a 0.2% increase from September 30, 2017
Total leverage ratio of 3.26x, compared to 3.81x at September 30, 2017
Interest coverage ratio of 8.45x, compared to 6.51x at September 30, 2017
Ending total debt of $2,400.0 million, a $240.0 million reduction from September 30, 2017

Reference to “Mediacom Combined” reflects the combined results of Mediacom Broadband LLC and Mediacom LLC, eliminating intercompany amounts. Mediacom LLC information is being voluntarily provided, as Mediacom LLC’s contractual obligation to file reports with the Securities and Exchange Commission (“SEC”) terminated in February 2017. Mediacom Combined information is being provided for convenience and informational purposes, and does not modify or supplement the previously released separate financial results of Mediacom Broadband LLC. Holders of Mediacom Broadband LLC debt should refer to its separate financial and operating results, which were previously released and furnished with the SEC on Form 8-K on November 1, 2018.

About Mediacom

Mediacom Communications Corporation is the 5th largest cable operator in the U.S. serving almost 1.4 million customers in smaller markets primarily in the Midwest and Southeast. Mediacom offers a wide array of information, communications and entertainment services to households and businesses, including video, high-speed data, phone, and home security and automation. Through Mediacom Business, the company provides innovative broadband solutions to commercial and public sector customers of all sizes, and sells advertising and production services under the OnMedia brand. More information about Mediacom is available at www.mediacomcable.com.


TABLE 1* Mediacom Communications Corporation Selected Combined Financial and Operating Data (Dollars in thousands, except per unit data) (Unaudited)

	Three Months Ended September 30,
		2018			2017		YoY % Change
Video	$	191,622		$	199,077		(3.7	%)
High-speed data		189,848			169,000		12.3	%
Phone		28,789			28,275		1.8	%
Business services		68,515			63,073		8.6	%
Advertising		14,408			12,160		18.5	%
Total revenues	$	493,182		$	471,585		4.6	%
Service costs		(213,050	)		(204,698	)	4.1	%
SG&A expenses		(85,584	)		(84,348	)	1.5	%
Management fees		(10,500	)		(9,500	)	10.5	%
OIBDA ^(a)	$	184,048		$	173,039		6.4	%
Cash interest expense ^(a)		(21,782	)		(26,600	)	(18.1	%)
Capital expenditures		(80,726	)		(89,985	)	(10.3	%)
Free cash flow ^(a)	$	81,540		$	56,454		44.4	%

OIBDA margin ^(b)		37.3	%		36.7	%


	September 30, 2018			September 30, 2017			YoY % Change
Video customers		793,000			823,000		(3.6	%)
High-speed data (“HSD”) customers		1,260,000			1,194,000		5.5	%
Phone customers		609,000			542,000		12.4	%
Primary service units (“PSUs”)		2,662,000			2,559,000		4.0	%

Video customer declines		(15,000	)		(6,000	)
HSD customer increases		9,000			9,000
Phone customer increases		10,000			22,000
Quarterly PSU increases		4,000			25,000

Customer relationships ^(c)		1,365,000			1,362,000		0.2	%

Average total monthly revenue per:
PSU ^(d)	$	61.80		$	61.73		0.1	%
Customer relationship ^(e)	$	120.30		$	115.33		4.3	%


	September 30, 2018			September 30, 2017
Bank credit facility	$	2,200,000		$	2,140,000
5½% senior notes due 2021		200,000			200,000
6⅜% senior notes due 2023	―				300,000
Total debt ^(f)	$	2,400,000		$	2,640,000

Total leverage ratio ^(g)	3.26x			3.81x
Interest coverage ratio ^(h)	8.45x			6.51x

* See Table 4 for information about our use of non-GAAP measures and definitions of OIBDA and free cash flow, Table 5 regarding the effect of recent changes to certain accounting standards on our revenue recognition and Table 6 for footnotes.


TABLE 2* Mediacom Communications Corporation Selected Combined Financial and Operating Data (Dollars in thousands, except per unit data) (Unaudited)

	Three Months Ended September 30, 2018
	Mediacom Broadband			Mediacom LLC			Eliminations			Mediacom Combined
Video	$	104,679		$	86,943		$ ―			$	191,622
High-speed data		102,834			87,014		―				189,848
Phone		15,540			13,249		―				28,789
Business services		41,951			26,564		―				68,515
Advertising		11,390			3,018		―				14,408
Total revenues	$	276,394		$	216,788		$ ―			$	493,182
Service costs		(115,781	)	(97,269)			―				(213,050	)
SG&A expenses		(51,768	)		(33,816	)	―				(85,584	)
Management fees		(6,325	)		(4,175	)	―				(10,500	)
OIBDA ^(a)	$	102,520		$	81,528		$ ―			$	184,048
Investment income from affiliate	―				4,500			(4,500	)	―
Adjusted OIBDA ^(a)	$	102,520		$	86,028		$	(4,500	)	$	184,048
Cash interest expense ^(a)		(12,009	)		(9,773	)	―				(21,782	)
Capital expenditures		(43,242	)		(37,484	)	―				(80,726	)
Dividend to preferred members		(4,500	)	―				4,500		―
Free cash flow ^(a)	$	42,769		$	38,771		$ ―			$	81,540


	Mediacom Broadband			Mediacom LLC						Mediacom Combined
Video customers		437,000			356,000						793,000
HSD customers		694,000			566,000						1,260,000
Phone customers		336,000			273,000						609,000
Primary service units (“PSUs”)		1,467,000			1,195,000						2,662,000

Video customer declines		(10,000	)		(5,000	)					(15,000	)
HSD customer increases		4,000			5,000						9,000
Phone customer increases		4,000			6,000						10,000
Quarterly PSU (declines) increases		(2,000	)		6,000						4,000

Customer relationships ^(c)		756,000			609,000						1,365,000

Average total monthly revenue per:
PSU ^(d)	$	62.76		$	60.62					$	61.80
Customer relationship ^(e)	$	121.79		$	118.46					$	120.30


	Mediacom Broadband			Mediacom LLC						Mediacom Combined
Bank credit facility	$	1,060,750		$	1,139,250					$	2,200,000
5½% senior notes due 2021		200,000		―							200,000
6⅜% senior notes due 2023	―			―						―
Total debt ^(f)	$	1,260,750		$	1,139,250					$	2,400,000

Total leverage ratio ^(g)	3.07x			3.31x						3.26x
Interest coverage ratio ^(h)	8.54x			8.80x						8.45x


TABLE 3* Mediacom Communications Corporation Selected Combined Financial and Operating Data (Dollars in thousands, except per unit data) (Unaudited)

	Three Months Ended September 30, 2017
	Mediacom Broadband			Mediacom LLC			Eliminations			Mediacom Combined
Video	$	109,793		$	89,284		$ ―			$	199,077
High-speed data		92,012			76,988		―				169,000
Phone		15,050			13,225		―				28,275
Business services		38,476			24,597		―				63,073
Advertising		9,706			2,454		―				12,160
Total revenues	$	265,037		$	206,548		$ ―			$	471,585
Service costs		(110,885	)		(93,813	)	―				(204,698	)
SG&A expenses		(50,256	)		(34,092	)	―				(84,348	)
Management fees		(5,650	)		(3,850	)	―				(9,500	)
OIBDA ^(a)	$	98,246		$	74,793		$ ―			$	173,039
Investment income from affiliate	―				4,500			(4,500	)	―
Adjusted OIBDA ^(a)	$	98,246		$	79,293		$	(4,500	)	$	173,039
Cash interest expense ^(a)		(16,271	)		(10,329	)	―				(26,600	)
Capital expenditures		(46,491	)		(43,494	)	―				(89,985	)
Dividend to preferred members		(4,500	)	―				4,500		―
Free cash flow ^(a)	$	30,984		$	25,470		$ ―			$	56,454


	Mediacom Broadband			Mediacom LLC						Mediacom Combined
Video customers		455,000			368,000						823,000
HSD customers		659,000			535,000						1,194,000
Phone customers		300,000			242,000						542,000
Primary service units (“PSUs”)		1,414,000			1,145,000						2,559,000

Video customer declines		(4,000	)		(2,000	)					(6,000	)
HSD customer increases		4,000			5,000						9,000
Phone customer increases		12,000			10,000						22,000
Quarterly PSU increases		12,000			13,000						25,000

Customer relationships ^(c)		754,000			608,000						1,362,000

Average total monthly revenue per:
PSU ^(d)	$	62.75		$	60.47					$	61.73
Customer relationship ^(e)	$	117.17		$	113.05					$	115.33


	Mediacom Broadband			Mediacom LLC						Mediacom Combined
Bank credit facility	$	972,000		$	1,168,000					$	2,140,000
5½% senior notes due 2021		200,000		―							200,000
6⅜% senior notes due 2023		300,000		―							300,000
Total debt ^(f)	$	1,472,000		$	1,168,000					$	2,640,000

Total leverage ratio ^(g)	3.75x			3.68x						3.81x
Interest coverage ratio ^(h)	6.04x			7.68x						6.51x

TABLE 4
Use of Non-GAAP Financial Measures

“OIBDA,” “Adjusted OIBDA,” “cash interest expense” and “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. 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.

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

TABLE 5
Changes in Accounting Standards – Revenue Recognition

As of January 1, 2018, we adopted Accounting Standards Update No. 2014-09 – Revenues from Contracts with Customers and related guidance (collectively, “revenue recognition”), which was issued by the Financial Accounting Standards Board. Adoption of this accounting standard affected both the timing of revenue recognition (the “timing change”) and the allocation of revenues among video, HSD and phone within our multi-product offerings, in which we offer product bundles at a discount (the “allocation change”). We adopted this accounting standard using a modified retrospective transition, and accordingly, the impact of such adoption was reflected in our financial results only for the three months ended September 30, 2018 and prior period results were not restated. The adoption of the new standard did not have a material impact on the results of operations of Mediacom Combined for the three months ended September 30, 2018. Excluding the impact of the timing change, on a combined basis, total revenues and OIBDA for the three months ended September 30, 2018, would have increased 4.7% and 6.8%, respectively. Because of the allocation change, we recorded a decrease in our video revenues and corresponding increases in our HSD and phone revenues. Excluding the overall impact of the timing change and the allocation change, on a combined basis, video revenues would have decreased 0.7%, HSD revenues would have increased 10.1% and phone revenues would have decreased 3.2% for the three months ended September 30, 2018.

TABLE 6
Footnotes

^(a)		See Table 4 for information regarding our use of non-GAAP financial measures.
^(b)		Represents OIBDA as a percentage of total revenues.
^(c)		Represents the total number of customers that take at least one service, without regard to which service(s) customers purchase.
^(d)		Represents average total monthly revenues for the period divided by average PSUs for such period.
^(e)		Represents average total monthly revenues for the period divided by average customer relationships for such period.
^(f)		Total debt excludes the effect of deferred financing costs, net.
^(g)		For Mediacom Combined and Mediacom Broadband LLC, represents total debt at period end divided by annualized OIBDA for the period. For Mediacom LLC, represents total debt at period end divided by annualized Adjusted OIBDA for the period.
^(h)		For Mediacom Combined and Mediacom Broadband LLC, represents OIBDA divided by cash interest expense for the period. For Mediacom LLC, represents Adjusted OIBDA divided by cash interest expense for the period.

Contacts

Mediacom Communications Corporation
Investor Relations
Jack P. Griffin, 845-443-2654
Group Vice President,
Corporate Finance
or
Media Relations
Thomas J. Larsen, 845-443-2754
Senior Vice President,
Government and Public Relations