NEW YORK--(BUSINESS WIRE)--Altice USA (NYSE: ATUS) today reports results for the fourth quarter and full year ended December 31, 2024.
Dennis Mathew, Altice USA Chairman and Chief Executive Officer, said: "2024 was a transformative year for Optimum, marked by significant progress in strengthening our operations, enhancing customer experiences, and reinforcing financial discipline. We delivered record fourth quarter and full-year fiber and mobile performance, improved operational efficiency, and maintained positive Free Cash Flow despite a challenging macro and competitive environment. As we enter phase two of our transformation in 2025, we remain focused on expanding our product portfolio and AI-driven capabilities, enhancing margins through continued efficiencies, and accelerating multi-gig availability - all while demonstrating strong capital stewardship to support our long-term growth objectives."
Fourth Quarter and Full Year 2024 Financial Overview
- Total revenue of $2.2 billion in Q4 2024 (-2.9% year over year), and $9.0 billion in FY 2024 (-3.1% year over year)
- Residential revenue of $1.7 billion in Q4 2024 (-5.6% year over year), and $6.9 billion in FY 2024 (-4.6% year over year)
- Residential revenue per user ("ARPU")(1) of $133.95 in Q4 2024 (-1.5% year over year), and $135.44 in FY 2024 (-1.0% year over year)
- Business Services revenue of $371.3 million in Q4 2024 (-0.2% year over year), and $1.5 billion in FY 2024 (+0.3% year over year)
- News and Advertising revenue of $157.5 million in Q4 2024 (+23.0% year over year), and $486.2 million in FY 2024 (+8.6% year over year)
- Net income (loss) attributable to stockholders of ($54.1) million ($(0.12)/share on a diluted basis) in Q4 2024 and ($102.9) million ($(0.22)/share on a diluted basis) in FY 2024, compared to ($117.8) million ($(0.26)/share on a diluted basis) in Q4 2023 and $53.2 million ($0.12/share on a diluted basis) in FY 2023
- Net cash flows from operating activities of $1.6 billion in FY 2024 and $1.8 billion in FY 2023
- Adjusted EBITDA(2) of $837.5 million (-7.3% year over year) and margin of 37.5% in Q4 2024. Adjusted EBITDA(2) of $3.4 billion (-5.4% year over year) and margin of 38.1% in FY 2024
- Cash capital expenditures of $390.0 million (+32.1% year over year) and capital intensity(3) of 17.5% (14.8% excluding fiber and new builds) in Q4 2024. Cash capital expenditures of $1.4 billion (-15.9% year over year) and capital intensity(3) of 16.0% (13.0% excluding fiber and new builds) in FY 2024
- Free Cash Flow(2) of $49.9 million in Q4 2024, and $149.4 million in FY 2024, including $37.3 million of higher cash interest in FY 2024 year over year
Fourth Quarter and Full Year 2024 Key Operational Highlights
- Highest Ever Fiber Net Additions, Reaching 538k Fiber Customers, a +58% Increase in Total Fiber Customers Compared to Y/E 2023
- Fiber customer growth accelerated in Q4 2024 and FY 2024 with +57k and +197k fiber net additions, respectively, representing Optimum's best quarter and full year ever for fiber net adds
- Fiber network penetration reached 18.2% at the end of Q4 2024, up from 12.5% at the end of Q4 2023
- Best Mobile Line Net Add Performance in 5 Years, Reaching 460k Lines, a +43% Increase in Ending Mobile Lines Compared to Y/E 2023
- Optimum Mobile added net mobile lines of +40k in Q4 2024 and +137k in FY 2024
- 5.7% of broadband base converged with mobile(4) at the end of Q4 2024, up from 3.5% at the end of Q4 2023
- Evolving Video Strategy To Align Products and Offerings With Customer Preferences
- Keeping the customer at the center of the conversation and providing options and flexibility that customers want by leveraging data-driven viewership insights to guide negotiations and optimize value
- Introduced new TV packages in 2024 -- Entertainment TV, Extra TV, & Everything TV -- which drive more value via mutually beneficial programming agreements, offer consumers more content flexibility and are available alongside a customer's favorite streaming services via Optimum Stream
- Our new TV packages supported improvement in video gross add attachment rate(5) to ~20% in Q4 2024, up over 200 basis points quarter over quarter, inflecting on multi-year trends of declining video attachment rates
- FY 2024 video programming cost inflation per subscriber(6) improved over the last two years to ~4% in FY 2024, a marked improvement from the average cost inflation of 6-8% in the years prior.
- Total Broadband Primary Service Units (PSUs) Net Losses of -39k(7) in Q4 2024 and -170k(7)(8) in FY 2024
- Broadband net losses were -39k(7) in Q4 2024, compared to -27k in Q4 2023, and -170k(7)(8) in FY 2024, compared to -114k in FY 2023
- Performance was driven by continued low levels of switching activity, competitive pressures across our footprint, and muted trends in the income-constrained segment
- Optimum Network Expansion and Multi-Gig Rollout
- Total passings additions of +54k(7) in Q4 2024 and +210k(7) in FY 2024, reaching 9.8 million total passings and expanding Optimum's footprint by +2.1%(7) in FY 2024
- Fiber passings additions of +68k in Q4 2024 and +227k in FY 2024, reaching 3.0 million fiber passings and 18.2% penetration at Y/E 2024
- At the end of 2024, multi-gig speeds were enabled in ~30% of the total footprint (on fiber network), with a path to 65% multi-gig enabled by year end 2028 through fiber network growth and HFC mid-split upgrades
- Truck rolls(9) and service calls(10) each reduced by 11% in FY 2024
- Lightpath Establishing a Presence Within the Hyperscaler and AI Ecosystem
- Lightpath's highest revenue of $414 million(11) in FY 2024 (+5.5% year over year)
- At the end of 2024, Lightpath had $110 million in awarded contracts with Hyperscalers and an AI-related infrastructure connectivity sales pipeline of nearly $1 billion across 10 markets, which is expected to continue to grow
- Lightpath completed its acquisition of substantially all of the assets of United Fiber and Data, which connects Lightpath's existing network in NY with one of the largest data center markets in the world through long haul fiber, and increases the serviceable market in Manhattan by 20%
2025 Priorities
- Revenue Opportunity
- Improve broadband subscriber trends; Increase value-added services; Grow mobile penetration; Expand B2B product portfolio
- Operational Efficiency
- Expand product margins and the use of AI, digital, and self-service tools
- Network Strength
- Grow fiber footprint through new builds; Grow multi-gig availability; Accelerate fiber migrations
- Sustainable Capital Structure
- Deliver enhanced capital efficiency to support liquidity and growth objectives
Balance Sheet Review as of December 31, 2024
- Net debt(12) for CSC Holdings, LLC Restricted Group was $23,241 million at the end of Q4 2024, representing net leverage of 7.4x L2QA(13)
- The weighted average cost of debt for CSC Holdings, LLC Restricted Group was 6.7% and the weighted average life of debt was 4.1 years
- Net debt(12) for Cablevision Lightpath LLC was $1,438 million at the end of Q4 2024, representing net leverage of 5.6x L2QA(13)
- The weighted average cost of debt for Cablevision Lightpath LLC was 5.5% and the weighted average life of debt was 3.1 years
- Consolidated net debt(12) for Altice USA was $24,644 million, representing consolidated net leverage of 7.3x L2QA(13)
- The weighted average cost of debt for consolidated Altice USA was 6.7% and the weighted average life of debt was 4.1 years
Shares Outstanding
- As of December 31, 2024, Altice USA had 463,204,545 combined shares of Class A and Class B common stock outstanding.
Customer Metrics
| ||||||||||
Q1-23 | Q2-23 | Q3-23 | Q4-23 | FY-23 | Q1-24 | Q2-24 | Q3-24 | Q4-24 | FY-24 | |
Total Passings(7)(14) | 9,512.2 | 9,578.6 | 9,609.0 | 9,628.7 | 9,628.7 | 9,679.3 | 9,746.4 | 9,784.7 | 9,830.8 | 9,830.8 |
Total Passings additions | 48.4 | 66.4 | 30.4 | 19.7 | 164.9 | 50.6 | 67.2 | 38.3 | 54.4 | 210.4 |
Total Customer Relationships(7)(8)(15)(16) | ||||||||||
Residential | 4,472.4 | 4,429.5 | 4,391.5 | 4,363.1 | 4,363.1 | 4,326.8 | 4,272.3 | 4,217.5 | 4,173.7 | 4,173.7 |
SMB | 380.9 | 381.0 | 381.1 | 380.3 | 380.3 | 379.7 | 379.7 | 378.4 | 376.6 | 376.6 |
Total Unique Customer Relationships | 4,853.3 | 4,810.5 | 4,772.6 | 4,743.5 | 4,743.5 | 4,706.5 | 4,652.0 | 4,595.9 | 4,550.3 | 4,550.3 |
Residential net additions (losses) | (26.1) | (42.9) | (38.0) | (28.4) | (135.4) | (36.3) | (54.5) | (54.8) | (41.8) | (187.4) |
Business Services net additions (losses) | (0.3) | 0.1 | 0.1 | (0.8) | (0.9) | (0.7) | 0.0 | (1.2) | (1.8) | (3.7) |
Total customer net additions (losses) | (26.4) | (42.7) | (37.9) | (29.2) | (136.2) | (37.0) | (54.5) | (56.1) | (43.6) | (191.1) |
Residential PSUs(7)(8) | ||||||||||
Broadband | 4,263.7 | 4,227.0 | 4,196.0 | 4,169.0 | 4,169.0 | 4,139.7 | 4,088.7 | 4,039.5 | 3,999.9 | 3,999.9 |
Video | 2,380.5 | 2,312.2 | 2,234.6 | 2,172.4 | 2,172.4 | 2,094.7 | 2,021.9 | 1,944.8 | 1,880.1 | 1,880.1 |
Telephony | 1,703.5 | 1,640.8 | 1,572.7 | 1,515.3 | 1,515.3 | 1,452.1 | 1,391.1 | 1,326.0 | 1,269.2 | 1,269.2 |
Broadband net additions (losses) | (19.2) | (36.8) | (31.0) | (27.0) | (113.9) | (29.4) | (51.0) | (49.2) | (37.7) | (167.3) |
Video net additions (losses) | (58.6) | (68.3) | (77.6) | (62.2) | (266.7) | (77.7) | (72.8) | (77.0) | (64.3) | (291.8) |
Telephony net additions (losses) | (60.6) | (62.7) | (68.1) | (57.4) | (248.9) | (63.1) | (61.1) | (65.1) | (56.7) | (246.0) |
Residential ARPU(1) ($) | 135.32 | 137.44 | 138.42 | 136.01 | 136.80 | 135.67 | 135.95 | 135.77 | 133.95 | 135.44 |
SMB PSUs | ||||||||||
Broadband | 349.0 | 349.1 | 349.4 | 348.9 | 348.9 | 348.5 | 348.8 | 347.7 | 346.1 | 346.1 |
Video | 95.3 | 93.7 | 91.9 | 89.6 | 89.6 | 87.3 | 85.4 | 83.3 | 81.0 | 81.0 |
Telephony | 210.0 | 208.0 | 205.9 | 203.2 | 203.2 | 200.7 | 199.2 | 196.8 | 194.5 | 194.5 |
Broadband net additions (losses) | (0.1) | 0.1 | 0.3 | (0.5) | (0.2) | (0.4) | 0.3 | (1.1) | (1.6) | (2.8) |
Video net additions (losses) | (2.0) | (1.6) | (1.8) | (2.3) | (7.7) | (2.3) | (1.9) | (2.1) | (2.2) | (8.5) |
Telephony net additions (losses) | (2.3) | (2.0) | (2.1) | (2.6) | (9.1) | (2.6) | (1.4) | (2.4) | (2.3) | (8.8) |
Total Mobile Lines(17) | ||||||||||
Mobile ending lines | 247.9 | 264.2 | 288.2 | 322.2 | 322.2 | 351.6 | 384.5 | 420.1 | 459.6 | 459.6 |
Mobile ending lines excluding free service | 223.3 | 257.9 | 288.1 | 322.2 | 322.2 | 351.6 | 384.5 | 420.1 | 459.6 | 459.6 |
Mobile line net additions | 7.6 | 16.3 | 24.1 | 34.0 | 82.0 | 29.3 | 33.0 | 35.5 | 39.5 | 137.4 |
Mobile line net additions ex-free service | 14.6 | 34.6 | 30.3 | 34.1 | 113.5 | 29.3 | 33.0 | 35.5 | 39.5 | 137.4 |
Fiber ("FTTH") Customer Metrics
| ||||||||||
Q1-23 | Q2-23 | Q3-23 | Q4-23 | FY-23 | Q1-24 | Q2-24 | Q3-24 | Q4-24 | FY-24 | |
FTTH Total Passings(18) | 2,373.0 | 2,659.5 | 2,720.2 | 2,735.2 | 2,735.2 | 2,780.0 | 2,842.0 | 2,893.7 | 2,961.8 | 2,961.8 |
FTTH Total Passing additions | 214.2 | 286.6 | 60.7 | 14.9 | 576.4 | 44.8 | 62.0 | 51.7 | 68.1 | 226.6 |
FTTH Residential customer relationships | 207.2 | 245.9 | 289.3 | 333.8 | 333.8 | 385.2 | 422.7 | 468.5 | 523.4 | 523.4 |
FTTH SMB customer relationships | 2.7 | 3.9 | 5.7 | 7.6 | 7.6 | 9.4 | 11.4 | 13.1 | 14.7 | 14.7 |
FTTH Total Customer Relationships(19) | 209.9 | 249.7 | 295.1 | 341.4 | 341.4 | 394.6 | 434.1 | 481.6 | 538.2 | 538.2 |
FTTH Residential net additions | 37.2 | 38.6 | 43.4 | 44.5 | 163.8 | 51.4 | 37.5 | 45.7 | 55.0 | 189.6 |
FTTH SMB net additions | 0.9 | 1.2 | 1.9 | 1.8 | 5.8 | 1.9 | 2.0 | 1.7 | 1.7 | 7.2 |
FTTH Total Customer Net Additions | 38.1 | 39.8 | 45.3 | 46.3 | 169.7 | 53.2 | 39.5 | 47.4 | 56.6 | 196.8 |
Altice USA Consolidated Operating Results
| |||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
(unaudited) | |||||||||||||||
Revenue: | |||||||||||||||
Broadband | $ | 900,060 | $ | 939,811 | $ | 3,645,460 | $ | 3,824,472 | |||||||
Video | 686,444 | 750,454 | 2,896,600 | 3,072,011 | |||||||||||
Telephony | 65,393 | 72,808 | 277,938 | 300,198 | |||||||||||
Mobile | 34,149 | 23,019 | 117,084 | 77,012 | |||||||||||
Residential revenue | 1,686,046 | 1,786,092 | 6,937,082 | 7,273,693 | |||||||||||
Business services and wholesale | 371,258 | 371,952 | 1,471,764 | 1,467,149 | |||||||||||
News and Advertising | 157,485 | 128,056 | 486,172 | 447,742 | |||||||||||
Other | 20,238 | 15,512 | 59,399 | 48,480 | |||||||||||
Total revenue | 2,235,027 | 2,301,612 | 8,954,417 | 9,237,064 | |||||||||||
Operating expenses: | |||||||||||||||
Programming and other direct costs | 721,893 | 745,305 | 2,896,570 | 3,029,842 | |||||||||||
Other operating expenses | 692,472 | 671,607 | 2,711,828 | 2,646,258 | |||||||||||
Restructuring, impairments and other operating items | 8,171 | 175,424 | 23,696 | 214,727 | |||||||||||
Depreciation and amortization (including impairments) | 471,728 | 407,014 | 1,642,231 | 1,644,297 | |||||||||||
Operating income | 340,763 | 302,262 | 1,680,092 | 1,701,940 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net | (434,902 | ) | (422,917 | ) | (1,763,166 | ) | (1,639,120 | ) | |||||||
Gain (loss) on investments and sale of affiliate interests, net | 378 | (11,773 | ) | 670 | 180,237 | ||||||||||
Loss on derivative contracts, net | - | - | - | (166,489 | ) | ||||||||||
Gain (loss) on interest rate swap contracts, net | 8,412 | (46,044 | ) | 18,632 | 32,664 | ||||||||||
Gain (loss) on extinguishment of debt and write-off of deferred financing costs | (5,866 | ) | - | (12,901 | ) | 4,393 | |||||||||
Other income (expense), net | (1,149 | ) | (2,225 | ) | (5,675 | ) | 4,940 | ||||||||
Income (loss) before income taxes | (92,364 | ) | (180,697 | ) | (82,348 | ) | 118,565 | ||||||||
Income tax benefit (expense) | 46,116 | 66,905 | 4,071 | (39,528 | ) | ||||||||||
Net income (loss) | (46,248 | ) | (113,792 | ) | (78,277 | ) | 79,037 | ||||||||
Net income attributable to noncontrolling interests | (7,868 | ) | (4,014 | ) | (24,641 | ) | (25,839 | ) | |||||||
Net income (loss) attributable to Altice USA stockholders | $ | (54,116 | ) | $ | (117,806 | ) | $ | (102,918 | ) | $ | 53,198 | ||||
Basic net income (loss) per share | $ | (0.12 | ) | $ | (0.26 | ) | $ | (0.22 | ) | $ | 0.12 | ||||
Diluted net income (loss) per share | $ | (0.12 | ) | $ | (0.26 | ) | $ | (0.22 | ) | $ | 0.12 | ||||
Basic weighted average common shares | 461,536 | 454,785 | 459,888 | 454,723 | |||||||||||
Diluted weighted average common shares | 461,536 | 454,785 | 459,888 | 455,034 | |||||||||||
Altice USA Consolidated Statements of Cash Flows
| |||||||
Twelve Months Ended December 31, | |||||||
2024 | 2023 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (78,277 | ) | $ | 79,037 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization (including impairments) | 1,642,231 | 1,644,297 | |||||
Gain on investments and sale of affiliate interests, net | (670 | ) | (180,237 | ) | |||
Loss on derivative contracts, net | - | 166,489 | |||||
Loss (gain) on extinguishment of debt and write-off of deferred financing costs | 12,901 | (4,393 | ) | ||||
Amortization of deferred financing costs and discounts (premiums) on indebtedness | 19,628 | 34,440 | |||||
Share-based compensation | 67,162 | 47,926 | |||||
Deferred income taxes | (396,052 | ) | (226,915 | ) | |||
Decrease in right-of-use assets | 44,632 | 46,108 | |||||
Allowance for credit losses | 86,561 | 84,461 | |||||
Goodwill impairment | - | 163,055 | |||||
Other | 6,436 | 11,169 | |||||
Change in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||||||
Accounts receivable, trade | (58,917 | ) | (77,703 | ) | |||
Prepaid expenses and other assets | 30,205 | (54,782 | ) | ||||
Amounts due from and due to affiliates | (44,486 | ) | 50,831 | ||||
Accounts payable and accrued liabilities | 3,880 | (68,784 | ) | ||||
Interest payable | 131,701 | 29,528 | |||||
Deferred revenue | 11,018 | 9,164 | |||||
Interest rate swap contracts | 104,448 | 72,707 | |||||
Net cash provided by operating activities | 1,582,401 | 1,826,398 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (1,433,013 | ) | (1,704,811 | ) | |||
Payments for acquisitions, net of cash acquired | (38,532 | ) | - | ||||
Other, net | 16,032 | (1,712 | ) | ||||
Net cash used in investing activities | (1,455,513 | ) | (1,706,523 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from long-term debt | 4,214,750 | 2,700,000 | |||||
Repayment of debt | (4,223,233 | ) | (2,688,009 | ) | |||
Proceeds from derivative contracts in connection with the settlement of collateralized debt | - | 38,902 | |||||
Principal payments on finance lease obligations | (127,349 | ) | (149,297 | ) | |||
Payment related to acquisition of a noncontrolling interest | (7,261 | ) | (14,070 | ) | |||
Additions to deferred financing costs | (19,560 | ) | (7,247 | ) | |||
Other, net | (9,325 | ) | (2,870 | ) | |||
Net cash used in financing activities | (171,978 | ) | (122,591 | ) | |||
Net decrease in cash and cash equivalents | (45,090 | ) | (2,716 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (424 | ) | (697 | ) | |||
Net decrease in cash and cash equivalents | (45,514 | ) | (3,413 | ) | |||
Cash, cash equivalents and restricted cash at beginning of year | 302,338 | 305,751 | |||||
Cash, cash equivalents and restricted cash at end of year | $ | 256,824 | $ | 302,338 | |||
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, impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees). We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue.
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 our operating performance. 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 our 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 U.S. generally accepted accounting principles ("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 Free Cash Flow (defined as net cash flows from operating activities less cash capital expenditures) as a liquidity measure. We believe this measure is useful to investors in evaluating our ability to service our debt and make continuing investments with internally generated funds, although it may not be directly comparable to similar measures reported by other companies.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
| |||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2024 | 2023 | 2024 |
| 2023 | |||||||||||
Net income (loss) | $ | (46,248 | ) | $ | (113,792 | ) | $ | (78,277 | ) | $ | 79,037 | ||||
Income tax expense (benefit) | (46,116 | ) | (66,905 | ) | (4,071 | ) | 39,528 | ||||||||
Other loss (income), net | 1,149 | 2,225 | 5,675 | (4,940 | ) | ||||||||||
Loss (gain) on interest rate swap contracts, net | (8,412 | ) | 46,044 | (18,632 | ) | (32,664 | ) | ||||||||
Loss on derivative contracts, net | - | - | - | 166,489 | |||||||||||
Loss (gain) on investments and sale of affiliate interests, net | (378 | ) | 11,773 | (670 | ) | (180,237 | ) | ||||||||
Loss (gain) on extinguishment of debt and write-off of deferred financing costs | 5,866 | - | 12,901 | (4,393 | ) | ||||||||||
Interest expense, net | 434,902 | 422,917 | 1,763,166 | 1,639,120 | |||||||||||
Depreciation and amortization | 471,728 | 407,014 | 1,642,231 | 1,644,297 | |||||||||||
Restructuring, impairments and other operating items | 8,171 | 175,424 | 23,696 | 214,727 | |||||||||||
Share-based compensation | 16,811 | 18,558 | 67,162 | 47,926 | |||||||||||
Adjusted EBITDA | 837,473 | 903,258 | 3,413,181 | 3,608,890 | |||||||||||
Adjusted EBITDA margin | 37.5 | % | 39.2 | % | 38.1 | % | 39.1 | % | |||||||
Reconciliation of net cash flow from operating activities to Free Cash Flow
| |||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Net cash flows from operating activities | $ | 439,922 | $ | 496,213 | $ | 1,582,401 | $ | 1,826,398 | |||
Less: Capital expenditures (cash) | 390,038 | 295,250 | 1,433,013 | 1,704,811 | |||||||
Free Cash Flow | $ | 49,884 | $ | 200,963 | $ | 149,388 | $ | 121,587 | |||
Consolidated Net Debt as of December 31, 2024
| |||||
CSC Holdings, LLC Restricted Group | Principal
| Coupon /
| Maturity | ||
Drawn RCF | $1,700 | SOFR+2.350% | 2027 | ||
Term Loan B-5 | 2,858 | L+2.500%(20) | 2027 | ||
Term Loan B-6 | 1,967 | SOFR+4.500% | 2028(21) | ||
Guaranteed Notes | 1,310 | 5.500% | 2027 | ||
Guaranteed Notes | 1,000 | 5.375% | 2028 | ||
Guaranteed Notes | 1,000 | 11.250% | 2028 | ||
Guaranteed Notes | 2,050 | 11.750% | 2029 | ||
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 | 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 | 23,359 | ||||
CSC Holdings, LLC Restricted Group Cash | (118) | ||||
CSC Holdings, LLC Restricted Group Net Debt | $23,241 | ||||
CSC Holdings, LLC Restricted Group Undrawn RCF | $611 | ||||
Cablevision Lightpath LLC | Principal
| Coupon /
| Maturity | ||
Drawn RCF(22) | $- | SOFR+3.360% | |||
Term Loan(22) | 676 | SOFR+3.360% | 2027 | ||
Senior Secured Notes | 450 | 3.875% | 2027 | ||
Senior Notes | 415 | 5.625% | 2028 | ||
Cablevision Lightpath Gross Debt | 1,541 | ||||
Cablevision Lightpath Cash | (103) | ||||
Cablevision Lightpath Net Debt | $1,438 | ||||
Cablevision Lightpath Undrawn RCF | $115 | ||||
Net Leverage Schedule as of December 31, 2024
| |||||||
CSC Holdings
| Cablevision
| CSC Holdings
| Altice USA
| ||||
Gross Debt Consolidated(25) | $23,359 | $1,541 | $24,900 | $24,900 | |||
Cash | (118) | (103) | (246) | (257) | |||
Net Debt Consolidated(12) | $23,241 | $1,438 | $24,654 | $24,644 | |||
LTM EBITDA | $3,162 | $248 | $3,411 | $3,413 | |||
L2QA(13) EBITDA | $3,136 | $256 | $3,395 | $3,399 | |||
Net Leverage (LTM) | 7.3x | 5.8x | 7.2x | 7.2x | |||
Net Leverage (L2QA)(13) | 7.4x | 5.6x | 7.3x | 7.3x | |||
WACD (%) | 6.7% | 5.5% | 6.7% | 6.7% | |||
Reconciliation to Financial Reported Debt | |
Altice USA
| |
Total Debenture and Loans from Financial Institutions (Carrying Amount) | $24,861 |
Unamortized financing costs and discounts, net of unamortized premiums | 39 |
Gross Debt Consolidated(25) | 24,900 |
Finance leases and supply chain financing | 196 |
Total Debt | 25,096 |
Cash | (257) |
Net Debt Including Finance Leases and Supply Chain Financing | $24,839 |
(1) | ARPU is calculated by dividing the average monthly revenue for the respective period derived from the sale of broadband, video, telephony and mobile services to residential customers by the average number of total residential customers for the same period and excludes mobile-only customer relationships. | |
(2) | See "Reconciliation of Non-GAAP Financial Measures" beginning on page 8 of this earnings release. | |
(3) | Capital intensity refers to total cash capital expenditures as a percentage of total revenue. | |
(4) | Broadband base converged with mobile is expressed as the percentage of customers subscribing to both broadband and mobile services divided by the total broadband customer base. Excludes mobile only customers. | |
(5) | Video gross add attachment rate represents the percent of total customer gross additions that subscribe to a video product. | |
(6) | Video programming cost inflation per subscriber is calculated as the change in total residential and SMB video programming costs divided by the average number of video subscribers. | |
(7) | Subscriber net additions (losses) and passings additions exclude 8.3k passings, 2.1k customer relationships, 1.9k broadband subscribers and 0.5k video subscribers that were transferred in connection with a small system sale in Q4 2024. | |
(8) | Customer metrics as of September 30, 2024 reflect adjustments to align to the Company's bulk residential subscriber count policy, resulting in an increase of 4.7 thousand residential customer relationships, 3.8 thousand broadband customers and 5.2 thousand video customers. The impact of these adjustments to customer relationships, broadband and video customer net additions was not material for any period presented and as such prior period metrics were not restated. | |
(9) | Compares truck rolls, excluding employee initiated special request orders, in FY 2024 compared to FY 2023. | |
(10) | Compares technical, care and support calls volume in FY 2024 compared to FY 2023. | |
(11) | Lightpath revenue is reported on a consolidated basis and eliminates intercompany revenue. | |
(12) | Net debt, defined as the principal amount of debt less cash, and excluding finance leases and other notes. | |
(13) | L2QA leverage is calculated as quarter end net leverage divided by the last two quarters of Adjusted EBITDA annualized. | |
(14) | Total passings represents the estimated number of single residence homes, apartments and condominium units passed by the HFC and FTTH network in areas serviceable without further extending the transmission lines. In addition, it includes commercial establishments that have connected to our HFC and FTTH network. Broadband services were not available to approximately 30 thousand total passings and telephony services were not available to approximately 500 thousand total passings. | |
(15) | Total Unique Customer Relationships represent the number of households/businesses that receive at least one of our fixed-line services. Customers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one customer, regardless of size, revenue generated, or number of boxes, units, or outlets on our hybrid-fiber-coaxial (HFC) and fiber-to-the-home (FTTH) network. Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group. Most of these accounts are also not entirely free, as they typically generate revenue through pay-per-view or other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion. In counting bulk residential customers, such as an apartment building, we count each subscribing unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual room units at that hotel. | |
(16) | Total Customer Relationship metrics do not include mobile-only customers. | |
(17) | Mobile lines represent the number of residential and business customers' wireless connections, which include mobile phone handsets and other mobile wireless connected devices. An individual customer relationship may have multiple mobile lines. The 2024 and 2023 ending lines include approximately 4.4 thousand and 2.8 thousand lines related to business customers, respectively. The revenue related to these business customers is reflected in "Business services and wholesale" in the table above. Mobile ending lines include lines receiving free service. Mobile ending lines excluding free service exclude additions relating to mobile lines receiving free service from all periods presented, and includes net additions from when customers previously on free service start making payments. | |
(18) | Represents the estimated number of single residence homes, apartments and condominium units passed by the FTTH network in areas serviceable without further extending the transmission lines. In addition, it includes commercial establishments that have connected to our FTTH network. | |
(19) | Represents number of households/businesses that receive at least one of our fixed-line services on our FTTH network. FTTH customers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one customer, regardless of size, revenue generated, or number of boxes, units, or outlets on our FTTH network. Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group. Most of these accounts are also not entirely free, as they typically generate revenue through pay-per view or other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion. In counting bulk residential customers, such as an apartment building, we count each subscribing unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual room units at that hotel. | |
(20) | The Incremental Term Loan B-5 bears interest at a rate equal to Synthetic USD London Interbank Offered Rate plus 2.50% per annum through March 31, 2025. Thereafter, we will be required to pay interest at a rate equal to the alternate base rate ("ABR"), plus the applicable margin, where the ABR is the greater of (x) prime rate or (y) the federal funds effective rate plus 50 basis points and the applicable margin for any ABR loan is 1.50% per annum. | |
(21) | The Incremental Term Loan B-6 is due on the earlier of (i) January 15, 2028 and (ii) April 15, 2027 if, as of such date, any Incremental Term Loan B-5 borrowings are still outstanding, unless the Incremental Term Loan B-5 maturity date has been extended to a date falling after January 15, 2028. | |
(22) | Under the extension amendment to the Lightpath credit agreement entered into in February 2024, the aggregate principal amount of revolving loan commitments available under the credit agreement increased to $115 million, of which $95 million of revolving credit commitments, if drawn, would be due on June 15, 2027 and $20 million of revolving credit commitments, if drawn, would be due on November 30, 2025. In addition, Lightpath entered into an incremental amendment to its credit agreement in November 2024, whereby it incurred an additional $100 million of term loans, which increased the aggregate principal amount of term loans outstanding under the credit agreement to $676 million as of December 31, 2024. | |
(23) | CSC Holdings, LLC Restricted Group excludes the unrestricted subsidiaries, primarily Cablevision Lightpath LLC and NY Interconnect, LLC. | |
(24) | CSC Holdings Consolidated includes the CSC Holdings, LLC Restricted Group and the unrestricted subsidiaries. | |
(25) | Principal amount of debt excluding finance leases and other notes. | |
Certain numerical information is presented on a rounded basis. Minor differences in totals and percentage calculations may exist due to rounding. | ||
About Altice USA
Altice USA (NYSE: ATUS) is one of the largest broadband communications and video services providers in the United States, delivering broadband, video, mobile, proprietary content and advertising services to approximately 4.6 million residential and business customers across 21 states through its Optimum brand. We operate Optimum Media, an advanced advertising and data business, which provides audience-based, multiscreen advertising solutions to local, regional and national businesses and advertising clients. We also operate News 12, which is focused on delivering best-in-class hyperlocal news content.
FORWARD-LOOKING STATEMENTS
Certain statements in this earnings release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this earnings release, including, without limitation, those regarding our intentions, beliefs or current expectations concerning, among other things: our future financial conditions and performance, our revenue streams, results of operations and liquidity; our strategy, objectives, prospects, trends, service and operational improvements, capital expenditure plans, broadband, fiber, video and mobile growth, product offerings (including multi-gig plans) sales pipeline, network expansion and passings; our ability to achieve operational performance improvements (including our AI capabilities); our ability to achieve near and longer term revenue, penetration, operational efficiency and capital structure opportunities (including mobile lines, fiber subscribers, fiber penetration, gross margin, operating expenses, EBITDA margins and annual capital expenditures); and future developments in the markets in which we participate or are seeking to participate. These forward-looking statements can be identified by the use of forward-looking terminology, including without limitation the terms "anticipate", "believe", "could", "estimate", "expect", "forecast", "intend", "may", "opportunity", "plan", "project", "should", "target", or "will" or, in each case, their negative, or other variations or comparable terminology. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. To the extent that statements in this earnings release are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements including risks referred to in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. You are cautioned to not place undue reliance on Altice USA's forward-looking statements. Any forward-looking statement speaks only as of the date on which it was made. Altice USA specifically disclaims any obligation to publicly update or revise any forward-looking statement, as of any future date.
Contacts
Investor Relations
John Hsu: +1 917 405 2097 / john.hsu@alticeusa.com
Sarah Freedman: +1 631 660 8714 / sarah.freedman@alticeusa.com
Media Relations
Lisa Anselmo: +1 516 279 9461 / lisa.anselmo@alticeusa.com
Janet Meahan: +1 516 519 2353 / janet.meahan@alticeusa.com
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