Financial Data and Key Metrics Changes - In Q3 2024, the company reported total revenue of $2.2 billion, a decline of 3.9% year-over-year, primarily due to a 5.6% decrease in residential revenue attributed to video subscriber losses [42][10] - Adjusted EBITDA for the quarter was $862 million, resulting in an adjusted EBITDA margin of 38.7%, down 5.8% year-over-year [45][10] - Residential ARPU was $135.77, reflecting a 1.9% decline year-over-year, while pro forma residential ARPU, excluding video impact, remained flat at approximately $83 [42][10] Business Line Data and Key Metrics Changes - The company added 47,000 fiber net additions, bringing the total fiber customer base to 482,000, with a penetration rate of approximately 17% across the total fiber footprint [13][10] - Mobile services revenue grew by 50% year-over-year, marking the fourth consecutive quarter of such growth [43][10] - Business Services revenue remained relatively flat year-over-year, driven by growth in the Lightpath Enterprise business, offset by declines in SMB and other segments [44][10] Market Data and Key Metrics Changes - The company experienced broadband subscriber net losses of 50,000 in the quarter, primarily due to the impact of the ACP program's sunset and fewer additions in the back-to-school university segment [15][10] - The competitive landscape saw increased pressure from fixed wireless and fiber overbuilders, particularly from Verizon and AT&T [57][10] Company Strategy and Development Direction - The company is transitioning to Phase 2 of its transformation, focusing on accelerating business transformation, growing new revenue streams, and moderating operating expenses [8][10] - A multiyear network strategy is being implemented to enhance capital efficiency and prioritize high-return capital projects [20][10] - The company aims to grow its fiber customer base to over 1 million by the end of 2026, targeting a penetration rate of 30% [32][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the macroeconomic environment, video cord cutting, and increased competition but expressed confidence in stabilizing ARPU and maintaining low churn rates [11][10] - The company is optimistic about future growth opportunities through improved broadband subscriber trends and the introduction of new value-added services [27][10] - Management emphasized the importance of enhancing customer experience and operational efficiencies to support long-term growth [34][10] Other Important Information - The company generated approximately $100 million in free cash flow year-to-date and anticipates full-year capital expenditures of around $1.5 billion, a reduction from previous guidance [20][46] - The company has achieved significant improvements in service call and visit trends, reflecting ongoing commitments to enhancing network and customer experience [26][10] Q&A Session Summary Question: Did the company see improvements in broadband amid competitive pressures? - Management noted a decline in gross add activity across the industry but highlighted improvements in win-loss percentages due to better competitive strategies [57][58] Question: What is the expected impact of mobile on EBITDA? - Management expressed optimism about mobile margins and their potential to drive down broadband churn and increase customer lifetime value [70][71] Question: How does the company plan to achieve its mobile subscriber targets? - Management outlined plans to expand sales channels and improve product offerings to accelerate mobile subscriber growth [75][76] Question: What are the expectations for capital expenditures moving forward? - Management indicated that capital expenditure reductions are due to improved efficiencies and a focus on high-return projects [81][82] Question: How does the company view potential M&A opportunities? - Management remains open to value-accretive transactions but emphasized a focus on driving growth in existing operations [102][103]

Altice USA, Inc. (ATUS) reported $2.23 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 3.9%. EPS of -$0.09 for the same period compares to $0.15 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.24 billion, representing a surprise of -0.54%. The company delivered an EPS surprise of -550.00%, with the consensus EPS estimate being $0.02.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

| --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------| | | | | | | | | | | | | FORWARD-LOOKING STATEMENTS Certain statements in this presentation 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 presentation, including, without limitation, those regarding our intentions, beliefs or curr ...

Altice USA, Inc. (ATUS) came out with a quarterly loss of $0.09 per share versus the Zacks Consensus Estimate of $0.02. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -550%. A quarter ago, it was expected that this company would post earnings of $0.08 per share when it actually produced earnings of $0.03, delivering a surprise of -62.50%.Over the last four quarters, the company has not been ...

Customer Base and Services - The company serves approximately 4.6 million residential and business customers across 21 states, with a total of 9.8 million passings as of September 30, 2024[103]. - For the nine months ended September 30, 2024, residential broadband, video, telephony, and mobile services accounted for approximately 41%, 33%, 3%, and 1% of consolidated revenue, respectively[104]. - Business services contributed 16% to consolidated revenue for the same period, while advertising revenue accounted for approximately 5%[105]. - The company has launched a full-service mobile offering across its footprint, aiming to enhance its service portfolio[104]. - The company is currently building a parallel fiber-to-the-home (FTTH) network to deliver multi-gig broadband speeds, addressing the growing data needs of customers[104]. Financial Performance - Total revenue for the three months ended September 30, 2024, was $2,227,700, a decrease of 3.86% compared to $2,317,200 in the same period of 2023[109]. - Net income attributable to Altice USA, Inc. stockholders was a loss of $42,970 for Q3 2024, compared to a profit of $66,839 in Q3 2023, representing a decline of 164.32%[109]. - Adjusted EBITDA for the three months ended September 30, 2024, was $861,976, down 5.83% from $915,499 in the same period of 2023[111]. - Free Cash Flow for Q3 2024 was $76,865, a decrease of 36.67% compared to $121,279 in Q3 2023[112]. - Operating income for Q3 2024 was $444,593, down 9.73% from $492,565 in Q3 2023[109]. - Interest expense increased to $448,168 in Q3 2024, compared to $420,216 in Q3 2023, reflecting a rise of 6.00%[111]. - The company reported a net cash flow from operating activities of $436,024 for Q3 2024, a decrease of 8.09% from $474,498 in Q3 2023[112]. - Free Cash Flow (Deficit) for Q3 2024 was $(25,564), compared to $121,279 in Q3 2023, indicating a significant decline[144]. - The company reported a net income (loss) attributable to shareholders of $(42,970) for the three months ended September 30, 2024, compared to $66,839 for the same period in 2023[142]. Revenue Breakdown - Broadband revenue decreased by $48,334, or 5.03%, from $961,751 in Q3 2023 to $913,417 in Q3 2024[109]. - Total broadband revenue decreased by $48,334 (5%) for Q3 2024 compared to Q3 2023, totaling $913,417[116]. - Video revenue decreased by $60,701 (8%) for Q3 2024 compared to Q3 2023, totaling $715,117[117]. - Telephony revenue decreased by $3,763 (5%) for Q3 2024 compared to Q3 2023, totaling $69,877[118]. - Mobile revenue increased by $10,243, or 50.43%, from $20,320 in Q3 2023 to $30,563 in Q3 2024[109]. - Business services and wholesale revenue remained relatively stable, with a slight decrease of $497 for Q3 2024 compared to Q3 2023, totaling $366,355[120]. - News and advertising revenue increased by $10,198 (9%) for Q3 2024 compared to Q3 2023, totaling $117,682[123]. - Other revenue increased by $3,354 (30%) for Q3 2024 compared to Q3 2023, totaling $14,689[124]. Operational Metrics - Adjusted EBITDA for the three and nine months ended September 30, 2024 was $861,976 and $2,575,708, representing decreases of $53,523 (6%) and $129,924 (5%) compared to the same periods in 2023[133]. - Total operating expenses for the nine months ended September 30, 2024, were $6,719,390, a decrease of 3.11% from $6,935,452 in the same period of 2023[109]. - Average revenue per user (ARPU) for broadband services was $135.77 in Q3 2024, a slight decrease from $138.42 in Q3 2023[116]. - Total customer relationships decreased to 4,595.9 thousand as of September 30, 2024, down from 4,772.6 thousand in September 2023[115]. - FTTH total passings increased to 2,893.7 thousand as of September 30, 2024, up from 2,720.2 thousand in September 2023[116]. Debt and Cash Flow Management - Total debt outstanding as of September 30, 2024, was $25,052,672, with credit facility debt accounting for $7,062,391 and senior guaranteed notes at $10,671,626[152]. - The company expects to utilize Free Cash Flow and revolving credit facilities to manage debt obligations and capital expenditures over the next twelve months[150]. - Total amounts payable in connection with outstanding obligations for 2024 are projected at $406,164, increasing to $30,482,007 over the next several years[153]. - The principal uses of cash for the CSC Holdings Restricted Group include capital spending for digital broadband upgrades and debt service[155]. - Capital expenditures for Q3 2024 were $359,159, slightly higher than $353,219 in Q3 2023, reflecting continued investment in infrastructure[144]. - For the nine months ended September 30, 2024, net cash provided by operating activities was $1,040,051, a decrease of $290,134 compared to the same period in 2023[171]. - Capital expenditures for the nine months ended September 30, 2024, totaled $1,042,975, compared to $1,409,561 for the same period in 2023[168]. Risks and Challenges - The company faces competition from various broadband and telephony providers, impacting customer demand and revenue growth[104]. - Future performance is subject to risks including economic conditions, competition, and potential disruptions in service delivery[102]. - The company experienced a decrease in net cash provided by operating activities due to an increase in interest payments of $147,855 and tax payments of $10,898[171]. - The preparation of consolidated financial statements involves critical estimates affecting reported amounts of assets, liabilities, revenue, and expenses[174]. Other Financial Information - Restructuring, impairments, and other operating items for the three and nine months ended September 30, 2024 amounted to $10,871 and $15,525, respectively, compared to $4,453 and $39,303 for the same periods in 2023[130]. - Interest expense, net increased to $448,168 and $1,328,264 for the three and nine months ended September 30, 2024, reflecting increases of $27,952 (7%) and $112,061 (9%) compared to the prior year[135]. - Depreciation and amortization for the three and nine months ended September 30, 2024 amounted to $386,342 and $1,170,503, down $16,024 (4%) and $66,780 (5%) from the same periods in 2023[132]. - The company recorded a tax benefit of $9,892 and an expense of $(42,045) on pre-tax income (loss) of $(50,727) and $10,016 for the three and nine months ended September 30, 2024[140]. - Gain on investments and sale of affiliate interests, net was $292 for the nine months ended September 30, 2024, a significant decrease from $192,010 for the same period in 2023[137]. - The company recorded a loss of $52,943 related to the early termination of interest rate swap agreements in September 2024[163]. - As of September 30, 2024, the Company's commitments and contingencies decreased to approximately $5,500,000 from approximately $6,000,000 as of December 31, 2023, primarily due to payments made in 2024 and a reduction in programming commitments[174]. - The decrease in programming commitments is attributed to a decline in the number of video customers as of September 30, 2024, compared to December 31, 2023[174].

Financial Performance - Total revenue for Q3 2024 was $2.2 billion, a decrease of 3.9% year over year[3] - Residential revenue was $1.7 billion, down 5.6% year over year, with an ARPU of $135.77, a decline of 1.9% year over year[3] - Net income attributable to stockholders was a loss of $43.0 million, compared to a profit of $66.8 million in Q3 2023[4] - Adjusted EBITDA for Q3 2024 was $862.0 million, representing a 5.8% decrease year over year, with a margin of 38.7%[4] - Operating income for Q3-24 was $444.6 million, a decrease of 9.8% from $492.6 million in Q3-23[12] - Basic net income (loss) per share for Q3-24 was $(0.09), down from $0.15 in Q3-23[12] - Free Cash Flow for the three months ended September 30, 2024, was $76,865 thousand, down from $121,279 thousand in the same period of 2023[17] Customer Metrics - Fiber customer net additions reached 482,000, a 63% increase in total fiber customers compared to Q3 2023, with fiber penetration at 16.6%[5] - Mobile line net additions were 36,000, the highest in four years, bringing total mobile lines to 420,000[5] - As of September 30, 2024, the company adjusted its customer metrics, resulting in an increase of 4.7 thousand residential customer relationships, 3.8 thousand broadband customers, and 5.2 thousand video customers[5] - The total number of unique customer relationships does not include mobile-only customers, reflecting a comprehensive approach to customer metrics[12] - The company serves approximately 4.6 million residential and business customers across 21 states under the Optimum brand[25] Capital Expenditures and Cash Flow - Cash capital expenditures for Q3 2024 were $359.2 million, a 1.7% increase year over year, with a full-year 2024 forecast of $1.5 billion, down $200 million from 2023[4] - Capital expenditures for the nine months ended September 30, 2024, were $1,042.98 million, down from $1,409.56 million in the same period of 2023[13] - Free cash flow for Q3 2024 was $76.9 million, impacted by $115 million of higher cash interest year over year[4] - Cash and cash equivalents at the end of the period for Q3-24 were $250.29 million, down from $268.66 million at the end of Q3-23[13] Debt and Leverage - Consolidated net debt for Altice USA was $24.6 billion, with a net leverage ratio of 7.1x L2QA[8] - Consolidated Net Debt as of September 30, 2024, was $23,180 million, with a gross debt of $23,372 million[18] - Total Debt for Altice USA Consolidated was reported at $25,100 million, with cash of $(250) million resulting in a net debt of $24,850 million[21] - Net Leverage (LTM) ratio was 7.2x as of September 30, 2024, indicating a stable leverage position[20] - Interest expense for the three months ended September 30, 2024, was $448,168 thousand, compared to $420,216 thousand in the same period of 2023[16] Future Outlook and Strategy - The company aims to achieve over 1 million fiber subscribers by year-end 2026 and 30%+ fiber penetration by the same date[7] - The company anticipates future growth in broadband, fiber, video, and mobile services, with a focus on operational performance improvements[26] - The company plans to continue evaluating management effectiveness based on revenue and Adjusted EBITDA measures[16] - The company emphasizes the importance of Free Cash Flow and operational efficiency in its future financial performance[26] Network and Service Availability - FTTH total passings increased to 2,893.7 thousand by Q3-24, up from 2,735.2 thousand in Q4-23, representing a growth of 5.8%[11] - The total passings include single residence homes, apartments, and commercial establishments connected to the HFC and FTTH networks[11] - The company reported that broadband services were not available to approximately 30 thousand total passings, while telephony services were unavailable to about 500 thousand total passings[11] Miscellaneous - The Incremental Term Loan B-5 bears interest at a rate equal to Synthetic USD LIBOR plus 2.50% per annum through March 31, 2025[17] - The company operates an advanced advertising and data business through Optimum Media, providing audience-based advertising solutions[25] - Capital intensity is defined as total cash capital expenditures as a percentage of total revenue, indicating the company's investment strategy[3] - The company reported a loss on derivative contracts of $166,489 thousand for the nine months ended September 30, 2023[16] - Depreciation and amortization for the three months ended September 30, 2024, was $386,342 thousand, slightly down from $402,366 thousand in the same period of 2023[16]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Altice USA, Inc. due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to show earnings of $0.02 per share, reflecting a significant year-over-year decrease of 86.7%. Revenues are projected at $2.24 billion, down 3.3% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Altice USA is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +66.67%, indicating a bullish outlook from analysts [10]. Historical Performance - In the last reported quarter, Altice USA had an expected EPS of $0.08 but delivered only $0.03, resulting in a surprise of -62.50%. Over the last four quarters, the company has only beaten consensus EPS estimates once [12][13]. Investment Considerations - While Altice USA is seen as a potential earnings-beat candidate, other factors may influence stock performance, and investors are advised to consider the Earnings ESP and Zacks Rank before making investment decisions [14][16].

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Altice USA (ATUS) is one of the largest broadband communications and video services providers in the United States. The Zacks Consesnsus Estimate for its current year earnings has been revised 28.6% downward over the last 60 days.Dave & Buster's Entertainment (PLAY) is a leading owner and operator of high-volume venues in North America that combine dining and entertainment for both adults and families. The Zacks Consensus Estimate for ...

Core Insights - Rachel Stack has been appointed as the new CFO of Lightpath, bringing 25 years of experience in the digital infrastructure sector [1] - The TMT M&A Forum USA 2024 will focus on digital infrastructure investment and M&A strategies, featuring a panel discussion on the anticipated wave of consolidation in the fiber sector [2][3] Company Overview - Lightpath is an all-fiber connectivity provider that aims to revolutionize digital connections with a next-generation network and customer service [4] - The company offers a comprehensive portfolio of custom-engineered connectivity solutions, emphasizing performance, reliability, and security [4] - Lightpath is jointly owned by Altice USA and Morgan Stanley Infrastructure Partners [4] Event Details - The TMT M&A Forum USA 2024 will take place on September 25-26, 2024, in New York City, featuring over 40 sessions and 600+ attendees [2][3] - The panel titled "Fiber Leaders: When Will the Wave of Consolidation Hit?" will include industry leaders discussing consolidation, financing structures, and strategies to close the digital divide [2] - The event will feature more than 100 speakers and 10+ hours of networking opportunities [3]

Core Insights - Lightpath has appointed Rachel Stack as Chief Financial Officer to support its strategic growth plans [1][2] - Stack brings over 25 years of financial expertise and industry knowledge, having previously served as CFO at Cologix and held senior roles at Zayo Group Holdings [1] - Lightpath aims to enhance its position as a leading fiber infrastructure provider in the U.S. [2] Company Overview - Lightpath is focused on revolutionizing digital connectivity through its advanced fiber-optic network, offering custom-engineered connectivity solutions [3] - The company has been trusted by thousands of enterprises, governments, and educators for over 30 years [3] - Lightpath is jointly owned by Altice USA and Morgan Stanley Infrastructure Partners [3]