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Altice USA(ATUS) - 2024 Q3 - Quarterly Results
ATUSAltice USA(ATUS)2024-11-04 21:05

Financial Performance - Total revenue for Q3 2024 was 2.2billion,adecreaseof3.92.2 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,adeclineof1.9135.77, 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 66.8millioninQ32023[4]−AdjustedEBITDAforQ32024was66.8 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 444.6million,adecreaseof9.8444.6 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),downfrom(0.09), down from 0.15 in Q3-23[12] - Free Cash Flow for the three months ended September 30, 2024, was 76,865thousand,downfrom76,865 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 359.2million,a1.7359.2 million, a 1.7% increase year over year, with a full-year 2024 forecast of 1.5 billion, down 200millionfrom2023[4]−CapitalexpendituresfortheninemonthsendedSeptember30,2024,were200 million from 2023[4] - Capital expenditures for the nine months ended September 30, 2024, were 1,042.98 million, down from 1,409.56millioninthesameperiodof2023[13]−FreecashflowforQ32024was1,409.56 million in the same period of 2023[13] - Free cash flow for Q3 2024 was 76.9 million, impacted by 115millionofhighercashinterestyearoveryear[4]−CashandcashequivalentsattheendoftheperiodforQ3−24were115 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 268.66millionattheendofQ3−23[13]DebtandLeverage−ConsolidatednetdebtforAlticeUSAwas268.66 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 23,180million,withagrossdebtof23,180 million, with a gross debt of 23,372 million[18] - Total Debt for Altice USA Consolidated was reported at 25,100million,withcashof25,100 million, with cash of (250) million resulting in a net debt of 24,850million[21]−NetLeverage(LTM)ratiowas7.2xasofSeptember30,2024,indicatingastableleverageposition[20]−InterestexpenseforthethreemonthsendedSeptember30,2024,was24,850 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 420,216thousandinthesameperiodof2023[16]FutureOutlookandStrategy−Thecompanyaimstoachieveover1millionfibersubscribersbyyear−end2026and30420,216 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 386,342thousand,slightlydownfrom386,342 thousand, slightly down from 402,366 thousand in the same period of 2023[16]