Altice USA(US:ATUS)2024-11-04 21:05Financial 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]