Altice USA(US:ATUS)2024-11-04 23:30Customer 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].