EBITDA (operating loss before depreciation, amortization and non-cash
stock charges) increased by 17.2% to $42.2 million from the $36.0 million
recorded in the first quarter of 2000.
The Company’s results for the first quarter of 2001 include the results of
several acquisitions completed subsequent to the first quarter of 2000.
The following pro forma results assume that these acquisitions were
completed on January 1, 2000.
For the first quarter of 2001, revenues and EBITDA increased by 8.9%
and 10.6%, respectively, over pro forma results for the first quarter
of 2000. At March 31, 2001, the Company served 777,000 basic
subscribers, representing a year-over-year pro forma growth rate of
0.7%. At the end of the first quarter of 2001, the Company served
53,000 digital cable customers and 19,000 data customers, compared to
40,000 and 15,600 customers, respectively, at year-end 2000.
Rocco B. Commisso, Mediacom’s Chairman and CEO, said, I am proud to
report that we have once again delivered superior operating results,
marking our 12th consecutive quarter of double-digit pro forma EBITDA
growth since the Company first issued debt in the public markets.
Our performance this quarter continued to be driven by strong consumer
demand for advanced broadband services. Over the past twelve months,
on a pro forma basis, our combined digital cable and data customers
surged nearly 300%. The remarkable progress we are making with our
network upgrade program has positioned our Company for continued solid
growth this year as we offer digital cable and high-speed Internet
access services to an increasing number of our customers.
For the three months ended March 31, 2001, capital expenditures were
$42.7 million, in line with prior full year 2001 guidance of $180 million
to $200 million. As a result of its aggressive capital investment
program, the Company expects that 90% of its cable network will be
upgraded with 550MHz to 870MHz bandwidth capacity and 80% of its
homes passed will have two-way communications capability by year-end 2001.
At March 31, 2001, Mediacom’s digital cable service was available to
470,000 digital-ready basic subscribers, and the Company offered cable
modem service in cable systems with 500,000 data-ready homes marketed.
As previously announced, the Company held back launching in new markets
and marketing in existing systems its high-speed Internet service as it
transitioned its third-party Internet service provider from ISP Channel
to @Home. Due principally to the slow provisioning of connectivity
circuits by local telecommunications providers and operational issues at
@Home, the Company now expects to complete this transition by the end of
June, as compared to its previously stated March 31, 2001 target. While
the acceleration in high-speed data customer additions is now anticipated
to begin in June, the Company still expects to meet its earlier guidance
of between 45,000 and 50,000 data customers by year-end 2001.
At March 31, 2001, Mediacom’s total indebtedness was
approximately $1.0 billion. For the first quarter, the Company’s debt
leverage ratio (defined as total debt at period end divided by
annualized EBITDA for the period) was 6.1x and its interest coverage
ratio (defined as EBITDA divided by interest expense) was 2.0x.
In January 2001, the Company completed an offering of $500 million
of 91/2% senior notes due 2013. A substantial portion of the net proceeds
from the offering were used to repay outstanding indebtedness under the
Company’s subsidiary credit facilities. As a result, at March 31, 2001,
the Company had approximately $899 million of unused credit commitments.
SOURCE: COMPANY PRESS RELEASE
