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MarketScreener Homepage  >  Equities  >  Nyse  >  Altice USA, Inc.    ATUS

ALTICE USA, INC.

(ATUS)
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ALTICE USA : Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

05/01/2020 | 06:21am EST
All dollar amounts, except per customer and per share data, included in the
following discussion, are presented in thousands.
The preparation of our consolidated financial statements requires us to make
estimates that affect the reported amounts of assets, liabilities, revenue and
expenses. For a complete discussion of the accounting judgments and estimates
that we have identified as critical in the preparation of our consolidated
financial statements, please refer to our Management's Discussion and Analysis
of Financial Condition and Results of Operations in our Annual Report on Form
10-K for the year ended December 31, 2019.
Overview
Our Business
We principally provide broadband communications and video services in the United
States and market our services primarily under two brands: Optimum, in the New
York metropolitan area, and Suddenlink, principally in markets in the
south-central United States. We deliver broadband, video, and telephony services
to approximately 5.0 million residential and business customers. Our footprint
extends across 21 states through a fiber-rich broadband network with more than
8.8 million homes passed as of March 31, 2020. Additionally, we offer news
programming and content, and advertising services. In September 2019, the
Company launched Altice Mobile, a full service mobile offering, to consumers
across its footprint.
Key Factors Impacting Operating Results and Financial Condition
Our future performance is dependent, to a large extent, on the impact of direct
competition, general economic conditions (including capital and credit market
conditions), our ability to manage our businesses effectively, and our relative
strength and leverage in the marketplace, both with suppliers and customers. For
more information, see "Risk Factors" and "Business-Competition" included in our
Annual Report on Form 10-K for the year ended December 31, 2019.
In March 2020, the United States declared a national emergency concerning the
outbreak of the coronavirus ("COVID-19"). There have also been extraordinary and
wide-ranging actions taken by federal, state and local governmental authorities
to contain and combat the outbreak and spread of the virus. We have continued to
provide our telecommunications services to our customers during this pandemic
and for the three months ended March 31, 2020, our results of operations have
not been significantly impacted. We expect that our future results may be
impacted, including if residential or business customers discontinue their
service or are unable to pay for our products and services, or if advertising
revenue declines. Additionally, in order to prioritize the demands of the
business, we may delay certain capital investments. Due to the uncertainty
surrounding the magnitude and duration of business and economic impacts relating
to COVID-19, including the effort to contain and combat the spread of the virus,
and business impacts of government actions, we currently cannot reasonably
estimate the ultimate impact of COVID-19 on our business. See "Risk Factors -
Our business, financial condition and results of operations may be adversely
affected by the recent COVID-19 pandemic."
We derive revenue principally through monthly charges to residential customers
of our broadband, video, and telephony services. We also derive revenue from
digital video recorder ("DVR"), video-on-demand ("VOD"), pay-per-view,
installation and home shopping commissions. Our residential broadband, video,
and telephony services accounted for approximately 36%, 39%, and 5%,
respectively, of our consolidated revenue for the three months ended March 31,
2020. We also derive revenue from the sale of a wide and growing variety of
products and services to both large enterprise and SMB customers, including
broadband, telephony, networking and video services. For the three months ended
March 31, 2020, 15% of our consolidated revenue was derived from these business
services. In addition, we derive revenues from the sale of advertising time
available on the programming carried on our cable television systems, digital
advertising and data analytics, and affiliation fees for news programming, which
accounted for approximately 4% of our consolidated revenue for the three months
ended March 31, 2020. Our mobile and other revenue for the three months ended
March 31, 2020 accounted for approximately 1% of our consolidated revenue.
Revenue is impacted by rate increases, changes in the number of customers to our
services, including additional services sold to our existing customers,
programming package changes by our video customers, speed tier changes by our
broadband customers, and acquisitions and construction of cable systems that
result in the addition of new customers.
Our ability to increase the number of customers to our services is significantly
related to our penetration rates.
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We operate in a highly competitive consumer-driven industry and we compete
against a variety of broadband, video and telephony providers and delivery
systems, including broadband communications companies, wireless data and
telephony providers, satellite-delivered video signals, Internet-delivered video
content and broadcast television signals available to residential and business
customers in our service areas. Our competitors include AT&T and its DirecTV
subsidiary, CenturyLink, DISH, Frontier and Verizon. Consumers' selection of an
alternate source of service, whether due to economic constraints, technological
advances or preference, negatively impacts the demand for our services. For more
information on our competitive landscape, see "Risk Factors" and
"Business-Competition" included in our Annual Report on Form 10-K for the year
ended December 31, 2019.
Our programming costs, which are the most significant component of our operating
expenses, have increased and are expected to continue to increase primarily as a
result of contractual rate increases. See "Results of Operations" below for more
information regarding our key factors impacting our revenues and operating
expenses.
Historically, we have made substantial investments in our network and the
development of new and innovative products and other service offerings for our
customers as a way of differentiating ourselves from our competitors and may
continue to do so in the future. We are constructing a FTTH network, which will
enable us to deliver more than 10 Gbps broadband speeds in areas where FTTH is
deployed. In addition, we launched Altice Mobile to consumers across our
footprint in September 2019. We may incur greater than anticipated capital
expenditures in connection with these initiatives, fail to realize anticipated
benefits, experience delays and business disruptions or encounter other
challenges to executing them as planned. See "Liquidity and Capital Resources"
for additional information regarding our capital expenditures.
Certain Transactions
The following transactions occurred during the periods covered by this
Management's Discussion and Analysis of Financial Condition and Results of
Operations:
In June 2019, the Company completed the acquisition of Cheddar Inc., a
digital-first news company and the operating results of Cheddar were
consolidated as of June 1, 2019.
Non-GAAP Financial Measures
We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income
(loss) excluding income taxes, non-operating income or expenses, loss on
extinguishment of debt and write-off of deferred financing costs, gain (loss) on
interest rate swap contracts, gain (loss) on derivative contracts, gain (loss)
on investments and sale of affiliate interests, interest expense, interest
income, depreciation and amortization (including impairments), share-based
compensation expense or benefit, restructuring expense or credits and
transaction expenses.
We believe Adjusted EBITDA is an appropriate measure for evaluating the
operating performance of the Company. Adjusted EBITDA and similar measures with
similar titles are common performance measures used by investors, analysts and
peers to compare performance in our industry. Internally, we use revenue and
Adjusted EBITDA measures as important indicators of our business performance,
and evaluate management's effectiveness with specific reference to these
indicators. We believe Adjusted EBITDA provides management and investors a
useful measure for period-to-period comparisons of our core business and
operating results by excluding items that are not comparable across reporting
periods or that do not otherwise relate to the Company's ongoing operating
results. Adjusted EBITDA should be viewed as a supplement to and not a
substitute for operating income (loss), net income (loss), and other measures of
performance presented in accordance with GAAP. Since Adjusted EBITDA is not a
measure of performance calculated in accordance with GAAP, this measure may not
be comparable to similar measures with similar titles used by other companies.
We also use Operating Free Cash Flow (defined as Adjusted EBITDA less cash
capital expenditures), and Free Cash Flow (defined as net cash flows from
operating activities less cash capital expenditures) as indicators of the
Company's financial performance. We believe these measures are one of several
benchmarks used by investors, analysts and peers for comparison of performance
in the Company's industry, although they may not be directly comparable to
similar measures reported by other companies.
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Results of Operations - Altice USA

                                                                       Three Months Ended March 31,
                                                                        2020                   2019
Revenue:
Residential:
Broadband                                                        $      885,529$    775,573
Video                                                                   947,061              1,017,330
Telephony                                                               125,030                154,464
Business services and wholesale                                         364,530                350,689
News and advertising                                                    105,540                 94,738
Mobile                                                                   18,356                      -
Other                                                                     4,210                  3,773
Total revenue                                                         2,450,256              2,396,567
Operating expenses:
Programming and other direct costs                                      864,514                812,985
Other operating expenses                                                582,309                564,432
Restructuring and other expense                                           7,294                 15,244
Depreciation and amortization (including impairments)                   547,569                561,428
Operating income                                                        448,570                442,478
Other income (expense):
Interest expense, net                                                  (363,552)              (386,464)

Gain (loss) on investments and sale of affiliate interests, net (455,473)

               254,725
Gain (loss) on derivative contracts, net                                439,861               (177,029)
Loss on interest rate swap contracts, net                               (54,832)               (23,672)

Loss on extinguishment of debt and write-off of deferred financing costs

                                                               -               (157,902)
Other income, net                                                           923                     80
Income (loss) before income taxes                                        15,497                (47,784)
Income tax benefit (expense)                                            (17,035)                22,586
Net loss                                                                 (1,538)               (25,198)
Net loss attributable to noncontrolling interests                           680                    199
Net loss attributable to Altice USA, Inc. stockholders           $         

(858) $ (24,999)

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The following is a reconciliation of net loss to Adjusted EBITDA:

                                                                      Three Months Ended March 31,
                                                                        2020                   2019
Net loss                                                         $       (1,538)$   (25,198)
Income tax expense (benefit)                                             17,035               (22,586)
Other income, net                                                          (923)                  (80)
Loss on interest rate swap contracts, net                                54,832                23,672
Loss (gain) on derivative contracts, net                               (439,861)              177,029

Loss (gain) on investments and sales of affiliate interests, net 455,473

              (254,725)

Loss on extinguishment of debt and write-off of deferred financing costs

                                                               -               157,902
Interest expense, net                                                   363,552               386,464
Depreciation and amortization                                           547,569               561,428
Restructuring and other expense                                           7,294                15,244
Share-based compensation                                                 27,946                13,790
Adjusted EBITDA                                                       1,031,379             1,032,940
Capital expenditures (cash)                                             299,082               340,386
Operating Free Cash Flow                                         $      732,297$   692,554

Net cash flows from operating activities                         $      593,565$   503,994
Capital expenditures (cash)                                             299,082               340,386
Free Cash Flow                                                   $      294,483$   163,608

The following table sets forth certain customer metrics, excluding Altice Mobile customers, for the Company (unaudited):

                                        March 31,      December 31,       March 31,
                                        2020 (f)         2019 (g)         2019 (g)

Homes passed (a)                        8,834.8            8,818.6        8,724.0
Total customer relationships (b)(c)     4,950.1            4,916.3        4,922.2
Residential                             4,568.4            4,533.3        4,539.8
SMB                                       381.7              383.1          382.4
Residential customers:
Broadband                               4,237.4            4,187.3        4,152.3
Video                                   3,137.5            3,179.2        3,276.1
Telephony                               2,359.8            2,398.8        2,510.1
Penetration of homes passed (d)            56.0  %            55.7  %        56.4  %
ARPU(e)                                $ 143.39$     142.65$ 143.33




(a)Represents the estimated number of single residence homes, apartments and
condominium units passed by the broadband network in areas serviceable without
further extending the transmission lines. In addition, it includes commercial
establishments that have connected to our broadband network. Broadband services
were not available to approximately 30 homes passed and telephony services were
not available to approximately 500 homes passed.
(b)Represents number of households/businesses that receive at least one of the
Company's fixed-line services.
(c)Customers represent each customer account (set up and segregated by customer
name and address), weighted equally and counted as one customer, regardless of
size, revenue generated, or number of boxes, units, or outlets.  In calculating
the number of customers, we count all customers other than inactive/disconnected
customers.  Free accounts are included in the customer counts along with all
active accounts, but they are limited to a prescribed group.  Most of these
accounts are also not entirely free, as they typically generate revenue through
pay-per-view or other pay services and certain equipment fees.  Free status is
not granted to regular customers as a promotion.  In counting bulk residential
                                       40
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customers, such as an apartment building, we count each subscribing family unit
within the building as one customer, but do not count the master account for the
entire building as a customer. We count a bulk commercial customer, such as a
hotel, as one customer, and do not count individual room units at that hotel.
(d)Represents the number of total customer relationships divided by homes
passed.
(e)Calculated by dividing the average monthly revenue for the respective quarter
(fourth quarter for annual periods) derived from the sale of broadband, video
and telephony services to residential customers for the quarter by the average
number of total residential customers for the same period.
(f)Customer metrics as of March 31, 2020 include approximately 6,000 customers
that have not been disconnected pursuant to the Keep Americans Connected pledge
that the Company made in response to the COVID-19 pandemic, however the metrics
exclude approximately 9,000 new customers with students in the household that
are receiving broadband services for free until the end of the 2019-20 school
year.
(g)Customer metrics for prior periods have been adjusted to conform definitions
between Suddenlink and Optimum in connection with the migration of Suddenlink
customers to the Optimum billing system in 2019. The following table summarizes
the adjustments made to previously reported amounts.
                                      As of                  As of
                                  March 31, 2019       December 31, 2019
                                            increase (decrease)
Homes passed                            (37.9)                (15.1)
Total customer relationships            (19.9)                (15.1)
Residential                             (23.9)                    -
SMB                                       4.0                 (15.1)
Residential customers:
Broadband                                (2.7)                    -
Video                                   (21.3)                    -
Telephony                                (1.0)                    -
ARPU                             $       0.76        $            -



Altice USA- Comparison of Results for the Three Months Ended March 31, 2020
compared to the Three Months Ended March 31, 2019
Broadband Revenue
Broadband revenue for the three months ended March 31, 2020 and 2019 was
$885,529 and $775,573, respectively. Broadband revenue is derived principally
through monthly charges to residential subscribers of our broadband services.
Revenue is impacted by rate increases, changes in the number of customers,
including additional services sold to our existing subscribers, and changes in
speed tiers. Additionally, revenue is impacted by changes in the standalone
selling price of each performance obligation within our promotional bundled
offers.
Broadband revenue increased $109,956 (14%) for the three months ended March 31,
2020 compared to the three months ended March 31, 2019. The increase was due
primarily to higher average recurring broadband revenue per broadband customer,
primarily driven by certain rate increases and service level changes, and an
increase in broadband customers.
Video Revenue
Video revenue for the three months ended March 31, 2020 and 2019 was $947,061
and $1,017,330, respectively. Video revenue is derived principally through
monthly charges to residential customers of our video services. Revenue is
impacted by rate increases, changes in the number of customers, including
additional services sold to our existing customers, and changes in programming
packages. Additionally, revenue is impacted by changes in the standalone selling
price of each performance obligation within our promotional bundled offers.
Video revenue decreased $70,269 (7%) for the three months ended March 31, 2020
compared to the three months ended March 31, 2019. The decrease was due
primarily to a decline in video customers and lower average revenue per video
customer.
We believe our video customer declines noted in the table above are largely
attributable to competition, particularly from Verizon in our Optimum footprint
and DBS providers in our Suddenlink footprint, as well as competition from
                                       41
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companies that deliver video content over the Internet directly to customers.
These factors are expected to continue to impact our ability to maintain or
increase our existing customers and revenue in the future.
Telephony Revenue
Telephony revenue for the three months ended March 31, 2020 and 2019 was
$125,030 and $154,464, respectively. Telephony revenue is derived principally
through monthly charges to residential customers of our telephony services.
Revenue is impacted by changes in rates for services, changes in the number of
customers, and additional services sold to our existing customers. Additionally,
revenue is impacted by changes in the standalone selling price of each
performance obligation within our promotional bundled offers.
Telephony revenue decreased $29,434 (19%) for the three months ended March 31,
2020 compared to the three months ended March 31, 2019. The decrease was due to
lower average revenue per telephony customer and a decline in telephony
customers.
Business Services and Wholesale Revenue
Business services and wholesale revenue for the three months ended March 31,
2020 and 2019 was $364,530 and $350,689, respectively. Business services and
wholesale revenue is derived primarily from the sale of fiber based
telecommunications services to the business market, and the sale of broadband,
video and telephony services to SMB customers.
Business services and wholesale revenue increased $13,841 (4%) for the three
months ended March 31, 2020 compared to the three months ended March 31, 2019.
The increase was primarily due to higher average recurring broadband revenue per
SMB customer, primarily driven by certain rate increases and service level
changes.
News and Advertising Revenue
News and advertising revenue for the three months ended March 31, 2020 and 2019
was $105,540 and $94,738, respectively. News and advertising revenue is
primarily derived from the sale of (i) advertising inventory available on the
programming carried on our cable television systems, (ii) advertising on over
the top ("OTT") platforms, (iii) digital advertising, and (iv) data analytics.
News and advertising revenue also includes affiliation fees for news
programming.
News and advertising revenue increased $10,802 (11%) for the three months ended
March 31, 2020 compared to the three months ended March 31, 2019. The increase
was primarily due to growth in national and political sales in addition to
higher affiliate revenue for News 12.
Mobile Revenue
Mobile revenue for the three months ended March 31, 2020 was $18,356 and relates
to sales of devices and mobile services. Our mobile service launched to
consumers in September 2019. As of March 31, 2020, we had approximately 110,000
mobile lines.
Other Revenue
Other revenue for the three months ended March 31, 2020 and 2019 was $4,210 and
$3,773, respectively. Other revenue includes revenue from other miscellaneous
revenue streams.
Programming and Other Direct Costs
Programming and other direct costs for the three months ended March 31, 2020 and
2019 amounted to $864,514 and $812,985, respectively. Programming and other
direct costs include cable programming costs, which are costs paid to
programmers (net of amortization of any incentives received from programmers for
carriage) for cable content (including costs of VOD and pay-per-view) and are
generally paid on a per-customer basis. These costs typically rise due to
increases in contractual rates and new channel launches and are also impacted by
changes in the number of customers receiving certain programming services. These
costs also include interconnection, call completion, circuit and transport fees
paid to other telecommunication companies for the transport and termination of
voice and data services, which typically vary based on rate changes and the
level of usage by our customers. These costs also include franchise fees which
are payable to the state governments and local municipalities where we operate
and are primarily based on a percentage of certain categories of revenue derived
from the provision of video service over our cable systems, which vary by state
and municipality. These costs change in relation to changes in such categories
of revenues or rate changes. Additionally, these costs include the costs of
mobile devices sold to our customers and direct costs of providing mobile
services.
                                       42
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The increase of $51,529 (6%) for the three months ended March 31, 2020, as
compared to the three months ended March 31, 2019 was primarily attributable to
the following:
Increase in programming costs due primarily to contractual rate increases,
partially offset by lower video customers                                       $  28,181
Costs of mobile devices                                                     

11,065

Increase in costs of digital media and linear advertising spots for resale

7,505

Increase in call completion and transfer costs primarily related to our mobile business ($6,841), partially offset by a decrease in costs based on a lower level of activity related to our telephony service

        5,592
Other net decreases                                                                  (814)
                                                                                $  51,529


Programming costs
Programming costs aggregated $710,590 and $682,409 for the three months ended
March 31, 2020 and 2019, respectively. Our programming costs in 2020 will
continue to be impacted by changes in programming rates, which we expect to
increase, and by changes in the number of video customers.
Other Operating Expenses
Other operating expenses for the three months ended March 31, 2020 and 2019
amounted to $582,309 and $564,432, respectively. Other operating expenses
include staff costs and employee benefits including salaries of company
employees and related taxes, benefits and other employee related expenses, as
well as third-party labor costs. Other operating expenses also include network
management and field service costs, which represent costs associated with the
maintenance of our broadband network, including costs of certain customer
connections and other costs associated with providing and maintaining services
to our customers.
Customer installation and network repair and maintenance costs may fluctuate as
a result of changes in the level of activities and the utilization of
contractors as compared to employees. Also, customer installation costs
fluctuate as the portion of our expenses that we are able to capitalize changes.
Costs associated with the initial deployment of new customer premise equipment
necessary to provide broadband, video and telephony services are capitalized
(asset-based). The redeployment of customer premise equipment is expensed as
incurred.
Other operating expenses also include costs related to the operation and
maintenance of our call center facilities that handle customer inquiries and
billing and collection activities and sales and marketing costs, which include
advertising production and placement costs associated with acquiring and
retaining customers. These costs vary period to period and certain of these
costs, such as sales and marketing, may increase with intense competition.
Additionally, other operating expenses include various other administrative
costs, including legal fees, and product development costs.
The increase in other operating expenses of $17,877, including an increase of
$12,735 relating to our mobile service, for the three months ended March 31,
2020 as compared to the three months ended March 31, 2019 was attributable to
the following:
Increase in share-based compensation                                            $ 14,156
Increase in bad debt expense                                                

4,789

Increase in rent and property taxes                                         

4,420

Net decrease in labor costs and benefits (offset by an increase in costs related to Cheddar of $7,163 which was acquired in June 2019) and an increase in capitalizable activity

(8,702)

Decrease in billing costs, primarily due to systems integration                   (5,650)
Other net increases                                                                8,864
                                                                                $ 17,877


Restructuring and Other Expense
Restructuring and other expense for the three months ended March 31, 2020
amounted to $7,294, as compared to $15,244 for the three months ended March 31,
2019. These amounts primarily related to severance and other employee related
costs resulting from headcount reductions, facility realignment costs and
impairments of certain ROU assets, related to initiatives which commenced in
2016 and 2019 that are intended to simplify the Company's
                                       43
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organizational structure. We currently anticipate that additional restructuring
expenses will be recognized as we continue to analyze and make modifications to
our organizational structure.
Depreciation and Amortization
Depreciation and amortization for the three months ended March 31, 2020 and 2019
amounted to $547,569 and $561,428, respectively.
The decrease in depreciation and amortization of $13,859 (2%) for the three
months ended March 31, 2020 as compared to the three months ended March 31, 2019
is due to certain fixed assets and intangible assets becoming fully depreciated
or amortized, partially offset by the acceleration of amortization expense
related to certain customer relationships intangible asset and an increase in
depreciation as a result of asset additions.
Adjusted EBITDA
Adjusted EBITDA amounted to $1,031,379 and $1,032,940 for the three months ended
March 31, 2020 and 2019, respectively.
Adjusted EBITDA is a non-GAAP measure that is defined as net income (loss)
excluding income taxes, income (loss) from discontinued operations,
non-operating income or expenses, loss on extinguishment of debt and write-off
of deferred financing costs, gain (loss) on interest rate swap contracts, gain
(loss) on derivative contracts, gain (loss) on investments and sale of affiliate
interests, net, interest expense, interest income, depreciation and amortization
(including impairments), share-based compensation expense or benefit,
restructuring expense or credits and transaction expenses. See reconciliation of
net income to adjusted EBITDA above.
The decrease in adjusted EBITDA for the three months ended March 31, 2020 as
compared to the three months ended March 31, 2019 was due to the net increase in
operating expenses (excluding depreciation and amortization, restructuring and
other expense and share-based compensation), partially offset by an increase in
revenue, as discussed above.
Operating Free Cash Flow
Operating free cash flow was $732,297 and $692,554 for the three months ended
March 31, 2020 and 2019, respectively. The increase in operating free cash flow
in 2020 as compared to 2019 is primarily due to a decrease in capital
expenditures.
Free Cash Flow
Free cash flow was $294,483 and $163,608 for the three months ended March 31,
2020 and 2019, respectively. The increase in free cash flow in 2020 as compared
to 2019 is primarily due to an increase in cash flows from operating activities
and decrease in capital expenditures.
Interest expense
Interest expense, net was $363,552 and $386,464 for the three months ended
March 31, 2020 and 2019, respectively. The decrease of $22,912 for the three
months ended March 31, 2020 as compared to the three months ended March 31, 2019
was attributable to the following:
Decrease due to changes in average debt balances and interest rates on our
indebtedness, including our
  collateralized debt                                                               $ (19,347)
Lower interest income                                                                     160
Other net decreases, primarily amortization of deferred financing costs and
original issue discounts                                                               (3,725)
                                                                                    $ (22,912)


Gain (Loss) on Investments and Sale of Affiliate Interests, net
Gain (loss) on investments, net for the three months ended March 31, 2020 and
2019, of $(455,473) and $254,725 consists primarily of the increase (decrease)
in the fair value of Comcast common stock owned by the Company for the periods.
The effects of these gains (losses) are partially offset by the losses (gains)
on the related equity derivative contracts, net described below.
Gain (Loss) on Derivative Contracts, net
Gain (loss) on derivative contracts, net for the three months ended March 31,
2020 amounted to $439,861 compared to $(177,029) for the three months ended
March 31, 2019, and includes realized and unrealized gains or losses due to
                                       44
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the change in fair value of equity derivative contracts relating to the Comcast
common stock owned by the Company. The effects of these gains (losses) are
offset by losses (gains) on investment securities pledged as collateral, which
are included in gain (loss) on investments, net discussed above.
Loss on Interest Rate Swap Contracts, net
Loss on interest rate swap contracts, net was $54,832 and $23,672 for the three
months ended March 31, 2020 and 2019, respectively. These amounts represent the
increase or decrease in the fair value of interest rate swap contracts and for
the 2020 period also includes the gain recognized in connection with the early
termination of two interest rate swap contracts. These swap contracts are not
designated as hedges for accounting purposes.
Loss on Extinguishment of Debt and Write-off of Deferred Financing Costs
Loss on extinguishment of debt and write-off of deferred financing costs
amounted to $157,902 for the three months ended March 31, 2019.
The following table provides a summary of the loss on extinguishment of debt and
the write-off of deferred financing costs recorded by the Company upon the
redemption of senior notes and the refinancing of credit facilities:
                                                                           

Three months ended

                                                                             March 31, 2019
CSC Holdings 10.125% Senior Notes due 2023                                $ 

154,666

Refinancing and subsequent amendment to CSC Holdings credit facility

          3,236
                                                                          $         157,902



Other Income (Expense), Net
Other income (expense), net amounted to $923 and $80 for the three months ended
March 31, 2020 and 2019, respectively. These amounts include the non-service
cost components of the Company's pension expense, net of dividends received on
Comcast common stock owned by the Company.
Income Tax Benefit (Expense)
For the three months ended March 31, 2020, Altice USA recorded a tax expense of
$17,035 on pre-tax income of $15,497, resulting in an effective tax rate that
was higher than the U.S. statutory tax rate. The higher tax rate was due to the
impact of certain non-deductible expenses and certain state tax expense
adjustments, partially offset by a benefit resulting from the recently enacted
Coronavirus Aid, Relief and Economic Security ("CARES Act").
For the three months ended March 31, 2019, the Company recorded a tax benefit of
$22,586 on pre-tax loss of $47,784, resulting in an effective tax rate that was
higher than the U.S. statutory rate. The higher tax rate was primarily due to
revaluation of state taxes primarily due to certain changes to the state tax
rates used to measure the Company's deferred tax liabilities and certain
non-deductible expenses.

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Stocks mentioned in the article
ChangeLast1st jan.
ALTICE EUROPE N.V. -0.07% 5.34 Real-time Quote.0.23%
ALTICE USA, INC. 5.16% 36.09 Delayed Quote.-9.74%
All news about ALTICE USA, INC.
01/21ALTICE USA : Suddenlink and Food Network Provide $50,000 Worth of Free Meals to ..
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01/20ALTICE USA : to Hold Conference Call to Discuss Q4 and FY 2020 Results
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01/19ALTICE USA : Credit Suisse Adjusts Altice USA's Price Target to $46 from $40, Ke..
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01/14ALTICE USA : Make Every Day Epic with Samsung Galaxy S21 and Galaxy S21+ on Alti..
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01/14ALTICE USA : Unleash the Ultimate Smartphone Experience That's Epic In Every Way..
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2020ALTICE USA : Raymond James Adjusts Altice USA's Price Target to $42 From $35, Ke..
MT
2020ALTICE USA : Announces Final Results of Its Tender Offer
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2020ALTICE USA : to Repurchase $2.33 Billion Shares of Common Stock Under Dutch Auct..
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2020ALTICE USA : Announces Preliminary Results of Its Tender Offer
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2020ALTICE USA : UBS Adjusts Price Target on Altice USA to $40 From $32, Reiterates ..
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