Optimum Communications, Inc 10-Q for FY2023 Q1

Optimum Communications, Inc. (OPTU)

10-Q 2023-05-03 For: 2023-03-31

Added on April 12, 2026

About this 10-Q

Optimum Communications, Inc filed this 10-Q on May 3, 2023, covering the quarter ended March 31, 2023 (FY2023 Q1).

Headline figures

Quarter ended March 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.29B; down 5.3% from $2.42B a year earlier
Net income: $25.87M; down 86.8% from net income of $196.55M a year earlier
Diluted EPS: $0.06; down 86.0% from $0.43 a year earlier

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Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share	ATUS	NYSE


		Page
PART I. FINANCIAL INFORMATION		2

Item 1. Financial Statements

ALTICE USA, INC. AND SUBSIDIARIES
Consolidated Financial Statements
	Consolidated Balance Sheets - March 31, 2023 (Unaudited) and December 31, 2022	4
	Consolidated Statements of Operations - Three months ended March 31, 2023 and 2022 (Unaudited)	5
	Consolidated Statements of Comprehensive Income - Three months ended March 31, 2023 and 2022 (Unaudited)	6
	Consolidated Statements of Stockholders' Deficiency - Three months ended March 31, 2023 and 2022 (Unaudited)	7
	Consolidated Statements of Cash Flows - Three months ended March 31, 2023 and 2022 (Unaudited)	8
	Combined Notes to Consolidated Financial Statements (Unaudited)	14
Supplemental Financial Statements Furnished:
CSC HOLDINGS, LLC AND SUBSIDIARIES
Consolidated Financial Statements
	Consolidated Balance Sheets - March 31, 2023 (Unaudited) and December 31, 2022	9
	Consolidated Statements of Operations - Three months ended March 31, 2023 and 2022 (Unaudited)	10
	Consolidated Statements of Comprehensive Income - Three months ended March 31, 2023 and 2022 (Unaudited)	11
	Consolidated Statements of Member's Deficiency - Three months ended March 31, 2023 and 2022 (Unaudited)	12
	Consolidated Statements of Cash Flows - Three months ended March 31, 2023 and 2022 (Unaudited)	13
	Combined Notes to Consolidated Financial Statements (Unaudited)	14
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		28
Item 3. Quantitative and Qualitative Disclosures About Market Risk		42
Item 4. Controls and Procedures		42

PART II. OTHER INFORMATION		43
Item 1. Legal Proceedings		43


Item 6. Exhibits		43
SIGNATURES		44


ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands)
	March 31, 2023 (Unaudited)		December 31, 2022
ASSETS
Current Assets:
Cash and cash equivalents	$	220,447	$	305,484
Restricted cash	270		267
Accounts receivable, trade (less allowance for doubtful accounts of $23,292 and $20,767, respectively)	319,369		365,992

Prepaid expenses and other current assets ($421 and $572 due from affiliates, respectively)	179,497		130,684
Derivative contracts	—		263,873
Investment securities pledged as collateral	—		1,502,145




Total current assets	719,583		2,568,445
Property, plant and equipment, net of accumulated depreciation of $7,935,109 and $7,785,397, respectively	7,790,547		7,500,780

Right-of-use operating lease assets	273,827		250,601


Other assets	223,251		259,681
Amortizable intangibles, net of accumulated amortization of $5,655,369 and $5,549,674, respectively	1,554,443		1,660,331
Indefinite-lived cable television franchises	13,216,355		13,216,355
Goodwill	8,208,773		8,208,773
Total assets	$	31,986,779	$	33,664,966
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current Liabilities:
Accounts payable	$	1,081,946	$	1,213,806
Interest payable	236,083		252,351
Accrued employee related costs	117,925		139,328

Deferred revenue	96,299		80,559
Debt	373,174		2,075,077
Other current liabilities ($30,790 and $20,857 due to affiliates, respectively)	341,433		278,580
Total current liabilities	2,246,860		4,039,701
Other liabilities	290,137		274,623
Deferred tax liability	5,024,949		5,081,661

Right-of-use operating lease liability	281,067		260,237
Long-term debt, net of current maturities	24,624,437		24,512,656
Total liabilities	32,467,450		34,168,878
Commitments and contingencies (Note 14)
Redeemable noncontrolling interest	22,193		—
Stockholders' Deficiency:
Preferred stock, $0.01 par value, 100,000,000 shares authorized, no shares issued and outstanding	—		—
Class A common stock: $0.01 par value, 4,000,000,000 shares authorized, 270,358,878 shares issued and 270,340,053 shares outstanding as of March 31, 2023 and 271,851,984 shares issued and 271,833,063 shares outstanding as of December 31, 2022	2,704		2,719
Class B common stock: $0.01 par value, 1,000,000,000 shares authorized, 490,086,674 issued, 184,328,571 shares outstanding as of March 31, 2023 and 184,329,229 shares outstanding as of December 31, 2022	1,843		1,843
Class C common stock: $0.01 par value, 4,000,000,000 shares authorized, no shares issued and outstanding	—		—
Paid-in capital	159,750		182,701
Accumulated deficit	(628,408)		(654,273)
	(464,111)		(467,010)
Treasury stock, at cost (18,825 and 18,921 Class A common shares, respectively)	—		—
Accumulated other comprehensive loss	(7,328)		(8,201)
Total Altice USA stockholders' deficiency	(471,439)		(475,211)
Noncontrolling interests	(31,425)		(28,701)
Total stockholders' deficiency	(502,864)		(503,912)
Total liabilities and stockholders' deficiency	$	31,986,779	$	33,664,966


	Three Months Ended March 31,
	2023		2022
Revenue (including revenue from affiliates of $78 and $638, respectively) (See Note 13)	$	2,293,978	$	2,421,897
Operating expenses:
Programming and other direct costs (including charges from affiliates of $2,642 and $4,618, respectively) (See Note 13)	771,719		828,793
Other operating expenses (including charges from affiliates of $4,676 and $3,095, respectively) (See Note 13)	651,245		641,906
Restructuring expense and other operating items	29,672		3,378
Depreciation and amortization (including impairments)	416,212		435,349
	1,868,848		1,909,426
Operating income	425,130		512,471
Other income (expense):
Interest expense, net	(389,278)		(303,362)
Gain (loss) on investments, net	192,010		(150,773)
Gain (loss) on derivative contracts, net	(166,489)		101,074
Gain (loss) on interest rate swap contracts, net	(14,429)		123,147
Gain on extinguishment of debt and write-off of deferred financing costs	4,393		—
Other income, net	10,205		2,430
	(363,588)		(227,484)
Income before income taxes	61,542		284,987
Income tax expense	(30,372)		(82,846)
Net income	31,170		202,141
Net income attributable to noncontrolling interests	(5,305)		(5,590)
Net income attributable to Altice USA, Inc. stockholders	$	25,865	$	196,551
Income per share:
Basic income per share	$	0.06	$	0.43
Basic weighted average common shares (in thousands)	454,686		453,229

Diluted income per share	$	0.06	$	0.43
Diluted weighted average common shares (in thousands)	455,594		453,229
Cash dividends declared per common share	$	—	$	—


	Three Months Ended March 31,
	2023		2022
Net income	$	31,170	$	202,141
Other comprehensive income (loss):
Defined benefit pension plans	1,454		2,504
Applicable income taxes	(393)		(661)
Defined benefit pension plans, net of income taxes	1,061		1,843



Foreign currency translation adjustment	(190)		(170)
Other comprehensive income	871		1,673
Comprehensive income	32,041		203,814
Comprehensive income attributable to noncontrolling interests	(5,305)		(5,590)
Comprehensive income attributable to Altice USA, Inc. stockholders	$	26,736	$	198,224


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Number of shares of common stock outstanding as of April 28, 2023			454,684,612


ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY (In thousands) (Unaudited)
	Class A Common Stock		Class B Common Stock		Paid-in Capital		Accumulated Deficit		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Altice USA Stockholders' Deficiency		Non-controlling Interests		Total Deficiency
Balance at January 1, 2023	$	2,719	$	1,843	$	182,701	$	(654,273)	$	—	$	(8,201)	$	(475,211)	$	(28,701)	$	(503,912)
Net income attributable to stockholders	—		—		—		25,865		—		—		25,865		—		25,865
Net income attributable to noncontrolling interests	—		—		—		—		—		—		—		5,305		5,305

Pension liability adjustments, net of income taxes	—		—		—		—		—		1,061		1,061		—		1,061
Foreign currency translation adjustment	—		—		—		—		—		(188)		(188)		(2)		(190)
Share-based compensation expense (benefit)- equity classified	—		—		(8,718)		—		—		—		(8,718)		—		(8,718)






Change in noncontrolling interest	—		—		(14,166)		—		—		—		(14,166)		(8,027)		(22,193)

Other, net	(15)				(67)		—		—		—		(82)		—		(82)
Balance at March 31, 2023	$	2,704	$	1,843	$	159,750	$	(628,408)	$	—	$	(7,328)	$	(471,439)	$	(31,425)	$	(502,864)


CSC HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands)
	March 31, 2023 (Unaudited)		December 31, 2022
ASSETS
Current Assets:
Cash and cash equivalents	$	220,440	$	305,477
Restricted cash	270		267
Accounts receivable, trade (less allowance for doubtful accounts of $23,292 and $20,767, respectively)	319,369		365,992

Prepaid expenses and other current assets ($421 and $572 due from affiliates, respectively)	179,497		130,684
Derivative contracts	—		263,873
Investment securities pledged as collateral	—		1,502,145




Total current assets	719,576		2,568,438
Property, plant and equipment, net of accumulated depreciation of $7,935,109 and $7,785,397, respectively	7,790,547		7,500,780

Right-of-use operating lease assets	273,827		250,601


Other assets	223,251		259,681
Amortizable intangibles, net of accumulated amortization of $5,655,369 and $5,549,674, respectively	1,554,443		1,660,331
Indefinite-lived cable television franchises	13,216,355		13,216,355
Goodwill	8,208,773		8,208,773
Total assets	$	31,986,772	$	33,664,959


LIABILITIES AND MEMBER'S DEFICIENCY
Current Liabilities:
Accounts payable	$	1,081,946	$	1,213,806
Interest payable	236,083		252,351
Accrued employee related costs	117,925		139,328

Deferred revenue	96,299		80,559
Debt	373,174		2,075,077
Other current liabilities ($30,790 and $20,857 due to affiliates, respectively)	341,434		278,580
Total current liabilities	2,246,861		4,039,701

Other liabilities	290,137		274,623
Deferred tax liability	5,033,581		5,090,294

Right-of-use operating lease liability	281,067		260,237
Long-term debt, net of current maturities	24,624,437		24,512,656
Total liabilities	32,476,083		34,177,511
Commitments and contingencies (Note 14)
Redeemable noncontrolling interest	22,193		—

Member's deficiency (100 membership units issued and outstanding)	(472,751)		(475,650)
Accumulated other comprehensive loss	(7,328)		(8,201)
Total member's deficiency	(480,079)		(483,851)
Noncontrolling interests	(31,425)		(28,701)
Total deficiency	(511,504)		(512,552)
Total liabilities and member's deficiency	$	31,986,772	$	33,664,959


	Member's Deficiency		Accumulated Other Comprehensive Income (Loss)		Total Member's Deficiency		Noncontrolling Interests		Total Deficiency

Balance at January 1, 2023	$	(475,650)	$	(8,201)	$	(483,851)	$	(28,701)	$	(512,552)
Net income attributable to CSC Holdings' sole member	25,865		—		25,865		—		25,865
Net income attributable to noncontrolling interests	—		—		—		5,305		5,305

Pension liability adjustments, net of income taxes	—		1,061		1,061		—		1,061
Foreign currency translation adjustment	—		(188)		(188)		(2)		(190)
Share-based compensation expense (benefit)- equity classified	(8,718)		—		(8,718)		—		(8,718)






Change in noncontrolling interest	(14,166)		—		(14,166)		(8,027)		(22,193)
Other, net	(82)		—		(82)		—		(82)
Balance at March 31, 2023	$	(472,751)	$	(7,328)	$	(480,079)	$	(31,425)	$	(511,504)


	Member's Deficiency		Accumulated Other Comprehensive Income		Total Member's Deficiency		Noncontrolling Interests		Total Deficiency

Balance at January 1, 2022	$	(848,156)	$	6,497	$	(841,659)	$	(51,114)	$	(892,773)
Net income attributable to CSC Holdings' sole member	196,551		—		196,551		—		196,551
Net income attributable to noncontrolling interests	—		—		—		5,590		5,590

Pension liability adjustments, net of income taxes	—		1,843		1,843		—		1,843
Foreign currency translation adjustment	—		(170)		(170)		—		(170)
Share-based compensation expense (equity classified)	40,512		—		40,512		—		40,512
Non-cash contribution from parent	11		—		11		—		11
Balance at March 31, 2022	$	(611,082)	$	8,170	$	(602,912)	$	(45,524)	$	(648,436)


	As of March 31, 2023						As of December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Estimated Useful Lives
Customer relationships	$	6,123,586	$	(4,588,624)	$	1,534,962	$	6,123,586	$	(4,484,286)	$	1,639,300	3 to 18 years
Trade names	1,024,300		(1,018,658)		5,642		1,024,300		(1,018,212)		6,088		4 to 10 years
Other amortizable intangibles	61,926		(48,087)		13,839		62,119		(47,176)		14,943		1 to 15 years
	$	7,209,812	$	(5,655,369)	$	1,554,443	$	7,210,005	$	(5,549,674)	$	1,660,331


		Interest Rate		March 31, 2023				December 31, 2022
Date Issued	Maturity Date			Principal Amount		Carrying Amount (a)		Principal Amount		Carrying Amount (a)
CSC Holdings Senior Notes:
May 23, 2014	June 1, 2024	5.250	%	$	750,000	$	730,273	$	750,000	$	726,343
October 18, 2018	April 1, 2028	7.500	%	4,118		4,114		4,118		4,113
November 27, 2018	April 1, 2028	7.500	%	1,045,882		1,044,794		1,045,882		1,044,752
July 10 and October 7, 2019	January 15, 2030	5.750	%	2,250,000		2,278,620		2,250,000		2,279,483
June 16 and August 17, 2020	December 1, 2030	4.625	%	2,325,000		2,362,114		2,325,000		2,363,082
May 13, 2021	November 15, 2031	5.000	%	500,000		498,412		500,000		498,375
				6,875,000		6,918,327		6,875,000		6,916,148
CSC Holdings Senior Guaranteed Notes:
September 23, 2016	April 15, 2027	5.500	%	1,310,000		1,307,241		1,310,000		1,307,091
January 29, 2018	February 1, 2028	5.375	%	1,000,000		995,286		1,000,000		995,078
January 24, 2019	February 1, 2029	6.500	%	1,750,000		1,747,868		1,750,000		1,747,795
June 16, 2020	December 1, 2030	4.125	%	1,100,000		1,096,179		1,100,000		1,096,077
August 17, 2020	February 15, 2031	3.375	%	1,000,000		997,330		1,000,000		997,258
May 13, 2021	November 15, 2031	4.500	%	1,500,000		1,495,254		1,500,000		1,495,144
				7,660,000		7,639,158		7,660,000		7,638,443
CSC Holdings Restricted Group Credit Facility:
Revolving Credit Facility (b) (c)		7.177	%	1,700,000		1,695,951		1,575,000		1,570,730
Term Loan B	July 17, 2025	6.934	%	1,532,002		1,529,110		1,535,842		1,532,644
Incremental Term Loan B-3	January 15, 2026	6.934	%	525,696		524,666		527,014		525,883

Incremental Term Loan B-5	April 15, 2027	7.184	%	2,910,000		2,896,201		2,917,500		2,902,921
Incremental Term Loan B-6	January 15, 2028	9.327	%	2,001,942		1,957,704		2,001,942		1,955,839
				8,669,640		8,603,632		8,557,298		8,488,017
Lightpath Senior Notes:
September 29, 2020	September 15, 2028	5.625	%	415,000		408,342		415,000		408,090
Lightpath Senior Secured Notes:
September 29, 2020	September 15, 2027	3.875	%	450,000		443,377		450,000		443,046
Lightpath Term Loan	November 30, 2027	7.934	%	586,500		574,570		588,000		575,478
Lightpath Revolving Credit Facility		(e)		—		—		—		—
				1,451,500		1,426,289		1,453,000		1,426,614
Collateralized indebtedness (see Note 9) (f)				—		—		1,759,017		1,746,281
Finance lease obligations				241,909		241,909		244,595		244,595
Notes payable and supply chain financing (d)				168,296		168,296		127,635		127,635
				25,066,345		24,997,611		26,676,545		26,587,733
Less: current portion of credit facility debt				(76,648)		(76,648)		(71,643)		(71,643)

Less: current portion of collateralized indebtedness (f)				—		—		(1,759,017)		(1,746,281)
Less: current portion of finance lease obligations				(128,369)		(128,369)		(129,657)		(129,657)
Less: current portion of notes payable and supply chain financing				(168,157)		(168,157)		(127,496)		(127,496)
				(373,174)		(373,174)		(2,087,813)		(2,075,077)
Long-term debt				$	24,693,171	$	24,624,437	$	24,588,732	$	24,512,656


	Three Months Ended March 31,
	2023		2022
Residential:
Broadband	$	957,045	$	985,517
Video	770,601		841,887
Telephony	77,681		85,234

Business services and wholesale	363,536		367,522
News and advertising	98,737		114,675
Mobile	23,601		24,035
Other	2,777		3,027
Total revenue	$	2,293,978	$	2,421,897


2023	$	163,833
2024	888,597
2025 (a)	3,266,414
2026	567,223
2027	5,141,519
Thereafter (b)	14,796,850


Derivatives Not Designated as Hedging Instruments	Balance Sheet Location	Fair Value at
		March 31, 2023		December 31, 2022

Asset Derivatives:

Prepaid forward contracts (a)	Derivative contracts	$	—	$	263,873
Interest rate swap contracts	Other assets, long-term	152,763		185,622

		152,763		449,495


	Fair Value Hierarchy	March 31, 2023		December 31, 2022
Assets:
Money market funds	Level I	$	80,353	$	141,137
Investment securities pledged as collateral (a)	Level I	—		1,502,145
Prepaid forward contracts (a)	Level II	—		263,873
Interest rate swap contracts	Level II	152,763		185,622
Liabilities:


Contingent consideration related to acquisition	Level III	8,584		8,383


	Share-Based Compensation				Unrecognized Compensation Cost as of March 31, 2023
	Three Months Ended March 31,
	2023		2022

Awards issued pursuant to LTIP:
Stock option awards (a)	$	(5,585)	$	22,497	$	18,458
Performance stock units (a)	(7,198)		2,026		17,351
Restricted share units	3,396		16,009		88,687
Other	6,764		—		63,749
	$	(2,623)	$	40,532	$	188,245


	Shares Under Option	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (a)
Balance at December 31, 2022	51,075,675	$	20.27	7.73	$	184
Granted	640	4.69

Forfeited	(1,296,232)	18.33
Exchanged and canceled (b)	(24,015,508)	20.72
Balance at March 31, 2023	25,764,575	$	19.94	6.90	$	—
Options exercisable at March 31, 2023	14,964,982	$	23.21	5.70	$	—


			Number of PSUs
Balance at December 31, 2022			5,179,359
Forfeited			(235,020)
Balance at March 31, 2023			4,944,339


			Number of Units
Balance at December 31, 2022			7,495,388
Granted (including 3,430,433 in connection with Exchange Offer) (a)			9,891,225
Vested			(49,105)
Forfeited			(525,707)
Balance at March 31, 2023			16,811,801



	March 31, 2023		December 31, 2022


Due from:
Altice Europe	$	421	$	529
Other affiliates and related parties	—		43
	$	421	$	572
Due to:
Altice Europe	$	29,122	$	19,211
Other affiliates and related parties	1,668		1,646
	$	30,790	$	20,857


	Three Months Ended March 31,				Favorable (Unfavorable)
	2023		2022
Revenue:
Broadband	$	957,045	$	985,517	$	(28,472)
Video	770,601		841,887		(71,286)
Telephony	77,681		85,234		(7,553)
Residential revenue	1,805,327		1,912,638		(107,311)


Business services and wholesale	363,536		367,522		(3,986)
News and advertising	98,737		114,675		(15,938)
Mobile	23,601		24,035		(434)
Other	2,777		3,027		(250)
Total revenue	2,293,978		2,421,897		(127,919)
Operating expenses:
Programming and other direct costs	771,719		828,793		57,074
Other operating expenses	651,245		641,906		(9,339)
Restructuring expense and other operating items	29,672		3,378		(26,294)
Depreciation and amortization (including impairments)	416,212		435,349		19,137
Operating income	425,130		512,471		(87,341)
Other income (expense):
Interest expense, net	(389,278)		(303,362)		(85,916)
Gain (loss) on investments, net	192,010		(150,773)		342,783
Gain (loss) on derivative contracts, net	(166,489)		101,074		(267,563)
Gain (loss) on interest rate swap contracts, net	(14,429)		123,147		(137,576)
Gain on extinguishment of debt and write-off of deferred financing costs	4,393		—		4,393
Other income, net	10,205		2,430		7,775
Income before income taxes	61,542		284,987		(223,445)
Income tax expense	(30,372)		(82,846)		52,474
Net income	31,170		202,141		(170,971)
Net income attributable to noncontrolling interests	(5,305)		(5,590)		285
Net income attributable to Altice USA, Inc. stockholders	$	25,865	$	196,551	$	(170,686)


	March 31, 2023			December 31, 2022			March 31, 2022

	(in thousands)
Total passings (a)	9,512.2			9,463.8			9,304.9
Total customer relationships (b)	4,853.3			4,879.7			4,995.0
Residential	4,472.4			4,498.5			4,612.1
SMB	380.9			381.2			382.9
Residential customers:
Broadband	4,263.7			4,282.9			4,373.2
Video	2,380.5			2,439.0			2,658.7
Telephony	1,703.5			1,764.1			1,951.5
Penetration of total passings (c)	51.0		%	51.6		%	53.7		%
Average revenue per user ("ARPU") (d)	$	134.16		$	134.76		$	137.92

FTTH total passings (e)	2,373.0			2,158.7			1,316.6
FTTH customer relationships (f)	209.9			171.7			81.0
FTTH Residential	207.2			170.0			80.4
FTTH SMB	2.7			1.7			0.6
Penetration of FTTH total passings (g)	8.8		%	8.0		%	6.1		%



Decrease in programming costs primarily due to lower video customers, partially offset by net contractual rate increases	$	(43,779)
Decrease in software license fees related to customer premise equipment	(7,703)
Decrease in taxes and surcharges, primarily due to refunds	(5,706)

Other net increases	114
	$	(57,074)



Net increase in labor costs and benefits, partially offset by an increase in capitalizable activity	$	36,007
Increase in utility costs	5,788
Increase in bad debt	5,521
Increase in repairs and maintenance costs, net of capitalizable activity	5,381
Decrease in share-based compensation primarily due to credits resulting from the modification of awards to certain former executive officers	(43,155)



Other net increases, net of capitalizable activity	(203)
	$	9,339



Increase primarily due to an increase in interest rates, partially offset by a decrease in average debt balances	$	102,927
Capitalized interest related to FTTH network construction	(5,268)
Higher interest income	(2,120)
Other net decreases, primarily lower amortization of deferred financing costs and original issue discounts	(9,623)
	$	85,916


	CSC Holdings
	Three Months Ended March 31,
	2023		2022
Net income	$	31,170	$	202,141
Income tax expense	30,372		82,846
Other income, net	(10,205)		(2,430)
Gain on interest rate swap contracts, net	14,429		(123,147)
Gain on derivative contracts, net	166,489		(101,074)
Loss on investments, net	(192,010)		150,773
Loss on extinguishment of debt and write-off of deferred financing costs	(4,393)		—
Interest expense, net	389,278		303,362
Depreciation and amortization	416,212		435,349
Restructuring expense and other operating items	29,672		3,378
Share-based compensation	(2,623)		40,532
Adjusted EBITDA	868,391		991,730
Capital expenditures (cash)	582,897		392,371
Operating Free Cash Flow	$	285,494	$	599,359


	CSC Holdings Restricted Group		Lightpath		Other Unrestricted Entities		Altice USA/CSC Holdings
Debt outstanding:
Credit facility debt	$	8,603,632	$	574,570	$	—	$	9,178,202
Senior guaranteed notes	7,639,158		—		—		7,639,158
Senior secured notes	—		443,377		—		443,377
Senior notes	6,918,327		408,342		—		7,326,669
Subtotal	23,161,117		1,426,289		—		24,587,406
Finance lease obligations	241,909		—		—		241,909
Notes payable and supply chain financing	168,296		—		—		168,296
Total debt	$	23,571,322	$	1,426,289	$	—	$	24,997,611
Interest expense:
Credit facility debt, senior notes, finance leases, notes payable and supply chain financing	$	361,323	$	22,900	$	—	$	384,223
Collateralized indebtedness relating to stock monetizations (a)	—		—		7,227		7,227
Total interest expense	$	361,323	$	22,900	$	7,227	$	391,450


	CSC Holdings Restricted Group		Lightpath		Altice USA/ CSC Holdings
2023	$	1,167,334	$	54,306	$	1,221,640
2024	2,218,388		85,830		2,304,218
2025 (a)	4,511,130		85,283		4,596,413
2026	1,639,848		80,895		1,720,743
2027	5,075,994		1,105,644		6,181,638
Thereafter (b)	15,931,112		438,344		16,369,456
Total	$	30,543,806	$	1,850,302	$	32,394,108


EXHIBIT NO.						DESCRIPTION

10.1						Executive Employment Agreement, dated February 5, 2023, by and between Altice USA, Inc. and Marc Sirota, as amended February 22, 2023.
10.2						Transition Agreement, dated February 22, 2023, between Altice USA, Inc. and Michael Grau (incorporated herein by reference to Exhibit (d)(9) to the Company's Amendment No. 1 to Tender Offer Statement on Schedule TO (File No. 005-90339) filed on February 22, 2023).
10.3						Separation Agreement, dated March 22, 2023, between Altice USA, Inc. and Dexter Goei.
10.4						Altice USA 2017 Long Term Incentive Plan Form of Cash Performance Award Agreement (incorporated herein by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K (File No. 001-38126) filed on March 22, 2023).
10.5						Form of Restricted Stock Unit Award Agreement for Replacement Awards under the Amended and Restated Altice USA 2017 Long Term Incentive Plan, as amended (incorporated herein by reference to Exhibit (a)(1)(K) to the Company's Tender Offer Statement on Schedule TO (File No. 005-90339) filed on January 23, 2023).
10.6						Form of Deferred Cash-Denominated Award Agreement for Replacement Awards under the Amended and Restated Altice USA 2017 Long Term Incentive Plan, as amended (incorporated herein by reference to Exhibit (a)(1)(L) to the Company's Tender Offer Statement on Schedule TO (File No. 005-90339) filed on January 23, 2023).
31.1						Section 302 Certification of the CEO.
31.2						Section 302 Certification of the CFO.
32						Section 906 Certifications of the CEO and CFO.
101						The following financial statements from Altice USA's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 filed with the Securities and Exchange Commission on May 3, 2023 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Operations; (iii) the Consolidated Statements of Comprehensive Income; (iv) the Consolidated Statements of Stockholders' Deficiency; (v) the Consolidated Statements of Cash Flows; and (vi) the Combined Notes to Consolidated Financial Statements.
104						The cover page from this quarterly report on Form 10-Q formatted in Inline XBRL.


cc:			Dennis Mathew (via e-mail)
			Christopher Clarke (via e-mail)