Optimum Communications, Inc 10-Q for FY2022 Q3

Optimum Communications, Inc. (OPTU)

10-Q 2022-11-02 For: 2022-09-30

Added on April 12, 2026

About this 10-Q

Optimum Communications, Inc filed this 10-Q on November 2, 2022, covering the quarter ended September 30, 2022 (FY2022 Q3).

Headline figures

Quarter ended September 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.39B; down 7.0% from $2.57B a year earlier
Net income: $84.95M; down 68.2% from net income of $266.85M a year earlier
Diluted EPS: $0.19; down 67.2% from $0.58 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 - September 30, 2022 (Unaudited) and December 31, 2021	4
	Consolidated Statements of Operations - Three and nine months ended September 30, 2022 and 2021 (Unaudited)	5
	Consolidated Statements of Comprehensive Income - Three and nine months ended September 30, 2022 and 2021 (Unaudited)	6
	Consolidated Statements of Stockholders' Deficiency - Three and nine months ended September 30, 2022 and 2021 (Unaudited)	7
	Consolidated Statements of Cash Flows - Nine months ended September 30, 2022 and 2021 (Unaudited)	12
	Combined Notes to Consolidated Financial Statements (Unaudited)	19
Supplemental Financial Statements Furnished:
CSC HOLDINGS, LLC AND SUBSIDIARIES
Consolidated Financial Statements
	Consolidated Balance Sheets - September 30, 2022 (Unaudited) and December 31, 2021	13
	Consolidated Statements of Operations - Three and nine months ended September 30, 2022 and 2021 (Unaudited)	14
	Consolidated Statements of Comprehensive Income - Three and nine months ended September 30, 2022 and 2021 (Unaudited)	15
	Consolidated Statements of Member's Deficiency - Three and nine months ended September 30, 2022 and 2021 (Unaudited)	16
	Consolidated Statements of Cash Flows - Nine months ended September 30, 2022 and 2021 (Unaudited)	18
	Combined Notes to Consolidated Financial Statements (Unaudited)	19
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		34
Item 3. Quantitative and Qualitative Disclosures About Market Risk		48
Item 4. Controls and Procedures		50
PART II. OTHER INFORMATION		51
Item 1. Legal Proceedings		51


Item 6. Exhibits		51
SIGNATURES		52


ALTICE USA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands)
	September 30, 2022 (Unaudited)		December 31, 2021
ASSETS
Current Assets:
Cash and cash equivalents	$	250,576	$	195,711
Restricted cash	265		264
Accounts receivable, trade (less allowance for doubtful accounts of $37,900 and $27,931, respectively)	343,355		406,952

Prepaid expenses and other current assets ($519 and $3,776 due from affiliates, respectively)	164,412		183,714
Derivative contracts	481,914		2,993
Investment securities pledged as collateral	1,259,877		—




Total current assets	2,500,399		789,634
Property, plant and equipment, net of accumulated depreciation of $7,649,014 and $7,142,852, respectively	7,077,966		6,340,467

Right-of-use operating lease assets	234,707		222,124
Investment securities pledged as collateral	—		2,161,937

Other assets	264,974		76,653
Amortizable intangibles, net of accumulated amortization of $5,421,667 and $5,051,149, respectively	1,782,300		2,202,001
Indefinite-lived cable television franchises	13,216,355		13,216,355
Goodwill	8,205,863		8,205,863
Total assets	$	33,282,564	$	33,215,034
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current Liabilities:
Accounts payable	$	1,084,737	$	1,023,045
Interest payable	224,278		244,934
Accrued employee related costs	155,384		124,941

Deferred revenue	90,040		94,943
Debt	2,062,295		917,313
Other current liabilities ($26,821 and $31,810 due to affiliates, respectively)	352,772		329,943
Total current liabilities	3,969,506		2,735,119
Other liabilities	160,716		159,082
Deferred tax liability	4,956,050		5,048,129
Liabilities under derivative contracts	—		276,933
Right-of-use operating lease liability	245,360		237,226
Long-term debt, net of current maturities	24,290,003		25,629,447
Total liabilities	33,621,635		34,085,936
Commitments and contingencies (Note 14)
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, 270,358,014 shares issued and 270,338,751 shares outstanding as of September 30, 2022 and 270,341,685 shares issued and 270,320,798 shares outstanding as of December 31, 2021	2,704		2,703
Class B common stock: $0.01 par value, 1,000,000,000 shares authorized, 490,086,674 issued, 184,329,677 shares outstanding as of September 30, 2022 and 184,333,342 shares outstanding as of December 31, 2021	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	137,660		18,005
Accumulated deficit	(461,160)		(848,836)
	(318,953)		(826,285)
Treasury stock, at cost (19,263 and 20,887 Class A common shares, respectively)	—		—
Accumulated other comprehensive income	5,432		6,497
Total Altice USA stockholders' deficiency	(313,521)		(819,788)
Noncontrolling interests	(25,550)		(51,114)
Total stockholders' deficiency	(339,071)		(870,902)
Total liabilities and stockholders' deficiency	$	33,282,564	$	33,215,034


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenue (including revenue from affiliates of $649, $3,277, $1,765, and $9,718, respectively) (See Note 13)	$	2,393,552	$	2,574,882	$	7,278,463	$	7,569,711
Operating expenses:
Programming and other direct costs (including charges from affiliates of $4,086, $5,294, $11,419, and $12,026, respectively) (See Note 13)	782,121		843,909		2,429,925		2,545,645
Other operating expenses (including charges from affiliates of $3,111, $3,274, $9,243 and $9,149, respectively) (See Note 13)	694,390		590,519		2,009,760		1,760,132
Restructuring and other expense	4,007		1,885		10,058		10,958
Depreciation and amortization (including impairments)	445,769		447,958		1,327,243		1,327,142
	1,926,287		1,884,271		5,776,986		5,643,877
Operating income	467,265		690,611		1,501,477		1,925,834
Other income (expense):
Interest expense, net	(340,989)		(319,001)		(954,564)		(954,684)
Gain (loss) on investments	(425,686)		(46,821)		(902,060)		151,651
Gain (loss) on derivative contracts, net	323,668		43,385		643,856		(109,020)
Gain on interest rate swap contracts, net	105,945		5,521		268,960		59,600
Loss on extinguishment of debt and write-off of deferred financing costs	—		—		—		(51,712)
Other income, net	3,245		2,280		8,196		7,606
	(333,817)		(314,636)		(935,612)		(896,559)
Income before income taxes	133,448		375,975		565,865		1,029,275
Income tax expense	(35,827)		(105,226)		(152,563)		(279,053)
Net income	97,621		270,749		413,302		750,222
Net income attributable to noncontrolling interests	(12,670)		(3,896)		(25,626)		(11,573)
Net income attributable to Altice USA, Inc. stockholders	$	84,951	$	266,853	$	387,676	$	738,649
Income per share:
Basic income per share	$	0.19	$	0.59	$	0.86	$	1.61
Basic weighted average common shares (in thousands)	453,239		454,049		453,233		460,023

Diluted income per share	$	0.19	$	0.58	$	0.86	$	1.59
Diluted weighted average common shares (in thousands)	453,390		457,163		453,284		465,349
Cash dividends declared per common share	$	—	$	—	$	—	$	—


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net income	$	97,621	$	270,749	$	413,302	$	750,222
Other comprehensive income (loss):
Defined benefit pension plans	540		(2,084)		(1,515)		8,056
Applicable income taxes	(143)		555		400		(2,142)
Defined benefit pension plans, net of income taxes	397		(1,529)		(1,115)		5,914



Foreign currency translation adjustment	159		(619)		50		(140)
Applicable income taxes	—		—		—		—
Foreign currency translation adjustment, net of income taxes	159		(619)		50		(140)
Other comprehensive income (loss)	556		(2,148)		(1,065)		5,774
Comprehensive income	98,177		268,601		412,237		755,996
Comprehensive income attributable to noncontrolling interests	(12,670)		(3,896)		(25,626)		(11,573)
Comprehensive income attributable to Altice USA, Inc. stockholders	$	85,507	$	264,705	$	386,611	$	744,423


☒			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 October 28, 2022			454,668,428


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		Total Altice USA Stockholders' Deficiency		Non-controlling Interests		Total Deficiency
Balance at January 1, 2022	$	2,703	$	1,843	$	18,005	$	(848,836)	$	—	$	6,497	$	(819,788)	$	(51,114)	$	(870,902)
Net income attributable to stockholders	—		—		—		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, net of income taxes	—		—		—		—		—		(170)		(170)		—		(170)
Share-based compensation expense (equity classified)	—		—		40,512		—		—		—		40,512		—		40,512




Issuance of common shares pursuant to employee long term incentive plan	—		—		10		—		—		—		10		—		10

Balance at March 31, 2022	2,703		1,843		58,527		(652,285)		—		8,170		(581,042)		(45,524)		(626,566)
Net income attributable to stockholders	—		—		—		106,174		—		—		106,174		—		106,174
Net income attributable to noncontrolling interests	—		—		—		—		—		—		—		7,366		7,366

Pension liability adjustments, net of income taxes	—		—		—		—		—		(3,355)		(3,355)		—		(3,355)
Foreign currency translation adjustment, net of income taxes	—		—		—		—		—		61		61		—		61
Share-based compensation expense (equity classified)	—		—		41,680		—		—		—		41,680		—		41,680




Issuance of common shares pursuant to employee long term incentive plan	—		—		6		—		—		—		6		—		6

Balance at June 30, 2022	$	2,703	$	1,843	$	100,213	$	(546,111)	$	—	$	4,876	$	(436,476)	$	(38,158)	$	(474,634)


	Nine Months Ended September 30,
	2022		2021
Cash flows from operating activities:
Net income	$	413,302	$	750,222
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including impairments)	1,327,243		1,327,142


Loss (gain) on investments	902,060		(151,651)
Loss (gain) on derivative contracts, net	(643,856)		109,020
Loss on extinguishment of debt and write-off of deferred financing costs	—		51,712
Amortization of deferred financing costs and discounts (premiums) on indebtedness	61,447		69,176

Share-based compensation expense	114,410		80,277
Deferred income taxes	(89,240)		97,046
Decrease in right-of-use assets	33,315		32,694
Provision for doubtful accounts	65,281		46,448
Other	(492)		1,434
Change in assets and liabilities, net of effects of acquisitions and dispositions:
Accounts receivable, trade	389		(35,077)
Prepaid expenses and other assets	15,730		33,381
Amounts due from and due to affiliates	(1,732)		12,804
Accounts payable and accrued liabilities	17,776		(121,503)
Deferred revenue	(5,508)		(24,829)
Liabilities related to interest rate swap contracts	(304,409)		(100,817)
Net cash provided by operating activities	1,905,716		2,177,479
Cash flows from investing activities:
Capital expenditures	(1,371,056)		(845,067)
Payments for acquisitions, net of cash acquired	(2,060)		(340,444)




Other, net	(2,985)		(2,285)
Net cash used in investing activities	(1,376,101)		(1,187,796)
Cash flows from financing activities:
Proceeds from long-term debt	1,565,000		3,310,000
Repayment of debt	(1,942,428)		(3,483,026)


Proceeds from collateralized indebtedness and related derivative contracts, net	—		185,105
Repayment of collateralized indebtedness and related derivative contracts, net	—		(185,105)



Principal payments on finance lease obligations	(97,165)		(60,257)
Purchase of shares of Altice USA Class A common stock, pursuant to a share repurchase program	—		(804,928)






Other	(207)		2,698
Net cash used in financing activities	(474,800)		(1,035,513)
Net increase (decrease) in cash and cash equivalents	54,815		(45,830)
Effect of exchange rate changes on cash and cash equivalents	51		(140)
Net increase (decrease) in cash and cash equivalents	54,866		(45,970)
Cash, cash equivalents and restricted cash at beginning of year	195,975		278,686
Cash, cash equivalents and restricted cash at end of period	$	250,841	$	232,716


CSC HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands)
	September 30, 2022 (Unaudited)		December 31, 2021
ASSETS
Current Assets:
Cash and cash equivalents	$	248,019	$	193,154
Restricted cash	265		264
Accounts receivable, trade (less allowance for doubtful accounts of $37,900 and $27,931, respectively)	343,355		406,952

Prepaid expenses and other current assets ($519 and $3,776 due from affiliates, respectively)	164,412		183,714
Derivative contracts	481,914		2,993
Investment securities pledged as collateral	1,259,877		—




Total current assets	2,497,842		787,077
Property, plant and equipment, net of accumulated depreciation of $7,649,014 and $7,142,852, respectively	7,077,966		6,340,467

Right-of-use operating lease assets	234,707		222,124
Investment securities pledged as collateral	—		2,161,937

Other assets	264,974		76,653
Amortizable intangibles, net of accumulated amortization of $5,421,667 and $5,051,149, respectively	1,782,300		2,202,001
Indefinite-lived cable television franchises	13,216,355		13,216,355
Goodwill	8,205,863		8,205,863
Total assets	$	33,280,007	$	33,212,477


LIABILITIES AND MEMBER'S DEFICIENCY
Current Liabilities:
Accounts payable	$	1,084,737	$	1,023,045
Interest payable	224,278		244,934
Accrued employee related costs	155,384		124,941

Deferred revenue	90,040		94,943
Debt	2,062,295		917,313
Other current liabilities ($26,821 and $31,810 due to affiliates, respectively)	352,773		329,944
Total current liabilities	3,969,507		2,735,120

Other liabilities	160,716		159,082
Deferred tax liability	4,975,363		5,067,442
Liabilities under derivative contracts	—		276,933
Right-of-use operating lease liability	245,360		237,226
Long-term debt, net of current maturities	24,290,003		25,629,447
Total liabilities	33,640,949		34,105,250
Commitments and contingencies (Note 14)


Member's deficiency (100 membership units issued and outstanding)	(340,824)		(848,156)
Accumulated other comprehensive income	5,432		6,497
Total member's deficiency	(335,392)		(841,659)
Noncontrolling interest	(25,550)		(51,114)
Total deficiency	(360,942)		(892,773)
Total liabilities and member's deficiency	$	33,280,007	$	33,212,477


	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, net of income taxes	—		(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)
Net income attributable to CSC Holdings' sole member	106,174		—		106,174		—		106,174
Net income attributable to noncontrolling interests	—		—		—		7,366		7,366
Pension liability adjustments, net of income taxes	—		(3,355)		(3,355)		—		(3,355)
Foreign currency translation adjustment, net of income taxes	—		61		61		—		61
Share-based compensation expense (equity classified)	41,680		—		41,680		—		41,680
Non-cash contribution from parent	5		—		5		—		5
Balance at June 30, 2022	(463,223)		4,876		(458,347)		(38,158)		(496,505)
Net income attributable to CSC Holdings' sole member	84,951		—		84,951		—		84,951
Net income attributable to noncontrolling interests	—		—		—		12,670		12,670
Distributions to noncontrolling interests	—		—		—		(62)		(62)
Pension liability adjustments, net of income taxes	—		397		397		—		397
Foreign currency translation adjustment, net of income taxes	—		159		159		—		159
Share-based compensation expense (equity classified)	37,527		—		37,527		—		37,527

Non-cash distributions to parent, net	(79)		—		(79)		—		(79)
Balance at September 30, 2022	$	(340,824)	$	5,432	$	(335,392)	$	(25,550)	$	(360,942)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Broadband	$	981,842	$	989,410	$	2,970,039	$	2,952,136
Video	816,001		877,422		2,499,437		2,675,861
Telephony	83,097		99,943		252,952		310,298
Residential	1,880,940		1,966,775		5,722,428		5,938,295
Business services and wholesale	366,554		440,813		1,105,579		1,180,039
News and advertising	120,522		143,625		368,447		380,462
Mobile	22,837		20,456		73,312		60,355
Other	2,699		3,213		8,697		10,560
Total revenue	$	2,393,552	$	2,574,882	$	7,278,463	$	7,569,711


	As of September 30, 2022						As of December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Estimated Useful Lives
Customer relationships	$	6,119,298	$	(4,373,246)	$	1,746,052	$	6,113,669	$	(4,020,282)	$	2,093,387	3 to 18 years
Trade names	1,024,300		(1,002,395)		21,905		1,081,083		(988,563)		92,520		4 to 10 years
Other amortizable intangibles	60,369		(46,026)		14,343		58,398		(42,304)		16,094		1 to 15 years
	$	7,203,967	$	(5,421,667)	$	1,782,300	$	7,253,150	$	(5,051,149)	$	2,202,001


		Interest Rate		September 30, 2022				December 31, 2021
Date Issued	Maturity Date			Principal Amount		Carrying Amount (a)		Principal Amount		Carrying Amount (a)
CSC Holdings Senior Notes:
September 27, 2012	September 15, 2022	5.875	%	$	—	$	—	$	649,024	$	635,310
May 23, 2014	June 1, 2024	5.250	%	750,000		722,401		750,000		711,137
October 18, 2018	April 1, 2028	7.500	%	4,118		4,113		4,118		4,113
November 27, 2018	April 1, 2028	7.500	%	1,045,882		1,044,707		1,045,882		1,044,582
July 10 and October 7, 2019	January 15, 2030	5.750	%	2,250,000		2,280,354		2,250,000		2,282,875
June 16 and August 17, 2020	December 1, 2030	4.625	%	2,325,000		2,364,059		2,325,000		2,366,886
May 13, 2021	November 15, 2031	5.000	%	500,000		498,340		500,000		498,234
				6,875,000		6,913,974		7,524,024		7,543,137
CSC Holdings Senior Guaranteed Notes:
September 23, 2016	April 15, 2027	5.500	%	1,310,000		1,306,941		1,310,000		1,306,508
January 29, 2018	February 1, 2028	5.375	%	1,000,000		994,868		1,000,000		994,262
January 24, 2019	February 1, 2029	6.500	%	1,750,000		1,747,721		1,750,000		1,747,511
June 16, 2020	December 1, 2030	4.125	%	1,100,000		1,095,973		1,100,000		1,095,672
August 17, 2020	February 15, 2031	3.375	%	1,000,000		997,185		1,000,000		996,970
May 13, 2021	November 15, 2031	4.500	%	1,500,000		1,495,033		1,500,000		1,494,710
				7,660,000		7,637,721		7,660,000		7,635,633
CSC Holdings Restricted Group Credit Facility:
Revolving Credit Facility (b) (c)	July 13, 2027	5.171	%	1,300,000		1,295,506		900,000		893,864
Term Loan B	July 17, 2025	5.068	%	2,842,500		2,835,701		2,865,000		2,856,421
Incremental Term Loan B-3	January 15, 2026	5.068	%	1,230,375		1,227,474		1,239,938		1,236,394

Incremental Term Loan B-5	April 15, 2027	5.318	%	2,925,000		2,909,628		2,947,500		2,929,813
				8,297,875		8,268,309		7,952,438		7,916,492
Lightpath Senior Notes:
September 29, 2020	September 15, 2028	5.625	%	415,000		407,836		415,000		407,104
Lightpath Senior Secured Notes:
September 29, 2020	September 15, 2027	3.875	%	450,000		442,712		450,000		441,739
Lightpath Term Loan	November 30, 2027	6.068	%	589,500		576,378		594,000		579,119
Lightpath Revolving Credit Facility	November 30, 2025	(d)		—		—		—		—
				1,454,500		1,426,926		1,459,000		1,427,962
Collateralized indebtedness (see Note 9) (f)				1,759,017		1,736,294		1,759,017		1,706,997
Finance lease obligations				252,430		252,430		218,735		218,735
Notes payable and supply chain financing (e)				116,644		116,644		97,804		97,804
				26,415,466		26,352,298		26,671,018		26,546,760
Less: current portion of credit facility debt				(78,750)		(78,750)		(78,750)		(78,750)
Less: current portion of senior notes				—		—		(649,024)		(635,310)


2022	$	52,965
2023	1,920,994
2024	828,889
2025	2,823,750
2026	1,224,938
Thereafter	19,311,500


Derivatives Not Designated as Hedging Instruments	Balance Sheet Location	Fair Value at
		September 30, 2022		December 31, 2021

Asset Derivatives:
Interest rate swap contracts	Prepaid expenses and other current assets	$	—	$	2,993
Prepaid forward contracts	Derivative contracts	481,914		—
Interest rate swap contracts	Other asset, long-term	188,970		—

		670,884		2,993
Liability Derivatives:

Interest rate swap contracts	Other current liabilities	—		(3,441)
Prepaid forward contracts	Liabilities under derivative contracts, long-term	—		(161,942)
Interest rate swap contracts	Liabilities under derivative contracts, long-term	—		(114,991)
		$	—	$	(280,374)


	Fair Value Hierarchy	September 30, 2022		December 31, 2021
Assets:
Money market funds	Level I	$	128,616	$	100,015
Investment securities pledged as collateral	Level I	1,259,877		2,161,937
Prepaid forward contracts	Level II	481,914		—
Interest rate swap contracts	Level II	188,970		2,993
Liabilities:
Prepaid forward contracts	Level II	—		161,942
Interest rate swap contracts	Level II	—		118,432
Contingent consideration related to acquisition	Level III	6,698		—


	Share-Based Compensation								Unrecognized Compensation Cost As of September 30, 2022
	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021

Awards issued pursuant to LTIP (a):
Stock Option Awards	$	19,904	$	21,886	$	62,311	$	70,582	$	87,564
Performance Stock Units	1,593		2,286		5,220		8,136		32,855
Restricted Share Units	15,852		178		46,879		756		70,616
Other awards	—		—		—		$	803	—
	$	37,349	$	24,350	$	114,410	$	80,277	$	191,035


	Shares Under Option	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (a)
Balance at December 31, 2021	50,998,816	$	22.51	8.29	$	6,801
Granted	4,073,692	12.74

Forfeited	(5,134,398)	23.44
Balance at September 30, 2022	49,938,110	$	21.62	7.80	—
Options exercisable at September 30, 2022	18,868,299	$	24.14	6.39	$	—


Risk-free interest rate			2.71%
Expected life (in years)			6.15
Dividend yield			—%
Volatility			39.38%


			Number of PSUs
Balance at December 31, 2021			6,361,894
Forfeited			(635,148)
Balance at September 30, 2022			5,726,746


			Number of Units
Balance at December 31, 2021			6,617,837
Granted			1,511,357
Vested			(19,804)
Forfeited			(496,364)
Balance at September 30, 2022			7,613,026



	September 30, 2022		December 31, 2021


Due from:
Altice Europe	$	476	$	241
Other affiliates and related parties	43		3,535
	$	519	$	3,776
Due to:
Altice Europe	$	26,074	$	30,604
Other affiliates and related parties	747		1,206
	$	26,821	$	31,810


	Three Months Ended September 30,				Favorable (Unfavorable)		Nine Months Ended September 30,				Favorable (Unfavorable)
	2022		2021				2022		2021
Revenue:
Broadband	$	981,842	$	989,410	$	(7,568)	$	2,970,039	$	2,952,136	$	17,903
Video	816,001		877,422		(61,421)		2,499,437		2,675,861		(176,424)
Telephony	83,097		99,943		(16,846)		252,952		310,298		(57,346)
Residential revenue	1,880,940		1,966,775		(85,835)		5,722,428		5,938,295		(215,867)


Business services and wholesale revenue	366,554		440,813		(74,259)		1,105,579		1,180,039		(74,460)
News and advertising	120,522		143,625		(23,103)		368,447		380,462		(12,015)
Mobile	22,837		20,456		2,381		73,312		60,355		12,957
Other	2,699		3,213		(514)		8,697		10,560		(1,863)
Total revenue	2,393,552		2,574,882		(181,330)		7,278,463		7,569,711		(291,248)
Operating expenses:
Programming and other direct costs	782,121		843,909		61,788		2,429,925		2,545,645		115,720
Other operating expenses	694,390		590,519		(103,871)		2,009,760		1,760,132		(249,628)
Restructuring and other expense	4,007		1,885		(2,122)		10,058		10,958		900
Depreciation and amortization (including impairments)	445,769		447,958		2,189		1,327,243		1,327,142		(101)
Operating income	467,265		690,611		(223,346)		1,501,477		1,925,834		(424,357)
Other income (expense):
Interest expense, net	(340,989)		(319,001)		(21,988)		(954,564)		(954,684)		120
Gain (loss) on investments	(425,686)		(46,821)		(378,865)		(902,060)		151,651		(1,053,711)
Gain (loss) on derivative contracts, net	323,668		43,385		280,283		643,856		(109,020)		752,876
Gain on interest rate swap contracts, net	105,945		5,521		100,424		268,960		59,600		209,360
Loss on extinguishment of debt and write-off of deferred financing costs	—		—		—		—		(51,712)		51,712
Other income, net	3,245		2,280		965		8,196		7,606		590
Income before income taxes	133,448		375,975		(242,527)		565,865		1,029,275		(463,410)
Income tax expense	(35,827)		(105,226)		69,399		(152,563)		(279,053)		126,490
Net income	97,621		270,749		(173,128)		413,302		750,222		(336,920)
Net income attributable to noncontrolling interests	(12,670)		(3,896)		(8,774)		(25,626)		(11,573)		(14,053)
Net income attributable to Altice USA, Inc. stockholders	$	84,951	$	266,853	$	(181,902)	$	387,676	$	738,649	$	(350,973)


	September 30, 2022			June 30, 2022			September 30, 2021

	(in thousands)
Total passings (a)	9,414.9			9,363.1			9,212.5
Total customer relationships (b)(c)	4,897.2			4,947.3			5,027.6
Residential	4,514.7			4,564.2			4,646.0
SMB	382.5			383.1			381.6
Residential customers:
Broadband	4,290.6			4,333.6			4,388.1
Video	2,491.8			2,574.2			2,803.0
Telephony	1,818.9			1,886.9			2,057.1
Penetration of total passings (d)	52.0		%	52.8		%	54.6		%
ARPU (e)	$	138.12		$	140.13		$	140.73

FTTH total passings (f)	1,908.2			1,587.1			1,026.6
FTTH customer relationships (g)(h)	135.3			104.4			58.9
FTTH Residential	134.2			103.7			58.7
FTTH SMB	1.2			0.7			0.2
Penetration of FTTH total passings (i)	7.1		%	6.6		%	5.7		%


	Three Months		Nine Months
Decrease in programming costs primarily due to lower video customers, partially offset by net contractual rate increases	$	(31,010)	$	(69,015)
Decrease in taxes and surcharges	(14,131)		(20,347)
Decrease in digital media and linear advertising spots for resale costs	(9,989)		(13,210)
Decrease in franchise fee costs due to lower video revenue	(3,298)		(10,159)
Other net decreases	(3,360)		(2,989)
	$	(61,788)	$	(115,720)


	Three Months		Nine Months
Net increase in labor costs and benefits, partially offset by an increase in capitalizable activity	$	35,402	$	101,249
Increase in repairs and maintenance costs, net of capitalizable activity, including costs to rebrand our Suddenlink services to Optimum	13,640		36,343
Increase in marketing costs, primarily due to costs to rebrand our Suddenlink services to Optimum	11,425		35,043
Increase in share-based compensation costs	12,999		34,133
Increase in bad debt	10,149		18,834


Other net increases, net of capitalizable activity	20,256		24,026
	$	103,871	$	249,628


	Three Months		Nine Months
Increase primarily due to an increase in interest rates, offset by a decrease in average debt balances	$	31,234	$	17,868
Capitalized interest related to FTTH network construction	(4,296)		(9,544)
Higher interest income	(964)		(1,312)
Other net decreases, primarily lower amortization of deferred financing costs and original issue discounts	(3,986)		(7,132)
	$	21,988	$	(120)


	CSC Holdings Restricted Group		Lightpath		Other Unrestricted Entities		Altice USA/CSC Holdings
Debt outstanding:
Credit facility debt	$	8,268,309	$	576,378	$	—	$	8,844,687
Senior guaranteed notes	7,637,721		—		—		7,637,721
Senior secured notes	—		442,712		—		442,712
Senior notes	6,913,974		407,836		—		7,321,810
Subtotal	22,820,004		1,426,926		—		24,246,930
Finance lease obligations	252,430		—		—		252,430
Notes payable and supply chain financing	116,644		—		—		116,644
Subtotal	23,189,078		1,426,926		—		24,616,004
Collateralized indebtedness relating to stock monetizations (a)	—		—		1,736,294		1,736,294
Total debt	$	23,189,078	$	1,426,926	$	1,736,294	$	26,352,298
Interest expense:
Credit facility debt, senior notes, finance leases, notes payable and supply chain financing	$	843,244	$	54,371	$	—	$	897,615
Collateralized indebtedness relating to stock monetizations (a)	—		—		58,384		58,384
Total interest expense	$	843,244	$	54,371	$	58,384	$	955,999


	CSC Holdings Restricted Group		Lightpath		Other Unrestricted Entities (a)		Altice USA/ CSC Holdings
2022	$	337,790	$	10,342	$	8,541	$	356,673
2023	1,335,747		80,621		1,776,378		3,192,746
2024	1,978,792		80,537		—		2,059,329
2025	3,924,559		80,087		—		4,004,646
2026	2,171,473		76,741		—		2,248,214
Thereafter	20,207,982		1,532,022		—		21,740,004
Total	$	29,956,343	$	1,860,350	$	1,784,919	$	33,601,612


Fair Value of Equity Derivative Contracts
Fair value as of December 31, 2021, net liability position	$	(161,942)
Change in fair value, net	643,856
Fair value as of September 30, 2022, net asset position	$	481,914


# of Shares Deliverable	Maturity	Hedge Price per Share (a)	Cap Price (b)

42,955,236	2023	$40.95	$49.55


EXHIBIT NO.						DESCRIPTION

10.1						Executive Employment Agreement, dated September 7, 2022, by and between Altice USA, Inc. and Dennis Mathew.
10.2						Transition Agreement, dated September 6, 2022, between Altice USA, Inc. and Dexter Goei.
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 September 30, 2022 filed with the Securities and Exchange Commission on November 2, 2022 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.