Optimum Communications, Inc 10-Q for FY2022 Q1

Optimum Communications, Inc. (OPTU)

10-Q 2022-04-28 For: 2022-03-31

Added on April 12, 2026

About this 10-Q

Optimum Communications, Inc filed this 10-Q on April 28, 2022, covering the quarter ended March 31, 2022 (FY2022 Q1).

Headline figures

Quarter ended March 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.42B; down 2.3% from $2.48B a year earlier
Net income: $196.55M; down 28.3% from net income of $274.14M a year earlier
Diluted EPS: $0.43; down 25.9% 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 - March 31, 2022 (Unaudited) and December 31, 2021	4
	Consolidated Statements of Operations - Three months ended March 31, 2022 and 2021 (Unaudited)	5
	Consolidated Statements of Comprehensive Income - Three months ended March 31, 2022 and 2021 (Unaudited)	6
	Consolidated Statements of Stockholders' Deficiency - Three months ended March 31, 2022 and 2021 (Unaudited)	7
	Consolidated Statements of Cash Flows - Three months ended March 31, 2022 and 2021 (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, 2022 (Unaudited) and December 31, 2021	9
	Consolidated Statements of Operations - Three months ended March 31, 2022 and 2021 (Unaudited)	10
	Consolidated Statements of Comprehensive Income - Three months ended March 31, 2022 and 2021 (Unaudited)	11
	Consolidated Statements of Member's Deficiency - Three months ended March 31, 2022 and 2021 (Unaudited)	12
	Consolidated Statements of Cash Flows - Three months ended March 31, 2022 and 2021 (Unaudited)	13
	Combined Notes to Consolidated Financial Statements (Unaudited)	14
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		27
Item 3. Quantitative and Qualitative Disclosures About Market Risk		41
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, 2022 (Unaudited)		December 31, 2021
ASSETS
Current Assets:
Cash and cash equivalents	$	195,648	$	195,711
Restricted cash	264		264
Accounts receivable, trade (less allowance for doubtful accounts of $27,945 and $27,931)	383,103		406,952

Prepaid expenses and other current assets ($3,830 and $3,776 due from affiliates)	203,963		186,707




Total current assets	782,978		789,634
Property, plant and equipment, net of accumulated depreciation of $7,362,691 and $7,142,852	6,513,910		6,340,467

Right-of-use operating lease assets	229,792		222,124
Investment securities pledged as collateral	2,011,164		2,161,937

Other assets	129,013		76,653
Amortizable intangibles, net of accumulated amortization of $5,198,304 and $5,051,149	2,055,028		2,202,001
Indefinite-lived cable television franchises	13,216,355		13,216,355
Goodwill	8,205,863		8,205,863
Total assets	$	33,144,103	$	33,215,034
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current Liabilities:
Accounts payable	$	999,501	$	1,023,045
Interest payable	213,641		244,934
Accrued employee related costs	110,777		124,941

Deferred revenue	110,882		94,943
Debt	969,413		917,313
Other current liabilities ($22,872 and $31,810 due to affiliates)	373,166		329,943
Total current liabilities	2,777,380		2,735,119
Other liabilities	155,243		159,082
Deferred tax liability	5,032,641		5,048,129
Liabilities under derivative contracts	90,952		276,933
Right-of-use operating lease liability	243,035		237,226
Long-term debt, net of current maturities	25,471,418		25,629,447
Total liabilities	33,770,669		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, 270,344,035 shares issued and 270,323,826 shares outstanding as of March 31, 2022 and 270,341,685 shares issued and 270,320,798 shares outstanding as of December 31, 2021	2,703		2,703
Class B common stock: $0.01 par value, 1,000,000,000 shares authorized, 490,086,674 issued, 184,330,992 shares outstanding as of March 31, 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	58,527		18,005
Accumulated deficit	(652,285)		(848,836)
	(589,212)		(826,285)
Treasury stock, at cost (20,209 and 20,887 Class A common shares at March 31, 2022 and December 31, 2021, respectively)	—		—
Accumulated other comprehensive income	8,170		6,497
Total Altice USA stockholders' deficiency	(581,042)		(819,788)
Noncontrolling interests	(45,524)		(51,114)
Total stockholders' deficiency	(626,566)		(870,902)
Total liabilities and stockholders' deficiency	$	33,144,103	$	33,215,034


	Three Months Ended March 31,
	2022		2021
Revenue (including revenue from affiliates of $638 and $3,406 respectively) (See Note 13)	$	2,421,897	$	2,478,821
Operating expenses:
Programming and other direct costs (including charges from affiliates of $4,618 and $2,228, respectively) (See Note 13)	828,793		851,864
Other operating expenses (including charges from affiliates of $3,095 and $3,179, respectively) (See Note 13)	641,906		580,433
Restructuring and other expense	3,378		3,209
Depreciation and amortization (including impairments)	435,349		434,857
	1,909,426		1,870,363
Operating income	512,471		608,458
Other income (expense):
Interest expense, net	(303,362)		(316,312)
Gain (loss) on investments	(150,773)		73,453
Gain (loss) on derivative contracts, net	101,074		(53,565)
Gain on interest rate swap contracts, net	123,147		75,653

Other income, net	2,430		2,859
	(227,484)		(217,912)
Income before income taxes	284,987		390,546
Income tax expense	(82,846)		(112,007)
Net income	202,141		278,539
Net income attributable to noncontrolling interests	(5,590)		(4,403)
Net income attributable to Altice USA, Inc. stockholders	$	196,551	$	274,136
Income per share:
Basic income per share	$	0.43	$	0.58
Basic weighted average common shares (in thousands)	453,229		469,233

Diluted income per share	$	0.43	$	0.58
Diluted weighted average common shares (in thousands)	453,229		475,448
Cash dividends declared per common share	$	—	$	—


	Three Months Ended March 31,
	2022		2021
Net income	$	202,141	$	278,539
Other comprehensive income (loss):
Defined benefit pension plans	2,504		8,648
Applicable income taxes	(661)		(2,292)
Defined benefit pension plans, net of income taxes	1,843		6,356



Foreign currency translation adjustment	(170)		619
Applicable income taxes	—		—
Foreign currency translation adjustment, net	(170)		619
Other comprehensive income	1,673		6,975
Comprehensive income	203,814		285,514
Comprehensive income attributable to noncontrolling interests	(5,590)		(4,403)
Comprehensive income attributable to Altice USA, Inc. stockholders	$	198,224	$	281,111


☒			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 22, 2022			454,654,818


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 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



Conversion of Class B to Class A shares	—		—		—		—		—		—		—		—		—
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)



Balance at January 1, 2021	$	2,972	$	1,859	$	—	$	(985,641)	$	(163,866)	$	3,646	$	(1,141,030)	$	(62,109)	$	(1,203,139)
Net income attributable to stockholders	—		—		—		274,136		—		—		274,136		—		274,136
Net income attributable to noncontrolling interests	—		—		—		—		—		—		—		4,403		4,403

Pension liability adjustments, net of income taxes	—		—		—		—		—		6,356		6,356		—		6,356
Foreign currency translation adjustment, net of income taxes	—		—		—		—		—		619		619		—		619
Share-based compensation expense (equity classified)	—		—		—		27,964		—		—		27,964		—		27,964
Redeemable equity vested	—		—		—		20,131		—		—		20,131		—		20,131
Change in redeemable equity	—		—		—		2,528		—		—		2,528		—		2,528
Class A shares acquired through share repurchase program and retired	(152)		—		—		(522,521)		—		—		(522,673)		—		(522,673)
Conversion of Class B to Class A shares	1		(1)		—		—		—		—		—		—		—
Issuance of common shares pursuant to employee long term incentive plan	1		—		—		2,037		6		—		2,044		—		2,044
Other	—		—		—		(4,244)		—		—		(4,244)		4,302		58
Balance at March 31, 2021	$	2,822	$	1,858	$	—	$	(1,185,610)	$	(163,860)	$	10,621	$	(1,334,169)	$	(53,404)	$	(1,387,573)


	Three Months Ended March 31,
	2022		2021
Cash flows from operating activities:
Net income	$	202,141	$	278,539
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including impairments)	435,349		434,857


Loss (gain) on investments	150,773		(73,453)
Loss (gain) on derivative contracts, net	(101,074)		53,565

Amortization of deferred financing costs and discounts (premiums) on indebtedness	20,342		23,039

Share-based compensation expense	40,532		28,281
Deferred income taxes	(16,149)		29,165
Decrease in right-of-use assets	10,955		10,816
Provision for doubtful accounts	14,737		11,133
Other	(287)		1,074
Change in assets and liabilities, net of effects of acquisitions and dispositions:
Accounts receivable, trade	9,112		55,293
Prepaid expenses and other assets	(19,462)		(26,321)
Amounts due from and due to affiliates	(8,992)		4,627
Accounts payable and accrued liabilities	(13,477)		(29,696)
Deferred revenue	14,613		38,501
Liabilities related to interest rate swap contracts	(138,894)		(89,798)
Net cash provided by operating activities	600,219		749,622
Cash flows from investing activities:
Capital expenditures	(392,371)		(212,791)





Other, net	888		2,143
Net cash used in investing activities	(391,483)		(210,648)
Cash flows from financing activities:
Proceeds from long-term debt	150,000		150,000
Repayment of long-term debt	(329,688)		(225,863)


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	(28,941)		(18,330)
Purchase of shares of Altice USA Class A common stock, pursuant to a share repurchase program	—		(503,645)






Other	—		393
Net cash used in financing activities	(208,629)		(597,445)
Net increase (decrease) in cash and cash equivalents	107		(58,471)
Effect of exchange rate changes on cash and cash equivalents	(170)		620
Net decrease in cash and cash equivalents	(63)		(57,851)
Cash, cash equivalents and restricted cash at beginning of year	195,975		278,686
Cash, cash equivalents and restricted cash at end of period	$	195,912	$	220,835


CSC HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands)
	March 31, 2022 (Unaudited)		December 31, 2021
ASSETS
Current Assets:
Cash and cash equivalents	$	193,850	$	193,154
Restricted cash	264		264
Accounts receivable, trade (less allowance for doubtful accounts of $27,945 and $27,931)	383,103		406,952

Prepaid expenses and other current assets ($3,830 and $3,776 due from affiliates)	203,205		186,707




Total current assets	780,422		787,077
Property, plant and equipment, net of accumulated depreciation of $7,362,691 and $7,142,852	6,513,910		6,340,467

Right-of-use operating lease assets	229,792		222,124
Investment securities pledged as collateral	2,011,164		2,161,937

Other assets	129,013		76,653
Amortizable intangibles, net of accumulated amortization of $5,198,304 and $5,051,149	2,055,028		2,202,001
Indefinite-lived cable television franchises	13,216,355		13,216,355
Goodwill	8,205,863		8,205,863
Total assets	$	33,141,547	$	33,212,477


LIABILITIES AND MEMBER'S DEFICIENCY
Current Liabilities:
Accounts payable	$	999,501	$	1,023,045
Interest payable	213,641		244,934
Accrued employee related costs	110,777		124,941

Deferred revenue	110,882		94,943
Debt	969,413		917,313
Other current liabilities ($22,872 and $31,810 due to affiliates)	373,166		329,944
Total current liabilities	2,777,380		2,735,120

Other liabilities	155,243		159,082
Deferred tax liability	5,051,955		5,067,442
Liabilities under derivative contracts	90,952		276,933
Right-of-use operating lease liability	243,035		237,226
Long-term debt, net of current maturities	25,471,418		25,629,447
Total liabilities	33,789,983		34,105,250
Commitments and contingencies (Note 14)


Member's deficiency (100 membership units issued and outstanding)	(611,082)		(848,156)
Accumulated other comprehensive income	8,170		6,497
Total member's deficiency	(602,912)		(841,659)
Noncontrolling interest	(45,524)		(51,114)
Total deficiency	(648,436)		(892,773)
Total liabilities and member's deficiency	$	33,141,547	$	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




Other	11		—		11		—		11
Balance at March 31, 2022	$	(611,082)	$	8,170	$	(602,912)	$	(45,524)	$	(648,436)




Balance at January 1, 2021	$	(1,172,505)	$	3,646	$	(1,168,859)	$	(62,109)	$	(1,230,968)
Net income attributable to CSC Holdings' sole member	274,136		—		274,136		—		274,136
Net income attributable to noncontrolling interests	—		—		—		4,403		4,403

Pension liability adjustments, net of income taxes	—		6,356		6,356		—		6,356
Foreign currency translation adjustment, net of income taxes	—		619		619		—		619
Share-based compensation expense (equity classified)	27,964		—		27,964		—		27,964
Redeemable equity vested	20,131		—		20,131		—		20,131
Change in redeemable equity	2,528		—		2,528		—		2,528
Cash distributions to parent	(501,000)		—		(501,000)		—		(501,000)
Non-cash distributions to parent	(748)		—		(748)		—		(748)
Other	(4,056)		—		(4,056)		4,302		246
Balance at March 31, 2021	$	(1,353,550)	$	10,621	$	(1,342,929)	$	(53,404)	$	(1,396,333)


	Three Months Ended March 31,
	2022		2021
Broadband	$	985,517	$	970,571
Video	841,887		905,834
Telephony	85,234		106,981
Residential revenue	1,912,638		1,983,386
Business services and wholesale revenue	367,522		367,216
News and advertising	114,675		105,070
Mobile	24,035		19,235
Other	3,027		3,914
Total revenue	$	2,421,897	$	2,478,821


	As of March 31, 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	$	6,113,669	$	(4,142,528)	$	1,971,141	$	6,113,669	$	(4,020,282)	$	2,093,387	3 to 18 years
Trade names	1,081,083		(1,012,129)		68,954		1,081,083		(988,563)		92,520		2 to 10 years
Other amortizable intangibles	58,580		(43,647)		14,933		58,398		(42,304)		16,094		1 to 15 years
	$	7,253,332	$	(5,198,304)	$	2,055,028	$	7,253,150	$	(5,051,149)	$	2,202,001


		Interest Rate			March 31, 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	$	639,996	$	649,024	$	635,310
May 23, 2014	June 1, 2024	5.250	%		750,000		714,781		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		1,044,622		1,045,882		1,044,582
July 10 and October 7, 2019	January 15, 2030	5.750	%		2,250,000		2,282,054		2,250,000		2,282,875
June 16 and August 17, 2020	December 1, 2030	4.625	%		2,325,000		2,365,965		2,325,000		2,366,886
May 13, 2021	November 15, 2031	5.000	%		500,000		498,269		500,000		498,234
					7,524,024		7,549,800		7,524,024		7,543,137
CSC Holdings Senior Guaranteed Notes:
September 23, 2016	April 15, 2027	5.500	%		1,310,000		1,306,649		1,310,000		1,306,508
January 29, 2018	February 1, 2028	5.375	%		1,000,000		994,459		1,000,000		994,262
January 24, 2019	February 1, 2029	6.500	%		1,750,000		1,747,579		1,750,000		1,747,511
June 16, 2020	December 1, 2030	4.125	%		1,100,000		1,095,770		1,100,000		1,095,672
August 17, 2020	February 15, 2031	3.375	%		1,000,000		997,040		1,000,000		996,970
May 13, 2021	November 15, 2031	4.500	%		1,500,000		1,494,815		1,500,000		1,494,710
					7,660,000		7,636,312		7,660,000		7,635,633
CSC Holdings Restricted Group Credit Facility:
Revolving Credit Facility	January 31, 2024 (c)	2.647	%	(b)	740,000		734,574		900,000		893,864
Term Loan B	July 17, 2025	2.647	%		2,857,500		2,849,508		2,865,000		2,856,421
Incremental Term Loan B-3	January 15, 2026	2.647	%		1,236,750		1,233,418		1,239,938		1,236,394

Incremental Term Loan B-5	April 15, 2027	2.897	%		2,940,000		2,923,069		2,947,500		2,929,813
					7,774,250		7,740,569		7,952,438		7,916,492
Lightpath Senior Notes:
September 29, 2020	September 15, 2028	5.625	%		415,000		407,342		415,000		407,104
Lightpath Senior Secured Notes:
September 29, 2020	September 15, 2027	3.875	%		450,000		442,057		450,000		441,739
Lightpath Term Loan	November 30, 2027	3.750	%		592,500		578,195		594,000		579,119
Lightpath Revolving Credit Facility	November 30, 2025	(d)			—		—		—		—
					1,457,500		1,427,594		1,459,000		1,427,962
Collateralized indebtedness (see Note 9)					1,759,017		1,716,600		1,759,017		1,706,997
Finance lease obligations					237,082		237,082		218,735		218,735
Notes payable and supply chain financing (e)					132,874		132,874		97,804		97,804
					26,544,747		26,440,831		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)		(639,996)		(649,024)		(635,310)


2022	$	810,706
2023	1,867,882
2024	1,568,889
2025	2,823,750
2026	1,224,938
Thereafter	18,011,500


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

Asset Derivatives:
Interest rate swap contracts	Prepaid expenses and other current assets	$	—	$	2,993

Interest rate swap contracts	Other asset, long-term	53,539		—

		53,539		2,993
Liability Derivatives:

Interest rate swap contracts	Other current liabilities	—		(3,441)
Prepaid forward contracts	Liabilities under derivative contracts, long-term	(60,868)		(161,942)
Interest rate swap contracts	Liabilities under derivative contracts, long-term	(30,084)		(114,991)
		$	(90,952)	$	(280,374)


	Fair Value Hierarchy	March 31, 2022		December 31, 2021
Assets:
Money market funds	Level I	$	131,259	$	100,015
Investment securities pledged as collateral	Level I	2,011,164		2,161,937
Prepaid forward contracts	Level II	—		—
Interest rate swap contracts	Level II	53,539		2,993
Liabilities:
Prepaid forward contracts	Level II	60,868		161,942
Interest rate swap contracts	Level II	30,084		118,432


	Share-Based Compensation				Unrecognized Compensation Cost As of March 31, 2022
	Three Months Ended March 31,
	2022		2021
Awards issued pursuant to LTIP:
Stock Option Awards	$	22,497	$	24,223	$	130,916
Performance Stock Units	2,026		2,982		40,931
Restricted Share Units	16,009		317		93,723
Other awards	—		759		—
	$	40,532	$	28,281	$	265,570


	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	1,284,633	14.01

Forfeited	(927,472)	22.63
Balance at March 31, 2022 (b)	51,355,977	$	22.30	7.96	276
Options exercisable at March 31, 2022	19,713,832	$	24.23	6.36	$	—


Risk-free interest rate			1.93%
Expected life (in years)			6.16
Dividend yield			—%
Volatility			37.09%


			Number of PSUs
Balance at December 31, 2021			6,361,894
Forfeited			(163,621)
Balance at March 31, 2022			6,198,273


			Number of Units
Balance at December 31, 2021			6,617,837
Granted			416,484
Forfeited			(158,111)
Balance at March 31, 2022 (a)			6,876,210



	March 31, 2022		December 31, 2021


Due from:
Altice Europe	$	295	$	241
Other affiliates and related parties	3,535		3,535
	$	3,830	$	3,776
Due to:
Altice Europe	$	21,524	$	30,604
Other affiliates and related parties	1,348		1,206
	$	22,872	$	31,810


	Three Months Ended March 31,				Favorable (Unfavorable)
	2022		2021
Revenue:
Broadband	$	985,517	$	970,571	$	14,946
Video	841,887		905,834		(63,947)
Telephony	85,234		106,981		(21,747)
Residential revenue	1,912,638		1,983,386		(70,748)


Business services and wholesale revenue	367,522		367,216		306
News and advertising	114,675		105,070		9,605
Mobile	24,035		19,235		4,800
Other	3,027		3,914		(887)
Total revenue	2,421,897		2,478,821		(56,924)
Operating expenses:
Programming and other direct costs	828,793		851,864		23,071
Other operating expenses	641,906		580,433		(61,473)
Restructuring and other expense	3,378		3,209		(169)
Depreciation and amortization (including impairments)	435,349		434,857		(492)
Operating income	512,471		608,458		(95,987)
Other income (expense):
Interest expense, net	(303,362)		(316,312)		12,950
Gain (loss) on investments	(150,773)		73,453		(224,226)
Gain (loss) on derivative contracts, net	101,074		(53,565)		154,639
Gain on interest rate swap contracts, net	123,147		75,653		47,494

Other income, net	2,430		2,859		(429)
Income before income taxes	284,987		390,546		(105,559)
Income tax expense	(82,846)		(112,007)		29,161
Net income	202,141		278,539		(76,398)
Net income attributable to noncontrolling interests	(5,590)		(4,403)		(1,187)
Net income attributable to Altice USA, Inc. stockholders	$	196,551	$	274,136	$	(77,585)


	March 31,			December 31,			March 31,
	2022			2021			2021
	(in thousands)
Total passings (a)	9,304.9			9,263.3			9,067.6
Total customer relationships (b)(c)	4,995.0			5,014.7			5,023.2
Residential	4,612.1			4,632.8			4,647.4
SMB	382.9			381.9			375.8
Residential customers:
Broadband	4,373.2			4,386.2			4,370.8
Video	2,658.7			2,732.3			2,906.6
Telephony	1,951.5			2,005.2			2,161.2
Penetration of total passings (d)	53.7		%	54.1		%	55.4		%
ARPU (e)	$	137.92		$	137.79		$	142.24

FTTH total passings (f)	1,316.6			1,171.0			921.4
FTTH customer relationships (g)(h)	81.0			69.7			35.9
FTTH Residential	80.4			69.3			35.9
FTTH SMB	0.6			0.3			—
Penetration of FTTH total passings (i)	6.1		%	5.9		%	3.9		%


Decrease in programming costs primarily due to lower video customers, partially offset by net contractual rate increases	$	(15,307)
Decrease in franchise fee costs due to lower video customers	(3,601)


Other net decreases	(4,163)
	$	(23,071)


Net increase in labor costs and benefits, partially offset by an increase in capitalizable activity	$	21,561
Increase in repairs and maintenance costs	13,262
Increase in share-based compensation costs	12,251
Increase in marketing costs	9,994
Other net increases	4,405
	$	61,473


Decrease due primarily to changes in average debt balances	$	(11,241)
Higher interest income	(25)
Other net decreases, primarily amortization of deferred financing costs and original issue discounts	(1,684)
	$	(12,950)


	CSC Holdings Restricted Group		Lightpath		Other Unrestricted Entities		Altice USA/CSC Holdings
Debt outstanding:
Credit facility debt	$	7,740,569	$	578,195	$	—	$	8,318,764
Senior guaranteed notes	7,636,312		—		—		7,636,312
Senior secured notes	—		442,057		—		442,057
Senior notes	7,549,800		407,342		—		7,957,142
Subtotal	22,926,681		1,427,594		—		24,354,275
Finance lease obligations	237,082		—		—		237,082
Notes payable and supply chain financing	132,874		—		—		132,874
Subtotal	23,296,637		1,427,594		—		24,724,231
Collateralized indebtedness relating to stock monetizations (a)	—		—		1,716,600		1,716,600
Total debt	$	23,296,637	$	1,427,594	$	1,716,600	$	26,440,831
Interest expense:
Credit facility debt, senior notes, finance leases, notes payable and supply chain financing	$	267,217	$	17,039	$	—	$	284,256
Collateralized indebtedness relating to stock monetizations (a)	—		—		19,158		19,158
Total interest expense	$	267,217	$	17,039	$	19,158	$	303,414


	CSC Holdings Restricted Group		Lightpath		Other Unrestricted Entities (a)		Altice USA/ CSC Holdings
2022	$	1,584,583	$	41,205	$	25,345	$	1,651,133
2023	1,138,150		69,358		1,776,378		2,983,886
2024	2,552,009		68,038		—		2,620,047
2025	3,752,077		68,596		—		3,820,673
2026	2,064,347		66,532		—		2,130,879
Thereafter	18,822,805		1,503,803		—		20,326,608
Total	$	29,913,971	$	1,817,532	$	1,801,723	$	33,533,226


Fair Value of Equity Derivative Contracts
Fair value as of December 31, 2021, net liability position	$	(161,942)
Change in fair value, net	101,074
Fair value as of March 31, 2022, net liability position	$	(60,868)


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

42,955,236	2023	$40.95	$49.55


EXHIBIT NO.						DESCRIPTION

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, 2022 filed with the Securities and Exchange Commission on April 28, 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.