Mediacom Communications Senior Vice President of Technology Joe Van Loan:
“I guess part of our philosophy is never be first or last, and certainly with telephony that’s probably a good one. We had a technical trial that we started about a year ago, and it was a good learning experience. Basically we used our CMTSs and integrated MTAs to provide connectivity to a Class 5 switch with a GR-303 interface and a bridge. We learned, one, we can do it and make it work, and, two, for us to take a brick and mortar approach by starting fresh probably doesn’t make sense.”
December 22, 2003 04:22 PM US Eastern Timezone
Mediacom Communications Announces Financial Guidance for 2004; Dramatic Improvement in Free Cash Flow Expected
MIDDLETOWN, N.Y.--(BUSINESS WIRE)--Dec. 22, 2003--MEDIACOM COMMUNICATIONS CORPORATION (Nasdaq:MCCC) today announced financial guidance for 2004.
The Company's specific financial forecasts for 2004 include:
-- Revenues of $1.075 billion to $1.085 billion
-- Operating income before depreciation and amortization of $425 million to $435 million
-- Capital expenditures of $165 million to $175 million
-- Unlevered free cash flow of at least $250 million
-- Interest expense of $194 million to $200 million
-- Free cash flow of at least $50 million
"During 2004--which we project will be our first full fiscal year with positive free cash flow--we expect to grow unlevered free cash flow by over 50% and to generate free cash flow of at least $0.42 per share," said Rocco B. Commisso, Mediacom's Chairman and CEO. "This strong free cash flow performance will be driven by continued growth in operating income before depreciation and amortization and, now that our cable network upgrade program is behind us, a significant decline in capital expenditures."
"To bolster our competitive position in the video business in 2004, we plan to introduce digital video recorders and expand the availability of video-on-demand and high-definition television to our customers," Mr. Commisso continued. "Although we still expect some pressure on basic subscribers next year, our forecast also factors in another record performance from Mediacom Online and solid growth in our advertising business. Lastly, we are on track to launch voice-over-Internet-protocol (VoIP) telephony service in certain markets during the second half of 2004."
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The 2004 guidance also incorporates capital expenditures and operating expenses related to the Company's VoIP telephony launches planned for the second half of 2004.
Company Description
Mediacom Communications is the nation's 8th largest cable television company and the leading cable operator focused on serving the smaller cities and towns in the United States. The Company's cable systems pass approximately 2.74 million homes and serve about 1.55 million basic subscribers in 23 states. Mediacom Communications offers a wide array of broadband products and services, including traditional video services, digital television, high-speed Internet access, video-on-demand and high-definition television. More information about the Company can be accessed on the Internet at: www.mediacomcc.com. |
