Altice usa reports first quarter 2023 results
New york--(business wire)--altice usa (nyse: atus) today reports results for the first quarter ended march 31, 2023. dennis mathew, altice usa chief executive officer, said: "altice usa’s first quarter results reflect a continuation of the strategy we introduced in february centered on growing our broadband and mobile businesses to set a path to return to sustainable customer, revenue, and cash flow growth. the company made significant progress in driving key initiatives to increase the reliability and performance of our networks and enhance our products and customer experience, which contributed to an exceptional quarter in terms of broadband network construction as well as the best ever fiber net additions. as we move through 2023, we will continue to build on our go-to-market strategies to provide customers with seamless connections, flexibility and simplicity as evidenced by this week’s introduction of optimum complete, which combines our powerful internet and mobile products into one bundle to deliver the full portfolio of optimum connectivity solutions at a great value. we have a relentless focus on providing the best customer experience through the most advanced networks, and we are optimistic that we will be able to leverage our investments to grow our business and become the connectivity provider of choice across all the communities we serve." key financial highlights total revenue declined -5.3% yoy in q1 2023 to $2.29 billion, including residential revenue decline of -5.6% yoy, business services revenue decline of -1.1% yoy and news & advertising revenue decline of -13.9% yoy. net income attributable to stockholders was $25.9 million in q1 2023 ($0.06/share on a diluted basis) compared to $196.6 million in q1 2022 ($0.43/share on a diluted basis). net cash flows from operating activities were $416.8 million in q1 2023, compared to $600.2 million in q1 2022. adjusted ebitda(1) declined -12.4% yoy in q1 2023 to $868.4 million, with a margin of 37.9%. cash capital expenditures of $582.9 million in q1 2023 represented 25.4% of revenue and were up 48.6% yoy mainly driven by accelerated fiber-to-the-home (ftth) rollout and new builds (14.1% of revenue excluding ftth and new builds). fy 2023 guidance for cash capex of approximately $1.7 billion to $1.8 billion reiterated. operating free cash flow(1) decreased -52.4% yoy to $285.5 million in q1 2023. free cash flow(1) was ($166.1) million in q1 2023. q1-23 summary financials three months ended march 31, (in thousands) 2023 2022 revenue $2,293,978 $2,421,897 net income attributable to altice usa, inc. stockholders 25,865 196,551 adjusted ebitda(1) 868,391 991,730 capital expenditures (cash) 582,897 392,371 revenue growth and adjusted ebitda detail q1-23 total revenue yoy (5.3)% residential revenue yoy (5.6)% business services revenue yoy (1.1)% excluding sprint early termination revenue (0.2)% news & advertising revenue yoy (13.9)% excluding political revenue (11.0)% adjusted ebitda yoy (12.4)% adjusted ebitda margin 37.9% key operational highlights total unique residential and smb customer relationships(2)(3) declined -2.8% yoy in q1 2023. quarterly unique customer net losses were -26k in q1 2023, compared to -20k in q1 2022. total broadband primary service units (psus): quarterly broadband net losses were -19k in q1 2023, compared to -12k broadband net losses in q1 2022. total fiber broadband psus: quarterly fiber (ftth) broadband net additions were +38k in q1 2023, our best quarter for fiber net adds and more than three times the growth compared to q1 2022 (+11k). fiber broadband net adds were driven by both higher fiber gross additions and increased migrations of existing customers. total fiber broadband customers reached 210k as of the end of q1 2023. total broadband primary service units (psus): quarterly broadband net losses were -19k in q1 2023, compared to -12k broadband net losses in q1 2022. total fiber broadband psus: quarterly fiber (ftth) broadband net additions were +38k in q1 2023, our best quarter for fiber net adds and more than three times the growth compared to q1 2022 (+11k). fiber broadband net adds were driven by both higher fiber gross additions and increased migrations of existing customers. total fiber broadband customers reached 210k as of the end of q1 2023. optimum mobile has approximately 248k mobile lines(5) as of march 31, 2023, adding +8k mobile net additions in q1 2023 (+15k net additions excluding customers receiving free service), reaching 5.4% penetration of the company's total broadband customer base. residential revenue declined -5.6% yoy in q1 2023 to $1.81 billion. residential revenue per customer relationship declined -2.7% yoy in q1 2023 to $134.16, mostly due to the loss of higher arpu video customers. residential revenue per customer relationship declined -2.7% yoy in q1 2023 to $134.16, mostly due to the loss of higher arpu video customers. business services revenue of $363.5 million was down -1.1% yoy in q1 2023. smb / other revenue was down -0.8% yoy in q1 2023. lightpath revenue was down -1.9% yoy in q1 2023. lightpath revenue decline is driven by sprint early termination revenue in the prior period of approximately $3.2 million; excluding this early termination revenue lightpath revenue would have grown +1.4% in q1 2023. news and advertising revenue was down -13.9% yoy to $98.7 million in q1 2023, or down -11.0% excluding political revenue. customer metrics (in thousands, except per customer amounts) fy-21(4) q1-22 q2-22 q3-22 q4-22 fy-22 q1-23 total passings(6) 9,263.3 9,304.9 9,363.1 9,414.9 9,463.8 9,463.8 9,512.2 total passings additions 140.7 41.6 58.2 51.8 48.8 200.5 48.4 total customer relationships: residential 4,632.8 4,612.1 4,564.2 4,514.7 4,498.5 4,498.5 4,472.4 smb 381.9 382.9 383.1 382.5 381.2 381.2 380.9 total unique customer relationships(2)(3) 5,014.7 4,995.0 4,947.3 4,897.2 4,879.7 4,879.7 4,853.3 residential net additions (losses) (50.8) (20.7) (47.9) (49.5) (16.2) (134.3) (26.1) business services net additions (losses) 3.6 1.0 0.2 (0.6) (1.3) (0.7) (0.3) total customer net additions (losses) (47.2) (19.8) (47.7) (50.1) (17.5) (135.0) (26.4) residential psus: broadband 4,386.2 4,373.2 4,333.6 4,290.6 4,282.9 4,282.9 4,263.7 video 2,732.3 2,658.7 2,574.2 2,491.8 2,439.0 2,439.0 2,380.5 telephony 2,005.2 1,951.5 1,886.9 1,818.9 1,764.1 1,764.1 1,703.5 broadband net additions (losses) (3.3) (13.0) (39.6) (43.0) (7.7) (103.3) (19.2) video net additions (losses) (241.0) (73.6) (84.5) (82.4) (52.8) (293.2) (58.6) telephony net additions (losses) (211.0) (53.7) (64.7) (68.0) (54.8) (241.1) (60.6) residential arpu ($)(7) 141.08 137.92 140.13 138.12 134.76 137.70 134.16 smb psus: broadband 349.3 350.4 350.7 350.2 349.1 349.1 349.0 video 104.3 102.6 101.0 99.1 97.3 97.3 95.3 telephony 218.8 216.8 215.3 214.0 212.3 212.3 210.0 broadband net additions (losses) 4.5 1.1 0.3 (0.5) (1.1) (0.2) (0.1) video net additions (losses) (7.1) (1.6) (1.6) (1.9) (1.8) (6.9) (2.0) telephony net additions (losses) (4.4) (2.0) (1.6) (1.3) (1.7) (6.5) (2.3) total mobile lines: mobile ending lines 186.4 198.3 231.3 236.1 240.3 240.3 247.9 mobile ending lines excluding free service(5) 186.4 190.0 195.5 202.7 208.7 208.7 223.3 mobile line net additions 17.3 11.9 33.0 4.8 4.1 53.8 7.6 mobile line net additions ex-free service(5) 17.3 3.6 5.5 7.2 6.0 22.3 14.6 fiber (ftth) customer metrics (in thousands) fy-21 q1-22 q2-22 q3-22 q4-22 fy-22 q1-23 ftth total passings(8) 1,171.0 1,316.6 1,587.1 1,908.2 2,158.7 2,158.7 2,373.0 ftth total passing additions 270.9 145.7 270.4 321.2 250.5 987.8 214.2 ftth residential 69.3 80.4 103.7 134.2 170.0 170.0 207.2 ftth smb 0.3 0.6 0.7 1.2 1.7 1.7 2.7 ftth total customer relationships(9) 69.7 81.0 104.4 135.3 171.7 171.7 209.9 ftth residential net additions 43.3 11.1 23.3 30.5 35.8 100.7 37.2 ftth smb net additions 0.3 0.2 0.2 0.4 0.6 1.4 0.9 ftth total customer net additions 43.6 11.3 23.5 30.9 36.4 102.1 38.1 fiber rollout, multi-gig fiber internet and network expansion update fiber (ftth) rollout update: as of q1 2023, the company has 2.37 million ftth passings, adding +214k new ftth passings in the quarter. continued rollout of optimum 5 gig and 2 gig fiber internet service, planned 2023 launch of 8 gig service. in the last year the company introduced both optimum 5 gbps (5 gig) and 2 gbps (2 gig) fiber internet, with symmetrical data speeds up to 5 gig and 2 gig respectively in certain portions of its footprint. at the end of q1 2023, 65% of the company’s fiber passings in the east footprint had multi-gig speeds available to them (1 gig symmetric speeds are available to 100% of the company's entire fiber footprint). the company is planning to launch symmetric 8 gig optimum fiber internet service in the second half of 2023 everywhere multi-gig fiber is available (targeting 100% of east fiber footprint in 2h-23). 1 gbps (1 gig) broadband or higher speed sell-in to all new customers, where 1 gig or higher services are available, was 36% in q1 2023. approximately 21% of the residential broadband customer base currently take 1 gig or higher speeds, representing a significant growth opportunity for the company. broadband speeds taken on average have nearly doubled in the past three years to 412 mbps in q1 2023. approximately 37% of broadband customers remain on plans with download speeds of 200 mbps or less, representing a sizable opportunity to continue to upgrade speeds. broadband-only customer usage averaged 625 gb per month in q1 2023, which is 25% higher than the average usage of the entire customer base (500 gb per month). new build activity update: the company has been accelerating the pace of its network edge-outs, adding +48k passings in q1 2023. this is about one third of the targeted new build network extensions for fy 2023; the company remains on track to reach 150k+ passings for the full year. the company continues to see strong momentum in growing customer penetration, typically reaching approximately 40% within a year of rollout in new-build areas. fy 2023 capex guidance reiterated the company expects to continue to focus its investments in key growth initiatives including the ftth rollout and new build expansion, with anticipated cash capex of approximately $1.7 billion to $1.8 billion in fy 2023. balance sheet review as of march 31, 2023 net debt for csc holdings, llc restricted group was $23,072 million at the end of q1 2023(10), representing net leverage of 6.6x adjusted ebitda on a last twelve month (ltm) basis. the weighted average cost of debt for csc holdings, llc restricted group was 5.8% as of the end of q1 2023 and the weighted average life was 5.5 years. the company expects to return to a leverage target of 4.5x to 5.0x net debt / adjusted ebitda on a last 2 quarters annualized (l2qa) basis for its csc holdings, llc debt silo over time. net debt for cablevision lightpath llc was $1,389 million at the end of q1 2023(10), representing net leverage of 6.1x ltm. the weighted average cost of debt for cablevision lightpath llc was 5.5% as of the end of q1 2023 and the weighted average life was 4.8 years. consolidated net debt for altice usa was $24,436 million(10), representing consolidated net leverage of 6.5x ltm. successful pricing of new senior guaranteed notes in april 2023, csc holdings issued $1.0 billion in aggregate principal amount of senior guaranteed notes that bear interest at a rate of 11.250% and mature on may 15, 2028. the proceeds will be used for general corporate purposes, which may include the opportunistic refinancing of certain existing indebtedness, and to finance capital expenditures. following closing of the notes offering, the company used the proceeds to temporarily repay outstanding borrowings drawn under the revolving credit facility. shares outstanding as of march 31, 2023, the company had 454,668,624 combined class a and class b shares outstanding. altice usa consolidated operating results (in thousands, except per share data) (unaudited) three months ended march 31, 2023 2022 revenue: broadband $ 957,045 $ 985,517 video 770,601 841,887 telephony 77,681 85,234 residential revenue 1,805,327 1,912,638 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 operating expenses: programming and other direct costs 771,719 828,793 other operating expenses 651,245 641,906 restructuring expense and other operating items 29,672 3,378 depreciation and amortization (including impairments) 416,212 435,349 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 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 stockholders $ 25,865 $ 196,551 basic net income per share $ 0.06 $ 0.43 diluted net income per share $ 0.06 $ 0.43 basic weighted average common shares 454,686 453,229 diluted weighted average common shares 455,594 453,229 altice usa consolidated statements of cash flows (in thousands) (unaudited) march 31, 2023 2022 cash flows from operating activities: net income $ 31,170 $ 202,141 adjustments to reconcile net income to net cash provided by operating activities: depreciation and amortization (including impairments) 416,212 435,349 loss (gain) on investments (192,010 ) 150,773 loss (gain) on derivative contracts, net 166,489 (101,074 ) gain on extinguishment of debt and write-off of deferred financing costs (4,393 ) — amortization of deferred financing costs and discounts (premiums) on indebtedness 10,719 20,342 share-based compensation expense (2,623 ) 40,532 deferred income taxes (57,248 ) (16,149 ) decrease in right-of-use assets 11,324 10,955 provision for doubtful accounts 20,259 14,737 other 316 (287 ) change in operating assets and liabilities, net of effects of acquisitions and dispositions: accounts receivable, trade 26,364 9,112 prepaid expenses and other assets (45,931 ) (19,462 ) amounts due from and due to affiliates 10,084 (8,992 ) accounts payable and accrued liabilities (20,577 ) (13,477 ) deferred revenue 13,833 14,613 interest rate swap contracts 32,858 (138,894 ) net cash provided by operating activities 416,846 600,219 cash flows from investing activities: capital expenditures (582,897 ) (392,371 ) other, net (198 ) 888 net cash used in investing activities (583,095 ) (391,483 ) cash flows from financing activities: proceeds from long-term debt 350,000 150,000 repayment of debt (268,936 ) (329,688 ) proceeds from derivative contracts in connection with the settlement of collateralized debt 38,902 — principal payments on finance lease obligations (37,861 ) (28,941 ) other, net (700 ) — net cash provided by (used in) financing activities 81,405 (208,629 ) net increase (decrease) in cash and cash equivalents (84,844 ) 107 effect of exchange rate changes on cash and cash equivalents (190 ) (170 ) net decrease in cash and cash equivalents (85,034 ) (63 ) cash, cash equivalents and restricted cash at beginning of year 305,751 195,975 cash, cash equivalents and restricted cash at end of period $ 220,717 $ 195,912 reconciliation of 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, gain (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, net, depreciation and amortization, share-based compensation, restructuring expense and other operating items (such as significant legal settlements, contractual payments for terminated employees, and impairments). adjusted ebitda eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our business and from intangible assets recognized from acquisitions, as well as certain non-cash and other operating items that affect the period-to-period comparability of our operating performance. in addition, adjusted ebitda is unaffected by our capital and tax structures and by our investment activities. 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 two 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. reconciliation of net income to adjusted ebitda and operating free cash flow (unaudited): (in thousands) 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 ) loss (gain) on interest rate swap contracts, net 14,429 (123,147 ) loss (gain) on derivative contracts, net 166,489 (101,074 ) loss (gain) on investments (192,010 ) 150,773 gain on extinguishment of debt and write-off of deferred financing costs (4,393 ) — interest expense, net 389,278 303,362 depreciation and amortization (including impairments) 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 reconciliation of net cash flow from operating activities to free cash flow (unaudited): net cash flows from operating activities $ 416,846 $ 600,219 capital expenditures (cash) 582,897 392,371 free cash flow (deficit) $ (166,051 ) $ 207,848 consolidated net debt as of march 31, 2023 csc holdings, llc restricted group (in $m) principal amount coupon / margin maturity drawn rcf $1,700 s+2.350% 2025(11) term loan 1,532 l+2.250% 2025 term loan b-3 526 l+2.250% 2026 term loan b-5 2,910 l+2.500% 2027 term loan b-6 2,002 s+4.500% 2028(12) guaranteed notes 1,310 5.500% 2027 guaranteed notes 1,000 5.375% 2028 guaranteed notes 1,750 6.500% 2029 guaranteed notes 1,100 4.125% 2030 guaranteed notes 1,000 3.375% 2031 guaranteed notes 1,500 4.500% 2031 senior notes 750 5.250% 2024 senior notes 1,046 7.500% 2028 legacy unexchanged cequel notes 4 7.500% 2028 senior notes 2,250 5.750% 2030 senior notes 2,325 4.625% 2030 senior notes 500 5.000% 2031 csc holdings, llc restricted group gross debt 23,205 csc holdings, llc restricted group cash (132) csc holdings, llc restricted group net debt $23,072 csc holdings, llc restricted group undrawn rcf $644 cablevision lightpath llc (in $m) principal amount coupon / margin maturity drawn rcf $— l+3.250% 2025 term loan 587 l+3.250% 2027 senior secured notes 450 3.875% 2027 senior notes 415 5.625% 2028 cablevision lightpath gross debt 1,452 cablevision lightpath cash (63) cablevision lightpath net debt $1,389 cablevision lightpath undrawn rcf $100 net leverage schedules as of march 31, 2023 (in $m) csc holdings restricted group(13) cablevision lightpath llc csc holdings consolidated(14) altice usa consolidated gross debt consolidated(15) $23,205 $1,452 $24,656 $24,656 cash (132) (63) (220) (220) net debt consolidated $23,072 $1,389 $24,436 $24,436 ltm ebitda $3,509 $228 $3,743 $3,743 l2qa ebitda $3,331 $229 $3,563 $3,563 net leverage (ltm) 6.6x 6.1x 6.5x 6.5x net leverage (l2qa) 6.9x 6.1x 6.9x 6.9x wacd (%) 5.8% 5.5% 5.8% 5.8% reconciliation to financial reported debt actual total debenture and loans from financial institutions (carrying amount) $24,587 unamortized financing costs and discounts, net of unamortized premiums 20 fair value adjustments 49 gross debt consolidated(15) 24,656 finance leases and other notes 410 total debt 25,066 cash (220) net debt $24,846 (1) see “reconciliation of non-gaap financial measures” on page 7 of this release. (2) total unique customer relationships represent the number of households/businesses that receive at least one of the company’s fixed-line services. 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 on our hybrid-fiber-coaxial (hfc) and fiber-to-the-home (ftth) network. 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 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. (3) total customer relationship metrics do not include optimum mobile customers. (4) fy-21 ending customer relationships include morris broadband, llc acquired subscribers. net additions (losses) are organic. (5) reported ending mobile lines in q1-23 of 248k include approximately 23k lines receiving free service. adjusted mobile lines excludes additions relating to mobile lines receiving free service from all periods presented, includes net additions from when customers previously on free service start making payments. (6) total passings represents the estimated number of single residence homes, apartments and condominium units passed by the hfc and ftth network in areas serviceable without further extending the transmission lines. in addition, it includes commercial establishments that have connected to our hfc and ftth network. broadband services were not available to approximately 30 thousand total passings and telephony services were not available to approximately 500 thousand total passings. total passings include approximately 89k total passings acquired in the morris broadband acquisition in q2-21. (7) residential arpu is 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 by the average number of total residential customers for the same period. (8) represents the estimated number of single residence homes, apartments and condominium units passed by the ftth network in areas serviceable without further extending the transmission lines. in addition, it includes commercial establishments that have connected to our ftth network. (9) represents number of households/businesses that receive at least one of the company's fixed-line services on our ftth network. ftth 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 on our ftth network. 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 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. (10) net debt, defined as the principal amount of debt less cash, and excluding finance leases and other notes and collateralized debt. (11) the csc holdings' revolving credit facility is due on the earlier of (i) july 13, 2027 and (ii) april 17, 2025 if, as of such date, any term loan borrowings are still outstanding, unless the term loan maturity date has been extended to a date falling after july 13, 2027. (12) the term loan b-6 that is due on the earlier of (i) january 15, 2028 and (ii) april 15, 2027 if, as of such date, any term loan b-5 are still outstanding, unless the term loan b-5 maturity date has been extended to a date falling after january 15, 2028. (13) csc holdings, llc restricted group excludes the unrestricted subsidiaries, primarily cablevision lightpath llc and ny interconnect, llc. (14) csc holdings consolidated includes the csc holdings, llc restricted group and the unrestricted subsidiaries. (15) principal amount of debt excluding finance leases and other notes and collateralized debt. numerical information is presented on a rounded basis using actual amounts. minor differences in totals and percentage calculations may exist due to rounding. about altice usa altice usa (nyse: atus) is one of the largest broadband communications and video services providers in the united states, delivering broadband, video, mobile, proprietary content and advertising services to approximately 4.9 million residential and business customers across 21 states through its optimum brand. the company operates a4, an advanced advertising and data business, which provides audience-based, multiscreen advertising solutions to local, regional and national businesses and advertising clients. altice usa also offers hyper-local, national, international and business news through its news 12, cheddar news and i24news networks. forward-looking statement certain statements in this earnings release constitute forward-looking statements within the meaning of the private securities litigation reform act of 1995. these forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this earnings release, including, without limitation, those regarding our intentions, beliefs or current expectations concerning, among other things: our future financial conditions and performance, results of operations and liquidity; our strategy, objectives, prospects, service availability targets, customer penetration rates, capital expenditure plans, fiber deployment and network expansion and upgrade plans, and leverage targets; our ability to achieve operational performance improvements; and future developments in the markets in which we participate or are seeking to participate. these forward-looking statements can be identified by the use of forward-looking terminology, including the terms “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “plan”, “project”, “should”, “target”, or “will” or, in each case, their negative, or other variations or comparable terminology. where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. to the extent that statements in this earnings release are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements including risks referred to in our sec filings, including our annual report on form 10-k for the fiscal year ended december 31, 2022 and reports on form 10-q. you are cautioned to not place undue reliance on altice usa’s forward-looking statements. any forward-looking statement speaks only as of the date on which it was made. altice usa specifically disclaims any obligation to publicly update or revise any forward-looking statement, as of any future date.
