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1/16/2018 | 12:05:27 AM
Excellent Post
Excellent post. Way of presentation is superb. I liked it a lot. Thanks for sharing this valuable post. 
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1/12/2018 | 3:10:22 PM
ATS serves all accounts and services, not just commercial. 
1/12/2018 | 12:30:48 PM
Re: Spinhole

Well, according to the S-1 filed Altice USA loses money from operations right now.  The weird thing is they come up with this thing called "Adjusted EBITDA" and define it.

Here is the thing:  Much of the stuff they take out of the Adjusted EBITDA has nothing to do with EBITDA.  For example, 2 of the biggest line items in the calculation are the adding back of about $3.3B in Depreciation, Amortization and Interest.  But EBDITA should exclude all of this stuff anyway.

So, the way I read this is that they have this really complex way of trying to make themselves look good.  They go straight to a terrible bottom line and then say "well let's go back to EBITDA and it all looks wonderful."  Without a balance sheet and a cash flow statement, the whole thing is a bit iffy.

Note as well, they plan on sending a boatload of the cash to the European sub.  I would have to some work pre and post transaction, but I have no idea what the balance sheet looks like post-transaction.  I wouldn't touch it until I did.

Just my quick read.


1/12/2018 | 10:22:01 AM
Re: Spinhole
Cablevision (aka Optimum) -- a pretty big player in the Northeast -- was the bigger play in the Altice "strategy." Even smallish cable operators generate profits -- which may be a 20th century metric. But apparently those profits are not enough to cover the debt burden created by the strategy.
Gabriel Brown
Gabriel Brown
1/12/2018 | 10:14:59 AM
Re: Spinhole
Even so, a French challenger operator acquiring a subscale MSO in Mid West America seems a stretch. It seems the intent was part financial engineering, and part to get a toe-hold in the U.S. The second part, at least, doesn't appear to be working that well.
1/12/2018 | 10:06:30 AM
Re: Spinhole
Growth through acquistion, as we know, is a common "strategy" for business success. The trick to making it work is to keep at least a half-step ahead of the debt that builds up in pursuit of this strategy. But if that debt catches up, the strategy falls apart.
Gabriel Brown
Gabriel Brown
1/12/2018 | 9:54:54 AM
Re: Spinhole
The thing that confuses me most -- and I'm not that close to this topic -- is why did Altice buy a US cable operator in the first place
1/12/2018 | 9:30:53 AM
Happy talk aside -- though hats must be tipped for the "focus on delivering best-in-class returns" comment -- this sounds like a mess.

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