##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 
 FORM 10-Q
 
 Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 For the quarterly period ended September 30, 2007
 Commission File Number: 0-29227
 Mediacom Communications Corporation
 (Exact name of Registrant as specified in its charter)
 Delaware
    
    06-1566067(State of incorporation)
    
    (I.R.S. EmployerIdentification Number)
 100 Crystal Run Road
Middletown, NY 10941  (Address of principal executive offices)
 (845) 695-2600  (Registrants telephone number)
  þ o
  o þ o
  o þ




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##### 



MEDIACOM COMMUNICATIONS CORPORATION AND SUBSIDIARIES
 FORM 10-Q
FOR THE PERIOD ENDED SEPTEMBER 30, 2007
 TABLE OF CONTENTS
 PART I
    
    
    
    PageItem 1.
    
    Financial StatementsConsolidated Balance Sheets (unaudited) September 30, 2007 and December 31, 2006
    
    
    4Consolidated Statements of Operations (unaudited) Three and Nine Months Ended September 30, 2007 and 2006
    
    
    5Consolidated Statements of Cash Flows (unaudited) Nine Months Ended September 30, 2007 and 2006
    
    
    6Notes to Consolidated Financial Statements (unaudited)
    
    
    7Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    13Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    
    24Item 4.
    
    Controls and Procedures
    
    
    24PART IIItem 1.
    
    Legal Proceedings
    
    
    25Item 1A.
    
    Risk Factors
    
    
    25Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    25Item 3.
    
    Defaults upon Senior Securities
    
    
    25Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    25Item 5.
    
    Other Information
    
    
    25Item 6.
    
    Exhibits
    
    
    26Exhibit 31.1Exhibit 32.1
   2




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##### Table of Contents



Cautionary Statement Regarding Forward-Looking Statements
  
  3




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##### Table of Contents



PART I
 
 ITEM 1. FINANCIAL STATEMENTS
 
 MEDIACOM COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(All dollar amounts in thousands)
(Unaudited)
 September 30,
    
    
    December 31,2007
    
    
    2006ASSETSCURRENT ASSETSCash
    
    $
    15,463
    
    
    $
    36,385Accounts receivable, net of allowance for doubtful accounts of $2,123 and $2,173
    
    
    80,452
    
    
    
    75,722Prepaid expenses and other current assets
    
    
    19,674
    
    
    
    17,248Deferred tax assets
    
    
    2,415
    
    
    
    2,467Total current assets
    
    
    118,004
    
    
    
    131,822Investment in cable television systems:Property,
plant and equipment, net of accumulated depreciation of $1,574,920 and $1,423,911
    
    
    1,456,008
    
    
    
    1,451,134Franchise rights
    
    
    1,798,188
    
    
    
    1,803,898Goodwill
    
    
    220,647
    
    
    
    221,382Subscriber
lists and other intangible assets, net of accumulated amortization of
$160,615 and $159,848
    
    
    11,128
    
    
    
    11,827Total investment in cable television systems
    
    
    3,485,971
    
    
    
    3,488,241Other assets, net of accumulated amortization of $26,105 and $22,288
    
    
    26,819
    
    
    
    32,287Total assets
    
    $
    3,630,794
    
    
    $
    3,652,350LIABILITIES AND STOCKHOLDERS DEFICITCURRENT LIABILITIESAccounts payable and accrued expenses
    
    $
    254,321
    
    
    $
    275,611Deferred revenue
    
    
    50,341
    
    
    
    46,293Current portion of long-term debt
    
    
    89,599
    
    
    
    75,563Total current liabilities
    
    
    394,261
    
    
    
    397,467Long-term debt, less current portion
    
    
    3,097,125
    
    
    
    3,069,036Deferred tax liabilities
    
    
    302,168
    
    
    
    259,300Other non-current liabilities
    
    
    24,771
    
    
    
    21,361Total liabilities
    
    
    3,818,325
    
    
    
    3,747,164Commitments and contingencies (Note 8)STOCKHOLDERS DEFICITClass A common stock, $.01 par value; 300,000,000 shares authorized; 94,208,103 shares
issued and 78,394,273 shares outstanding and 93,825,218 shares issued and 82,761,606
shares outstanding
    
    
    942
    
    
    
    938Class B common stock, $.01 par value; 100,000,000 shares authorized; 27,001,944 shares
issued
and outstanding and 27,061,237 shares issued and outstanding
    
    
    270
    
    
    
    271Additional paid-in capital
    
    
    996,092
    
    
    
    991,113Accumulated deficit
    
    
    (1,084,370
    )
    
    
    (1,026,113
    )Treasury stock, at cost, 15,813,830 and 11,063,612 shares of Class A common stock
    
    
    (100,465
    )
    
    
    (61,023
    )Total stockholders deficit
    
    
    (187,531
    )
    
    
    (94,814
    )Total liabilities and stockholders deficit
    
    $
    3,630,794
    
    
    $
    3,652,350
 
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##### Table of Contents



MEDIACOM COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except per share data)
(Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Revenues
    
    $
    328,252
    
    
    $
    305,556
    
    
    $
    960,861
    
    
    $
    897,326Costs and expenses:Service costs (exclusive of depreciation
and amortization)
    
    
    137,555
    
    
    
    124,427
    
    
    
    404,060
    
    
    
    364,855Selling, general and administrative expenses
    
    
    68,634
    
    
    
    65,317
    
    
    
    197,149
    
    
    
    184,328Corporate expenses
    
    
    6,654
    
    
    
    6,277
    
    
    
    20,222
    
    
    
    18,158Depreciation and amortization
    
    
    59,970
    
    
    
    53,572
    
    
    
    170,705
    
    
    
    161,473Operating income
    
    
    55,439
    
    
    
    55,963
    
    
    
    168,725
    
    
    
    168,512Interest expense, net
    
    
    (61,185
    )
    
    
    (57,125
    )
    
    
    (180,196
    )
    
    
    (169,667
    )Loss on early extinguishment of debt
    
    
    
    
    
    
    (28,298
    )
    
    
    
    
    
    
    (35,831
    )Loss on derivatives, net
    
    
    (13,791
    )
    
    
    (15,851
    )
    
    
    (8,972
    )
    
    
    (14,528
    )Gain on sale of cable systems
    
    
    545
    
    
    
    
    
    
    
    11,326
    
    
    
    Other expense, net
    
    
    (1,150
    )
    
    
    (2,124
    )
    
    
    (6,054
    )
    
    
    (7,750
    )Loss before income taxes
    
    
    (20,142
    )
    
    
    (47,435
    )
    
    
    (15,171
    )
    
    
    (59,264
    )Provision for income taxes
    
    
    (14,591
    )
    
    
    (42,392
    )
    
    
    (43,086
    )
    
    
    (62,045
    )Net loss
    
    $
    (34,733
    )
    
    $
    (89,827
    )
    
    $
    (58,257
    )
    
    $
    (121,309
    )Basic  weighted average shares outstanding
    
    
    108,013
    
    
    
    109,689
    
    
    
    109,220
    
    
    
    111,366Basic  loss per share
    
    $
    (0.32
    )
    
    $
    (0.82
    )
    
    $
    (0.53
    )
    
    $
    (1.09
    )Diluted  weighted average shares outstanding
    
    
    108,013
    
    
    
    109,689
    
    
    
    109,220
    
    
    
    111,366Diluted  loss per share
    
    $
    (0.32
    )
    
    $
    (0.82
    )
    
    $
    (0.53
    )
    
    $
    (1.09
    )
 
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##### Table of Contents



MEDIACOM COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 Nine Months EndedSeptember 30,2007
    
    
    2006OPERATING ACTIVITIES:Net loss
    
    $
    (58,257
    )
    
    $
    (121,309
    )Adjustments to reconcile net loss to net cash provided by operating activities:Depreciation and amortization
    
    
    170,705
    
    
    
    161,473Loss on derivatives, net
    
    
    8,972
    
    
    
    14,528Gain on sale of cable systems
    
    
    (11,326
    )
    
    
    Loss on early extinguishment of debt
    
    
    
    
    
    
    11,206Amortization of deferred financing costs
    
    
    3,817
    
    
    
    4,718Share-based compensation
    
    
    4,006
    
    
    
    3,280Deferred income taxes
    
    
    42,919
    
    
    
    61,887Changes in assets and liabilities, net of effects from acquisitions:Accounts receivable, net
    
    
    (4,603
    )
    
    
    (7,796
    )Prepaid expenses and other assets
    
    
    (3,905
    )
    
    
    (2,287
    )Accounts payable and accrued expenses
    
    
    (9,900
    )
    
    
    (31,540
    )Deferred revenue
    
    
    4,048
    
    
    
    4,734Other non-current liabilities
    
    
    (2,727
    )
    
    
    (3,087
    )Net cash flows provided by operating activities
    
    $
    143,749
    
    
    $
    95,807INVESTING ACTIVITIES:Capital expenditures
    
    $
    (182,803
    )
    
    $
    (156,652
    )Acquisition of cable system
    
    
    (7,274
    )
    
    
    Proceeds from sales of cable systems
    
    
    32,448
    
    
    
    Net cash flows used in investing activities
    
    $
    (157,629
    )
    
    $
    (156,652
    )FINANCING ACTIVITIES:New borrowings
    
    $
    298,525
    
    
    $
    2,106,000Repayment of debt
    
    
    (256,400
    )
    
    
    (1,442,590
    )Redemption/repayment of senior notes
    
    
    
    
    
    
    (572,500
    )Repurchases of Class A common stock
    
    
    (39,035
    )
    
    
    (34,386
    )Proceeds from issuance of common stock in employee stock purchase plan
    
    
    945
    
    
    
    910Other financing activities  book overdrafts
    
    
    (11,077
    )
    
    
    12,481Financing costs
    
    
    
    
    
    
    (193
    )Net cash flows (used in) provided by financing activities
    
    $
    (7,042
    )
    
    $
    69,722Net (decrease) increase in cash
    
    
    (20,922
    )
    
    
    8,877CASH, beginning of period
    
    
    36,385
    
    
    
    17,281CASH, end of period
    
    $
    15,463
    
    
    $
    26,158SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:Cash paid during the period for interest, net of amounts capitalized
    
    $
    196,623
    
    
    $
    200,689
 
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MEDIACOM COMMUNICATIONS CORPORATION AND SUBSIDIARIES
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 1. STATEMENT OF ACCOUNTING PRESENTATION AND OTHER INFORMATION
 Basis of Preparation of Unaudited Consolidated Financial Statements
  Reclassifications
  2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
 Fair
Value Measurements
 The Fair Value Option for Financial Assets and
Financial Liabilities  Including an amendment of FASB Statement No. 115
 3. LOSS PER SHARE
 Earnings per Share
   7




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4. PROPERTY, PLANT AND EQUIPMENT
  September 30,
    
    
    December 31,2007
    
    
    2006Cable systems, equipment and subscriber devices
    
    $
    2,856,909
    
    
    $
    2,711,273Vehicles
    
    
    73,031
    
    
    
    65,554Furniture, fixtures and office equipment
    
    
    52,437
    
    
    
    49,716Buildings and leasehold improvements
    
    
    41,372
    
    
    
    41,140Land and land improvements
    
    
    7,179
    
    
    
    7,3623,030,928
    
    
    
    2,875,045Accumulated depreciation
    
    
    (1,574,920
    )
    
    
    (1,423,911
    )Property, plant and equipment, net
    
    $
    1,456,008
    
    
    $
    1,451,134
 5. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
  September 30,
    
    
    December 31,2007
    
    
    2006Accrued programming costs
    
    $
    63,659
    
    
    $
    49,537Accrued interest
    
    
    34,588
    
    
    
    44,741Accrued payroll and benefits
    
    
    28,815
    
    
    
    27,220Other accrued expenses
    
    
    28,837
    
    
    
    23,836Accrued taxes and fees
    
    
    25,222
    
    
    
    30,502Accrued property, plant and equipment
    
    
    22,223
    
    
    
    18,542Accrued service costs
    
    
    17,345
    
    
    
    16,062Subscriber advance payments
    
    
    12,867
    
    
    
    10,611Book overdrafts(1)
    
    
    11,711
    
    
    
    22,414Accounts payable
    
    
    9,054
    
    
    
    32,146$
    254,321
    
    
    $
    275,611
 (1)
    
    Book overdrafts represent outstanding checks in excess of funds on deposit at our
disbursement accounts. We transfer funds from our depository accounts to our disbursement
accounts upon daily notification of checks presented for payment. Changes in book overdrafts
are reported as part of cash flows from financing activities in our consolidated statement of
cash flows.
  8




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##### Table of Contents



6. DEBT
  September 30,
    
    
    December 31,2007
    
    
    2006Bank credit facilities
    
    $
    2,061,625
    
    
    $
    2,018,50077/8% senior notes due 2011
    
    
    125,000
    
    
    
    125,00091/2% senior notes due 2013
    
    
    500,000
    
    
    
    500,00081/2% senior notes due 2015
    
    
    500,000
    
    
    
    500,000Capital lease obligations
    
    
    99
    
    
    
    1,099$
    3,186,724
    
    
    $
    3,144,599Less: Current portion
    
    
    89,599
    
    
    
    75,563Total long-term debt
    
    $
    3,097,125
    
    
    $
    3,069,036
 Bank Credit Facilities
   Interest Rate Exchange Agreements
  7. STOCKHOLDERS DEFICIT
 Stock Repurchase Plans
   9




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Share-based Compensation
   Three Months EndedSeptember 30,2007
    
    
    2006Share-based compensation expense by type of award:Employee stock options
    
    $
    428
    
    
    $
    591Employee stock purchase plan
    
    
    73
    
    
    
    132Restricted stock units
    
    
    818
    
    
    
    504Total share-based compensation expense
    
    $
    1,319
    
    
    $
    1,227
 Nine Months EndedSeptember 30,2007
    
    
    2006Share-based compensation expense by type of award:Employee stock options
    
    $
    1,521
    
    
    $
    1,649Employee stock purchase plan
    
    
    211
    
    
    
    221Restricted stock units
    
    
    2,274
    
    
    
    1,410Total share-based compensation expense
    
    $
    4,006
    
    
    $
    3,280
  Employee Stock Purchase Plan
   10




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##### Table of Contents



8. COMMITMENTS AND CONTINGENCIES
 Legal Proceedings
 Gary Ogg and Janice Ogg v. Mediacom, LLC
  9. INCOME TAXES
 Accounting for Income Taxes Interim Financial Reporting
  Accounting for Income Taxes in
Interim Periods
  11




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Accounting for Uncertainty in Income
Taxes  An Interpretation of FASB Statement No. 109 Accounting for Income Taxes
   10. RELATED PARTY TRANSACTIONS
    12




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ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  Overview
     Retransmission Consent
    13




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Adjusted OIBDA
    14




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Actual Results of Operations
 Three Months Ended September 30, 2007 compared to Three Months Ended September 30, 2006
  Three Months EndedSeptember 30,2007
    
    
    2006
    
    
    $ Change
    
    
    % ChangeRevenues
    
    $
    328,252
    
    
    $
    305,556
    
    
    $
    22,696
    
    
    
    7.4
    %Costs and expenses:Service costs (exclusive of depreciation
and amortization)
    
    
    137,555
    
    
    
    124,427
    
    
    
    13,128
    
    
    
    10.6
    %Selling, general and administrative expenses
    
    
    68,634
    
    
    
    65,317
    
    
    
    3,317
    
    
    
    5.1
    %Corporate expenses
    
    
    6,654
    
    
    
    6,277
    
    
    
    377
    
    
    
    6.0
    %Depreciation and amortization
    
    
    59,970
    
    
    
    53,572
    
    
    
    6,398
    
    
    
    11.9
    %Operating income
    
    
    55,439
    
    
    
    55,963
    
    
    
    (524
    )
    
    
    (0.9
    %)Interest expense, net
    
    
    (61,185
    )
    
    
    (57,125
    )
    
    
    (4,060
    )
    
    
    7.1
    %Loss on early extinguishment of debt
    
    
    
    
    
    
    (28,298
    )
    
    
    28,298
    
    
    NMLoss on derivatives, net
    
    
    (13,791
    )
    
    
    (15,851
    )
    
    
    2,060
    
    
    NMGain on sale of cable systems
    
    
    545
    
    
    
    
    
    
    
    545
    
    
    NMOther expense, net
    
    
    (1,150
    )
    
    
    (2,124
    )
    
    
    974
    
    
    
    (45.9
    %)Income before income taxes
    
    
    (20,142
    )
    
    
    (47,435
    )
    
    
    27,293
    
    
    
    (57.5
    %)Provision for income taxes
    
    
    (14,591
    )
    
    
    (42,392
    )
    
    
    27,801
    
    
    
    (65.6
    %)Net loss
    
    $
    (34,733
    )
    
    $
    (89,827
    )
    
    $
    55,094
    
    
    
    (61.3
    %)Adjusted OIBDA
    
    $
    116,728
    
    
    $
    110,762
    
    
    $
    5,966
    
    
    
    5.4
    %
 Three Months EndedSeptember 30,2007
    
    
    2006
    
    
    $ Change
    
    
    % ChangeAdjusted OIBDA
    
    $
    116,728
    
    
    $
    110,762
    
    
    
    5,966
    
    
    
    5.4
    %Non-cash, share-based compensation
    
    
    (1,319
    )
    
    
    (1,227
    )
    
    
    (92
    )
    
    
    7.5
    %Depreciation and amortization
    
    
    (59,970
    )
    
    
    (53,572
    )
    
    
    (6,398
    )
    
    
    11.9
    %Operating income
    
    $
    55,439
    
    
    $
    55,963
    
    
    
    (524
    )
    
    
    (0.9
    %)
  15




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Revenues
  Three Months EndedSeptember 30,2007
    
    
    2006
    
    
    $ Change
    
    
    % ChangeVideo
    
    $
    225,887
    
    
    $
    221,384
    
    
    $
    4,503
    
    
    
    2.0
    %Data
    
    
    70,528
    
    
    
    60,803
    
    
    
    9,725
    
    
    
    16.0
    %Phone
    
    
    14,443
    
    
    
    7,857
    
    
    
    6,586
    
    
    
    83.8
    %Advertising
    
    
    17,394
    
    
    
    15,512
    
    
    
    1,882
    
    
    
    12.1
    %$
    328,252
    
    
    $
    305,556
    
    
    $
    22,696
    
    
    
    7.4
    %
 September 30,
    
    
    Increase/2007
    
    
    2006
    
    
    (Decrease)
    
    
    % ChangeBasic subscribers
    
    
    1,331,000
    
    
    
    1,394,000
    
    
    
    (63,000
    )
    
    
    (4.5
    %)Digital customers
    
    
    541,000
    
    
    
    514,000
    
    
    
    27,000
    
    
    
    5.3
    %Data customers
    
    
    636,000
    
    
    
    544,000
    
    
    
    92,000
    
    
    
    16.9
    %Phone customers
    
    
    165,000
    
    
    
    83,000
    
    
    
    82,000
    
    
    
    98.8
    %RGUs (1)
    
    
    2,673,000
    
    
    
    2,535,000
    
    
    
    138,000
    
    
    
    5.4
    %Average total monthly revenue per basic subscriber
(2)
    
    $
    81.81
    
    
    $
    72.91
    
    
    $
    8.90
    
    
    
    12.2
    %Average total monthly revenue per RGU(3)
    
    $
    41.24
    
    
    $
    40.64
    
    
    $
    0.60
    
    
    
    1.5
    %
 (1)
    
    Represents the total of basic subscribers and digital, data and phone customers at
the end of each period.(2)
    
    Represents revenues for the quarter divided by average basic subscribers for such
period.(3)
    
    Represents revenues for the quarter divided by average RGUs for such period.
     16




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Costs and Expenses
         17




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Adjusted OIBDA
  Operating Income
  Interest Expense, Net
  Loss on Derivatives, Net
  Gain on Sale of Cable Systems
  Provision for Income Taxes
  Net Loss
   18




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Nine Months Ended September 30, 2007 compared to Nine Months Ended September 30, 2006
  Nine Months EndedSeptember 30,2007
    
    
    2006
    
    
    $ Change
    
    
    % ChangeRevenues
    
    $
    960,861
    
    
    $
    897,326
    
    
    $
    63,535
    
    
    
    7.1
    %Costs and expenses:Service costs (exclusive of depreciation
and amortization)
    
    
    404,060
    
    
    
    364,855
    
    
    
    39,205
    
    
    
    10.7
    %Selling, general and administrative expenses
    
    
    197,149
    
    
    
    184,328
    
    
    
    12,821
    
    
    
    7.0
    %Corporate expenses
    
    
    20,222
    
    
    
    18,158
    
    
    
    2,064
    
    
    
    11.4
    %Depreciation and amortization
    
    
    170,705
    
    
    
    161,473
    
    
    
    9,232
    
    
    
    5.7
    %Operating income
    
    
    168,725
    
    
    
    168,512
    
    
    
    213
    
    
    
    0.1
    %Interest expense, net
    
    
    (180,196
    )
    
    
    (169,667
    )
    
    
    (10,529
    )
    
    
    6.2
    %Loss on early extinguishment of debt
    
    
    
    
    
    
    (35,831
    )
    
    
    35,831
    
    
    NMLoss on derivatives, net
    
    
    (8,972
    )
    
    
    (14,528
    )
    
    
    5,556
    
    
    
    (38.2
    %)Gain on sale of cable systems
    
    
    11,326
    
    
    
    
    
    
    
    11,326
    
    
    NMOther expense, net
    
    
    (6,054
    )
    
    
    (7,750
    )
    
    
    1,696
    
    
    
    (21.9
    %)Loss before provision for income taxes
    
    
    (15,171
    )
    
    
    (59,264
    )
    
    
    44,093
    
    
    NMProvision for income taxes
    
    
    (43,086
    )
    
    
    (62,045
    )
    
    
    18,959
    
    
    NMNet loss
    
    $
    (58,257
    )
    
    $
    (121,309
    )
    
    $
    63,052
    
    
    NMAdjusted OIBDA
    
    $
    343,436
    
    
    $
    333,265
    
    
    $
    10,171
    
    
    
    3.1
    %
 Nine Months EndedSeptember 30,2007
    
    
    2006
    
    
    $ Change
    
    
    % ChangeAdjusted OIBDA
    
    $
    343,436
    
    
    $
    333,265
    
    
    
    10,171
    
    
    
    3.1
    %Non-cash share-based compensation
    
    
    (4,006
    )
    
    
    (3,280
    )
    
    
    (726
    )
    
    
    22.1
    %Depreciation and amortization
    
    
    (170,705
    )
    
    
    (161,473
    )
    
    
    (9,232
    )
    
    
    5.7
    %Operating income
    
    $
    168,725
    
    
    $
    168,512
    
    
    
    213
    
    
    
    0.1
    %
  19




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##### Table of Contents



Revenues
  Nine Months EndedSeptember 30,2007
    
    
    2006
    
    
    $ Change
    
    
    % ChangeVideo
    
    $
    667,544
    
    
    $
    660,837
    
    
    $
    6,707
    
    
    
    1.0
    %Data
    
    
    205,481
    
    
    
    174,350
    
    
    
    31,131
    
    
    
    17.9
    %Phone
    
    
    39,268
    
    
    
    17,297
    
    
    
    21,971
    
    
    
    127.0
    %Advertising
    
    
    48,568
    
    
    
    44,842
    
    
    
    3,726
    
    
    
    8.3
    %$
    960,861
    
    
    $
    897,326
    
    
    $
    63,535
    
    
    
    7.1
    %
 September 30,
    
    
    Increase/2007
    
    
    2006
    
    
    (Decrease)
    
    
    % ChangeBasic subscribers
    
    
    1,331,000
    
    
    
    1,394,000
    
    
    
    (63,000
    )
    
    
    (4.5
    %)Digital customers
    
    
    541,000
    
    
    
    514,000
    
    
    
    27,000
    
    
    
    5.3
    %Data customers
    
    
    636,000
    
    
    
    544,000
    
    
    
    92,000
    
    
    
    16.9
    %Phone customers
    
    
    165,000
    
    
    
    83,000
    
    
    
    82,000
    
    
    
    98.8
    %RGUs (1)
    
    
    2,673,000
    
    
    
    2,535,000
    
    
    
    138,000
    
    
    
    5.4
    %Average total monthly revenue per basic subscriber (2)
    
    $
    78.76
    
    
    $
    70.79
    
    
    $
    7.97
    
    
    
    11.3
    %Average total monthly revenue per RGU(3)
    
    $
    40.56
    
    
    $
    40.27
    
    
    $
    0.29
    
    
    
    0.7
    %
 (1)
    
    Represents the total of basic subscribers and digital, data and phone customers at
the end of each period.(2)
    
    Represents revenues for the period divided by average basic subscribers for such
period.(3)
    
    Represents revenues for the period divided by average RGUs for such period.
       20




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##### Table of Contents



Costs and Expenses
     Adjusted OIBDA
  Operating Income
  Interest Expense, Net
  Loss on Derivatives, Net
   21




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##### Table of Contents



Gain on Sale of Cable Systems
  Provision for Income Taxes
  Net Loss
  Liquidity and Capital Resources
 Overview
    Operating Activities
    22




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##### Table of Contents



Investing Activities
  Financing Activities
  Other
   Contractual Obligations and Commercial Commitments
  Critical Accounting Judgments and Estimates
 Use of Estimates
  Inflation and Changing Prices
   23




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##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  
 ITEM 4. CONTROLS AND PROCEDURES
    24




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##### Table of Contents



PART II
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 1A. RISK FACTORS
 2006 Form 10-K.
 
 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  Approximate DollarTotal Number of
    
    
    
    
    
    
    Value of Shares thatTotal Number
    
    
    
    
    
    
    Shares Purchased
    
    
    Total Dollars
    
    
    May Yet Beof Shares
    
    
    Average Price
    
    
    as Part of Publicly
    
    
    Purchased Under
    
    
    Purchased UnderPeriod
    
    Purchased
    
    
    Per Share
    
    
    Announced Program
    
    
    the Program
    
    
    the ProgramJuly
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    34,705,374August
    
    
    2,807,008
    
    
    $
    8.16
    
    
    
    2,807,008
    
    
    $
    22,916,293
    
    
    
    11,789,081September
    
    
    1,389,411
    
    
    
    8.48
    
    
    
    1,389,411
    
    
    
    11,788,175
    
    
    
    906
    (1)Third Quarter 2007
    
    
    4,196,419
    
    
    $
    8.27
    
    
    
    4,196,419
    
    
    $
    34,704,468
    
    
    $
    906
 (1)
    
    On November 1, 2007, our Board of Directors authorized a new $50.0 million Class A common stock repurchase program.
 
 ITEM 3. DEFAULT UPON SENIOR SECURITIES
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 ITEM 5. OTHER INFORMATION
   25




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##### Table of Contents



ITEM 6. EXHIBITS
 ExhibitNumber
    
    Exhibit Description31.1
    
    Rule 13a-14(a) Certifications32.1
    
    Section 1350 Certifications
  26




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##### Table of Contents



SIGNATURES
  MEDIACOM COMMUNICATIONS CORPORATIONNovember 9, 2007
    By:
    /s/ Mark E. StephanMark E. StephanExecutive Vice President and Chief Financial Officer  27




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNo.
    
    DescriptionExhibit 31.1:
    
    Rule 13a-14(a) CertificationsExhibit 32.1:
    
    Section 1350 Certifications
  28