10-K/A: Altice USA Files Amended 10-K After Audit Report Error

Altice USA has filed an amendment to its annual report to correct a minor error in the auditor's report for its subsidiary, CSC Holdings, with no changes to the financial statements.

Summary

• Altice USA filed an amendment to its original Form 10-K to correct a minor error in the auditor's report of its subsidiary, CSC Holdings.
• The original report, filed on February 15, 2024, inadvertently omitted a phrase in the KPMG LLP audit report.
• The amendment does not alter the financial statements or KPMG's opinion on CSC Holdings' consolidated financial statements.
• The amendment includes the complete text of Item 8 and Item 9A from the original filing, with the correction to the auditor's report.
• The company's management has concluded that the design and operation of disclosure controls and procedures were effective as of December 31, 2023.
• There were no changes in internal control over financial reporting that materially affected or are reasonably likely to materially affect internal control over financial reporting during the year ended December 31, 2023.
• The amendment includes certifications from the CEO and CFO.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The document is a routine correction, and the company's internal controls are deemed effective. The goodwill impairment is a negative, but it is not unexpected in the current market.

Positives

• The company has corrected a minor error in its financial reporting promptly.
• The company's internal controls are deemed effective.
• There were no material changes to internal control over financial reporting during the year.

Negatives

• The need for an amendment indicates a minor oversight in the original filing process.

Risks

• While the error was minor, any future errors in financial reporting could erode investor confidence.
• The company is exposed to risks related to changes in economic conditions, industry trends, and competition.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

Management Comments

• The Chief Executive Officer and Chief Financial Officer have certified that the report does not contain any untrue statement of a material fact.
• The Chief Executive Officer and Chief Financial Officer have certified that the financial statements fairly present the financial condition, results of operations and cash flows of the registrant.
• Management has concluded that the design and operation of disclosure controls and procedures were effective as of December 31, 2023.

Industry Context

This amendment is a routine correction to a financial filing and does not indicate any significant changes in the company's operations or competitive position within the telecommunications and media industry.

Comparison to Industry Standards

• The company's financial reporting appears to be in line with industry standards, with the exception of the minor error in the original audit report.
• The company's internal control over financial reporting is deemed effective, which is a standard expectation for publicly traded companies.
• The goodwill impairment charge of $163.1 million for the News and Advertising unit is not unusual in the current economic climate, where advertising revenues are under pressure. Other companies in the media sector have also reported similar impairments.

Legal Proceedings

• The company is involved in ongoing litigation related to copyright infringement claims.

Related Party Transactions

• The company has related party transactions with entities controlled by Patrick Drahi, including revenue from advertising and expenses for services.

Stakeholder Impact

• The correction of the audit report error should reassure shareholders about the company's commitment to accurate financial reporting.
• The ongoing litigation could potentially impact the company's financial performance and reputation.

Next Steps

• The company will continue to monitor its internal controls and financial reporting processes.
• The company will continue to operate its business and execute its strategic plan.

Key Dates

Keywords

amendment, Form 10-K, audit report, CSC Holdings, financial statements, internal control, disclosure controls, KPMG, Altice USA