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QUINCY, Mass.–(BUSINESS WIRE)– Atlantic Broadband Finance, LLC (“Atlantic Broadband” or the “Company”) reported today financial results for the period ended September 30, 2009.

Revenue for the three months ended September 30, 2009 was $75.6 million as compared to $71.1 million for the three months ended September 30, 2008, an increase of $4.5 million or 6.3%. This increase was mainly the result of (i) a $0.6 million increase in video revenue resulting from increased digital subscriber levels, along with increased usage of Digital Video Recorders and high definition converters; (ii) an increase in high-speed data revenue of $1.4 million or 11.6% from continued marketing focus for this service offering driving HSD subscriber growth; (iii) a $1.4 million increase in telephone revenue generated by increases in subscriber levels and (iv) a $1.2 million increase in commercial revenue as we continue to expand our non-residential customer base through targeted marketing efforts. We expect revenues to continue to increase as we see subscriber growth in our high-speed data and telephone service offerings, while video subscriber levels stabilize.

Operating expenses for the three months ended September 30, 2009 were $33.3 million as compared to $33.1 million for the same period in 2008. The $0.2 million increase was mainly the result of increased programming costs in conjunction with annual contractual increases, coupled with increased HSD and telephony direct costs driven by higher subscriber levels and usage totaling $1.4 million, offset in part by a $0.6 million reduction in health insurance costs driven by slightly lower headcount and employee claim levels, as well as general reductions in other operating costs due to management’s efforts to reduce discretionary spending. We expect operating expenses to continue to increase as growth in total revenue generating units will result in increased direct expenses, while technical and customer support levels should remain relatively stable.

Selling, general and administrative expenses for the three months ended September 30, 2009 were $10.2 million as compared to $10.3 million for the three months ended September 30, 2008, a decrease of $0.1 million. This decrease resulted mainly from a decrease in marketing spending due to overall slow gross subscriber connect activity. We expect to see relatively moderate growth in selling, general and administrative expenses as we increase marketing spending to drive subscriber growth trends.

Revenue for the nine months ended September 30, 2009 was $224.6 million as compared to $207.7 million for the nine months ended September 30, 2008, an increase of $16.9 million or 8.1%. This increase was mainly the result of a (i) $3.5 million increase in video revenue from increased digital subscriber levels, along with increased usage of Digital Video Recorders and high definition converters; (ii) a $4.9 million or 14.1% increase in high-speed data revenue resulting from continued marketing focus for this service offering driving HSD subscriber growth; (iii) a $4.8 million increase in telephone revenue generated by this service offering through subscriber growth and (iv) a $3.5 million increase in commercial revenue as we continue to expand our non-residential customer base through targeted marketing efforts.

Operating expenses for the nine months ended September 30, 2009 were $101.1 million as compared to $96.2 million for the same period in 2008. The $4.9 million or 5.1% increase was mainly the result of increased programming costs in conjunction with annual contractual increases, coupled with the incurrence of higher levels of direct costs associated with our continued expansion of high speed data and cable telephony services totaling $5.7 million, offset in part by a $0.9 million decrease in health insurance costs driven by slightly lower headcount and employee claim levels.

Selling, general and administrative expenses for the nine months ended September 30, 2009 were $30.7 million for both the nine months ended September 30, 2009 and 2008. Underlying this flat trend is a moderate decrease in marketing spending of $0.4 million, offset by a $0.3 million increase in bad debt expense which trends with revenue growth, along with decreases in other general expense items due to conscious efforts to control costs.

Liquidity and Cash Flow:

Total debt outstanding at September 30, 2009 was $598.4 million and cash balances were $22.2 million at quarter end. On an annualized basis, EBITDA for the nine months ended September 30, 2009, adjusted for certain expenditures as defined in the Company’s credit agreement totaling $0.4 million resulted in a total leverage ratio as defined in said credit agreement of approximately 4.67x.

Summary Financial Results:

The following tables summarize financial results for the three and nine month periods ended September 30, 2009:

Subscriber information

Operating results

Reconciliation of Income from operations to EBITDA (in thousands):

September 30, 2009

September 30, 2009

Conference Call:

The Company will host a conference call at 11:00 a.m. EST on Monday November 16, 2009 to discuss the financial results. To access the conference call, interested parties may dial (888) 419-5570 and provide the conference passcode “894 960 03” to the attendant. A replay will be available through December 8, 2009 by dialing (888) 286-8010 and using the passcode “536 429 51”.

Note Regarding Forward-Looking Statements:

Statements in this release that are “forward-looking statements” are based upon current expectations and assumptions, and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation reform Act of 1995. Words of expressions such as “intends”, “expects”, “expected”, “anticipates” or variations of such words and similar expressions are intended to identify such forward-looking statements. Key risks are described in the Company’s report filed with the Securities and Exchange Commission (SEC).