Cablevision Systems Corporation Announces Fourth-quarter Results.WOODBURY, N.Y.--(BUSINESS WIRE)--February 19, 1998--Cablevision Systems Corporation (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. :CVC See CSC. ) today released fourth-quarter 1997 results. The Company's adjusted operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. (operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before depreciation and amortization and excluding the effects of stock plan income or expense) increased 72.0 percent and 41.9 percent, respectively, for the three and twelve months ended December 31, 1997, compared to the same periods in 1996. On the pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis described on page 2, adjusted operating cash flow for the Company increased 10.8 percent and 14.3 percent, respectively, in the same periods. Net revenues for the three and twelve months ended December 31, 1997 increased 76.4 percent and 48.2 percent, respectively, over the corresponding 1996 periods. On a pro forma basis, net revenues increased 8 percent and 10.8 percent, respectively, for the three and twelve months ended December 31, 1997, as compared to the same periods in the prior year. Commenting on the results, Cablevision Chief Executive Officer James L. Dolan said, "The underlying strength of our businesses is mirrored in the positive results we are announcing today. Our cable television operations, Rainbow Media and Cablevision Lightpath have each contributed to healthy revenue gains and double-digit cash flow growth for the quarter and the year. In 1997 and so far in 1998, Cablevision announced a series of major transactions with ITT ITT Initial Teacher Training (UK) ITT I Think That ITT Invitation To Tender ITT Individual Time Trial (professional cycling) ITT Intention-To-Treat ITT In This Thread (forums) , TCI (Trustworthy Computing Initiative) An umbrella term from Microsoft for its efforts to improve security in Windows. TCI was announced in 2002 after viruses such as Code Red and Nimda had succeeded in attacking numerous Windows computers. , Fox/Liberty, @Home Corp., Nobody Beats the Wiz and others which will dramatically strengthen the Company's future growth potential. We enter 1998 strategically well positioned not only in our traditional cable and programming businesses, but also in the areas of live entertainment, telephony and high speed cable modem cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. service, and with new opportunities for the retail marketing of the Company's products, services and associated equipment." The Company reported net income for the three months ended December 31, 1997, reflecting an aggregate gain of approximately $370,045,000 as a result of the Fox/Liberty transaction and the sale of certain cable television systems in Maine and Toledo, Ohio
Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, the most populous county in the state. . Including a gain recognized in the third quarter of 1997 on the redemption of A-R Cable's Series A preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , total non-recurring gains for the year aggregated $551,783,000. Net income (loss) applicable to common shareholders (after preferred dividend preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) requirements) for the three and twelve months ended December 31, 1997 amounted to $182,139,000 or $7.28 and $(12,104,000) or $(.49) per common share. Diluted net income per share for the three months ended December 31, 1997 amounted to $6.12. For the same periods in 1996, the equivalent amount was $(134,279,000) or $(5.40) and $(459,859,000) or $(18.52) per common share. Weighted average shares outstanding for the three and twelve months ended December 31, 1997 amounted to 25,032,930 and 24,902,226, compared to 24,838,000 and 24,827,000 for the same periods in the prior year. As of December 31, 1997, the Company served approximately 2,844,000 subscribers on a consolidated basis, reflecting acquisitions and dispositions (adding 321,000 subscribers, net) in 1997, and a gain of approximately 78,000 subscribers (3.2 percent) from internal growth during the year. Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. average monthly revenue per subscriber was $38.53 in December 1997, as compared to $36.71 in December 1996. The pro forma adjustments to net revenues and operating cash flow referred to above were made to give effect to the acquisitions of U.S. Cable and additional interests in Cablevision of Newark during the third quarter of 1996 and the consummation of a transaction with NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. (which resulted in NBC obtaining a 25 percent equity interest in Rainbow Media Holdings in exchange for NBC's interests in certain of Rainbow Media's programming subsidiaries). They also give effect to the acquisition of additional interests in Cablevision of Framingham Holdings and A-R Cable Partners (Nashoba), the acquisition of an additional interest in Madison Square Garden Current arenas in the National Hockey League Western Conference Eastern Conference L.P. (MSG MSG: see glutamic acid. ) in the second quarter of 1997 (excluding certain discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. ), the acquisition of A-R Cable Services, Inc.'s (A-R Cable) Series A preferred stock in the third quarter of 1997, and the acquisition of Radio City Productions in the fourth quarter of 1997. The pro forma financial information also gives effect to the sale of cable television systems in Maine and Toledo, Ohio and the sale of CV Radio in the fourth quarter of 1997. The fourth-quarter actual and pro forma results cited do not take into account the agreement to acquire 10 cable television systems serving approximately 829,000 subscribers in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and New Jersey from TCI for approximately 12.2 million newly issued shares of the Company's common stock and the assumption of $669 million in debt or the recent agreement in principle with TCI to acquire cable television systems in and around Hartford, Vernon, Branford and Lakeville, Connecticut serving approximately 250,000 subscribers in exchange for approximately 1.5 million of newly issued common shares, $135,000,000 in cash and assumed debt and the Company's cable television operations in Kalamazoo, Michigan “Kalamazoo” redirects here. For other uses, see Kalamazoo (disambiguation). Kalamazoo is the largest city in the southwest region of the U.S. state of Michigan. As of the 2000 census, the city had a total population of 77,145. . Cablevision Systems Corporation is one of the nation's leading diversified telecommunications and entertainment companies. As the sixth largest operator of cable television systems, Cablevision's cable division serves households primarily in the New York, Boston and Cleveland metropolitan areas. The Company's Rainbow Media Holdings subsidiary owns and manages entertainment, news and sports programming services including American Movie Classics, Bravo BRAVO Cardiology A clinical trial–Blockade of the GP IIB/IIIA Receptor to Avoid Vascular Occlusion– which evaluated lotrafiban in preventing strokes and acute MI. See GP IIB/IIIA. , the Independent Film Channel and Romance Classics. In partnership with Fox/Liberty Networks, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , Rainbow Programming Partners provides regional and national sports programming, and through its Madison Square Garden L.P. subsidiary, operates the arena complex, the New York Knicks, the New York Rangers The New York Rangers are a professional ice hockey team based in New York, New York, U.S.A. They are members of the Atlantic Division of the Eastern Conference of the National Hockey League (NHL). , as well as the MSG Network. Its Radio City Productions manages the operations and holds a long-term lease on New York's famed Radio City Music Hall Radio City Music Hall New York City’s famous cinema; home of the Rockettes. [Am. Hist.: NCE, 2338] See : Theater . Cablevision Lightpath Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , provides telephone service to more than 850 businesses on Long Island, while Optimum Online Optimum Online (OOL) is a broadband Internet service provider subsidiary of Cablevision. Optimum Online serves Long Island, other parts of New York, the Bronx, Brooklyn, Westchester, parts of New Jersey, Connecticut, and Pennsylvania. offers high-speed online and Internet access See how to access the Internet. via cable modems to customers in New York and Connecticut. The table on page 4 presents net revenues and operating cash flow for the three- and twelve-month periods ended December 31, 1997 and 1996 in terms of the Restricted Group, the Unrestricted Group - Cable and the Rainbow and New Media businesses as set forth below. Adjustments have been made between Restricted Group and Unrestricted Cable to reflect the transfer of certain cable systems between the groups, which occurred in December 1997 and April and October 1996. The columns denoting pro forma percentage change assume all acquisitions and dispositions occurred as of January 1, 1996. -0-
REVENUES/OPERATING CASH FLOW
(Dollars in Thousands)
(Unaudited)
NET REVENUES
-------------
T 1997 1996 Change Change
---------- ---------- ------ ------
Restricted Group $335,280 $282,744 18.6 7.3
---------- ----------
Subtotal 370,080 303,675 21.9 9.7
45,615 30,272 50.7 17.2
Rainbow Regional Sports 218,532 16,989 - 5.1
R
Subtotal 289,620 63,915 - 6.8
---- 124 - - -
Eliminations(cember 31, Percent Percent
1997 1996 Change Change
---------- ---------- ------ ------Unrestricted - Cable 116,45
0 32,144
- 7.7
----------- -----bow National Services 168,893 122,300 38.1
14.9
Rainbow Regional Sports 398,042 69,848 - 10.3
Rainbow Developing/Other 93,440 ------
Subtot (77,685) (31,346) (147.8) (14.2)
------------ -----------
Total $1,949,358 $1======
OPERATING CASH FLOW
-------------------
1997
-----------------------------------
Eliminate
nse Adjusted
Three Months Ended December 31,
Restricted Group $ 128,013 $ --------- ---------
Subtotal Regional Sports 57,257 -- 98 12,828 62,226
Unrestricted - Cable 37,536 4,435 41,971
--------- --------- ---------
Subtotal
--------- --------- ---------
Subtotal 68,433 30,985 99,418
--------- --------- ---------
New Media (24,502) 362 (24,140)
--------- --------- ---------
Total $ 580,984 $ 64,361 $ 645,345
========= ========= =========
1996
---------
Adjusted for Pro forma
Stock Percent Percent
Plan Charge Change Change
Three Months Ended December 31,
Restricted Group $ 113,699 23.1 13.3
Unrestricted - Cable 6,486 100.4 21.4
-------
Subtotal 120,185 27.3 13.9
-------
Rainbow National Services 10,767 66.6 51.4
Rainbow Regional Sports 2,117 -- 2.2
Rainbow Developing/Other (7,325) (77.1) (31.6)
-------
Subtotal 5,559 -- 6.8
-------
New Media (4,254) (47.6) (47.6)
-------
Total $ 121,490 72.0 10.8
=======
Twelve Months Ended December 31,
Restricted Group $ 437,810 20.6 13.3
Unrestricted - Cable 9,998 -- 19.0
--------
Subtotal 447,808 27.3 13.7
--------
Rainbow National Services 42,082 48.1 39.4
Rainbow Regional Sports 5,551 -- 22.9
Rainbow Developing/Other (27,701) (73.4) (37.5)
--------
Subtotal 19,932 -- 25.0
--------
New Media (12,904) (87.1) (87.1)
--------
Total $ 454,836 41.9 14.3
========
(a) Represents revenues earned in Rainbow programming and ad sales
operations from consolidated cable systems and, to a lesser extent,
intercompany Lightpath revenues.
-0- This report contains statements that constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that any such forward- looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors. Factors which may cause such differences to occur include but are not limited to (i) whether expenses continue to increase or increase at a different rate than expected, (ii) the level of growth in Cablevision's revenues, (iii) subscriber demand, competition, the cost of products and industry conditions, (iv) whether the transactions described herein are consummated on the terms and at the times set forth, (v) new companies entering Cablevision's franchise areas, and (vi) the other risks and uncertainties in Cablevision's business. CONTACT: CABLEVISION SYSTEMS CORPORATION Charles Schueler (516) 393-1399 Investor Relations Investor relations The process by which the corporation communicates with its investors. (516) 393-1325 |
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