Cablevision Systems Corporation Reports First Quarter 2001 Financial Results.Business Editors BETHPAGE Bethpage (bĕthpāj`), uninc. village (1990 pop. 15,761, including Old Bethpage), Nassau co., SE N.Y., on W Long Island. Northrop Grumman Corporation's large defense plant here is being partly redeveloped for diversified industrial use. , N.Y.--(BUSINESS WIRE)--May 8, 2001 Cablevision For the unrelated Canadian company, see . Cablevision Systems Corporation is an American cable television company. It is the 5th largest cable provider in the USA, with most customers residing in New York, New Jersey, Connecticut, and Pennsylvania. Systems Corporation today released financial results for the three months ended March 31, 2001 for its Cablevision NY Group and Rainbow Media Group businesses. The three-month results and the percentage increase or decrease are presented 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 in the Notes on page 8 and 11. Cablevision NY Group (NYSE NYSE See: New York Stock Exchange : CVC See CSC. ) refers to the Company's cable television systems, Lightpath and its 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 area commercial telephone business, 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. high-speed Internet See broadband. 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, New Media, Madison Square Garden Current arenas in the National Hockey League Western Conference Eastern Conference , THE WIZ, Clearview Clearview may refer to:
LLC - Logical Link Control . Rainbow Media Group (NYSE: RMG RMG Roularta Media Group RMG RiskMetrics Group, Inc. RMG Revenu Minimum Garanti (French: Guaranteed Minimum Income) RMG Risk Management Group RMG Ready Made Garment RMG Raw Materials Group (mining industry) ) refers to national programming networks, including American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of 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, WE: Women's Entertainment (formerly Romance romance [O.Fr.,=something written in the popular language, i.e., a Romance language]. The roman of the Middle Ages was a form of chivalric and romantic literature widely diffused throughout Europe from the 11th cent. Classics) and MuchMusic USA, as well as Rainbow's interests in the national service Fox Sports Net and Rainbow's five regional sports channels Sports channels are television specialty channels (usually available exclusively through cable and satellite) broadcast sporting events, usually live, and when not broadcasting events, sports news and other related programming. outside of the New York market. For the quarter ended March 31, 2001, the Company recorded net revenues of $1.0 billion, an 8% pro forma increase compared to the prior year period. The Company posted 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, excluding the effects of stock plan income or expense and Year 2000 remediation expense - "AOCF AOCF Association of Outplacement Consulting Firms ") of $213.6 million, a 2% pro forma increase from the prior period. Cable and Lightpath net revenue rose 6% to $498.4 million and AOCF increased 9% to $231.3 million. Rainbow Media Group's Core Networks revenue rose 23% to $121.7 million with AOCF increasing 19% to $43.3 million. "The solid results Cablevision and Rainbow achieved in the first quarter, with more than $1 billion in revenue, demonstrated the continuing strength of our core businesses," said James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. L. Dolan Dolan is a surname, and the following people:
York, Ont.: see Toronto, Ont., Canada. York, city, England York, city (1991 pop. 123,126) and district, North Yorkshire, N England, at the confluence of the Ouse and Foss rivers. cable properties, which enables us to concentrate our resources on growth opportunities in the tri-state area There are a number of places in the United States known as tri-state areas where three states or holdings meet at one point (a tripoint), or in proximity to each other. The two most well-known are for the New York and Chicago metropolitan areas. . There, continued strong demand for cable modems increased our total number of modem modem [modulator/demodulator], an external device or internal electronic circuitry used to transmit and receive digital data over a communications line normally used for analog signals. customers by 27 percent. Lightpath also realized an excellent quarter in commercial telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. and data, reporting 24 percent growth in cash flow." Mr. Dolan continued: "Our Rainbow Media Group assets had an excellent first quarter as well. The core networks reported strong increases in both revenue and cash flow, we welcomed MGM MGM in full Metro-Goldwyn-Mayer, Inc. U.S. corporation and film studio. It was formed when the film distributor Marcus Loew, who bought Metro Pictures in 1920, merged it with the Goldwyn production company in 1924 and with Louis B. Mayer Pictures in 1925. as a new partner in certain Rainbow properties, and RMG's listing on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. represents new opportunity for the Company and its shareholders." Cablevision NY Group Cable Operations Net revenues for the first quarter increased 5% over the year-earlier period to $474.2 million. AOCF for the three-month period also rose 8% to $215.8 million, compared to the corresponding quarter in 2000. Highlights include: - Continued cable subscriber gains - up 1.8% compared to March 31, 2000 - Rate increases implemented in January 2001 - 5,000 new OptimumTV customers added in the first quarter for a total of more than 600,000 - 49% of homes marketed - A 1% decrease in total advertising revenue due to a 13% decline in regional advertising business, offset by a 6% increase in local and national advertising revenue - A 9% decline in pay-per-view revenue primarily due to fewer movie buys than in the prior year period - A 12% increase in other revenue primarily due to revenues related to an agreement between Cablevision and Comcast for cable advertising sales in the New York market. 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. revenue per subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. rose 4.2% to $49.80 compared to $47.80 in March 2000. The AOCF margin for the first quarter of 2001 was 45.5% as compared to 44.4% in the prior year period and 44.5% in the fourth quarter of 2000. Commercial Telephone - Long Island Lightpath Long Island recorded net revenues of $24.2 million for the first quarter, a 24% increase from the year-earlier period. AOCF for the three months ended March 31, 2001 was $15.5 million, up 24% from the prior year period. Highlights include: - A 26% increase in the number of buildings on-net Connected to the Internet, or connected to a LAN or WAN. Contrast with off-net. - A 30% increase in access lines - A 70% increase in transmission revenues related to growing commercial demand for high capacity broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). circuits from wireless carriers and large capacity users on Long Island - A 75% penetration The successful unauthorized breach of a security perimeter. See penetration test. rate of all hospitals on Long Island. Consumer Modem The Company's consumer modem service is marketed as Optimum Online ("OOL OOL Object-Oriented Language OOL Optimum Online OOL Out-Of-Line (XML) OOL Origin of Life OOL Out of Luck OOL Out of Limits OOL Gold Coast, Queensland, Australia - Coolangatta (Airport Code) "). For the three months ended March 31, 2001, OOL net revenues rose to $22.9 million compared to $6.1 million in the prior year period. OOL recorded an AOCF deficit of $14.3 million for the first quarter compared to $10.6 million in the year-earlier period. Highlights include: - 65,000 new customers added - 5,000 per week for a total of more than 303,000 - 13.2% penetration of homes released, compared to 11.9% at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2000 - Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). and Long Island penetration rates of 20% of cable modem homes released - 303,000 modem-ready homes released, primarily in New Jersey, for a total of 2.3 million - The sale of cable modems at one additional THE WIZ store in New Jersey during the first quarter, bringing the total number of stores offering the product to 25. New Media New Media consists of the Company's developmental telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. businesses, residential telephone service, commercial cable modem service, developing (non-Long Island) commercial telephone service, research and development expenses, and deferred revenue amortization related to Cablevision's Excite@Home warrants. For the quarter ended March 31, 2001, net revenue totaled $25.5 million compared to $18.4 million in the prior year period, and the AOCF deficit was $2.5 million compared to AOCF of $1.2 million in the year-earlier period. Lightpath's developing commercial telephone businesses, operating in New Jersey, Connecticut, Westchester Westchester is the name of some places in the United States of America:
New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. added several major customers in the local on-net business telephone market. Highlights include: - 5,000 access lines added as the Westchester County Medical Center was switched over to the Lightpath network under a five-year contract - 6,000 access lines added as the County of Westchester's municipal offices were switched over to the Lightpath network under a five-year contract signed last year - Activation activation /ac·ti·va·tion/ (ak?ti-va´shun) 1. the act or process of rendering active. 2. the transformation of a proenzyme into an active enzyme by the action of a kinase or another enzyme. 3. of the Parsippany, New Jersey telephone switch in April 2001. MSG MSG: see glutamic acid. Madison Square Garden includes MSG Network, Fox Sports Net New York, 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). , the New York Liberty The New York Liberty is a Women's National Basketball Association (WNBA) team based in New York City. They are one of the eight original WNBA teams that began to see action in 1997, as well one of the most successful teams in WNBA history. , the MSG Arena complex, and Radio City Music Hall Radio City Music Hall New York City’s famous cinema; home of the Rockettes. [Am. Hist.: NCE, 2338] See : Theater . For the first quarter 2001, net revenue totaled $216.9 million, down 3%, and AOCF was $15.4 million, down 13% compared to the year-earlier period. Highlights include: - Thirty-six fewer shows and two fewer boxing events, compared to the year-earlier period. The lower level of show activity reflects a reduced number of family and concert touring shows in the first quarter of 2001 as compared to 2000. - Higher legal and professional fees related to the Yankee Yankee, term used by Americans generally in reference to a native of New England and by non-Americans, especially the British, in reference to an American of any section. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . Retail Electronics THE WIZ recorded net revenue of $150.9 million, a 10% increase for the first quarter compared to the prior year period. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of rose 14% despite increased competition. The AOCF deficit for the first quarter was $17.4 million compared to a deficit of $17.9 million in the prior year period. Theatres For the three-month period ended March 31, 2001, net revenues at Clearview Cinemas was $18.4 million, a 3% increase from the prior year period. The AOCF deficit for the quarter was $.05 million, compared to AOCF of $.3 million in the year-earlier period. Rainbow NY Rainbow NY is comprised primarily of the five local News 12 Networks operating in Long Island, New Jersey, Westchester, Connecticut and the Bronx Bronx, river, c.20 mi (30 km) long, issuing from Kensico Reservoir, SE N.Y., and flowing SW through the Bronx into the East River. The Bronx River Parkway, one of the first limited-access highways in the New York City area, parallels a portion of the river. , as well as Rainbow's three local MetroChannels and Rainbow Advertising Sales Corp. These businesses incurred a higher AOCF deficit compared to the year-earlier period which was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk primarily to increases in spending for programming initiatives on the MetroChannels. Other Other costs amounted to $9.2 million for the first quarter of 2001 compared to $16.5 million in the prior year period and include corporate expenses and developmental expenses to support the New York metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. operations. 2001 Guidance Cablevision NY Group estimates its cable television, consumer cable modem, and Long Island Lightpath business will achieve the previously stated guidance for the full year 2001 of pro forma revenue growth between 10% and 12% and pro forma AOCF growth between 13% and 15%. The Company affirms its guidance for total telecommunications pro forma revenue growth between 11% and 13% and pro forma AOCF is expected to increase between 10% and 11%. The Company also estimates it will meet its cable subscriber growth forecast of at least 1.75%, will end the year with at least 475,000 cable modem customers and will generate positive AOCF for the consumer modem product during the fourth quarter. The Company also estimates it will invest between $1.0 billion and $1.1 billion in its cable, commercial telephone and New Media businesses in 2001. The Company continues to anticipate it will begin deploying digital set-top boxes The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. in the Fall of 2001 and will end the year with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 100,000 Sony SONY Standard Oil of New York (common, but untrue; it's an urban legend) boxes deployed to 50,000 customers. Madison Square Garden (MSG) The Company affirms its full year 2001 revenue estimate for MSG of between $870 million and $890 million. Full year AOCF is estimated between $135 million and $140 million primarily due to the Rangers Rapidly deployable airborne light infantry organized and trained to conduct highly complex joint direct action operations in coordination with or in support of other special operations units of all Services. not making the playoffs, the Knicks not advancing to the second round of the NBA playoffs The NBA Playoffs is a four-round best-of-seven elimination tournament between sixteen teams in the Eastern Conference and Western Conferences (called Divisions, pre-1970) of the National Basketball Association, ultimately determining the league champion. and expenses related to the Yankee litigation. This lower AOCF estimate does not include certain one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. expenses related to the sports teams that could be incurred. 2002 Guidance The Company anticipates its capital expenditures in 2002 could be in the range of $1.5 billion to $1.7 billion. The estimated capital expenditures would be due to a number of factors including: the acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. of the rebuild of the cable network including the Bronx and Brooklyn Brooklyn (br  k`lĭn), borough of New York City (1990 pop. 2,300,664), 71 sq mi (184 sq km), coextensive with Kings co., SE N.Y. (expected to be 97% complete to 750 MHZ by the end of 2002);
the rollout of the Sony digital boxes; the completion of a digital
headend in Parsippany, New Jersey; the upgrade of the Westchester County
and Rockland Rockland, industrial town (1990 pop. 16,123), Plymouth co., E Mass.; settled 1673, set off from Abington and inc. 1874. There is light manufacturing. County systems acquired from AT&T in January January: see month. 2001; and
other investments required to support the digital network.Rainbow Media Group American Movie Classics (AMC (Advanced Mezzanine Card) See AdvancedTCA. ) AMC's net revenues increased 16% to $54.6 million and AOCF grew 13% to $26.2 million. The strong revenue and cash flow growth was attributable to a 4% increase in viewing subscribers, affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. rate increases and an 80% increase in sponsorship revenue. Quarterly highlights include film deals signed with MGM and Paramount Paramount (pâr`əmount'), city (1990 pop. 47,669), Los Angeles co., S Calif.; inc. 1957. Originally a dairy region, it has become highly industrialized since the 1950s. that cover more than 200 films for periods ranging from six-to-eight years. Bravo/The Independent Film Channel (IFC (Internet Foundation Classes) A class library from Netscape that provides an application framework and graphical user interface (GUI) routines for Java programmers. IFC was later made part of the Java Foundation Classes (JFC). See JFC, AFC and AWT. See also ICF. ) Bravo/IFC's net revenues increased 41% to $40.9 million and AOCF grew 28% to $11.2 million. Highlights include: - A 17% increase in Bravo's viewing subscribers which now total 46.8 million - A 55% increase in IFC's viewing subscribers which now total 17.8 million - A 62% rise from the year-earlier period in Bravo's advertising revenue to $12.8 million, due to higher ratings and two additional minutes of advertising time per hour - A record .40 primetime rating for Bravo for the first quarter representing a 29% rise from the prior year period. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Regional Sports Consolidated Regional Sports is comprised of Fox Sports Net Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and and Ohio, both of which are 60% owned by Rainbow Media Holdings, Inc. Net revenues rose 16% to $26.2 million, and AOCF increased 34% to $5.9 million for these properties. Non-Consolidated Regional Sports (Fox Sports Net Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Bay Area and New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. ) For the first quarter, net revenues grew 6% to $49.5 million, and AOCF increased 17% to $6.1 million. Viewing subscribers totaled 10.2 million, representing a 5% increase from the prior year period. Non-Consolidated FOX Sports Net Fox Sports Net's viewing subscribers totaled 71 million at the end of the quarter. Developing Programming/Other Developing Programming/Other consists of WE:Women's Entertainment, MuchMusic USA, Rainbow Network Communications and other Rainbow start-up Start-up The earliest stage of a new business venture. ventures. First quarter net revenues of $18.5 million represented a 13% increase compared to the prior year period primarily due to WE:Women's Entertainment's higher subscriber count and affiliate fees. The AOCF deficit for the three-month period was $12.5 million compared to $4.4 million in the year-earlier period. The increase in the AOCF deficit was attributable primarily to investments related to new films in production and distribution by IFC Productions. The number of WE:Women's Entertainment's viewing subscribers increased 24% to 24 million. 2001 Guidance The Company estimates RMG will achieve full year 2001 pro forma revenue and cash flow growth for AMC, Bravo, IFC and Consolidated Regional Sports between 14% and 16% as previously stated in the Cablevision Systems Corporation fourth quarter 2000 earnings release. RMG also estimates that its Developing and Sterling Digital businesses will each record AOCF losses in 2001 between $35 million and $40 million. RECENT DEVELOPMENTS Cablevision NY Group Cablevision has notified AT&T that it would not proceed at this time with the registration of shares of Cablevision NY Group common stock owned by AT&T as AT&T requested. The Company is considering its alternatives with regard to a potential equity raise of securities. The Company anticipates that capital expenditures could be in the range of $1.5 billion to $1.7 billion in 2002 for reasons listed above and estimates that 97% of the plant will be complete to 750MHZ by the end of that year. The Company also desires to maintain its leverage at a level consistent with its recent historical range. Rainbow Media Group On May 1, 2001, Rainbow Media Holdings announced a distribution agreement with AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. Time Warner to carry WE:Women's Entertainment on its Time Warner cable This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. channels. This agreement will bring the total viewing subscriber count of WE:Women's Entertainment to 32 million by year-end 2001. In March 2001, IFC reached an agreement with DIRECTV DirecTV (trademarked as "DIRECTV") is a direct broadcast satellite (DBS) service based in El Segundo, California, USA, that transmits digital satellite television and audio to households in the United States, the Caribbean and Latin America except for Mexico. that makes IFC available to nearly 4 million more of its customers. On May 7, 2001, IFC announced it had reached a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. carriage carriage, wheeled vehicle, in modern usage restricted to passenger vehicles that are drawn or pushed, especially by animals. Carriages date from the Bronze Age; early forms included the two-wheeled cart and four-wheeled wagon for transporting goods. agreement with several cable companies and DIRECTV that will result in an additional 3 million viewing subscribers by the end of 2001, bringing the total viewing subscriber count to 21 million. Furthermore, IFC reached a long-term carriage agreement with Time Warner Cable which will provide IFC with an additional 3 million viewing subscribers by the end of 2003. On April 2, 2001, Rainbow Media Holdings completed the sale of a 20% interest in four of its national cable services to Metro-Goldwyn-Mayer for $825 million. The proceeds were used to repay $365 million of AMC's bank debt and to repay a $295 million inter-company loan to Cablevision, leaving Rainbow Media Group with $165 million in cash. On March 30, 2001, the Rainbow Media Group tracking stock was listed on the New York Stock Exchange. In March 2001, CSC (Card Security Code) A three- or four-digit number printed on the back of credit cards for security purposes. Called "Card Verification Value" (CVV) by Visa, "Card Validation Code" (CVC) by MasterCard and "Card Identification (CID) by American Express and Discover, Holdings issued $1 billion of 7-5/8% senior notes due in 2011. The proceeds were used to repay the Company's revolving bank credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities . COMPANY DESCRIPTION Cablevision Systems Corporation is one of the nation's leading telecommunications and entertainment companies. The Company consists of the Cablevision NY Group (NYSE: CVC) and the Rainbow Media Group (NYSE: RMG). CVC is comprised of cable television operations serving approximately 3 million subscribers located in the New York metropolitan area, as well as Madison Square Garden, L.P., Radio City Entertainment, THE WIZ consumer electronics stores in 42 locations in the New York metropolitan area and Clearview Cinemas with 290 motion picture theatre screens in the New York metropolitan area. RMG is comprised of five national networks, Rainbow's interest in the national Fox Sports Net, and five Fox Sports Net regional sports channels outside the New York market. This earnings release, including the sections entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "2001/2002 Guidance", 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 or results 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, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industry in which it operates and the factors described in the Company's most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission and the Company's Proxy Statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. dated October October: see month. 10, 2000, as supplemented, including the sections entitled "Risk Factors" contained therein. The Company disclaims any obligation to update the forward-looking statements contained herein. Cablevision's Web site: www.cablevision.com CVC 1Q 2001 earnings announcement Webcast live at 10:30 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy RMG 1Q 2001 earnings announcement Webcast live beginning at approximately 11:15 a.m. EST Conference call dial-in number for CVC and RMG (212) 346-0204 Conference call replay number (800) 633-8284/reservation # 18470873 available through May 10th
CABLEVISION SYSTEMS CORPORATION
CONDENSED CONSOLIDATED OPERATIONS DATA
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
--------------------------
2001 2000
---- ----
Revenues, net $1,049,536 $1,048,224
========== ==========
Operating profit before depreciation and
amortization:
Cablevision NY Group 167,803 258,293
Rainbow Media Group 23,886 34,790
------- -------
Sub-total 191,689 293,083
Depreciation and amortization 247,946 233,352
------- -------
Operating income (loss) (56,257) 59,731
Other income (expense):
Interest expense, net (134,450) (130,778)
Gain on sale of cable assets, net 1,433,492 -
Gain on investments, net 214,579 -
Other items, net (43,244) (44,448)
------- -------
Income (loss) before income taxes 1,414,120 (115,495)
Income tax expense (286,245) -
-------- -------
Net income (loss) $ 1,127,875 $ (115,495)
========= ========
Basic net income (loss) per common share $ 6.37 $ (0.67)
========= ========
Diluted net income (loss) per common share $ 4.97 $ (0.67)
========= ========
Average number of common shares outstanding
(in thousands) 176,989 173,351
========= ========
CAPITALIZATION
(Dollars in thousands)
(Unaudited)
Actual Pro Forma(1)
March 31, March 31,
2001 2001
---------------------------
Cash $ 97,989 $ 708,337
========= =========
Bank debt 1,361,336 439,684
Collateralized indebtedness 705,902 1,412,902
Senior notes and debentures 3,690,149 3,690,149
Subordinated notes and debentures 1,050,560 1,050,560
Capital lease obligations and other debt 105,666 105,666
Redeemable preferred stock 1,544,294 1,544,294
---------- ----------
Debt and redeemable preferred $8,457,907 $8,243,255
=========== ===========
LEVERAGE
--------
Debt and redeemable preferred $8,457,907 $8,243,255
Less: investment securities(2)
and cash (1,730,944) (2,341,292)
----------- -----------
Net debt and redeemable preferred $6,726,963 $5,901,963
=========== ===========
Actual Pro Forma
Running Rate(3) Running Rate(3)
-------------- --------------
Consolidated Net Debt & Redeemable
Preferred/AOCF 7.0x 6.2x
(1) Includes proceeds of $825 million from MGM for a 20% interest in
Rainbow's four national cable networks.
(2) Fair market value of the securities monetized or to be monetized.
(3) For purposes of calculating leverage, AOCF for Madison Square
Garden is based on a trailing 12 months.
CABLEVISION SYSTEMS CORPORATION
CABLEVISION NY GROUP
Pro Forma Combined Operating Results
------------------------------------
(Dollars in thousands)
(Unaudited)
NET REVENUES
-------------
Three Months Ended March 31,
----------------------------- Pro Forma
2001 2001 2000 Percent
Actual Pro Forma Pro Forma Change
--------- --------- --------- --------
TELECOMMUNICATIONS:
Cable Operations $474,150 $474,150 $450,587 5.2%
Commercial Telephone LI 24,232 24,232 19,620 23.5%
--------- --------- ---------
Subtotal 498,382 498,382 470,207 6.0%
Consumer Modem 22,863 22,863 6,066 -
--------- --------- ---------
Subtotal 521,245 521,245 476,273 9.4%
New Media 25,538 25,538 18,382 38.9%
Eliminations(1) (3,796) (3,796) (2,260) (68.0)%
--------- ---------- ---------
Total
Telecommunications 542,987 542,987 492,395 10.3%
--------- ---------- ---------
MSG 216,899 216,899 224,298 (3.3)%
Rainbow NY 25,410 25,410 26,657 (4.7)%
Retail Electronics 150,863 150,863 136,656 10.4%
Theatres 18,449 18,449 17,994 2.5%
Other 188 188 179 5.0%
Eliminations(2) (36,654) (36,654) (31,399) (16.7)%
--------- ----------- --------- ------
Total Cablevision
NY Group $918,142 $918,142 $866,780 5.9%
========= =========== =========
OPERATING CASH FLOW
------------------- 2001 2000 Pro Forma
2001 AOCF AOCF Percent
Actual Pro Forma(3) Pro Forma(3) Change
-------- ---------- --------- -------
TELECOMMUNICATIONS:
Cable Operations $216,733 $215,822 $200,059 7.9%
Commercial Telephone LI 15,519 15,484 12,498 23.9%
--------- ---------- ---------
Subtotal 232,252 231,306 212,557 8.8%
Consumer Modem (18,238) (14,259) (10,581) (34.8)%
--------- ---------- ---------
Subtotal 214,014 217,047 201,976 7.5%
New Media (10,922) (2,486) 1,243 -
--------- ---------- ---------
Total
Telecommunications 203,092 214,561 203,219 5.6%
--------- ---------- ---------
MSG 8,063 15,368 17,591 (12.6)%
Rainbow NY (16,495) (15,855) (8,144) (94.7)%
Retail Electronics (17,634) (17,392) (17,888) 2.8%
Theatres (72) (49) 280 (117.5)%
Other (9,151) (9,151) (16,494) 44.5%
--------- ---------- ---------
Total Cablevision
NY Group $167,803 $187,482 $178,564 5.0%
========= ========== =========
(1) Represents intra-segment revenues.
(2) Represents inter-segment revenues.
(3) Excludes actual stock plan expense (income) of $19,679
and $(37,970) in the 2001 and 2000 periods,
respectively.
Note: The pro forma net revenues and adjusted operating cash flows
referred to above give effect to the disposition of cable
television systems in Ohio, Massachusetts and Kalamazoo and
corporate overhead that would otherwise have been absorbed by
them; the acquisition of cable television systems in Westchester
County, New York; the acquisition and disposition of certain
programming interests; the first quarter's portion of the $38.5
million charge, taken in the fourth quarter of 2000, for the
write off of consumer modem incentive costs previously deferred;
and the amortization in 2000 of certain purchase accounting
adjustments at MSG.
CABLEVISION SYSTEMS CORPORATION
CABLEVISION NY GROUP
CONDENSED COMBINED OPERATIONS DATA
(Dollars in thousands)
(Unaudited)
Three Months Ended
March 31,
-----------------------------
2001 2000
----------- -----------
Revenues, net $ 918,142 $ 942,986
=========== ===========
Operating profit before depreciation
and amortization 167,803 258,293
Depreciation and amortization 237,950 223,632
----------- -----------
Operating income (loss) (70,147) 34,661
Other income (expense):
Interest expense, net (121,474) (119,577)
Gain on sale of cable assets, net 1,433,492 -
Gain on investments, net 214,832 -
Other items, net (7,625) (678)
----------- -----------
Income (loss) before income taxes and
dividend requirements 1,449,078 (85,594)
Income tax expense (286,245) -
----------- -----------
Net income (loss) before dividend
requirements 1,162,833 (85,594)
Dividend requirements applicable to
preferred stock (43,629) (39,703)
----------- -----------
Net income (loss) $1,119,204 $ (125,297)
=========== ===========
CAPITALIZATION
(Dollars in thousands)
(Unaudited)
Actual Pro Forma
March 31, March 31,
2001 2001
------------ ------------
Cash $ 96,871 $ 539,371
=========== ===========
Senior debt 608,126 48,126
Senior notes and debentures 3,690,149 3,690,149
Subordinated notes and debentures 1,050,560 1,050,560
--------- ---------
Total cable debt 5,348,835 4,788,835
Redeemable preferred stock 1,544,294 1,544,294
--------- ---------
Total cable debt and redeemable
preferred 6,893,129 6,333,129
Other Debt:
Collateralized indebtedness 705,902 1,412,902
Less: investment securities(1) (690,197) (1,632,955)
MSG senior debt 334,047 334,047
Retail Electronics & Other 132,555 132,555
----------- -----------
Net debt and redeemable preferred $7,375,436 $6,579,678
=========== ===========
LEVERAGE
--------
Actual Pro Forma
------ ---------
Running Rate Running Rate
------------ ------------
Notes and Debentures Ratio (2) 6.1x 5.5x
Cable Debt & Redeemable Preferred/Cable
& Lightpath AOCF 7.5x 6.8x
(1) Fair market value of the securities monetized or to be monetized.
Investment securities include 44.3 million shares of AT&T common
stock, 10.8 million shares of Adelphia common stock and 11.2
million shares of Charter common stock.
(2) Reflects debt to cash flow ratio applicable under indentures
pursuant to which the notes and debentures were issued.
Cablevision Systems Corporation
CABLEVISION NY GROUP
Summary of Operating Statistics
-------------------------------
(Unaudited)
Pro Forma Pro Forma Pro Forma
March 31, December 31, March 31,
2001 2000 2000
---- ---- ----
Cable
-----
Homes Passed 4,307,443 4,298,192 4,221,244
Basic Subscribers 2,968,758 2,959,703 2,915,453
Subscriber Growth
(12 month pro forma) 1.8% 2.0% 2.3%
Basic Penetration 68.9% 68.9% 69.1%
Recurring Revenue
Per Subscriber $49.80 $47.37 $47.80
Pro Forma Quarterly
AOCF Margin 45.5% 44.5% 44.4%
----------------------------------------------------------------------
Optimum TV
----------
Homes Marketed 1,232,300 1,215,000 1,101,200
Customers 604,700 599,600 552,700
Penetration 49% 49% 50%
----------------------------------------------------------------------
Optimum Online
--------------
Homes Released 2,303,000 2,000,000 1,131,000
Customers 303,800 238,500 70,500
Penetration 13.2% 11.9% 6.2%
----------------------------------------------------------------------
Commercial Telephone -
Long Island Only
----------------------
Buildings on-net 628 595 498
Access Lines 68,670 66,280 53,045
Fiber Miles 36,835 35,215 34,000
Route Miles 1,032 998 948
----------------------------------------------------------------------
Commercial Telephone -
Developing
----------------------
Buildings on-net 275 245 115
Access Lines 25,625 12,580 6,655
Fiber Miles 5,095 4,540 3,165
Route Miles 165 33 12
----------------------------------------------------------------------
Residential Telephone
---------------------
Homes Marketed 151,625 146,900 129,590
Customers 12,355 11,990 10,175
Penetration 8.2% 8.2% 7.9%
----------------------------------------------------------------------
Three Months Ended March 31,
Cable Pro Forma Percent
Net Revenues (thousands) 2001 2000 Change
------------------------ ----- ----- -------
Recurring $435,089 $411,694 5.7%
PPV 11,183 12,281 (8.9)%
Advertising 14,871 14,984 (0.8)%
Other 13,007 11,628 11.8%
---------- ----------
Net Revenues $474,150 $450,587 5.2%
========== ==========
----------------------------------------------------------------------
Three Months Ended March 31,
----------------------------
Capital Expenditures
(thousands) 2001 2000
-------------------- ---- ----
Cable Operations $176,400 $157,219
Commercial Telephone,
Long Island 15,939 7,627
New Media 81,260 20,782
Retail Electronics 5,584 4,693
Rainbow NY 7,827 6,844
Other 42,019 5,590
-------- --------
Total Cablevision
NY Group $329,029 $202,755
======== ========
CABLEVISION SYSTEMS CORPORATION
RAINBOW MEDIA GROUP
Pro Forma Combined Operating Results
-----------------------------------
(Dollars in Thousands)
(Unaudited)
NET REVENUES Three Months Ended March 31,
------------ ---------------------------- Pro Forma
2001 2001 2000 Percent
Actual Pro Forma Pro Forma Change
------ ------------ --------- ---------
AMC 54,633 $54,633 $47,222 15.7%
Bravo/IFC 40,855 40,855 29,058 40.6%
Consolidated
Regional Sports 26,248 26,248 22,722 15.5%
------ ------ -------
Subtotal Core
Networks 121,736 121,736 99,002 23.0%
Developing/Other 18,520 18,520 16,435 12.7%
Sterling Digital - - - -
Eliminations(1) (4,114) (4,114) (4,180) 1.6%
------ ------- -------
TOTAL RMG $136,142 $136,142 $111,257 22.4%
======== ======== ========
OPERATING CASH FLOW Three Months Ended March 31,
------------------- ----------------------------
2001 2000 Pro Forma
2001 AOCF AOCF Percent
Actual Pro Forma(2) Pro Forma Change
------ ------------ --------- ---------
AMC $26,634 $26,179 $23,149 13.1%
Bravo/IFC 10,296 11,225 8,795 27.6%
Consolidated
Regional Sports 5,894 5,943 4,442 33.8%
------- ------- -------
Subtotal Core
Networks 42,824 43,347 36,386 19.1%
Developing/Other (13,075) (12,541) (4,443) (182.3)%
Sterling Digital (5,863) (4,719) - -
------- ------- -------
TOTAL RMG $23,886 $26,087 $31,943 (18.3)%
======= ======= =======
(1) Represents inter-segment revenues.
(2) Excludes actual stock plan expense (income) of $2,201 and
$(3,154) in the 2001 and 2000 periods, respectively.
Note: The pro forma net revenue and adjusted operating cash flows
referred to above give effect to the acquisitions of Fox Sports
Net Florida, MuchMusic USA and News 12 New Jersey in 2000.
----------------------------------------------------------------------
CAPITAL EXPENDITURES Three Months Ended March 31,
-------------------- ----------------------------
2001 2000
---- ----
Rainbow Media Group $1,791 $ 593
----------------------------------------------------------------------
NON-CONSOLIDATED REGIONAL SPORTS- Managed Businesses
----------------------------------------------------
100% of the company's affiliated entities net revenues
and AOCF are reflected below:
Three Months Ended March 31,
-----------------------------
Non-consolidated Regional Sports 2001 2000 Change
-------------------------------- ------ ----- ------
Revenues, net $49,499 $46,617 6.2%
AOCF $ 6,077 $ 5,198 16.9%
Note: Regional Sports includes Fox Sports Net Chicago, Fox Sports Net
Bay Area and Fox Sports Net New England in which Rainbow Media
Holdings holds a 30% attributable ownership interest.
----------------------------------------------------------------------
Viewing Subscribers Basic Subscribers
------------------- -----------------
March 31, March 31, March 31, March 31,
2001 2000 2001 2000
------ ------ ------- -------
SUBSCRIBERS (in thousands)
--------------
AMC 69,510 67,020 76,220 72,590
Bravo 46,810 40,100 62,070 54,050
IFC 17,840 11,520 50,100 36,330
WE: Women's Entertainment 24,000 19,370 40,040 31,360
MuchMusic USA 12,350 9,820 27,900 16,230
Consolidated Fox Sports (Florida &
Ohio) 7,520 7,140 8,060 7,600
Non-Consolidated Fox Sports Networks
(Bay Area, New England, Chicago) 10,200 9,690 11,180 10,680
Fox Sports Net 71,410 69,080 80,000 76,150
CABLEVISION SYSTEMS CORPORATION
RAINBOW MEDIA GROUP
CONDENSED COMBINED OPERATIONS DATA
(Dollars in thousands)
(Unaudited)
Three Months Ended
March 31,
-------------------
2001 2000
---- ----
Revenues, net $136,142 $110,460
======== ========
Operating profit before depreciation
and amortization 23,886 34,790
Depreciation and amortization 9,996 9,720
---------- ----------
Operating income 13,890 25,070
Other income (expense):
Interest expense, net (12,976) (11,201)
Other items, net (8,125) (2,375)
---------- ----------
Net income (loss) $ (7,211) $ 11,494
========= =========
CAPITALIZATION
(Dollars in thousands)
(Unaudited)
Actual Pro Forma(1)
March 31, March 31,
2001 2001
------------ ------------
Cash $ 1,118 $ 168,966
========== ==========
Note payable - parent(2) 295,500 -
AMC bank debt 361,652 -
Capital lease obligations & other 30,622 30,622
---------- -----------
Net Rainbow Media Group debt $687,774 $30,622
========== ==========
LEVERAGE
--------
Actual Pro Forma
Running Rate Running Rate
------------ -----------
Debt/AOCF 3.8x N/A
(1) Assumes the receipt of $825 million from MGM for an interest in
four national cable networks. Cash remaining in entities owned 20%
by MGM.
(2) Intercompany debt which was repaid from proceeds from MGM
transaction. Balance eliminates in the Cablevision Systems
Corporation consolidation and is therefore not included in the
leverage ratio.
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