Cablevision Systems Corporation Reports First Quarter 2002 Financial Results - Cablevision NY Group and Rainbow Media Group -.Business Editors/High Tech Writers 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 2, 2002 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 -- A 1.1% increase in cable subscribers year-over-year. For the first quarter, the company lost 7,000 subscribers compared to December 31, 2001. The New York City system accounted for 50% of the loss. That system had added 10,000 new subscribers in the fourth quarter 2001 following the loss of broadcast transmission facilities at the World Trade Center. As of April 30th, the overall year-to-date subscriber loss totaled 10,400. -- 6,900 new iO digital video customers for a total of 24,100 customers -- 53,000 new HSD customers added or 4,100 per week -- HSD penetration was 18% of homes released compared to 13% in March 2001 -- Advertising revenue rose 13% compared to the first quarter of 2001. Cablevision Systems Corporation today released financial results for the three months ended March 31, 2002 for its Cablevision NY Group (NYSE NYSE See: New York Stock Exchange :CVC See CSC. ) and 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) ) businesses. The three-month results and the percentage increases or decreases 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 elsewhere in this release, together with a description of the reconciling adjustments to GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). results. 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: net revenues for the quarter ended March 31, 2002, totaled $1.1 billion, a 7% pro forma increase compared to the prior year period. Consolidated 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 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. incentive and stock plans income or expense - "AOCF AOCF Association of Outplacement Consulting Firms ") totaled $218.9 million, a 12% pro forma increase from the prior year period. Telecommunications' net revenues rose to $593.1 million, a 13% pro forma increase and AOCF increased to $222.1 million, a 13% pro forma increase over the year-earlier period. Rainbow Media Group's Core Networks net revenues rose 15% to $138.6 million with AOCF increasing 17% to $50.9 million. Cablevision President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. 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:
adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. data businesses experienced an impressive start to 2002, reporting an increase of 13% in both revenue and cash flow in the first quarter. With the strength displayed by our core businesses, we are on track to meet the company's operating and financial objectives for this year and look forward to continued growth driven in part by our recent launch of iO, Cablevision's new digital video service, in New Jersey. "Rainbow Media Group's AMC (Advanced Mezzanine Card) See AdvancedTCA. , 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. , 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. and consolidated sports businesses continued to achieve excellent results, reporting a 15% increase in revenue and 17% increase in cash flow. This success is due largely to growth in subscribers and 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. fees as well as an expanding advertising revenue stream, all of which we expect will help drive RMG's revenue and cash flow growth throughout 2002," Mr. Dolan concluded. Cablevision NY Group Cablevision NY Group refers to the company's Consumer Services Consumer Services refers to the formulation, deformulation, technical consulting and testing of most consumer products, such as food, herbs, beverages, vitamins, pharmaceuticals, cosmetics, hair products, household cleaners, [paints, plastics, metals, waxes, coatings, minerals, , Business Services and other 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 assets as follows: -- Consumer Services: analog video The original video recording method that stores continuous waves of red, green and blue intensities. In analog video, the number of rows is fixed. There are no real columns, and the maximum detail is determined by the frequency response of the analog system. , digital video, high-speed-data (HSD HSD Human Services Department HSD High Speed Data HSD Hillsboro School District (Hillsboro, OR) HSD Hybrid Synergy Drive (Toyota/Lexus) HSD High School Diploma HSD Historical Society of Delaware ), residential 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 R&D/Technology -- Business Services: Lightpath Long Island, Lightpath developing markets and business 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. -- Other Businesses: Madison Square Garden Current arenas in the National Hockey League Western Conference Eastern Conference , THE WIZ, Clearview Clearview may refer to:
Cinemas, News12 Networks, MetroChannels and a 49.9% ownership interest in Northcoast Communications, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . Consumer Services Net revenues for the first quarter increased 12% on a pro forma basis over the year-earlier period to $560.3 million. AOCF for the three-month period rose 11% on a pro forma basis to $212.2 million, compared to the year-earlier period. Highlights include: -- A 1.1% increase in cable subscribers year-over-year. For the first quarter, the company lost 7,000 subscribers compared to December 31, 2001. The New York City system accounted for 50% of the loss. That system had added 10,000 new subscribers in the fourth quarter 2001 following the loss of broadcast transmission facilities at the World Trade Center. As of April 30th, the overall year-to-date subscriber loss totaled 10,400. -- 6,900 new iO digital video customers for a total of 24,100 customers -- 53,000 new HSD customers added or 4,100 per week -- HSD penetration was 18% of homes released compared to 13% in March 2001 -- Advertising revenue rose 13% compared to the first quarter of 2001. iO, Cablevision's new digital video offering was relaunched on April 17th with a new user interface and a new pricing structure that offers more options for consumers and makes the digital service even more affordable at $9.95 per month for the basic package. The service is now available to 150,000 homes in New Jersey and more than 550,000 homes on Long Island. By 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. the service is expected to be available to more than 2,000,000 homes in the New York area. Business Services Lightpath's businesses throughout 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. achieved a 27% increase in net revenues to $36.8 million. AOCF for the first quarter more than doubled to $9.9 million from the prior year period. Highlights include: -- A 47% increase in the number of buildings on-net Connected to the Internet, or connected to a LAN or WAN. Contrast with off-net. -- A 40% increase in access lines -- A 22% increase in transmission and access line revenue. 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 2002, net revenue totaled $207.1 million, a 4.5% decline from the prior year period. AOCF for the quarter was $10.0 million compared to $15.4 million in the prior year period. The lower revenue and AOCF were primarily due to higher player compensation, lower advertising revenue, and a decrease in affiliate fee revenue and broadcast revenue related to the loss of the Yankees telecasts. This was partly offset by lower production expenses at MSG Network. Retail Electronics THE WIZ recorded net revenue of $139.5 million, an 8% decrease for the first quarter. The AOCF deficit for the first quarter was $20.6 million compared to a $17.4 million AOCF deficit for the prior year period. Theatres For the three-month period ended March 31, 2002, net revenue for Clearview Cinemas was $19.3 million, a 4% increase from the year-earlier period. The AOCF deficit for the quarter was $0.3 million, compared to an AOCF deficit of $0.1 million in the year-earlier period. Rainbow NY Rainbow NY is comprised primarily of the five local News12 Networks operating in Long Island, New Jersey, Westchester Westchester is the name of some places in the United States of America:
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 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 recorded an AOCF deficit of $13.5 million in the first quarter of 2002 compared to an AOCF deficit of $15.9 million in the prior year period. The reduction in deficit was primarily due to increased advertising and affiliate revenue for the MetroChannels. Other Other costs for the quarter amounted to $13.6 million for the first quarter of 2002 compared to $9.2 million in the prior year period and include corporate and developmental expenses to support the New York metropolitan area operations. Rainbow Media Group Rainbow Media Group 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, The Independent Film Channel, WE: Women's Entertainment, MuchMusic USA and Mag Rack A frame or cabinet into which hardware components are mounted. Equipment may be bolted into the rack (see rack mounted), or placed on shelves. Stereo and home theater racks are cabinets with shelves designed to accommodate VCRs, CD, DVD and cassette decks, receivers, amplifiers and , as well as Rainbow's interests in the Fox Sports Net national service and Rainbow's ownership interests in five regional Fox Sports Net channels outside the New York market. These businesses are owned through Rainbow Media Holdings, Inc. which is 77.5% owned by Cablevision. As now required by the FASB's EITF EITF Emerging Issues Task Force EITF Edinburgh International Television Festival EITF Europe International Taekwon-Do Federation No. 01-09, the Company has reclassified the amortization of deferred 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. fees as a reduction to revenues versus expensing such costs as an element of selling, general and administrative expenses. Amortization of deferred carriage fees has been reclassified for the 2001 period, with no effect on AOCF or net income (loss). The revenue impact for Rainbow Media Group is $3.5 million for the first quarter and $16.5 million for the full year. American Movie Classics (AMC) AMC's first quarter 2002 net revenues increased 8% to $59.0 million and AOCF rose 14% to $29.9 million. The strong revenue and cash flow growth compared to the year-earlier period was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a 4% increase in viewing subscribers, affiliate rate increases and $7.8 million of sponsorship revenue, representing a 56% increase from the prior year period. Bravo/The Independent Film Channel (IFC) Bravo/IFC's first quarter 2002 net revenues increased 18% to $47.3 million and AOCF grew 15% to $12.9 million. Highlights include: -- A 21% increase in Bravo's viewing subscribers -- A 67% increase in IFC's viewing subscribers -- A 22% increase from the year-earlier period in Bravo's advertising revenue to $15.2 million. Consolidated 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. First quarter 2002 net revenues rose 24% to $32.3 million, and AOCF increased 36% to $8.1 million for these properties, primarily due to higher affiliate fees. 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 $52.6 million, and AOCF increased 10% to $6.7 million. Viewing subscribers totaled 10.6 million representing a 4% increase from the prior year period. Non-Consolidated Fox Sports Net Fox Sports Net's viewing subscribers totaled 73.7 million at the end of the quarter, a 3% increase from the prior year period. 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 $26.3 million represented a 65% increase compared to the prior year period due to increases of 15 million viewing subscribers for WE: Women's Entertainment and 10 million viewing subscribers for MuchMusic USA as compared to March 2001. The AOCF deficit for the three-month period was $10.0 million, a 20% decline compared to an AOCF deficit of $12.5 million in the year-earlier period. The decrease in the AOCF deficit was primarily attributable to lower losses at WE:Women's Entertainment. Mag Rack Mag Rack develops special interest video-on-demand The ability to deliver a movie, sports event or other video program to a TV set whenever the customer requests it. Video-on-demand (VOD) typically refers to free and paid programs from the cable TV companies or the telephone companies that offer video over DSL lines. content offered to cable companies. Mag Rack presently offers 22 video magazines and anticipates having between 35 and 40 distributed by year end. The AOCF deficit for the first quarter was $6.0 million. 2002 Outlook Cablevision's Board has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: , subject to management's approval, making an additional $42 million investment in Northcoast Communications primarily to facilitate a pilot rollout of a wireless PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. service in the New York City New York City: see New York, city. 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. area. This should not be interpreted Translated from source code into machine code one line at a time. See interpreted language and interpreter. interpreted - interpreter as a full scale deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. of the service throughout the New York area. Rather, it is a very focused, contained pilot program. The company affirms all of its guidance for 2002 for Cablevision NY Group and Rainbow Media Group as disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in January January: see month. but for Madison Square Garden, which 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, forecasts AOCF between $90 million and $95 million versus the $100 million previously disclosed. COMPANY DESCRIPTION Cablevision Systems Corporation is one of the nation's leading entertainment and telecommunications companies See telecom company. . Its cable television operations serve 3 million households located in the New York metropolitan area. The company's advanced telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. offerings include its Lightpath integrated business communications services; its Optimum-branded high-speed Internet See broadband. service and iO: Interactive Optimum, the company's newly introduced digital television offering. Cablevision's Rainbow Media Holdings, Inc. operates programming businesses including American Movie Classics, Bravo, The Independent Film Channel and other national and regional services. In addition, Rainbow is a 50 percent partner in Fox Sports Net. Cablevision also owns a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail and operates Madison Square Garden and its sports teams including the Knicks and Rangers. The company operates New York's famed Radio City Music Hall and owns and operates THE WIZ consumer electronics stores and Clearview Cinemas in the New York metropolitan area. Additional information about Cablevision Systems Corporation is available on the Web at www.cablevision.com. 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: "2002 Outlook," 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 filings with the Securities and Exchange Commission, including the sections entitled "Risk Factors" and "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" contained therein. The company disclaims any obligation to update the forward-looking statements contained herein. Cablevision's Web site: www.cablevision.com CVC 1Q 2002 earnings announcement Webcast live at 9:30 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy RMG 1Q 2002 earnings announcement Webcast live beginning at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10:15 a.m. EST Conference call dial-in number for CVC and RMG (973) 872-3100 Conference call replay number (973) 341-3080 / reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. No. 3183975 until May 9th
CABLEVISION SYSTEMS CORPORATION
CONDENSED CONSOLIDATED OPERATIONS DATA AND PRO FORMA RECONCILIATION
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
------------------------------
2002 2001
---------- ----------
Pro forma revenues, net $1,102,170 $1,027,303
Elimination of deferred
revenue amortization relating
to At Home warrants - 18,705
---------- ----------
Revenues, net $1,102,170 $1,046,008
========== ==========
Pro forma AOCF $ 218,922 $ 194,864
Elimination of deferred
revenue amortization
relating to At Home warrants - 18,705
Stock plan income (expense) 18,014 (18,857)
Long-term incentive plan
expense (6,104) (3,023)
---------- ----------
Operating profit before
depreciation and amortization 230,832 191,689
Depreciation and amortization(a)(211,070) (247,946)
---------- ----------
Operating income (loss) 19,762 (56,257)
Other income (expense):
Interest expense, net (119,158) (134,450)
Gain on sale of cable assets,
net - 1,433,492
Gain (loss) on investments, net (418,450) 214,832
Gain (loss) on derivative
contracts, net 295,539 (965)
Minority interests (47,109) (27,747)
Other items, net (15,029) (14,785)
---------- ----------
Income (loss) before income
taxes (284,445) 1,414,120
Income tax (expense) benefit 34,815 (286,245)
---------- ----------
Net income (loss) $ (249,630) $1,127,875
========== ==========
INCOME (LOSS) PER SHARE:
CNYG Common Stock
Income (loss) applicable to
common stock $(254,970) $1,136,826
========== ==========
Basic
Basic net income (loss) per
common share $ (1.45) $ 6.49
========== ==========
Basic weighted average common
shares (in thousands) 175,443 175,043
========== ==========
Diluted
Diluted net income (loss) per
common share $ (1.45) $ 6.32
========== ==========
Diluted weighted average
common shares (in thousands) 175,443 178,569
========== ==========
RMG Tracking Stock
Income (loss) applicable to
common stock $ 5,340 $ (8,951)
========== ==========
Basic
Basic net income (loss) per
common share $ .06 $ (.10)
========== ==========
Basic weighted average common
shares (in thousands) 94,738 87,521
========== ==========
Diluted
Diluted net income (loss) per
common share $ .06 $ (.10)
========== ==========
Diluted weighted average
common shares (in thousands) 96,541 87,521
========== ==========
(a) The 2001 period includes amortization of approximately $72,700
relating to intangibles no longer amortized due to the
implementation, in 2002, of a new accounting statement (FAS
142) which addresses the assessment and amortization of
intangible assets including goodwill. No impairment losses
were recorded in connection with this implementation.
CABLEVISION SYSTEMS CORPORATION
CONDENSED CONSOLIDATED OPERATIONS DATA AND PRO FORMA RECONCILIATION
(Dollars in thousands, except per share data)
(Unaudited)
PRO FORMA ADJUSTMENTS
---------------------
The following is a description of the pro forma adjustments
included in this earnings release:
-- Elimination of deferred revenue amortization relating to At
Home warrants. Under GAAP, we amortized into revenue an
allocation of the initial value of certain warrants we
received from At Home Corporation. In connection with the
termination of the At Home agreement, we have eliminated this
revenue recognition from the 2001 period.
-- Long-term incentive plan income (expense). This adjustment
eliminates the income or expense associated with contingent
long-term incentive plan awards for senior executives that
vest over varying periods.
-- Stock plan income (expense). This adjustment eliminates the
income or expense associated with vesting, and marking to
market, of stock appreciation rights granted under our
employee stock option plan.
CAPITALIZATION
--------------
Actual
March 31,
2002
----------
Cash $ 201,598
==========
Bank debt 1,496,375
Collateralized indebtedness 1,586,406
Senior notes and debentures 3,691,077
Subordinated notes and debentures 599,073
Capital lease obligations 99,512
Redeemable preferred stock 1,544,294
----------
Debt and redeemable preferred stock $9,016,737
==========
LEVERAGE
Debt and redeemable preferred stock $9,016,737
Less: collateralized indebtedness(a) and cash (1,788,004)
----------
Net debt and redeemable preferred stock $7,228,733
==========
Actual
Running
Rate(b)
----------
Consolidated Net Debt & Redeemable Preferred/pro
forma AOCF 7.9x
(a) Collateralized indebtedness is excluded for the purpose of
the leverage calculation as the debt is collateralized by
investment securities.
(b) For purposes of calculating leverage, AOCF for Madison Square
Garden is based on a trailing 12 months.
CABLEVISION SYSTEMS CORPORATION
CABLEVISION NY GROUP
COMBINED OPERATING RESULTS
(Dollars in thousands)
(Unaudited)
NET REVENUES Three Months Ended March 31,
----------------------------
2002 2001 Pro Forma
Actual Pro Forma Change
-------- --------- ---------
TELECOMMUNICATIONS:
Consumer Services $560,324 $499,165 12.3%
Business Services 36,805 28,913 27.3%
Eliminations(a) (4,069) (3,796) -
-------- --------
Total Telecommunications 593,060 524,282 13.1%
-------- --------
MSG 207,097 216,899 (4.5)%
Rainbow NY 26,935 25,410 6.0%
Retail Electronics 139,542 150,863 (7.5)%
Theatres 19,269 18,449 4.4%
Other - 188 -
Eliminations(b) (39,660) (36,654) (8.2)%
-------- --------
Total Cablevision NY
Group $946,243 $899,437 5.2%
======== ========
(a) Represents intra-segment revenues.
(b) Represents inter-segment revenues.
Note: The pro forma net revenues referred to above give effect to
the exclusion of deferred revenue amortization relating to the
At Home warrants.
OPERATING CASH FLOW Three Months Ended March 31,
------------------------------
2001
2002 2002 Pro Forma Pro Forma
Actual AOCF(a) AOCF(a) Change
-------- -------- -------- ---------
TELECOMMUNICATIONS:
Consumer Services $219,933 $212,215 $191,467 10.8%
Business Services 10,815 9,903 4,389 -
-------- -------- --------
Total
Telecommunications 230,748 222,118 195,856 13.4%
-------- -------- --------
MSG 10,746 10,012 15,368 (34.9)%
Rainbow NY (11,921) (13,496) (15,855) 14.9%
Retail Electronics (20,678) (20,639) (17,392) (18.7)%
Theatres (250) (271) (49) -
Other (13,637) (13,637) (9,151) (49.0)%
-------- -------- --------
Total Cablevision NY
Group $195,008 $184,087 $168,777 9.1%
======== ======== ========
(a) Excludes actual stock plan expense (income) of $(15,171) and
$17,272 respectively, and actual long-term incentive plan
expense of $4,250 and $2,407, respectively, in the three
months ended March 31, 2002 and 2001. The long-term incentive
plan consists of cash awards to senior executives of the
company that vest over varying periods, some of which are
performance based.
Note: The pro forma adjusted operating cash flows referred to
above give effect to the exclusion of deferred revenue
amortization relating to At Home warrants and stock plan and
long-term incentive plan income or expense.
CABLEVISION SYSTEMS CORPORATION
CABLEVISION NY GROUP
CONDENSED COMBINED OPERATIONS DATA AND PRO FORMA RECONCILIATION
(Dollars in thousands)
(Unaudited)
Three Months Ended March 31,
----------------------------
2002 2001
--------- ---------
Pro forma revenues, net $ 946,243 $ 899,437
Elimination of deferred revenue
amortization relating to At Home
warrants - 18,705
--------- ---------
Revenues, net $ 946,243 $ 918,142
========= =========
Pro forma AOCF $ 184,087 $ 168,777
Elimination of deferred revenue
amortization relating to At Home
warrants - 18,705
Stock plan income (expense) 15,171 (17,272)
Long-term incentive plan expense (4,250) (2,407)
--------- ---------
Operating profit before
depreciation and amortization 195,008 167,803
Depreciation and amortization (198,007) (237,950)
--------- ---------
Operating loss (2,999) (70,147)
Other income (expense):
Interest expense, net (118,438) (121,474)
Gain on sale of cable assets, net - 1,433,492
Gain (loss) on investments, net (418,450) 214,832
Gain (loss) on derivative
contracts, net 295,539 (965)
Other items, net (12,466) (6,660)
--------- ---------
Income (loss) before income taxes (256,814) 1,449,078
Income tax benefit (expense) 36,111 (286,245)
--------- ---------
Net income (loss) before dividend
requirements (220,703) 1,162,833
Dividend requirements applicable
to preferred stock (43,629) (43,629)
--------- ---------
Net income (loss) (264,332) 1,119,204
Net income or loss attributed to
parties other than Cablevision
Systems Corporation shareholders 9,362 17,622
--------- ---------
Net income (loss) attributed to
Cablevision Systems Corporation
shareholders $(254,970) $1,136,826
========= ==========
CAPITALIZATION
-------------- Actual
March 31,
2002
----------
Cash $ 65,523
==========
Senior debt 1,124,082
Senior notes and debentures 3,691,077
Subordinated notes and debentures 599,073
Redeemable preferred stock 1,544,294
Other Debt:
Collateralized indebtedness 1,586,406
MSG senior debt 243,458
Retail Electronics & Other 98,113
----------
Debt and redeemable preferred stock 8,886,503
Less: collateralized indebtedness(a) and cash (1,651,929)
----------
Net debt and redeemable preferred stock $7,234,574
==========
LEVERAGE
-------- Actual
Running
Rate
----------
Notes and Debentures Ratio(b) 5.9x
(a) Collateralized indebtedness is excluded for the purpose of the
leverage calculation as the debt is collateralized by
investment securities.
(b) Reflects debt to cash flow ratio applicable under indentures
pursuant to which the notes and debentures were issued. The
Restricted Group annualized running rate cash flow for March
31, 2002 is $942,000.
Cablevision Systems Corporation
CABLEVISION NY GROUP
SUMMARY OF PRO FORMA OPERATING STATISTICS
(Unaudited)
March 31, December 31, March 31,
2002 2001 2001
--------- --------- ---------
CONSUMER SERVICES
-----------------
Homes Passed 4,344,095 4,337,060 4,307,440
========= ========= =========
Basic Video Customers 3,000,950 3,007,955 2,968,760
New Services Customers 596,985 537,240 316,155
--------- --------- ---------
Total Revenue
Generating Units 3,597,935 3,545,195 3,284,915
========= ========= =========
Basic Video Penetration 69.1% 69.4% 68.9%
----------------------------------------------------------------------
iO - Digital Video
------------------
Homes Released 685,930 550,000 -
Customers 24,100 17,200 -
Penetration 3.5% 3.1% -
----------------------------------------------------------------------
Optimum Online -
High-Speed Data
----------------
Homes Released 3,127,270 2,974,840 2,303,000
Customers 559,765 506,675 303,800
Penetration 17.9% 17.0% 13.2%
Average Monthly Revenue
per Customer $ 33.24 $ 30.50 $ 28.18
----------------------------------------------------------------------
Optimum Telephone-
Residential
------------------
Homes Marketed 157,320 157,320 151,625
Customers 13,120 13,365 12,355
Penetration 8.3% 8.5% 8.2%
Average Monthly Revenue
per Customer $ 59.40 $ 61.69 $ 62.91
----------------------------------------------------------------------
Consumer Revenues
($ millions, except per
subscriber data)
-----------------------
Recurring Video $ 459 $ 446 $ 435
PPV 12 11 11
Advertising 17 22 15
Other (a) 13 16 13
--------- --------- ---------
Total Video Revenues 501 495 474
High Speed Data 57 41 23
Residential Telephone &
Other 2 3 2
--------- --------- ---------
Total Consumer Revenue $ 560 $ 539 $ 499
========= ========= =========
Recurring Revenue per
Video Customer (b) $ 51.40 $ 49.11 $ 49.80
AOCF Margin 37.9% 37.1% 38.4%
----------------------------------------------------------------------
BUSINESS SERVICES
-----------------
Buildings on-net 1,330 1,240 903
Access Lines 132,095 122,075 94,295
Fiber Miles 58,295 54,960 41,930
Route Miles 1,447 1,370 1,100
AOCF Margin 26.9% 28.2% 15.2%
----------------------------------------------------------------------
Capital Expenditures
($ millions) Three Months Ended March 31,
-------------------- ----------------------------
2002 2001
----------------------------
Consumer Services $ 195,923 $ 224,841
Business Services 28,212 48,758
Retail Electronics 2,278 5,584
Rainbow NY 20,358 7,827
Other 10,727 42,019
--------- ---------
Total Cablevision NY
Group $ 257,498 $ 329,029
========= =========
(a) Other Consumer revenue includes installation revenue, guide
revenue, and other product offerings
(b) Recurring revenue per video subscriber includes only monthly
subscription revenue for analog and digital video services
CABLEVISION SYSTEMS CORPORATION
RAINBOW MEDIA GROUP
COMBINED OPERATING RESULTS
(Dollars in thousands)
(Unaudited)
NET REVENUES Three Months Ended March 31,
------------ ----------------------------
2002 2001
Actual Actual Change
--------- --------- ------
AMC $ 58,964 $ 54,577 8.0%
Bravo/IFC 47,289 40,122 17.9%
Consolidated Regional Sports 32,306 26,131 23.6%
--------- ---------
Subtotal Core Networks 138,559 120,830 14.7%
Developing/Other 26,275 15,898 65.3%
Mag Rack 27 - 100.0%
Eliminations(a) (4,410) (4,114) (7.2)%
--------- ---------
TOTAL RMG $ 160,451 $ 132,614 21.0%
========= =========
OPERATING CASH FLOW Three Months Ended March 31,
------------------- ---------------------------------
2002 2002 2001
Actual AOCF(b) AOCF(b) Change
------- ------- ------- ---------
AMC $29,988 $29,872 $26,179 14.1%
Bravo/IFC 13,143 12,908 11,225 15.0%
Consolidated Regional
Sports 8,372 8,097 5,943 36.2%
------- ------- -------
Subtotal Core
Networks 51,503 50,877 43,347 17.4%
Developing/Other (9,771) (10,029) (12,541) 20.0%
Mag Rack (5,908) (6,013) (4,719) (27.4)%
------- ------- -------
TOTAL RMG $35,824 $34,835 $26,087 33.5%
======= ======= =======
(a) Represents inter-segment revenues.
(b) Excludes stock plan expense (income) of $(2,843) and $1,585
respectively, and long-term incentive plan expense of $1,854
and $616, respectively, in the three months ended March 31,
2002 and 2001. The long-term incentive plan consists of cash
awards to senior executives of the company that vest over
varying periods, some of which are performance based.
CABLEVISION SYSTEMS CORPORATION
RAINBOW MEDIA GROUP
COMBINED OPERATING RESULTS
(Dollars in thousands)
(Unaudited)
CAPITAL EXPENDITURES Three Months Ended March 31,
-------------------- ----------------------------
2002 2001
----------------------------
Rainbow Media Group $3,538 $1,791
----------------------------------------------------------------------
NON-CONSOLIDATED REGIONAL SPORTS - Managed Businesses
------------------------------------------------------
100% of these affiliated entities'
net revenues and AOCF are reflected below:
Three Months Ended March 31,
----------------------------
Non-consolidated
Regional Sports 2002 2001 Change
---------------- ------- ------- ------
Revenues, net $52,557 $49,499 6%
AOCF $ 6,685 $ 6,077 10%
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% effective ownership interest.
----------------------------------------------------------------------
Viewing Subscribers Basic Subscribers
------------------- -----------------
March 31, March 31,
------------------- -----------------
2002 2001 2002 2001
---- ---- ---- ----
SUBSCRIBERS(thousands)
-----------
AMC 72,100 69,510 79,100 76,220
Bravo 56,500 46,810 70,300 62,070
IFC 23,000 13,800 60,500 46,100
WE: Women's
Entertainment 39,000 24,000 61,100 40,040
MuchMusic USA 22,800 12,350 55,500 27,900
Consolidated
Regional Sports
(Florida &
Ohio) 7,800 7,520 8,400 8,060
Non-Consolidated Fox
Sports Networks
(Bay Area, New
England, Chicago) 10,600 10,200 11,600 11,180
Fox Sports Net 73,700 71,410 82,000 80,000
CABLEVISION SYSTEMS CORPORATION
RAINBOW MEDIA GROUP
CONDENSED COMBINED OPERATIONS DATA AND PRO FORMA RECONCILIATION
(Dollars in thousands)
(Unaudited)
Three Months Ended March 31,
------------------------------
2002 2001
-------- --------
Revenues, net $160,451 $132,614
======== ========
Pro forma AOCF $ 34,835 $ 26,087
Stock plan income
(expense) 2,843 (1,585)
Long-term incentive plan
expense (1,854) (616)
-------- ---------
Operating profit before
depreciation and
amortization 35,824 23,886
Depreciation and
amortization (13,063) (9,996)
-------- ---------
Operating income 22,761 13,890
Other income (expense):
Interest expense, net (720) (12,976)
Other items, net (2,563) (8,125)
-------- ---------
Income (loss) before
income taxes 19,478 (7,211)
Income tax expense (1,296) -
-------- ---------
Net income (loss) 18,182 (7,211)
Net income or loss
attributed to parties
other than Cablevision
Systems Corporation
shareholders (12,842) (1,740)
-------- ---------
Net income (loss)
attributed to Cablevision
Systems Corporation
shareholders $ 5,340 $ (8,951)
========= ==========
CAPITALIZATION
--------------
Actual
March 31,
2002
----------
Cash $136,075
==========
Rainbow Media Group senior debt 106,000
Capital lease obligations 24,234
----------
Total Rainbow Media Group debt $130,234
==========
--30--ac/sw/ny*
CONTACT: Cablevision Systems Corporation
Charles Schueler
Senior Vice President Media and Community Relations
516/803-1013
Frank J. Golden
Senior Vice President Investor Relations
516/803-2270
KEYWORD: NEW YORK
INDUSTRY KEYWORD: ENTERTAINMENT TELECOMMUNICATIONS
TELEVISION/RADIO EARNINGS
SOURCE: Cablevision Systems Corporation
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