Cablevision Systems Corporation Reports First Quarter 2005 Results; Continued Strong Customer Demand for Cablevision's Services Drives Increases in Consolidated Revenue and AOCF.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. -- 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 (NYSE NYSE See: New York Stock Exchange :CVC See CSC. ) today reported financial results for the first quarter ended March 31, 2005. 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 revenue grew 6% to over $1.2 billion, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased $69.9 million to $74.9 million, and 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. (AOCF AOCF Association of Outplacement Consulting Firms )* grew 30% to $353.7 million, all as compared to the year-earlier period. The company's results reflect strong revenue growth in the company's Telecommunications Services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. segment as well as revenue growth at AMC (Advanced Mezzanine Card) See AdvancedTCA. , 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 WE networks, partially offset by lower revenue at Other Programming entities within the Rainbow segment and Madison Square Garden Current arenas in the National Hockey League Western Conference Eastern Conference . Highlights for the first quarter include: --Basic 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. gains for the fourth consecutive quarter in Cable Television --Revenue Generating Unit (RGU RGU The Robert Gordon University (Aberdeen, Scotland) RGU Responsible Governmental Unit RGU Revenue-Generating Unit ) growth of over 341,000 new units during the quarter resulting from growth in video, high-speed high-speed 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 and voice customers --More than 1.2 million RGUs added across Cable Television's services from Q1'04 --Cable Television net revenue growth of 15% and AOCF growth of 19% 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:
best - (superlative of `good') having the most positive qualities; "the best film of the year"; "the best solution"; "the best time for growth in the period." "Rainbow Media's AMC, IFC, and WE also had a solid first quarter. This was driven by a significant increase in advertising revenue, principally at AMC, which experienced its strongest ratings quarter ever," concluded Mr. Dolan. Results from Continuing Operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the The operating results of FSN (Full-Service Network) A communications network that provides shopping, movies on demand and access to databases and a variety of interactive services. Ohio, FSN Florida FSN Florida, formerly Fox Sports Net Florida, is a television channel that shows local sports coverage in the state of Florida. It is owned by News Corp. along with Sun Sports. and Rainbow DBS's distribution operations are included in discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and are not presented in the table below. The VOOM Voom HD was a direct broadcast satellite television provider serving the United States. It was a competitor to the established DirecTV and Dish Network systems. Voom was operated by Rainbow DBS Company, a subsidiary of Cablevision. 21 HD Originals are included in the Rainbow segment for all periods presented. Segment results for the periods ended March 31, 2005 and March 31, 2004 are as follows:
Operating
$ millions Revenue income (loss) AOCF
--------------------------------------------------
2005 2004 2005 2004 2005 2004
--------------------------------------------------
Telecommunications $851.1 $740.1 $111.7 $84.8 $325.4 $275.0
Rainbow 200.5 223.9 4.7 8.0 39.3 41.8
MSG 179.5 204.5 (11.9) (34.8) 3.3 (19.8)
Other (including
Eliminations) (17.9) (21.9) (29.6) (53.0) (14.3) (24.1)
--------------------------------------------------
Total Company $1,213.2 $1,146.6 $74.9 $5.0 $353.7 $272.9
--------------------------------------------------
* Adjusted operating cash flow ("AOCF"), a non-GAAP financial measure, is defined as operating income (loss) before depreciation and amortization, excluding employee stock plan charges or credits and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. or credits. Please refer to page 4 for a discussion of our use of AOCF as a non-GAAP financial measure and page 5 for a reconciliation of AOCF to operating income and net loss. Telecommunications Services - Cable Television and Lightpath Telecommunications Services includes Cable Television -- the company's "Optimum" branded video, high-speed data, and voice residential and commercial services offered over its cable infrastructure -- and its "Lightpath" branded, fiber-delivered commercial data and voice services. First quarter Telecommunications Services net revenues rose 15% to $851.1 million, operating income increased 32% to $111.7 million, and AOCF increased 18% to $325.4 million, all as compared to the year-earlier period. Cable Television Cable Television includes the results of 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. for business, previously reported as part of Lightpath operations. Prior periods have been reclassified for comparative purposes. Cable Television first quarter net revenues increased 15% to $813.5 million, operating income increased 29% to $120.5 million and AOCF rose 19% to $311.3 million, each compared to the year-earlier period. The increases in revenue, operating income, and AOCF reflect the addition of over 1.2 million Revenue Generating Units from the first quarter 2004 resulting from growth in basic video, digital video, high-speed data, and voice customers. Highlights include: --Basic video customers up 21,800 or 0.7% from December December: see month. and 40,927 or 1.4% from March 2004 --iO: Interactive Optimum digital video customers up 139,928 or 9% from December and 567,234 or 54% from March 2004 --Optimum Online high-speed data customers up 88,038 or 7% from December and 311,649 or 28% from March 2004 --Optimum Voice customers up 91,792 or 34% from December and 293,666 from March 2004, a four-fold Adj. 1. four-fold - having four units or components; "quadruple rhythm has four beats per measure"; "quadruplex wire" quadruple, quadruplex, quadruplicate, fourfold increase --Revenue Generating Units up 341,148 or 6% from December and 1,211,832 or 23% from March 2004 --Cable RPS rps abbr. revolutions per second of $91.18, up $2.85 or 3% from December and $11.35 or 14% from March 2004 --Advertising revenue up 12% from March 2004 --AOCF margin of 38.3% compared to 37.3% in March 2004 Lightpath For the first quarter, Lightpath net revenues increased 22% to $47.7 million, operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. increased 5% to $8.7 million and AOCF increased 14% to $14.1 million, each as compared to the prior year period. The revenue and AOCF increases of 22% and 14%, respectively, are primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to revenue growth in data services over Lightpath's fiber infrastructure. The increase in Lightpath's operating loss is primarily due to an increase in depreciation expense compared to the prior year period. Lightpath revenue also includes Optimum Voice call completion activity, which has no impact on AOCF. Rainbow Rainbow consists of our AMC, IFC and WE national programming services as well as Other Programming that includes: FSN 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. , FSN Bay Area, fuse, 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 , News 12 Networks, MetroChannels, IFC Entertainment, VOOM 21 HD Originals, Rainbow Network Communications, Rainbow Advertising Sales Corp. and other Rainbow developmental ventures. First quarter Rainbow net revenues decreased 10% to $200.5 million, operating income decreased 41% to $4.7 million and AOCF decreased 6% to $39.3 million, all compared to the year-earlier period. AMC/IFC/WE First quarter net revenues increased 7% to $135.0 million, operating income increased 19% to $47.8 million and AOCF increased 4% to $63.2 million, each compared to the prior year period. First quarter results reflect: --A 21% increase in advertising revenue driven by higher sellout sellout The distribution of all the securities in a new issue by the selling group. rates, offset in part by higher marketing and production expenses --AMC primetime ratings increase of 5% season-to-date --Viewing subscriber increases of 11% at IFC, 6% at WE and 2% at AMC Other Programming First quarter net revenues decreased 32% to $72.3 million, operating loss increased to $43.1 million from $32.3 million, and the AOCF deficit increased to $23.9 million from $18.8 million, all as compared to the prior year period. The decrease in revenue is primarily due to the loss of professional sports The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. content at FSN Chicago as well as the timing of certain 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. settlements received by the FSN networks in the first quarter of 2004. The increased AOCF deficit and operating loss primarily reflect the lower revenue at the FSN networks, partially offset by lower expenses at the VOOM 21 HD Originals and MetroChannels. Madison Square Garden Madison Square Madison Square is a neighborhood on the East Side of the New York City borough of Manhattan, centered on a 6.8 acre (2.75 Hectare) public park in the New York City borough of Manhattan, named for James Madison, fourth President of the United States and co-author of the United Garden's businesses include: MSG MSG: see glutamic acid. Network, FSN 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 , 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 . Madison Square Garden's first quarter net revenue declined 12% to $179.5 million from $204.5 million in the first quarter of 2004. Operating loss decreased to $11.9 million from a loss of $34.8 million and AOCF increased to $3.3 million from a deficit of $19.8 million, both as compared to the year-earlier period. MSG's first quarter results are primarily impacted by: --The loss of NHL NHL Non-Hodgkin's lymphoma, see there hockey  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. games during the period which resulted in
reduced revenues, more than offset by certain expense savings--Higher Knicks ticket revenues and revenue gains at Radio City Entertainment --Reduced Knicks luxury tax expense compared to the year-earlier period Consolidated Results Consolidated results exclude FSN Ohio, FSN Florida, and Rainbow DBS's distribution operations, which are reflected in discontinued operations for all periods presented. Consolidated first quarter results compared to the prior year period are as follows: --Net revenues increased 6% to $1.2 billion, resulting from continued customer growth in Cable Television as well as revenue growth at AMC, IFC and WE networks, partially offset by lower revenues in Other Programming and at Madison Square Garden. --Operating income totaled $74.9 million compared to $5.0 million and consolidated AOCF increased 30% to $353.7 million. The increases in operating income and AOCF result from revenue growth in the Telecommunications Services segment, the expense reductions at Madison Square Garden discussed above, and decreases in other corporate general and administrative expenses. 2005 Outlook The company affirms the previously issued full year 2005 guidance outlined below: Cable Television ---------------- Basic video subscribers + 1.5% to 2.0% Revenue generating unit (RGU) net additions + 1.0 to 1.25 million Total revenue growth mid teens (A) Adjusted operating cash flow growth mid teens (A) Capital expenditures $600 to $650 million AMC/IFC/WE ---------- Total revenue growth mid to high single digit (A) Adjusted operating cash flow growth mid to high single digit (A) (A) Percentage growth Non-GAAP Financial Measures We define adjusted operating cash flow ("AOCF"), which is a non-GAAP financial measure, as operating income (loss) before depreciation and amortization, excluding charges or credits related to our employee stock plan, including those related to the vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: of restricted shares, variable stock options and stock appreciation rights, and restructuring charges or credits. We believe that the exclusion exclusion /ex·clu·sion/ (eks-kloo´zhun) 1. a shutting out or elimination. 2. surgical isolation of a part, as of a segment of intestine, without removal from the body. of such amounts allows investors to better track the performance of the various operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon of our business without regard to the distortive dis·tor·tive adj. Serving to distort: harsh and distortive peaks in the recorded music; a robust fortissimo without distortive vibration. effects of a fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. stock price (in the case of variable stock options and stock appreciation rights expense) or, in the case of restricted shares, the settlement of an obligation that will not be made in cash. We present AOCF as a measure of our ability to service our debt and make continuing investments, including in our capital infrastructure. We believe AOCF is an appropriate measure for evaluating the operating performance of its business segments and the company on a consolidated basis. AOCF and similar measures with other titles are common performance measures used by investors, analysts and peers to compare performance in our industry. Internally, we use revenue and AOCF measures as the most important indicators of our business performance, and evaluate management's effectiveness with specific reference to these indicators. AOCF should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). Since AOCF is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with other titles used by other companies. For a reconciliation of AOCF to operating income (loss), please see page 5 of this release. We define Free Cash Flow, which is a non-GAAP financial measure, as net cash from operating activities less capital expenditures, both of which are reported in our Statement of Cash Flows. We believe the most comparable GAAP financial measure of our liquidity is net cash from operating activities. We believe that Free Cash Flow is useful as an indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of our overall liquidity, as the amount of Free Cash Flow generated in any period is representative of cash that is available for debt service and other discretionary and non-discretionary items. It is also one of several indicators of our ability to make investments and return capital to our shareholders. We also believe that Free Cash Flow is one of several benchmarks used by analysts and investors who follow our industry for comparison of our liquidity with other companies in our industry, although our measure of Free Cash Flow may not be directly comparable to similar measures reported by other companies. 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 in 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. . The company's advanced service offerings include its iO: Interactive Optimum digital television, Optimum Online high-speed Internet See broadband. , Optimum Voice digital voice-over-cable, and its Lightpath integrated business communications services. Cablevision's Rainbow Media Holdings LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control operates several successful programming businesses, including AMC, IFC, WE and other national and regional networks. In addition to its telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and programming businesses, Cablevision owns Madison Square Garden and its sports teams, the New York Knicks, 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. and Liberty. The company also operates New York's famed Radio City Music Hall, and owns and operates Clearview Clearview may refer to:
This earnings release 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 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: "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 The 1Q 2005 earnings announcement will be Webcast live today at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy Conference call dial-in number is (973) 935-8507 Conference call replay number (973) 341-3080/ pin #5952717 until May 12, 2005
CABLEVISION SYSTEMS CORPORATION
CONDENSED CONSOLIDATED OPERATIONS DATA AND RECONCILIATION
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
-----------------------
2005(a) 2004(a)
----------- -----------
Revenues, net $1,213,198 $1,146,570
=========== ===========
Adjusted operating cash flow $353,693 $272,889
Stock plan expense (14,861) (10,938)
Restructuring charges (606) (2,790)
----------- -----------
Operating income before depreciation and
amortization 338,226 259,161
Depreciation and amortization (including
impairments) 263,327 254,162
----------- -----------
Operating income 74,899 4,999
Other income (expense):
Interest expense, net (187,064) (176,543)
Equity in net loss of affiliates (2,020) (2,990)
Write-off of deferred financing costs - (1,187)
Gain (loss) on investments, net (11,141) 14,622
Gain (loss) on derivative contracts, net (1,632) 1,387
Minority interests 2,001 9,576
Miscellaneous, net 134 (539)
----------- -----------
Loss from continuing operations before income
taxes (124,823) (150,675)
Income tax benefit 35,934 50,228
----------- -----------
Loss from continuing operations (88,889) (100,447)
Loss from discontinued operations, net of taxes (30,046) (12,097)
----------- -----------
Loss before extraordinary item (118,935) (112,544)
Extraordinary loss on investment, net of taxes - (7,436)
----------- -----------
Net loss $(118,935) $(119,980)
=========== ===========
Basic and diluted net loss per share:
Loss from continuing operations $(0.31) $(0.35)
=========== ===========
Loss from discontinued operations $(0.10) $(0.04)
=========== ===========
Extraordinary loss - $(0.03)
=========== ===========
Net loss $(0.41) $(0.42)
=========== ===========
Basic weighted average common shares
(in thousands) 287,856 286,842
=========== ===========
(a) Reflects the net operating results of FSN Ohio, FSN Florida and
Rainbow DBS (distribution operations) as discontinued operations.
CABLEVISION SYSTEMS CORPORATION
CONDENSED CONSOLIDATED OPERATIONS DATA AND RECONCILIATION (Cont'd)
(Dollars in thousands, except per share data)
(Unaudited)
ADJUSTMENTS TO RECONCILE ADJUSTED OPERATING CASH FLOW TO OPERATING INCOME The following is a description of the adjustments to operating income included in this earnings release: --Depreciation and amortization. This adjustment eliminates depreciation, amortization and impairments of long-lived long-lived adj. 1. Having a long life: a long-lived aunt. 2. Lasting a long time; persistent: a long-lived rumor. 3. assets in all periods. --Stock plan expense. This adjustment eliminates the expense associated with vesting and marking to market Marking to market Settling or reconciling changes in the value of futures contracts on a daily basis. Also refers to the practice of reporting the value of assets on a market rather than book value basis. of variable stock options, stock appreciation rights granted under our employee stock option plan, and charges related to the issuance of restricted shares. --Restructuring charges. This adjustment eliminates the charges recorded that are associated with costs related to the elimination of positions, facility realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. , and other related costs in all periods.
Three Months Ended
March 31,
-------------------
2005(a) 2004(a)
--------- ---------
CONSOLIDATED FREE CASH FLOW CALCULATION(b)
-------------------------------------------
Net cash provided by operating activities $194,576 $129,191
Less: capital expenditures (173,221) (139,503)
--------- ---------
Consolidated free cash flow $21,355 $(10,312)
========= =========
(a) Excludes the net operating results and capital expenditures of FSN
Ohio, FSN Florida and Rainbow DBS (distribution operations) which
are reported in discontinued operations. Discontinued operations
used $57.4 million in cash in the three months ended March 31,
2005 and generated $56.2 million in cash for the three months
ended March 31, 2004.
(b) See non-GAAP financial measures on page 4 of this release for a
discussion of Free Cash Flow.
CABLEVISION SYSTEMS CORPORATION
CONSOLIDATED RESULTS FROM CONTINUING OPERATIONS
(Dollars in thousands)
(Unaudited)
REVENUES, NET
-------------
Three Months Ended
March 31,
----------------------- %
2005(a) 2004(a) Change
----------- ----------- --------
Cable Television (b) $813,451 $705,159 15.4%
Lightpath (b) 47,742 39,227 21.7%
Eliminations (c) (10,047) (4,318) (132.7)%
----------- -----------
Total Telecommunications 851,146 740,068 15.0%
----------- -----------
AMC/IFC/WE 134,966 126,180 7.0%
Other Programming (d) 72,258 105,835 (31.7)%
Eliminations (c) (6,745) (8,156) 17.3%
----------- -----------
Total Rainbow 200,479 223,859 (10.4)%
----------- -----------
MSG 179,493 204,517 (12.2)%
Other (e) 23,522 17,479 34.6%
Eliminations (f) (41,442) (39,353) (5.3)%
----------- -----------
Total Cablevision $1,213,198 $1,146,570 5.8%
=========== ===========
(a) Excludes the net revenues of FSN Ohio, FSN Florida and Rainbow DBS
(distribution operations) which are reported in discontinued
operations.
(b) Optimum Online for business has been reclassified from Lightpath
to Cable Television for all periods presented.
(c) Represents intra-segment revenues.
(d) Includes FSN Chicago, FSN Bay Area, fuse, Mag Rack, News 12
Networks, MetroChannels, IFC Entertainment, VOOM 21 HD Originals,
Rainbow Network Communications, Rainbow Advertising Sales Corp.
and other Rainbow developmental ventures.
(e) Represents net revenues of Clearview Cinemas and PVI Virtual
Media, which was consolidated in the second quarter of 2004 in
accordance with FIN 46.
(f) Represents inter-segment revenues.
OPERATING INCOME (LOSS) AND ADJUSTED OPERATING CASH FLOW
--------------------------------------------------------
Operating Income
(Loss)(a)
------------------
Three Months Ended
March 31,
------------------ %
2005 2004 Change
--------- -------- -------
Cable Television (b) $120,471 $93,108 29.4%
Lightpath (b) (8,730) (8,305) (5.1)%
--------- --------
Total Telecommunications 111,741 84,803 31.8%
--------- --------
AMC/IFC/WE (c) 47,778 40,333 18.5%
Other Programming (c)(e) (43,073) (32,301) (33.3)%
--------- --------
Total Rainbow 4,705 8,032 (41.4)%
--------- --------
MSG (11,915) (34,753) 65.7%
Other (d) (29,632) (53,083) 44.2%
--------- --------
Total Cablevision $74,899 $4,999 -
========= ========
Adjusted Operating
Cash Flow(a)
-------------------
Three Months Ended
March 31,
------------------- %
2005 2004 Change
--------- --------- -------
Cable Television (b) $311,286 $262,686 18.5%
Lightpath (b) 14,107 12,361 14.1%
--------- ---------
Total Telecommunications 325,393 275,047 18.3%
--------- ---------
AMC/IFC/WE (c) 63,186 60,673 4.1%
Other Programming (c)(e) (23,852) (18,835) (26.6)%
--------- ---------
Total Rainbow 39,334 41,838 (6.0)%
--------- ---------
MSG 3,259 (19,822) 116.4%
Other (d) (14,293) (24,174) 40.9%
--------- ---------
Total Cablevision $353,693 $272,889 29.6%
========= =========
(a) Excludes the operating income (loss) and AOCF of FSN Ohio, FSN
Florida and Rainbow DBS (distribution operations) which are
reported in discontinued operations.
(b) Optimum Online for business has been reclassified from Lightpath
to Cable Television for all periods presented.
(c) Operating income (loss) for AMC/IFC/WE and Other Programming for
the 2004 period has been reclassified to reflect the push down
from Rainbow Media Holdings of certain amortization expense of
acquired intangibles and depreciation expense relating to the fair
value step up of fixed assets.
(d) Includes operating results of Clearview Cinemas, PVI Virtual Media
and certain corporate general and administrative costs. For 2005,
it also includes certain corporate general and administrative
costs allocated to FSN Ohio, FSN Florida and Rainbow DBS
(distribution operations) that are not expected to be eliminated
immediately upon the disposition or shut down of these businesses.
(e) Includes FSN Chicago, FSN Bay Area, fuse, Mag Rack, News 12
Networks, MetroChannels, IFC Entertainment, VOOM 21 HD Originals,
Rainbow Network Communications, Rainbow Advertising Sales Corp.
and other Rainbow developmental ventures.
CABLEVISION SYSTEMS CORPORATION
SUMMARY OF OPERATING STATISTICS
(Unaudited)
March December March
CABLE TELEVISION 31, 2005 31, 2004 31, 2004
---------------- ---------- ---------- ----------
Revenue Generating Units
Basic Video Customers (a) 2,984,801 2,963,001 2,943,874
iO Digital Video Customers 1,622,952 1,483,024 1,055,718
Optimum Online High-Speed Data
Customers 1,440,579 1,352,541 1,128,930
Optimum Voice Customers 364,480 272,688 70,814
Residential Telephone Customers 9,002 9,412 10,646
---------- ---------- ----------
Total Revenue Generating Units 6,421,814 6,080,666 5,209,982
========== ========== ==========
Customer Relationships (b) 3,122,463 3,095,735 3,059,439
----------------------------------------------------------------------
Homes Passed 4,453,290 4,443,229 4,407,737
Penetration
Basic Video to Homes Passed 67.0% 66.7% 66.8%
iO Digital to Basic Penetration 54.4% 50.1% 35.9%
Optimum Online to Homes Passed 32.3% 30.4% 25.6%
Optimum Voice to Homes Passed 8.2% 6.1% 1.6%
----------------------------------------------------------------------
Monthly Churn
Basic Video 1.6% 1.9% 1.7%
iO Digital Video 2.2% 2.5% 2.7%
Optimum Online High-Speed Data 1.9% 2.2% 2.0%
----------------------------------------------------------------------
Revenue for the three months ended
(dollars in millions)
Video (c) $563 $545 $526
High-Speed Data (d) 180 170 143
Voice 29 22 7
Advertising 23 30 20
Other (e) 18 17 9
---------- ---------- ----------
Total Cable Television Revenue (d) $813 $784 $705
========== ========== ==========
Average Monthly Revenue per Basic
Video Customer ("RPS") (d)(f) $91.18 $88.33 $79.83
----------------------------------------------------------------------
(a) As a result of a bulk account analysis in the second quarter of
2004, the Company increased the number of basic video subscribers
reported as of March 31, 2004 by approximately 2,690.
(b) Number of customers who receive at least one of the Company's
services, including business modem only customers. Prior periods
have been adjusted for comparative analysis.
(c) Video revenue includes analog, digital, PPV, VOD and SVOD revenue.
(d) Optimum Online for business has been reclassified from Lightpath
to Cable Television for all periods presented.
(e) Includes installation revenue, NY Interconnect, home shopping and
other product offerings.
(f) RPS is calculated by dividing average monthly revenue for the
quarter by the average number of basic video subscribers for the
quarter.
----------------------------------------------------------------------
March 31, December 31, March 31,
RAINBOW 2005 2004 2004
------- ---------- ------------ ---------
Viewing Subscribers
(in thousands)
AMC 76,600 76,100 74,800
WE 50,700 49,900 47,700
IFC 35,300 34,600 32,000
fuse 34,200 33,100 31,500
Consolidated Regional Sports (Bay
Area & Chicago) 6,000 7,300 7,000
Non-Consolidated Regional Sports
(New England) 3,700 3,800 3,600
CABLEVISION SYSTEMS CORPORATION
CAPITALIZATION AND LEVERAGE
(Dollars in thousands)
(Unaudited)
CAPITALIZATION
--------------
March 31,
2005(a)
------------
Cash and Cash Equivalents $753,542
============
Bank debt $2,507,201
Collateralized indebtedness 1,366,739
Senior notes and debentures 5,991,863
Senior subordinated notes and debentures 746,329
Notes payable (b) 150,000
Capital lease obligations 68,056
------------
Debt $10,830,188
============
LEVERAGE
--------
Debt $10,830,188
Less: collateralized indebtedness (c) and cash (2,120,281)
------------
Net debt $8,709,907
============
Ratio
------------
Consolidated net debt/adjusted operating cash flow (d) 5.4
Restricted Group leverage (Bank Test) 5.0
CSC Holdings notes and debentures ratio (e) 5.0
Cablevision notes ratio (f) 6.1
Rainbow National Services notes ratio (g) 5.6
(a) Excludes the cash and liabilities of FSN Ohio, FSN Florida and
Rainbow DBS (distribution operations) which are reported as held
for sale.
(b) The $150 million notes payable to News Corporation were cancelled
on April 8, 2005 upon the closing of the Fox Sports
reorganization.
(c) Collateralized indebtedness is excluded from the leverage
calculation because it is viewed as a forward sale of the stock of
unaffiliated companies and the Company's only obligation at
maturity is to deliver the stock or its cash equivalent.
(d) Adjusted operating cash flow is annualized based on the quarterly
results, except with respect to Madison Square Garden, which is
based on a trailing 12 months due to its seasonal nature. The $150
million notes payable to News Corporation are excluded for
leverage calculation purposes.
(e) Reflects debt to cash flow ratio applicable under the CSC Holdings
senior and senior subordinated notes indentures. The annualized
AOCF (as defined) used in the Restricted Group bank leverage test
and for the CSC Holdings indentures test is $1.29 billion.
(f) Reflects debt to cash flow ratio under the Cablevision senior
notes indentures.
(g) Reflects debt to cash flow ratio under the Rainbow National
Services notes indenture. The annualized AOCF (as defined) used in
the notes ratio is $252.0 million.
CABLEVISION SYSTEMS CORPORATION
CAPITAL EXPENDITURES
(Dollars in thousands)
(Unaudited)
Three Months Ended
March 31,
-------------------
2005(a) 2004(a)
--------- ---------
CAPITAL EXPENDITURES
--------------------
Consumer premise equipment $131,705 $101,537
Scalable infrastructure 6,604 6,516
Line extensions 7,795 5,181
Upgrade/rebuild 1,211 723
Support 6,583 5,304
--------- ---------
Total Cable Television (b) 153,898 119,261
Lightpath (b) 6,704 8,726
--------- ---------
Total Telecommunications 160,602 127,987
Rainbow 4,721 9,004
MSG 1,161 539
Other (Corporate and Theatres) 6,737 1,973
--------- ---------
Total Cablevision $173,221 $139,503
========= =========
(a) Excludes the capital expenditures of FSN Ohio, FSN Florida and
Rainbow DBS (distribution operations) which are reported as
discontinued operations.
(b) Optimum Online for business has been reclassified from Lightpath
to Cable Television for all periods presented.
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