Cablevision Systems Corporation Reports Fourth Quarter and Full Year 1999 Financial Results.Business/Entertainment 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)--Feb. 17, 2000 Combined Cable and Lightpath Reports 11% Cash Flow Growth 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. Customers Surge 65% to 52,000 Rainbow Cash Flow Growth Exceeds 35% Provides 2000 Outlook 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 released financial results for the fourth quarter and full year ended December December: see month. 31, 1999. The three and twelve month results and the percentage increase or decrease are presented on a 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 and exclude the Company's Ohio and Kalamazoo, Michigan “Kalamazoo” redirects here. For other uses, see Kalamazoo (disambiguation). Kalamazoo is the largest city in the southwest region of the U.S. state of Michigan. As of the 2000 census, the city had a total population of 77,145. systems which are held for sale. For the quarter ended December 31, 1999, the Company recorded net revenue of $1.1 billion, a 17% increase compared to the prior year period. For the three month period ended December 31, 1999, 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 and excluding the effects of stock plan expense and year 2000 remediation expenses- &uot;AOCF&uot;) of $263.4 million, an 11% increase. The Company's fourth quarter performance reflected 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. growth from cable operations of 2.7%, a 45% increase in AOCF AOCF Association of Outplacement Consulting Firms generated by the Company's Long Island commercial telephone service (Lightpath), and continued strong results posted by Rainbow Media. Net revenue for the twelve month period ended December 31, 1999, totaled $3.8 billion, a 16% increase compared to the same period in 1998. AOCF was $950.2 million for the same period, a 12% increase from the prior year period. The Company's cable television and commercial telephone operations recorded combined AOCF of $220.7 million for the fourth quarter, an 11% increase from the prior year period. Net revenue for the fourth quarter was $488.6 million, a 9% increase compared to the year-earlier period. &uot;Cablevision enjoyed a strong fourth quarter to complete an excellent year for the Company. Our telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and Rainbow units both contributed double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" cash flow growth and our advances in the cable modem business were particularly gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. ,&uot; 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:
adj. 1. Of or relating to sensation. 2. Arousing or intended to arouse strong curiosity, interest, or reaction, especially by exaggerated or lurid details: start. The 65% increase in cable modem subscribers for the quarter demonstrates that consumer demand is extremely high, and that our 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). platform is more than capable of supporting significant increases in customers without any reduction in modem speed. We will continue to move aggressively in this very promising business.&uot; TELECOMMUNICATIONS Cable Operations Net revenue for the fourth quarter increased 9% over 1998 to $469.2 million. AOCF for the three month period increased 10% to $208.3 million compared to the 1998 period. Basic subscribers for 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. (&uot;NYMA&uot;) and Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. clusters at
the end of the quarter totaled 3.1 million, a 2.7% increase compared to
the year-earlier period.For the twelve month period ended December 31, 1999, net revenue totaled $1,839.8 million, up 9% from the year-earlier period and AOCF totaled $806.4 million, up 10% from the prior year period. The continued revenue growth for the fourth quarter was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to strong subscriber growth, OptimumTV's (Cablevision's advanced 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. offering) addition of 29,000 new customers during the quarter (113,000 customers in 1999), a 33% increase in advertising revenue coming primarily from strong growth generated by the 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 Interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. and local advertising and a 17% increase in pay-per-view pay-per-view n. A service offered by cable television companies that allows subscribers to view special programs for an additional charge. pay revenue primarily due to the Holyfield/Lewis rematch REMATCH Cardiology Clinical trials–Randomized Evaluation of Mechanical Assistance Therapy as an alternative in Congestive Heart failure–related to use of a portable, electric left ventricular-assist system–LVAS–eg, HeartMate® . 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 rose $1.87 in 1999 ending the year at $45.09. The AOCF margin for the fourth quarter of 1999 increased to 44.4% as compared to 43.9% in the fourth quarter of 1998 and 44.1% in the third quarter of 1999. Commercial Telephone - Long Island Lightpath, Cablevision's commercial telephone service on Long Island, recorded net revenue of $19.4 million for the fourth quarter representing a 28% increase from the year-earlier period. AOCF for the three months ended December 31, 1999 was $12.4 million representing a 45% increase from the 1998 period. Lightpath's fourth quarter AOCF increase reflects continued strong growth in access lines, up 10% or 4,400 lines for the quarter, bringing total access lines to more than 50,000. For the twelve month period ended December 31, 1999, net revenue equaled $69.9 million and AOCF totaled $42.0 million, representing increases of 31% and 46%, respectively. On November November: see month. 8, 1999, Lightpath and Bell Atlantic extended their interconnection in·ter·con·nect v. in·ter·con·nect·ed, in·ter·con·nect·ing, in·ter·con·nects v.intr. To be connected with each other: The two buildings interconnect. v.tr. agreement to April 1, 2003 and set favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. reciprocal Bilateral; two-sided; mutual; interchanged. Reciprocal obligations are duties owed by one individual to another and vice versa. A reciprocal contract is one in which the parties enter into mutual agreements. compensation rates, including Internet traffic Internet traffic is the flow of data around the Internet. It includes web traffic, which is the amount of that data that is related to the World Wide Web, along with the traffic from other major uses of the Internet, such as electronic mail and peer-to-peer networks. , for the duration of the agreement. New Media New Media consists of the Company's developmental telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. businesses including 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. cable modem service, residential telephone service, developing (non-Long Island) commercial telephone service, research and development expenses and deferred revenue amortization related to the Excite@Home transaction. For the quarter ended December 31, 1999, net revenue grew to $19.6 million from $14.2 million in the prior year period and the AOCF deficit was $0.7 million compared to an AOCF deficit of $7.7 million in the prior year period. The strong revenue growth for the fourth quarter can be attributed primarily to a quadrupling quad·ru·ple adj. 1. Consisting of four parts or members. 2. Four times as much in size, strength, number, or amount. 3. Music Having four beats to the measure. n. in the number of cable modem customers compared to December 1998. For the year ended December 31, 1999, net revenue totaled $70.8 million, a 77% increase from $40.0 million in 1998. AOCF for 1999 was $.8 million compared to an AOCF deficit of $25.4 million for 1998. The Company began selling self-install cable modems exclusively at THE WIZ retail locations in late October October: see month. in 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 in mid-November n. 1. the middle part of November. Noun 1. mid-November - the middle part of November period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue in five locations on Long Island. For the ten week sale promotion period ending December 31st, average weekly sales totaled more than 1,850, more than two and one-half times greater than the average weekly sales for the third quarter. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 95% of all buyers are electing to self-install and 85% of those customers have been able to successfully install the cable modem themselves. The Company ended the quarter with 52,100 cable modem customers, a 65% increase compared to the third quarter. In several locations in Connecticut and on Long Island penetration rates now exceed 10% of homes marketed. The Company also offers residential telephone service on Long Island and in Fairfield County, Connecticut Fairfield County is located in the southwestern corner of the U.S. state of Connecticut. Its population according to the 2000 census was 882,567, but a 2006 survey put the population at 905,000. It is the most populous county in the State of Connecticut. . Marketed as Optimum Telephone, the service is a switched telephone offering over the Company's broadband hybrid hybrid (hī`brĭd), term applied by plant and animal breeders to the offspring of a cross between two different subspecies or species, and by geneticists to the offspring of parents differing in any genetic characteristic (see genetics). fiber coaxial co·ax·i·al adj. Having or mounted on a common axis. coaxial Adjective 1. Electronics (of a cable) transmitting by means of two concentric conductors separated by an insulator network. During the fourth quarter, the service was marketed to an additional 23,000 homes, bringing the total homes marketed to 103,000 and ending the quarter with 8,900 customers, nearly 9% of homes marketed. RAINBOW MEDIA 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 (&uot;AMC&uot;), 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. and The Independent Film Channel (&uot;IFC&uot;) Combined AMC (Advanced Mezzanine Card) See AdvancedTCA. , Bravo and 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. fourth quarter AOCF was $27.7 million, up 55% from the year-earlier period on combined net revenue totaling $73.4 million, up 27%. AMC's affiliated af·fil·i·ate v. af·fil·i·at·ed, af·fil·i·at·ing, af·fil·i·ates v.tr. 1. To adopt or accept as a member, subordinate associate, or branch: basic subscribers totaled 71.6 million, a 4% increase from the year-earlier period. Bravo's and IFC's affiliated basic subscribers totaled 52.1 million and 34.4 million, respectively, representing increases of 34% and 64%, respectively, from the same period a year ago. The strong revenue and AOCF growth for these services is attributable to continued subscriber growth at AMC, Bravo and IFC as well as 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. fee increases for each of the services and the continuing increase in Bravo's advertising revenue (which represented 33% of Bravo's total revenue compared to 28% for the fourth quarter of 1998). 1999 represents the first year IFC achieved positive AOCF, which totaled $2.1 million for the twelve month period. For the twelve months ended December 31, 1999, AMC, Bravo and IFC's combined net revenue was $274.3 million and AOCF was $105.2 million, up 26% and 51%, respectively, 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 Ohio and FOX Sports Net Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. . For the fourth quarter, net revenue grew 45% to $10.4 million and AOCF was $3.2 million compared to a loss of $.8 million in the year-earlier period. The number of affiliated basic subscribers for the combined services totaled 4.3 million, a 5% increase from the prior year period. For the twelve months ended December 31, 1999, Consolidated Regional Sports' net revenue and AOCF was $45.1 million, up 17%, and AOCF rose 105% to $12.2 million. Non-Consolidated Regional Sports Non-consolidated Regional Sports is comprised of 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. , FOX Sports Net Bay Area, FOX Sports Net 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. and SportsChannel 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 . Each of these services is managed by Rainbow Media. For the fourth quarter of 1999, net revenues for the combined businesses totaled $54.4 million, a 42% increase from the prior year period. Affiliated basic subscribers were 14.0 million for the combined services at the end of the quarter, up 6% from the prior year period. FOX Sports Net (non-consolidated) FOX Sports Net is the nationwide backdrop Backdrop may refer to:
Rainbow Developing/Other Rainbow Developing/Other is comprised principally of 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, Bravo Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , the News 12 Networks, the MetroChannels and Rainbow Advertising Sales Corporation. Net revenue for the fourth quarter was $43.9 million, representing a 30% increase compared to the year-earlier period primarily resulting from strong subscriber growth. The AOCF deficit for the three month period was $23.7 million as compared to a deficit of $13.8 million in the prior year period. For the twelve month period, net revenue totaled $152.5 million, a 37% increase from the year-earlier period. The AOCF deficit for the year was $69.4 million compared to an AOCF deficit of $62.9 million for the same period a year ago. The growth in revenue for the three and twelve month periods was primarily attributable to the introduction of three MetroChannels in the second half of 1998 as well as increases in affiliate fees paid for Romance Classics and strong subscriber growth. Romance Classics ended the quarter with 31.0 million affiliated basic subscribers. MSG Madison Square Garden Current arenas in the National Hockey League Western Conference Eastern Conference includes MSG Network, FOX Sports Net New York, the Knicks, 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. , the Liberty, the MSG Arena complex and Radio City Entertainment. AOCF for the fourth quarter was $63.9 million, a 30% increase compared to the fourth quarter of 1998 primarily attributable to higher advertising revenue generated by MSG Network, a successful Christmas Christmas [Christ's Mass], in the Christian calendar, feast of the nativity of Jesus, celebrated in Roman Catholic and Protestant Churches on Dec. 25. In liturgical importance it ranks after Easter, Pentecost, and Epiphany (Jan. 6). season at Radio City Music Hall Radio City Music Hall New York City’s famous cinema; home of the Rockettes. [Am. Hist.: NCE, 2338] See : Theater , as well as higher affiliate fee revenues. Net revenue for the fourth quarter was $296.3 million, up 43% compared to the year-earlier period due to the impact of the NBA NBA abbr. 1. National Basketball Association 2. National Boxing Association NBA (US) n abbr (= National Basketball Association) → Basketball-Dachverband (= lockout lockout, intentional closing up of a company, factory, or shop by an employer to prevent employees from working during a strike or labor dispute. The term lockout in the fourth quarter of 1998 and higher advertising revenue at MSG Network. For the twelve month period ended December 31,1999, net revenue and AOCF were $785.2 million and $142.6 million, respectively, up 19% and 16%, respectively, compared to the prior year period. AOCF for the year was negatively affected by the shortened short·en v. short·ened, short·en·ing, short·ens v.tr. 1. To make short or shorter. 2. NBA season and by the eight month restoration project at Radio City Music Hall which was closed from February February: see month. through October 1999. RETAIL ELECTRONICS THE WIZ, a retail electronics chain with 41 locations in the New York metropolitan area, recorded net revenue for the three month and twelve month periods of $206.4 million and $603.3 million, respectively. The AOCF deficits for the three and twelve month periods were $10.9 million and $37.9 million, respectively. THEATRES In December 1998 and early 1999, the Company completed the acquisitions of Clearview Clearview may refer to:
OTHER Costs of $18.5 million for the fourth quarter and $58.5 million for the year include corporate and developmental expenses which support the consolidated operations of the Company. 2000 OUTLOOK (NYMA NYMA New York Military Academy ) The Company targets basic subscriber growth in excess of 2.0% in 2000. Cablevision estimates in 2000 to achieve consolidated pro forma revenue growth of between 11% and 13% and pro forma AOCF growth between 12% and 14%. The combined cable television and Long Island commercial telephone businesses expect pro forma revenue growth of between 9% and 11% and pro forma AOCF growth between 9% and 11% in 2000. The Company is continuing to aggressively upgrade its cable network and anticipates that 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. 2000 nearly 100% of its network in the NYMA cluster cluster, in astronomy: see star cluster; galaxy. (1) Two or more systems working together. See clustering. (2) Also called an "allocation unit" or "file allocation unit," it is some number of disk sectors that are treated as a unit. will be a minimum of 550MHz/77 channels capable. Approximately 73% of the total plant in the NYMA cluster is expected to have 750 MHz (MegaHertZ) One million cycles per second. It is used to measure the transmission speed of electronic devices, including channels, buses and the computer's internal clock. A one-megahertz clock (1 MHz) means some number of bits (16, 32, 64, etc. capacity with two-way interactivity by year-end 2000. Cablevision forecasts capital investment of between $800 million and $850 million in its cable, Long Island commercial telephone and New Media businesses in 2000. This capital includes investments for: digital video services in anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of a pilot rollout of SONY digital boxes in the fourth quarter of this year; cable modem services as the Company doubles the number of homes marketed for such service to 1.8 million which is forecasted to result in more than 100,000 incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. cable modem customers; and, the development of commercial telephone services outside Long Island. In addition, the Company forecasts capital investments aggregating between $225 and $275 million for Madison Square Garden, Rainbow Media, retail electronics, theatres and corporate activities in 2000. The Company expects to finance its 2000 capital expenditures through asset sales, funds available under its credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. capital markets issuances. RECENT DEVELOPMENTS In December 1999, the Company announced an agreement to sell its Ohio cable systems representing approximately 306,000 subscribers to Adelphia A`del´phi`a n. 1. (Bot.) A "brotherhood," or collection of stamens in a bundle; - used in composition, as in the class names, Monadelphia, Diadelphia, etc. s> Communications Corporation for total consideration of $1.53 billion in cash and stock. The Company intends to use the proceeds related to the sale to paydown Paydown A payment made towards an outstanding loan balance. Notes: Every time you make a mortgage payment you are "paying down" your loan. See also: Loan, Mortgage, Principal paydown In a corporate or U.S. its bank debt. The Company also announced in December 1999 its Board of Directors 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: the creation of a new tracking stock related to its programming, entertainment and theatre assets, principally residing in its Rainbow Media Holdings, Inc. subsidiary. The tracking stock must be approved by the Company's shareholders and issuance of the tracking stock is expected in mid- mid- pref. Middle: midbrain. 2000. The Company also announced late last year that it planned to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose its Massachusetts and Kalamazoo, Michigan properties. The Company is continuing to pursue strategic alternatives for these properties. Early in January January: see month. , Rainbow Media announced it acquired the 70% of SportsChannel Florida from Front Row Communications, Inc. that it did not already own. The acquisition was conducted through Regional Programming Partners, a partnership 60% owned by Rainbow Media Holdings, Inc. and 40% by FOX Sports. Rainbow will manage SportsChannel Florida. COMPANY DESCRIPTION Cablevision Systems Corporation is one of the nation's leading telecommunications and entertainment companies. The Company's cable television operations serve more than 3.4 million subscribers located primarily in the New York, Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. and Cleveland Cleveland, former county, England Cleveland, former county, NE England, created under the Local Government Act of 1972 (effective 1974). It was composed of the county boroughs of Hartlepool and Teeside and parts of the former counties of Durham and metropolitan areas. Rainbow Media Holdings, Inc., a 74% owned subsidiary of Cablevision, manages entertainment, news and sports programming businesses. Rainbow Media's assets include ownership interests in American Movie Classics, Bravo, Madison Square Garden, L.P., Radio City Entertainment and FOX Sports Net. The Company also owns and operates THE WIZ consumer electronics stores in 41 locations and operates the Clearview Cinema Group with 293 motion picture theatre screens in the New York metropolitan areas. See the attached schedule summarizing Cablevision's ownership interests in its programming, entertainment and sports assets. This earnings release, including the section 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: &uot;2000 Outlook,&uot; 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 quarterly report on Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission and the Company's registration statement on Form S-3, including the section entitled &uot;Risk Factors&uot; contained therein. The Company disclaims any obligation to update the forward-looking statements contained herein. (See attached financial information)
CABLEVISION SYSTEMS CORPORATION
Operating Results
(Dollars in Thousands)
(Unaudited)
NET REVENUES Three Months Ended December 31, Pro
-------------------------------- Forma
1999 1999 1998 Percent
Actual Pro Forma Pro Forma Change
---------- ---------- ---------- --------
TELECOMMUNICATIONS:
Cable Operations
(NY &Mass. Cluster) $ 469,212 $ 469,212 $ 432,166 8.6%
Commercial Telephone LI 19,402 19,402 15,150 28.1%
---------- ---------- ----------
Subtotal 488,614 488,614 447,316 9.2%
Systems Held for Sale
(Ohio &Kalamazoo) 44,043 - - -
New Media 19,591 19,591 14,164 38.3%
Eliminations(1) (2,058) (2,058) (783) (162.8)%
---------- ---------- ----------
Total Telecommunications 550,190 506,147 460,697 9.9%
---------- ---------- ----------
RAINBOW MEDIA:
AMC 44,747 44,747 40,095 11.6%
Bravo 22,070 22,070 14,573 51.4%
IFC 6,628 6,628 3,098 113.9%
Consolidated Regional Sports 10,425 10,425 7,174 45.3%
Developing/Other 43,938 43,938 33,799 30.0%
---------- ---------- ----------
Subtotal Rainbow 127,808 127,808 98,739 29.4%
MSG 296,297 296,297 207,354 42.9%
Eliminations(1) (5,888) (5,888) (5,631) (4.6)%
---------- ---------- ----------
Total Rainbow Media 418,217 418,217 300,462 39.2%
---------- ---------- ----------
RETAIL ELECTRONICS 206,441 206,441 199,617 3.4%
THEATRES 20,745 20,745 19,789 4.8%
Other 136 136 178 (23.6)%
Eliminations(2) (35,071) (34,196) (28,863) (18.5)%
---------- ---------- ----------
TOTAL COMPANY........ $1,160,658 $1,117,490 $ 951,880 17.4%
========== ========== ==========
Twelve Months Ended December 31, Pro
-------------------------------- Forma
1999 1999 1998 Percent
Actual Pro Forma Pro Forma Change
---------- ---------- ---------- --------
TELECOMMUNICATIONS:
Cable Operations
(NY &Mass. Cluster) $1,839,798 $1,839,798 $1,690,844 8.8%
Commercial Telephone LI 69,888 69,888 53,317 31.1%
---------- ---------- ----------
Subtotal 1,909,686 1,909,686 1,744,161 9.5%
Systems Held for Sale
(Ohio &Kalamazoo) 177,904 - - -
New Media 70,754 70,754 39,957 77.1%
Eliminations(1) (7,036) (7,036) (2,665) (164.0)%
---------- ---------- ----------
Total Telecommunications 2,151,308 1,973,404 1,781,453 10.8%
---------- ---------- ----------
RAINBOW MEDIA:
AMC 177,524 177,524 157,590 12.6%
Bravo 76,813 76,813 49,907 53.9%
IFC 20,007 20,007 9,900 102.1%
Consolidated Regional Sports 45,069 45,069 38,518 17.0%
Developing/Other 152,536 152,536 111,347 37.0%
---------- ---------- ----------
Subtotal Rainbow 471,949 471,949 367,262 28.5%
MSG 785,234 785,234 662,080 18.6%
Eliminations(1) (23,070) (23,070) (21,703) (6.3)%
---------- ---------- ----------
Total Rainbow Media 1,234,113 1,234,113 1,007,639 22.5%
---------- ---------- ----------
RETAIL ELECTRONICS 603,294 603,294 496,076 21.6%
THEATRES 85,064 85,989 78,139 10.0%
Other 465 465 408 14.0%
Eliminations(2) (131,259) (127,835) (100,845) (26.8)%
---------- ---------- ----------
TOTAL COMPANY $3,942,985 $3,769,430 $3,262,870 15.5%
========== ========== ==========
-----------------------------
(1) Represents intra-segment revenues.
(2) Represents revenues earned by Rainbow operations from consolidated
cable systems and, to a lesser extent, intercompany Lightpath revenues
and retail electronics advertising revenue.
Note: The pro forma net revenues referred to above give effect to the
previously disclosed acquisition of 10 cable television systems in New
York and New Jersey from Tele-Communications, Inc. (TCI) in March 1998
and the sale of certain cable television systems and programming
interests in 1998. They also give effect to the acquisition of certain
assets of consumer electronics stores from The Wiz, Inc. and the
acquisition of Clearview Cinema Group, Inc. in 1998, as well as the
acquisition of certain assets from Loews Cineplex Entertainment
Corporation in 1998 and 1999. The pro forma financial information
excludes the net revenues derived from the systems held for sale.
Cablevision SYSTEMS CORPORATION
Operating Results
(Dollars in Thousands)
(Unaudited)
OPERATING CASH FLOW Three Months Ended December 31,
-------------------------------- AOCF
1999 1998 Pro
AOCF AOCF Forma
1999 Pro Pro Percent
Actual Forma(1) Forma(1) Change
---------- ---------- ---------- --------
TELECOMMUNICATIONS:
Cable Operations
(NY &Mass. Cluster) $ 193,247 $ 208,300 $ 189,583 9.9%
Commercial Telephone LI 11,630 12,368 8,540 44.8%
---------- ---------- ----------
Subtotal 204,877 220,668 198,123 11.4%
Systems Held for Sale
(Ohio &Kalamazoo) 15,519 - - -
New Media (2,090) (715) (7,737) 90.8%
---------- ---------- ----------
Total Telecommunications 218,306 219,953 190,386 15.5%
---------- ---------- ----------
RAINBOW MEDIA:
AMC 20,374 20,374 15,890 28.2%
Bravo 4,972 4,972 2,892 71.9%
IFC 2,388 2,388 (901) -
Consolidated Regional Sports 3,181 3,181 (847) -
Developing/Other (44,037) (23,657) (13,838) (71.0)%
---------- ---------- ----------
Subtotal Rainbow (13,122) 7,258 3,196 127.1%
MSG 63,937 63,937 49,086 30.3%
---------- ---------- ----------
Total Rainbow Media 50,815 71,195 52,282 36.2%
---------- ---------- ----------
RETAIL ELECTRONICS (11,275) (10,929) (4,881) (123.9)%
THEATRES 1,631 1,699 924 83.9%
Other (18,502) (18,502) (478) -
---------- ---------- ----------
Total Company Pre-Y2K 240,975 263,416 238,233 10.6%
Year 2000 Remediation (13,519) (13,211) (7,593) (74.0)%
---------- ---------- ----------
TOTAL COMPANY $ 227,456 $ 250,205 $ 230,640 8.5%
========== ========== ==========
Twelve Months Ended December 31,
-------------------------------- AOCF
1999 1998 Pro
AOCF AOCF Forma
1999 Pro Pro Percent
Actual Forma(1) Forma(1) Change
---------- ---------- ---------- --------
TELECOMMUNICATIONS:
Cable Operations
(NY &Mass. Cluster) $ 697,075 $ 806,370 $ 733,264 10.0%
Commercial Telephone LI 38,812 42,033 28,768 46.1%
---------- ---------- ----------
Subtotal 735,887 848,403 762,032 11.3%
Systems Held for Sale
(Ohio &Kalamazoo) 53,833 - - -
New Media (6,876) 776 (25,425) 103.1%
---------- ---------- ----------
Total Telecommunications 782,844 849,179 736,607 15.3%
---------- ---------- ----------
RAINBOW MEDIA:
AMC 80,671 80,671 64,341 25.4%
Bravo 22,450 22,450 10,113 122.0%
IFC 2,052 2,052 (4,841) 142.4%
Consolidated Regional Sports 12,223 12,223 5,976 104.5%
Developing/Other (190,149) (69,356) (62,942) (10.2)%
---------- ---------- ----------
Subtotal Rainbow (72,753) 48,040 12,647 -
MSG 142,606 142,606 122,612 16.3%
---------- ---------- ----------
Total Rainbow Media 69,853 190,646 135,259 40.9%
---------- ---------- ----------
RETAIL ELECTRONICS (39,228) (37,934) (26,987) (40.6)%
THEATRES 6,219 6,852 7,406 (7.5)%
Other (58,528) (58,528) (1,723) -
---------- ---------- ----------
Total Company Pre-Y2K 761,160 950,215 850,562 11.7%
Year 2000 Remediation (41,477) (40,661) (7,593) -
---------- ---------- ----------
TOTAL COMPANY $ 719,683 $ 909,554 $ 842,969 7.9%
========== ========== ==========
-----------------------------
(1) Excludes actual stock plan charges of $39,401 and $255,789 in the
three and twelve month 1999 pro forma periods and $50,043 and $146,179
in the three and twelve month 1998 pro forma periods.
Note: The pro forma adjusted operating cash flows referred to above
give effect to the previously disclosed acquisition of 10 cable
television systems in New York and New Jersey from
Tele-Communications, Inc. (TCI) in March 1998 and the sale of certain
cable television systems and programming interests in 1998. They also
give effect to the acquisition of certain assets of consumer
electronics stores from The Wiz, Inc. and the acquisition of Clearview
Cinema Group, Inc. in 1998, as well as the acquisition of certain
assets from Loews Cineplex Entertainment Corporation in 1998 and 1999.
The pro forma financial information excludes the operating cash flows
derived from the systems held for sale.
Cablevision Systems Corporation
Summary of Operating Statistics
-------------------------------
Pro Forma Pro Forma Pro Forma
December 31, September 30, December 31,
1998 1999 1999
---- ---- ----
Cable(1) (NY and Massachusetts
------- cluster only)
Homes Passed 4,530,046 4,562,335 4,605,695
Basic Subscribers 3,053,308 3,131,145 3,135,370
Customer Growth
(twelve month pro forma) 2.9% 2.7% 2.7%
Basic Penetration 67.4% 68.6% 68.1%
Recurring Revenue Per Subscriber $43.22 $45.03 $45.09
Pro Forma Quarterly AOCF Margin 43.9% 44.1% 44.4%
----------------------------------------------------------------------
Optimum TV (NY and Massachusetts
---------- cluster only)
Homes Marketed 929,000 1,132,000 1,196,000
Customers 481,000 565,000 594,000
Penetration 51% 50% 50%
----------------------------------------------------------------------
Optimum OnLine/Optimum @Home
----------------------------
Homes Marketed 502,000 793,000 874,000
Customers 11,217 31,474 52,100
Penetration 2.2% 4.0% 6.0%
----------------------------------------------------------------------
Commercial Telephone - Long Island
----------------------------------
Buildings on Net 353 456 479
Access Lines 34,660 45,586 50,005
Fiber Miles 31,000 33,310 33,860
Route Miles 844 926 941
----------------------------------------------------------------------
Residential Telephone
---------------------
Homes Marketed 17,560 80,000 103,000
Customers 2,010 6,590 8,900
Penetration 11.4% 8.2% 8.6%
----------------------------------------------------------------------
Rainbow Media
Affiliated Basic Subscribers
(in thousands)(2)
----------------------------
AMC 68,580 71,090 71,600
Bravo 38,810 44,850 52,130
The Independent Film Channel 21,030 28,880 34,400
Romance Classics 19,880 24,700 31,030
MSG Network/FOX Sports Net New York 14,540 15,190 15,470
FOX Sports Net Ohio/Cinn 4,070 4,208 4,290
Non-Consolidated Sports:
FOX Sports Net New England 3,660 3,825 3,860
FOX Sports Net Chicago 3,240 3,415 3,490
FOX Sports Net Bay Area 3,120 3,220 3,270
SportsChannel Florida 3,120 3,275 3,340
FOX Sports Net 62,000 62,000 65,000
----------------------------------------------------------------------
Three Months Three Months
Ended Ended
Cable Pro Forma Net Revenues December 31, December 31, Percent
(dollars in thousands)(1) 1998 1999 Change
---------------------------- ------------ ------------ ------
Recurring $ 394,698 $ 422,466 7.0%
PPV 12,065 14,054 16.5%
Advertising 16,313 21,670 32.8%
Other 9,090 11,022 21.3%
--------- ---------
Net Revenues $ 432,166 $ 469,212 8.6%
========= =========
-----------------------------
(1) Excludes Kalamazoo, MI system and Ohio Systems that are held for
sale.
(2) Affiliated basic subscribers are the total number of basic
subscribers in cable systems which have affiliation agreements with
the service indicated.
Cablevision Systems Corporation
Summary Information
-------------------
Capital Expenditures Year Ended Year Ended
(dollars in thousands) December 31, 1998 December 31, 1999
---------------------- ----------------- -----------------
Cable Operations $ 281,830 $ 413,954
Systems Held for Sale 57,209 55,103
Commercial Telephone LI 39,004 40,876
Rainbow Media (including
MSG/Regional Sports, AMC,
Bravo, Developing and Other) 45,394 91,268
New Media 48,712 88,544
Retail Electronics 2,332 35,106
Other 87,161 146,315
--------- ---------
Total $ 561,642 $ 871,166
========= =========
----------------------------------------------------------------------
Pro Forma
Capitalization Actual (after Ohio Sale)
(dollars in millions) December 31, 1999 December 31, 1999
--------------------- ----------------- -----------------
Cable
Senior Debt $ 1,487 $ 46
Senior Notes and Debentures 2,693 2,693
Subordinated Notes and Debentures 1,048 1,048
--------- ---------
Total Cable Debt 5,228 3,787
--------- ---------
Redeemable Preferred Stock 1,404 1,404
--------- ---------
Rainbow
RMHI Senior Debt 78 78
AMC Senior Debt 318 318
MSG Senior Debt 365 365
--------- ---------
Total Rainbow Debt 761 761
--------- ---------
Other Debt
Retail Electronics &Other 106 106
--------- ---------
Total Consolidated Debt $ 7,499 $ 6,058(1)
========= =========
Pro Forma Leverage Running Rate Annual Running Rate Annual
------------------ ------------ ------ ------------ ------
Notes and Debentures Ratio 6.3 n/a 4.9 n/a
Cable Debt &Redeemable
Preferred/Cable & Lightpath AOCF 7.0 7.3 5.9
6.1
Total Debt &Redeemable
Preferred/AOCF 6.6 7.4 5.7 6.3
----------------------------------------------------------------------
CONDENSED CONSOLIDATED OPERATIONS DATA
(Dollars in thousands,
except per share data)
(Unaudited) Twelve Months Ended Three Months Ended
December 31, December 31,
------------------- ------------------
1999 1998 1999 1998
---- ---- ---- ----
Revenues $3,942,985 $3,265,143 $1,160,658 $ 977,354
---------- ---------- ---------- ----------
Operating profit
before depreciation
and amortization 719,683 722,790 227,456 200,778
Depreciation and
amortization (893,797) (734,107) (265,888) (236,239)
---------- ---------- ---------- ----------
Operating loss (174,114) (11,317) (38,432) (35,461)
---------- ---------- ---------- ----------
Other income (expense):
Interest expense, net (465,740) (402,374) (128,602) (104,421)
Gain on sale of
programming interests
and cable assets, net - 170,912 - 18,229
Other items, net (160,753) (205,725) (49,016) (63,082)
---------- ---------- ---------- ----------
(626,493) (437,187) (177,618) (149,274)
---------- ---------- ---------- ----------
Net loss $ (800,607)$ (448,504)$ (216,050)$ (184,735)
========== ========== ========== ==========
Basic and diluted net loss
per common share $ (5.12)$ (3.16)(2)$ (1.27)$ (1.22)(2)
========== ========== ========== ==========
Average number of common
shares outstanding
(in thousands) 156,503 142,016 169,622 150,875
========== ========== ========== ==========
-----------------------------
(1) Net of the securities issued to monetize stock and its value.
(2) Includes a $170.9 million and an $18.2 million gain on the sale of
programming interests and cable assets for the twelve and three months
ended December 31, 1998, respectively.
Cablevision Systems Corporation
Ownership and Investments
-------------------------
Ownership Interests
-------------------
BROADBAND ASSETS 100%
----------------
3,135,370 cable subscribers (2,774,551 in NY
metropolitan area and 360,819 in Massachusetts)
Ohio and Kalamazoo held for sale
- subscribers of 356,751
Lightpath Commercial Telephone Service
(Long Island and Connecticut)
Optimum Online/Optimum@Home
(Long Island and Connecticut)
Optimum Telephone (Long Island and Connecticut)
PROGRAMMING, ENTERTAINMENT AND SPORTS ASSETS
--------------------------------------------
Rainbow Media (Cablevision 74%; NBC 26%)
Rainbow Media owns:
AMC 100%
Bravo 100%
Bravo Latin America 100%
Romance Classics 100%
The Independent Film Channel 100%
News 12 Networks 100%
News 12 New Jersey 50%
Much Music 50%
National Sports Partners 50%
FOX Sports Net
National Advertising Partners 50%
Regional Programming Partners
(Rainbow Media 60%; FOX Sports Networks, LLC 40%)
Regional Programming Partners owns:
MSG / FOX Sports Net New York / Radio City 100%
SportsChannel Florida 100%
FOX Sports Net Ohio &Cincinnati 100%
FOX Sports Net New England 50%
FOX Sports Net Chicago 50%
FOX Sports Net Bay Area 50%
MetroChannels 100%
OTHER INVESTMENTS
-----------------
THE WIZ 100%
-------
Retail electronics store in 41 New York
metropolitan area locations
Theatres 100%
--------
Clearview Cinemas with 64 theatres and 293
screens in the New York Metropolitan Area
Excite@Home (ATHM)
-----------------
Warrants to purchase 20.4 million shares
of common stock at $.25 per share
North Coast Communications LLC (&uot;NCC&uot;) 49%
-------------------------------------
PCS licenses with 47 million POP's
Salon.com (SALN)
---------------
1.1 million shares of common stock
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