Cablevision Systems Corporation Reports Second Quarter 2001 Financial Results for Cablevision NY Group and Rainbow Media Group.Business Editors BETHPAGE Bethpage (bĕthpāj`), uninc. village (1990 pop. 15,761, including Old Bethpage), Nassau co., SE N.Y., on W Long Island. Northrop Grumman Corporation's large defense plant here is being partly redeveloped for diversified industrial use. , N.Y.--(BUSINESS WIRE)--Aug. 9, 2001 -- Combined Cable, Lightpath, High-Speed Data Revenue Up 10%, Cash Flow Up 9% -- High-Speed Data Penetration Exceeds 14% -- RMG Core Networks Revenue up 18%, Cash Flow Up 21% -- 2001 Guidance Updated Cablevision For the unrelated Canadian company, see . Cablevision Systems Corporation is an American cable television company. It is the 5th largest cable provider in the USA, with most customers residing in New York, New Jersey, Connecticut, and Pennsylvania. Systems Corporation today released financial results for the three months ended June June: see month. 30, 2001 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 increase or decrease are presented on the pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis described on pages 8 and 11. For the quarter ended June 30, 2001, the Company recorded net revenues of $1.1 billion, a 7% pro forma increase compared to the prior year period. The Company posted adjusted operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. (operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before depreciation and amortization, excluding the effects of stock plan income or expense and Year 2000 remediation expense - "AOCF AOCF Association of Outplacement Consulting Firms ") of $254.4 million, a 4% pro forma increase from the prior period. Cable, Lightpath Long Island and 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 net revenue rose 10% to $550.9 million and AOCF increased 9% to $227.1 million. Rainbow Media Group's core networks revenue rose 18% to $130.8 million with AOCF increasing 21% to $49.1 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:
Optimum Online serves Long Island, other parts of New York, the Bronx, Brooklyn, Westchester, parts of New Jersey, Connecticut, and Pennsylvania. , which continued to post strong gains in penetration The successful unauthorized breach of a security perimeter. See penetration test. in the second quarter." Mr. Dolan continued: "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 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 businesses continued to record outstanding revenue and cash flow performance, highlighted by ongoing 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 and increased advertising revenue streams in what is acknowledged to be a very difficult ad market." Cablevision NY Group Cablevision NY Group refers to the Company's cable television systems, Lightpath - its New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of area commercial telephone business, Optimum Online - its high-speed data service, New Media, Madison Square Garden Current arenas in the National Hockey League Western Conference Eastern Conference , THE WIZ, Clearview Clearview may refer to:
LLC - Logical Link Control . Cable Operations Net revenues for the second quarter increased 5% over the year-earlier period to $496.3 million. AOCF for the three-month period rose 8% to $221.3 million, compared to the corresponding quarter in 2000. Highlights include: -- Continued cable subscriber gains - up 1.3% compared to June 30, 2000 -- 12,400 new OptimumTV customers added in the second quarter - 49% of homes marketed -- An 8% increase in total advertising revenue primarily due to an increase in national advertising sales related to the addition of several new accounts -- A 4% decline 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 fewer movie buys and weaker wrestling wrestling, sport in which two unarmed opponents grapple with one another. The object is to secure a fall, i.e., cause the opponent to lose balance and fall to the floor, and ultimately to pin the supine opponent's shoulders to the floor, through the use of body events than in the prior year period. 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 4% to $50.00 compared to $47.93 in June 2000. The AOCF margin for the second quarter of 2001 was 44.6% as compared to 43.4% in the prior year period and 45.5% in the first quarter of 2001. Commercial Telephone - Long Island Lightpath Long Island recorded net revenues of $25.1 million for the second quarter, a 16% increase from the year-earlier period. AOCF for the three months ended June 30, 2001 was $16.3 million, up 18% from the prior year period. Highlights include: -- A 30% increase in the number of buildings on-net Connected to the Internet, or connected to a LAN or WAN. Contrast with off-net. -- A 25% increase in access lines -- A 30% increase in access line revenue and an 80% increase in long-distance long-dis·tance adj. 1. Covering a long distance: a long-distance runner; operating under long-distance supervision. 2. revenue. 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 ") The Company's HSD service is marketed as Optimum Online ("OOL OOL Object-Oriented Language OOL Optimum Online OOL Out-Of-Line (XML) OOL Origin of Life OOL Out of Luck OOL Out of Limits OOL Gold Coast, Queensland, Australia - Coolangatta (Airport Code) "). For the three months ended June 30, 2001, OOL net revenues rose to $29.5 million compared to $7.8 million in the prior year period. OOL recorded an AOCF deficit of $10.4 million for the second quarter compared to an AOCF deficit of $9.6 million in the year-earlier period. Highlights include: -- 64,000 new customers added - 4,900 per week for a total of 368,000 -- 14.4% penetration of homes released, up from 13.2% in the first quarter of 2001 -- Strong penetration rates in Long Island and 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). of 22% and 19%, respectively, compared to 9% and 10%, respectively, in the prior year period -- 256,000 additional HSD-ready homes released, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 40% of which were in 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. , for a total of 2.6 million. New Media New Media consists of the Company's developmental telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. businesses, residential telephone service, commercial cable modem cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. service, developing (non-Long Island) commercial telephone service, research and development expenses, and deferred revenue amortization related to Cablevision's Excite@Home warrants. For the quarter ended June 30, 2001, net revenue totaled $26.3 million compared to $20.0 million in the prior year period, and the AOCF deficit was $3.6 million compared to AOCF of $3.6 million in the year-earlier period. Lightpath's developing commercial telephone businesses, operating in New Jersey, Connecticut, Westchester Westchester is the name of some places in the United States of America:
-- Agreement with the Town of Greenwich, Connecticut Greenwich is a town in Fairfield County, Connecticut, United States. As of the 2000 census, the town had a total population of 61,101. It is home to many hedge funds and other financial service companies that have left Manhattan. Of the $1. to provide wide-area network services and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the services to 29 locations including municipal buildings, libraries, and schools. -- Agreement with Mack-Cali, one of the nation's largest real estate investment companies, providing Lightpath access to 120 buildings in the suburban New York market. 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 second quarter 2001, net revenue totaled $181.4 million, down 6%, and AOCF was $39.7 million, up 2% compared to the year-earlier period. The quarterly results reflect the Knicks not advancing to the second round of the NBA playoffs The NBA Playoffs is a four-round best-of-seven elimination tournament between sixteen teams in the Eastern Conference and Western Conferences (called Divisions, pre-1970) of the National Basketball Association, ultimately determining the league champion. , 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 advancing to the playoffs, player contract buyouts, expenses related to the Yankees litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when payments, and a $30 million settlement from the YankeeNets to buy back the rights to 85 regular season games for the 2002 season. Retail Electronics THE WIZ recorded net revenue of $156.2 million, a 5% increase for the second quarter compared to the prior year period. The AOCF deficit for the second quarter was $14.8 million compared to a deficit of $13.9 million in the prior year period primarily due to slower computer, video and audio sales as well as a lower gross margin than anticipated. Theatres For the three-month period ended June 30, 2001, net revenue for the Clearview Cinemas was $18.1 million, a 3% increase from the prior year period. The AOCF deficit for the quarter was $.6 million, compared to an AOCF deficit of $.2 million in the year-earlier period. Rainbow NY Rainbow NY is comprised primarily of the five local News 12 Networks operating in Long Island, New Jersey, Westchester, Connecticut and the Bronx Bronx, river, c.20 mi (30 km) long, issuing from Kensico Reservoir, SE N.Y., and flowing SW through the Bronx into the East River. The Bronx River Parkway, one of the first limited-access highways in the New York City area, parallels a portion of the river. , as well as Rainbow's three local MetroChannels and Rainbow Advertising Sales Corp. These businesses recorded an AOCF deficit of $11.5 million compared to and AOCF deficit of $8.9 million in the prior year period. The higher AOCF deficit was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to lower advertising revenue generated by MetroTV due to fewer Knicks and Rangers games shown on the channel than in the prior year period and to increases in spending for programming initiatives related to the local News 12 services and the MetroChannels. Other Other costs amounted to $15.9 million for the second quarter of 2001 compared to $16.2 million in the prior year period and include corporate expenses and developmental expenses to support the New York metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. operations. 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 (formerly Romance romance [O.Fr.,=something written in the popular language, i.e., a Romance language]. The roman of the Middle Ages was a form of chivalric and romantic literature widely diffused throughout Europe from the 11th cent. Classics) and MuchMusic USA, as well as Rainbow's interests in the national service Fox Sports Net and Rainbow's ownership interests in five regional Fox sports channels Sports channels are television specialty channels (usually available exclusively through cable and satellite) broadcast sporting events, usually live, and when not broadcasting events, sports news and other related programming. outside the New York market. These businesses are owned through Rainbow Media Holdings, Inc. which is 75% owned by Cablevision. American Movie Classics (AMC) AMC's net revenues increased 13% to $54.6 million and AOCF also grew 13% to $28.4 million. The strong revenue and cash flow growth was attributable to a 4% increase in viewing subscribers, affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. rate increases and an 89% increase in sponsorship revenue to approximately $6 million. Bravo/The Independent Film Channel (IFC) Bravo/IFC's net revenues increased 35% to $43.6 million and AOCF grew 34% to $11.2 million. Highlights include: -- A 17% increase in Bravo's viewing subscribers which total 48.9 million -- A 53% increase in IFC's viewing subscribers which total 18.7 million -- A 50% rise from the year-earlier period in Bravo's advertising revenue to $14.2 million, due to higher ratings and two additional minutes of advertising time per hour. 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. Net revenues rose 9% to $32.6 million, and AOCF increased 31% to $9.4 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 second quarter, net revenues grew 5% to $52.4 million, and AOCF increased 2% to $9.0 million. Viewing subscribers totaled 10.3 million, representing a 5% increase from the prior year period. Non-Consolidated FOX Sports Net Fox Sports Net's viewing subscribers totaled 73 million at the end of the quarter. Developing Programming/Other Developing Programming/Other consists of WE:Women's Entertainment, MuchMusic USA, Rainbow Network Communications and other Rainbow start-up Start-up The earliest stage of a new business venture. ventures. Second quarter net revenues of $21.4 million represented a 41% increase compared to the prior year period primarily due to higher subscriber counts and higher affiliate fees for WE:Women's Entertainment and MuchMusic USA and higher advertising revenue at WE:Women's Entertainment. The AOCF deficit for the three-month period was $9.7 million compared to $5.7 million in the year-earlier period. The increase in the AOCF deficit was attributable primarily to investments related to new films in production and distribution by IFC Productions. The number of WE:Women's Entertainment's viewing subscribers increased 24% to 26 million. 2001 Guidance Cablevision NY Group The Company affirms the following guidance for the full year 2001: -- Pro forma revenue growth for cable television, HSD and Long Island Lightpath of between 10%-12% -- Pro forma revenue growth for total telecommunications of between 11%-13% -- HSD customers expected to exceed 475,000 -- Capital expenditures between $1.0 billion and $1.1 billion in the cable, commercial telephone and New Media businesses and between $225 million-$250 million for all other consolidated entities including the non-Rainbow Media Group businesses, THE WIZ, theatres, Madison Square Garden and corporate activities -- Madison Square Garden revenue between $870 million-$890 million -- 84% of total plant built to 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. capable two-way. The Company revises the following guidance for the full year 2001: -- Pro forma cash flow growth for cable television, HSD and Long Island Lightpath to between 11%-13% from 13%-15% -- Pro forma cash flow growth for total telecommunications to between 7%-9% from 10%-11% -- Cable subscriber growth to 1.0% from 1.75% -- Madison Square Garden pro forma cash flow to between $115 million-$120 million from $135 million-$140 million excluding certain one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. expenses related to the sports teams that could be incurred. The lower cash flow guidance related to cable, HSD and Long Island Lightpath is attributable to: -- The Company not proceeding during the second quarter with a leasing option program for its HSD service thereby lowering forecasted AOCF by $20 million and reducing forecasted cable modem capital expenditures by $35 million -- Call center expenses higher than anticipated due to higher staffing requirements related to HSD customer growth -- Advertising revenue lower than forecasted due to the weak advertising market -- Lower than forecasted cable revenue due to lower subscriber growth. 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 lower than expected cash flow attributable to the Rangers not making the playoffs, the Knicks not advancing to the second round of the NBA playoffs, player contract buyouts, expenses related to the Yankees litigation, and severance payments. This lower cash flow guidance does not include certain one-time expenses related to the sports teams that could be incurred prior to 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. . Rainbow Media Group ("RMG") The Company affirms the previous pro forma cash flow and revenue guidance for AMC, Bravo, IFC and Regional Sports of 14%-16% and estimated AOCF losses between $35 million and $40 million each for Developing and Sterling Digital. COMPANY DESCRIPTION Cablevision Systems Corporation is one of the nation's leading telecommunications and entertainment companies. The Company consists of the Cablevision NY Group (NYSE: CVC) and the Rainbow Media Group (NYSE: RMG). CVC is comprised of cable television operations serving approximately 3 million subscribers located in the New York metropolitan area, as well as Madison Square Garden, L.P., Radio City Entertainment, THE WIZ consumer electronics stores in 42 locations in the New York metropolitan area and Clearview Cinemas with 290 motion picture theatre screens in the New York metropolitan area. RMG is comprised of five national networks, Rainbow's interest in the national Fox Sports Net, and five Fox Sports Net regional sports channels outside the New York market. This earnings release, including the sections entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "2001 Guidance", contains statements that constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industry in which it operates and the factors described in the Company's most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year-ended December December: see month. 31, 2000 filed with the Securities and Exchange Commission and the Company's Proxy Statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. dated October October: see month. 10, 2000, as supplemented, including the sections entitled "Risk Factors" contained therein. The Company disclaims any obligation to update the forward-looking statements contained herein.
Cablevision's Web site: www.cablevision.com
CVC 2Q 2001 earnings announcement Webcast live at 10:00 a.m. EST
RMG 2Q 2001 earnings announcement Webcast live beginning at
approximately 10:45 a.m. EST
Conference call dial-in number for CVC and RMG (212) 896-6004
Conference call replay number (800) 633-8284/reservation # 19256133
available through August 10th
CABLEVISION SYSTEMS CORPORATION
CONDENSED CONSOLIDATED OPERATIONS DATA
(Dollars in thousands, except per share data)
(Unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
---------------------- ----------------------
2001 2000 2001 2000
---------- ---------- ---------- ----------
Revenues, net $2,111,524 $2,129,801 $1,061,988 $1,081,577
========== ========== ========== ==========
Operating profit
before depreciation
and amortization:
Cablevision NY
Group 412,554 478,802 244,751 220,509
Rainbow Media
Group 62,284 67,057 38,398 32,267
---------- ---------- ---------- ----------
Sub-total 474,838 545,859 283,149 252,776
Depreciation and
amortization 488,104 470,830 240,158 237,478
---------- ---------- ---------- ----------
Operating income
(loss) (13,266) 75,029 42,991 15,298
Other income (expense):
Interest expense,
net (260,876) (268,843) (126,426) (138,065)
Gain on sale of
cable assets and
affiliate interests,
net 2,178,080 - 744,588 -
Gain (loss) on
investments, net 189,432 - (25,147) -
Other items, net (350,794) (93,429) (307,550) (48,981)
---------- ---------- ---------- ----------
Income (loss) before
income taxes 1,742,576 (287,243) 328,456 (171,748)
Income tax expense (376,211) - (89,966) -
---------- ---------- ---------- ----------
Net income (loss) $1,366,365 $ (287,243) $ 238,490 $ (171,748)
========== ========== ========== ==========
EARNINGS (LOSS) PER
SHARE:
CNYG Common Stock
Earnings (losses)
applicable to
common stock $1,015,086 $(300,069) $ (121,740) $(178,420)
========== ========== ========== ==========
Basic and diluted
net income (loss)
per common share $ 5.80 $ (1.73) $ (.69) $ (1.03)
========== ========== ========== ==========
Basic and diluted
weighted average
common shares (in
thousands) 175,119 173,418 175,194 173,485
========== ========== ========== ==========
RMG Tracking Stock
Earnings applicable
to common stock $ 351,279 $ 12,826 $ 360,230 $ 6,672
========== ========== ========== ==========
Basic and diluted
net income per
common share $ 4.01 $ .15 $ 4.11 $ .08
========== ========== ========== ==========
Basic and diluted
weighted average
common shares
(in thousands) 87,571 86,709 87,620 86,743
========== ========== ========== ==========
CAPITALIZATION
(Dollars in thousands)
(Unaudited)
Actual Pro Forma(a)
June 30, 2001 June 30, 2001
------------- -------------
Cash $ 243,274 $ 641,046
========= ==========
Bank debt 1,089,500 424,458
Collateralized indebtedness 676,164 1,526,415
Senior notes and debentures 3,690,382 3,690,382
Subordinated notes and debentures 1,050,491 1,050,491
Capital lease obligations and other debt 95,614 95,614
Redeemable preferred stock 1,544,294 1,544,294
--------- ---------
Debt and redeemable preferred stock $8,146,445 $8,331,654
========== ==========
LEVERAGE
Debt and redeemable preferred stock $8,146,445 $8,331,654
Less: collateralized indebtedness(a)
and cash (919,438) (2,167,461)
--------- ----------
Net debt and redeemable preferred stock $7,227,007 $6,164,193
========== ==========
Actual Pro Forma
Running Running
Rate(b) Rate(b)
---------- ----------
Consolidated Net Debt & Redeemable
Preferred/AOCF 7.1x 6.1x
(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.
Note: The Pro Forma column gives effect to the proposed monetization
of the AT&T and AWE securities.
CABLEVISION SYSTEMS CORPORATION
CABLEVISION NY GROUP
Pro Forma Combined Operating Results
(Dollars in thousands)
(Unaudited)
NET REVENUES Three Months Ended June 30,
------------ ---------------------------
2001 2000 Pro Forma
Actual Pro Forma Change
---------- ----------- ------
TELECOMMUNICATIONS:
Cable Operations $ 496,262 $ 470,876 5.4%
Commercial Telephone LI 25,107 21,719 15.6%
High-Speed Data 29,515 7,793 278.7%
---------- ----------
Subtotal 550,884 500,388 10.1%
New Media 26,259 19,972 31.5%
Eliminations(a) (4,127) (3,033) (36.1)%
---------- ----------
Total Telecommunications 573,016 517,327 10.8%
---------- ----------
MSG 181,406 193,864 (6.4)%
Rainbow NY 28,560 30,606 (6.7)%
Retail Electronics 156,207 149,406 4.6%
Theatres 18,110 17,622 2.8%
Other 12 222 (94.6)%
Eliminations(b) (39,465) (31,388) (25.7)%
---------- ----------
Total Cablevision NY Group $ 917,846 $ 877,659 4.6%
========= =========
NET REVENUES Six Months Ended June 30,
------------ -------------------------
2001 2000 Pro Forma
Actual Pro Forma Change
---------- ----------- ------
TELECOMMUNICATIONS:
Cable Operations $ 970,412 $ 921,463 5.3%
Commercial Telephone LI 49,339 41,339 19.4%
High-Speed Data 52,378 13,859 277.9%
---------- ----------
Subtotal 1,072,129 976,661 9.8%
New Media 51,797 38,354 35.0%
Eliminations(a) (7,923) (5,293) (49.7)%
---------- ----------
Total Telecommunications 1,116,003 1,009,722 10.5%
---------- ----------
MSG 398,305 418,162 (4.7)%
Rainbow NY 53,970 57,263 (5.8)%
Retail Electronics 307,070 279,321 9.9%
Theatres 36,559 35,616 2.6%
Other 200 401 (50.1)%
Eliminations(b) (76,119) (62,787) (21.2)%
---------- ----------
Total Cablevision NY Group $1,835,988 $1,737,698 5.7%
========== ==========
(a) Represents intra-segment revenues.
(b) Represents inter-segment revenues.
Note: The pro forma net revenues referred to above give effect to (i)
the disposition of cable television systems in Ohio, Massachusetts
and Michigan, (ii) the acquisition of cable television systems in
Westchester County, New York; and (iii) the acquisition and
disposition of certain programming interests; and (iv) the
elimination of modem sales in the 2000 periods, which are no
longer recorded on the books of retail electronics.
CABLEVISION SYSTEMS CORPORATION
CABLEVISION NY GROUP
Pro Forma Combined Operating Results - Cont'd
(Dollars in thousands)
(Unaudited)
OPERATING CASH FLOW Three Months Ended June 30,
------------------- -----------------------------
2001 2000
2001 AOCF AOCF Percent
Actual Pro Pro Change
Forma(a) Forma(a)
--------- --------- --------- --------
TELECOMMUNICATIONS:
Cable Operations $228,378 $221,307 $204,252 8.3%
Commercial Telephone LI 16,666 16,252 13,744 18.2%
High-Speed Data (8,994) (10,412) (9,582) (8.7)%
-------- -------- --------
Subtotal 236,050 227,147 208,414 9.0%
New Media 2,692 (3,630) 3,596 (200.9)%
-------- -------- --------
Total Telecommunications 238,742 223,517 212,010 5.4%
-------- -------- --------
MSG 44,701 39,712 38,775 2.4%
Rainbow NY (8,707) (11,508) (8,948) (28.6)%
Retail Electronics (14,068) (14,812) (13,880) (6.7)%
Theatres (65) (648) (229) (183.0)%
Other (15,852) (15,852) (16,178) 2.0%
-------- -------- --------
Total Cablevision NY
Group $244,751 $220,409 $211,550 4.2%
======== ======== ========
OPERATING CASH FLOW Six Months Ended June 30,
------------------- -----------------------------
2001 2000
2001 AOCF AOCF Pro Forma
Actual Pro Pro Change
Forma(a) Forma(a)
-------- --------- --------- --------
TELECOMMUNICATIONS:
Cable Operations $445,111 $437,129 $404,311 8.1%
Commercial Telephone LI 32,185 31,736 26,242 20.9%
High-Speed Data (27,232) (24,671) (20,163) (22.4)%
-------- -------- --------
Subtotal 450,064 444,194 410,390 8.2%
New Media (8,230) (6,116) 4,839 (226.4)%
-------- -------- --------
Total Telecommunications 441,834 438,078 415,229 5.5%
-------- -------- --------
MSG 52,764 55,080 56,366 (2.3)%
Rainbow NY (25,202) (27,363) (17,092) (60.1)%
Retail Electronics (31,702) (32,204) (31,768) (1.4)%
Theatres (137) (697) 51 -
Other (25,003) (25,003) (32,672) 23.5%
-------- -------- --------
Total Cablevision NY
Group $412,554 $407,891 $390,114 4.6%
======== ======== ========
(a) Excludes actual stock plan expense (income) of $(24,342) and
$(4,663) in the three and six month periods in 2001 and $32,099
and $(5,871) in the 2000 periods.
Note: The pro forma adjusted operating cash flows referred to above
give effect to (i) the disposition of cable television systems in
Ohio, Massachusetts and Michigan and corporate overhead that would
otherwise have been absorbed by them; (ii) the acquisition of
cable television systems in Westchester County, New York; (iii)
the acquisition and disposition of certain programming interests;
(iv) the first and second quarter's portion of the $38.5 million
charge, taken in the fourth quarter of 2000, for the write-off of
consumer modem incentive costs previously deferred; and (v) the
elimination in 2000 of certain purchase accounting adjustments at
MSG.
CABLEVISION SYSTEMS CORPORATION
CABLEVISION NY GROUP
CONDENSED COMBINED OPERATIONS DATA
(Dollars in thousands)
(Unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
------------------- ---------------------
2001 2000 2001 2000
------------------- ----------------------
Revenues, net $1,835,988 $1,907,451 $ 917,846 $ 964,465
========= ========= ======= =======
Operating profit
before depreciation
and amortization 412,554 478,802 244,751 220,509
Depreciation and
amortization 467,550 450,778 229,600 227,146
------- ------- ------- -------
Operating income
(loss) (54,996) 28,024 15,151 (6,637)
Other income (expense):
Interest expense,
net (248,499) (245,160) (127,025) (125,583)
Gain (loss) on sale
of cable assets,
net 1,431,778 - (1,714) -
Gain (loss) on
investments, net 189,743 - (25,089) -
Other items, net (41,026) (5,538) (33,401) (4,860)
-------- ------- -------- -------
Income (loss) before
income taxes and
dividend
requirements 1,277,000 (222,674) (172,078) (137,080)
Income tax
(expense)
benefit (159,632) - 126,613 -
---------- --------- ------- ----------
Net income (loss)
before dividend
requirements 1,117,368 (222,674) (45,465) (137,080)
Dividend
requirements
applicable to
preferred stock (87,258) (80,529) (43,629) (40,826)
---------- --------- -------- ----------
Net income (loss) 1,030,110 (303,203) (89,094) (177,906)
Net income (loss)
attributed to parties
other than
Cablevision Systems
Corporation
shareholders (15,024) 3,134 (32,646) (514)
---------- --------- -------- ---------
Net income (loss)
attributed to
Cablevision Systems
Corporation $1,015,086 $(300,069) $(121,740) $(178,420)
========== ========= ========= ==========
CAPITALIZATION
(Dollars in thousands)
(Unaudited)
Actual Pro Forma(a)
June 30, June 30,
2001 2001
---------- ----------
Cash $ 52,394 $ 450,166
=========== ===========
Senior debt and capital leases 705,739 40,697
Senior notes and debentures 3,690,382 3,690,382
Subordinated notes and debentures 1,050,491 1,050,491
Redeemable preferred stock 1,544,294 1,544,294
--------- ---------
Total cable debt and redeemable
preferred stock 6,990,906 6,325,864
Other Debt:
Collateralized indebtedness 676,164 1,526,415
Less: collateralized indebtedness(a) (676,164) (1,526,415)
MSG senior debt 333,900 333,900
Retail Electronics & Other 117,989 117,989
------- -------
Net debt and redeemable
preferred stock $ 7,442,795 $ 6,777,753
=========== ============
LEVERAGE
Actual Pro Forma
Running Rate Running Rate
------------ ------------
Notes and Debentures Ratio(b) 5.8x 5.2x
(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.
Note: The Pro Forma column gives effect to the proposed monetization
of the AT&T and AWE securities.
Cablevision Systems Corporation
CABLEVISION NY GROUP
Summary of Operating Statistics
(Unaudited)
Pro Pro Pro
Forma(a) Forma(a) Forma(a)
June 30, March 31, June 30,
2001 2001 2000
---- ---- ----
Cable
-----
Homes Passed 4,319,810 4,307,443 4,263,973
Basic Subscribers 2,999,105 2,968,758 2,959,423
Subscriber Growth (12 month basis) 1.3% 1.8% 2.1%
Basic Penetration 69.4% 68.9% 69.4%
Recurring Revenue Per Subscriber $50.00 $49.80 $47.93
Pro Forma Quarterly AOCF Margin 44.6% 45.5% 43.4%
----------------------------------------------------------------------
Optimum TV
----------
Homes Marketed 1,260,300 1,232,300 1,148,200
Customers 617,115 604,700 566,475
Penetration 49% 49% 49%
----------------------------------------------------------------------
Optimum Online - High-Speed Data
--------------------------------
Homes Released 2,558,300 2,303,000 1,339,200
Customers 367,800 303,800 93,350
Penetration 14.4% 13.2% 7.0%
----------------------------------------------------------------------
Commercial Telephone - Long Island Market
-----------------------------------------
Buildings on-net 690 628 531
Access Lines 72,640 68,670 58,180
Fiber Miles 37,535 36,835 34,360
Route Miles 1,071 1,032 964
----------------------------------------------------------------------
Commercial Telephone - Developing Markets
-----------------------------------------
Buildings on-net 339 275 132
Access Lines 28,835 25,625 8,038
Fiber Miles 11,325 5,095 4,208
Route Miles 148 68 23
----------------------------------------------------------------------
Residential Telephone
---------------------
Homes Marketed 153,000 151,625 135,500
Customers 12,485 12,355 11,053
Penetration 8.2% 8.2% 8.2%
----------------------------------------------------------------------
Three Months Ended June 30, Percent
---------------------------
Cable Pro Forma Net Revenues (thousands) 2001 2000 Change
---------------------------------------- ---- ---- ------
Recurring $447,275 $422,308 5.9%
PPV 14,701 15,340 (4.2%)
Advertising 20,992 19,444 8.0%
Other 13,294 13,784 (3.5%)
-------- --------
Net Revenues $496,262 $470,876 5.4%
======== ========
----------------------------------------------------------------------
Six Months Ended June 30,
-------------------------
Capital Expenditures (thousands) 2001 2000
-------------------------------- ---- ----
Cable Operations $376,966 $335,661
Commercial Telephone, Long Island 31,694 18,474
New Media 138,812 62,807
Retail Electronics 13,541 12,516
Rainbow NY 14,985 13,794
Other 78,639 103,839
-------- --------
Total Cablevision NY Group $654,637 $547,091
======== ========
(a) On the basis described in "Note" on page 8.
CABLEVISION SYSTEMS CORPORATION
RAINBOW MEDIA GROUP
Pro Forma Combined Operating Results
(Dollars in Thousands)
(Unaudited)
NET REVENUES Three Months Ended June 30,
------------ ---------------------------
2001 2000 Pro Forma
Actual Pro Forma Change
--------- --------- ---------
AMC $ 54,616 $ 48,231 13.2%
Bravo/IFC 43,605 32,276 35.1%
Consolidated Regional Sports 32,556 29,967 8.6%
--------- ---------
Subtotal Core Networks 130,777 110,474 18.4%
Developing/Other 21,382 15,124 41.4%
Sterling Digital - - -
Eliminations(a) (4,365) (4,279) (2.0)%
--------- ---------
TOTAL RMG $147,794 $121,319 21.8%
========= =========
NET REVENUES Six Months Ended June 30,
------------ -------------------------
2001 2000 Pro Forma
Actual Pro Forma Change
--------- --------- ---------
AMC $109,249 $ 95,453 14.5%
Bravo/IFC 84,460 61,334 37.7%
Consolidated Regional Sports 58,804 52,689 11.6%
--------- ---------
Subtotal Core Networks 252,513 209,476 20.5%
Developing/Other 39,902 31,559 26.4%
Sterling Digital - - -
Eliminations(a) (8,479) (8,459) (0.2)%
--------- ---------
TOTAL RMG $283,936 $232,576 22.1%
========= =========
OPERATING CASH FLOW Three Months Ended June 30,
------------------- ---------------------------
2001 2000
2001 AOCF AOCF Pro Forma
Actual Pro Pro Change
Forma(b) Forma(b)
-------- -------- -------- --------
AMC $29,258 $28,385 $25,099 13.1%
Bravo/IFC 11,704 11,247 8,401 33.9%
Consolidated Regional Sports 10,091 9,441 7,237 30.5%
------- ------- -------
Subtotal Core Networks 51,053 49,073 40,737 20.5%
Developing/Other (7,473) (9,725) (5,667) (71.6)%
Sterling Digital (5,182) (5,365) (1,035) -
------- ------- -------
TOTAL RMG $38,398 $33,983 $34,035 (0.2)%
======= ======= =======
OPERATING CASH FLOW Six Months Ended June 30,
------------------- -------------------------
2001 2000
2001 AOCF AOCF Pro Forma
Actual Pro Pro Change
Forma(b) Forma(b)
-------- -------- -------- --------
AMC $55,892 $54,564 $ 48,248 13.1%
Bravo/IFC 22,000 22,472 17,196 30.7%
Consolidated Regional Sports 15,985 15,384 11,679 31.7%
------- ------- -------
Subtotal Core Networks 93,877 92,420 77,123 19.8%
Developing/Other (20,548) (22,266) (10,110) (120.2)%
Sterling Digital (11,045) (10,084) (1,035) -
------- ------- -------
TOTAL RMG $62,284 $60,070 $ 65,978 (9.0)%
======= ======= =======
(a) Represents inter-segment revenues.
(b) Excludes actual stock plan expense (income) of $(4,415) and
$(2,214) in the three and six months ended June 30, 2001 and
$2,680 and $(474) in the 2000 periods, respectively.
Note: The pro forma net revenue and adjusted operating cash flows
referred to above give effect to the acquisitions of Fox Sports
Net Florida, MuchMusic USA and News 12 New Jersey in 2000.
CABLEVISION SYSTEMS CORPORATION
RAINBOW MEDIA GROUP
Pro Forma Combined Operating Results - Cont'd
(Dollars in Thousands)
(Unaudited)
----------------------------------------------------------------------
CAPITAL EXPENDITURES Six Months Ended June 30,
-------------------- ------------------------
2001 2000
-------- -------
Rainbow Media Group $5,643 $ 7,315
---------------------------------------------------------------------
NON-CONSOLIDATED REGIONAL SPORTS - Managed Businesses
-----------------------------------------------------
100% of the Company's affiliated entities net revenues and AOCF are
reflected below:
Three Months Ended June 30,
---------------------------
Non-consolidated Regional Sports 2001 2000 Change
-------------------------------- ---- ---- ------
Revenues, net $52,377 $49,920 5%
AOCF $ 9,026 $ 8,816 2%
Six Months Ended June 30,
-------------------------
Non-consolidated Regional Sports 2001 2000 Change
-------------------------------- ---- ---- ------
Revenues, net $101,877 $96,537 6%
AOCF $ 15,103 $14,014 8%
Note: Regional Sports includes Fox Sports Net Chicago, Fox Sports Net
Bay Area and Fox Sports Net New England in which Rainbow Media
Holdings holds a 30% attributable ownership interest.
----------------------------------------------------------------------
Viewing Subscribers Basic Subscribers
------------------- -----------------
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
-------- -------- -------- --------
SUBSCRIBERS (thousands)
-----------
AMC 69,990 67,560 77,010 73,450
Bravo 48,940 41,870 64,550 56,620
IFC 18,710 12,230 48,720 40,320
WE: Women's Entertainment 25,630 20,600 43,050 33,300
MuchMusic USA 14,430 12,180 40,780 16,440
Consolidated Fox Sports (Florida &
Ohio) 7,540 7,120 8,160 7,630
Non-Consolidated Fox Sports
Networks (Bay Area, New England,
Chicago) 10,300 9,770 11,330 10,760
Fox Sports Net 72,650 69,720 81,100 76,600
CABLEVISION SYSTEMS CORPORATION
RAINBOW MEDIA GROUP
CONDENSED COMBINED OPERATIONS DATA
(Dollars in thousands)
(Unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
-------------------- -------------------
2001 2000 2001 2000
------- ------- ------ ------
Revenues, net $283,936 $232,609 $147,794 $122,149
======== ======== ======== ========
Operating profit
before
depreciation
and amortization 62,284 67,057 38,398 32,267
Depreciation and
amortization 20,554 20,052 10,558 10,332
-------- -------- ------- -------
Operating income 41,730 47,005 27,840 21,935
Other income (expense):
Interest expense,
net (12,377) (23,683) 599 (12,482)
Gain on sale of
programming
interests 746,302 - 746,302 -
Other items, net (3,677) (1,036) 4,448 1,339
-------- -------- ------- -------
Net income
before income
taxes 771,978 22,286 779,189 10,792
Income tax
expense (216,579) - (216,579) -
-------- -------- ------- -------
Net income 555,399 22,286 562,610 10,792
Net income
attributed to parties
other than
Cablevision Systems
Corporation (204,120) (9,460) (202,380) (4,120)
-------- -------- ------- -------
Net income
attributed to
Cablevision Systems
Corporation $351,279 $ 12,826 $ 360,230 $ 6,672
======== ======== ========= =======
CAPITALIZATION
(Dollars in thousands)
(Unaudited)
June 30, 2001
----------------
Cash $190,880
=========
Capital lease
obligations & other 27,486
---------
Total Rainbow Media
Group debt $ 27,486
=========
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