Cablevision Systems Corporation Reports Second Quarter 2002 Financial Results - Cablevision NY Group and Rainbow Media Group.Business and Technology 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. 8, 2002 Cablevision For the unrelated Canadian company, see . Cablevision Systems Corporation is an American cable television company. It is the 5th largest cable provider in the USA, with most customers residing in New York, New Jersey, Connecticut, and Pennsylvania. Systems Corporation (NYSE NYSE See: New York Stock Exchange :CVC See CSC. ) Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. 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 Revenue Up 9% and Pro Forma Cash Flow Up 16% 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 Customers to 610,500 with 19% Penetration The successful unauthorized breach of a security perimeter. See penetration test. iO Digital Video Subscribers Reach 42,700 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) Core Networks Revenue Up 6%, Pro Forma Cash Flow Up 8% Cablevision Systems Corporation today released financial results for the three months ended June June: see month. 30, 2002 for its Cablevision NY Group (NYSE:CVC) and Rainbow Media Group (NYSE:RMG) businesses. The three-month results and the percentage increases or decreases are presented on the pro forma basis described elsewhere in this release, together with a description of the reconciling adjustments to GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). results. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net revenues for the quarter ended June 30, 2002, totaled $1.1 billion, a 2% pro forma increase compared to the prior year period. Consolidated adjusted operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. (operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before depreciation and amortization and excluding the effects of long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. incentive and stock plans income or expense and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. - "AOCF AOCF Association of Outplacement Consulting Firms ") totaled $289.7 million, a 22% pro forma increase from the prior year period. Telecommunications' net revenues rose to $603.5 million, a 9% pro forma increase, and AOCF increased to $239.9 million, a 16% pro forma increase over the year-earlier period. Rainbow Media Group's Core Networks' net revenues rose 6% to $137.2 million and AOCF increased 8% to $52.8 million. Excluding the impact of a $16.7 million charge for bad debt expense in the quarter related to the 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 bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most , net revenues and AOCF increase would have increased 19% and 42%, respectively. Total Telecommunications cash flow margin increased to 40.3% in the June 2002 quarter compared to 37.9% in the first quarter and 37.4% in the second quarter of 2001. The cash flow margin improvement is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to strong modem modem [modulator/demodulator], an external device or internal electronic circuitry used to transmit and receive digital data over a communications line normally used for analog signals. 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. and revenue growth, higher advertising revenue and lower selling, general and administrative expenses. 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:
Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. , which include our cable, Lightpath and high-speed businesses, continued to generate solid results. A 9% increase in revenue and 16% growth in cash flow were fueled largely by the continued strong demand for high-speed data services; an excellent quarter for Lightpath, which experienced a 30% increase in cash flow; and a very promising accelerated growth rate for iO, Cablevision's digital video service." "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 the consolidated sports business also reported positive results, despite a $16.7 million charge for bad debt expense related to the Adelphia bankruptcy. The Core Networks' increase in revenue and cash flow, 6% and 8% respectively, was powered by significant subscriber growth at Bravo and IFC as well as a 53% increase in sponsorship revenue at AMC." "Finally, we look forward to meeting with investors today in New York Today in New York is WNBC-TV's pre-Today newscast, also post-Today on weekends, airing from 5 AM to 7 AM weekdays with the local news cut ins being branded as such. to discuss in more detail our plans and answer questions," concluded Mr. Dolan.
Cablevision NY Group
Cablevision NY Group refers to the company's Consumer Services,
Business Services and other New York area assets as follows:
- Consumer Services: analog video, digital video,
high-speed data (HSD), residential telephony and
R&D/Technology
- Business Services: Lightpath Long Island, Lightpath developing
markets and business modem
- Other Businesses: Madison Square Garden, THE WIZ, Clearview
Cinemas, News12 Networks, MetroChannels and a 49.9% ownership
interest in Northcoast Communications, LLC.
Consumer Services
Net revenues for the second quarter increased 8% on a pro forma
basis over the year-earlier period to $567.5 million. AOCF for the
three-month period rose 16% on a pro forma basis to $228.3 million,
compared to the year-earlier period. Second quarter highlights
include:
- For the second quarter, the company lost 10,000 subscribers
compared to March 31, 2002. June basic cable subscribers
increased by 2,200. For the month of July, subscriber losses
totaled 11,800 compared to a loss of 10,800 in July 2001.
- 18,570 new iO: Interactive Optimum (sm) digital video
customers for a total of 42,670 customers
- 50,740 new HSD customers or 3,900 added per week
- HSD penetration was 19% of homes released compared to 14% in
June 2001
- Advertising revenue rose 8% compared to the second quarter of
2001.
iO, Cablevision's new digital video offering is now available to
more than 1,100,000 homes on Long Island and New Jersey. By year-end
the service is expected to be available to more than 2,400,000 homes
in the New York area.
Business Services
Lightpath's businesses throughout the New York metropolitan area
achieved a 24% increase in net revenues to $39.9 million. AOCF for the
second quarter increased 30% to $11.7 million from the prior year
period. Highlights include:
- A 34% increase in the number of buildings on-net
- A 35% increase in access lines
- A 20% increase in transmission and access line revenue.
MSG MSG: see glutamic acid. Madison Square Garden Current arenas in the National Hockey League Western Conference Eastern Conference includes MSG Network, Fox Sports Net New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , the New York Knicks, the New York Rangers The New York Rangers are a professional ice hockey team based in New York, New York, U.S.A. They are members of the Atlantic Division of the Eastern Conference of the National Hockey League (NHL). , the New York Liberty The New York Liberty is a Women's National Basketball Association (WNBA) team based in New York City. They are one of the eight original WNBA teams that began to see action in 1997, as well one of the most successful teams in WNBA history. , the MSG Arena complex, and Radio City Music Hall Radio City Music Hall New York City’s famous cinema; home of the Rockettes. [Am. Hist.: NCE, 2338] See : Theater . For the second quarter 2002, net revenue totaled $153.8 million, a 15% decline from the prior year period. AOCF for the quarter was $51.6 million compared to $39.7 million in the prior year period. The revenue decrease was primarily due to lower advertising revenue and affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. fees at MSG resulting from the Yankee Yankee, term used by Americans generally in reference to a native of New England and by non-Americans, especially the British, in reference to an American of any section. games no longer being telecast on MSG Network. The higher AOCF was primarily the result of a $30 million reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of an accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. for the NBA NBA abbr. 1. National Basketball Association 2. National Boxing Association NBA (US) n abbr (= National Basketball Association) → Basketball-Dachverband (= luxury tax for the 2001/2002 season. Retail Electronics For the second quarter, THE WIZ recorded net revenue of $132.1 million, a 15% decrease compared to the prior year period's $156.2 million. The AOCF deficit for the second quarter was $19.8 million compared to a $14.8 million AOCF deficit for the year-earlier period. Theatres For the three-month period ended June 30, 2002, net revenue for Clearview Clearview may refer to:
Rainbow NY Rainbow NY is comprised primarily of the five local News12 Networks operating in Long Island, New Jersey, Westchester Westchester is the name of some places in the United States of America:
Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). and the Bronx Bronx, river, c.20 mi (30 km) long, issuing from Kensico Reservoir, SE N.Y., and flowing SW through the Bronx into the East River. The Bronx River Parkway, one of the first limited-access highways in the New York City area, parallels a portion of the river. , as well as Rainbow's three local MetroChannels and Rainbow Advertising Sales Corp. These businesses recorded an AOCF deficit of $6.8 million in the second quarter of 2002 compared to an AOCF deficit of $11.5 million in the prior year period. The reduction in deficit was primarily due to increased affiliate revenue, reduced programming expenses and lower staff expenses. Other Other costs for the quarter amounted to $17.4 million for the second quarter of 2002 compared to $15.9 million in the prior year period and include corporate 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, MuchMusic USA and Mag Rack A frame or cabinet into which hardware components are mounted. Equipment may be bolted into the rack (see rack mounted), or placed on shelves. Stereo and home theater racks are cabinets with shelves designed to accommodate VCRs, CD, DVD and cassette decks, receivers, amplifiers and , as well as Rainbow's interests in the Fox Sports Net national service and Rainbow's ownership interests in five regional Fox Sports Net channels outside the New York market. These businesses are owned through Rainbow Media Holdings, Inc. which is 82.1% owned by Cablevision. As now required by the FASB's EITF EITF Emerging Issues Task Force EITF Edinburgh International Television Festival EITF Europe International Taekwon-Do Federation No. 01-09, the company has reclassified the amortization of deferred carriage carriage, wheeled vehicle, in modern usage restricted to passenger vehicles that are drawn or pushed, especially by animals. Carriages date from the Bronze Age; early forms included the two-wheeled cart and four-wheeled wagon for transporting goods. fees as a reduction to revenues versus expensing such costs as operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Amortization of deferred carriage fees has been reclassified for the 2001 period, with no effect on AOCF or net income (loss). The revenue impact for Rainbow Media Group is $2.9 million for the second quarter of 2001 and was $16.5 million for the full year 2001. American Movie Classics (AMC) AMC's second quarter 2002 net revenues increased 0.2% to $54.3 million and AOCF rose 1% to $28.6 million. Excluding a $6.2 million charge for bad debt expense related to the Adelphia Communications bankruptcy, revenue and AOCF would have increased 12% and 23%, respectively. The strong revenue and cash flow growth compared to the year-earlier period was attributable to a 4% increase in viewing subscribers, and $8.6 million of sponsorship revenue representing a 53% increase from the prior year period. Bravo/The Independent Film Channel (IFC) Bravo/IFC's second quarter 2002 net revenues increased 14% to $48.6 million and AOCF grew 58% to $17.7 million. Excluding a $2.7 million charge for bad debt expense related to the Adelphia Communications bankruptcy, revenue and cash flow would have increased 20% and 81%, respectively. Highlights include: - An 18% increase in Bravo's viewing subscribers - A 29% increase in IFC's viewing subscribers - A 23% increase from the year-earlier period in Bravo's advertising revenue to $17.3 million. Consolidated Regional Sports Consolidated Regional Sports is comprised of Fox Sports Net Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and and Ohio, both of which are 60% owned by Rainbow Media Holdings, Inc. Second quarter 2002 net revenues rose 6% to $34.3 million, and AOCF decreased 31% to $6.5 million for these properties. Excluding a $7.8 million charge for bad debt expense related to the Adelphia Communications bankruptcy, revenue and cash flow would have increased 30% and 52%, respectively. 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 9% to $56.9 million, and AOCF increased 12% to $10.1 million. Excluding a $2.0 million charge for bad debt expense related to the Adelphia Communications bankruptcy, revenue and cash flow would have increased 13% and 34%, respectively. Viewing subscribers totaled 10.6 million representing a 3% increase from the prior year period. Non-Consolidated Fox Sports Net Fox Sports Net's viewing subscribers totaled 73.8 million at the end of the quarter, a 1% increase from the prior year period. Developing Programming/Other Developing Programming/Other consists of WE: Women's Entertainment, MuchMusic USA, Rainbow Network Communications and other Rainbow start-up Start-up The earliest stage of a new business venture. ventures. Second quarter net revenues of $26.8 million represented a 35% increase compared to the prior year period due to increases of 15 million viewing subscribers for WE: Women's Entertainment and 10 million viewing subscribers for MuchMusic USA as compared to June 2001. The AOCF deficit for the three-month period was $7.4 million, a 24% improvement compared to an AOCF deficit of $9.7 million in the year-earlier period. The decrease in the AOCF deficit was primarily attributable to the improved operating performance at WE:Women's Entertainment offset by higher investment in MuchMusic USA. Mag Rack Mag Rack develops special interest video-on-demand The ability to deliver a movie, sports event or other video program to a TV set whenever the customer requests it. Video-on-demand (VOD) typically refers to free and paid programs from the cable TV companies or the telephone companies that offer video over DSL lines. content offered to cable companies. Mag Rack presently offers 27 video magazines and anticipates having between 35 and 40 distributed by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . The AOCF deficit for the second quarter was $4.7 million, a 13% improvement compared to an AOCF deficit of $5.4 million in the prior year period. Securities and Exchange Commission Filing On August 14, 2002, the company is expected to file with the Securities and Exchange Commission the requisite SEC certificate to be signed by Cablevision's principal executive officer, CEO James L. Dolan, and its principal financial officer, Vice Chairman William Bell William Bell may refer to:
2002 and 2003 Outlook 2002 Guidance The company affirms all 2002 Cablevision NY Group guidance previously provided except for: - Basic subscriber loss between 1% and 1.5% for the full year compared to the previously forcasted subscriber gain of between 0.5% and 1.0%. Please refer to the company's August 8, 2002 press release for further details that outline the 2002 and 2003 plans. Company Description Cablevision Systems Corporation is one of the nation's leading entertainment and telecommunications companies See telecom company. . Its cable television operations serve 3 million households located in the New York metropolitan area. The company's advanced telecommunications offerings include its Lightpath integrated business communications services; its Optimum-branded high-speed Internet See broadband. service and iO: Interactive Optimum, the company's newly introduced digital television offering. Cablevision's Rainbow Media Holdings, Inc. operates programming businesses including American Movie Classics, Bravo, The Independent Film Channel and other national and regional services. In addition, Rainbow is a 50 percent partner in Fox Sports Net. Cablevision also owns a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail and operates Madison Square Garden and its sports teams including the Knicks and Rangers 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 company operates New York's famed Radio City Music Hall and owns and operates THE WIZ consumer electronics stores and Clearview Cinemas in the New York metropolitan area. Additional information about Cablevision Systems Corporation is available on the Web at www.cablevision.com. This earnings release contains statements that constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the company and its business, operations, financial condition and the industry in which it operates and the factors described in the company's filings with the Securities and Exchange Commission, including the sections entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Risk Factors" and "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" contained therein. The company disclaims any obligation to update the forward-looking statements contained herein. Cablevision's Web site: www.cablevision.com CVC and RMG 2Q 2002 earnings announcements Webcast live at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy Conference call dial-in number for CVC and RMG is (973) 872-3100 Conference call replay number (973) 341-3080 / reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. no. 3333752 until August 15th
CABLEVISION SYSTEMS CORPORATION
CONDENSED CONSOLIDATED OPERATIONS DATA AND PRO FORMA RECONCILIATION
(Dollars in thousands, except per share data)
(Unaudited)
Six Months Ended June 30, Three Months Ended June 30,
------------------------- ---------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
Pro forma revenues,
net $2,167,726 $2,069,446 $1,065,556 $1,042,143
Elimination of
deferred revenue
amortization relating
to At Home
warrants - 35,626 - 16,921
----------- ----------- ----------- -----------
Revenues, net $2,167,726 $2,105,072 $1,065,556 $1,059,064
=========== =========== =========== ===========
Pro forma AOCF $ 508,589 $ 432,335 $ 289,667 $ 237,471
Elimination of
deferred revenue
amortization relating
to At Home
warrants - 35,626 - 16,921
Stock plan income 56,837 20,101 38,823 38,958
Long-term incentive
plan expense (12,081) (13,224) (5,977) (10,201)
Restructuring
charges (4,465) - (4,465) -
----------- ----------- ----------- -----------
Operating profit
before depreciation
and amortization 548,880 474,838 318,048 283,149
Depreciation and
amortization* (432,291) (488,104) (221,221) (240,158)
----------- ----------- ----------- -----------
Operating income
(loss) 116,589 (13,266) 96,827 42,991
Other income (expense):
Interest expense,
net (241,410) (260,876) (122,252) (126,426)
Gain on sale of
cable assets and
programming interests,
net - 2,178,080 - 744,588
Gain (loss) on
investments, net (925,388) 189,743 (506,938) (25,089)
Gain (loss) on
derivative
contracts, net 818,075 (13,021) 522,536 (12,056)
Loss on early
extinguishment
of debt (17,237) - (17,237) -
Minority interests (121,962) (306,402) (74,853) (278,655)
Other items, net (31,512) (31,682) (16,483) (16,897)
----------- ----------- ----------- -----------
Income (loss) before
income taxes (402,845) 1,742,576 (118,400) 328,456
Income tax (expense)
benefit 55,062 (376,211) 20,247 (89,966)
----------- ----------- ----------- -----------
Net income (loss) $ (347,783) $1,366,365 $ (98,153) $ 238,490
=========== =========== =========== ===========
INCOME (LOSS) PER SHARE:
CNYG Common Stock
Income (loss)
applicable
to common stock $(358,374) $1,015,086 $ (103,404) $(121,740)
=========== =========== =========== ===========
Basic
Basic net
income (loss)
per common share $ (2.04) $ 5.80 $ (.59) $ (.69)
=========== =========== =========== ===========
Basic weighted
average
common shares
(in thousands) 175,462 175,119 175,481 175,194
=========== =========== =========== ===========
Diluted
Diluted net income
(loss) per common
share $ (2.04) $ 5.70 $ (.59) $ (.69)
=========== =========== =========== ===========
Diluted weighted
average common
shares (in
thousands) 175,462 178,150 175,481 175,194
=========== =========== =========== ===========
RMG Tracking Stock
Income applicable
to common stock $ 10,591 $ 351,279 $ 5,251 $ 360,230
=========== =========== =========== ===========
Basic
Basic net
income per
common share $ .11 $ 4.01 $ .05 $ 4.11
=========== =========== =========== ===========
Basic weighted
average
common shares
(in thousands) 95,163 87,571 95,583 87,620
=========== =========== =========== ===========
Diluted
Diluted net
income per
common share $ .11 $ 3.96 $ .05 $ 4.04
=========== =========== =========== ===========
Diluted weighted
average common
shares (in
thousands) 96,527 89,203 96,595 89,125
=========== =========== =========== ===========
* The 2001 periods include amortization of approximately
$132,572 and $57,973, respectively, relating to intangibles no
longer amortized due to the implementation, in 2002, of a new
accounting statement (Statement 142) which addresses the
assessment and amortization of intangible assets including
goodwill. No impairment losses were recorded in connection
with this implementation.
CABLEVISION SYSTEMS CORPORATION
CONDENSED CONSOLIDATED OPERATIONS DATA AND PRO FORMA RECONCILIATION
(Dollars in thousands, except per share data)
(Unaudited)
PRO FORMA ADJUSTMENTS
The following is a description of the pro forma adjustments
included in this earnings release:
-- Elimination of deferred revenue amortization relating to At
Home warrants. Under GAAP, we amortized into revenue an
allocation of the initial value of certain warrants we
received from At Home Corporation. In connection with the
termination of the At Home agreement, we have eliminated this
revenue recognition from the 2001 period.
-- Long-term incentive plan expense. This adjustment eliminates
the expense associated with contingent long-term incentive
plan awards for senior executives that vest over varying
periods.
-- Stock plan income (expense). This adjustment eliminates the
income or expense associated with vesting, and marking to
market, of stock appreciation rights granted under our
employee stock option plan.
-- Restructuring charges. This adjustment eliminates the
charge in the second quarter of 2002 associated with
adjustments to the estimated costs of elimination of
positions related to the company's fourth quarter 2001
restructuring charge.
CAPITALIZATION
Actual
June 30, 2002
----------------
Cash $ 224,910
============
Bank debt 1,853,570
Collateralized indebtedness 1,208,971
Senior notes and debentures 3,691,309
Subordinated notes and debentures 599,091
Capital lease obligations 103,453
Redeemable preferred stock 1,544,294
------------
Debt and redeemable preferred stock $9,000,688
============
LEVERAGE
Debt and redeemable preferred stock $9,000,688
Less: collateralized
indebtedness* and cash (1,433,881)
------------
Net debt and redeemable preferred stock $7,566,807
============
Actual
Running Rate**
----------------
Consolidated Net Debt & Redeemable
Preferred/pro forma AOCF 7.3x
* Collateralized indebtedness is excluded for the purpose of the
leverage calculation as the debt is collateralized by
investment securities.
** For purposes of calculating leverage, AOCF for Madison Square
Garden is based on a trailing 12 months.
CABLEVISION SYSTEMS CORPORATION
CABLEVISION NY GROUP
COMBINED OPERATING RESULTS
(Dollars in thousands)
(Unaudited)
NET REVENUES Three Months Ended June 30,
---------------------------
2002 2001 Pro Forma
Actual Pro Forma Change
------------ ------------ ------------
TELECOMMUNICATIONS:
Consumer Services $567,494 $527,929 7.5%
Business Services 39,914 32,293 23.6%
Eliminations* (3,958) (4,127) -
------------ ------------
Total Telecommunications 603,450 556,095 8.5%
------------ ------------
MSG 153,804 181,406 (15.2)%
Rainbow NY 29,439 28,560 3.1%
Retail Electronics 132,144 156,207 (15.4)%
Theatres 22,221 18,110 22.7%
Other - 12 -
Eliminations** (30,343) (39,465) 23.1%
------------ ------------
Total Cablevision NY Group $910,715 $900,925 1.1%
============ ============
NET REVENUES Six Months Ended June 30,
---------------------------
2002 2001 Pro Forma
Actual Pro Forma Change
------------ ------------ ------------
TELECOMMUNICATIONS:
Consumer Services $1,127,818 $1,027,094 9.8%
Business Services 76,719 61,206 25.3%
Eliminations* (8,027) (7,923) -
------------ ------------
Total Telecommunications 1,196,510 1,080,377 10.7%
------------ ------------
MSG 360,901 398,305 (9.4)%
Rainbow NY 56,374 53,970 4.5%
Retail Electronics 271,686 307,070 (11.5)%
Theatres 41,490 36,559 13.5%
Other - 200 -
Eliminations** (70,003) (76,119) 8.0%
------------ ------------
Total Cablevision NY Group $1,856,958 $1,800,362 3.1%
============ ============
* Represents intra-segment revenues.
** Represents inter-segment revenues.
Note: The pro forma net revenues referred to above give effect to
the exclusion of deferred revenue amortization relating to the At Home
warrants.
CABLEVISION SYSTEMS CORPORATION
CABLEVISION NY GROUP
COMBINED OPERATING RESULTS (cont'd)
(Dollars in thousands)
(Unaudited)
OPERATING CASH FLOW Three Months Ended June 30,
-----------------------------
2001
2002 2002 Pro Forma Pro Forma
Actual AOCF* AOCF* Change
----------- ----------- ----------- -----------
TELECOMMUNICATIONS:
Consumer Services $243,395 $228,269 $197,596 15.5%
Business Services 12,207 11,670 9,000 29.7%
----------- ----------- -----------
Total
Telecommunications 255,602 239,939 206,596 16.1%
----------- ----------- -----------
MSG 55,277 51,618 39,712 30.0%
Rainbow NY (3,581) (6,805) (11,508) 40.9%
Retail Electronics (18,931) (19,761) (14,812) (33.4)%
Theatres 2,057 1,289 (648) -
Other (18,442) (17,432) (15,852) (10.0)%
----------- ----------- -----------
Total Cablevision
NY Group $271,982 $248,848 $203,488 22.3%
=========== =========== ===========
OPERATING CASH FLOW Six Months Ended June 30,
-----------------------------
2001
2002 2002 Pro Forma Pro Forma
Actual AOCF* AOCF* Change
----------- ----------- ----------- -----------
TELECOMMUNICATIONS:
Consumer Services $463,328 $440,484 $389,063 13.2%
Business Services 23,022 21,573 13,389 61.1%
----------- ----------- -----------
Total
Telecommunications 486,350 462,057 402,452 14.8%
----------- ----------- -----------
MSG 66,023 61,630 55,080 11.9%
Rainbow NY (15,502) (20,301) (27,363) 25.8%
Retail Electronics (39,609) (40,400) (32,204) (25.5)%
Theatres 1,807 1,018 (697) -
Other (32,079) (31,069) (25,003) (24.3)%
----------- ----------- -----------
Total Cablevision
NY Group $466,990 $432,935 $372,265 16.3%
=========== =========== ===========
* Excludes restructuring charges of $4,465 in both periods ended
June 30, 2002. Also excludes actual stock plan income of
$32,033 and $47,204, respectively, and actual long-term
incentive plan expense of $4,434 and $8,684, respectively, in
the three and six months ended June 30, 2002. Also excludes
actual stock plan income of $31,787 and $14,515, respectively,
and actual long-term incentive plan expense of $7,445 and
$9,852, respectively, in the three and six months ended June
30, 2001. The long-term incentive plan consists of cash awards
to senior executives of the company that vest over varying
periods, some of which are performance based.
Note: The pro forma adjusted operating cash flows referred to
above give effect to the exclusion of deferred revenue amortization
relating to At Home warrants and stock plan and long-term incentive
plan income or expense.
CABLEVISION SYSTEMS CORPORATION
CABLEVISION NY GROUP
CONDENSED COMBINED OPERATIONS DATA AND PRO FORMA RECONCILIATION
(Dollars in thousands)
(Unaudited)
Six Months Ended June 30, Three Months Ended June 30,
------------------------- --------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
Pro forma
revenues, net $1,856,958 $1,800,362 $ 910,715 $ 900,925
Elimination of
deferred revenue
amortization relating
to At Home
warrants - 35,626 - 16,921
----------- ----------- ----------- -----------
Revenues, net $1,856,958 $1,835,988 $ 910,715 $ 917,846
=========== =========== =========== ===========
Pro forma AOCF $ 432,935 $ 372,265 $ 248,848 $ 203,488
Elimination of deferred
revenue amortization
relating to At Home
warrants - 35,626 - 16,921
Stock plan income 47,204 14,515 32,033 31,787
Long-term incentive
plan expense (8,684) (9,852) (4,434) (7,445)
Restructuring
charges (4,465) - (4,465) -
----------- ----------- ----------- -----------
Operating profit
before depreciation
and amortization 466,990 412,554 271,982 244,751
Depreciation and
amortization (407,035) (467,550) (209,028) (229,600)
----------- ----------- ----------- -----------
Operating income
(loss) 59,955 (54,996) 62,954 15,151
Other income (expense):
Interest expense,
net (238,285) (248,499) (119,847) (127,025)
Gain (loss) on
sale of cable
assets, net - 1,431,778 - (1,714)
Gain (loss) on
investments, net (925,388) 189,743 (506,938) (25,089)
Gain (loss) on derivative
contracts, net 818,075 (13,021) 522,536 (12,056)
Loss on early
extinguishment
of debt (17,237) - (17,237) -
Other items, net (34,625) (28,005) (22,159) (21,345)
----------- ----------- ----------- -----------
Income (loss) before
income taxes (337,505) 1,277,000 (80,691) (172,078)
Income tax benefit
(expense) 73,984 (159,632) 37,873 126,613
----------- ----------- ----------- -----------
Net income (loss)
before dividend
requirements (263,521) 1,117,368 (42,818) (45,465)
Dividend requirements
applicable to
preferred stock (87,258) (87,258) (43,629) (43,629)
----------- ----------- ----------- -----------
Net income (loss) (350,779) 1,030,110 (86,447) (89,094)
Net income or loss
attributed to
parties other than
Cablevision
Systems Corporation
shareholders (7,595) (15,024) (16,957) (32,646)
----------- ----------- ----------- -----------
Net income (loss)
attributed to
Cablevision Systems
Corporation
shareholders $ (358,374) $1,015,086 $(103,404) $(121,740)
=========== =========== =========== ===========
CAPITALIZATION
Actual
June 30, 2002
---------------
Cash $ 37,451
===============
Senior debt 1,452,422
Senior notes and debentures 3,691,309
Subordinated notes and debentures 599,091
Redeemable preferred stock 1,544,294
Other Debt:
Collateralized indebtedness 1,208,971
MSG senior debt 243,305
Retail Electronics & Other 124,288
---------------
Debt and redeemable preferred stock 8,863,680
Less: collateralized indebtedness* and cash (1,246,422)
---------------
Net debt and redeemable preferred stock $7,617,258
===============
LEVERAGE
Actual
Running Rate
---------------
Notes and Debentures Ratio** 5.8x
* Collateralized indebtedness is excluded for the purpose of the
leverage calculation as the debt is collateralized by
investment securities.
** Reflects debt to cash flow ratio applicable under indentures
pursuant to which the notes and debentures were issued. The
Restricted Group annualized running rate cash flow for June
30, 2002 is $1,012,000.
Cablevision Systems Corporation
CABLEVISION NY GROUP
SUMMARY OF PRO FORMA OPERATING STATISTICS
(Unaudited)
June 30, March 31, June 30,
2002 2002 2001
------------ ----------- -----------
CONSUMER SERVICES
Homes Passed 4,352,498 4,344,095 4,319,810
========== ========== ==========
Basic Video Customers 2,990,923 3,000,950 2,999,105
New Services Customers 665,827 596,985 380,285
---------- ---------- ----------
Total Revenue
Generating Units 3,656,750 3,597,935 3,379,390
========== ========== ==========
Basic Video Penetration 68.7% 69.1% 69.4%
----------------------------------------------------------------------
iO - Digital Video
Homes Released 1,064,985 685,930 -
Customers 42,670 24,100 -
Penetration 4.0% 3.5% -
----------------------------------------------------------------------
Optimum Online - High-Speed Data
Homes Released 3,254,140 3,127,270 2,558,300
Customers 610,505 559,765 367,800
Penetration 18.8% 17.9% 14.4%
Average Monthly Revenue
per Customer $33.60 $33.24 $30.25
----------------------------------------------------------------------
Optimum Telephone-Residential
Homes Marketed 157,320 157,320 153,000
Customers 12,650 13,120 12,485
Penetration 8.0% 8.3% 8.2%
Average Monthly Revenue
per Customer $58.62 $59.40 $66.09
----------------------------------------------------------------------
Consumer Revenues ($ millions, except per subscriber data)
Recurring Video $462 $459 $447
PPV 13 12 15
Advertising 23 17 21
Other (a) 8 13 13
---------- ---------- ----------
Total Video Revenues 506 501 496
High Speed Data 59 57 30
Residential Telephone & Other 2 2 2
---------- ---------- ----------
Total Consumer Revenue $567 $560 $528
========== ========== ==========
Recurring Revenue per
Video Customer (b) $51.56 $51.40 $50.00
AOCF Margin 40.3% 37.9% 37.4%
----------------------------------------------------------------------
BUSINESS SERVICES
Buildings on-net 1,377 1,330 1,030
Access Lines 136,935 132,095 101,475
Fiber Miles 59,700 58,295 48,858
Route Miles 1,497 1,447 1,219
AOCF Margin 29.2% 26.9% 21.9%
----------------------------------------------------------------------
Capital Expenditures ($ thousands) Six Months Ended June 30,
---------------------------------- -------------------------
2002 2001
--------- ---------
Consumer Services $371,597 $458,049
Business Services 52,425 89,423
Retail Electronics 6,956 13,541
Rainbow NY 73,832 14,985
Other 50,892 78,639
--------- ---------
Total Cablevision NY Group $555,702 $654,637
========= =========
(a) Other Consumer revenue includes installation revenue, guide
revenue, and other product offerings
(b) Recurring revenue per video subscriber includes only monthly
subscription revenue for analog and digital video services
CABLEVISION SYSTEMS CORPORATION
RAINBOW MEDIA GROUP
COMBINED OPERATING RESULTS
(Dollars in thousands)
(Unaudited)
NET REVENUES Three Months Ended June 30,
------------ ---------------------------
2002 2001
Actual Actual Change
-------- -------- --------
AMC $ 54,316 $ 54,184 0.2%
Bravo/IFC 48,582 42,723 13.7%
Consolidated Regional Sports 34,317 32,440 5.8%
--------- ---------
Subtotal Core Networks 137,215 129,347 6.1%
Developing/Other 26,824 19,888 34.9%
Mag Rack 32 - -
Eliminations* (4,785) (4,365) -
--------- ---------
TOTAL RMG $159,286 $144,870 10.0%
========= =========
NET REVENUES Six Months Ended June 30,
------------ --------------------------
2002 2001
Actual Actual Change
-------- -------- --------
AMC $113,280 $108,761 4.2%
Bravo/IFC 95,871 82,845 15.7%
Consolidated Regional Sports 66,623 58,571 13.7%
--------- ---------
Subtotal Core Networks 275,774 250,177 10.2%
Developing/Other 53,099 35,786 48.4%
Mag Rack 59 - -
Eliminations* (9,195) (8,479) -
--------- ---------
TOTAL RMG $319,737 $277,484 15.2%
========= =========
OPERATING CASH FLOW Three Months Ended June 30,
------------------- ---------------------------
2002 2002 2001
Actual AOCF** AOCF** Change
-------- ------- ------- ------
AMC $29,591 $28,613 $28,385 0.8%
Bravo/IFC 19,414 17,737 11,247 57.7%
Consolidated Regional
Sports 7,544 6,482 9,441 (31.3)%
------- ------- -------
Subtotal Core Networks 56,549 52,832 49,073 7.7%
Developing/Other (6,040) (7,356) (9,725) 24.4%
Mag Rack (4,443) (4,657) (5,365) 13.2%
------- ------- -------
TOTAL RMG $46,066 $40,819 $33,983 20.1%
======= ======= =======
OPERATING CASH FLOW Six Months Ended June 30,
------------------- -------------------------
2002 2002 2001
Actual AOCF** AOCF** Change
-------- ------- ------- ------
AMC $ 59,579 $ 58,485 $ 54,564 7.2%
Bravo/IFC 32,557 30,645 22,472 36.4%
Consolidated Regional
Sports 15,916 14,579 15,384 (5.2)%
------- ------- -------
Subtotal Core
Networks 108,052 103,709 92,420 12.2%
Developing/Other (15,811) (17,385) (22,266) 21.9%
Mag Rack (10,351) (10,670) (10,084) (5.8)%
------- ------- -------
TOTAL RMG $ 81,890 $ 75,654 $ 60,070 25.9%
======= ======= =======
* Represents inter-segment revenues.
** Excludes stock plan income of $6,790 and $9,633, respectively,
and long-term incentive plan expense of $1,543 and $3,397,
respectively, in the three and six months ended June 30, 2002.
Also excludes stock plan income of $7,171 and $5,586,
respectively, and long-term incentive plan expense of $2,756 and
$3,372, respectively, in the three and six months ended June 30,
2001. The long-term incentive plan consists of cash awards to
senior executives of the company that vest over varying periods,
some of which are performance based.
CABLEVISION SYSTEMS CORPORATION
RAINBOW MEDIA GROUP
COMBINED OPERATING RESULTS
(Dollars in thousands)
(Unaudited)
CAPITAL EXPENDITURES Six Months Ended June 30,
-------------------- -------------------------
2002 2001
------ ------
Rainbow Media Group $4,010 $5,643
NON-CONSOLIDATED REGIONAL SPORTS
- Managed Businesses
100% of these affiliated entities'
net revenues and AOCF are reflected below:
Three Months Ended June 30,
---------------------------
Non-consolidated Regional Sports 2002 2001 Change
-------------------------------- ----- ----- -------
Revenues, net $56,852 $52,377 9%
AOCF 10,124 9,026 12%
Six Months Ended June 30,
-------------------------
Non-consolidated Regional Sports 2002 2001 Change
-------------------------------- ----- ----- -------
Revenues, net $109,409 $101,877 7%
AOCF 16,809 15,103 11%
Note: Regional Sports includes Fox Sports Net Chicago, Fox Sports Net
Bay Area and Fox Sports Net New England in which Rainbow Media
Holdings holds a 30% effective ownership interest.
Viewing Subscribers Basic Subscribers
------------------- -----------------
June 30, June 30,
-------- --------
2002 2001 2002 2001
------ ------ ------ ------
SUBSCRIBERS (thousands)
-----------
AMC 72,600 69,990 79,600 77,010
Bravo 57,700 48,940 71,000 64,550
IFC 24,100 18,710 61,400 48,720
WE: Women's
Entertainment 40,800 25,630 63,000 43,050
MuchMusic USA 24,000 14,430 55,900 40,780
Consolidated Regional
Sports (Florida & Ohio) 7,800 7,540 8,500 8,160
Non-Consolidated Fox
Sports Networks
(Bay Area, New England,
Chicago) 10,600 10,300 11,600 11,330
Fox Sports Net 73,800 72,650 82,500 81,100
CABLEVISION SYSTEMS CORPORATION
RAINBOW MEDIA GROUP
CONDENSED COMBINED OPERATIONS DATA AND PRO FORMA RECONCILIATION
(Dollars in thousands)
(Unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
------------------ ------------------
2002 2001 2002 2001
------ ------ ------ ------
Revenues, net $319,737 $277,484 $159,286 $144,870
======== ======== ======== ========
AOCF $ 75,654 $ 60,070 $ 40,819 $ 33,983
Stock plan income 9,633 5,586 6,790 7,171
Long-term incentive
plan expense (3,397) (3,372) (1,543) (2,756)
-------- -------- -------- --------
Operating profit before
depreciation and
amortization 81,890 62,284 46,066 38,398
Depreciation and
amortization (25,256) (20,554) (12,193) (10,558)
-------- -------- -------- --------
Operating income 56,634 41,730 33,873 27,840
Other income (expense):
Interest income
(expense), net (3,125) (12,377) (2,405) 599
Gain on sale of
programming interests - 746,302 - 746,302
Other items, net 3,113 (3,677) 5,676 4,448
-------- -------- -------- --------
Income before
income taxes 56,622 771,978 37,144 779,189
Income tax expense (18,922) (216,579) (17,626) (216,579)
-------- -------- -------- --------
Net income 37,700 555,399 19,518 562,610
Net income or loss
attributed to parties
other than Cablevision
Systems Corporation
shareholders (27,109) (204,120) (14,267) (202,380)
-------- -------- -------- --------
Net income attributed
to Cablevision
Systems Corporation
shareholders $ 10,591 $351,279 $ 5,251 $360,230
======== ======== ======== ========
CAPITALIZATION
Actual
June 30, 2002
-------------
Cash $187,459
========
Rainbow Media Group senior debt 114,000
Capital lease obligations 23,008
--------
Total Rainbow Media Group debt $137,008
========
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion