Cablevision Systems Corporation Reports Third 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)--Nov. 13, 2001 - Combined Cable, Lightpath, High-Speed Data Revenue Up 11%, Cash Flow Up 13% - High-Speed Data Penetration Exceeds 15% - RMG Core Networks Revenue Up 18%, Cash Flow Up 19% - Raises Guidance for Video and High-Speed Data Customers for 2001 - Raises Cash Flow Guidance for RMG Core Networks 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 September September: 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 September 30, 2001, the Company recorded net revenues of $1.0 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 $186.1 million, a 17% pro forma decrease from the prior period primarily due to player contract write-offs at Madison Square Garden Current arenas in the National Hockey League Western Conference Eastern Conference . 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 11% to $551.5 million and AOCF increased 13% to $241.0 million. Rainbow Media Group's core networks net revenues rose 18% to $126.5 million with AOCF increasing 19% 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:
(flight) → Nonstop-, Non-Stop- adv → ununterbrochen; [fly] → to ensure the continuous operation of our telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. platform and programming services as well as our entertainment and retail operations during a very difficult time in the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of market." Mr. Dolan continued: "With a combined revenue increase of 11% and cash flow growth of 13%, Cablevision's cable, Lightpath and high-speed data businesses continue to perform well. Optimum Online's growth in penetration The successful unauthorized breach of a security perimeter. See penetration test. rates was bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by our self-install strategy and, at the end of the quarter, we launched iO: Interactive Optimum, the industry's most robust and ambitious digital offering to date. These digital services further underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the potential value of Cablevision's platform and content offerings." "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 achieve excellent results in the third quarter, demonstrating the ongoing strength of our programming networks. RMG's core revenue and cash flow growth, up 18% and 19% respectively, were powered by continued subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. gains and new advertising revenue streams, even in a decidedly difficult advertising market," Mr. Dolan concluded. Cablevision NY Group Cablevision NY Group refers to the Company's cable television systems, Lightpath - its New York area commercial telephone business, Optimum Online Optimum Online (OOL) is a broadband Internet service provider subsidiary of Cablevision. Optimum Online serves Long Island, other parts of New York, the Bronx, Brooklyn, Westchester, parts of New Jersey, Connecticut, and Pennsylvania. - its high-speed data service, New Media - its developing businesses, Madison Square Garden, THE WIZ, Clearview Clearview may refer to:
LLC - Logical Link Control . Cable Operations Net revenues for the third quarter increased 5% over the year-earlier period to $490.0 million. AOCF for the three-month period rose 4% to $222.1 million, compared to the corresponding quarter in 2000. Highlights include: - Continued cable subscriber gains - up .9% compared to the prior year period - 17,000 new OptimumTV customers added in the third quarter - 49% of homes marketed - An 8% increase in pay-per-view pay-per-view n. A service offered by cable television companies that allows subscribers to view special programs for an additional charge. pay revenue primarily due to more movie buys. 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 5% to $49.93 compared to $47.64 in September 2000. The AOCF margin for the third quarter of 2001 was 45.3% as compared to 45.7% in the prior year period and 44.6% in the second quarter of 2001 primarily due to a 12% increase in programming expenses. Commercial Telephone - Long Island Lightpath Long Island recorded net revenues of $25.5 million for the third quarter, a 17% increase from the year-earlier period. AOCF for the three months ended September 30, 2001 was $16.4 million, up 18% from the prior year period. Highlights include: - A 32% increase in the number of buildings on-net Connected to the Internet, or connected to a LAN or WAN. Contrast with off-net. - A 22% increase in access lines - A 22% increase in transmission and access line revenue and a 27% increase in usage 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 September 30, 2001, OOL net revenues rose to $36.1 million, a 22% sequential One after the other in some consecutive order such as by name or number. increase from the prior quarter's $29.5 million. Third quarter AOCF of $2.5 million marks the first full quarter OOL has generated positive AOCF. In the prior year period OOL recorded an AOCF deficit of $14.8 million. Highlights include: - 55,000 new customers added or 4,230 per week in the seasonally slower summer months reflecting the Company's retail self-install strategy - 15.3% penetration of homes released, up from 14.4% in the second quarter of 2001 and 8.1% in the year earlier period - 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 24% and 20%, respectively, compared to 12% and 13%, respectively, in the prior year period - 203,000 additional HSD-ready homes released for a total of 2.8 million - Less than 1% of the Company's HSD customers are connected to the @Home service. New Media New Media consists of the Company's developmental telecommunications 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 September 30, 2001, net revenue totaled $26.2 million, rising 41% compared to $18.6 million in the prior year period primarily due to growth from Lightpath's developing markets. The AOCF deficit was $8.0 million compared to an AOCF deficit of $.3 million in the year-earlier period primarily related to development and deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. expenses associated with the digital service rollout. 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:
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. , have added the following new customers: - Montefiore Hospital in 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. - activated activated a state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. the Lightpath Interactive Healthcare Network providing video, 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 , and intranet services - Clarkstown Central School District in Rockland County, New York York, former name of Toronto, Canada York, Ont.: see Toronto, Ont., Canada. York, city, England York, city (1991 pop. 123,126) and district, North Yorkshire, N England, at the confluence of the Ouse and Foss rivers. - signed a five-year contract to build a fiber-based private network among the schools and administrative offices in the school district. 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 third quarter 2001, net revenue totaled $128.7 million, down 11%, primarily due to fewer shows and attractions at the MSG Arena and at Radio City Music Hall than in the prior year period. The AOCF deficit of $32.4 million, compared to AOCF of $24.2 million in the year-earlier period, was primarily related to the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of certain Knicks' players contracts. Retail Electronics THE WIZ recorded net revenue of $153.9 million, a 3% decrease for the third quarter compared to the prior year period primarily due to the closing of six THE WIZ retail locations in Manhattan Manhattan, indigenous people of North America Manhattan (mănhăt`ən), indigenous people of North America of the Algonquian-Wakashan linguistic stock (see Native American languages). for several days following the events of September 11th. The AOCF deficit for the third quarter was $16.9 million, 6% better than the prior year period's $18.0 million deficit. Theatres For the three-month period ended September 30, 2001, net revenues for Clearview Cinemas was $20.7 million, a 5% increase from the prior year period. The AOCF deficit for the quarter was $1.0 million, compared to an AOCF deficit of $.7 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, as well as Rainbow's three local MetroChannels and Rainbow Advertising Sales Corp. These businesses recorded an AOCF deficit of $13.3 million compared to an AOCF deficit of $9.7 million in the prior year period. Other Other costs amounted to $17.9 million for the third quarter of 2001 compared to $15.0 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 (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 76.5% owned by Cablevision. American Movie Classics (AMC) AMC's net revenues increased 13% to $53.2 million and AOCF grew 12% to $25.4 million. The strong revenue and cash flow growth compared to the year earlier period was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a 4% increase in viewing subscribers, affiliate 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 a doubling, compared to the prior year period, of sponsorship revenue to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $5 million. Bravo/The Independent Film Channel (IFC) Bravo/IFC's net revenues increased 32% to $41.8 million and AOCF grew 30% to $13.8 million. Highlights include: - An 18% increase in Bravo's viewing subscribers which total 50.8 million - A 65% increase in IFC's viewing subscribers which total 20.1 million - A 43% rise from the year-earlier period in Bravo's advertising revenue to $11.8 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 11% to $31.6 million, and AOCF increased 27% to $9.9 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 third quarter, net revenues grew 10% to $51.8 million, and AOCF increased 35% to $10.1 million. Viewing subscribers totaled 10.4 million, representing a 5% increase from the prior year period. Non-Consolidated Fox Sports Net Fox Sports Net's viewing subscribers totaled 72 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. Third quarter net revenues of $21.4 million represented a 31% 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 $6.5 million compared to $8.1 million in the year-earlier period. The decrease in the AOCF deficit was attributable primarily to lower losses incurred by WE:Women's Entertainment as its viewing subscribers increased 22% to 27 million. 2001 Guidance The Company is revising its 2001 guidance as follows: Cablevision NY Group - Cable subscriber growth expected to be 1.3% up from .75%-1.0% due to strong subscriber gains thus far in the fourth quarter. This growth is partly attributable to the inability of some customers to receive off-air off-air adj. Spoken, occurring, or used not during broadcasting or not while being recorded for broadcasting: an off-air argument; off-air discussion. signals following the events of September 11th, with 50% of the subscriber growth coming from the Bronx and Brooklyn Brooklyn (br  k`lĭn), borough of New York City (1990 pop. 2,300,664), 71 sq mi (184 sq km), coextensive with Kings co., SE N.Y. .- Cable modem customers are expected to exceed 490,000, up from 475,000 previously forecasted. The Company revises 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 pro forma cash flow guidance (excluding the $30 million settlement payment from the YankeeNets) for 2001 to between $45 million and $50 million from the prior estimate of approximately $80 million due to the write-off of a contract for a Knicks player. Rainbow Media Group Revenue is expected to increase at least 16% in 2001 compared to the prior guidance of 14% to 16%. Cash flow is forecasted to increase approximately 17% compared to 14% to 16% previously forecasted. Financing Activities On November November: see month. 1, 2001, CSC (Card Security Code) A three- or four-digit number printed on the back of credit cards for security purposes. Called "Card Verification Value" (CVV) by Visa, "Card Validation Code" (CVC) by MasterCard and "Card Identification (CID) by American Express and Discover, Holdings redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. $450 million (aggregate amount) of 9-1/4% and 9-7/8% senior subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes due 2005 and 2006. The funding for the redemptions came from borrowings under the Company's bank credit facility. In October October: see month. , AT&T and its subsidiaries successfully completed the sale of 46.1 million shares, or 94% of its ownership interest in Cablevision NY Group (19.2 million shares of Cablevision NY Group Class A common stock sold by AT&T and 26.9 million units of a mandatorily Adv. 1. mandatorily - in a manner that cannot be evaded; "the ministry considers that contributions to such a fund should be met from voluntary donations rather than from rates compulsorily levied." compulsorily, obligatorily exchangeable trust security exchangeable into an equal number of Cablevision NY Group Class A common shares in November 2004 were sold by subsidiaries of AT&T through a trust). 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 43 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 filings with the Securities and Exchange Commission, 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 3Q 2001 earnings announcement Webcast live at 10:00 a.m. EST
RMG 3Q 2001 earnings announcement Webcast live beginning at
approximately 10:45 a.m. EST
Conference call dial-in number for CVC and RMG (973) 872-3100
Conference call replay number (877) 519-4471 / reservation
#2819371 available until 12:30 p.m. on November 15th
CABLEVISION SYSTEMS CORPORATION
CONDENSED CONSOLIDATED OPERATIONS DATA
(Dollars in thousands, except per share data)
(Unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
-------------------- --------------------
2001 2000 2001 2000
---- ---- ---- ----
Revenues, net $3,115,305 $3,165,349 $1,003,781 $1,035,548
========== ========== ========== ==========
Operating profit
before depreciation
and amortization:
Cablevision
NY Group 594,162 712,927 181,608 234,125
Rainbow Media Group 102,900 97,831 40,616 30,774
---------- ---------- ---------- ----------
Sub-total 697,062 810,758 222,224 264,899
Depreciation and
amortization 759,254 709,333 271,150 238,503
---------- ---------- ---------- ----------
Operating income
(loss) (62,192) 101,425 (48,926) 26,396
Other income (expense):
Interest expense,
net (397,782) (417,235) (137,959) (148,392)
Gain on sale of
cable assets
and programming
interests, net 2,178,088 130,758 8 130,758
Loss on investments,
net (81,807) - (271,239) -
Minority interests (326,852) (124,013) (20,450) (37,158)
Gain on derivative
contracts, net 355,805 - 368,826 -
Other items, net (54,074) (18,320) (21,650) (11,746)
---------- ---------- ---------- ---------
Income (loss) before
income taxes 1,611,186 (327,385) (131,390) (40,142)
Income tax
(expense) benefit (321,884) - 54,327 -
---------- --------- ---------- ---------
Net income (loss) $1,289,302 $ (327,385) $ (77,063) $ (40,142)
========== ========== ========== ==========
INCOME (LOSS) PER SHARE:
CNYG Common Stock
Income (loss)
applicable to
common stock. $ 933,866 $ (340,963) $ (81,220) $ (40,894)
========== ========== ========== ==========
Basic
Basic net income
(loss) per common
share $ 5.33 $ (1.96) $ (.46) $ (.23)
========== ========== ========== ==========
Basic weighted
average common
shares
(in thousands) 175,171 173,631 175,275 174,053
========== ========== ========== ==========
Diluted
Diluted net
income (loss)
per common
share $ 5.26 $ (1.96) $ (.46) $ (.23)
========== ========== ========== ==========
Diluted weighted
average common
shares
(in thousands) 177,669 173,631 176,980 174,053
========== ========== ========== ==========
RMG Tracking Stock
Income applicable
to common stock $ 355,436 $ 13,578 $ 4,157 $ 752
========== ========== ========== ==========
Basic
Basic net
income per
common share $ 4.02 $ .16 $ .05 $ .01
========== ========== ========== ==========
Basic weighted
average common
shares
(in thousands) 88,360 86,816 89,914 87,027
========== ========== ========== ==========
Diluted
Diluted net
income per
common share $ 3.95 $ .16 $ .05 $ .01
========== ========== ========== ==========
Diluted weighted
average common
shares
(in thousands) 89,984 86,816 91,550 87,027
========== ========== ========== ==========
CAPITALIZATION
(Dollars in thousands)
(Unaudited)
Actual
September 30, 2001
Cash $ 300,962
==========
Bank debt 292,933
Collateralized indebtedness 1,558,965
Senior notes and debentures 3,690,613
Subordinated notes and debentures 1,050,423
Capital lease obligations and other debt 85,770
Redeemable preferred stock 1,544,294
-----------
Debt and redeemable preferred stock $8,222,998
==========
LEVERAGE
Debt and redeemable preferred stock $8,222,998
Less: collateralized indebtedness(a) and cash (1,859,927)
----------
Net debt and redeemable preferred stock $6,363,071
==========
Actual
Running Rate(b)
Consolidated Net Debt & Redeemable Preferred/AOCF 6.6x
(a) Collateralized indebtedness is excluded for the purpose of the
leverage calculation as the debt is collateralized by
investment securities.
(b) For purposes of calculating leverage, AOCF for Madison Square
Garden is based on a trailing 12 months.
CABLEVISION SYSTEMS CORPORATION
CABLEVISION NY GROUP
Pro Forma Combined Operating Results
(Dollars in thousands)
(Unaudited)
NET REVENUES Three Months Ended
------------ September 30,
--------------------------------------
2001 2000 Pro Forma
Actual Pro Forma Change
------- ---------- -----------
TELECOMMUNICATIONS:
Cable Operations $489,962 $467,474 4.8%
Commercial Telephone LI 25,479 21,725 17.3%
High-Speed Data 36,070 9,280 -
---------- -----------
Subtotal 551,511 498,479 10.6%
New Media 26,236 18,623 40.9%
Eliminations(a) (5,316) (2,754) (93.0)%
---------- -----------
Total Telecommunications 572,431 514,348 11.3%
---------- -----------
MSG 128,747 143,851 (10.5)%
Rainbow NY 25,935 24,138 7.4%
Retail Electronics 153,900 158,444 (2.9)%
Theatres 20,668 19,681 5.0%
Other - 233 (100.0)%
Eliminations(b) (37,322) (33,657) (10.9)%
---------- -----------
Total Cablevision
NY Group $864,359 $827,038 4.5%
========== ==========
NET REVENUES Nine Months Ended
------------ September 30,
--------------------------------------
2001 2000 Pro Forma
Actual Pro Forma Change
------- ---------- -----------
TELECOMMUNICATIONS:
Cable Operations $1,460,374 $1,388,937 5.1%
Commercial Telephone LI 74,818 63,064 18.6%
High-Speed Data 88,448 23,139 -
---------- -----------
Subtotal 1,623,640 1,475,140 10.1%
New Media 78,033 56,977 37.0%
Eliminations(a) (13,239) (8,047) (64.5)%
---------- -----------
Total Telecommunications 1,688,434 1,524,070 10.8%
---------- -----------
MSG 527,052 562,013 (6.2)%
Rainbow NY 79,905 81,401 (1.8)%
Retail Electronics 460,970 437,765 5.3%
Theatres 57,227 55,297 3.5%
Other 200 634 (68.5)%
Eliminations(b) (113,441) (96,444) (17.6)%
---------- -----------
Total Cablevision
NY Group $2,700,347 $2,564,736 5.3%
========== ===========
(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; (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 as revenue.
CABLEVISION SYSTEMS CORPORATION
CABLEVISION NY GROUP
Pro Forma Combined Operating Results - Cont'd
(Dollars in thousands)
(Unaudited)
OPERATING CASH FLOW Three Months Ended September 30,
------------------- -------------------------------------------
2001 2000
2001 AOCF AOCF Percent
Actual Pro Forma(a) Pro Forma(a) Change
------- ----------- ---------- ---------
TELECOMMUNICATIONS:
Cable Operations $231,136 $222,109 $213,597 4.0%
Commercial
Telephone LI 16,961 16,379 13,942 17.5%
High-Speed Data 4,239 2,462 (14,790) 116.6%
----------- ----------- ----------
Subtotal 252,336 240,950 212,749 13.3%
New Media 1 (7,996) (255) -
----------- ----------- ----------
Total
Telecommunications 252,337 232,954 212,494 9.6%
----------- ----------- ----------
MSG (26,615) (32,404) 24,166 -
Rainbow NY (9,895) (13,345) (9,685) (37.8)%
Retail Electronics (16,008) (16,896) (18,038) 6.3%
Theatres (349) (1,015) (667) (52.2)%
Other (17,862) (17,862) (14,963) (19.4)%
----------- ----------- ----------
Total Cablevision
NY Group $181,608 $151,432 $193,307 (21.7)%
=========== =========== ==========
OPERATING CASH FLOW Nine Months Ended September 30,
---------------------------------------------------------------------
2001 2000
2001 AOCF AOCF Pro Forma
Actual Pro Forma(a) Pro Forma(a) Change
------- ----------- ---------- ---------
TELECOMMUNICATIONS:
Cable Operations $676,247 $659,238 $617,908 6.7%
Commercial
Telephone LI 49,146 48,115 40,184 19.7%
High-Speed Data (22,993) (22,209) (34,953) 36.5%
----------- ----------- ----------
Subtotal 702,400 685,144 623,139 10.0%
New Media (8,229) (14,112) 4,584 -
----------- ----------- ----------
Total
Telecommunications 694,171 671,032 627,723 6.9%
----------- ----------- ----------
MSG 26,149 22,676 80,532 (71.8)%
Rainbow NY (35,097) (40,708) (26,777) (52.0)%
Retail Electronics (47,710) (49,100) (49,806) 1.4%
Theatres (486) (1,712) (616) (177.9)%
Other (42,865) (42,865) (47,635) 10.0%
----------- ----------- ----------
Total Cablevision
NY Group $594,162 $559,323 $583,421 (4.1)%
=========== =========== ==========
(a) Excludes actual stock plan expense (income) of $(30,176) and
$(34,839) in the three and nine month periods in 2001 and
$6,687 and $816 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, second and
third 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 the amortization of certain purchase
accounting adjustments at MSG.
CABLEVISION SYSTEMS CORPORATION
CABLEVISION NY GROUP
CONDENSED COMBINED OPERATIONS DATA
(Dollars in thousands)
(Unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
-------------------- ----------------------
2001 2000 2001 2000
---- ---- ---- ----
Revenues, net $2,700,347 $2,827,383 $864,359 $919,932
========== ========== ======== ========
Operating profit
before depreciation
and amortization 594,162 712,927 181,608 234,125
Depreciation and
amortization 728,166 680,016 260,616 229,238
---------- ---------- -------- --------
Operating income
(loss) (134,004) 32,911 (79,008) 4,887
Other income (expense):
Interest expense, net (386,627) (380,452) (138,128) (135,292)
Gain on sale of cable
assets, net 1,431,778 130,758 - 130,758
Loss on investments,
net (81,460) - (271,203) -
Gain on derivative
contacts, net 355,805 - 368,826 -
Other items, net (50,198) (14,008) (22,193) (8,470)
---------- ---------- --------- --------
Income (loss) before
income taxes and
dividend
requirements 1,135,294 (230,791) (141,706) (8,117)
Income tax (expense)
benefit (92,383) - 67,249 -
---------- ---------- ---------- --------
Net income (loss)
before dividend
requirements 1,042,911 (230,791) (74,457) (8,117)
Dividend requirements
applicable to
preferred stock (130,887) (122,510) (43,629) (41,981)
---------- ---------- ---------- ---------
Net income (loss) 912,024 (353,301) (118,086) (50,098)
Net income or loss
attributed to parties
other than
Cablevision Systems
Corporation
shareholders 21,842 12,338 36,866 9,204
---------- ---------- ----------- ---------
Net income (loss)
attributed to
Cablevision Systems
Corporation
shareholders $933,866 $(340,963) $(81,220) $(40,894)
========== ========== =========== =========
CAPITALIZATION
(Dollars in thousands)
(Unaudited)
Actual
September 30, 2001
------------------
Cash $125,040
==========
Senior debt 37,772
Senior notes and debentures 3,690,613
Subordinated notes and debentures 1,050,423
Redeemable preferred stock 1,544,294
Other Debt:
Collateralized indebtedness 1,558,965
MSG senior debt 218,756
Retail Electronics & Other 95,821
----------
Debt and redeemable preferred stock 8,196,644
Less: collateralized indebtedness(a) and cash (1,684,005)
----------
Net debt and redeemable preferred stock $6,512,639
==========
LEVERAGE
Actual
------
Running Rate
------------
Notes and Debentures Ratio(b) 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.
Cablevision Systems Corporation
CABLEVISION NY GROUP
Summary of Operating Statistics
(Unaudited)
Pro Forma(a) Pro Forma(a) Pro Forma(a)
September 30, June 30, September 30,
2001 2001 2000
---- ---- ----
Cable
-----
Homes Passed 4,327,926 4,319,810 4,290,952
Basic Subscribers 2,988,590 2,999,105 2,962,146
Subscriber Growth
(12 month basis) .9% 1.3% 2.1%
Basic Penetration 69.1% 69.4% 69%
Recurring Revenue Per Subscriber $49.93 $50.00 $47.64
Pro Forma Quarterly AOCF Margin 45.3% 44.6% 45.7%
----------------------------------------------------------------------
Optimum TV
----------
Homes Marketed 1,296,300 1,260,300 1,185,000
Customers 633,954 617,115 584,480
Penetration 49% 49% 49%
----------------------------------------------------------------------
Optimum Online - High-Speed Data
--------------------------------
Homes Released 2,761,700 2,558,300 1,718,000
Customers 423,100 367,800 139,700
Penetration 15.3% 14.4% 8.1%
----------------------------------------------------------------------
Commercial Telephone - Long Island Market
-----------------------------------------
Buildings on-net 745 690 565
Access Lines 75,925 72,640 62,105
Fiber Miles 38,494 37,535 34,895
Route Miles 1,113 1,071 986
----------------------------------------------------------------------
Commercial Telephone - Developing Markets
-----------------------------------------
Buildings on-net 418 339 146
Access Lines 36,705 28,835 9,064
Fiber Miles 12,094 11,325 4,356
Route Miles 182 148 29
----------------------------------------------------------------------
Residential Telephone
---------------------
Homes Marketed 155,500 153,000 137,300
Customers 12,905 12,485 11,614
Penetration 8.3% 8.2% 8.5%
----------------------------------------------------------------------
Three Months Ended September 30, Percent
-------------------------------- Change
2001 2000 ------
---- ----
Cable Pro Forma Net Revenues
(thousands)
Recurring $448,382 $421,868 6.3%
PPV 12,875 11,881 8.4%
Advertising 17,938 17,883 .3%
Other 10,767 15,842 (32.0%)
--------- --------
Net Revenues $489,962 $467,474 4.8%
======== ========
----------------------------------------------------------------------
Capital Expenditures (thousands) Nine Months Ended September 30,
-------------------------------- -------------------------------
2001 2000
---- ----
Cable Operations $543,350 $537,959
Commercial Telephone, Long Island 57,161 29,252
New Media 196,350 132,661
Retail Electronics 23,978 23,327
Rainbow NY 31,614 25,197
Other 113,079 130,933
------- -------
Total Cablevision NY Group $965,532 $879,329
======== ========
(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 September 30,
------------ --------------------------------
2001 2000 Pro Forma
Actual Pro Forma Change
------------ ------------ -----------
AMC $ 53,203 $ 46,996 13.2%
Bravo/IFC 41,781 31,744 31.6%
Consolidated Regional
Sports 31,550 28,541 10.5%
------ ------
Subtotal Core
Networks 126,534 107,281 17.9%
Developing/Other 21,382 16,275 31.4%
Sterling Digital - - -
Eliminations(a) (4,394) (4,173) (5.3)%
------- -------
TOTAL RMG $143,522 $119,383 20.2%
======== ========
NET REVENUES Nine Months Ended September 30,
------------ -------------------------------
2001 2000 Pro Forma
Actual Pro Forma Change
------------ ----------- -----------
AMC $162,452 $142,449 14.0%
Bravo/IFC 126,241 93,078 35.6%
Consolidated Regional
Sports 90,354 81,230 11.2%
------ ------
Subtotal Core
Networks 379,047 316,757 19.7%
Developing/Other 61,284 47,834 28.1%
Sterling Digital - - -
Eliminations(a) (12,873) (12,632) (1.9)%
-------- --------
TOTAL RMG $427,458 $351,959 21.5%
======== ========
OPERATING CASH Three Months Ended September 30,
FLOW
------------------- --------------------------------
2001 2000
2001 AOCF AOCF Pro Forma
Actual Pro Forma(b) Pro Forma(b) Change
------ ----------- ----------- ---------
AMC $27,072 $25,390 $22,686 11.9%
Bravo/IFC 15,611 13,807 10,625 29.9%
Consolidated Regional
Sports 10,918 9,888 7,801 26.8%
------ ----- -----
Subtotal Core
Networks 53,601 49,085 41,112 19.4%
Developing/Other (5,243) (6,482) (8,121) 20.2%
Sterling Digital (7,742) (7,982) (3,456) (131.0)%
------- ------- -------
TOTAL RMG $40,616 $34,621 $29,535 17.2%
======== ======= =======
OPERATING CASH Nine Months Ended September 30,
FLOW
--------------- -------------------------------
2001 2000
2001 AOCF AOCF Pro Forma
Actual Pro Forma(b) Pro Forma(b) Change
------ ----------- ------------ ---------
AMC $ 82,964 $ 79,954 $ 70,934 12.7%
Bravo/IFC 37,611 36,279 27,821 30.4%
Consolidated Regional
Sports 26,903 25,272 19,480 29.7%
------ ------- ------
Subtotal Core
Networks 147,478 141,505 118,235 19.7%
Developing/Other (25,791) (28,748) (18,231) (57.7)%
Sterling Digital (18,787) (18,066) (4,491) -
-------- -------- -------
TOTAL RMG $102,900 $ 94,691 $ 95,513 (.9)%
======== ======= =======
(a) Represents inter-segment revenues.
(b) Excludes actual stock plan expense (income) of $(5,995) and
$(8,209) in the three and nine months ended September 30, 2001 and
$546 and $72 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 Nine Months Ended September 30,
-------------------- -------------------------------
2001 2000
------------ -------------
Rainbow Media Group $7,343 $11,316
NON-CONSOLIDATED REGIONAL SPORTS - Managed Businesses
100% of these affiliated entities' net revenues and
AOCF are reflected below:
Three Months Ended September 30,
--------------------------------
Non-consolidated Regional Sports 2001 2000 Change
-------------------------------- ---------- ----------- -------
Revenues, net $51,757 $46,994 10.1%
AOCF $10,084 $ 7,453 35.3%
Nine Months Ended September 30,
-------------------------------
Non-consolidated Regional Sports 2001 2000 Change
-------------------------------- ---------- ----------- -------
Revenues, net $153,634 $143,531 7.0%
AOCF $ 25,187 $ 21,467 17.3%
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
------------------- -----------------
September 30, September 30, September 30, September 30,
2001 2000 2001 2000
------------ ------------- ------------- -------------
SUBSCRIBERS (thousands)
-----------
AMC 70,560 67,910 77,430 74,000
Bravo 50,785 43,060 65,685 57,510
IFC 20,050 12,180 50,790 41,080
WE: Women's
Entertainment 26,520 21,760 45,990 35,950
MuchMusic USA 15,470 10,695 45,430 19,450
Consolidated
Fox Sports
(Florida &
Ohio) 7,560 7,110 8,180 7,630
Non-Consolidated
Fox Sports
Networks
(Bay Area, New
England,
Chicago) 10,410 9,875 11,380 10,880
Fox Sports
Net 72,200 70,290 80,900 79,580
CABLEVISION SYSTEMS CORPORATION
RAINBOW MEDIA GROUP
CONDENSED COMBINED OPERATIONS DATA
(Dollars in thousands)
(Unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
----------------- ------------------
2001 2000 2001 2000
---- ---- ---- ----
Revenues, net $427,458 $353,525 $143,522 $120,916
======== ======== ======== ========
Operating profit
before
depreciation
and amortization 102,900 97,831 40,616 30,774
Depreciation and
amortization 31,088 29,317 10,534 9,265
------- ------ ------ ------
Operating income 71,812 68,514 30,082 21,509
Other income
(expense):
Interest income
(expense), net (11,155) (36,783) 169 (13,100)
Gain on sale of
programming
interests 746,310 - 8 -
Other items, net (4,223) (4,312) 507 (3,276)
------- ------- ------ --------
Income before income
taxes 802,744 27,419 30,766 5,133
Income tax
expense (229,501) - (12,922) -
-------- ------- ------- -------
Net income 573,243 27,419 17,844 5,133
Net income or loss
attributed to parties
other than
Cablevision Systems
Corporation
shareholders (217,807) (13,841) (13,687) (4,381)
-------- -------- -------- -------
Net income attributed
to Cablevision
Systems Corporation
shareholders $355,436 $ 13,578 $ 4,157 $ 752
======== ======== ========= =======
CAPITALIZATION
(Dollars in thousands)
(Unaudited)
September 30, 2001
-----------------------
Cash $175,922
========
AMC bank debt -
Capital lease obligations &
other 26,354
--------
Total Rainbow Media Group
debt $ 26,354
=========
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