Cablevision Systems Corporation Reports Third Quarter Financial Results.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. 8, 2000 Combined Cable and Lightpath Report 11% Cash Flow Growth Rainbow Media Holdings Posts 14% Cash Flow Increase Cable Customers Increase by 2.1% Modem Customers Increase by 50% From June June: see month. 30, 2000 Cablevision For the unrelated Canadian company, see . Cablevision Systems Corporation is an American cable television company. It is the 5th largest cable provider in the USA, with most customers residing in New York, New Jersey, Connecticut, and Pennsylvania. Systems Corporation (NYSE NYSE See: New York Stock Exchange :CVC See CSC. ) today released financial results for the three months ended September September: see month. 30, 2000. The three month results and the percentage increase or decrease are presented on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis and exclude the Company's Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. systems which are held for sale, the Kalamazoo, Michigan “Kalamazoo” redirects here. For other uses, see Kalamazoo (disambiguation).Kalamazoo is the largest city in the southwest region of the U.S. state of Michigan. As of the 2000 census, the city had a total population of 77,145. system which was sold to Charter Communications Charter Communications NASDAQ: CHTR is an American company providing cable television, high-speed Internet, and telephone services to more than 5.7 million customers in 29 states. It is the third-largest publicly traded cable operator in the U.S. in September and the Ohio systems which were sold to Adelphia A`del´phi`a n. 1. (Bot.) A "brotherhood," or collection of stamens in a bundle; - used in composition, as in the class names, Monadelphia, Diadelphia, etc. s> Communications earlier this month. For the quarter ended September 30, 2000, the Company recorded net revenue of $945.4 million, a 14% 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 and excluding the effects of stock plan income or expense and Year 2000 remediation expenses - "AOCF AOCF Association of Outplacement Consulting Firms ") of $236.0 million, a 7% increase. The Company's third quarter performance reflected continued strength from cable operations, Lightpath (the Company's Long Island commercial telephone subsidiary) and Rainbow Media Holdings' businesses, particularly 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. , the Regional Sports divisions Sports Division was one of the biggest sports retailers in the United Kingdom during the 1990s. In 1998 it was sold to its main competitor, JJB Sports for approximately £295 Million. It was set up by Sir Tom Hunter in 1984, to sell trainers, see article about him for more information. and Madison Square Garden Current arenas in the National Hockey League Western Conference Eastern Conference . The cable television and Long Island commercial telephone operations recorded net revenue for the third quarter of $469.9 million and AOCF totaled $218.9 million, representing increases of 7% and 11%, respectively, from the prior year period. "Cablevision enjoyed another strong performance in the third quarter with Cable, Lightpath, Rainbow and Madison Square Garden all registering double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" cash flow gains," said James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. L. Dolan Dolan is a surname, and the following people:
adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. cable modem cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. customers. Later in the fourth quarter we will begin deploying SONY advanced digital set-top boxes The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. . We anticipate rolling out several thousand advanced digital boxes on Long Island in December December: see month. and January January: see month. with a full-scale full-scale adj. 1. Of actual or full size; not reduced: a full-scale model. 2. Employing all resources; not limited or partial: 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. scheduled to begin in the second quarter of 2001", Mr. Dolan continued. TELECOMMUNICATIONS Communicating information, including data, text, pictures, voice and video over long distance. See communications. Cable Operations Net revenue for the third quarter increased 7% over the year-earlier period to $448.2 million. AOCF for the three month period rose 10% to $205.0 million compared to the corresponding quarter last year. Basic subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. growth in the New York metropolitan area continued to be strong, rising by 2.1% compared to September 1999. Revenue growth for the third quarter was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to continued strong subscriber gains, an increase of 18,000 OptimumTV customers located primarily in the rebuilt former TCI (Trustworthy Computing Initiative) An umbrella term from Microsoft for its efforts to improve security in Windows. TCI was announced in 2002 after viruses such as Code Red and Nimda had succeeded in attacking numerous Windows computers. systems in New Jersey, a 27% increase in advertising revenue resulting from strong national and local advertising sales offset by a 32% decrease 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 due to fewer boxing events. Other revenue increased 55% to $15.3 million primarily due to a new partnership agreement signed between Cablevision, Comcast Comcast Corporation, (NASDAQ: CMCSA) is the largest[1] cable television (CATV) company and the second largest Internet service provider in the United States. and the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. related to cable advertising sales in the New York market. Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue per subscriber rose 4%, or $1.81, in September 2000 to $47.66 compared to $45.85 in September 1999. The AOCF margin for the third quarter of 2000 was 45.7% as compared to 44.4% in the prior year period and 43.7% in the second quarter of 2000. The AOCF margin improvement was primarily due to lower sales and marketing expenses in the third quarter and higher marketing and departmental expenses incurred in the second quarter of 2000 related to the Company's New York market-wide channel realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. . Commercial Telephone - Long Island Lightpath recorded net revenue of $21.7 million for the third quarter, representing a 23% increase from the year-earlier period. AOCF for the three months ended September 30, 2000 was $13.9 million, representing a 34% increase from the year-earlier period. Lightpath's third quarter AOCF increase compared to the prior year period reflects a 36% increase in access lines and a significant increase in transmission revenue related to growing commercial demand for high capacity broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). circuits. The number of buildings on-net Connected to the Internet, or connected to a LAN or WAN. Contrast with off-net. rose by 24% from the prior year period to 565. New Media New Media consists of the Company's developmental telecommunications businesses including commercial and residential high-speed cable modem service, residential telephone 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, 2000, net revenue grew to $34.4 million from $18.4 million in the prior year period and the AOCF deficit was $4.5 million compared to AOCF of $.8 million in the preceding year period. The strong revenue growth was primarily attributable to the continuing rapid increase in the number of cable modem customers. During the third quarter, the Company began offering residential high-speed Internet See broadband. access in several New Jersey communities as well as in portions of Westchester Westchester is the name of some places in the United States of America:
Optimum Online serves Long Island, other parts of New York, the Bronx, Brooklyn, Westchester, parts of New Jersey, Connecticut, and Pennsylvania. 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 site enabling customers to order cable modems over the Internet and take delivery the next day. More than 300,000 new modem-capable homes were marketed during the quarter bringing the total homes marketed to nearly 1.5 million. Cable modem customers totaled 139,700 at September 30, 2000, a 50% increase from June 30th with weekly customer additions of 3,600, double the 1,800 weekly add rate in the second quarter. The penetration The successful unauthorized breach of a security perimeter. See penetration test. rate for cable modems rose to 9.5% from 7.9% in the prior quarter and 4.0% in the third quarter of 1999. Both 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). have reached cable modem penetration rates of 13%. The Company forecasts it will have marketed the service to more than 2 million homes by the end of the year and expects to have more than 200,000 cable modem customers, representing a 10% penetration rate. The Company also offers residential telephone service on Long Island and in Fairfield County, Connecticut Fairfield County is located in the southwestern corner of the U.S. state of Connecticut. Its population according to the 2000 census was 882,567, but a 2006 survey put the population at 905,000. It is the most populous county in the State of Connecticut. . Marketed as Optimum Telephone, the service is a switched telephone offering over the Company's broadband hybrid hybrid (hī`brĭd), term applied by plant and animal breeders to the offspring of a cross between two different subspecies or species, and by geneticists to the offspring of parents differing in any genetic characteristic (see genetics). fiber-coaxial network. The service has been marketed to more than 137,000 homes and has 11,600 customers, representing an 8.5% penetration. RAINBOW MEDIA HOLDINGS, INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . 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 ("AMC (Advanced Mezzanine Card) See AdvancedTCA. "), Bravo and The Independent Film Channel ("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. ") Aggregate third quarter AOCF for the three networks was $33.3 million, up 15% from the year-earlier period on combined net revenue of $78.6 million, an 11% increase. AMC's affiliated af·fil·i·ate v. af·fil·i·at·ed, af·fil·i·at·ing, af·fil·i·ates v.tr. 1. To adopt or accept as a member, subordinate associate, or branch: basic subscribers rose 3% from the year-earlier period to 74.0 million. Bravo's and IFC's affiliated basic subscribers totaled 57.5 million and 41.1 million, respectively, representing increases of 28% and 42%, respectively, from the same period a year ago. The strong revenue and AOCF growth for these services was attributable to continued subscriber growth and a 69% increase in Bravo's advertising revenue, resulting both from the strong subscriber growth and a 26% increase in Bravo's prime-time ratings compared to the corresponding prior year period. Advertising revenue for the third quarter totaled $8.2 million or 33% of Bravo's total revenue compared to $4.9 million or 24% of total revenue for the third quarter of 1999. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Regional Sports Consolidated Regional Sports is comprised of FOX Sports Net Ohio, FOX Sports Net Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. and 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 . For the third quarter, net revenue grew 10% to $28.5 million and AOCF was $7.7 million, a 15% increase compared to the year-earlier period. Non-Consolidated Regional Sports Non-consolidated Regional Sports is comprised of FOX Sports Net Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , FOX Sports Net Bay Area and FOX Sports Net New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. . Each of these services is managed by Rainbow Media. For the third quarter of 2000, net revenues for the combined businesses totaled $47.0 million, the 36% increase from the prior year period primarily related to affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. fee increases. FOX Sports Net (non-consolidated) FOX Sports Net is the nationwide backdrop Backdrop may refer to:
In the law governing patents—grants of an exclusive right or privilege to make, use, or sell an invention or product for a term of years—the term comprise the FOX Sports Network. Rainbow's eight regional sports channels, including MSG MSG: see glutamic acid. Network, comprise part of the FOX Sports Network. FOX Sports Net is managed by FOX Sports. FOX Sports Net's affiliated basic subscribers totaled 79.6 million at September 30, 2000. Rainbow Developing/Other Rainbow Developing/Other is comprised principally of Romance romance [O.Fr.,=something written in the popular language, i.e., a Romance language]. The roman of the Middle Ages was a form of chivalric and romantic literature widely diffused throughout Europe from the 11th cent. Classics, MuchMusic USA, five New York area regional News 12 Networks, three New York regional MetroChannels, Rainbow Advertising Sales Corporation (RASCO) and Rainbow Network Communications (RNC RNC Republican National Committee (US) RNC Republican National Convention RNC Radio Network Controller RNC Royal Newfoundland Constabulary (provincial police force) ). Net revenue for the third quarter was $44.7 million, a 9% increase compared to the year-earlier period primarily resulting from a 46% increase in the number of Romance Classics affiliated basic subscribers to 36 million. The AOCF deficit for the three month period was $18.5 million which included expenses related to the Rainbow Media Group tracking stock. MSG Madison Square Garden includes MSG Network, FOX Sports Net New York, the NY Knicks, the NY 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 NY Liberty, the MSG Arena complex and Radio City Entertainment. For the third quarter, net revenue totaled $143.9 million, up 26%, and AOCF was $29.6 million, up 19% compared to the year-earlier period. The strong revenue and AOCF growth for the third quarter was due to more concerts and events held at MSG Arena, the reopening Reopening Treasury offerings of additional amounts of outstanding issues, rather than an entirely new issue. A reopened issue will always have the same maturity date, CUSIP number, and interest rate as the original issue. of Radio City which was closed in the year-earlier quarter and higher advertising sales and affiliate fee revenue generated by MSG Network. Retail Electronics THE WIZ recorded net revenue of $171.7 million, a 25% increase for the third quarter compared to the prior year. The AOCF deficit for the third quarter was $18.0 million compared to a deficit of $10.2 million in the prior year period. The AOCF deficit can be attributed primarily to lower gross margins, higher payroll payroll a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. and commission expenses as well as higher advertising costs. Theatres For the three month period ended September 30, 2000, net revenue at Clearview Clearview may refer to:
Other Other costs amounted to $12.0 million for the third quarter of 2000 compared to $16.3 million in the prior year period and include corporate and developmental expenses that support the consolidated New York metropolitan area operations of the Company. RECENT DEVELOPMENTS During the third quarter the Company filed preliminary proxy materials Proxy Materials Documents regulated by the Securities & Exchange Commission in which a public company outlines its methods and procedures. These documents are used to inform shareholders and solicit votes for corporate decisions, such as the election of directors and other with the Securities and Exchange Commission related to the creation of a new series of Cablevision common stock to be called Rainbow Media Group ("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) "). Definitive proxy materials were mailed to shareholders in October October: see month. . RMG's tracking stock is designed to reflect the separate economic performance of certain of the businesses and interests of Rainbow Media Holdings, Inc. The tracking stock is expected to be distributed to holders of Cablevision common stock at a ratio of one share of RMG for every two shares of CVC held. The assets expected to be included in RMG are highlighted with an asterisk (1) See Asterisk PBX. (2) In programming, the asterisk or "star" symbol (*) means multiplication. For example, 10 * 7 means 10 multiplied by 7. The * is also a key on computer keypads for entering expressions using multiplication. on page 10 and the financial performance of RMG for the third quarter and nine month periods are presented on pages 11 and 12. In a separate press release issued today, the Company announced that the November November: see month. 10, 2000 special stockholders meeting with respect to the RMG tracking stock and related matters is expected to be adjourned for thirty days until December 8, 2000. Over the course of the next thirty days, the Company will evaluate all of its options and alternatives related to the assets that would comprise Rainbow Media Group. FULL YEAR 2000 OUTLOOK The Company affirms the full year 2000 pro forma guidance it had previously provided in its fourth quarter 1999 earnings release for consolidated revenue and cash flow growth, cable and Lightpath cash flow growth, subscriber growth, capital expenditures and plant status. In addition, the Company forecasts it will have marketed its cable modem service to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 2 million homes by the end of the year and expects to have more than 200,000 cable modem customers, representing a 10% penetration rate. The Company estimates cable and Lightpath's revenue growth for the year will be between 8% - 10% versus the 9% - 11% previously forecasted. COMPANY DESCRIPTION Cablevision Systems Corporation is one of the nation's leading telecommunications and entertainment companies. The Company's cable television operations serve approximately 3.2 million subscribers located primarily in the New York and Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. metropolitan area. Rainbow Media Holdings, Inc., a 74% owned subsidiary of Cablevision, manages entertainment, news and sports programming businesses. Rainbow Media Holdings' assets include ownership interests in American Movie Classics, Bravo, Madison Square Garden, L.P., Radio City Entertainment and FOX Sports Net. The Company also owns and operates THE WIZ consumer electronics stores in 41 locations and operates Clearview Cinemas with 297 motion picture theatre screens in the New York metropolitan area. See the attached schedule summarizing Cablevision's ownership interests in its programming, entertainment and sports assets. 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 most recent Quarterly Report on Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission, the Company's registration statement on Form S-3 and the Company's Proxy Statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. dated October 10, 2000, 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" contained therein. The Company disclaims any obligation to update the forward-looking statements contained herein.
CABLEVISION SYSTEMS CORPORATION
Operating Results
(Dollars in Thousands)
(Unaudited)
NET REVENUES
Three Months Ended Sept. 30, Pro Forma
2000 2000 1999 Percent
Actual Pro Forma Pro Forma Change
-------- --------- --------- -------
TELECOMMUNICATIONS:
Cable Operations
(NY Cluster) $ 448,154 $ 448,154 $ 419,905 6.7%
Commercial Telephone LI 21,725 21,725 17,623 23.3%
-------- --------- --------- -------
Subtotal 469,879 469,879 437,528 7.4%
Systems Held
for Sale (Ohio,
Mass. & 91,363 -- -- --
Kalamazoo)
New Media 34,379 34,379 18,444 86.4%
Eliminations(a) (2,754) (2,754) (1,940) (42.0)%
-------- --------- --------- -------
Total Telecommunications 592,867 501,504 454,032 10.5%
-------- --------- --------- -------
RAINBOW MEDIA:
AMC 46,996 46,996 45,295 3.8%
Bravo 24,468 24,468 19,870 23.1%
IFC 7,150 7,150 5,550 28.8%
Consolidated
Regional Sports 28,541 28,541 25,994 9.8%
Developing/Other 44,661 44,661 40,839 9.4%
-------- --------- --------- -------
Subtotal 151,816 151,816 137,548 10.4%
MSG 143,851 143,851 114,104 26.1%
Eliminations(a) (6,372) (6,372) (5,677) (12.2)%
-------- --------- --------- -------
Total Rainbow Media 289,295 289,295 245,975 17.6%
-------- --------- --------- -------
RETAIL ELECTRONICS 171,682 171,682 137,505 24.9%
THEATRES 19,681 19,681 25,443 (22.6)%
Other 233 233 120 94.2%
Eliminations(b) (38,210) (36,957) (31,380) (17.8)%
-------- --------- --------- -------
TOTAL COMPANY $ 1,035,548 $ 945,438 $ 831,695 13.7%
======== ========= ========= =======
Nine Months Ended Sept. 30, Pro Forma
2000 2000 1999 Percent
NET REVENUES Actual Pro Forma Pro Forma Change
------ --------- --------- ------
TELECOMMUNICATIONS:
Cable Operations
(NY Cluster) $ 1,332,297 $ 1,332,297 $ 1,235,410 7.8%
Commercial
Telephone LI 63,064 63,064 50,486 24.9%
--------- ---------- ---------- ----
Subtotal 1,395,361 1,395,361 1,285,896 8.5%
Systems Held
for Sale (Ohio,
Mass. & 278,989 -- -- --
Kalamazoo)
New Media 89,921 89,921 51,163 75.8%
Eliminations(a) (8,047) (8,047) (4,978) (61.7)%
--------- ---------- ---------- ----
Total Telecommunications 1,756,224 1,477,235 1,332,081 10.9%
--------- ---------- ---------- ----
RAINBOW MEDIA:
AMC 142,449 142,449 132,777 7.3%
Bravo 72,375 72,375 54,356 33.1%
IFC 20,326 20,326 13,379 51.9%
Consolidated
Regional Sports 81,230 81,230 73,085 11.1%
Developing/Other 138,831 142,282 124,843 14.0%
--------- ---------- ---------- ----
Subtotal 455,211 458,662 398,440 15.1%
MSG 562,013 562,013 488,937 14.9%
Eliminations(a) (19,135) (19,427) (19,168) (1.4)%
--------- ---------- ---------- ----
Total Rainbow Media 998,089 1,001,248 868,209 15.3%
--------- ---------- ---------- ----
RETAIL ELECTRONICS 467,440 467,440 396,853 17.8%
THEATRES 55,297 55,297 65,244 (15.2)%
Other 634 634 329 92.7%
Eliminations(b) (112,335) (108,715) (93,986) (15.7)%
--------- ---------- ---------- ----
TOTAL COMPANY $ 3,165,349 $ 2,893,139 $ 2,568,730 12.6%
========= ========== ========== ====
(a) Represents intra-segment revenues.
(b) Represents revenues earned by Rainbow operations from consolidated
cable systems and, to a lesser extent, intercompany Lightpath
revenues and retail electronics advertising revenue.
Note: The pro forma net revenues referred to above give effect to
the acquisition of FOX Sports Net Florida, additonal interests in
MuchMusic USA and News 12 New Jersey in 2000 and certain assets from
Loews Cineplex Entertainment Corporation in 1999. The pro forma
financial information excludes the net revenues derived from the
systems held for sale.
CABLEVISION SYSTEMS CORPORATION
Operating Results
(Dollars in Thousands)
(Unaudited)
OPERATING CASH FLOW Three Months Ended September 30,
AOCF
2000 1999 Pro Forma
2000 AOCF AOCF Percent
Actual Pro Forma(a) Pro Forma(a) Change
--------- ----------- ----------- ------
TELECOMMUNICATIONS:
Cable Operations
(NY Cluster) $ 201,768 $ 205,007 $ 186,300 10.0%
Commercial Telephone LI 13,809 13,942 10,391 34.2%
--------- ----------- ----------- ------
Subtotal 215,577 218,949 196,691 11.3%
Systems Held for Sale
(Ohio , Mass. & 35,617 -- -- --
Kalamazoo)
New Media (4,869) (4,516) 836 --
--------- ----------- ----------- ------
Total Telecommunications 246,325 214,433 197,527 8.6%
--------- ----------- ----------- ------
RAINBOW MEDIA:
AMC 22,686 22,686 21,054 7.8%
Bravo 9,386 9,386 6,857 36.9%
IFC 1,239 1,239 957 29.5%
Consolidated
Regional Sports 7,745 7,745 6,723 15.2%
Developing/Other (21,224) (18,462) (14,511) (27.2)%
--------- ----------- ----------- ------
Subtotal Rainbow 19,832 22,594 21,080 7.2%
MSG 29,591 29,591 24,841 19.1%
--------- ----------- ----------- ------
Total Rainbow Media 49,423 52,185 45,921 13.6%
--------- ----------- ----------- ------
RETAIL ELECTRONICS (18,155) (18,038) (10,203) (76.8)%
THEATRES (732) (667) 3,120 (121.4)%
Other (11,962) (11,962) (16,344) 26.8%
--------- ----------- ----------- ------
Total Company
Pre-Y2K 264,899 235,951 220,021 7.2%
Year 2000 Remediation -- -- (11,252) 100.0%
--------- ----------- ----------- ------
TOTAL COMPANY $ 264,899 $ 235,951 $ 208,769 13.0%
========= =========== =========== ======
OPERATING CASH FLOW Nine Months Ended September 30, AOCF
2000 1999 Pro Forma
2000 AOCF AOCF Percent
Actual Pro Forma(a) Pro Forma(a) Change
----- --------- ----------- ------
TELECOMMUNICATIONS:
Cable Operations
(NY Cluster) $ 594,709 $ 595,777 $ 541,181 10.1%
Commercial
Telephone LI 39,821 40,184 29,665 35.5%
--------- ----------- ----------- ------
Subtotal 634,530 635,961 570,846 11.4%
Systems Held
for Sale (Ohio,
Mass. & 108,070 -- -- --
Kalamazoo)
New Media (12,519) (10,966) 2,321 --
--------- ----------- ----------- ------
Total Telecommunications 730,081 624,995 573,167 9.0%
--------- ----------- ----------- ------
RAINBOW MEDIA:
AMC 70,934 70,934 60,297 17.6%
Bravo 24,339 24,339 17,478 39.3%
IFC 3,482 3,482 (336) --
Consolidated
Regional Sports 19,312 19,312 14,731 31.1%
Developing/Other (41,877) (45,210) (48,940) 7.6%
--------- ----------- ----------- ------
Subtotal Rainbow 76,190 72,857 43,230 68.5%
MSG 96,807 96,807 78,669 23.1%
--------- ----------- ----------- ------
Total Rainbow Media 172,997 169,664 121,899 39.2%
--------- ----------- ----------- ------
RETAIL ELECTRONICS (49,593) (49,806) (27,005) (84.4)%
THEATRES (619) (616) 5,153 (112.0)%
Other (38,635) (38,635) (40,026) 3.5%
--------- ----------- ----------- ------
Total Company
Pre-Y2K 814,231 705,602 633,188 11.4%
Year 2000
Remediation (3,473) (3,473) (26,977) 87.1%
--------- ----------- ----------- ------
TOTAL COMPANY $ 810,758 $ 702,129 $ 606,211 15.8%
========= =========== =========== ======
(a) Excludes actual stock plan expense of $7,233 and $888 in the
three and nine month 2000 periods and $49,391 and $216,388 in the
three and nine month 1999 periods.
Note: The pro forma adjusted operating cash flows referred to
above give effect to the acquisition of FOX Sports Net Florida,
additional interests in MuchMusic USA and News 12 New Jersey in 2000,
and certain assets from Loews Cineplex Entertainment Corporation in
1999. The pro forma financial information excludes the adjusted
operating cash flows derived from the systems held for sale.
Cablevision Systems Corporation
Summary of Operating Statistics
Pro Forma Pro Forma Pro Forma
September 30, June 30, September 30,
2000 2000 1999
----------- -------- -----------
Cable(a) (NY cluster only)
Homes Passed 4,138,230 4,111,922 4,015,061
Basic Subscribers 2,832,005 2,828,448 2,773,016
Customer Growth
(twelve month
pro forma) 2.1% 2.1% 2.7%
Basic Penetration 68.4% 68.8% 69.1%
Recurring Revenue
Per Subscriber $ 47.66 $ 48.03 $ 45.85
Pro Forma Quarterly
AOCF Margin 45.7% 43.7% 44.4%
---------------------------------------------------------------------
Optimum TV (NY cluster only)
Homes Marketed 1,185,000 1,148,200 1,060,900
Customers 584,480 566,475 544,320
Penetration 49% 49% 51%
---------------------------------------------------------------------
Optimum Online/Optimum @Home
(NY cluster only)
Homes Marketed 1,477,900 1,176,100 793,000
Customers 139,688 93,350 31,474
Penetration 9.5% 7.9% 4.0%
---------------------------------------------------------------------
Commercial Telephone - Long Island
Buildings on Net 565 531 456
Access Lines 62,105 58,180 45,586
Fiber Miles 34,895 34,360 33,310
Route Miles 986 964 926
---------------------------------------------------------------------
Residential Telephone
Homes Marketed 137,300 135,500 80,000
Customers 11,614 11,053 6,590
Penetration 8.5% 8.2% 8.2%
---------------------------------------------------------------------
Rainbow Media
Affiliated Basic Subscribers
(in thousands)(b)
AMC 74,000 73,450 71,730
Bravo 57,510 56,620 44,850
The Independent
Film Channel 41,080 40,320 28,880
Romance Classics 35,950 33,300 24,700
MuchMusic USA 21,420 18,410 12,780
MSG Network/
FOX Sports
Net New York 14,590 14,460 14,160
FOX Sports
Networks
Combined(c) 18,510 18,370 17,930
FOX Sports Net 79,580 76,650 62,000
---------------------------------------------------------------------
Three Months Ended September 30,
-------------------------------
Cable Pro Forma Net Revenues Percent
(dollars in thousands)(a) 2000 1999 Change
---------- --------- --------
Recurring $403,802 $379,470 6.4%
PPV 11,382 16,629 (31.6)%
Advertising 17,652 13,903 27.0%
Other 15,318 9,903 54.7%
---------- --------- --------
Net Revenues $448,154 $419,905 6.7%
========== ========= ========
(a) Excludes Kalamazoo, MI and Ohio systems that have been sold and
Massachusetts system that is held for sale.
(b) Affiliated basic subscribers are the total number of basic
subscribers in cable systems which have affiliation agreements
with the service indicated.
(c) Includes FOX Sports Net Ohio/Cincinnati, FOX Sports Net Florida,
FOX Sports Net New England, FOX Sports Net Chicago and FOX Sports
Net Bay Area.
Cablevision Systems Corporation
Summary Information
Nine Months Ended Nine Months Ended
Capital Expenditures September 30, 2000 September 30, 1999
(dollars in thousands) ------------------ ------------------
Cable Operations $ 410,283 $ 221,755
Cable Systems Held for Sale 127,676 95,745
Commercial Telephone, Long Island 29,252 30,875
Rainbow Media (including
MSG/Regional Sports,
AMC, Bravo, Developing
and Other) 36,513 51,783
New Media 132,661 60,185
Retail Electronics 23,327 14,708
Other 130,933 120,378
--------- ---------
Total $ 890,645 $ 595,429
========= =========
---------------------------------------------------------------------
Pro Forma
Actual (all system sales)(a)
Capitalization September 30, September 30,
(dollars in millions) 2000 2000
----------- -------------
Cable
Senior Debt $ 2,231 $ --
Senior Notes and Debentures 2,693 2,693
Subordinated Notes
and Debentures 1,049 1,049
--------- ---------
Total Cable Debt 5,973 3,742
--------- ---------
Redeemable Preferred Stock 1,514 1,514
Rainbow
RMHI Senior Debt 267 267
AMC Senior Debt 367 367
MSG Senior Debt 274 274
--------- ---------
Total Rainbow Debt 908 908
--------- ---------
Other Debt
Retail Electronics & Other 110 110
--------- ---------
Total Consolidated Debt
and Redeemable Preferred $ 8,505 $ 6,274
=========
Less: Cash and
Marketable Securities (399)
---------
Net Debt and Redeemable Preferred $ 5,875
=========
Pro Forma Leverage Running Rate Running Rate
Notes and Debentures Ratio 5.9 5.2(b)
Cable Debt & Redeemable
Preferred/Cable & Lightpath AOCF 7.3 5.3
Net Debt & Redeemable Preferred/AOCF 7.8 6.0
---------------------------------------------------------------------
CONDENSED CONSOLIDATED OPERATIONS DATA
(Dollars in thousands, except per share data)
(Unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
----------------- -----------------
2000 1999 2000 1999
----------- ----------- ----------- ---------
Revenues $ 3,165,349 $ 2,782,327 $ 1,035,548 $ 902,310
=========== =========== =========== =========
Operating profit before
depreciation
and amortization 810,758 492,227 264,899 192,373
Depreciation and
amortization (709,333) (627,909) (238,503) (212,737)
----------- ----------- ----------- --------
Operating income (loss) 101,425 (135,682) 26,396 (20,364)
Other expense:
Interest expense, net (417,235) (337,138) (148,392) (118,440)
Gain on sale
of cable assets 130,758 -- 130,758 --
Other items, net (142,333) (111,737) (48,904) (39,259)
----------- ----------- ----------- ---------
(428,810) (448,875) (66,538) (157,699)
----------- ----------- ----------- ---------
Net loss $ (327,385) $ (584,557) $ (40,142)$(178,063)
=========== =========== =========== =========
Basic and diluted
net loss per
common share $ (1.89) $ (3.84) $ (.23)$ (1.17)
=========== =========== =========== =========
Average number
of common shares
outstanding
(in thousands) 173,631 152,081 174,053 152,461
=========== =========== =========== =========
(a) Net of all proceeds (cash and marketable securities) received from
announced and consummated system sales.
(b) Net only of cash proceeds received from announced and consummated
system sales.
Cablevision Systems Corporation
Ownership and Investments
Ownership Interests
-------------------
BROADBAND ASSETS %100
2,832,000 cable subscribers (in NY metropolitan area)
357,000 Massachusetts subscribers held for sale -- expected
proceeds total $1.2 billion, plus 125,000 New York area AT&T
subscribers
Lightpath Commercial Telephone Service (Long Island and
Connecticut)
Optimum Online/Optimum@Home (Long Island, Connecticut and New
Jersey)
Optimum Telephone (Long Island and Connecticut)
PROGRAMMING, ENTERTAINMENT AND SPORTS ASSETS
--------------------------------------------
Rainbow Media (Cablevision 74%; NBC 26%)
Rainbow Media owns:
AMC(1) 100%
Bravo(1) 100%
Romance Classics(1) 100%
The Independent Film Channel(1) 100%
News 12 Networks 100%
News 12 New Jersey 100%
MuchMusic USA(1) 100%
National Sports Partners 50%
FOX Sports Net(1)
National Advertising Partners(1) 50%
Regional Programming Partners
(Rainbow Media 60%; FOX Sports Networks, LLC 40%)
Regional Programming Partners owns:
MSG / FOX Sports Net New York / Radio City Ent. 100%
FOX Sports Net Florida(1) 100%
FOX Sports Net Ohio & Cincinnati(1) 100%
FOX Sports Net New England(1) 50%
FOX Sports Net Chicago(1) 50%
FOX Sports Net Bay Area(1) 50%
MetroChannels 100%
OTHER INVESTMENTS
THE WIZ 100%
-------
Retail electronics store in 41 New York metropolitan
area locations
Clearview Cinemas 100%
-----------------
65 theatres and 297 screens primarily in the
New York metropolitan area
Adelphia (ADLAC)
----------------
10.8 million shares of common stock
Charter (CHTR)
--------------
11.2 million shares of common stock
Excite@Home (ATHM)
------------------
Warrants to purchase 20.4 million shares of common stock
at $.25 per share
North Coast Communications LLC ("NCC") 49.9%
--------------------------------------
PCS licenses with 47 million POP's
--------------------------------------
(1) Denotes tracked assets of Rainbow Media Group
RAINBOW MEDIA GROUP
Operating Results
(Dollars in Thousands)
(Unaudited)
NET REVENUES Three Months Ended
September 30, Pro Forma
2000 1999 Percent
Pro Forma Pro Forma Change
----------- ---------- ---------
AMC $ 46,996 $ 45,295 3.8%
Bravo 24,468 19,870 23.1%
IFC 7,150 5,550 28.8%
----------- ----------
National
Services 78,614 70,715 11.2%
----------- ----------
Regional Sports 28,541 25,994 9.8%
Developing/Other 17,808 17,131 4.0%
----------- -----------
Subtotal 124,963 113,840 9.8%
Eliminations (4,049) (3,957) (2.3)%
----------- -----------
Total $120,914 $109,883 10.0%
=========== ===========
Nine Months Ended
September 30, Pro Forma
2000 1999 Percent
Pro Forma Pro Forma Change
------------ ------------ -----------
AMC $142,449 $132,777 7.3%
Bravo 72,375 54,356 33.1%
IFC 20,326 13,379 51.9%
-------- --------
National
Services 235,150 200,512 17.3%
-------- --------
Regional Sports 81,230 73,085 11.1%
Developing/Other 52,559 50,570 3.9%
-------- --------
Subtotal 368,939 324,167 13.8%
Eliminations (12,255) (12,451) 1.6%
-------- --------
Total $356,684 $311,716 14.4%
======== ========
OPERATING
CASH FLOW Three Months Ended
September 30,
2000 1999 Pro Forma
AOCF AOCF Percent
Pro Forma Pro Forma Change
------------ ------------- -----------
AMC $ 22,686 $ 21,054 7.8%
Bravo 9,386 6,857 36.9%
IFC 1,239 957 29.5%
--------- ---------
National
Services 33,311 28,868 15.4%
--------- ---------
Regional Sports 7,801 6,502 20.0%
Developing/Other (9,788) (3,563) (174.7)%
--------- ---------
Total Pre-Y2K 31,324 31,807 (1.5)%
Year 2000
Remediation - (822) 100%
--------- ---------
Total $ 31,324 $ 30,985 1.1%
========= =========
Nine Months Ended
September 30,
2000 1999 Pro Forma
AOCF AOCF Percent
Pro Forma Pro Forma Change
------------ ------------ -----------
AMC $ 70,934 $ 60,297 17.6%
Bravo 24,339 17,478 39.3%
IFC 3,482 (336) -
--------- ---------
National
Services 98,755 77,439 27.5%
--------- ---------
Regional Sports 19,480 14,848 31.2%
Developing/Other (20,936) (15,166) (38.0)%
--------- ---------
Total Pre-Y2K 97,299 77,121 26.2%
Year 2000
Remediation (49) (1,966) 97.5%
--------- ---------
Total $ 97,250 $ 75,155 29.4%
========= =========
Note: The pro forma net revenue and adjusted operating cash flows
referred to above give effect to the acquisition of FOX Sports Net
Florida, additional interest in MuchMusic USA and News 12 New Jersey
in 2000.
RAINBOW MEDIA GROUP
Statistics
September 30, June 30, September 30,
2000 2000 1999
AFFILIATED BASIC SUBS
(in thousands)
AMC 74,000 73,450 71,730
Bravo 57,510 56,620 44,850
IFC 41,080 40,320 28,880
Romance Classics 35,950 33,300 24,700
MuchMusic USA 21,420 18,410 12,780
Fox Sports Networks
Combined 18,510 18,370 17,930
Fox Sports Net 79,580 76,650 62,000
VIEWING SUBS
(in thousands)
AMC 67,900 67,600 65,500
Bravo 43,100 41,900 35,800
IFC 12,200 12,200 9,500
Romance Classics 21,800 20,600 15,900
MuchMusic USA 12,600 12,200 11,600
Fox Sports Networks
Combined 17,000 16,900 16,200
Financial and Operating Information The results of operations and other statistical data set forth above for the Rainbow Media Group sets forth information for certain businesses and interests included within our Rainbow Media Holdings' subsidiary that we refer to as the Rainbow Media Group. We have filed proxy materials with the Securities and Exchange Commission related to the vote of Cablevision shareholders that is required to amend the Cablevision charter to authorize To empower another with the legal right to perform an action. The Constitution authorizes Congress to regulate interstate commerce. authorize v. to officially empower someone to act. (See: authority) and issue a new series of Cablevision common stock called Rainbow Media Group tracking stock and distributed definitive proxy materials to Cablevision shareholders. That series of Cablevision common stock would be designed to track the economic performance of the Rainbow Media Group. No solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual is being made hereby. The proxy materials filed with the Securities and Exchange Commission state that Rainbow Media Group tracking stock may be issued following a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. shareholder vote, but there are no assurances that an issuance will be made or as to the manner in which an issuance may be accomplished. You should rely only on the definitive proxy materials in reviewing the businesses, financial condition or results of operations of the Rainbow Media Group distributed to Cablevision shareholders. A Cablevision tracking stock, such as the Rainbow Media Group common stock that may be issued after a Cablevision shareholder vote, represents an interest in Cablevision and is not a direct interest in the businesses and interests included in the Rainbow Media Group. If the Rainbow Media Group tracking stock is issued, dividends (if any), entitlements in the event of a merger or similar transaction and rights in liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy will not necessarily be related to the performance of the Rainbow Media Group or the value of the assets in the Rainbow Media Group. Instead, such determinations will be made by the Cablevision Board of Directors, subject to the provisions of the Cablevision charter. We do not expect to pay any dividends on any series of Cablevision common stock for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future. In connection with the preparation of the financial information for the Rainbow Media Group tracking stock, we have made certain allocations of Cablevisions costs based on existing policies. If we were to alter those policies, which we are entitled to do at any time, there could be material adverse effects on the Rainbow Media Group financial statements. You should consider this factor in analyzing the financial information set forth above. Cablevision's Web site: www.cablevision.com 3Q 2000 earnings announcement webcast live at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy Conference call dial in number (212) 896-6020 Conference call replay number (800) 633-8284/reservation #16487220 available through November 10th |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion