Insight Communications Announces First Quarter Earnings.Business Editors NEW YORK--(BUSINESS WIRE)--May 15, 2000 Insight Communications Insight Communications is the ninth largest cable operator in the United States with approximately 1.4 million customer relationships in the four contiguous states of Illinois, Kentucky, Indiana and Ohio. Company (Nasdaq:ICCI ICCI Insight Communications Company Inc. (stock symbol) ICCI International Conference on Computing and Information ICCI International Conference on Cognitive Informatics ICCI Islamic Chamber of Commerce and Industry ) today announced financial results for the first quarter ended March 31, 2000. Revenue increased $58.2 million over the quarter ended March 31,1999, largely as a result of the inclusion of the Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. systems which were acquired from InterMedia Intermedia - A hypertext system developed by a research group at IRIS (Brown University). on October October: see month. 1, 1999. 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. increased 105% to $45.0 million for the quarter, reflecting the Kentucky acquisition as well as expansion costs, which caused the operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: to decrease to 43.4%. "During the first quarter, we launched our signature interactive digital product in our third market, Evansville, Indiana
Evansville (IPA: [ˈɛ.vənzˌvɪl]) is the third-largest city in the state of Indiana. , and experienced the same impressive outcome which we achieved in Rockford, Illinois Rockford is a mid-sized city located on both banks of the Rock River in far northern Illinois. Rockford is often referred to as "The Forest City" and is the county seat of Winnebago County, Illinois, USA. As reported in the 2000 U.S. and Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. . These results reflected strong consumer demand, high customer satisfaction and substantial incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenue per digital home," said Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. S. Willner, Insight's 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. . "We look forward to the aggressive 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. of our trailblazing trail·blaz·ing adj. Suggestive of one that blazes a trail; setting out in a promising new direction; pioneering or innovative: trailblazing research; a trailblazing new technique. product, a proven winner, throughout our existing company during the second half of 2000." "Our results are largely in line with our plan. We are very excited about our repeated successes as we roll out our new product lines," stated Kim Kim orphan wanders streets of India with lama. [Br. Lit.: Kim] See : Adventurousness D. Kelly Kel·ly , Ellsworth Born 1923. American abstract painter and sculptor whose works are characterized by flat color areas with sharply defined edges. Kelly, Emmett 1898-1979. , Executive Vice President. "The growth of our 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 in our national systems, 68% of which is represented by our first completed rebuild in Rockford Rockford, industrial city (1990 pop. 139,426), seat of Winnebago co., N Ill., on the Rock River near the Wis. line; inc. 1839 with the merger of two settlements on opposite sides of the river. , was 7.4% during the quarter over the fourth quarter of 1999 or 29.6% annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. . Digital customers increased 51% since December December: see month. 31, 1999 and the demand has not let up." During the quarter, Insight announced that it had signed two letters of intent with AT&T 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). . The first will result in Insight contributing its remaining cable systems not already in a 50/50 joint venture with AT&T, known as Insight Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians , while AT&T contributes an additional 350,000 subscribers primarily in Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. . The transaction will result in Insight's managed footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. to increase to 1.4 million, virtually all of which are located in the four contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. states of Illinois, Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , Ohio, and Kentucky. The expanded joint venture will continue to be managed by Insight. In the other agreement, the two companies agreed in principle to deliver an AT&T-branded telephone service in Insight's service areas, which calls for Insight to market, service, and bill the local phone product while AT&T installs and maintains the needed switching equipment and will be the local exchange carrier of record. It is expected that Insight will sell the AT&T-branded local phone service separately and as part of bundled bun·dle n. 1. A group of objects held together, as by tying or wrapping. 2. Something wrapped or tied up for carrying; a package. 3. Biology A cluster or strand of closely bound muscle or nerve fibers. offerings. It is expected that the expansion of the joint venture will be completed in the fourth quarter of 2000, and the local telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. offering as a final component of a bundled suite of interactive services is expected to launch in the first market by the end of the year. Operating Data Results Revenues increased 128.4% to $103.6 million for the three months ended March 31, 2000 compared to $45.4 million for the three months ended March 31, 1999. The results were impacted by the Kentucky acquisition completed on October 1, 1999. The incremental revenue generated by the Kentucky systems approximated $56.4 million, accounting for 96.9% of the 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: revenue increase. Revenues per customer per month averaged $40.88 for the three months ended March 31, 2000 compared to $35.91 for the three months ended March 31, 1999 primarily reflecting an increase in average monthly basic revenue per customer of $3.95. Average monthly basic revenue per customer averaged $29.41 during the three months ended March 31, 2000 compared to $25.46 during the comparable period of 1999 primarily reflecting the completion of rebuilds in most Indiana systems and the Rockford, Illinois system. In addition, monthly revenue for 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 services averaged $.58 per basic customer for the three months ended March 31, 2000. There was no revenue recorded for these services for the three months ended March 31, 1999 as the service had not been deployed. Programming and other operating costs operating costs npl → gastos mpl operacionales increased 166.8% to $35.4 million for the three months ended March 31, 2000 compared to $13.3 million for the three months ended March 31, 1999. The incremental expense generated by the Kentucky systems approximated $19.6 million accounting for 88.7% of the consolidated expense increase. Excluding these systems, these costs increased by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.5 million accounting for approximately 11.3% of the total increase, primarily as a result of increased programming costs and additional programming carried by our systems. Selling, general and administrative expenses increased 128.1% to $23.2 million for the three months ended March 31, 2000 compared to $10.2 million for the three months ended March 31, 1999. The incremental expense generated by the Kentucky systems approximated $10.5 million accounting for 80.8% of the consolidated expense increase. Excluding these systems, these costs increased by approximately $2.5 million accounting for approximately 19.2% of the total increase, primarily reflecting increased marketing activity associated with new product introductions and increased corporate expenses. Depreciation and amortization expense increased 98.6% to $51.1 million for the three months ended March 31, 2000 compared to $25.7 million for the three months ended March 31, 1999. This increase was primarily due to the acquisitions of the cable systems discussed above and additional capital expenditures associated with the rebuilds of our systems, partially offset by a decrease in depreciation expense attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a change in estimate as of January January: see month. 1, 2000 which resulted in assets being depreciated Depreciated may refer to:
For the three months ended March 31, 2000, an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $6.1 million was incurred as compared to an operating loss of $3.8 million for the three months ended March 31, 1999, primarily for the reasons set forth above. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become increased 212.3% to $135.8 million for the three months ended March 31, 2000 as compared to $43.5 for the three months ended March 31, 1999 primarily resulting from a gain of $80.9 million on the sale of joint venture assets in the first quarter of 2000 as compared to a gain on systems exchanges of $19.8 million for the three months ended March 31, 1999, as well as the results generated by the Kentucky acquisition during the first three months of 2000. In addition, minority interest income of $15.5 million increased 244.0% for the first three months of 2000 compared to the first three months of 1999 primarily due to the Kentucky acquisition. Interest expense, net increased 130.5% to $24.2 million for the three months ended March 31, 2000 compared to $10.5 million for the three months ended March 31, 1999. The increase was primarily due to higher average outstanding indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. related to the Kentucky acquisition. Average debt outstanding during the three months ended March 31, 2000 was $1.2 billion at an average interest rate of 8.4%. The provision for income taxes was $25.0 million for the three months ended March 31, 2000, which represents an effective tax rate of 41.3%. For the three months ended March 31, 1999, there was no tax provision since prior to July July: see month. 26, 1999, the date of the Company's initial public offering, the Company was organized as a limited partnership. As such, each of the individual partners included the taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. or loss of the Company in their respective tax returns. For the three months ended March 31, 2000 net income of $35.5 million was realized for the reasons set forth above. Insight Communications (Nasdaq:ICCI) is the 8th largest cable operator in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. with approximately 1.4 million subscribers including previously announced pending acquisitions. The company is highly concentrated in the four contiguous states of Illinois, Indiana, Kentucky and Ohio. It became the first cable operator in 14 years to complete an initial public offering in July 1999 when it raised $650 million. The company specializes in offering bundled, state-of-the-art technology in mid-sized communities delivering analog and digital video, high-speed data and, in the near future, voice telephony to its customers. Any statements in this press release that are not historical facts are 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 Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical results or those the Company anticipates. Factors that could have a material and adverse impact on actual results are described in Insight's Registration Statement on from S-1 declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. effective by the Securities and Exchange Commission on July 21, 1999. All forward-looking statements in this press release are qualified by reference to the cautionary statements included in Insight's Registration Statement.
INSIGHT COMMUNICATIONS COMPANY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, March 31,
1999 2000
ASSETS (Note A) (unaudited)
Cash and cash equivalents $ 113,511 $ 93,520
Marketable securities 21,650 73,860
Trade accounts receivable,
net of allowance for doubtful
accounts of $764 in 1999 $ 12,104 $ 9,632
Due from affiliated companies 308 429
Prepaid expenses and other current
assets 18,383 22,684
----------- -----------
Total current assets 165,956 200,125
Fixed assets, net of accumulated
depreciation of $104,857 in 1999
and $132,456 in 2000 643,138 663,364
Intangible assets, net of
accumulated amortization of
$94,164 in 1999 and $117,213
in 2000 1,140,117 1,117,234
Deferred financing costs, net of
amortization of $1,055 in 1999
and $1,528 in 2000 20,368 19,895
Investment in unconsolidated
affiliates 5,991 --
Officer and employee loans
receivable 13,900 13,900
----------- -----------
$ 1,989,470 $ 2,014,518
=========== ===========
LIABILITIES AND STOCKHOLDERS
EQUITY
Accounts payable $ 67,996 $ 77,822
Accrued expenses and other
liabilities 9,431 7,198
Accrued property taxes 12,620 11,662
Deferred revenue 7,287 6,951
Interest payable 19,415 23,544
----------- -----------
Total current liabilities 116,749 127,177
Investment in unconsolidated
affiliates -- 6,122
Deferred income taxes 33,529 43,861
Debt 1,233,000 1,232,000
----------- -----------
1,383,278 1,409,160
Minority interest 18,132 2,678
Stockholders equity:
Preferred stock, $.01 par value,
100,000,000 shares authorized,
0 shares issued and outstanding
as of December 31, 1999 and
March 31, 2000 -- --
Common stock, $0.01 par value:
Class A - 300,000,000 shares
authorized, 49,157,180 shares
issued and outstanding as of
December 31, 1999 and
March 31, 2000 492 492
Class B - 100,000,000 shares
authorized, 10,226,050 shares
issued and outstanding as of
December 31, 1999 and
March 31, 2000 102 102
Additional paid in capital 656,486 656,486
Accumulated deficit (72,188) (36,667)
Accumulated other comprehensive
income (loss) 3,168 (17,733)
------- -------
588,060 602,680
------- -------
$ 1,989,470 $ 2,014,518
INSIGHT COMMUNICATIONS COMPANY, INC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
1999 2000
Revenue $ 45,377 $ 103,623
Costs and expenses:
Programming and other operating
costs 13,263 35,389
Selling, general and
administrative 10,180 23,218
Depreciation and amortization 25,739 51,120
----------- -----------
49,182 109,727
----------- -----------
Operating loss (3,805) (6,104)
Other income (expense):
Gain on cable system exchanges 19,762 --
Interest expense, net (10,493) (24,171)
Other expense (7) (25)
----------- -----------
9,262 (24,196)
----------- -----------
Income (loss) before minority
interest, gain on sale of equity
investment and equity 5,457 (30,300)
Minority interest 4,494 15,454
Gain on sale of equity investment -- 80,937
Equity in losses of investees (2,713) (5,614)
----------- -----------
Income before income taxes 7,238 60,477
Provision for income taxes -- 24,956
----------- -----------
Net income 7,238 35,521
Accretion of redeemable Class B
units (3,125) --
----------- -----------
Net income applicable to common
stockholders $ 4,113 $ 35,521
=========== ===========
Basic income per share $ 0.24 $ 0.60
Diluted income per share $ 0.26 $ 0.60
INSIGHT COMMUNICATIONS COMPANY, INC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
March 31,
1999 2000
Operating activities:
Net income $ 7,238 $ 35,521
Adjustments to reconcile net
income to net cash provided by
operating
Depreciation and amortization 25,739 51,120
Gain on sale of equity
investment -- (80,937)
Gain on cable systems exchanges (19,762) --
Deferred income taxes -- 24,856
Equity in losses of investees 2,713 5,614
Minority interest (4,494) (15,454)
Provision for losses on trade
accounts receivable 378 1,699
Amortization of bond discount -- (197)
Change in operating assets and
liabilities:
Trade accounts receivable 1,814 773
Due from and to affiliates 1,605 (121)
Prepaid expenses and other
assets (1,871) (4,302)
Accounts payable 6,088 9,826
Accrued expenses and other
liabilities 875 (3,527)
Interest payable (1,870) 4,129
----------- -----------
Net cash provided by operating
activities 18,453 29,000
----------- -----------
Investing activities:
Purchases of fixed assets (20,831) (47,825)
Purchase of cable television
system (2,900) --
Increase in intangible assets (3,957) (166)
----------- -----------
Net cash used in investing
activities (27,688) (47,991)
----------- -----------
Financing activities:
Proceeds from bank credit facility 19,000 --
Repayment of borrowings -- (1,000)
----------- -----------
Net cash provided by (used in)
financing activities 19,000 (1,000)
----------- -----------
Net increase (decrease) in cash
and cash equivalents 9,765 (19,991)
Cash and cash equivalents at
beginning of period 19,902 113,511
----------- -----------
Cash and cash equivalents at end
of period $ 29,667 $ 93,520
INSIGHT COMMUNICATIONS COMPANY, INC.
------------------------------------
PROFORMA QUARTERLY SUPPLEMENTAL INFORMATION
-------------------------------------------
FOR THE QUARTERS ENDED MARCH 31, DECEMBER 31,1999 & MARCH 31, 2000
------------------------------------------------------------------
National (1) Indiana (2) Columbus (3) Kentucky (4)
----------- ---------- ----------- -----------
Three Months Ended
March 31, 1999
--------------
Revenues $ 9,614 $ 32,885 $ 11,696 NA
System Cash
Flow $ 4,809 $ 16,931 $ 5,391 NA
System Cash
Flow (Margin) 50.0% 51.5% 46.1% NA
Corporate
Overhead $ (2,013)
Management Fee
Income
(Expense) $ 1,477 $ (1,020) $ (376) NA
Operating Cash
Flow $ 4,274 $ 15,912 $ 5,015 NA
Operating Cash
Flow (Margin) 48.7% 48.7% 42.9% NA
Capital
Expenditures 4,717 14,653 6,122 NA
Total Debt 126,663 466,000 170,199 NA
Three Months Ended
December 31, 1999
------------------
Revenues $ 10,570 $ 33,794 $ 11,552 $ 59,568
System Cash
Flow $ 4,683 $ 17,338 $ 4,799 $ 29,212
System Cash
Flow
(Margin) 44.3% 51.3% 41.5% 49.0%
Corporate
Overhead $ (2,938)
Management Fee
Income
(Expense) $ 2,989 $ (957) $ (343) $ (1,689)
Operating Cash
Flow $ 4,734 $ 16,381 $ 4,456 $ 27,524
Operating Cash
Flow
(Margin) 44.8% 48.5% 38.6% 46.2%
Capital
Expenditures $ 10,372 $ 32,733 $ 10,647 $ 22,197
Total Debt $ 1,000 $ 470,000 $ 186,556 $ 762,000
Three Months Ended
March 31, 2000
------------------
Revenues $ 10,749 $ 33,475 $ 11,535 $ 59,028
System Cash
Flow $ 4,828 $ 16,020 $ 4,444 $ 27,555
System Cash
Flow
(Margin) 44.9% 47.9% 38.5% 46.7%
Corporate
Overhead $ (3,526)
Management Fee
Income
(Expense) $ 3,049 $ (995) $ (352) $ (1,683)
Operating Cash
Flow $ 4,351 $ 15,025 $ 4,092 $ 25,872
Operating Cash
Flow
(Margin) 40.5% 44.9% 35.5% 43.8%
Capital
Expenditures $ 6,409 $ 19,244 $ 6,891 $ 22,172
Total Debt $ -- $ 470,000 $ 195,556 $ 762,000
(1) The National Systems include the Rockford, Ill., Claremont,
Cal., Griffin, Ga. And the Portland and Scottsburg Indiana
systems. The Company acquired the Scottsburg system on March
21, 1999 in an exchange for it's Franklin, Va. System. The
Portland, Indiana system was acquired on April 1, 1999. All
information presented above is proforma as if the two Indiana
acquisitions had occurred on January 1, 1999, as revised.
(2) The Indiana systems exclude approximately 10,200 customers
located in Scottsburg and Portland Indiana which are managed
out of Indiana but 100% owned by the Company.
(3) The Columbus system is an unconsolidated operation and
presented here for informational purposes only.
(4) The Kentucky system which was acquired on October 1, 1999.
INSIGHT COMMUNICATIONS COMPANY, INC.
PROFORMA QUARTERLY OPERATING STATISTICS
FOR THE QUARTERS ENDED MARCH 31, DECEMBER 31, 1999 & MARCH 31, 2000
THE NATIONAL SYSTEMS (1) 1Q99 4Q99 1Q00
----------------------- ---- ---- ----
Cable
-----
Homes Passed (000's) 167.7 169.1 171.5
Basic Cable Customers
(000's) 97.7 96.6 97.0
Basic Cable Penetration 58.3% 57.1% 56.6%
Net Subscriber
Additions (000's) (1.1) 0.4
Customer Revenues
(in millions)
-----------------
Recurring (2) $ 10,101.0 $ 12,048.9 $ 12,782.2
PPV $ 174.5 $ 179.0 $ 119.3
Advertising $ 407.0 $ 674.7 $ 637.5
Other $ 408.0 $ 656.9 $ 409.8
Total Monthly Recurring
Revenue per Customer $ 34.46 $ 41.58 $ 43.93
Total Monthly Revenue
per Customer $ 37.84 $ 40.83 $ 47.64
Digital Cable
-------------
Digital Ready Homes
Passed (000's) 18.6 74.4 77.5
Digital Customers (000's) 1.4 6.4 9.7
Penetration 7.5% 8.6% 12.5%
THE INDIANA SYSTEMS (3) 1Q99 4Q99 1Q00
---------------------- ---- ---- ----
Cable
-----
Homes Passed (000's) 444.8 456.9 460.2
Basic Cable Customers
(000's) 302.9 300.3 300.2
Basic Cable Penetration 68.1% 65.7% 65.2%
Net Subscriber Additions
(000's) (2.6) (0.1)
Customer Revenues
(in millions)
----------------------
Recurring (2) $ 28,495.8 $ 28,906.2 $ 28,833.9
PPV $ 514.3 $ 460.8 $ 508.9
Advertising $ 2,593.9 $ 3,209.2 $ 3,019.2
Other $ 1,281.3 $ 1,217.4 $ 1,112.7
Total Monthly Recurring
Revenue per Customer $ 31.36 $ 32.09 $ 32.02
Total Monthly Revenue
per Customer $ 36.19 $ 37.63 $ 37.16
Insight @Home
-------------
"Modem Ready" Homes
Passed (000's) NA 85.3 101.1
Customers (000's) NA 1.8 2.7
"Modem Ready"
Penetration NA 2.1% 2.7%
Digital Cable
Digital Ready Homes
Passed (000's) 176.4 175.2 174.6
Digital Customers (000's) 18.2 18.7 18.3
Penetration 10.3% 10.7% 10.5%
THE KENTUCKY SYSTEM (4) 1Q99 4Q99 1Q00
------------------------- ---- ---- ----
Cable
-----
Homes Passed (000's) NA 707.3 718.4
Basic Cable Customers
(000's) NA 448.5 447.5
Basic Cable Penetration NA 63.4% 62.3%
Net Subscriber Additions
(000's) -- (1.0)
Customer Revenues
(in millions)
Recurring (2) NA $ 52,422.9 $ 52,160.6
PPV NA $ 1,425.1 $ 1,218.7
Advertising NA $ 3,502.4 $ 2,878.3
Other NA $ 2,217.2 $ 2,770.4
Total Monthly Recurring
Revenue per Customer NA $ 39.00 $ 38.85
Total Monthly Revenue
per Customer NA $ 44.37 $ 43.90
Insight @Home
-------------
"Modem Ready" Homes
Passed (000's) NA 457.0 513.6
Customers (000's) NA 6.5 9.4
"Modem Ready"
Penetration NA 1.4% 1.8%
Digital Cable
-------------
Digital Ready Homes
Passed (000's) NA 295.3 320.8
Digital Customers
(000's) NA 20.7 22.4
Penetration NA 7.0% 7.0%
THE COLUMBUS SYSTEM (5) 1Q99 4Q99 1Q00
---------------------- ---- ---- ----
Cable
-----
Homes Passed (000's) 173.0 178.3 179.5
Basic Cable Customers
(000's) 86.6 84.2 84.3
Basic Cable Penetration 50.1% 47.2% 47.0%
Net Subscriber Additions
(000's) (2.4) 0.1
Customer Revenues
(in millions)
Recurring (2) $ 9,143.3 $ 8,984.0 $ 9,131.8
PPV $ 716.3 $ 446.2 $ 429.4
Advertising $ 825.7 $ 1,106.6 $ 1,033.1
Other $ 1,010.5 $ 1,015.4 $ 940.9
Total Monthly Recurring
Revenue per Customer $ 34.98 $ 35.48 $ 36.12
Total Monthly Revenue
per Customer $ 44.75 $ 45.61 $ 45.64
Digital Cable
-------------
Digital Ready Homes
Passed (000's) NA 12.1 19.1
Digital Customers
(000's) NA 1.1 3.4
Penetration NA 9.1% 17.9%
(1) The National Systems include the Rockford, Ill., Claremont,
Cal., Griffin, Ga. and the Portland and Scottsburg Indiana
systems. The Company acquired the Scottsburg system on March
21, 1999 in an exchange for its Franklin, Va. System. The
Portland, Indiana system was acquired on April 1, 1999. All
information presented above is proforma as if the two Indiana
acquisitions had occurred on January 1, 1999.
(2) Recurring Cable customer revenues include basic, pay, digital,
cable modem, converter revenues and management fees.
(3) The Indiana systems exclude approximately 10,200 customers
located in Scottsburg and [pilcrow (paragraph sign)] Portland, Indiana
which are
managed out of Indiana but owned 100% by the Company.
(4) The Kentucky systems were acquired on October 1, 1999.
(5) The Columbus system is an unconsolidated operation and
presented here for informational purposes only.
INSIGHT COMMUNICATIONS COMPANY, INC.
FOURTH QUARTER FINANCIAL PERFORMANCE
FOR THE QUARTERS ENDED DECEMBER 31, 1998 AND 1999
THE NATIONAL
SYSTEMS (1)
------------
IVQ IVQ %
1998 1999 INCR(DECR)
---------- ---------- ---------
Revenue $ 9,556 $ 10,570 10.6%
Expenses 4,240 5,887 38.8%
System Cash Flow 5,316 4,683 -11.9%
THE INDIANA
SYSTEMS (2)
----------- IVQ IVQ %
1998 1999 INCR(DECR)
--------- --------- ----------
Revenue $ 34,840 $ 36,382 4.4%
Expenses 20,166 17,751 -12.0%
System Cash
Flow 14,674 18,631 27.0%
THE KENTUCKY
SYSTEMS (3)
------------ IVQ IVQ %
1998 1999 INCR(DECR)
--------- --------- ---------
Revenue $ 49,300 $ 56,980 15.6%
Expenses 26,675 29,061 8.9%
System Cash
Flow 22,625 27,919 23.4%
CONSOLIDATED (4)
--------------- IVQ IVQ %
1998 1999 INCR(DECR)
--------- --------- ---------
Revenue $ 93,696 $ 103,932 10.9%
Expenses 51,081 52,699 3.2%
System Cash
Flow 42,615 51,233 20.2%
Management
Fee Income 351 363 3.4%
Corporate
Overhead (1,505) (2,938) 95.2%
Operating
Cash Flow $ 41,461 $ 48,658 17.4%
Note: The above tables exclude intercompany management fees which
eliminate in consolidation for the Indiana and Kentucky
systems.
THE COLUMBUS
SYSTEMS (5) FOR INFORMATIONAL PURPOSES ONLY
------------ -------------------------------
IVQ IVQ %
1998 1999 INCR(DECR)
Revenue $12,127 $11,552 -4.7%
Expenses 6,414 6,753 5.3%
System Cash
Flow 5,713 4,799 -16.0%
Management
Fee Expense 351 343 -2.3%
Operating
Cash Flow $ 5,362 $ 4,456 -18.3%
(1) The National Systems include the Rockford, Ill., Claremont,
Cal., Griffin, Ga. and the Portland and Scottsburg Indiana
systems. The Company acquired the Scottsburg system on March
21, 1999 in an exchange for its Franklin, Va. System. The
Portland, Indiana system was acquired on April 1, 1999. All
information presented above is proforma as if the two Indiana
acquisitions had occurred on January 1, 1999.
(2) The Indiana systems exclude approximately 10,200 customers
located in Scottsburg and Portland, Indiana which are managed
out of Indiana but owned 100% by the Company.
(3) The Kentucky systems were acquired on October 1, 1999.
(4) Insight Communications, Inc.
(5) The Columbus system is an unconsolidated operation and
presented here for informational purposes only.
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