Attached files
file | filename |
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8-K - FORM 8-K - CSC HOLDINGS LLC | y91897e8vk.htm |
EX-99.2 - EX-99.2 - CSC HOLDINGS LLC | y91897exv99w2.htm |
EX-99.1 - EX-99.1 - CSC HOLDINGS LLC | y91897exv99w1.htm |
EXHIBIT 99.3
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
On June 30, 2011, Cablevision Systems Corporation (Cablevision) and CSC Holdings, LLC (CSC
Holdings) (collectively, the Company) completed the spin-off of AMC Networks, Inc. (AMC
Networks) through a tax-free distribution to its stockholders (the AMC Distribution). The
Company contributed to AMC Networks, the Companys subsidiary that owns directly or indirectly all
of the interests in four nationally distributed programming networks: AMC, WE tv, IFC and Sundance
Channel, as well as AMC/Sundance Channel Global, IFC Entertainment, Rainbow Network Communications
and certain other businesses, and then distributed the common stock of AMC Networks to
Cablevisions stockholders. The distribution by the Company of the common stock of AMC Networks to
Cablevision stockholders was treated as a distribution in the form of a dividend at Cablevisions
historical cost. Subsequent to the AMC Distribution, the Company will no longer consolidate the
financial results of AMC Networks for the purpose of its own financial reporting. After the date
of the AMC Distribution, the historical financial results of AMC Networks will be reflected in the
Companys consolidated financial statements as discontinued operations for all periods presented
through the AMC Distribution date, beginning with the financial statements to be filed for the
quarter ended June 30, 2011.
The accompanying unaudited pro forma consolidated financial statements reflect certain known
impacts of the AMC Distribution and the separation of AMC Networks from the Company. The unaudited
pro forma consolidated financial statements have been prepared giving effect to the AMC
Distribution as if this transaction had occurred as of January 1, 2008 for the unaudited pro forma
consolidated statements of operations for the three months ended March 31, 2011 and 2010 and for
the years ended December 31, 2010, 2009 and 2008 and as of March 31, 2011 for the unaudited pro
forma condensed consolidated balance sheet.
The unaudited pro forma condensed consolidated balance sheets as of March 31, 2011 and the
unaudited pro forma consolidated statements of operations for the three months ended March 31, 2011
and 2010 and the years ended December 31, 2010, 2009 and 2008 are based on the historical
consolidated financial statements of Cablevision and CSC Holdings, and reflect certain assumptions
that we believe are reasonable, given the information currently available. While such adjustments
are subject to change, in managements opinion, the pro forma adjustments have been developed on a
reasonable and rational basis.
The Company has entered into various agreements with AMC Networks and certain of its subsidiaries
in connection with transition services and a number of ongoing commercial relationships, including
affiliation agreements covering the carriage of certain of AMC Networks programming networks by
Cablevisions Telecommunications Services segment.
These unaudited pro forma consolidated financial statements reflect all other adjustments that, in
the opinion of management, are necessary to present fairly the pro forma consolidated results of
operations and consolidated financial position of the Company as of and for the periods indicated.
The unaudited pro forma consolidated financial information is for illustrative and informational
purposes only and is not intended to represent or be indicative of what the Companys financial
condition or results of operations would have been had AMC Networks operated historically as a
company independent of Cablevision or if the AMC Distribution had occurred on the dates indicated.
The unaudited pro forma consolidated financial information also should not be considered
representative of the Companys future consolidated financial condition or consolidated results of
operations. The unaudited pro forma financial data should be read in conjunction with the
historical consolidated financial statements and accompanying notes thereto included in the
Companys Form 10-K for the year ended December 31, 2010 and the Companys Quarterly Report on Form
10-Q for the quarterly period ended March 31, 2011.
The following is a brief description of the amounts recorded under each of the column headings in
the accompanying unaudited pro forma consolidated balance sheets and the unaudited pro forma
consolidated statements of operations:
Historical
This column reflects Cablevisions and CSC Holdings respective historical consolidated financial
position as of March 31, 2011 and respective historical consolidated results of operations for the
three months ended March 31, 2011 and 2010 and for the years ended December 31, 2010, 2009 and
2008, prior to any adjustment for the AMC Distribution and the pro forma adjustments described
under the headings Distribution of AMC Networks and Adjustments Relating to AMC Distribution
discussed below.
Distribution of AMC Networks
This column reflects AMC Networks historical consolidated financial position as of March 31, 2011
and its historical consolidated results of operations for the three months ended March 31, 2011 and
2010 and each of the years ended December 31, 2010, 2009 and 2008, prior to the pro forma
adjustments described under the heading Adjustments Relating to AMC Distribution below.
Adjustments Relating to AMC Distribution
This column represents pro forma adjustments for transactions between the Company and AMC Networks
that were previously eliminated in consolidation and will no longer be eliminated subsequent to the
AMC Distribution or that arise as a direct result of the AMC Distribution and are expected to have
an ongoing effect. These adjustments are more fully described in the notes to the accompanying
unaudited pro forma consolidated financial information.
2
CABLEVISION SYSTEMS CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 2011
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 2011
Distribution of | Adjustments | |||||||||||||||
AMC | Relating to AMC | |||||||||||||||
Historical | Networks* (1) | Distribution* | Pro forma | |||||||||||||
(dollars in thousands) | ||||||||||||||||
ASSETS |
||||||||||||||||
Current Assets: |
||||||||||||||||
Cash and cash equivalents |
$ | 610,025 | $ | (84,073 | ) | $ | 4,600 | (3) | $ | 530,552 | ||||||
Restricted cash |
1,188 | (39 | ) | | 1,149 | |||||||||||
Accounts receivable, trade (less allowance
for doubtful accounts) |
478,588 | (223,908 | ) | | 254,680 | |||||||||||
Prepaid expenses and other current assets |
178,617 | (44,663 | ) | | 133,954 | |||||||||||
Amounts due from affiliates |
5,486 | (2,897 | ) | 16,725 | (2) | 19,314 | ||||||||||
Program rights, net |
199,660 | (199,660 | ) | | | |||||||||||
Deferred tax asset |
189,853 | (6,301 | ) | (94,935) | (6) | 88,617 | ||||||||||
Investment securities pledged as collateral |
197,924 | | | 197,924 | ||||||||||||
Total current assets |
1,861,341 | (561,541 | ) | (73,610 | ) | 1,226,190 | ||||||||||
Property, plant and equipment, net of
accumulated depreciation |
3,326,968 | (65,453 | ) | | 3,261,515 | |||||||||||
Amounts due from affiliates |
3,433 | (3,433 | ) | | | |||||||||||
Investment securities pledged as collateral |
333,003 | | | 333,003 | ||||||||||||
Derivative contracts |
3,559 | | | 3,559 | ||||||||||||
Other assets |
58,348 | (14,204 | ) | | 44,144 | |||||||||||
Program rights, net |
696,030 | (696,030 | ) | | | |||||||||||
Deferred tax asset |
127 | (43,123 | ) | 94,578 | (6) | 51,582 | ||||||||||
Deferred carriage fees, net |
65,106 | (65,106 | ) | | | |||||||||||
Affiliation, broadcast and other agreements,
net of accumulated amortization |
327,589 | (327,589 | ) | | | |||||||||||
Other amortizable intangible assets, net of
accumulated amortization |
294,989 | (17,515 | ) | | 277,474 | |||||||||||
Indefinite-lived cable television franchises |
1,240,228 | | | 1,240,228 | ||||||||||||
Other indefinite-lived intangible assets |
86,795 | (19,900 | ) | | 66,895 | |||||||||||
Goodwill |
525,240 | (83,173 | ) | | 442,067 | |||||||||||
Deferred financing and other costs, net of
accumulated amortization |
140,152 | (6,387 | ) | | 133,765 | |||||||||||
$ | 8,962,908 | $ | (1,903,454 | ) | $ | 20,968 | $ | 7,080,422 | ||||||||
* | See Note A of Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheets. |
3
CABLEVISION SYSTEMS CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(CONTINUED)
MARCH 31, 2011
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(CONTINUED)
MARCH 31, 2011
Adjustments | ||||||||||||||||
Distribution of AMC | Relating to AMC | |||||||||||||||
Historical | Networks*(1) | Distribution* | Pro forma | |||||||||||||
(dollars in thousands) | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS DEFICIENCY |
||||||||||||||||
Current Liabilities: |
||||||||||||||||
Accounts payable |
$ | 523,797 | $ | (54,009 | ) | $ | | $ | 469,788 | |||||||
Accrued liabilities |
605,233 | (55,708 | ) | 900 | (4) | 550,425 | ||||||||||
Amounts due to affiliate |
27,106 | | 22,137 | (2) | 49,243 | |||||||||||
Deferred revenue |
80,090 | (15,844 | ) | | 64,246 | |||||||||||
Program rights obligations |
127,344 | (127,240 | ) | | 104 | |||||||||||
Liabilities under derivative contracts |
46,050 | | | 46,050 | ||||||||||||
Credit facility debt |
304,659 | (50,000 | ) | | 254,659 | |||||||||||
Collateralized indebtedness |
125,410 | | | 125,410 | ||||||||||||
Capital lease obligations |
5,329 | (3,838 | ) | | 1,491 | |||||||||||
Senior notes |
325,796 | | | 325,796 | ||||||||||||
Total current liabilities |
2,170,814 | (306,639 | ) | 23,037 | 1,887,212 | |||||||||||
Deferred revenue |
10,373 | (93 | ) | | 10,280 | |||||||||||
Program rights obligations |
430,401 | (430,401 | ) | | | |||||||||||
Liabilities under derivative contracts |
173,364 | | | 173,364 | ||||||||||||
Other liabilities |
300,895 | (88,746 | ) | 58,251 | (4) | 270,400 | ||||||||||
Credit facility debt |
6,150,231 | (362,500 | ) | (1,020,000) | (5) | 4,767,731 | ||||||||||
Collateralized indebtedness |
273,315 | | | 273,315 | ||||||||||||
Capital lease obligations |
44,738 | (15,360 | ) | | 29,378 | |||||||||||
Senior notes and debentures |
5,547,023 | (299,619 | ) | | 5,247,404 | |||||||||||
Senior subordinated notes |
324,134 | (324,134 | ) | | | |||||||||||
Total liabilities |
15,425,288 | (1,827,492 | ) | (938,712 | ) | 12,659,084 | ||||||||||
Redeemable noncontrolling interests |
14,330 | | | 14,330 | ||||||||||||
Commitments and contingencies |
||||||||||||||||
Total stockholders deficiency |
(6,478,554 | ) | (75,962 | ) | (5,412) | (2) | (5,594,836 | ) | ||||||||
965,092 | (7) | |||||||||||||||
Noncontrolling interest |
1,844 | | | 1,844 | ||||||||||||
Total deficiency |
(6,476,710 | ) | (75,962 | ) | 959,680 | (5,592,992 | ) | |||||||||
$ | 8,962,908 | $ | (1,903,454 | ) | $ | 20,968 | $ | 7,080,422 | ||||||||
* | See Note A of Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheets. |
4
CSC HOLDINGS, LLC
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 2011
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 2011
Distribution of | Adjustments | |||||||||||||||
AMC | Relating to AMC | |||||||||||||||
Historical | Networks* (1) | Distribution* | Pro forma | |||||||||||||
(dollars in thousands) | ||||||||||||||||
ASSETS |
||||||||||||||||
Current Assets: |
||||||||||||||||
Cash and cash equivalents |
$ | 609,174 | $ | (84,073 | ) | $ | 4,600 | (3) | $ | 529,701 | ||||||
Restricted cash |
1,188 | (39 | ) | | 1,149 | |||||||||||
Accounts receivable, trade (less allowance
for doubtful accounts) |
478,588 | (223,908 | ) | | 254,680 | |||||||||||
Prepaid expenses and other current assets |
174,166 | (44,663 | ) | | 129,503 | |||||||||||
Amounts due from affiliates |
514,294 | (2,897 | ) | 16,725 | (2) | 528,122 | ||||||||||
Program rights, net |
199,660 | (199,660 | ) | | | |||||||||||
Deferred tax asset |
173,880 | (6,301 | ) | (94,935) | (6) | 72,644 | ||||||||||
Investment securities pledged as collateral |
197,924 | | | 197,924 | ||||||||||||
Total current assets |
2,348,874 | (561,541 | ) | (73,610 | ) | 1,713,723 | ||||||||||
Property, plant and equipment, net of
accumulated depreciation |
3,326,968 | (65,453 | ) | | 3,261,515 | |||||||||||
Amounts due from affiliates |
3,433 | (3,433 | ) | | | |||||||||||
Investment securities pledged as collateral |
333,003 | | | 333,003 | ||||||||||||
Derivative contracts |
3,559 | | | 3,559 | ||||||||||||
Other assets |
58,348 | (14,204 | ) | | 44,144 | |||||||||||
Program rights, net |
696,030 | (696,030 | ) | | | |||||||||||
Deferred tax asset |
| (43,123 | ) | 43,123 | (6) | | ||||||||||
Deferred carriage fees, net |
65,106 | (65,106 | ) | | | |||||||||||
Affiliation, broadcast and other agreements,
net of accumulated amortization |
327,589 | (327,589 | ) | | | |||||||||||
Other amortizable intangible assets, net of
accumulated amortization |
294,989 | (17,515 | ) | | 277,474 | |||||||||||
Indefinite-lived cable television franchises |
1,240,228 | | | 1,240,228 | ||||||||||||
Other indefinite-lived intangible assets |
86,795 | (19,900 | ) | | 66,895 | |||||||||||
Goodwill |
525,240 | (83,173 | ) | | 442,067 | |||||||||||
Deferred financing and other costs, net of
accumulated amortization |
99,308 | (6,387 | ) | | 92,921 | |||||||||||
$ | 9,409,470 | $ | (1,903,454 | ) | $ | (30,487 | ) | $ | 7,475,529 | |||||||
* | See Note A of Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheets. |
5
CSC HOLDINGS, LLC
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(CONTINUED)
MARCH 31, 2011
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(CONTINUED)
MARCH 31, 2011
Adjustments | ||||||||||||||||
Distribution of AMC | Relating to AMC | |||||||||||||||
Historical | Networks*(1) | Distribution* | Pro forma | |||||||||||||
(dollars in thousands) | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS DEFICIENCY |
||||||||||||||||
Current Liabilities: |
||||||||||||||||
Accounts payable |
$ | 523,797 | $ | (54,009 | ) | $ | | $ | 469,788 | |||||||
Accrued liabilities |
550,795 | (55,708 | ) | 900 | (4) | 495,987 | ||||||||||
Amounts due to affiliate |
27,000 | | 22,137 | (2) | 49,137 | |||||||||||
Deferred revenue |
80,090 | (15,844 | ) | | 64,246 | |||||||||||
Program rights obligations |
127,344 | (127,240 | ) | | 104 | |||||||||||
Liabilities under derivative contracts |
46,050 | | | 46,050 | ||||||||||||
Credit facility debt |
304,659 | (50,000 | ) | | 254,659 | |||||||||||
Collateralized indebtedness |
125,410 | | | 125,410 | ||||||||||||
Capital lease obligations |
5,329 | (3,838 | ) | | 1,491 | |||||||||||
Senior notes |
325,796 | | | 325,796 | ||||||||||||
Total current liabilities |
2,116,270 | (306,639 | ) | 23,037 | 1,832,668 | |||||||||||
Deferred revenue |
10,373 | (93 | ) | | 10,280 | |||||||||||
Program rights obligations |
430,401 | (430,401 | ) | | | |||||||||||
Liabilities under derivative contracts |
173,364 | | | 173,364 | ||||||||||||
Other liabilities |
299,671 | (88,746 | ) | 58,251 | (4) | 269,176 | ||||||||||
Deferred tax liability |
492,527 | | (45,200) | (6) | 447,327 | |||||||||||
Credit facility debt |
6,150,231 | (362,500 | ) | (1,020,000) | (5) | 4,767,731 | ||||||||||
Collateralized indebtedness |
273,315 | | | 273,315 | ||||||||||||
Capital lease obligations |
44,738 | (15,360 | ) | | 29,378 | |||||||||||
Senior notes and debentures |
3,381,028 | (299,619 | ) | | 3,081,409 | |||||||||||
Senior subordinated notes |
324,134 | (324,134 | ) | | | |||||||||||
Total liabilities |
13,696,052 | (1,827,492 | ) | (983,912 | ) | 10,884,648 | ||||||||||
Redeemable noncontrolling interests |
14,330 | | | 14,330 | ||||||||||||
Commitments and contingencies |
||||||||||||||||
Total stockholders deficiency |
(4,302,756 | ) | (75,962 | ) | (5,412) | (2) | (3,425,293 | ) | ||||||||
958,837 | (7) | |||||||||||||||
Noncontrolling interest |
1,844 | | | 1,844 | ||||||||||||
Total deficiency |
(4,300,912 | ) | (75,962 | ) | 953,425 | (3,423,449 | ) | |||||||||
$ | 9,409,470 | $ | (1,903,454 | ) | $ | (30,487 | ) | $ | 7,475,529 | |||||||
* | See Note A of Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheets. |
6
Note A Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheets as of March 31, 2011
(dollars in thousands)
(1) | Distribution of AMC Networks. As a result of the AMC Distribution, AMC Networks will be distributed to Cablevisions stockholders. These adjustments reflect the elimination of the historical assets and liabilities (excluding intercompany balances between the Company and AMC Networks) of AMC Networks from the Companys consolidated balance sheet as of March 31, 2011 in the form of a dividend to stockholders at book value. | |
(2) | Intercompany balances with AMC Networks. Adjustments include historical intercompany balances between the Companys subsidiaries and AMC Networks that prior to the AMC Distribution were eliminated in consolidation and which, as a result of the AMC Distribution, would no longer be eliminated in consolidation. | |
(3) | Cash and cash equivalents. Adjustments include: (i) the receipt of payment from AMC Networks for the unfunded portion of its employees participant accounts (net of assets held in a trust) in the Companys cash balance pension plan of approximately $4,000, (ii) the receipt of approximately $6,900 from AMC Networks representing the payment of outstanding stock appreciation rights and long-term incentive plan liabilities relating to corporate employees that were previously allocated to AMC Networks that will be paid by AMC Networks to the Company in connection with distribution, and (iii) the payment of approximately $6,300 by the Company to AMC Networks for the historical contributions (net of benefits paid) made by AMC Networks on behalf of its employees in the Companys unqualified excess cash balance pension plan and excess 401(k) savings plan. | |
(4) | Other liabilities. Represents (i) an increase of $57,451 for liabilities relating to uncertain tax positions that were recorded by AMC Networks but will be an obligation of Cablevision pursuant to the tax disaffiliation agreement between Cablevision and AMC Networks, (ii) an increase of approximately $6,900 representing outstanding stock appreciation rights and long-term incentive plan liabilities relating to corporate employees that were previously allocated to AMC Networks that will remain as a liability of the Company until settlement, however a payment will be received from AMC Networks in connection with the AMC Distribution, (iii) an increase of approximately $1,500 in the projected benefit obligation of the Companys cash balance pension plan as a result of the remeasurement of AMC Networks employees who will remain in the Plan but will no longer receive future service credits but will be eligible to receive their account balance, (iv) a decrease of approximately $3,400 in the liability resulting from the transfer to AMC Networks from the Company of AMC Networks employees participant accounts in the Companys excess cash balance pension plan, and (v) a decrease in the liability of approximately $3,300 resulting from the transfer to AMC Networks from the Company of AMC Networks employees participant accounts in the Companys excess 401(k) savings plan. | |
(5) | Credit facility debt. Adjustment represents the approximately $1,020,000 of outstanding borrowings under the Companys revolving and extended revolving loan facilities that will be satisfied and discharged with a portion of the debt to be issued by AMC Networks to the Company in connection with the AMC Distribution. At the date of the AMC Distribution, the new AMC Networks debt will be used to satisfy and discharge approximately $1,250,000 of outstanding borrowings under the Companys revolving and extended revolving loan facilities. | |
(6) | Tax adjustments. Represents (i) the elimination of deferred tax assets of AMC Networks, (ii) an adjustment resulting from the remeasurement of the remaining deferred tax assets of the Company to reflect the estimated applicable effective corporate income tax rate adjusted to exclude the state apportionment factors of AMC Networks, (iii) a reclassification of a portion of the current deferred tax asset for projected net operating loss utilization to noncurrent deferred tax asset and (iv) an |
7
increase in the deferred tax asset relating to the historical recognition of share-based compensation expense for employees of the Company that was allocated to AMC Networks. | ||
(7) | Stockholders deficiency. Adjustments include (i) a decrease of approximately $1,020,000 representing a portion of the debt to be issued by AMC Networks in connection with the AMC Distribution that will be used to satisfy and discharge the outstanding borrowings under the Companys revolving and extended revolving loan facilities, (ii) a decrease relating to the contribution to the Company by AMC Networks for the unfunded portion of its employees participant accounts (net of assets held in a trust) in the Companys cash balance pension plan of approximately $4,000, and (iii) a decrease of approximately $400 related to accumulated other comprehensive loss. These decreases were offset by an increase in stockholders deficiency of approximately $57,808 (for Cablevision) and $64,063 (for CSC Holdings) as a result of the tax adjustments discussed in (6) above, and approximately $1,500 from the increase in the projected benefit obligation of the Companys cash balance pension plan discussed in (4) above. |
8
CABLEVISION SYSTEMS CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2011
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2011
Distribution | Adjustments | |||||||||||||||
of AMC | Relating to | |||||||||||||||
Networks* | AMC | |||||||||||||||
Historical | (8) | Distribution* | Pro forma | |||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||
Revenues, net |
$ | 1,921,554 | $ | (272,903 | ) | $ | 6,473 | (9) | $ | 1,655,124 | ||||||
Operating expenses: |
||||||||||||||||
Technical and operating (excluding
depreciation, amortization and
impairments shown below) |
822,466 | (90,411 | ) | 6,090 | (9) | 738,145 | ||||||||||
Selling, general and administrative |
453,114 | (86,921 | ) | 383 | (9) | 374,594 | ||||||||||
8,018 | (10) | |||||||||||||||
Restructuring expense |
137 | 34 | | 171 | ||||||||||||
Depreciation and amortization
(including impairments) |
270,109 | (24,926 | ) | | 245,183 | |||||||||||
1,545,826 | (202,224 | ) | 14,491 | 1,358,093 | ||||||||||||
Operating income |
375,728 | (70,679 | ) | (8,018 | ) | 297,031 | ||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(209,507 | ) | 18,350 | | (191,157 | ) | ||||||||||
Interest income |
530 | (457 | ) | | 73 | |||||||||||
Gain on sale of programming
interests, net |
161 | (161 | ) | | | |||||||||||
Gain on investments, net |
59,072 | | | 59,072 | ||||||||||||
Loss on equity derivative
contracts, net |
(40,058 | ) | | | (40,058 | ) | ||||||||||
Loss on interest rate swap
contracts, net |
(4,189 | ) | | | (4,189 | ) | ||||||||||
Miscellaneous, net |
289 | (72 | ) | | 217 | |||||||||||
(193,702 | ) | 17,660 | | (176,042 | ) | |||||||||||
Income from continuing operations
before income taxes |
182,026 | (53,019 | ) | (8,018 | ) | 120,989 | ||||||||||
Income tax expense |
(77,982 | ) | 23,201 | 1,734 | (11) | (53,047 | ) | |||||||||
Income from continuing operations
after income taxes |
104,044 | (29,818 | ) | (6,284 | ) | 67,942 | ||||||||||
Net loss attributable to
noncontrolling interests |
21 | | | 21 | ||||||||||||
Income from continuing
operations attributable to
Cablevision Systems Corporation
shareholders |
$ | 104,065 | $ | (29,818 | ) | $ | (6,284 | ) | $ | 67,963 | ||||||
Basic income per share: |
||||||||||||||||
Income from continuing operations
attributable to Cablevision Systems
Corporation shareholders |
$ | 0.37 | $ | 0.24 | ||||||||||||
Basic weighted average common shares
(in thousands) |
282,123 | 282,123 | ||||||||||||||
Diluted income per share: |
||||||||||||||||
Income from continuing operations
attributable to Cablevision Systems
Corporation shareholders |
$ | 0.36 | $ | 0.23 | ||||||||||||
Basic weighted average common shares
(in thousands) |
291,221 | 291,221 | ||||||||||||||
* | See Note B of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
9
CABLEVISION SYSTEMS CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2010
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2010
Distribution | Adjustments | |||||||||||||||
of AMC | Relating to | |||||||||||||||
Networks* | AMC | |||||||||||||||
Historical | (8) | Distribution* | Pro forma | |||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||
Revenues, net |
$ | 1,752,401 | $ | (248,372 | ) | $ | 5,762 | (9) | $ | 1,509,791 | ||||||
Operating expenses: |
||||||||||||||||
Technical and operating (excluding
depreciation, amortization and
impairments shown below) |
737,596 | (82,425 | ) | 5,525 | (9) | 660,696 | ||||||||||
Selling, general and administrative |
418,048 | (78,444 | ) | 244 | (9) | 355,176 | ||||||||||
15,328 | (10) | |||||||||||||||
Restructuring expense (credits) |
(209 | ) | 212 | | 3 | |||||||||||
Depreciation and amortization
(including impairments) |
241,893 | (26,690 | ) | | 215,203 | |||||||||||
1,397,328 | (187,347 | ) | 21,097 | 1,231,078 | ||||||||||||
Operating income |
355,073 | (61,025 | ) | (15,335 | ) | 278,713 | ||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(183,301 | ) | 19,666 | | (163,635 | ) | ||||||||||
Interest income |
641 | (550 | ) | | 91 | |||||||||||
Gain on sale of programming
interests, net |
102 | (102 | ) | | | |||||||||||
Gain on investments, net |
42,292 | | | 42,292 | ||||||||||||
Loss on equity derivative
contracts, net |
(35,033 | ) | | | (35,033 | ) | ||||||||||
Loss on interest rate swap
contracts, net |
(35,109 | ) | | | (35,109 | ) | ||||||||||
Miscellaneous, net |
373 | (26 | ) | | 347 | |||||||||||
(210,035 | ) | 18,988 | | (191,047 | ) | |||||||||||
Income from continuing
operations before income taxes |
145,038 | (42,037 | ) | (15,335 | ) | 87,666 | ||||||||||
Income tax expense |
(66,728 | ) | 17,948 | 5,405 | (11) | (43,375 | ) | |||||||||
Income from continuing
operations after income taxes |
78,310 | (24,089 | ) | (9,930 | ) | 44,291 | ||||||||||
Net income attributable to
noncontrolling interests |
(28 | ) | | | (28 | ) | ||||||||||
Income from continuing
operations attributable to
Cablevision Systems Corporation
shareholders |
$ | 78,282 | $ | (24,089 | ) | $ | (9,930 | ) | $ | 44,263 | ||||||
Basic income per share: |
||||||||||||||||
Income from continuing operations
attributable to Cablevision Systems
Corporation shareholders |
$ | 0.27 | $ | 0.15 | ||||||||||||
Basic weighted average common shares
(in thousands) |
293,884 | 293,884 | ||||||||||||||
Diluted income per share: |
||||||||||||||||
Income from continuing operations
attributable to Cablevision Systems
Corporation shareholders |
$ | 0.26 | $ | 0.14 | ||||||||||||
Basic weighted average common shares
(in thousands) |
302,826 | 302,826 | ||||||||||||||
* | See Note B of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
10
CABLEVISION SYSTEMS CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2010
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2010
Distribution | Adjustments | |||||||||||||||
of AMC | Relating to | |||||||||||||||
Networks* | AMC | |||||||||||||||
Historical | (8) | Distribution* | Pro forma | |||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||
Revenues, net |
$ | 7,231,249 | $ | (1,078,300 | ) | $ | 24,626 | (9) | $ | 6,177,575 | ||||||
Operating expenses: |
||||||||||||||||
Technical and operating (excluding
depreciation, amortization and
impairments shown below) |
3,007,883 | (366,093 | ) | 21,960 | (9) | 2,663,750 | ||||||||||
Selling, general and administrative |
1,703,173 | (328,134 | ) | 2,632 | (9) | 1,440,731 | ||||||||||
63,060 | (10) | |||||||||||||||
Restructuring
credits |
(2,276 | ) | 2,218 | | (58 | ) | ||||||||||
Depreciation and amortization
(including impairments) |
993,547 | (106,455 | ) | | 887,092 | |||||||||||
5,702,327 | (798,464 | ) | 87,652 | 4,991,515 | ||||||||||||
Operating income |
1,528,922 | (279,836 | ) | (63,026 | ) | 1,186,060 | ||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(787,093 | ) | 75,800 | | (711,293 | ) | ||||||||||
Interest income |
2,930 | (2,388 | ) | | 542 | |||||||||||
Gain on sale of programming and
affiliate interests, net |
2,518 | (467 | ) | | 2,051 | |||||||||||
Gain on investments, net |
109,810 | | | 109,810 | ||||||||||||
Loss on equity derivative
contracts, net |
(72,044 | ) | | | (72,044 | ) | ||||||||||
Loss on interest rate swap
contracts, net |
(85,013 | ) | | | (85,013 | ) | ||||||||||
Loss on extinguishment of debt and
write-off of deferred financing
costs |
(110,049 | ) | | | (110,049 | ) | ||||||||||
Miscellaneous, net |
1,288 | 162 | | 1,450 | ||||||||||||
(937,653 | ) | 73,107 | | (864,546 | ) | |||||||||||
Income from continuing
operations before income taxes |
591,269 | (206,729 | ) | (63,026 | ) | 321,514 | ||||||||||
Income tax expense |
(225,550 | ) | 88,264 | 21,510 | (11) | (115,776 | ) | |||||||||
Income from continuing
operations after income taxes |
365,719 | (118,465 | ) | (41,516 | ) | 205,738 | ||||||||||
Net income attributable to
noncontrolling interests |
(649 | ) | | | (649 | ) | ||||||||||
Income from continuing
operations attributable to
Cablevision Systems Corporation
shareholders |
$ | 365,070 | $ | (118,465 | ) | $ | (41,516 | ) | $ | 205,089 | ||||||
Basic income per share: |
||||||||||||||||
Income from continuing operations
attributable to Cablevision Systems
Corporation shareholders |
$ | 1.25 | $ | 0.70 | ||||||||||||
Basic weighted average common shares
(in thousands) |
293,165 | 293,165 | ||||||||||||||
Diluted income per share: |
||||||||||||||||
Income from continuing operations
attributable to Cablevision Systems
Corporation shareholders |
$ | 1.21 | $ | 0.68 | ||||||||||||
Basic weighted average common shares
(in thousands) |
301,880 | 301,880 | ||||||||||||||
* | See Note B of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
11
CABLEVISION SYSTEMS CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2009
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2009
Distribution | Adjustments | |||||||||||||||
of AMC | Relating to | |||||||||||||||
Networks* | AMC | |||||||||||||||
Historical | (8) | Distribution* | Pro forma | |||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||
Revenues, net |
$ | 6,847,301 | $ | (973,656 | ) | $ | 26,429 | (9) | $ | 5,900,074 | ||||||
Operating expenses: |
||||||||||||||||
Technical and operating (excluding
depreciation, amortization and
impairments shown below) |
2,818,468 | (310,360 | ) | 24,736 | (9) | 2,532,844 | ||||||||||
Selling, general and administrative |
1,643,731 | (313,900 | ) | 1,646 | (9) | 1,389,525 | ||||||||||
58,048 | (10) | |||||||||||||||
Restructuring
expense |
10,728 | (5,146 | ) | | 5,582 | |||||||||||
Depreciation and amortization
(including impairments) |
1,022,912 | (106,504 | ) | | 916,408 | |||||||||||
5,495,839 | (735,910 | ) | 84,430 | 4,844,359 | ||||||||||||
Operating income |
1,351,462 | (237,746 | ) | (58,001 | ) | 1,055,715 | ||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(749,735 | ) | 76,543 | | (673,192 | ) | ||||||||||
Interest income |
4,214 | (836 | ) | | 3,378 | |||||||||||
Gain (loss) on sale of programming
and affiliate interests, net |
2,130 | (2,130 | ) | | | |||||||||||
Loss on investments, net |
(981 | ) | 4 | | (977 | ) | ||||||||||
Gain on equity derivative
contracts, net |
631 | | | 631 | ||||||||||||
Loss on interest rate swap
contracts, net |
(78,868 | ) | 3,237 | | (75,631 | ) | ||||||||||
Loss on extinguishment of debt and
write-off of deferred financing
costs |
(73,457 | ) | | | (73,457 | ) | ||||||||||
Miscellaneous, net |
734 | (192 | ) | | 542 | |||||||||||
(895,332 | ) | 76,626 | | (818,706 | ) | |||||||||||
Income from continuing
operations before income taxes |
456,130 | (161,120 | ) | (58,001 | ) | 237,009 | ||||||||||
Income tax expense |
(206,669 | ) | 71,292 | 22,009 | (11) | (113,368 | ) | |||||||||
Income from continuing
operations after income taxes |
249,461 | (89,828 | ) | (35,992 | ) | 123,641 | ||||||||||
Net loss attributable to
noncontrolling interests |
273 | | | 273 | ||||||||||||
Income from continuing
operations attributable to
Cablevision Systems Corporation
shareholders |
$ | 249,734 | $ | (89,828 | ) | $ | (35,992 | ) | $ | 123,914 | ||||||
Basic income per share: |
||||||||||||||||
Income from continuing operations
attributable to Cablevision Systems
Corporation shareholders |
$ | 0.86 | $ | 0.42 | ||||||||||||
Basic weighted average common shares
(in thousands) |
291,759 | 291,759 | ||||||||||||||
Diluted income per share: |
||||||||||||||||
Income from continuing operations
attributable to Cablevision Systems
Corporation shareholders |
$ | 0.84 | $ | 0.42 | ||||||||||||
Basic weighted average common shares
(in thousands) |
298,444 | 298,444 | ||||||||||||||
* | See Note B of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
CABLEVISION SYSTEMS CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2008
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2008
Distribution | Adjustments | |||||||||||||||
of AMC | Relating to | |||||||||||||||
Networks* | AMC | |||||||||||||||
Historical | (8) | Distribution* | Pro forma | |||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||
Revenues, net |
$ | 6,319,852 | $ | (902,362 | ) | $ | 63,309 | (9) | $ | 5,480,799 | ||||||
Operating expenses: |
||||||||||||||||
Technical and operating (excluding
depreciation, amortization and
impairments shown below) |
2,645,831 | (316,205 | ) | 61,766 | (9) | 2,391,392 | ||||||||||
Selling, general and administrative |
1,504,862 | (307,637 | ) | 1,530 | (9) | 1,252,828 | ||||||||||
54,073 | (10) | |||||||||||||||
Restructuring expense |
49,883 | (46,834 | ) | | 3,049 | |||||||||||
Depreciation and amortization
(including impairments) |
1,441,532 | (108,431 | ) | | 1,333,101 | |||||||||||
5,642,108 | (779,107 | ) | 117,369 | 4,980,370 | ||||||||||||
Operating income |
677,744 | (123,255 | ) | (54,060 | ) | 500,429 | ||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(793,656 | ) | 98,650 | | (695,006 | ) | ||||||||||
Interest income |
8,863 | (1,582 | ) | | 7,281 | |||||||||||
Gain on sale of programming and
affiliate interests, net |
805 | (805 | ) | | | |||||||||||
Loss on investments, net |
(136,414 | ) | 103,238 | | (33,176 | ) | ||||||||||
Gain on equity derivative
contracts, net |
118,219 | (66,447 | ) | | 51,772 | |||||||||||
Loss on interest rate swap
contracts, net |
(205,683 | ) | 2,843 | | (202,840 | ) | ||||||||||
Loss on extinguishment of debt and
write-off of deferred financing
costs |
(2,424 | ) | 2,424 | | | |||||||||||
Miscellaneous, net |
1,264 | (379 | ) | | 885 | |||||||||||
(1,009,026 | ) | 137,942 | | (871,084 | ) | |||||||||||
Loss from continuing
operations before income taxes |
(331,282 | ) | 14,687 | (54,060 | ) | (370,655 | ) | |||||||||
Income tax benefit |
88,944 | 4,021 | 20,239 | (11) | 113,204 | |||||||||||
Loss from continuing
operations after income taxes |
(242,338 | ) | 18,708 | (33,821 | ) | (257,451 | ) | |||||||||
Net loss attributable to
noncontrolling interests |
8,108 | | | 8,108 | ||||||||||||
Loss from continuing
operations attributable to
Cablevision Systems Corporation
shareholders |
$ | (234,230 | ) | $ | 18,708 | $ | (33,821 | ) | $ | (249,343 | ) | |||||
Basic and
diluted loss per share: |
||||||||||||||||
Loss from continuing operations
attributable to Cablevision Systems
Corporation shareholders |
$ | (0.81 | ) | $ | (0.86 | ) | ||||||||||
Basic weighted average common shares
(in thousands) |
290,286 | 290,286 | ||||||||||||||
* | See Note B of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
CSC HOLDINGS, LLC
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2011
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2011
Distribution | Adjustments | |||||||||||||||
of AMC | Relating to | |||||||||||||||
Networks* | AMC | |||||||||||||||
Historical | (8) | Distribution* | Pro forma | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Revenues, net |
$ | 1,921,554 | $ | (272,903 | ) | $ | 6,473 | (9) | $ | 1,655,124 | ||||||
Operating expenses: |
||||||||||||||||
Technical and operating (excluding
depreciation, amortization and
impairments shown below) |
822,466 | (90,411 | ) | 6,090 | (9) | 738,145 | ||||||||||
Selling, general and administrative |
453,114 | (86,921 | ) | 383 | (9) | 374,594 | ||||||||||
8,018 | (10) | |||||||||||||||
Restructuring expense |
137 | 34 | | 171 | ||||||||||||
Depreciation and amortization
(including impairments) |
270,109 | (24,926 | ) | | 245,183 | |||||||||||
1,545,826 | (202,224 | ) | 14,491 | 1,358,093 | ||||||||||||
Operating income |
375,728 | (70,679 | ) | (8,018 | ) | 297,031 | ||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(163,690 | ) | 18,350 | | (145,340 | ) | ||||||||||
Interest income |
15,292 | (457 | ) | | 14,835 | |||||||||||
Gain on sale of programming
interests, net |
161 | (161 | ) | | | |||||||||||
Gain on investments, net |
59,072 | | | 59,072 | ||||||||||||
Loss on equity derivative
contracts, net |
(40,058 | ) | | | (40,058 | ) | ||||||||||
Loss on interest rate swap
contracts, net |
(4,189 | ) | | | (4,189 | ) | ||||||||||
Miscellaneous, net |
289 | (72 | ) | | 217 | |||||||||||
(133,123 | ) | 17,660 | | (115,463 | ) | |||||||||||
Income from continuing operations
before income taxes |
242,605 | (53,019 | ) | (8,018 | ) | 181,568 | ||||||||||
Income tax expense |
(102,569 | ) | 23,201 | 1,389 | (11) | (77,979 | ) | |||||||||
Income from continuing operations
after income taxes |
140,036 | (29,818 | ) | (6,629 | ) | 103,589 | ||||||||||
Net loss attributable to
noncontrolling interests |
21 | | | 21 | ||||||||||||
Income from continuing
operations attributable to CSC
Holdings, LLC sole member |
$ | 140,057 | $ | (29,818 | ) | $ | (6,629 | ) | $ | 103,610 | ||||||
* | See Note B of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
14
CSC HOLDINGS, LLC
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2010
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2010
Distribution | Adjustments | |||||||||||||||
of AMC | Relating to | |||||||||||||||
Networks* | AMC | |||||||||||||||
Historical | (8) | Distribution* | Pro forma | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Revenues, net |
$ | 1,752,401 | $ | (248,372 | ) | $ | 5,762 | (9) | $ | 1,509,791 | ||||||
Operating expenses: |
||||||||||||||||
Technical and operating (excluding
depreciation, amortization and
impairments shown below) |
737,596 | (82,425 | ) | 5,525 | (9) | 660,696 | ||||||||||
Selling, general and administrative |
418,048 | (78,444 | ) | 244 | (9) | 355,176 | ||||||||||
15,328 | (10) | |||||||||||||||
Restructuring expense (credits) |
(209 | ) | 212 | | 3 | |||||||||||
Depreciation and amortization
(including impairments) |
241,893 | (26,690 | ) | | 215,203 | |||||||||||
1,397,328 | (187,347 | ) | 21,097 | 1,231,078 | ||||||||||||
Operating income |
355,073 | (61,025 | ) | (15,335 | ) | 278,713 | ||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(142,535 | ) | 19,666 | | (122,869 | ) | ||||||||||
Interest income |
16,337 | (550 | ) | | 15,787 | |||||||||||
Gain on sale of programming
interests, net |
102 | (102 | ) | | | |||||||||||
Gain on investments, net |
42,292 | | | 42,292 | ||||||||||||
Loss on equity derivative
contracts, net |
(35,033 | ) | | | (35,033 | ) | ||||||||||
Loss on interest rate swap
contracts, net |
(35,109 | ) | | | (35,109 | ) | ||||||||||
Miscellaneous, net |
373 | (26 | ) | | 347 | |||||||||||
(153,573 | ) | 18,988 | | (134,585 | ) | |||||||||||
Income from continuing
operations before income taxes |
201,500 | (42,037 | ) | (15,335 | ) | 144,128 | ||||||||||
Income tax expense |
(86,515 | ) | 17,948 | 5,151 | (11) | (63,416 | ) | |||||||||
Income from continuing
operations after income taxes |
114,985 | (24,089 | ) | (10,184 | ) | 80,712 | ||||||||||
Net income attributable to
noncontrolling interests |
(28 | ) | | | (28 | ) | ||||||||||
Income from continuing
operations attributable to CSC
Holdings, LLC sole member |
$ | 114,957 | $ | (24,089 | ) | $ | (10,184 | ) | $ | 80,684 | ||||||
* | See Note B of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
15
CSC HOLDINGS, LLC
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2010
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2010
Distribution | Adjustments | |||||||||||||||
of AMC | Relating to | |||||||||||||||
Networks* | AMC | |||||||||||||||
Historical | (8) | Distribution* | Pro forma | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Revenues, net |
$ | 7,231,249 | $ | (1,078,300 | ) | $ | 24,626 | (9) | $ | 6,177,575 | ||||||
Operating expenses: |
||||||||||||||||
Technical and operating (excluding
depreciation, amortization and
impairments shown below) |
3,007,883 | (366,093 | ) | 21,960 | (9) | 2,663,750 | ||||||||||
Selling, general and administrative |
1,703,173 | (328,134 | ) | 2,632 | (9) | 1,440,731 | ||||||||||
63,060 | (10) | |||||||||||||||
Restructuring credits |
(2,276 | ) | 2,218 | | (58 | ) | ||||||||||
Depreciation and amortization
(including impairments) |
993,547 | (106,455 | ) | | 887,092 | |||||||||||
5,702,327 | (798,464 | ) | 87,652 | 4,991,515 | ||||||||||||
Operating income |
1,528,922 | (279,836 | ) | (63,026 | ) | 1,186,060 | ||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(607,010 | ) | 75,800 | | (531,210 | ) | ||||||||||
Interest income |
63,260 | (2,388 | ) | | 60,872 | |||||||||||
Gain on sale of programming and
affiliate interests, net |
2,518 | (467 | ) | | 2,051 | |||||||||||
Gain on investments, net |
109,810 | | | 109,810 | ||||||||||||
Loss on equity derivative
contracts, net |
(72,044 | ) | | | (72,044 | ) | ||||||||||
Loss on interest rate swap
contracts, net |
(85,013 | ) | | | (85,013 | ) | ||||||||||
Miscellaneous, net |
1,274 | 162 | | 1,436 | ||||||||||||
(587,205 | ) | 73,107 | | (514,098 | ) | |||||||||||
Income from continuing
operations before income taxes |
941,717 | (206,729 | ) | (63,026 | ) | 671,962 | ||||||||||
Income tax expense |
(362,669 | ) | 88,264 | 19,512 | (11) | (254,893 | ) | |||||||||
Income from continuing
operations after income taxes |
579,048 | (118,465 | ) | (43,514 | ) | 417,069 | ||||||||||
Net income attributable to
noncontrolling interests |
(649 | ) | | | (649 | ) | ||||||||||
Income from continuing
operations attributable to CSC
Holdings, LLC sole member |
$ | 578,399 | $ | (118,465 | ) | $ | (43,514 | ) | $ | 416,420 | ||||||
* | See Note B of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
16
CSC HOLDINGS, LLC
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2009
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2009
Distribution | Adjustments | |||||||||||||||
of AMC | Relating to | |||||||||||||||
Networks* | AMC | |||||||||||||||
Historical | (8) | Distribution* | Pro forma | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Revenues, net |
$ | 6,847,301 | $ | (973,656 | ) | $ | 26,429 | (9) | $ | 5,900,074 | ||||||
Operating expenses: |
||||||||||||||||
Technical and operating (excluding
depreciation, amortization and
impairments shown below) |
2,818,468 | (310,360 | ) | 24,736 | (9) | 2,532,844 | ||||||||||
Selling, general and administrative |
1,643,731 | (313,900 | ) | 1,646 | (9) | 1,389,525 | ||||||||||
58,048 | (10) | |||||||||||||||
Restructuring expense |
10,728 | (5,146 | ) | | 5,582 | |||||||||||
Depreciation and amortization
(including impairments) |
1,022,912 | (106,504 | ) | | 916,408 | |||||||||||
5,495,839 | (735,910 | ) | 84,430 | 4,844,359 | ||||||||||||
Operating income |
1,351,462 | (237,746 | ) | (58,001 | ) | 1,055,715 | ||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(635,615 | ) | 76,543 | | (559,072 | ) | ||||||||||
Interest income |
66,236 | (836 | ) | | 65,400 | |||||||||||
Gain (loss) on sale of programming
and affiliate interests, net |
2,130 | (2,130 | ) | | | |||||||||||
Loss on investments, net |
(981 | ) | 4 | | (977 | ) | ||||||||||
Gain on equity derivative
contracts, net |
631 | | | 631 | ||||||||||||
Loss on interest rate swap
contracts, net |
(78,868 | ) | 3,237 | | (75,631 | ) | ||||||||||
Loss on extinguishment of debt and
write-off of deferred financing
costs |
(72,870 | ) | | | (72,870 | ) | ||||||||||
Miscellaneous, net |
734 | (192 | ) | | 542 | |||||||||||
(718,603 | ) | 76,626 | | (641,977 | ) | |||||||||||
Income from continuing
operations before income taxes |
632,859 | (161,120 | ) | (58,001 | ) | 413,738 | ||||||||||
Income tax expense |
(277,747 | ) | 71,292 | 21,885 | (11) | (184,570 | ) | |||||||||
Income from continuing
operations after income taxes |
355,112 | (89,828 | ) | (36,116 | ) | 229,168 | ||||||||||
Net loss attributable to
noncontrolling interests |
273 | | | 273 | ||||||||||||
Income from continuing
operations attributable to CSC
Holdings, LLC sole member |
$ | 355,385 | $ | (89,828 | ) | $ | (36,116 | ) | $ | 229,441 | ||||||
* | See Note B of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
17
CSC HOLDINGS, LLC
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2008
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2008
Distribution | Adjustments | |||||||||||||||
of AMC | Relating to | |||||||||||||||
Networks* | AMC | |||||||||||||||
Historical | (8) | Distribution* | Pro forma | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Revenues, net |
$ | 6,319,852 | $ | (902,362 | ) | $ | 63,309 | (9) | $ | 5,480,799 | ||||||
Operating expenses: |
||||||||||||||||
Technical and operating (excluding
depreciation, amortization and
impairments shown below) |
2,645,831 | (316,205 | ) | 61,766 | (9) | 2,391,392 | ||||||||||
Selling, general and administrative |
1,504,862 | (307,637 | ) | 1,530 | (9) | 1,252,828 | ||||||||||
54,073 | (10) | |||||||||||||||
Restructuring expense |
49,883 | (46,834 | ) | | 3,049 | |||||||||||
Depreciation and amortization
(including impairments) |
1,441,532 | (108,431 | ) | | 1,333,101 | |||||||||||
5,642,108 | (779,107 | ) | 117,369 | 4,980,370 | ||||||||||||
Operating income |
677,744 | (123,255 | ) | (54,060 | ) | 500,429 | ||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(667,782 | ) | 98,650 | | (569,132 | ) | ||||||||||
Interest income |
34,427 | (1,582 | ) | | 32,845 | |||||||||||
Gain on sale of programming and
affiliate interests, net |
805 | (805 | ) | | | |||||||||||
Loss on investments, net |
(136,414 | ) | 103,238 | | (33,176 | ) | ||||||||||
Gain on equity derivative
contracts, net |
118,219 | (66,447 | ) | | 51,772 | |||||||||||
Loss on interest rate swap
contracts, net |
(205,683 | ) | 2,843 | | (202,840 | ) | ||||||||||
Loss on extinguishment of debt and
write-off of deferred financing
costs |
(2,424 | ) | 2,424 | | | |||||||||||
Miscellaneous, net |
1,260 | (379 | ) | | 881 | |||||||||||
(857,592 | ) | 137,942 | | (719,650 | ) | |||||||||||
Loss from continuing
operations before income taxes |
(179,848 | ) | 14,687 | (54,060 | ) | (219,221 | ) | |||||||||
Income tax benefit |
29,299 | 4,021 | 20,375 | (11) | 53,695 | |||||||||||
Loss from continuing
operations after income taxes |
(150,549 | ) | 18,708 | (33,685 | ) | (165,526 | ) | |||||||||
Net loss attributable to
noncontrolling interests |
8,108 | | | 8,108 | ||||||||||||
Loss from continuing
operations attributable to CSC
Holdings, LLC sole member |
$ | (142,441 | ) | $ | 18,708 | $ | (33,685 | ) | $ | (157,418 | ) | |||||
* | See Note B of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
Note B Notes to Unaudited Pro Forma Consolidated Statements of Operations for the Three Months Ended March 31, 2011 and 2010 and for the Years Ended December 31, 2010, 2009 and 2008 (dollars in thousands) | ||
(8) | Distribution of AMC Networks. Represents the condensed consolidated statements of operations of AMC Networks and subsidiaries for the three months ended March 31, 2011 and 2010 and for the years ended December 31, 2010, 2009 and 2008, respectively. | |
(9) | Transactions with AMC Networks. Adjustments include (i) normal recurring intercompany transactions between the Companys subsidiaries and AMC Networks that prior to the AMC Distribution were eliminated in consolidation (primarily revenues recognized by AMC Networks, including VOOM HD for the period January 1, 2008 through January 2009, from the sale of programming to the Companys Telecommunications Services segment and an equivalent amount of programming expense recognized by the Companys Telecommunications Services segment) which as a result of the AMC Distribution would no longer be eliminated in consolidation. | |
(10) | Selling, general and administrative expense. Represents the actual corporate overhead and costs related to corporate employees participation in long-term incentive plans and employee stock-based compensations plans historically allocated to AMC Networks that would remain with the Company after the AMC Distribution. This adjustment includes the elimination of the management fee charged to certain subsidiaries of AMC Networks by the Company, which was recorded by the Company as a contra-expense and which will no longer be charged to AMC Networks after the AMC Distribution. In addition, for the three months ended March 31, 2011 and the year ended December 31, 2010, the adjustment includes the reclassification to discontinued operations of $8,021 and $1,466, respectively, of transactions costs related to the AMC Distribution. | |
(11) | Income tax benefit (expense). Represents the (i) income tax benefit (expense) impact related to the pro forma adjustments discussed above, and (ii) an adjustment related to the impact of the AMC Distribution on the Companys effective income tax rate. |
19