Attached files
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| 8-K - CABLEVISION SYSTEMS CORPORATION 8-K 2-28-2012 - CSC HOLDINGS LLC | form8k.htm |
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FOR IMMEDIATE RELEASE
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CABLEVISION SYSTEMS CORPORATION
REPORTS FOURTH QUARTER AND FULL YEAR 2011 RESULTS
Bethpage, N.Y., February 28, 2012 - Cablevision Systems Corporation (NYSE:CVC) today reported financial results for the fourth quarter and full year ended December 31, 2011.
Fourth quarter consolidated net revenues grew 7.3% to $1.691 billion, consolidated adjusted operating cash flow (“AOCF”)1 grew 21.0% to $626.2 million and consolidated operating income grew 28.3% to $346.2 million, all compared to the prior year period. Footnote 2 on page 4 of this release details certain items affecting the comparability of our results for 2011 and 2010. Excluding these items, consolidated net revenues, AOCF and operating income would have increased 1.0%, 0.8% and 3.6%, respectively, all compared to the prior year period.
For full year 2011, consolidated net revenues increased 8.5% to $6.701 billion, consolidated AOCF grew 8.1% to $2.295 billion and consolidated operating income grew 3.6% to $1.229 billion, all compared to 2010. Footnote 2 on page 4 of this release details certain items affecting the comparability of our results for 2011 and 2010. Excluding these items, net revenue would have grown 1.2%, consolidated AOCF would have been essentially flat and operating income would have increased 2.1%, compared to the prior full year period.
Operating highlights for the fourth quarter and full year 2011 include:
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Combined Average Monthly Revenue per Basic Video Customer (“RPS”) of $154.10 in the fourth quarter of 2011 (including Bresnan), up $2.39 or 1.6% in quarter.
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High-Speed Data and Voice customer additions of 20,300 and 30,500, respectively, in the fourth quarter of 2011.
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Year to date Consolidated Free Cash Flow from Continuing Operations1 of $582.9 million.
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Cablevision President and CEO James L. Dolan commented: "2011 was an important year for Cablevision as it marked the culmination of several multi-year initiatives to enhance shareholder value. Those efforts have included spinning off MSG and AMC, completing the Bresnan acquisition, paying quarterly cash dividends, and actively conducting a share buyback program. For the fourth quarter, despite modest video subscriber losses, our cable operations continued to report improved subscriber metrics in both high-speed data and voice customers. The company also generated healthy free cash flow. We remain confident in the strength of our underlying business and in our ability to deliver industry-leading products. Looking ahead, we will continue to improve on those offerings while we remain focused on enhancing shareholder returns and building the company for the long term," concluded Mr. Dolan.
Page 1 of 12
Telecommunications Services – Cable Television and Lightpath
Telecommunications Services includes Cable Television – Cablevision’s video, high-speed data, and voice residential and commercial services offered over its cable infrastructure -- and its “Optimum Lightpath” branded commercial data and voice services.
Telecommunications Services net revenues for the fourth quarter 2011 rose 8.3% to $1.580 billion, AOCF increased 17.2% to $672.1 million and operating income increased 21.0% to $427.2 million, all compared to the prior year period. Excluding the impact of the items highlighted in the chart on page 4 of this release, revenue growth would have increased 1.5%, AOCF would have decreased 1.1% and operating income would have increased 2.3%, compared to the prior year period.
Full year 2011 net revenues rose 9.5% to $6.280 billion, AOCF increased 7.0% to $2.496 billion, and operating income increased 3.2% to $1.521 billion, all as compared to the prior year period. Excluding the impact of the items highlighted in the chart on page 4 of this release, revenue would have grown 1.7% while AOCF would have been essentially flat and operating income would have increased 2.0%, compared to the prior year period.
Cable Television
Cable Television fourth quarter 2011 net revenues increased 8.3% to $1.506 billion, AOCF increased 16.8% to $635.7 million and operating income increased 19.0% to $411.0 million, all compared to the prior year period. The increase in revenue compared to the prior year period was due primarily to the addition of Bresnan in the results for the fourth quarter 2011. Excluding the impact of the items highlighted on page 4, revenue would have increased 1.2%, AOCF would have decreased 1.8% and operating income would have increased 1.1%, all compared to the prior year period. Fourth quarter 2011 AOCF results reflect the revenue growth, combined with higher expenses, primarily programming costs, compared to the prior year period.
The following table illustrates the change in the Cable Television customer base during the fourth quarter of 2011:
| Customer Data | ||||||||||||
| (rounded to nearest thousand) | Total
September 30, 2011
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Net Gain/(Loss)(a)
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Total
December 31, 2011
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Total Customers(b)
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3,622 | (11 | ) | 3,611 | ||||||||
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Video
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3,264 | (14 | ) | 3,250 | ||||||||
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High-Speed Data
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2,945 | 20 | 2,965 | |||||||||
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Voice Customers
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2,326 | 31 | 2,357 | |||||||||
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Serviceable Passings
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5,567 | 17 | 5,584 | |||||||||
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(a)
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Includes the addition of three thousand total customers, one thousand video customers, seven thousand high-speed data customers, eight thousand voice customers, and two thousand serviceable passings from Bresnan in the fourth quarter of 2011.
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(b)
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Total customers are defined as the number of households/businesses that receive at least one of the Company's services at Cable Television.
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Optimum Lightpath
For fourth quarter 2011, Lightpath net revenues increased 9.6% to $79.1 million, AOCF increased 24.3% to $36.5 million and operating income increased 106.3% to $16.1 million, each as compared to the prior year period. The improved results were driven primarily by a 12.7% increase in revenue from Ethernet services, offset in part by higher operating expenses to support the increase in Ethernet installations. Excluding certain items referenced in the chart on page 4, AOCF and operating income would have grown 12.1% and 54.6%, respectively.
Page 2 of 12
Other
Other primarily consists of Newsday, News 12 Networks, MSG Varsity, Clearview Cinemas, Cablevision Media Sales Corporation (formerly Rainbow Advertising Sales Corporation (“RASCO”)) and unallocated corporate general and administrative costs.
Fourth quarter 2011 net revenues decreased 5.5% to $116.9 million, AOCF deficit improved by 18.3% to a deficit of $45.9 million and operating loss improved 2.7% to a loss of $80.9 million all compared to the prior year period. Revenue was mainly impacted by the continued decline of advertising revenues at Newsday. Excluding the impact of certain items highlighted in the chart on page 4, revenue would have decreased 5.4% while the AOCF deficit and operating loss would have improved 19.3% and 2.3%, respectively. Improvement in AOCF deficit was due primarily to lower corporate costs offset by Newsday.
Full year 2011 net revenues decreased 4.7% to $443.9 million, AOCF deficit improved 3.3% to a deficit of $201.4 million and operating loss increased 1.5% to a loss of $292.0 million. Excluding the impact of certain items highlighted in the chart on page 4, revenue would have decreased 4.6%, AOCF would have improved 3.6% and operating loss would have increased 1.5%.
Other Matters
RETURN OF CAPITAL
During the fourth quarter of 2011, Cablevision repurchased approximately 4.6 million shares of its Class A common stock for approximately $67.4 million.
On February 22, 2012, the Board of Directors of Cablevision declared a quarterly dividend of $0.15 per share on each outstanding share of both its Cablevision NY Group Class A Stock and its Cablevision NY Group Class B Stock. This quarterly dividend is payable on March 30, 2012 to shareholders of record at the close of business on March 9, 2012.
Page 3 of 12
NOTES:
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1.
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See definition of adjusted operating cash flow (“AOCF”) and Consolidated Free Cash Flow from Continuing Operations included in the discussion of non-GAAP financial measures on page 5 of this earnings release.
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2.
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The following charts highlight certain items affecting comparability between 2011 and 2010 results. This information should be read in conjunction with the reconciliation of AOCF to net income on page 6 of this release:
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| Revenues, Net |
CableTV
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Telecom
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Other
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Total Co.
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| Q4 |
FY
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Q4 |
FY
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Q4 |
FY
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Q4 |
FY
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2011 reported revenue
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1,505.7 | 5,988.2 | 1,580.1 | 6,279.7 | 116.9 | 443.9 | 1,691.3 | 6,700.8 | ||||||||||||||||||||||||
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Bresnan
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(122.1 | ) | (471.7 | ) | (122.1 | ) | (471.7 | ) | - | - | (122.1 | ) | (471.7 | ) | ||||||||||||||||||
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Storm costs
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0.5 | 0.7 | 0.5 | 0.7 | 0.1 | 0.5 | 0.6 | 1.2 | ||||||||||||||||||||||||
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Adjusted 2011 Revenue
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1,384.1 | 5,517.3 | 1,458.5 | 5,808.8 | 117.0 | 444.4 | 1,569.8 | 6,230.4 | ||||||||||||||||||||||||
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2010 reported revenue
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1,389.7 | 5,470.6 | 1,458.9 | 5,735.5 | 123.8 | 466.0 | 1,576.8 | 6,177.6 | ||||||||||||||||||||||||
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Bresnan
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(22.1 | ) | (22.1 | ) | (22.1 | ) | (22.1 | ) | - | - | (22.1 | ) | (22.1 | ) | ||||||||||||||||||
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Adjusted 2010 Revenue
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1,367.6 | 5,448.5 | 1,436.8 | 5,713.4 | 123.8 | 446.0 | 1,554.6 | 6,155.4 | ||||||||||||||||||||||||
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Reported growth (%)
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8.3 | % | 9.5 | % | 8.3 | % | 9.5 | % | (5.5 | )% | (4.7 | )% | 7.3 | % | 8.5 | % | ||||||||||||||||
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Adjusted growth (%)
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1.2 | % | 1.3 | % | 1.5 | % | 1.7 | % | (5.4 | )% | (4.6 | )% | 1.0 | % | 1.2 | % | ||||||||||||||||
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AOCF
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CableTV
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Telecom
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Other
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Total Co.
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| Q4 |
FY
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Q4 |
FY
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Q4 |
FY
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Q4 |
FY
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2011 reported AOCF
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635.7 | 2,360.9 | 672.1 | 2,495.9 | (45.9 | ) | (201.4 | ) | 626.2 | 2,294.5 | ||||||||||||||||||||||
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Bresnan
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(38.0 | ) | (145.6 | ) | (38.0 | ) | (145.6 | ) | - | - | (38.0 | ) | (145.6 | ) | ||||||||||||||||||
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Storm costs
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4.9 | 20.8 | 4.9 | 20.8 | 0.1 | 0.3 | 5.0 | 21.1 | ||||||||||||||||||||||||
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Executive separation costs(a)
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3.7 | 3.7 | 3.2 | 3.2 | 10.7 | 10.7 | 13.9 | 13.9 | ||||||||||||||||||||||||
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Compensation adjustment(b)
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(22.3 | ) | (22.3 | ) | (25.4 | ) | (25.4 | ) | (10.2 | ) | (10.2 | ) | (35.6 | ) | (35.6 | ) | ||||||||||||||||
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Programming adjustment(c)
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(42.9 | ) | (42.9 | ) | (42.9 | ) | (42.9 | ) | - | - | (42.9 | ) | (42.9 | ) | ||||||||||||||||||
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2011 AOCF excluding items
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541.1 | 2,174.6 | 574.0 | 2,306.1 | (45.4 | ) | (200.7 | ) | 528.7 | 2,105.4 | ||||||||||||||||||||||
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2010 reported AOCF
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544.3 | 2,219.9 | 573.7 | 2,331.6 | (56.2 | ) | (208.3 | ) | 517.5 | 2,123.4 | ||||||||||||||||||||||
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Bresnan
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7.0 | 7.2 | 7.0 | 7.2 | - | - | 7.0 | 7.2 | ||||||||||||||||||||||||
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Programming settlement(d)
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- | (23.0 | ) | - | (23.0 | ) | - | - | - | (23.0 | ) | |||||||||||||||||||||
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2010 AOCF excluding items
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551.3 | 2,204.2 | 580.6 | 2,315.9 | (56.2 | ) | (208.3 | ) | 524.4 | 2,107.6 | ||||||||||||||||||||||
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Reported growth (%)
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16.8 | % | 6.3 | % | 17.2 | % | 7.0 | % | 18.3 | % | 3.3 | % | 21.0 | % | 8.1 | % | ||||||||||||||||
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Adjusted growth (%)
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(1.8 | )% | (1.3 | )% | (1.1 | )% | (0.4 | )% | 19.3 | % | 3.6 | % | 0.8 | % | (0.1 | )% | ||||||||||||||||
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Operating Income
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CableTV
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Telecom
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Other
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Total Co
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| Q4 |
FY
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Q4 |
FY
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Q4 |
FY
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Q4 |
FY
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2011 reported Op Inc
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411.0 | 1,471.5 | 427.2 | 1,520.6 | (80.9 | ) | (292.0 | ) | 346.2 | 1,228.7 | ||||||||||||||||||||||
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Bresnan
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9.2 | 18.8 | 9.2 | 18.8 | - | - | 9.2 | 18.8 | ||||||||||||||||||||||||
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Storm costs
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4.9 | 20.8 | 4.9 | 20.8 | 0.1 | 0.3 | 5.0 | 21.1 | ||||||||||||||||||||||||
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Executive separation costs(a)
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3.2 | 3.2 | 2.2 | 2.2 | 9.8 | 9.8 | 12.0 | 12.0 | ||||||||||||||||||||||||
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Compensation adjustment(b)
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(22.3 | ) | (22.3 | ) | (25.4 | ) | (25.4 | ) | (10.2 | ) | (10.2 | ) | (35.6 | ) | (35.6 | ) | ||||||||||||||||
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Programming adjustment(c)
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(42.9 | ) | (42.9 | ) | (42.9 | ) | (42.9 | ) | - | - | (42.9 | ) | (42.9 | ) | ||||||||||||||||||
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Adjusted 2011 Op Inc
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363.1 | 1,449.1 | 375.2 | 1,494.2 | (81.2 | ) | (292.1 | ) | 294.0 | 1,202.1 | ||||||||||||||||||||||
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2010 reported Op Inc
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345.3 | 1,449.2 | 353.1 | 1,473.7 | (83.2 | ) | (287.7 | ) | 269.9 | 1,186.1 | ||||||||||||||||||||||
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Bresnan
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13.8 | 14.0 | 13.8 | 14.0 | - | - | 13.8 | 14.0 | ||||||||||||||||||||||||
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Programming settlement(d)
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- | (23.0 | ) | - | (23.0 | ) | - | - | - | (23.0 | ) | |||||||||||||||||||||
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Adjusted 2010 Op Inc
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359.1 | 1,440.2 | 366.9 | 1,464.7 | (83.2 | ) | (287.7 | ) | 283.7 | 1,177.1 | ||||||||||||||||||||||
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Reported growth (%)
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19.0 | % | 1.5 | % | 21.0 | % | 3.2 | % | 2.7 | % | (1.5 | )% | 28.3 | % | 3.6 | % | ||||||||||||||||
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Adjusted growth (%)
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1.1 | % | 0.6 | % | 2.3 | % | 2.0 | % | 2.3 | % | (1.5 | )% | 3.6 | % | 2.1 | % | ||||||||||||||||
Note: Charts do not foot due to rounding.
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(a)
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Related to certain executive departures in the fourth quarter of 2011.
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(b)
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Reflects accrual reversals and reductions in the fourth quarter of 2011 related to certain outstanding long term incentive plan awards.
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(c)
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Reflects adjustment to estimated programming costs relating to prior periods, following renewals of programming contracts.
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(d)
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Reflects a settlement of a contractual fee matter recorded in the second quarter of 2010.
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Page 4 of 12
Non-GAAP Financial Measures
We define adjusted operating cash flow (“AOCF”), which is a non-GAAP financial measure, as operating income (loss) before depreciation and amortization (including impairments), excluding share-based compensation expense or benefit and restructuring charges or credits. Because it is based upon operating income (loss), AOCF also excludes interest expense (including cash interest expense) and other non-operating income and expense items. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the various operating units of our business without regard to the distortive effects of fluctuating stock prices in the case of stock appreciation rights and, in the case of restricted shares, restricted stock units and stock options, the expense associated with an award that is not expected to be made in cash.
We present AOCF as a measure of our ability to service our debt and make continuing investments, including in our capital infrastructure. We believe AOCF is an appropriate measure for evaluating the operating performance of our business segments and the company on a consolidated basis. AOCF and similar measures with similar titles are common performance measures used by investors, analysts and peers to compare performance in our industry. Internally, we use net revenues and AOCF measures as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. AOCF should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Since AOCF is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of AOCF to operating income (loss), please see page 6 of this release.
We define Consolidated Free Cash Flow from Continuing Operations, (“Free Cash Flow”), which is a non-GAAP financial measure, as net cash from operating activities (continuing operations) less capital expenditures (continuing operations), both of which are reported in our Consolidated Statement of Cash Flows. Net cash from operating activities excludes net cash from operating activities of our discontinued operations. We believe the most comparable GAAP financial measure of our liquidity is net cash from operating activities. We believe that Free Cash Flow is useful as an indicator of our overall liquidity, as the amount of Free Cash Flow generated in any period is representative of cash that is available for debt repayment and other discretionary and non-discretionary cash uses. It is also one of several indicators of our ability to make investments and/or return capital to our shareholders. We also believe that Free Cash Flow is one of several benchmarks used by analysts and investors who follow our industry for comparison of our liquidity with other companies in our industry, although our measure of Free Cash Flow may not be directly comparable to similar measures reported by other companies.
In addition, in the chart on page 4, the Company has provided details of certain items affecting the comparability of Revenue, net, AOCF and operating income for the three months and year ended December 31, 2011 to that of the comparable periods in 2010. Management believes that this additional information, like AOCF representing non-GAAP financial measures, will assist analysts, investors and others in evaluating the Company’s performance.
COMPANY DESCRIPTION
Cablevision Systems Corporation is one of the nation's leading media and telecommunications companies. In addition to delivering its Optimum-branded cable, Internet, and voice offerings throughout the New York area, the company owns and operates cable systems serving homes in four Western states. Cablevision’s local media properties include News 12 Networks, MSG Varsity and Newsday Media Group. Cablevision also owns and operates Clearview Cinemas. Additional information about Cablevision is available on the Web at www.cablevision.com.
This earnings release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act 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 industries in which it operates and the factors described in the company’s filings with the Securities and Exchange Commission, including the sections entitled "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The company disclaims any obligation to update any forward-looking statements contained herein.
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Contacts:
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Charles Schueler
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Patricia Armstrong
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Executive Vice President
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Senior Vice President
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Media and Community Relations
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Investor Relations
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(516) 803-1013
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(516) 803-2270
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Cablevision’s Website: www.cablevision.com
The conference call will be webcast live today at 10:00 a.m. ET
Conference call dial-in number is (888) 694-4641/ Conference ID Number 41236255/ Conference call replay number (855) 859-2056/ Conference ID Number 41236255 until March 6, 2012
Page 5 of 12
CABLEVISION SYSTEMS CORPORATION
CONDENSED CONSOLIDATED OPERATIONS DATA AND RECONCILIATION
(Dollars in thousands, except per share data)
(Unaudited)
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Three Months Ended
December 31,
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Twelve Months Ended
December 31,
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2011
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2010(a)
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2011(a)
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2010(a)
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Revenues, net
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$ | 1,691,253 | $ | 1,576,754 | $ | 6,700,848 | $ | 6,177,575 | ||||||||
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Adjusted operating cash flow
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$ | 626,224 | $ | 517,468 | $ | 2,294,500 | $ | 2,123,385 | ||||||||
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Share-based compensation expense
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(8,327 | ) | (12,831 | ) | (44,536 | ) | (50,289 | ) | ||||||||
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Restructuring (expense) credit
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(6,019 | ) | 230 | (6,311 | ) | 58 | ||||||||||
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Operating income before depreciation and amortization
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611,878 | 504,867 | 2,243,653 | 2,073,154 | ||||||||||||
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Depreciation and amortization (including impairments)
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265,641 | 234,947 | 1,014,974 | 887,092 | ||||||||||||
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Operating income
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346,237 | 269,920 | 1,228,679 | 1,186,062 | ||||||||||||
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Other income (expense):
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Interest expense, net
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(184,029 | ) | (181,922 | ) | (745,706 | ) | (710,751 | ) | ||||||||
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Gain on sale of affiliate interests, net
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683 | 2,051 | 683 | 2,051 | ||||||||||||
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Gain on investments, net
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60,362 | 83,557 | 37,384 | 109,813 | ||||||||||||
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Gain (loss) on equity derivative contracts, net
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(37,402 | ) | (62,243 | ) | 1,454 | (72,044 | ) | |||||||||
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Gain (loss) on interest rate swap contracts, net
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540 | (3,212 | ) | (7,973 | ) | (85,013 | ) | |||||||||
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Loss on extinguishment of debt and write-off of deferred financing costs
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(89,665 | ) | - | (92,692 | ) | (110,049 | ) | |||||||||
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Miscellaneous, net
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535 | 500 | 1,265 | 1,447 | ||||||||||||
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Income from continuing operations before income taxes
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97,261 | 108,651 | 423,094 | 321,516 | ||||||||||||
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Income tax expense
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(36,760 | ) | (34,898 | ) | (184,436 | ) | (113,767 | ) | ||||||||
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Income from continuing operations
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60,501 | 73,753 | 238,658 | 207,749 | ||||||||||||
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Income from discontinued operations, net of income taxes
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- | 40,212 | 53,623 | 153,848 | ||||||||||||
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Net income
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60,501 | 113,965 | 292,281 | 361,597 | ||||||||||||
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Net loss (income) attributable to noncontrolling interests
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128 | (102 | ) | (424 | ) | (649 | ) | |||||||||
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Net income attributable to Cablevision Systems Corporation stockholders
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$ | 60,629 | $ | 113,863 | $ | 291,857 | $ | 360,948 | ||||||||
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Basic net income per share attributable to Cablevision Systems Corporation stockholders:
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Income from continuing operations
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$ | 0.22 | $ | 0.25 | $ | 0.86 | $ | 0.71 | ||||||||
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Income from discontinued operations
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$ | - | $ | 0.14 | $ | 0.19 | $ | 0.52 | ||||||||
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Net income
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$ | 0.22 | $ | 0.39 | $ | 1.06 | $ | 1.23 | ||||||||
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Basic weighted average common shares (in thousands)
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270,049 | 289,387 | 276,369 | 293,165 | ||||||||||||
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Diluted net income per share attributable to Cablevision Systems Corporation stockholders:
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Income from continuing operations
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$ | 0.22 | $ | 0.25 | $ | 0.84 | $ | 0.69 | ||||||||
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Income from discontinued operations
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$ | - | $ | 0.13 | $ | 0.19 | $ | 0.51 | ||||||||
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Net income
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$ | 0.22 | $ | 0.38 | $ | 1.02 | $ | 1.20 | ||||||||
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Diluted weighted average common shares (in thousands)
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278,275 | 298,681 | 284,904 | 301,880 | ||||||||||||
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Amounts attributable to Cablevision Systems Corporation stockholders:
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Income from continuing operations, net of income taxes
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$ | 60,629 | $ | 73,651 | $ | 238,234 | $ | 207,100 | ||||||||
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Income from discontinued operations, net of income taxes
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- | 40,212 | 53,623 | 153,848 | ||||||||||||
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Net income
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$ | 60,629 | $ | 113,863 | $ | 291,857 | $ | 360,948 | ||||||||
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(a)
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Operating results of AMC Networks Inc. through June 30, 2011 and The Madison Square Garden Company through February 9, 2010 are included in discontinued operations.
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Page 6 of 12
CABLEVISION SYSTEMS CORPORATION
CONDENSED CONSOLIDATED OPERATIONS DATA AND RECONCILIATION (Cont’d)
(Dollars in thousands, except per share data)
(Unaudited)
ADJUSTMENTS TO RECONCILE ADJUSTED OPERATING CASH FLOW TO
OPERATING INCOME (LOSS)
The following is a description of the adjustments to operating income (loss) in arriving at adjusted operating cash flow included in this earnings release:
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·
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Depreciation and amortization (including impairments). This adjustment eliminates depreciation and amortization and impairments of long-lived assets in all periods.
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·
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Restructuring credit (expense). This adjustment eliminates the expense or credit associated with restructuring activities related to the elimination of positions, facility realignment, asset impairments and other related activities in all periods.
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|
|
·
|
Share-based compensation benefit (expense). This adjustment eliminates the compensation benefit (expense) relating to stock options, stock appreciation rights, restricted stock, and restricted stock units granted under our employee stock plans and non-employee director plans in all periods.
|
|
Twelve Months Ended December 31,
|
||||||||
|
2011(a)
|
2010(a)
|
|||||||
|
CONSOLIDATED FREE CASH FLOW FROM CONTINUING OPERATIONS(b)
|
||||||||
|
Net cash provided by operating activities(c)
|
$ | 1,397,729 | $ | 1,359,618 | ||||
|
Less: capital expenditures(d)
|
(814,807 | ) | (823,245 | ) | ||||
|
Consolidated free cash flow from continuing operations
|
$ | 582,922 | $ | 536,373 | ||||
|
(a)
|
Operating results of AMC Networks Inc. and The Madison Square Garden Company, through the date of their respective distributions, are included in discontinued operations.
|
|
(b)
|
See non-GAAP financial measures on page 5 of this release for a definition and discussion of Free Cash Flow from continuing operations.
|
|
(c)
|
The level of net cash provided by operating activities will continue to depend on a number of variables in addition to our operating performance, including the amount and timing of our interest payments and other working capital items.
|
|
(d)
|
See page 12 of this release for additional details relating to capital expenditures.
|
Page 7 of 12
CABLEVISION SYSTEMS CORPORATION
CONSOLIDATED RESULTS FROM CONTINUING OPERATIONS
(Dollars in thousands)
(Unaudited)
REVENUES, NET
|
Three Months Ended
December 31,
|
%
|
|||||||||||
|
2011
|
2010(a)
|
Change
|
||||||||||
|
Cable Television(b)
|
$ | 1,505,733 | $ | 1,389,718 | 8.3 | % | ||||||
|
Optimum Lightpath
|
79,129 | 72,177 | 9.6 | % | ||||||||
|
Eliminations(c)
|
(4,781 | ) | (2,989 | ) | (60.0 | )% | ||||||
|
Telecommunications
|
1,580,081 | 1,458,906 | 8.3 | % | ||||||||
|
Other(d)
|
116,915 | 123,758 | (5.5 | )% | ||||||||
|
Eliminations(e)
|
(5,743 | ) | (5,910 | ) | 2.8 | % | ||||||
|
Total Cablevision
|
$ | 1,691,253 | $ | 1,576,754 | 7.3 | % | ||||||
|
Twelve Months Ended
December 31,
|
%
|
|||||||||||
|
2011(a)
|
2010(a)
|
Change
|
||||||||||
|
Cable Television(b)
|
$ | 5,988,203 | $ | 5,470,588 | 9.5 | % | ||||||
|
Optimum Lightpath
|
310,976 | 284,034 | 9.5 | % | ||||||||
|
Eliminations(c)
|
(19,526 | ) | (19,100 | ) | (2.2 | )% | ||||||
|
Telecommunications
|
6,279,653 | 5,735,522 | 9.5 | % | ||||||||
|
Other(d)
|
443,898 | 465,975 | (4.7 | )% | ||||||||
|
Eliminations(e)
|
(22,703 | ) | (23,922 | ) | 5.1 | % | ||||||
|
Total Cablevision
|
$ | 6,700,848 | $ | 6,177,575 | 8.5 | % | ||||||
|
(a)
|
Operating results of AMC Networks Inc. and The Madison Square Garden Company, through the date of their respective distributions, are included in discontinued operations.
|
|
(b)
|
Cable Television results reflect Bresnan from the date of acquisition on December 14, 2010.
|
|
(c)
|
Represents intra-segment revenues.
|
|
(d)
|
Represents results from Newsday, News 12 Networks, MSG Varsity, Clearview Cinemas, Cablevision Media Sales Corp. (formerly RASCO) and certain other items.
|
|
(e)
|
Represents inter-segment revenues.
|
Page 8 of 12
CABLEVISION SYSTEMS CORPORATION
CONSOLIDATED RESULTS FROM CONTINUING OPERATIONS
(Dollars in thousands)
(Unaudited)
ADJUSTED OPERATING CASH FLOW AND OPERATING INCOME (LOSS)
|
Adjusted Operating
Cash Flow
|
Operating Income
(Loss)
|
|||||||||||||||||||||||
|
Three Months Ended
December 31,
|
%
|
Three Months Ended
December 31,
|
%
|
|||||||||||||||||||||
|
2011
|
2010(a)
|
Change
|
2011
|
2010(a)
|
Change
|
|||||||||||||||||||
|
Cable Television(b)
|
$ | 635,655 | $ | 544,319 | 16.8 | % | $ | 411,026 | $ | 345,278 | 19.0 | % | ||||||||||||
|
Optimum Lightpath
|
36,483 | 29,349 | 24.3 | % | 16,133 | 7,819 | 106.3 | % | ||||||||||||||||
|
Telecommunications
|
672,138 | 573,668 | 17.2 | % | 427,159 | 353,097 | 21.0 | % | ||||||||||||||||
|
Other(c)
|
(45,914 | ) | (56,200 | ) | 18.3 | % | (80,922 | ) | (83,177 | ) | 2.7 | % | ||||||||||||
|
Total Cablevision
|
$ | 626,224 | $ | 517,468 | 21.0 | % | $ | 346,237 | $ | 269,920 | 28.3 | % | ||||||||||||
|
Adjusted Operating
Cash Flow
|
Operating Income
(Loss)
|
|||||||||||||||||||||||
|
Twelve Months Ended
December 31,
|
%
|
Twelve Months Ended
December 31,
|
%
|
|||||||||||||||||||||
|
2011(a)
|
2010(a)
|
Change
|
2011(a)
|
2010(a)
|
Change
|
|||||||||||||||||||
|
Cable Television(b)
|
$ | 2,360,875 | $ | 2,219,945 | 6.3 | % | $ | 1,471,531 | $ | 1,449,181 | 1.5 | % | ||||||||||||
|
Optimum Lightpath
|
135,038 | 111,693 | 20.9 | % | 49,100 | 24,543 | 100.1 | % | ||||||||||||||||
|
Telecommunications
|
2,495,913 | 2,331,638 | 7.0 | % | 1,520,631 | 1,473,724 | 3.2 | % | ||||||||||||||||
|
Other(c)
|
(201,413 | ) | (208,253 | ) | 3.3 | % | (291,952 | ) | (287,662 | ) | (1.5 | )% | ||||||||||||
|
Total Cablevision
|
$ | 2,294,500 | $ | 2,123,385 | 8.1 | % | $ | 1,228,679 | $ | 1,186,062 | 3.6 | % | ||||||||||||
|
(a)
|
Operating results of AMC Networks Inc. and The Madison Square Garden Company, through the date of their respective distributions, are included in discontinued operations.
|
|
(b)
|
Cable Television results reflect Bresnan from the date of acquisition on December 14, 2010.
|
|
(c)
|
Includes unallocated corporate general and administrative costs and the operating results of Newsday, News 12 Networks, MSG Varsity, Clearview Cinemas, Cablevision Media Sales Corp (formerly RASCO) and certain other items.
|
Page 9 of 12
CABLEVISION SYSTEMS CORPORATION
SUMMARY OF CABLE TELEVISION OPERATING STATISTICS
(Unaudited)
|
CABLE TELEVISION
|
December 31,
2011
|
September 30,
2011
|
December 31,
2010(a)
|
|||||||||
|
(in thousands)
|
||||||||||||
|
Total Customers(b)
|
3,611 | 3,622 | 3,648 | |||||||||
|
Video Customers
|
3,250 | 3,264 | 3,314 | |||||||||
|
High-Speed Data Customers
|
2,965 | 2,945 | 2,892 | |||||||||
|
Voice Customers
|
2,357 | 2,326 | 2,269 | |||||||||
|
Serviceable Passings (in thousands) (c)
|
5,584 | 5,567 | 5,532 | |||||||||
|
Penetration
|
||||||||||||
|
Customers to Serviceable Passings
|
64.7 | % | 65.1 | % | 65.9 | % | ||||||
|
Video to Serviceable Passings
|
58.2 | % | 58.6 | % | 59.9 | % | ||||||
|
High-Speed Data to Serviceable Passings
|
53.1 | % | 52.9 | % | 52.3 | % | ||||||
|
Voice Customers to Serviceable Passings
|
42.2 | % | 41.8 | % | 41.0 | % | ||||||
|
Revenues for the three months ended
|
||||||||||||
| (dollars in millions) | ||||||||||||
|
Video(d)
|
$ | 874 | $ | 876 | $ | 816 | ||||||
|
High-Speed Data
|
337 | 333 | 303 | |||||||||
|
Voice
|
227 | 220 | 204 | |||||||||
|
Advertising
|
41 | 36 | 41 | |||||||||
|
Other(e)
|
27 | 25 | 26 | |||||||||
|
Total Cable Television Revenue
|
$ | 1,506 | $ | 1,490 | $ | 1,390 | ||||||
|
Average Monthly Cable Television Revenue per Video Customer (“RPS”) (f)
|
||||||||||||
|
NY Metro service area
|
$ | 156.09 | $ | 153.97 | $ | 150.68 | ||||||
|
Bresnan Cable service area
|
$ | 134.60 | $ | 129.47 | n/a | |||||||
|
Combined RPS
|
$ | 154.10 | $ | 151.71 | n/a | |||||||
|
(a)
|
Reflects the impact of Bresnan from the date of acquisition on December 14, 2010.
|
|
(b)
|
Number of customers who receive at least one of the Company’s cable services.
|
|
(c)
|
Includes residential and commercial passings.
|
|
(d)
|
Includes equipment rental, DVR, VOD and PPV revenue.
|
|
(e)
|
Includes installation revenue, NY Interconnect, home shopping and other product offerings.
|
|
(f)
|
RPS is calculated by dividing average monthly cable television GAAP revenue for the quarter by the average number of basic video customers for the quarter.
|
Note: Total voice lines for Cable Television and Lightpath at 12/31/11 were 3,028.
Page 10 of 12
CABLEVISION SYSTEMS CORPORATION
CAPITALIZATION AND LEVERAGE
(Dollars in thousands)
(Unaudited)
CAPITALIZATION
|
December 31, 2011
|
||||
|
Cash and cash equivalents
|
$ | 611,947 | ||
|
Credit facility debt
|
$ | 5,184,194 | ||
|
Senior notes and debentures
|
5,446,660 | |||
|
Collateralized indebtedness
|
455,938 | |||
|
Capital lease obligations and other
|
71,990 | |||
|
Debt
|
$ | 11,158,782 | ||
LEVERAGE
|
Debt
|
$ | 11,158,782 | ||
|
Less: Collateralized indebtedness of unrestricted subsidiaries(a)
|
455,938 | |||
|
Cash and cash equivalents
|
611,947 | |||
|
Net debt
|
$ | 10,090,897 |
|
Leverage Ratios(b)
|
||||
|
Consolidated net debt to AOCF leverage ratio(a)(c)
|
4.1 | x | ||
|
Restricted Group leverage ratio (Credit Facility Test)(d)(e)
|
3.6 | x | ||
|
CSC Holdings notes and debentures leverage ratio(d)(e)
|
3.1 | x | ||
|
Cablevision senior notes leverage ratio(e)(f)
|
4.3 | x | ||
|
Bresnan leverage ratio(g)
|
6.9 | x | ||
|
(a)
|
Collateralized indebtedness is excluded from the leverage calculation because it is viewed as a forward sale of the stock of unaffiliated companies and the company's only obligation at maturity is to deliver, at its option, the stock or its cash equivalent.
|
|
(b)
|
Leverage ratios are based on face amount of outstanding debt.
|
|
(c)
|
AOCF is annualized based on the fourth quarter 2011 results, as reported.
|
|
(d)
|
Reflects the debt to cash flow ratios applicable under CSC Holdings’ credit facility debt agreement and senior notes indentures (which exclude Cablevision’s approximately $2.2 billion of senior notes and the debt and cash flows related to CSC Holdings’ unrestricted subsidiaries which are primarily comprised of Bresnan and Newsday). The annualized AOCF (as defined) used in the Restricted Group leverage ratio and the CSC Holdings notes and debentures leverage ratio is $2.14 billion and $2.45 billion, respectively.
|
|
(e)
|
Includes CSC Holdings’ guarantee of Newsday LLC’s $650 million senior secured credit facility.
|
|
(f)
|
Adjusts the debt to cash flow ratio as calculated under the CSC Holdings notes and debentures leverage ratio to include Cablevision’s approximately $2.2 billion of senior notes plus the $754 million of senior notes Cablevision contributed to Newsday Holdings LLC.
|
|
(g)
|
Reflects the debt to cash flow ratio under the Bresnan Broadband Holdings, LLC credit facility debt agreement and senior notes indentures. The annualized AOCF (as defined) used in the leverage ratio is $145.6 million.
|
Page 11 of 12
CABLEVISION SYSTEMS CORPORATION
CAPITAL EXPENDITURES
(Dollars in thousands)
(Unaudited)
|
Three Months Ended
December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
CAPITAL EXPENDITURES
|
||||||||
|
Consumer premise equipment
|
$ | 39,530 | $ | 57,561 | ||||
|
Scalable infrastructure
|
61,472 | 69,397 | ||||||
|
Line extensions
|
10,127 | 10,684 | ||||||
|
Upgrade/rebuild
|
11,523 | 5,949 | ||||||
|
Support
|
54,065 | 62,824 | ||||||
|
Total Cable Television
|
176,717 | 206,415 | ||||||
|
Optimum Lightpath
|
39,910 | 25,375 | ||||||
|
Total Telecommunications
|
216,627 | 231,790 | ||||||
|
Other(a)
|
23,702 | 16,081 | ||||||
|
Total Cablevision
|
$ | 240,329 | $ | 247,871 | ||||
|
Twelve Months Ended
December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
CAPITAL EXPENDITURES
|
||||||||
|
Consumer premise equipment
|
$ | 203,107 | $ | 300,221 | ||||
|
Scalable infrastructure
|
217,066 | 180,562 | ||||||
|
Line extensions
|
40,240 | 36,137 | ||||||
|
Upgrade/rebuild
|
37,013 | 19,701 | ||||||
|
Support
|
156,698 | 145,153 | ||||||
|
Total Cable Television
|
654,124 | 681,774 | ||||||
|
Optimum Lightpath
|
106,163 | 98,154 | ||||||
|
Total Telecommunications
|
760,287 | 779,928 | ||||||
|
Other(a)
|
54,520 | 43,317 | ||||||
|
Total Cablevision
|
$ | 814,807 | $ | 823,245 | ||||
|
(a)
|
Other includes Newsday, News 12 Networks, MSG Varsity, Clearview Cinemas, Cablevision Media Sales Corporation (formerly RASCO) and Corporate.
|
Page 12 of 12