Attached files
| file | filename |
|---|---|
| 8-K - CABLEVISION SYSTEMS CORPORATION 8-K 7-3-2013 - CABLEVISION SYSTEMS CORP /NY | form8k.htm |
Exhibit 99.1
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
On June 27, 2013, Cablevision Systems Corporation (“Cablevision”) and its wholly owned subsidiary, CSC Holdings, LLC (collectively, the “Company”) completed the sale of substantially all of its Clearview Cinemas theaters (“Clearview Cinemas”) to Bow Tie Cinemas in connection with the asset purchase agreement between the two parties entered into in April 2013 (the “Clearview Sale”).
On July 1, 2013, the Company completed the sale of its Bresnan Broadband Holdings, LLC subsidiary (“Bresnan Cable”) for $1,625,000 in cash, subject to certain adjustments, including a reduction for certain funded indebtedness of Bresnan Cable (the “Bresnan Sale”) to Charter Communications Operating, LLC (“Charter”) pursuant to a purchase agreement entered into between the Company and Charter in February 2013.
Subsequent to the Clearview Sale and Bresnan Sale, the Company will no longer consolidate the financial results of Clearview Cinemas and Bresnan Cable. The historical financial results of Clearview Cinemas will be reflected in the Company’s consolidated financial statements as discontinued operations for all periods presented through the date of the Clearview Sale, beginning with the financial statements to be filed for the quarter ended June 30, 2013. The historical financial results of Bresnan Cable have been reflected in the Company’s consolidated financial statements as discontinued operations for all periods presented beginning with the financial statements that were filed for the quarter ended March 31, 2013.
The accompanying unaudited pro forma consolidated financial statements reflect certain known impacts of the Clearview Sale and Bresnan Sale. The unaudited pro forma consolidated financial statements have been prepared giving effect to the Clearview Sale and Bresnan Sale as if these transactions had occurred as of January 1, 2010 for the unaudited pro forma consolidated statements of operations for the three months ended March 31, 2013 and 2012 (for the Clearview Sale) and for the years ended December 31, 2012, 2011 and 2010 (for both the Clearview Sale and Bresnan Sale) and as of March 31, 2013 for the unaudited pro forma condensed consolidated balance sheets.
The unaudited pro forma condensed consolidated balance sheets as of March 31, 2013 and the unaudited pro forma consolidated statements of operations for the three months ended March 31, 2013 and 2012 and for the years ended December 31, 2012, 2011 and 2010 are based on the historical consolidated financial statements of Cablevision and CSC Holdings, LLC and reflect certain adjustments that we believe are reasonable, given the information currently available. While such adjustments are subject to change, in management’s opinion, the pro forma adjustments have been developed on a reasonable and rational basis.
These unaudited pro forma consolidated financial statements reflect all 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 Company’s financial condition or results of operations would have been had the Clearview Sale or Bresnan Sale occurred on the dates indicated. The unaudited pro forma consolidated financial information also should not be considered representative of the Company’s 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 Company’s Form 10-K for the year ended December 31, 2012 and the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2013.
1
The following is a brief description of the amounts recorded under each of the column headings in the accompanying unaudited pro forma condensed consolidated balance sheets and the unaudited pro forma consolidated statements of operations:
Historical
This column reflects Cablevision’s and CSC Holdings’ respective historical consolidated financial position as of March 31, 2013 and respective historical consolidated results of operations for the three months ended March 31, 2013 and 2012 and for the years ended December 31, 2012, 2011 and 2010, prior to any adjustment for the Clearview Sale and Bresnan Sale and the pro forma adjustments discussed below.
Adjustments Relating to Clearview Cinemas
This column reflects the elimination of Clearview Cinemas’ historical consolidated results of operations for each of the periods presented, prior to the pro forma adjustments described under the headings “Adjustments Relating to Clearview Sale” and “Adjustments Relating to Clearview Sale and Bresnan Sale” below.
Adjustments Relating to Bresnan Cable
This column reflects the elimination of Bresnan Cable’s historical consolidated results of operations for each of the years ended December 31, 2012, 2011 and 2010, prior to the pro forma adjustments described under the heading “Adjustments Relating to the Clearview Sale and Bresnan Sale” below.
Adjustments Relating to Clearview Sale
This column represents pro forma adjustments for transactions between the Company and Clearview Cinemas for the three months ended March 31, 2013 and 2012, respectively, that were previously eliminated in consolidation and will no longer be eliminated subsequent to the Clearview Sale or that arise as a direct result of the Clearview Sale 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. The adjustments to the consolidated statements of operations do not include the loss, and related tax effects, incurred in connection with the Clearview Sale.
Adjustments Relating to the Clearview Sale and Bresnan Sale
This column represents pro forma adjustments to the Company’s consolidated balance sheets at March 31, 2013 related to the Clearview Sale and Bresnan Sale. In addition, this column represents pro forma adjustments for transactions between the Company, Clearview Cinemas and Bresnan Cable for the years ended December 31, 2012, 2011 and 2010, respectively, that were previously eliminated in consolidation and will no longer be eliminated subsequent to the Clearview Sale and/or Bresnan Sale or that arise as a direct result of the Clearview Sale and/or Bresnan Sale 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. The adjustments to the consolidated statements of operations do not include the gain, and related tax effects, incurred in connection with the Bresnan Sale or the loss, and related tax effects, incurred in connection with the Clearview Sale.
2
CABLEVISION SYSTEMS CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 2013
|
|
Historical
|
Adjustments Relating to Clearview Sale and Bresnan Sale*
|
Pro forma
|
||||||||||
|
|
(dollars in thousands) | ||||||||||||
|
ASSETS
|
|||||||||||||
|
|
|||||||||||||
|
Current Assets:
|
|||||||||||||
|
|
|||||||||||||
|
Cash and cash equivalents
|
$
|
244,140
|
$
|
675,378
|
(2)
|
$
|
919,383
|
||||||
|
|
(135
|
) |
(1)
|
||||||||||
|
Accounts receivable, trade (less allowance for doubtful accounts)
|
248,518
|
—
|
248,518
|
||||||||||
|
Prepaid expenses and other current assets
|
145,176
|
(762
|
) |
(1)
|
144,414
|
||||||||
|
Amounts due from affiliates
|
11,991
|
—
|
11,991
|
||||||||||
|
Deferred tax asset
|
134,732
|
(193
|
) |
(4)
|
134,539
|
||||||||
|
Investment securities pledged as collateral
|
336,358
|
—
|
336,358
|
||||||||||
|
Assets held for sale
|
50,893
|
(50,893
|
) |
(3)
|
—
|
||||||||
|
Total current assets
|
1,171,808
|
623,395
|
1,795,203
|
||||||||||
|
|
|||||||||||||
|
Property, plant and equipment, net of accumulated depreciation
|
2,931,605
|
(28,803
|
) |
(1)
|
2,902,802
|
||||||||
|
Other receivables
|
4,066
|
—
|
4,066
|
||||||||||
|
Investment securities pledged as collateral
|
565,916
|
—
|
565,916
|
||||||||||
|
Derivative contracts
|
4,002
|
—
|
4,002
|
||||||||||
|
Other assets
|
41,203
|
(918
|
) |
(1)
|
40,285
|
||||||||
|
Amortizable intangible assets, net of accumulated amortization
|
70,378
|
—
|
70,378
|
||||||||||
|
Indefinite-lived cable television franchises
|
731,848
|
—
|
731,848
|
||||||||||
|
Other indefinite-lived intangible assets
|
32,550
|
—
|
32,550
|
||||||||||
|
Goodwill
|
264,690
|
—
|
264,690
|
||||||||||
|
Deferred financing and other costs, net of accumulated amortization
|
97,414
|
—
|
97,414
|
||||||||||
|
Assets held for sale
|
1,227,673
|
(1,227,673
|
) |
(3)
|
—
|
||||||||
|
|
|||||||||||||
|
|
$
|
7,143,153
|
$
|
(633,999
|
) |
|
$
|
6,509,154
|
|||||
| * | 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, 2013
|
|
Historical
|
Adjustments Relating to Clearview Sale and Bresnan Sale*
|
Pro forma
|
||||||||||
|
|
(dollars in thousands) | ||||||||||||
|
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
|
|||||||||||||
|
|
|||||||||||||
|
Current Liabilities:
|
|||||||||||||
|
Accounts payable
|
$
|
402,709
|
$
|
(2,039
|
) |
(1)
|
$
|
400,670
|
|||||
|
Accrued liabilities
|
468,638
|
(203
|
) |
(1)
|
479,747
|
||||||||
|
|
(830
|
) |
(4)
|
||||||||||
|
|
12,142
|
(5)
|
|||||||||||
|
Amounts due to affiliates
|
32,570
|
—
|
32,570
|
||||||||||
|
Deferred revenue
|
58,690
|
(2,097
|
) |
(1)
|
56,593
|
||||||||
|
Liabilities under derivative contracts
|
152,977
|
—
|
152,977
|
||||||||||
|
Credit facility debt
|
37,625
|
—
|
37,625
|
||||||||||
|
Collateralized indebtedness
|
182,623
|
—
|
182,623
|
||||||||||
|
Capital lease obligations
|
10,724
|
—
|
10,724
|
||||||||||
|
Notes payable
|
9,964
|
—
|
9,964
|
||||||||||
|
Liabilities held for sale
|
81,765
|
(81,765
|
) |
(3)
|
—
|
||||||||
|
Total current liabilities
|
1,438,285
|
(74,792
|
) |
|
1,363,493
|
||||||||
|
Deferred revenue
|
6,468
|
(483
|
) |
(1)
|
5,985
|
||||||||
|
Liabilities under derivative contracts
|
35,438
|
—
|
35,438
|
||||||||||
|
Other liabilities
|
319,864
|
(4,950
|
) |
(1)
|
314,914
|
||||||||
|
Deferred tax liability
|
184,359
|
(6,921
|
) |
(4)
|
413,791
|
||||||||
|
|
236,353
|
(5)
|
|||||||||||
|
Credit facility debt
|
3,844,596
|
—
|
3,844,596
|
||||||||||
|
Collateralized indebtedness
|
417,752
|
—
|
417,752
|
||||||||||
|
Capital lease obligations
|
52,441
|
—
|
52,441
|
||||||||||
|
Notes payable
|
1,766
|
—
|
1,766
|
||||||||||
|
Senior notes and debentures
|
5,490,456
|
—
|
5,490,456
|
||||||||||
|
Liabilities held for sale
|
1,027,719
|
(1,027,719
|
) |
(3)
|
—
|
||||||||
|
Total liabilities
|
12,819,144
|
(878,512
|
) |
|
11,940,632
|
||||||||
|
Redeemable noncontrolling interests
|
12,211
|
—
|
12,211
|
||||||||||
|
Total stockholders’ deficiency
|
(5,689,269
|
)
|
255,423
|
(7)
|
(5,444,756
|
)
|
|||||||
|
|
(10,910
|
) |
(6)
|
||||||||||
|
Noncontrolling interest
|
1,067
|
—
|
1,067
|
||||||||||
|
|
(5,688,202
|
)
|
244,513
|
(5,443,689
|
)
|
||||||||
|
Total deficiency
|
$
|
7,143,153
|
$
|
(633,999
|
) |
|
$
|
6,509,154
|
|||||
4
CSC HOLDINGS, LLC
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 2013
|
|
Historical
|
Adjustments Relating to Clearview Sale and Bresnan Sale*
|
Pro forma
|
||||||||||
|
|
(dollars in thousands) | ||||||||||||
|
ASSETS
|
|||||||||||||
|
|
|||||||||||||
|
Current Assets:
|
|||||||||||||
|
|
|||||||||||||
|
Cash and cash equivalents
|
$
|
159,833
|
$
|
675,378
|
(2)
|
$
|
835,076
|
||||||
|
|
(135
|
) |
(1)
|
||||||||||
|
Accounts receivable, trade (less allowance for doubtful accounts)
|
248,518
|
—
|
248,518
|
||||||||||
|
Prepaid expenses and other current assets
|
140,642
|
(762
|
) |
(1)
|
139,880
|
||||||||
|
Amounts due from affiliates
|
505,400
|
(160,254
|
) |
(5)
|
345,146
|
||||||||
|
Deferred tax asset
|
21,270
|
(193
|
) |
(4)
|
15,802
|
||||||||
|
|
(5,275
|
) |
(5)
|
||||||||||
|
Investment securities pledged as collateral
|
336,358
|
—
|
336,358
|
||||||||||
|
Assets held for sale
|
50,893
|
(50,893
|
) |
(3)
|
—
|
||||||||
|
Total current assets
|
1,462,914
|
457,866
|
1,920,780
|
||||||||||
|
|
|||||||||||||
|
Property, plant and equipment, net of accumulated depreciation
|
2,931,605
|
(28,803
|
) |
(1)
|
2,902,802
|
||||||||
|
Other receivables
|
2,288
|
—
|
2,288
|
||||||||||
|
Investment securities pledged as collateral
|
565,916
|
—
|
565,916
|
||||||||||
|
Derivative contracts
|
4,002
|
—
|
4,002
|
||||||||||
|
Other assets
|
41,203
|
(918
|
) |
(1)
|
40,285
|
||||||||
|
Amortizable intangible assets, net of accumulated amortization
|
70,378
|
—
|
70,378
|
||||||||||
|
Indefinite-lived cable television franchises
|
731,848
|
—
|
731,848
|
||||||||||
|
Other indefinite-lived intangible assets
|
32,550
|
—
|
32,550
|
||||||||||
|
Goodwill
|
264,690
|
—
|
264,690
|
||||||||||
|
Deferred financing and other costs, net of accumulated amortization
|
50,156
|
—
|
50,156
|
||||||||||
|
Assets held for sale
|
1,227,673
|
(1,227,673
|
) |
(3)
|
—
|
||||||||
|
|
$
|
7,385,223
|
$
|
(799,528
|
) |
|
$
|
6,585,695
|
|||||
| * | 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, 2013
|
|
Historical
|
Adjustments Relating to Clearview Sale and Bresnan Sale*
|
Pro forma
|
||||||||||
|
|
(dollars in thousands) | ||||||||||||
|
LIABILITIES AND MEMBERS’ DEFICIENCY
|
|||||||||||||
|
|
|||||||||||||
|
Current Liabilities:
|
|||||||||||||
|
Accounts payable
|
$
|
402,709
|
$
|
(2,039
|
) |
(1)
|
$
|
400,670
|
|||||
|
Accrued liabilities
|
377,754
|
(203
|
) |
(1)
|
429,136
|
||||||||
|
|
51,585
|
(5)
|
|||||||||||
|
Amounts due to affiliates
|
32,570
|
—
|
32,570
|
||||||||||
|
Deferred revenue
|
58,690
|
(2,097
|
) |
(1)
|
56,593
|
||||||||
|
Liabilities under derivative contracts
|
152,977
|
—
|
152,977
|
||||||||||
|
Credit facility debt
|
37,625
|
—
|
37,625
|
||||||||||
|
Collateralized indebtedness
|
182,623
|
—
|
182,623
|
||||||||||
|
Capital lease obligations
|
10,724
|
—
|
10,724
|
||||||||||
|
Notes payable
|
9,964
|
—
|
9,964
|
||||||||||
|
Liabilities held for sale
|
81,765
|
(81,765
|
) |
(3)
|
—
|
||||||||
|
Total current liabilities
|
1,347,401
|
(34,519
|
) |
|
1,312,882 | ||||||||
|
|
|||||||||||||
|
Deferred revenue
|
6,468
|
(483
|
) |
(1)
|
5,985
|
||||||||
|
Liabilities under derivative contracts
|
35,438
|
—
|
35,438
|
||||||||||
|
Other liabilities
|
317,360
|
(4,950
|
) |
(1)
|
312,410
|
||||||||
|
Deferred tax liability
|
607,050
|
(7,751
|
) |
(4)
|
616,284
|
||||||||
|
|
16,985
|
(5)
|
|||||||||||
|
Credit facility debt
|
3,844,596
|
—
|
3,844,596
|
||||||||||
|
Collateralized indebtedness
|
417,752
|
—
|
417,752
|
||||||||||
|
Capital lease obligations
|
52,441
|
—
|
52,441
|
||||||||||
|
Notes payable
|
1,766
|
—
|
1,766
|
||||||||||
|
Senior notes and debentures
|
2,598,555
|
—
|
2,598,555
|
||||||||||
|
Liabilities held of sale
|
1,027,719
|
(1,027,719
|
) |
(3)
|
—
|
||||||||
|
Total liabilities
|
10,256,546
|
(1,058,437
|
) |
|
9,198,109
|
||||||||
|
|
|||||||||||||
|
Redeemable noncontrolling interests
|
12,211
|
—
|
12,211
|
||||||||||
|
|
|||||||||||||
|
Total member’s deficiency
|
(2,884,601
|
)
|
269,819
|
(7)
|
(2,625,692
|
)
|
|||||||
|
|
(10,910
|
) |
(6)
|
||||||||||
|
|
|||||||||||||
|
Noncontrolling interest
|
1,067
|
—
|
1,067
|
||||||||||
|
Total deficiency
|
(2,883,534
|
)
|
258,909
|
(2,624,625
|
)
|
||||||||
|
|
$
|
7,385,223
|
$
|
(799,528
|
) |
|
$
|
6,585,695
|
|||||
* 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, 2013 (dollars in thousands)
| (1) | Clearview Cinemas. These adjustments reflect the elimination of the historical assets and liabilities of the theaters sold to Bow Tie Cinemas (excluding intercompany balances between the Company and Clearview Cinemas) from the Company’s consolidated balance sheet as of March 31, 2013. |
| (2) | Cash. Represents the cash received, net of estimated fees and working capital adjustments, in connection with the sale of Clearview Cinemas to Bow Tie Cinemas (approximately $2,378) and Bresnan Cable to Charter (approximately $673,000, which reflects certain adjustments, including a reduction for certain funded indebtedness of Bresnan Cable). |
| (3) | Assets and liabilities held for sale. These adjustments reflect the elimination of the historical assets and liabilities of Bresnan Cable classified as assets and liabilities held for sale from the Company’s consolidated balance sheet as of March 31, 2013. |
| (4) | Tax adjustments relating to Clearview Sale. Represent the tax impacts relating to the Clearview Sale. |
| (5) | Tax adjustments relating to Bresnan Sale. Represent the tax impacts relating to the Bresnan Sale, except for the elimination of the historical net deferred tax liablilty of $71,650 relating to Bresnan Cable which is included in (3) above. |
| (6) | Equity adjustment relating to Clearview Sale. Represents the estimated pre-tax loss of $18,468 incurred in connection with the Clearview Sale, net of the related tax effects of $7,558. |
| (7) | Equity adjustment relating to Bresnan Sale. Represents the estimated pre-tax gain of $432,268 incurred in connection with the Bresnan Sale, net of the related tax effects of $176,845 and $162,449, for Cablevision and CSC Holdings, LLC, respectively. |
7
CABLEVISION SYSTEMS CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2013
|
|
Historical
|
Adjustments Relating to Clearview Cinemas* (1)
|
Adjustments Relating to Clearview Sale*
|
Pro forma
|
|||||||||||||
|
|
(dollars in thousands, except per share amounts)
|
||||||||||||||||
|
Revenues, net
|
$
|
1,523,667
|
$
|
(12,616
|
)
|
$
|
177
|
(2)
|
$
|
1,511,228
|
|||||||
|
|
|||||||||||||||||
|
Operating expenses:
|
|||||||||||||||||
|
Technical and operating (excluding depreciation, amortization and impairments shown below)
|
803,567
|
(15,528
|
)
|
2
|
(2)
|
788,041
|
|||||||||||
|
Selling, general and administrative
|
392,791
|
(3,593
|
)
|
2,038
|
(3)
|
391,236
|
|||||||||||
|
Restructuring credits
|
(365
|
)
|
—
|
—
|
(365
|
)
|
|||||||||||
|
Depreciation and amortization (including impairments)
|
236,382
|
(11,453
|
)
|
—
|
224,929
|
||||||||||||
|
|
1,432,375
|
(30,574
|
)
|
2,040
|
1,403,841
|
||||||||||||
|
|
|||||||||||||||||
|
Operating income
|
91,292
|
17,958
|
(1,863
|
) |
|
107,387
|
|||||||||||
|
|
|||||||||||||||||
|
Other income (expense):
|
|||||||||||||||||
|
Interest expense
|
(153,391
|
)
|
—
|
—
|
(153,391
|
)
|
|||||||||||
|
Interest income
|
107
|
—
|
—
|
107
|
|||||||||||||
|
Gain on investments, net
|
99,458
|
—
|
—
|
99,458
|
|||||||||||||
|
Loss on equity derivative contracts, net
|
(71,716
|
)
|
—
|
—
|
(71,716
|
)
|
|||||||||||
|
Miscellaneous, net
|
379
|
—
|
—
|
379
|
|||||||||||||
|
|
(125,163
|
)
|
—
|
—
|
(125,163
|
)
|
|||||||||||
|
|
|||||||||||||||||
|
Loss from continuing operations before income taxes
|
(33,871
|
)
|
17,958
|
(1,863
|
) |
|
(17,776
|
)
|
|||||||||
|
Income tax benefit
|
17,221
|
(7,340
|
)
|
762
|
(4)
|
10,643
|
|||||||||||
|
Income from continuing operations
|
(16,650
|
)
|
10,618
|
(1,101
|
) |
|
(7,133
|
)
|
|||||||||
|
Net loss attributable to noncontrolling interests
|
257
|
—
|
—
|
257
|
|||||||||||||
|
Loss from continuing operations attributable to Cablevision Systems Corporation shareholders
|
$
|
(16,393
|
)
|
$
|
10,618
|
$
|
(1,101
|
) |
|
$
|
(6,876
|
)
|
|||||
|
|
|||||||||||||||||
|
Basic and diluted loss per share:
|
|||||||||||||||||
|
Loss from continuing operations attributable to Cablevision Systems Corporation shareholders
|
$
|
(0.06
|
)
|
$
|
(0.03
|
)
|
|||||||||||
|
Basic and diluted weighted average common shares (in thousands)
|
259,500
|
259,500
|
|||||||||||||||
| * | See Note A of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
8
CABLEVISION SYSTEMS CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2012
|
|
Historical
|
Adjustments Relating to Clearview Cinemas* (1)
|
Adjustments Relating to Clearview Sale*
|
Pro forma
|
|||||||||||||
|
|
(dollars in thousands, except per share amounts)
|
||||||||||||||||
|
Revenues, net
|
$
|
1,535,225
|
$
|
(15,006
|
)
|
$
|
211
|
(2)
|
$
|
1,520,430
|
|||||||
|
|
|||||||||||||||||
|
Operating expenses:
|
|||||||||||||||||
|
Technical and operating (excluding depreciation, amortization and impairments shown below)
|
725,957
|
(16,934
|
)
|
2
|
(2)
|
709,025
|
|||||||||||
|
Selling, general and administrative
|
349,769
|
(3,521
|
)
|
2,002
|
(3)
|
348,250
|
|||||||||||
|
Restructuring credits
|
(298
|
)
|
—
|
—
|
(298
|
)
|
|||||||||||
|
Depreciation and amortization (including impairments)
|
212,364
|
(1,189
|
)
|
—
|
211,175
|
||||||||||||
|
|
1,287,792
|
(21,644
|
)
|
2,004
|
1,268,152
|
||||||||||||
|
|
|||||||||||||||||
|
Operating income
|
247,433
|
6,638
|
(1,793
|
) |
|
252,278
|
|||||||||||
|
|
|||||||||||||||||
|
Other income (expense):
|
|||||||||||||||||
|
Interest expense
|
(167,281
|
)
|
—
|
—
|
(167,281
|
)
|
|||||||||||
|
Interest income
|
319
|
—
|
—
|
319
|
|||||||||||||
|
Gain on investments, net
|
135,325
|
—
|
—
|
135,325
|
|||||||||||||
|
Loss on equity derivative contracts, net
|
(111,194
|
)
|
—
|
—
|
(111,194
|
)
|
|||||||||||
|
Loss on interest rate swap contracts, net
|
(1,645
|
)
|
—
|
—
|
(1,645
|
)
|
|||||||||||
|
Miscellaneous, net
|
544
|
—
|
—
|
544
|
|||||||||||||
|
|
(143,932
|
)
|
—
|
—
|
(143,932
|
)
|
|||||||||||
|
|
|||||||||||||||||
|
Income from continuing operations before income taxes
|
103,501
|
6,638
|
(1,793
|
) |
|
108,346
|
|||||||||||
|
Income tax expense
|
(39,137
|
)
|
(2,700
|
)
|
732
|
(4)
|
(41,105
|
)
|
|||||||||
|
Income from continuing operations
|
64,364
|
3,938
|
(1,061
|
) |
|
67,241
|
|||||||||||
|
Net loss attributable to noncontrolling interests
|
143
|
—
|
—
|
143
|
|||||||||||||
|
Income from continuing operations attributable to Cablevision Systems Corporation shareholders
|
$
|
64,507
|
$
|
3,938
|
$
|
(1,061
|
) |
|
$
|
67,384
|
|||||||
|
|
|||||||||||||||||
|
Basic income per share:
|
|||||||||||||||||
|
Income from continuing operations attributable to Cablevision Systems Corporation shareholders
|
$
|
0.24
|
$
|
0.25
|
|||||||||||||
|
Basic weighted average common shares (in thousands)
|
267,419
|
267,419
|
|||||||||||||||
|
|
|||||||||||||||||
|
Diluted income per share:
|
|||||||||||||||||
|
Income from continuing operations attributable to Cablevision Systems Corporation shareholders
|
$
|
0.24
|
$
|
0.25
|
|||||||||||||
|
Basic weighted average common shares (in thousands)
|
274,038
|
274,038
|
|||||||||||||||
| * | See Note A of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
9
CABLEVISION SYSTEMS CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2012
|
|
Historical
|
Adjustments Relating to Bresnan Cable* (5)
|
Adjustments Relating to Clearview Cinemas* (6)
|
Adjustments Relating to Clearview Sale and Bresnan Sale *
|
Pro forma
|
||||||||||||||||
|
|
(dollars in thousands, except per share amounts)
|
||||||||||||||||||||
|
|
|||||||||||||||||||||
|
Revenues, net
|
$
|
6,705,461
|
$
|
(508,712
|
)
|
$
|
(65,920
|
)
|
$
|
846
|
(7)
|
$
|
6,131,675
|
||||||||
|
|
|||||||||||||||||||||
|
Operating expenses:
|
|||||||||||||||||||||
|
Technical and operating (excluding depreciation, amortization and impairments shown below)
|
3,323,655
|
(248,749
|
)
|
(73,335
|
)
|
6
|
(7)
|
3,001,577
|
|||||||||||||
|
Selling, general and administrative
|
1,544,109
|
(92,476
|
)
|
(14,964
|
)
|
17,376
|
(8)
|
1,454,045
|
|||||||||||||
|
Restructuring credits
|
(770
|
)
|
—
|
—
|
—
|
(770
|
)
|
||||||||||||||
|
Depreciation and amortization (including impairments)
|
1,078,957
|
(166,176
|
)
|
(5,006
|
)
|
—
|
907,775
|
||||||||||||||
|
|
5,945,951
|
(507,401
|
)
|
(93,305
|
)
|
17,382
|
5,362,627
|
||||||||||||||
|
|
|||||||||||||||||||||
|
Operating income
|
759,510
|
(1,311
|
)
|
27,385
|
(16,536
|
) |
|
769,048
|
|||||||||||||
|
|
|||||||||||||||||||||
|
Other income (expense):
|
|||||||||||||||||||||
|
Interest expense
|
(720,692
|
)
|
59,640
|
—
|
—
|
(661,052
|
)
|
||||||||||||||
|
Interest income
|
1,021
|
(43
|
)
|
—
|
—
|
978
|
|||||||||||||||
|
Gain on sale of programming interests, net
|
716
|
—
|
—
|
—
|
716
|
||||||||||||||||
|
Gain on investments, net
|
294,235
|
—
|
—
|
—
|
294,235
|
||||||||||||||||
|
Loss on equity derivative contracts, net
|
(211,335
|
)
|
—
|
—
|
—
|
(211,335
|
)
|
||||||||||||||
|
Loss on interest rate swap contracts, net
|
(1,828
|
)
|
—
|
—
|
—
|
(1,828
|
)
|
||||||||||||||
|
Loss on extinguishment of debt and write-off of deferred financing costs
|
(66,213
|
)
|
—
|
—
|
—
|
(66,213
|
)
|
||||||||||||||
|
Miscellaneous, net
|
1,770
|
—
|
—
|
—
|
1,770
|
||||||||||||||||
|
|
(702,326
|
)
|
59,597
|
—
|
—
|
(642,729
|
)
|
||||||||||||||
|
|
|||||||||||||||||||||
|
Income from continuing operations before income taxes
|
57,184
|
58,286
|
27,385
|
(16,536
|
) |
|
126,319
|
||||||||||||||
|
Income tax expense
|
(23,821
|
)
|
(23,773
|
)
|
(11,168
|
)
|
6,768
|
(9)
|
(51,994
|
)
|
|||||||||||
|
Income from continuing operations
|
33,363
|
34,513
|
16,217
|
(9,768
|
) |
|
74,325
|
||||||||||||||
|
Net income attributable to noncontrolling interests
|
(90
|
)
|
—
|
—
|
—
|
(90
|
)
|
||||||||||||||
|
Income from continuing operations attributable to Cablevision Systems Corporation shareholders
|
$
|
33,273
|
$
|
34,513
|
$
|
16,217
|
$
|
(9,768
|
) |
|
$
|
74,235
|
|||||||||
|
|
|||||||||||||||||||||
|
Basic income per share:
|
|||||||||||||||||||||
|
Income from continuing operations attributable to Cablevision Systems Corporation shareholders
|
$
|
0.13
|
$
|
0.28
|
|||||||||||||||||
|
Basic weighted average common shares (in thousands)
|
262,258
|
262,258
|
|||||||||||||||||||
|
|
|||||||||||||||||||||
|
Diluted income per share:
|
|||||||||||||||||||||
|
Income from continuing operations attributable to Cablevision Systems Corporation shareholders
|
$
|
0.12
|
$
|
0.28
|
|||||||||||||||||
|
Diluted weighted average common shares (in thousands)
|
267,330
|
267,330
|
|||||||||||||||||||
| * | 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, 2011
|
|
Historical
|
Adjustments Relating to Bresnan Cable* (5)
|
Adjustments Relating to Clearview Cinemas* (6)
|
Adjustments Relating to Clearview Sale and Bresnan Sale *
|
Pro forma
|
||||||||||||||||
|
|
(dollars in thousands, except per share amounts)
|
||||||||||||||||||||
|
Revenues, net
|
$
|
6,700,848
|
$
|
(471,655
|
)
|
$
|
(67,504
|
)
|
$
|
919
|
(7)
|
$
|
6,162,608
|
||||||||
|
|
|||||||||||||||||||||
|
Operating expenses:
|
|||||||||||||||||||||
|
Technical and operating (excluding depreciation, amortization and impairments shown below)
|
2,968,540
|
(240,926
|
)
|
(73,642
|
)
|
6
|
(7)
|
2,653,978
|
|||||||||||||
|
Selling, general and administrative
|
1,482,344
|
(86,207
|
)
|
(13,040
|
)
|
14,964
|
(8)
|
1,398,061
|
|||||||||||||
|
Restructuring expense
|
6,311
|
—
|
—
|
—
|
6,311
|
||||||||||||||||
|
Depreciation and amortization (including impairments)
|
1,014,974
|
(163,301
|
)
|
(5,140
|
)
|
—
|
846,533
|
||||||||||||||
|
|
5,472,169
|
(490,434
|
)
|
(91,822
|
)
|
14,970
|
4,904,883
|
||||||||||||||
|
|
|||||||||||||||||||||
|
Operating income
|
1,228,679
|
18,779
|
24,318
|
(14,051
|
) |
|
1,257,725
|
||||||||||||||
|
|
|||||||||||||||||||||
|
Other income (expense):
|
|||||||||||||||||||||
|
Interest expense
|
(746,587
|
)
|
59,784
|
—
|
—
|
(686,803
|
)
|
||||||||||||||
|
Interest income
|
881
|
(45
|
)
|
—
|
—
|
836
|
|||||||||||||||
|
Gain on sale of programming interests, net
|
683
|
—
|
—
|
—
|
683
|
||||||||||||||||
|
Gain on investments, net
|
37,384
|
—
|
—
|
—
|
37,384
|
||||||||||||||||
|
Gain on equity derivative contracts, net
|
1,454
|
—
|
—
|
—
|
1,454
|
||||||||||||||||
|
Loss on interest rate swap contracts, net
|
(7,973
|
)
|
—
|
—
|
—
|
(7,973
|
)
|
||||||||||||||
|
Loss on extinguishment of debt and write-off of deferred financing costs
|
(92,692
|
)
|
—
|
—
|
—
|
(92,692
|
)
|
||||||||||||||
|
Miscellaneous, net
|
1,265
|
—
|
—
|
—
|
1,265
|
||||||||||||||||
|
|
(805,585
|
)
|
59,739
|
—
|
—
|
(745,846
|
)
|
||||||||||||||
|
|
|||||||||||||||||||||
|
Income from continuing operations before income taxes
|
423,094
|
78,518
|
24,318
|
(14,051
|
) |
|
511,879
|
||||||||||||||
|
Income tax expense
|
(184,436
|
)
|
(31,963
|
)
|
(9,891
|
)
|
5,738
|
(9)
|
(220,552
|
)
|
|||||||||||
|
Income from continuing operations
|
238,658
|
46,555
|
14,427
|
(8,313
|
) |
|
291,327
|
||||||||||||||
|
Net income attributable to noncontrolling interests
|
(424
|
)
|
—
|
—
|
—
|
(424
|
)
|
||||||||||||||
|
Income from continuing operations attributable to Cablevision Systems Corporation shareholders
|
$
|
238,234
|
$
|
46,555
|
$
|
14,427
|
$
|
(8,313
|
) |
|
$
|
290,903
|
|||||||||
|
|
|||||||||||||||||||||
|
Basic income per share:
|
|||||||||||||||||||||
|
Income from continuing operations attributable to Cablevision Systems Corporation shareholders
|
$
|
0.86
|
$
|
1.05
|
|||||||||||||||||
|
Basic weighted average common shares (in thousands)
|
276,369
|
276,369
|
|||||||||||||||||||
|
|
|||||||||||||||||||||
|
Diluted income per share:
|
|||||||||||||||||||||
|
Income from continuing operations attributable to Cablevision Systems Corporation shareholders
|
$
|
0.84
|
$
|
1.02
|
|||||||||||||||||
|
Diluted weighted average common shares (in thousands)
|
284,904
|
284,904
|
|||||||||||||||||||
| * | 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, 2010
|
|
Historical
|
Adjustments Relating to Bresnan Cable* (5)
|
Adjustments Relating to Clearview Cinemas* (6)
|
Adjustments Relating to Clearview Sale and Bresnan Sale *
|
Pro forma
|
||||||||||||||||
|
|
(dollars in thousands, except per share amounts)
|
||||||||||||||||||||
|
Revenues, net
|
$
|
6,177,575
|
$
|
(22,135
|
)
|
$
|
(68,436
|
)
|
$
|
860
|
(7)
|
$
|
6,087,864
|
||||||||
|
|
|||||||||||||||||||||
|
Operating expenses:
|
|||||||||||||||||||||
|
Technical and operating (excluding depreciation, amortization and impairments shown below)
|
2,663,748
|
(25,117
|
)
|
(75,062
|
)
|
6
|
(7)
|
2,563,575
|
|||||||||||||
|
Selling, general and administrative
|
1,440,731
|
(4,247
|
)
|
(14,448
|
)
|
(299
|
) |
(8)
|
1,421,737
|
||||||||||||
|
Restructuring credits
|
(58
|
)
|
—
|
—
|
—
|
(58
|
)
|
||||||||||||||
|
Depreciation and amortization (including impairments)
|
887,092
|
(6,791
|
)
|
(5,967
|
)
|
—
|
874,334
|
||||||||||||||
|
|
4,991,513
|
(36,155
|
)
|
(95,477
|
)
|
(293
|
) |
|
4,859,588
|
||||||||||||
|
|
|||||||||||||||||||||
|
Operating income
|
1,186,062
|
14,020
|
27,041
|
1,153
|
1,228,276
|
||||||||||||||||
|
|
|||||||||||||||||||||
|
Other income (expense):
|
|||||||||||||||||||||
|
Interest expense
|
(711,293
|
)
|
6,589
|
—
|
—
|
(704,704
|
)
|
||||||||||||||
|
Interest income
|
542
|
—
|
—
|
—
|
542
|
||||||||||||||||
|
Gain on sale of programming interests, net
|
2,051
|
—
|
—
|
—
|
2,051
|
||||||||||||||||
|
Gain on investments, net
|
109,813
|
—
|
—
|
—
|
109,813
|
||||||||||||||||
|
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
|
1,447
|
1
|
—
|
—
|
1,448
|
||||||||||||||||
|
|
(864,546
|
)
|
6,590
|
—
|
—
|
(857,956
|
)
|
||||||||||||||
|
|
|||||||||||||||||||||
|
Income from continuing operations before income taxes
|
321,516
|
20,610
|
27,041
|
1,153
|
370,320
|
||||||||||||||||
|
Income tax expense
|
(113,767
|
)
|
(8,299
|
)
|
(10,848
|
)
|
(464
|
) |
(9)
|
(133,378
|
)
|
||||||||||
|
Income from continuing operations
|
207,749
|
12,311
|
16,193
|
689
|
236,942
|
||||||||||||||||
|
Net income attributable to noncontrolling interests
|
(649
|
)
|
—
|
—
|
—
|
(649
|
)
|
||||||||||||||
|
Income from continuing operations attributable to Cablevision Systems Corporation shareholders
|
$
|
207,100
|
$
|
12,311
|
$
|
16,193
|
$
|
689
|
$
|
236,293
|
|||||||||||
|
|
|||||||||||||||||||||
|
Basic income per share:
|
|||||||||||||||||||||
|
Income from continuing operations attributable to Cablevision Systems Corporation shareholders
|
$
|
0.71
|
$
|
0.81
|
|||||||||||||||||
|
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
|
$
|
0.69
|
$
|
0.78
|
|||||||||||||||||
|
Basic weighted average common shares (in thousands)
|
301,880
|
301,880
|
|||||||||||||||||||
| * | See Note B of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
12
CSC HOLDINGS, LLC
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2013
|
|
Historical
|
Adjustments Relating to Clearview Cinemas* (1)
|
Adjustments Relating to Clearview Sale*
|
Pro forma
|
|||||||||||||
|
|
(dollars in thousands, except per share amounts)
|
||||||||||||||||
|
Revenues, net
|
$
|
1,523,667
|
$
|
(12,616
|
)
|
$
|
177
|
(2)
|
$
|
1,511,228
|
|||||||
|
|
|||||||||||||||||
|
Operating expenses:
|
|||||||||||||||||
|
Technical and operating (excluding depreciation, amortization and impairments shown below)
|
803,567
|
(15,528
|
)
|
2
|
(2)
|
788,041
|
|||||||||||
|
Selling, general and administrative
|
392,791
|
(3,593
|
)
|
2,038
|
(3)
|
391,236
|
|||||||||||
|
Restructuring credits
|
(365
|
)
|
—
|
—
|
(365
|
)
|
|||||||||||
|
Depreciation and amortization (including impairments)
|
236,382
|
(11,453
|
)
|
—
|
224,929
|
||||||||||||
|
|
1,432,375
|
(30,574
|
)
|
2,040
|
1,403,841
|
||||||||||||
|
|
|||||||||||||||||
|
Operating income
|
91,292
|
17,958
|
(1,863
|
) |
|
107,387
|
|||||||||||
|
|
|||||||||||||||||
|
Other income (expense):
|
|||||||||||||||||
|
Interest expense
|
(96,564
|
)
|
—
|
|
—
|
(96,564 | ) | ||||||||||
|
Interest income
|
14,857
|
—
|
—
|
14,857
|
|||||||||||||
|
Gain on investments, net
|
99,458
|
—
|
—
|
99,458
|
|||||||||||||
|
Loss on equity derivative contracts, net
|
(71,716
|
)
|
—
|
—
|
(71,716
|
)
|
|||||||||||
|
Miscellaneous, net
|
379
|
—
|
—
|
379
|
|||||||||||||
|
|
(53,586
|
)
|
—
|
—
|
(53,586
|
)
|
|||||||||||
|
|
|||||||||||||||||
|
Income from continuing operations before income taxes
|
37,706
|
17,958
|
(1,863
|
) |
|
53,801
|
|||||||||||
|
Income tax expense
|
(13,268
|
)
|
(7,340
|
)
|
762
|
(4)
|
(19,846
|
)
|
|||||||||
|
Income from continuing operations
|
24,438
|
10,618
|
(1,101
|
) |
|
33,955
|
|||||||||||
|
Net loss attributable to noncontrolling interests
|
257
|
—
|
—
|
257
|
|||||||||||||
|
Income from continuing operations attributable to CSC Holdings, LLC sole member
|
$
|
24,695
|
$
|
10,618
|
$
|
(1,101
|
) |
|
$
|
34,212
|
|||||||
| * | See Note A of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
13
CSC HOLDINGS, LLC
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2012
|
|
Historical
|
Adjustments Relating to Clearview Cinemas* (1)
|
Adjustments Relating to Clearview Sale*
|
Pro forma
|
|||||||||||||
|
|
(dollars in thousands, except per share amounts)
|
||||||||||||||||
|
Revenues, net
|
$
|
1,535,225
|
$
|
(15,006
|
)
|
$
|
211
|
(2)
|
$
|
1,520,430
|
|||||||
|
|
|||||||||||||||||
|
Operating expenses:
|
|||||||||||||||||
|
Technical and operating (excluding depreciation, amortization and impairments shown below)
|
725,957
|
(16,934
|
)
|
2
|
(2)
|
709,025
|
|||||||||||
|
Selling, general and administrative
|
349,769
|
(3,521
|
)
|
2,002
|
(3)
|
348,250
|
|||||||||||
|
Restructuring credits
|
(298
|
)
|
—
|
—
|
(298
|
)
|
|||||||||||
|
Depreciation and amortization (including impairments)
|
212,364
|
(1,189
|
)
|
—
|
211,175
|
||||||||||||
|
|
|||||||||||||||||
|
|
1,287,792
|
(21,644
|
)
|
2,004
|
1,268,152
|
||||||||||||
|
|
|||||||||||||||||
|
Operating income
|
247,433
|
6,638
|
(1,793
|
) |
|
252,278
|
|||||||||||
|
|
|||||||||||||||||
|
Other income (expense):
|
|||||||||||||||||
|
Interest expense
|
(121,349
|
)
|
—
|
—
|
(121,349
|
)
|
|||||||||||
|
Interest income
|
15,079
|
—
|
—
|
15,079
|
|||||||||||||
|
Gain on investments, net
|
135,325
|
—
|
—
|
135,325
|
|||||||||||||
|
Loss on equity derivative contracts, net
|
(111,194
|
)
|
—
|
—
|
(111,194
|
)
|
|||||||||||
|
Loss on interest rate swap contracts, net
|
(1,645
|
)
|
—
|
—
|
(1,645
|
)
|
|||||||||||
|
Miscellaneous, net
|
544
|
—
|
—
|
544
|
|||||||||||||
|
|
(83,240
|
)
|
—
|
—
|
(83,240
|
)
|
|||||||||||
|
|
|||||||||||||||||
|
Income from continuing operations before income taxes
|
164,193
|
6,638
|
(1,793
|
) |
|
169,038
|
|||||||||||
|
Income tax expense
|
(65,381
|
)
|
(2,700
|
)
|
732
|
(4)
|
(67,349
|
)
|
|||||||||
|
Income from continuing operations
|
98,812
|
3,938
|
(1,061
|
) |
|
101,689
|
|||||||||||
|
Net loss attributable to noncontrolling interests
|
143
|
—
|
—
|
143
|
|||||||||||||
|
Income from continuing operations attributable to CSC Holdings, LLC sole member
|
$
|
98,955
|
$
|
3,938
|
$
|
(1,061
|
) |
|
$
|
101,832
|
|||||||
| * | See Note A of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
14
CSC HOLDINGS, LLC
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2012
|
|
Historical
|
Adjustments Relating to Bresnan Cable* (5)
|
Adjustments Relating to Clearview Cinemas* (6)
|
Adjustments Relating to Clearview Sale and Bresnan Sale*
|
Pro forma
|
||||||||||||||||
|
|
(dollars in thousands, except per share amounts)
|
||||||||||||||||||||
|
Revenues, net
|
$
|
6,705,461
|
$
|
(508,712
|
)
|
$
|
(65,920
|
)
|
$
|
846
|
(7)
|
$
|
6,131,675
|
||||||||
|
|
|||||||||||||||||||||
|
Operating expenses:
|
|||||||||||||||||||||
|
Technical and operating (excluding depreciation, amortization and impairments shown below)
|
3,323,655
|
(248,749
|
)
|
(73,335
|
)
|
6
|
(7)
|
3,001,577
|
|||||||||||||
|
Selling, general and administrative
|
1,544,109
|
(92,476
|
)
|
(14,964
|
)
|
17,376
|
(8)
|
1,454,045
|
|||||||||||||
|
Restructuring credits
|
(770
|
)
|
—
|
—
|
—
|
(770
|
)
|
||||||||||||||
|
Depreciation and amortization (including impairments)
|
1,078,957
|
(166,176
|
)
|
(5,006
|
)
|
—
|
907,775
|
||||||||||||||
|
|
5,945,951
|
(507,401
|
)
|
(93,305
|
)
|
17,382
|
5,362,627
|
||||||||||||||
|
|
|||||||||||||||||||||
|
Operating income
|
759,510
|
(1,311
|
)
|
27,385
|
(16,536
|
) |
|
769,048
|
|||||||||||||
|
|
|||||||||||||||||||||
|
Other income (expense):
|
|||||||||||||||||||||
|
Interest expense
|
(526,416
|
)
|
59,640
|
—
|
—
|
(466,776
|
)
|
||||||||||||||
|
Interest income
|
60,036
|
(43
|
)
|
—
|
—
|
59,993
|
|||||||||||||||
|
Gain on sale of programming interests, net
|
716
|
—
|
—
|
—
|
716
|
||||||||||||||||
|
Gain on investments, net
|
294,235
|
—
|
—
|
—
|
294,235
|
||||||||||||||||
|
Loss on equity derivative contracts, net
|
(211,335
|
)
|
—
|
—
|
—
|
(211,335
|
)
|
||||||||||||||
|
Loss on interest rate swap contracts, net
|
(1,828
|
)
|
—
|
—
|
—
|
(1,828
|
)
|
||||||||||||||
|
Loss on extinguishment of debt and write-off of deferred financing costs
|
(66,213
|
)
|
—
|
—
|
—
|
(66,213
|
)
|
||||||||||||||
|
Miscellaneous, net
|
1,770
|
—
|
—
|
—
|
1,770
|
||||||||||||||||
|
|
(449,035
|
)
|
59,597
|
—
|
—
|
(389,438
|
)
|
||||||||||||||
|
|
|||||||||||||||||||||
|
Income from continuing operations before income taxes
|
310,475
|
58,286
|
27,385
|
(16,536
|
) |
|
379,610
|
||||||||||||||
|
Income tax expense
|
(124,374
|
)
|
(23,773
|
)
|
(11,168
|
)
|
6,768
|
(9)
|
(152,547
|
)
|
|||||||||||
|
Income from continuing operations
|
186,101
|
34,513
|
16,217
|
(9,768
|
) |
|
227,063
|
||||||||||||||
|
Net income attributable to noncontrolling interests
|
(90
|
)
|
—
|
—
|
—
|
(90
|
)
|
||||||||||||||
|
Income from continuing operations attributable to CSC Holdings, LLC sole member
|
$
|
186,011
|
$
|
34,513
|
$
|
16,217
|
$
|
(9,768
|
) |
|
$
|
226,973
|
|||||||||
| * | 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, 2011
|
|
Historical
|
Adjustments Relating to Bresnan Cable* (5)
|
Adjustments Relating to Clearview Cinemas* (6)
|
Adjustments Relating to Clearview Sale and Bresnan Sale*
|
Pro forma
|
||||||||||||||||
|
|
(dollars in thousands, except per share amounts)
|
||||||||||||||||||||
|
Revenues, net
|
$
|
6,700,848
|
$
|
(471,655
|
)
|
$
|
(67,504
|
)
|
$
|
919
|
(7)
|
$
|
6,162,608
|
||||||||
|
|
|||||||||||||||||||||
|
Operating expenses:
|
|||||||||||||||||||||
|
Technical and operating (excluding depreciation, amortization and impairments shown below)
|
2,968,540
|
(240,926
|
)
|
(73,642
|
)
|
6
|
(7)
|
2,653,978
|
|||||||||||||
|
Selling, general and administrative
|
1,482,344
|
(86,207
|
)
|
(13,040
|
)
|
14,964
|
(8)
|
1,398,061
|
|||||||||||||
|
Restructuring expense
|
6,311
|
—
|
—
|
—
|
6,311
|
||||||||||||||||
|
Depreciation and amortization (including impairments)
|
1,014,974
|
(163,301
|
)
|
(5,140
|
)
|
—
|
846,533
|
||||||||||||||
|
|
5,472,169
|
(490,434
|
)
|
(91,822
|
)
|
14,970
|
4,904,883
|
||||||||||||||
|
|
|||||||||||||||||||||
|
Operating income
|
1,228,679
|
18,779
|
24,318
|
(14,051
|
) |
|
1,257,725
|
||||||||||||||
|
|
|||||||||||||||||||||
|
Other income (expense):
|
|||||||||||||||||||||
|
Interest expense
|
(563,069
|
)
|
59,784
|
—
|
—
|
(503,285
|
)
|
||||||||||||||
|
Interest income
|
59,945
|
(45
|
)
|
—
|
—
|
59,900
|
|||||||||||||||
|
Gain on sale of programming interests, net
|
683
|
—
|
—
|
—
|
683
|
||||||||||||||||
|
Gain on investments, net
|
37,384
|
—
|
—
|
—
|
37,384
|
||||||||||||||||
|
Gain on equity derivative contracts, net
|
1,454
|
—
|
—
|
—
|
1,454
|
||||||||||||||||
|
Loss on interest rate swap contracts, net
|
(7,973
|
)
|
—
|
—
|
—
|
(7,973
|
)
|
||||||||||||||
|
Loss on extinguishment of debt and write-off of deferred financing costs
|
(92,692
|
)
|
—
|
—
|
—
|
(92,692
|
)
|
||||||||||||||
|
Miscellaneous, net
|
1,265
|
—
|
—
|
—
|
1,265
|
||||||||||||||||
|
|
(563,003
|
)
|
59,739
|
—
|
—
|
(503,264
|
)
|
||||||||||||||
|
|
|||||||||||||||||||||
|
Income from continuing operations before income taxes
|
665,676
|
78,518
|
24,318
|
(14,051
|
) |
|
754,461
|
||||||||||||||
|
Income tax expense
|
(292,598
|
)
|
(31,963
|
)
|
(9,891
|
)
|
5,738
|
(9)
|
(328,714
|
)
|
|||||||||||
|
Income from continuing operations
|
373,078
|
46,555
|
14,427
|
(8,313
|
) |
|
425,747
|
||||||||||||||
|
Net income attributable to noncontrolling interests
|
(424
|
)
|
—
|
—
|
—
|
(424
|
)
|
||||||||||||||
|
Income from continuing operations attributable to CSC Holdings, LLC sole member
|
$
|
372,654
|
$
|
46,555
|
$
|
14,427
|
$
|
(8,313
|
) |
|
$
|
425,323
|
|||||||||
| * | 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, 2010
|
|
Historical
|
Adjustments Relating to Bresnan Cable* (5)
|
Adjustments Relating to Clearview Cinemas* (6)
|
Adjustments Relating to Clearview Sale and Bresnan Sale*
|
Pro forma
|
||||||||||||||||
|
|
(dollars in thousands, except per share amounts)
|
||||||||||||||||||||
|
Revenues, net
|
$
|
6,177,575
|
$
|
(22,135
|
)
|
$
|
(68,436
|
)
|
$
|
860
|
(7)
|
$
|
6,087,864
|
||||||||
|
|
|||||||||||||||||||||
|
Operating expenses:
|
|||||||||||||||||||||
|
Technical and operating (excluding depreciation, amortization and impairments shown below)
|
2,663,748
|
(25,117
|
)
|
(75,062
|
)
|
6
|
(7)
|
2,563,575
|
|||||||||||||
|
Selling, general and administrative
|
1,440,731
|
(4,247
|
)
|
(14,448
|
)
|
(299
|
) |
(8)
|
1,421,737
|
||||||||||||
|
Restructuring credits
|
(58
|
)
|
—
|
—
|
—
|
(58
|
)
|
||||||||||||||
|
Depreciation and amortization (including impairments)
|
887,092
|
(6,791
|
)
|
(5,967
|
)
|
—
|
874,334
|
||||||||||||||
|
|
4,991,513
|
(36,155
|
)
|
(95,477
|
)
|
(293
|
) |
|
4,859,588
|
||||||||||||
|
|
|||||||||||||||||||||
|
Operating income
|
1,186,062
|
14,020
|
27,041
|
1,153
|
1,228,276
|
||||||||||||||||
|
|
|||||||||||||||||||||
|
Other income (expense):
|
|||||||||||||||||||||
|
Interest expense
|
(531,210
|
)
|
6,589
|
—
|
—
|
(524,621
|
)
|
||||||||||||||
|
Interest income
|
60,872
|
—
|
—
|
—
|
60,872
|
||||||||||||||||
|
Gain on sale of programming interests, net
|
2,051
|
—
|
—
|
—
|
2,051
|
||||||||||||||||
|
Gain on investments, net
|
109,813
|
—
|
—
|
—
|
109,813
|
||||||||||||||||
|
Loss on equity derivative contracts, net
|
(72,044
|
)
|
—
|
—
|
—
|
(72,044
|
)
|
||||||||||||||
|
Loss on interest rate swap contracts, net
|
(85,013
|
)
|
—
|
—
|
—
|
(85,013
|
)
|
||||||||||||||
|
Miscellaneous, net
|
1,433
|
1
|
—
|
—
|
1,434
|
||||||||||||||||
|
|
(514,098
|
)
|
6,590
|
—
|
—
|
(507,508
|
)
|
||||||||||||||
|
|
|||||||||||||||||||||
|
Income from continuing operations before income taxes
|
671,964
|
20,610
|
27,041
|
1,153
|
720,768
|
||||||||||||||||
|
Income tax expense
|
(250,886
|
)
|
(8,299
|
)
|
(10,848
|
)
|
(464
|
) |
(9)
|
(270,497
|
)
|
||||||||||
|
Income from continuing operations
|
421,078
|
12,311
|
16,193
|
689
|
450,271
|
||||||||||||||||
|
Net income attributable to noncontrolling interests
|
(649
|
)
|
—
|
—
|
—
|
(649
|
)
|
||||||||||||||
|
Income from continuing operations attributable to CSC Holdings, LLC sole member
|
$
|
420,429
|
$
|
12,311
|
$
|
16,193
|
$
|
689
|
$
|
449,622
|
|||||||||||
| * | See Note B of Notes to Unaudited Pro Forma Consolidated Statements of Operations. |
17
Note A — Notes to Unaudited Pro Forma Consolidated Statements of Operations for the Three Months Ended March 31, 2013 and 2012 (dollars in thousands)
| (1) | Adjustments relating to Clearview Cinemas. Represent the elimination of the consolidated results of operations of Clearview Cinemas for the three months ended March 31, 2013 and 2012, respectively. |
| (2) | Transactions with Clearview Cinemas. Adjustments include normal recurring intercompany transactions between the Company’s subsidiaries and Clearview Cinemas that prior to the Clearview Sale were eliminated in consolidation (primarily revenues recognized by the Company for cable and phone services provided to Clearview Cinemas and revenues recognized by Clearview Cinemas for advertising services provided to the Company), which as a result of the Clearview Sale which would not be eliminated in consolidation. |
| (3) | Selling, general and administrative expense. Represents primarily corporate overhead, as well as costs related to corporate employees’ participation in long-term incentive plans and employee stock-based compensations plans, historically allocated to Clearview Cinemas that would remain with the Company after the Clearview Sale. This amount is net of transaction costs incurred through March 31, 2013 relating to the sale of Clearview Cinemas which would have been reclassified to discontinued operations. |
| (4) | Income tax benefit (expense). Represents the income tax benefit (expense) impact related to the pro forma adjustments discussed in (2) and (3) above. |
Note B — Notes to Unaudited Pro Forma Consolidated Statements of Operations for the Years Ended December 31, 2012, 2011 and 2010 (dollars in thousands)
| (5) | Adjustments relating to Bresnan Cable. Represent the elimination of the consolidated results of operations of Bresnan Cable for the years ended December 31, 2012, 2011 and 2010, respectively. For the year ended December 31, 2010, amounts include the operating results of Bresnan Cable from the date of acquisition on December 14, 2010. |
| (6) | Adjustments relating to Clearview Cinemas. Represent the elimination of the consolidated results of operations of Clearview Cinemas for the years ended December 31, 2012, 2011 and 2010, respectively. |
| (7) | Transactions with Bresnan Cable and Clearview Cinemas. Adjustments include normal recurring intercompany transactions between the Company’s subsidiaries and Clearview Cinemas and the Company’s subsidiaries and Bresnan Cable that prior to the Clearview Sale and Bresnan Sale (primarily revenues recognized by the Company for cable and phone services provided to Clearview Cinemas and and phone services provided to Bresnan Cable and revenues recognized by Clearview Cinemas for advertising services provided to the Company) were eliminated in consolidation, which as a result of the Bresnan Sale and Clearview Sale would no longer be eliminated in consolidation. |
| (8) | Selling, general and administrative expense. Represents primarily corporate overhead, as well as costs related to corporate employees’ participation in long-term incentive plans and employee stock-based compensations plans, historically allocated to Bresnan Cable and Clearview Cinemas that would remain with the Company after the Bresnan Sale and Clearview Sale. For the year ended December 31, 2010, the amount is net of transaction costs of $8,924 relating to the acquisition of Bresnan Cable on December 14, 2010 that would have been reclassified to discontinued operations. |
| (9) | Income tax benefit (expense). Represents the income tax benefit (expense) impact related to the pro forma adjustments discussed in (7) and (8) above. |
18