Cablevision Systems Corporation (NYSE:CVC) today reported
financial results for the third quarter ended September 30,
2010.
Third quarter consolidated net revenues grew 5.6% to
$1.808 billion compared to the prior year period, reflecting
solid revenue growth in Telecommunications Services and Rainbow,
offset slightly by a decline at Newsday. Consolidated adjusted
operating cash flow (“AOCF”)1 grew 3.6% to $661.7 million and
consolidated operating income grew 8.3% to $401.2 million,
both compared to the prior year period. Third quarter 2009 AOCF and
operating income include favorable adjustments of
$25.7 million relating to the resolution of regulatory and
legal matters at Cable. If excluded, consolidated AOCF and
operating income would have grown 8.0% and 16.4%, respectively,
compared to the prior year period.
Operating highlights for the third quarter 2010 include:
- Year-to-date Consolidated Free Cash
Flow from Continuing Operations1 of $656.4 million
- Average Monthly Revenue per Basic Video
Customer (“RPS”) of $149.04 in the third quarter of 2010
- Cable advertising revenue growth of
30.2% in the third quarter of 2010, compared to the prior year
period.
Cablevision President and CEO James L. Dolan commented:
“Cablevision continued to perform well in the third quarter as the
ongoing strength of our core businesses led to solid increases in
both revenue and AOCF. The company’s cable operations generated a
significant increase in advertising revenue of 30 percent,
while continuing to enjoy industry-leading penetration rates.
Meanwhile, Rainbow achieved double-digit revenue growth for the
third quarter thanks to impressive gains in both advertising and
affiliate revenue. Also noteworthy this quarter, Cablevision
generated an additional $225 million in free cash flow, bringing
our year-to-date number to $656 million,” concluded Mr. Dolan.
Results from Continuing Operations2
Segment results for the quarters ended September 30, 2010 and
2009 are as follows:
Revenues, Net AOCF
Operating Income(Loss)
$ millions Q3 2010 Q3
2009 Q3 2010
Q3 2009 Q3 2010
Q3 2009 Telecommunications
$ 1,433.5 $ 1,362.0
$ 591.9 $ 575.0
$ 378.1 $ 354.3
Rainbow 291.4 260.1
96.4 85.9
63.0 53.4
Newsday 76.5 79.9
4.0 5.6
(1.7 ) (0.8 )
Other (including
eliminations) 6.2 9.2
(30.6 ) (28.0 )
(38.2 ) (36.5 )
Total
Company $ 1,807.6 $ 1,711.2
$ 661.7 $ 638.5
$ 401.2 $ 370.4 1.
See definition of adjusted operating cash
flow (“AOCF”) and Consolidated Free Cash Flow fromContinuing
Operations included in the discussion of non-GAAP financial
measures on page 4 ofthis earnings release.
2.
Operating results of Madison Square Garden
are included in discontinued operations for allperiods presented as
applicable.
Telecommunications Services – Cable Television and
Lightpath
Telecommunications Services includes Cable Television –
Cablevision’s “Optimum” branded 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 third quarter
2010 rose 5.2% to $1.433 billion, AOCF grew 2.9% to
$591.9 million and operating income increased 6.7% to
$378.1 million, all compared to the prior year period. Third
quarter 2009 AOCF and operating income include favorable
adjustments of $25.7 million relating to the resolution of
regulatory and legal matters at Cable. Excluding these items, the
growth in AOCF and operating income would have been 7.8% and 15.1%,
respectively.
Cable
Television
Cable Television third quarter 2010 net
revenues increased 4.8% to $1.366 billion, AOCF rose 2.3% to
$563.3 million and operating income increased 6.3% to
$372.4 million, each compared to the prior year period. The
third quarter 2010 increases in net revenues, AOCF and operating
income were principally driven by the twelve month growth in
digital video, high-speed data, and voice customers as well as
higher rates. (Third quarter 2009 AOCF and operating income include
the items discussed above. Excluding these items, the growth in
AOCF and operating income would have been 7.3% and 14.8%,
respectively.)
The third quarter 2010 results reflect:
- Basic video customers down
24,500 or 0.8% from June 2010 and down 23,500 or 0.8% from
September 2009
- iO: Interactive Optimum
digital video customers down 4,200 or 0.1% from June 2010
and up 33,700 or 1.2% from September 2009
- Optimum Online high-speed
data customers up 9,600 or 0.4% from June 2010 and 125,000 or
5.0% from September 2009
- Optimum Voice customers up 9,300
or 0.4% from June 2010 and 128,000 or 6.4% from September 2009
- Revenue Generating Units down
9,800 or 0.1% from June 2010 and up 263,200 or 2.5% from September
2009
- Cable Television RPS of
$149.04, down $0.08 or 0.1% from the second quarter of 2010 and up
$8.01 or 5.7% from the third quarter of 2009.
Optimum
Lightpath
For third quarter 2010, Lightpath net
revenues increased 12.1% to $72.9 million, AOCF increased
18.6% to $28.5 million and operating income increased 38.0% to
$5.7 million, each as compared to the prior year period. The
improved results were driven primarily by a 33.1% increase in
revenue from Ethernet services offset in part by higher operating
expenses to support the increase in Ethernet installations.
Rainbow
Rainbow consists of Rainbow National Services (“RNS”) – AMC, WE
tv and IFC – as well as Other Programming which includes: Sundance
Channel, News 12 Networks, IFC Entertainment, Rainbow
Network Communications, Rainbow Advertising Sales Corp. and other
Rainbow ventures.
Rainbow net revenues for the third quarter of 2010 increased
12.0% to $291.4 million, AOCF rose 12.2% to
$96.4 million, and operating income grew 18.1% to
$63.0 million, all compared to the prior year period.
AMC/WE
tv/IFC
Third quarter 2010 net revenues grew 10.7% to
$228.2 million, AOCF rose 3.8% to $99.5 million, and
operating income grew 3.9% to $82.3 million, each compared to
the prior year period.
The third quarter 2010 AOCF results
reflect:
- Viewing subscriber increases of 2.8% at
AMC, 2.5% at IFC and 2.8% at WE tv, all compared to September
2009
- A 12.9% increase in advertising
revenue, as compared to the prior year period, driven principally
by higher pricing at AMC and WE tv
- A 16.6% increase in operating costs
compared to the prior year period, primarily due to increased
programming and marketing costs at AMC.
Other
Programming
Third quarter 2010 net revenues increased
13.5% to $68.3 million, AOCF deficit improved 68.4% to a
deficit of $3.1 million and operating loss improved 25.5% to a loss
of $19.3 million, all as compared to the prior year period. Revenue
growth was primarily due to increases at Sundance Channel, IFC
Entertainment and News 12 Networks. Improved operating results were
primarily driven by the aforementioned increase in revenue as well
as lower litigation costs relating to VOOM.
Newsday
The Newsday segment consists of Newsday, a daily newspaper that
primarily serves Long Island; amNewYork, a free daily serving New
York City; various Internet properties including Newsday.com; and
Star Community Publishing, a group of weekly shopper
publications.
Newsday's third quarter 2010 net revenues decreased 4.3% to
$76.5 million, AOCF decreased 28.3% to $4.0 million and
operating loss increased $0.9 million to a loss of
$1.7 million, all compared to the prior year period. The
revenue decline was primarily driven by a 7.6% decrease in
advertising revenue. The decrease in AOCF was due to the revenue
decline partially offset by lower compensation costs.
Other Matters
On November 3, 2010, the Board of Directors of Cablevision
declared a quarterly dividend of $0.125 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 December 6, 2010 to shareholders of record at the
close of business on November 15, 2010.
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 and stock
options, the settlement of an obligation 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 5 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.
COMPANY DESCRIPTION
Cablevision Systems Corporation is one of the nation's leading
telecommunications, media and entertainment companies. In addition
to its Optimum-branded cable, Internet, and voice offerings, the
company owns and operates News 12 Networks, MSG Varsity and Newsday
Media Group. Cablevision's assets also include Rainbow Media
Holdings LLC and its programming and entertainment businesses, AMC,
IFC, Sundance Channel, WE tv and IFC Entertainment, as well as
Clearview Cinemas. Additional information about Cablevision is
available on the Web at http://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.
Cablevision’s Web site:
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 18672455
Conference call replay number (706)
645-9291/ Conference ID Number 18672455 until November 11, 2010
CABLEVISION SYSTEMS CORPORATION
CONDENSED CONSOLIDATED OPERATIONS DATA
AND RECONCILIATION
(Dollars in thousands, except per share
data)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2010(a)
2009(a)
2010(a)
2009(a)
Revenues, net $ 1,807,551 $ 1,711,245 $
5,362,132 $ 5,079,714 Adjusted operating cash
flow $ 661,748 $ 638,454 $ 1,949,764 $ 1,827,181 Share-based
compensation expense (15,633 ) (14,745 ) (45,348 ) (47,271 )
Restructuring (expense) credit 568 (1,834 )
667 (5,690 ) Operating income before
depreciation and amortization 646,683 621,875 1,905,083 1,774,220
Depreciation and amortization (including impairments)
245,497 251,498 732,041
772,962 Operating income 401,186 370,377 1,173,042 1,001,258
Other income (expense): Interest expense, net (194,501 ) (182,438 )
(584,263 ) (561,804 ) Gain on sale of programming interests, net
103 455 307 1,674 Gain (loss) on investments, net 15,326 51,543
26,254 (349 ) Loss on equity derivative contracts, net (7,060 )
(43,833 ) (9,801 ) (1,095 ) Loss on interest rate swap contracts,
net (24,921 ) (44,146 ) (81,801 ) (63,975 ) Loss on extinguishment
of debt and write-off of deferred financing costs(b) - - (110,049 )
(22,044 ) Miscellaneous, net 431 240
857 569 Income from continuing
operations before income taxes 190,564 152,198 414,546 354,234
Income tax expense (78,201 ) (59,942 )
(162,792 ) (157,436 ) Income from continuing operations
112,363 92,256 251,754 196,798 Income (loss) from discontinued
operations, net of income taxes - 6,343
(4,122 ) 9,878 Net income 112,363 98,599
247,632 206,676 Net loss (income) attributable to noncontrolling
interests (302 ) 343 (547 ) 491
Net income attributable to Cablevision Systems Corporation
shareholders $ 112,061 $ 98,942 $ 247,085 $
207,167
Basic net income (loss) per share
attributable to Cablevision Systems Corporation shareholders:
Income from continuing operations $ 0.38 $ 0.32 $
0.85 $ 0.68 Income (loss) from discontinued
operations $ - $ 0.02 $ (0.01 ) $ 0.03 Net
income $ 0.38 $ 0.34 $ 0.84 $ 0.71
Basic weighted average common shares (in thousands) 293,671
292,346 294,438 291,418
Diluted net income (loss) per share attributable
to Cablevision Systems Corporation shareholders: Income from
continuing operations $ 0.37 $ 0.31 $ 0.83 $
0.66 Income (loss) from discontinued operations $ - $
0.02 $ (0.01 ) $ 0.03 Net income $ 0.37 $ 0.33
$ 0.82 $ 0.70 Diluted weighted average common
shares (in thousands) 302,143 300,079
302,958 297,418
Amounts
attributable to Cablevision Systems Corporation shareholders:
Income from continuing operations, net of income taxes $ 112,061 $
92,599 $ 251,207 $ 197,289 Income (loss) from discontinued
operations, net of income taxes - 6,343
(4,122 ) 9,878 Net income $ 112,061 $
98,942 $ 247,085 $ 207,167 (a)
Operating results of Madison Square Garden are included in
discontinued operations for all periods presented as applicable.
(b) The 2010 amount represents premiums paid to repurchase a
portion of Cablevision senior notes due April 2012 and related fees
associated with the tender offer and the write-off of unamortized
deferred financing costs related to such repurchases.
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:
- Depreciation and
amortization (including impairments). This adjustment
eliminates depreciation and amortization and impairments of
long-lived assets in all periods.
- 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.
- 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.
Nine Months Ended September 30,
2010(a)
2009(a)
CONSOLIDATED FREE
CASH FLOW FROM CONTINUING OPERATIONS(b)
Net cash provided by operating activities(c) $ 1,238,795 $
1,141,096 Less: capital expenditures(d) (582,395 )
(545,920 ) Consolidated free cash flow from continuing operations $
656,400 $ 595,176 (a) Operating results of
Madison Square Garden are included in discontinued operations for
all periods presented as applicable. Discontinued operations used a
total of $9.2 million in cash for the nine months ended September
30, 2010 and provided a total of $19.9 million in cash for the nine
months ended September 30, 2009. (b) See non-GAAP financial
measures on page 4 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 11 of this release for
additional details relating to capital expenditures.
CABLEVISION SYSTEMS CORPORATION
CONSOLIDATED RESULTS FROM CONTINUING
OPERATIONS
(Dollars in thousands)
(Unaudited)
REVENUES,
NET
Three Months Ended
September 30,
2010(a)
2009(a)
%
Change
Cable Television $ 1,365,965 $ 1,303,074 4.8 % Optimum Lightpath
72,946 65,077 12.1 % Eliminations(b) (5,461 ) (6,191
) 11.8 %
Total Telecommunications 1,433,450
1,361,960 5.2 % AMC/WE
tv/IFC 228,157 206,175 10.7 % Other Programming(c) 68,300 60,166
13.5 % Eliminations(b) (5,073 ) (6,236 ) 18.6 %
Total Rainbow 291,384
260,105 12.0 % Newsday
76,484 79,944 (4.3 )% Other(d) 19,140
21,274 (10.0 )% Eliminations(e) (12,907 ) (12,038 )
(7.2 )%
Total Cablevision
$
1,807,551
$
1,711,245
5.6
%
Nine Months Ended
September 30,
2010(a)
2009(a)
%
Change
Cable Television $ 4,080,870 $ 3,873,477 5.4 % Optimum
Lightpath 211,857 189,234 12.0 % Eliminations(b) (16,111 )
(16,467 ) 2.2 %
Total Telecommunications
4,276,616 4,046,244 5.7
% AMC/WE tv/IFC 663,449 599,322 10.7 % Other Programming(c)
188,768 179,517 5.2 % Eliminations(b) (15,285 )
(17,140 ) 10.8 %
Total Rainbow 836,932
761,699 9.9 % Newsday
231,278 252,032 (8.2 )% Other(d) 54,845
59,224 (7.4 )% Eliminations(e) (37,539 ) (39,485 )
4.9 %
Total Cablevision $ 5,362,132
$ 5,079,714 5.6 % (a)
Operating results of Madison Square Garden are included in
discontinued operations for all periods presented as applicable.
(b) Represents intra-segment revenues. (c) Includes News 12
Networks, VOOM HD Networks (domestic programming discontinued in
January 2009), Sundance, IFC Entertainment, Rainbow Network
Communications, Rainbow Advertising Sales Corp. and other Rainbow
businesses. (d) Represents net revenues primarily from Clearview
Cinemas and PVI Virtual Media. (e) Represents inter-segment
revenues.
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
September 30,
% Three Months Ended
September 30,
%
2010(a)
2009(a)
Change
2010(a)
2009(a)
Change Cable Television $ 563,323 $ 550,917 2.3 % $ 372,393
$ 350,185 6.3 % Optimum Lightpath 28,548
24,075 18.6 % 5,676 4,112 38.0 %
Total Telecommunications 591,871
574,992 2.9 % 378,069
354,297 6.7 % AMC/WE
tv/IFC 99,516 95,864 3.8 % 82,309 79,230 3.9 % Other Programming(b)
(3,133 ) (9,927 ) 68.4 % (19,283 )
(25,867 ) 25.5 %
Total Rainbow 96,383
85,937 12.2 %
63,026 53,363 18.1
% Newsday 3,998 5,573 (28.3
)% (1,729 ) (824 ) (109.8
)% Other(c) (30,504 ) (28,048 ) (8.8 )%
(38,180 ) (36,459 ) (4.7 )%
Total Cablevision
$
661,748
$
638,454
3.6
%
$
401,186
$
370,377
8.3
%
Adjusted Operating
Cash Flow
Operating Income
(Loss)
Nine Months Ended
September 30,
% Nine Months Ended
September 30,
%
2010(a)
2009(a)
Change
2010(a)
2009(a)
Change Cable Television $ 1,694,929 $ 1,579,294 7.3 % $
1,123,206 $ 966,015 16.3 % Optimum Lightpath 82,344
70,111 17.4 % 16,724 9,712
72.2 %
Total Telecommunications
1,777,273 1,649,405 7.8
% 1,139,930 975,727
16.8 % AMC/WE tv/IFC 302,531 276,422 9.4 %
251,276 224,802 11.8 % Other Programming(b) (37,865 )
(30,803 ) (22.9 )% (86,854 ) (83,878 ) (3.5 )%
Total Rainbow 264,666
245,619 7.8 % 164,422
140,924 16.7 %
Newsday 10,416 10,684 (2.5 )%
(7,700 ) (10,654 ) 27.7 %
Other(c) (102,591 ) (78,527 ) (30.6 )%
(123,610 ) (104,739 ) (18.0 )%
Total Cablevision
$ 1,949,764 $ 1,827,181
6.7 % $ 1,173,042 $
1,001,258 17.2 % (a) Operating
results of Madison Square Garden are included in discontinued
operations for all periods presented as applicable. (b) Includes
News 12 Networks, VOOM HD Networks (domestic programming
discontinued in January 2009), Sundance, IFC Entertainment, Rainbow
Network Communications, Rainbow Advertising Sales Corp. and other
Rainbow businesses. (c) Includes unallocated corporate general and
administrative costs and costs related to the acquisition of
Bresnan Cable, in addition to the operating results of MSG Varsity
(launched in September 2009), Clearview Cinemas and PVI Virtual
Media. In addition, 2009 amounts include costs historically
allocated to Madison Square Garden that were not eliminated as a
result of the MSG Distribution.
CABLEVISION SYSTEMS CORPORATION
SUMMARY OF OPERATING STATISTICS
(Unaudited)
CABLE
TELEVISION
September 30,
2010
June 30,
2010
September 30,
2009
Revenue Generating Units
(in thousands)
Basic Video Customers 3,043 3,067 3,066 iO Digital Video Customers
2,921 2,926 2,888 Optimum Online High-Speed Data Customers 2,647
2,637 2,522 Optimum Voice Customers 2,129
2,120 2,001
Total Revenue Generating
Units 10,740 10,750 10,477
Customer Relationships (in
thousands)
(a) 3,321 3,336 3,305
Homes Passed (in thousands) 4,867 4,853 4,803
Penetration Basic Video to Homes Passed 62.5 % 63.2 % 63.8 %
iO Digital to Basic Penetration 96.0 % 95.4 % 94.2 % Optimum Online
to Homes Passed 54.4 % 54.3 % 52.5 % Optimum Voice to Homes Passed
43.7 % 43.7 % 41.7 %
Revenues for the three
months ended
(dollars in millions)
Video(b) $ 805 $ 814 $ 771 High-Speed Data 296 300 287 Voice 205
202 194 Advertising 36 33 28 Other(c) 24 23
23 Total Cable Television Revenue $ 1,366
$ 1,372 $ 1,303
Average Monthly Revenue per Basic Video
Customer (“RPS”)(d)
$
149.04
$
149.12
$
141.03
(a) Number of customers who receive at
least one of the company’s services.
(b) Includes analog, digital, PPV, VOD and
DVR revenue.
(c) Includes installation revenue, NY
Interconnect, home shopping and other product offerings.
(d) 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.
RAINBOW
September 30,
2010
June 30,
2010
September 30,
2009
Viewing Subscribers
(in thousands)
AMC 89,300 88,500 86,900 WE tv 64,000 63,700 62,200 IFC 51,100
51,200 49,800 Sundance 39,100 39,000 34,000
CABLEVISION SYSTEMS CORPORATION
CAPITALIZATION AND LEVERAGE
(Dollars in thousands)
(Unaudited)
CAPITALIZATION
September 30, 2010 Cash and cash
equivalents $ 428,391 Bank debt $ 5,156,342 Senior notes and
debentures 5,612,794 Senior subordinated notes 324,007
Collateralized indebtedness 352,605 Capital lease obligations
52,958
Debt
$
11,498,706
LEVERAGE
Debt
$
11,498,706
Less: Collateralized indebtedness of unrestricted subsidiaries(a)
352,605 Cash and cash equivalents 428,391 Net debt $
10,717,710 Leverage Ratios(b) Consolidated net debt to AOCF
leverage ratio(a)(c) 4.1x Restricted Group leverage ratio (Bank
Test)(d)(e) 3.4x CSC Holdings notes and debentures leverage
ratio(d)(e) 3.4x Cablevision senior notes leverage ratio(e)(f) 4.7x
Rainbow National Services notes leverage ratio(g) 2.7x
(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 third
quarter 2010 results, as reported.
(d)
Reflects the debt to cash flow ratios
applicable under CSC Holdings’ bank credit 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 Rainbow and Newsday). The annualized AOCF (as defined) used in
the Restricted Group leverage ratio and the CSC Holdings notes and
debentures leverage ratio is $2.34 billion and $2.33 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 Rainbow National Services notes indentures. The annualized AOCF
(as defined) used in the notes ratio is $429.3 million.
CABLEVISION SYSTEMS CORPORATION
CAPITAL EXPENDITURES
(Dollars in thousands)
(Unaudited)
Three Months Ended
September 30,
2010(a)
2009(a)
CAPITAL EXPENDITURES Consumer premise
equipment $ 75,738 $ 84,989 Scalable infrastructure 59,892 37,151
Line extensions 8,768 8,289 Upgrade/rebuild 5,164 5,541 Support
32,833 23,335 Total Cable Television
182,395 159,305 Optimum Lightpath 28,328
19,121 Total Telecommunications 210,723 178,426 Rainbow
7,120 4,404 Newsday 1,025 2,133 Other (Corporate, Theatres, MSG
Varsity and PVI) 8,286 5,921
Total Cablevision
$
227,154
$
190,884
Nine Months Ended
September 30,
2010(a)
2009(a)
CAPITAL EXPENDITURES Consumer premise
equipment $ 242,660 $ 262,836 Scalable infrastructure 111,165
101,305 Line extensions 25,453 22,734 Upgrade/rebuild 13,752 14,181
Support 82,329 60,780 Total Cable
Television 475,359 461,836 Optimum Lightpath 72,779
55,738 Total Telecommunications 548,138 517,574
Rainbow 12,706 8,835 Newsday 3,342 5,704 Other (Corporate,
Theatres, MSG Varsity and PVI) 18,209 13,807
Total Cablevision $ 582,395 $ 545,920
(a) Capital expenditures of Madison Square Garden, now reflected
in discontinued operations, are not included in the table
above.
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