Comcast Corporation
TABLE 1
Condensed Consolidated Statement of Operations (Unaudited)
(amounts in millions, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
Service revenues $4,584 $1,714 $9,040 $3,393
Net sales from electronic retailing 1,101 990 2,163 1,978
5,685 2,704 11,203 5,371
Cost of goods sold from electronic
retailing 697 626 1,370 1,255
Operating, selling, general and
administrative expenses 3,157 1,212 6,364 2,442
Operating cash flow 1,831 866 3,469 1,674
Depreciation and amortization 1,220 388 2,385 775
Operating income 611 478 1,084 899
Interest expense (492) (182) (1,017) (369)
Investment income (loss), net 9 (459) (221) (707)
Other income (expense), net 23 (35) 21 (63)
(460) (676) (1,217) (1,139)
Income (loss) before income taxes and
minority interest 151 (198) (133) (240)
Income tax benefit (expense) (77) 33 (9) 30
Minority interest (96) (45) (177) (89)
Net loss ($22) ($210) ($319) ($299)
Basic net loss per common share ($0.01) ($0.22) ($0.14) ($0.31)
Diluted net loss per common share ($0.01) ($0.22) ($0.14) ($0.31)
Basic and Diluted weighted average
number of common shares outstanding 2,255 952 2,255 952
Comcast Corporation
TABLE 2
Condensed Consolidated Balance Sheet (Unaudited)
(dollars in millions)
June 30, December 31,
2003 2002
ASSETS
CURRENT ASSETS
Cash and cash equivalents $1,324 $781
Investments 2,161 3,266
Accounts receivable, net 1,376 1,408
Inventories, net 506 479
Other current assets 526 1,142
Total current assets 5,893 7,076
INVESTMENTS 13,386 15,207
PROPERTY AND EQUIPMENT, NET 19,079 18,866
FRANCHISE RIGHTS AND GOODWILL 65,514 65,619
OTHER NONCURRENT ASSETS - including
other intangible assets, net 5,650 6,337
$109,522 $113,105
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable, accrued
expenses and other current
liabilities $7,124 $8,430
Short-term debt and current
portion of long-term debt 2,416 6,953
Total current liabilities 9,540 15,383
LONG-TERM DEBT, less current portion 29,923 27,957
OTHER NONCURRENT LIABILITIES &
MINORITY INTEREST 31,978 31,436
STOCKHOLDERS' EQUITY 38,081 38,329
$109,522 $113,105
Note:
The value of certain assets and liabilities in the November 2002 AT&T
Broadband acquisition are based on preliminary valuations and are
subject to adjustment as additional information is obtained, including
reports from valuation specialists and information related to the
cost of terminating or meeting contractual obligations.
Comcast Corporation
TABLE 3
Condensed Consolidated Statement of Cash Flows (Unaudited)
(dollars in millions)
Six Months Ended
June 30,
2003 2002
OPERATING ACTIVITIES
Net cash provided by operating activities $1,994 $1,050
FINANCING ACTIVITIES
Proceeds from borrowings 8,848 632
Retirements and repayments of debt (11,545) (1,169)
Other, net (3) 66
Net cash used in financing activities (2,700) (471)
INVESTING ACTIVITIES
Capital expenditures (2,041) (789)
Proceeds from restructuring of TWE
investment 2,100 -
Proceeds from sales of investments
and assets held for sale 1,492 596
Other, net (302) (178)
Net cash provided by (used in)
investing activities 1,249 (371)
INCREASE IN CASH AND CASH EQUIVALENTS 543 208
CASH AND CASH EQUIVALENTS, beginning of period 781 350
CASH AND CASH EQUIVALENTS, end of period $1,324 $558
Comcast Corporation
TABLE 4
Pro Forma Financial Data by Business Segment (Unaudited) (1)
(dollars in millions)
(2) (3) (4)
Content
and
Cable Commerce Other Total
Three Months Ended June 30, 2003
Revenues $4,379 $1,101 $205 $5,685
Operating Cash Flow $1,597 $219 $15 $1,831
Operating Income (Loss) $464 $185 ($38) $611
Operating Cash Flow Margin 36.5% 19.9% 7.2% 32.2%
Capital Expenditures (8) $1,047 $16 $7 $1,070
Three Months Ended June 30, 2002
Revenues $4,009 $990 $160 $5,159
Operating Cash Flow (5) $1,177 $194 $19 $1,390
Operating Income (Loss) (6) ($16,431) $165 ($42) ($16,308)
Operating Cash Flow Margin (5) 29.4% 19.6% 11.5% 26.9%
Capital Expenditures (7) $1,281 $51 $8 $1,340
Six Months Ended June 30, 2003
Revenues $8,610 $2,163 $429 $11,202
Operating Cash Flow $3,018 $430 $21 $3,469
Operating Income (Loss) $805 $365 ($86) $1,084
Operating Cash Flow Margin 35.1% 19.9% 4.9% 31.0%
Capital Expenditures (8) $2,000 $29 $12 $2,041
Six Months Ended June 30, 2002
Revenues $7,853 $1,978 $359 $10,190
Operating Cash Flow (5) $2,223 $386 $34 $2,643
Operating Income (Loss) (6) ($16,437) $330 ($94) ($16,201)
Operating Cash Flow Margin (5) 28.3% 19.5% 9.3% 25.9%
Capital Expenditures (7) $2,378 $83 $17 $2,478
(1) See Non-GAAP and Other Financial Measures in Table 8. Historical
financial data by business segment, as required under generally
accepted accounting principles, is available in the Company's
quarterly report on Form 10-Q.
(2) Pro forma financial data includes the results of AT&T Broadband
acquired in November 2002 (newly acquired systems). Pro forma
financial data excludes the results of the 314,000 cable subscribers
sold to Bresnan Communications in March 2003 and excludes the results
of the net reduction of 16,000 subscribers associated with the cable
system exchange with Insight Communications in February 2003.
(3) Pro forma financial data excludes the results of QVC's infomercial
operations in Mexico which were sold in February 2003.
(4) Content and Other includes segments not meeting quantitative
guidelines for reporting, including our content and business
communications operations, and corporate expenses. It also includes
elimination entries related to the segments presented. Content
includes E! Networks (E! Entertainment and Style), Comcast-Spectacor,
The Golf Channel, Outdoor Life Network and G4. Revenues and Operating
Cash Flow of our content businesses for the three and six months
ended June 30, 2003 and 2002 were as follows:
Three Months Six Months
Ended June 30, Ended June 30,
2003 2002 2003 2002
Revenue $220 $180 $462 $399
Operating Cash Flow $69 $56 $119 $112
Operating Cash Flow
Margin 31.5% 30.9% 25.7% 28.0%
(5) Included for the three and six months ended June 30, 2002 are
acquisition & employee termination related costs of $100 and $188
million, respectively, incurred by AT&T Broadband prior to the
acquisition of AT&T Broadband by Comcast.
(6) Includes $16.525 billion impairment charge related to the write down
of AT&T Broadband goodwill and cable franchise rights.
(7) For newly acquired systems, includes capital expenditures made since
January 1, 2002.
(8) Our Cable segment's capital expenditures are comprised of the
following categories:
Recurring
YTD Capital
2Q03 06/30/03 Percentage*
Customer Premise Equipment (CPE) $381 $767 15%-25%
Scalable Infrastructure 81 135 2%-10%
Line Extensions 57 111 -
Upgrade/Rebuild 417 759 20%-30%
Support Capital 111 228 100%
Total $1,047 $2,000
|
CPE includes costs incurred at the customer residence to secure new customers, revenue units and additional bandwidth revenues (e.g. digital converters). Scalable infrastructure includes costs, not CPE or network related, to secure growth of new customers, revenue units and additional bandwidth revenues or provide service enhancements (e.g. headend equipment). Line extensions include network costs associated with entering new service areas (e.g. fiber/coaxial cable). Upgrade/rebuild includes costs to enhance or replace existing fiber/coaxial cable networks, including recurring betterments. Support capital includes costs associated with the replacement or enhancement of non-network assets due to obsolescence and wear out (e.g. non- network equipment, land, buildings and vehicles). |
* Represents an estimate of the recurring capital expenditures for each of
the above components.
Comcast Corporation
TABLE 5
Pro Forma Data - Cable Segment Components (Unaudited) (1)(2)
(dollars in millions, except average revenue per basic subscriber data)
Historical Newly Acquired
Systems (3) Systems (3) Total
Three Months Ended
June 30 2003 2002 2003 2002 2003 2002
Revenues:
Video (4) $1,257 $1,186 $1,780 $1,702 $3,037 $2,888
High-Speed Internet 229 140 319 209 548 349
Phone 5 6 200 202 205 208
Advertising 109 100 176 164 285 264
Other (5) 63 58 90 103 153 161
Franchise Fees 53 51 98 88 151 139
Total Revenues $1,716 $1,541 $2,663 $2,468 $4,379 $4,009
Average Total Revenue
per Basic Subscriber $66.93 $60.39 $69.30 $63.33 $68.35 $61.95
Operating Cash
Flow (6) $738 $653 $859 $524 $1,597 $1,177
Operating Income
(Loss) (7) $413 $355 $51 ($16,786) $464 ($16,431)
Operating Cash Flow
Margin (6) 43.0% 42.4% 32.3% 21.2% 36.5% 29.4%
Capital
Expenditures (8) $350 $331 $697 $950 $1,047 $1,281
Operating Cash Flow
(Deficit), Net of
Capital Expenditures $388 $322 $162 ($426) $550 ($104)
Historical Newly Acquired
Systems (3) Systems (3) Total
Six Months Ended
June 30 2003 2002 2003 2002 2003 2002
Revenues:
Video (4) $2,486 $2,335 $3,532 $3,380 $6,018 $5,715
High-Speed Internet 433 259 607 402 1,040 661
Phone 12 12 418 371 430 383
Advertising 202 181 319 300 521 481
Other (5) 124 121 175 205 299 326
Franchise Fees 104 102 198 185 302 287
Total Revenues $3,361 $3,010 $5,249 $4,843 $8,610 $7,853
Average Total Revenue
per Basic Subscriber $65.54 $59.02 $68.40 $61.79 $67.24 $60.47
Operating Cash
Flow (6) $1,413 $1,250 $1,605 $973 $3,018 $2,223
Operating Income
(Loss) (7) $789 $659 $16 ($17,096) $805 ($16,437)
Operating Cash Flow
Margin (6) 42.0% 41.5% 30.6% 20.1% 35.1% 28.3%
Capital
Expenditures (8) $685 $689 $1,315 $1,689 $2,000 $2,378
Operating Cash Flow
(Deficit), Net of
Capital Expenditures $728 $561 $290 ($716) $1,018 ($155)
(1) See Non-GAAP and Other Financial Measures in Table 8.
(2) Pro forma financial data includes the results of AT&T Broadband
acquired in November 2002 (newly acquired systems). Pro forma
financial data excludes the results of the 314,000 cable subscribers
sold to Bresnan Communications in March 2003 and excludes the results
of the net reduction of 16,000 subscribers associated with the cable
system exchange with Insight Communications in February 2003.
(3) Historical systems represent those cable businesses operated by the
Company prior to the acquisition of AT&T Broadband. The newly
acquired systems represent those cable businesses acquired from AT&T.
(4) Video revenues consist of our basic, expanded basic, premium, pay-
per-view, equipment and digital services.
(5) Other revenues include installation revenues, guide revenues,
commissions from electronic retailing, other product offerings and
revenues of our digital media center and regional sports programming
networks.
(6) Included for the three and six months ended June 30, 2002 are
acquisition & employee termination related costs of $100 and $188
million, respectively, incurred by AT&T Broadband prior to the
acquisition of AT&T Broadband by Comcast.
(7) Includes $16.525 billion impairment charge related to the write down
of AT&T Broadband goodwill and cable franchise rights.
(8) For newly acquired systems, includes capital expenditures made since
January 1, 2002.
Comcast Corporation
TABLE 6
Pro Forma Data - Cable Segment (Unaudited) (1)(2)
Historical Systems (3)
2Q03 1Q03 2Q02
Cable
Homes Passed (000's) 14,364.2 14,281.3 14,067.6
Subscribers (000's) 8,536.5 8,559.6 8,507.5
Penetration 59.4% 59.9% 60.5%
Quarterly Net Subscriber
Additions (000's) (23.1) 14.1 (10.5)
Digital Cable
"Digital Ready"
Subscribers (000's) 8,536.5 8,559.6 8,476.1
Subscribers (000's) 2,417.6 2,322.7 1,982.2
Penetration 28.3% 27.1% 23.4%
Quarterly Net Subscriber
Additions (000's) 94.9 76.4 125.7
Monthly Average Revenue
per Subscriber $15.47 $15.42 $14.84
High-Speed Internet
"Available" Homes (000's) 13,424.7 13,026.2 11,574.9
Subscribers (000's) 1,881.8 1,718.2 1,169.1
Penetration 14.0% 13.2% 10.1%
Quarterly Net Subscriber
Additions (000's) 163.6 192.2 128.6
Monthly Average Revenue
per Subscriber $42.31 $41.97 $42.23
Phone
"Available" Homes (000's) 355.5 320.9 272.8
Subscribers (000's) 38.5 38.0 40.6
Penetration 10.8% 11.8% 14.9%
Quarterly Net Subscriber
Additions (000's) 0.5 (1.5) (1.2)
Monthly Average Revenue
per Subscriber $49.58 $50.18 $51.14
Total Revenue Generating
Units (000's) (4) 12,874.4 12,638.5 11,699.4
Comcast Corporation
TABLE 6
Pro Forma Data - Cable Segment (Unaudited) (1)(2)
Newly Acquired Systems (3)
2Q03 1Q03 2Q02
Cable
Homes Passed (000's) 25,144.3 25,042.1 24,536.8
Subscribers (000's) 12,827.6 12,792.4 12,930.5
Penetration 51.0% 51.1% 52.7%
Quarterly Net Subscriber
Additions (000's) 35.2 42.6 (122.8)
Digital Cable
"Digital Ready"
Subscribers (000's) 12,827.6 12,792.4 12,930.5
Subscribers (000's) 4,532.6 4,465.4 3,841.1
Penetration 35.3% 34.9% 29.7%
Quarterly Net Subscriber
Additions (000's) 67.2 92.1 198.6
Monthly Average Revenue
per Subscriber $15.18 $14.73 $14.26
High-Speed Internet
"Available" Homes (000's) 18,698.9 18,080.7 15,977.0
Subscribers (000's) 2,506.5 2,319.2 1,745.3
Penetration 13.4% 12.8% 10.9%
Quarterly Net Subscriber
Additions (000's) 187.3 224.8 135.6
Monthly Average Revenue
per Subscriber $44.11 $43.44 $41.59
Phone
"Available" Homes (000's) 8,808.4 8,674.2 7,617.0
Subscribers (000's) 1,328.0 1,380.8 1,220.2
Penetration 15.1% 15.9% 16.0%
Quarterly Net Subscriber
Additions (000's) (52.8) (18.1) 105.3
Monthly Average Revenue
per Subscriber $49.16 $52.35 $57.56
Total Revenue Generating
Units (000's) (4) 21,194.7 20,957.8 19,737.1
Comcast Corporation
TABLE 6
Pro Forma Data - Cable Segment (Unaudited) (1)(2)
Total
2Q03 1Q03 2Q02
Cable
Homes Passed (000's) 39,508.5 39,323.4 38,604.4
Subscribers (000's) 21,364.1 21,352.0 21,438.0
Penetration 54.1% 54.3% 55.5%
Quarterly Net Subscriber
Additions (000's) 12.1 56.7 (133.3)
Digital Cable
"Digital Ready"
Subscribers (000's) 21,364.1 21,352.0 21,406.6
Subscribers (000's) 6,950.2 6,788.1 5,823.3
Penetration 32.5% 31.8% 27.2%
Quarterly Net Subscriber
Additions (000's) 162.1 168.5 324.3
Monthly Average Revenue
per Subscriber $15.28 $14.96 $14.46
High-Speed Internet
"Available" Homes (000's) 32,123.6 31,106.9 27,551.9
Subscribers (000's) 4,388.3 4,037.4 2,914.4
Penetration 13.7% 13.0% 10.6%
Quarterly Net Subscriber
Additions (000's) 350.9 417.0 264.2
Monthly Average Revenue
per Subscriber $43.34 $42.82 $41.85
Phone
"Available" Homes (000's) 9,163.9 8,995.1 7,889.8
Subscribers (000's) 1,366.5 1,418.8 1,260.8
Penetration 14.9% 15.8% 16.0%
Quarterly Net Subscriber
Additions (000's) (52.3) (19.6) 104.1
Monthly Average Revenue
per Subscriber $49.17 $52.29 $57.34
Total Revenue Generating
Units (000's) (4) 34,069.1 33,596.3 31,436.5
Supplemental Information - Pro Forma Historical Data
(dollars in millions)
Revenue 2Q03 1Q03 4Q02 3Q02 2Q02 1Q02
Historical
Systems $1,716 $1,645 $1,601 $1,548 $1,541 $1,469
Newly Acquired
Systems 2,663 2,586 2,548 2,487 2,468 2,375
Total $4,379 $4,231 $4,149 $4,035 $4,009 $3,844
Operating Cash Flow
Historical
Systems $738 $675 $645 $647 $653 $597
Newly Acquired
Systems 859 746 403 551 524 449
Operating Cash
Flow (5) $1,597 $1,421 $1,048 $1,198 $1,177 $1,046
Acquisition &
employee
termination
related costs
included in
Operating
Cash Flow (5) 130 107 100 88
Adjusted Operating Cash Flow $1,178 $1,305 $1,277 $1,134
(1) See Non-GAAP and Other Financial Measures in Table 8.
(2) Pro forma financial data includes the results of AT&T Broadband
acquired in November 2002 (newly acquired systems). Pro forma
financial data excludes the results of the 314,000 cable subscribers
sold to Bresnan Communications in March 2003 and excludes the
results of the net reduction of 16,000 subscribers associated with
the cable system exchange with Insight Communications in February
2003. Pro forma subscriber data includes the results of 6,100
subscribers from Telemedia, Inc. in June 2003.
(3) Historical systems represent those cable businesses operated by the
Company prior to the acquisition of AT&T Broadband. The newly
acquired systems represent those cable businesses acquired from
AT&T.
(4) The sum total of all primary analog video, digital video, high-speed
Internet and phone customers, but excluding additional outlets.
(5) Included for the four quarters ended December 31, 2002 are
acquisition & employee termination related costs incurred by AT&T
Broadband prior to the acquisition of AT&T Broadband by the Company.
Comcast Corporation
TABLE 7
Pro Forma Data - Commerce Segment (QVC) (Unaudited) (1)
(dollars and homes in millions)
Domestic (2) Germany UK Japan Total
Three Months Ended June 30, 2003
Revenue $862 $100 $83 $56 $1,101
Gross Margin 37.0% 34.4% 35.7% 37.7% 36.7%
Operating Cash Flow $196 $7 $7 $9 $219
Operating Income $172 $2 $4 $7 $185
Operating Cash Flow
Margin 22.7% 7.3% 8.5% 16.1% 19.9%
Average Homes (3) 76.0 26.3 12.1 7.4 N/A
Revenue per Average Home
(in local currency) $11.34 3.34* 4.24** 896.26*** N/A
Three Months Ended June 30, 2002
Revenue $844 $63 $66 $17 $990
Gross Margin 37.5% 28.6% 34.4% 35.2% 36.7%
Operating Cash Flow
(Deficit) $192 $0 $4 ($2) $194
Operating Income (Loss) $169 ($1) $2 ($5) $165
Operating Cash
Flow Margin 22.7% 0.0% 5.9% (8.1%) 19.6%
Average Homes (3) 74.2 25.0 10.4 4.5 N/A
Revenue per Average Home
(in local currency) $11.29 2.72* 4.33** 483.41*** N/A
Six Months Ended June 30, 2003
Revenue $1,710 $195 $162 $96 $2,163
Gross Margin 37.0% 33.5% 36.2% 37.4% 36.7%
Operating Cash Flow $389 $13 $14 $14 $430
Operating Income $341 $4 $9 $11 $365
Operating Cash
Flow Margin 22.8% 6.6% 8.8% 14.7% 19.9%
Average Homes (3) 75.8 26.2 11.8 7.1 N/A
Revenue per Average Home
(in local currency) $22.50 6.78* 8.50** 1,627.41*** N/A
Six Months Ended June 30, 2002
Revenue $1,692 $123 $134 $29 $1,978
Gross Margin 37.2% 29.8% 34.8% 34.8% 36.5%
Operating Cash Flow
(Deficit) $380 $0 $10 ($4) $386
Operating Income (Loss) $334 ($3) $6 ($7) $330
Operating Cash
Flow Margin 22.4% 0.4% 7.2% (13.1%) 19.5%
Average Homes (3) 73.8 24.7 10.0 4.1 N/A
Revenue per Average Home
(in local currency) $22.74 5.53* 9.14** 901.13*** N/A
* Currency is measured in euros.
** Currency is measured in British pounds sterling.
*** Currency is measured in yen.
(1) Financial data excludes the results of QVC's infomercial operations
in Mexico which were sold in February 2003.
(2) Domestic includes the U.S. channel, infomercial business and
QVC.com.
(3) Note that while QVC has the potential to serve this many homes in
Germany, it is estimated that approximately 50% of the serviced homes
are programmed to receive the QVC channel.
COMCAST CORPORATION
TABLE 8
Non-GAAP and Other Financial Measures
Prior to the first quarter of 2003, we described the performance measure, operating income before depreciation and amortization, as Operating Cash Flow. In the first quarter of 2003, we referred to the same measure as EBITDA (earnings before interest, taxes, depreciation and amortization) in response to new guidance on Non-GAAP measures provided by the SEC in Regulation G and amendments to Item 10 of Regulation S-K. In the second quarter, we reverted back to describing this measure as Operating Cash Flow based on additional guidance provided by the SEC staff. This is only a change in terminology. We have not changed the calculation of this measure.
Operating Cash Flow is the primary basis used to measure the operational strength and performance of our businesses. Free Cash Flow is an additional performance measure used as an indicator of our ability to service debt and make strategic investments. We use Debt Excluding Exchangeables as a measure of debt that will require cash from future operations or financings. We also adjust certain historical data on a pro forma basis following significant acquisitions or dispositions to enhance comparability.
Operating Cash Flow is defined as operating income before depreciation and amortization and impairment charges, if any, related to fixed and intangible assets. As such, it eliminates the significant level of non-cash depreciation and amortization expense that results from the capital intensive nature of our businesses and intangible assets recognized in business combinations, and is unaffected by our capital structure or investment activities. Our management and Board of Directors uses this measure in evaluating our consolidated operating performance and the operating performance of all of our operating segments. This metric is used to allocate resources and capital to our operating segments and is a significant component of our annual incentive compensation programs. We believe that Operating Cash Flow is also useful to investors as it is one of the bases for comparing our operating performance with other companies in our industries, although our measure of Operating Cash Flow may not be directly comparable to similar measures used by other companies.
As Operating Cash Flow is the measure of our segment profit or loss, we reconcile it to operating income, the most directly comparable financial measure calculated and presented in accordance with Generally Accepted Accounting Principles (GAAP), in the business segment footnote of our quarterly and annual financial statements. Therefore, we believe our measure of Operating Cash Flow is not a "non-GAAP financial measure" as contemplated by Regulation G adopted by the Securities and Exchange Commission.
Free Cash Flow, which is a non-GAAP financial measure, is defined as Operating Cash Flow less net interest, cash paid for taxes, and capital expenditures. As such, it is unaffected by fluctuations in working capital levels from period to period. It can also be computed as cash provided by operating activities less capital expenditures adjusted for the change in operating assets and liabilities, net of acquisitions.
Debt Excluding Exchangeables, which is a non-GAAP financial measure, refers to the aggregate amount of our consolidated debt and capital lease obligations less the amount of notes that are collateralized by securities that we own.
Pro Forma data is used by management to evaluate performance when significant acquisitions or dispositions occur. Historical data reflects results of acquired businesses only after the acquisition dates while pro forma data enhances comparability of financial information between periods by adjusting the data as if the acquisitions (or dispositions) occurred at the beginning of the prior year. Our pro forma data is only adjusted for the timing of acquisitions and does not include adjustments for costs related to integration activities, cost savings or synergies that have been or may be achieved by the combined businesses. We believe our pro forma data is not a non-GAAP financial measure as contemplated by Regulation G.
Operating Cash Flow and Free Cash Flow should not be considered as substitutes for operating income (loss), net income (loss), net cash provided by operating activities or other measures of performance or liquidity reported in accordance with GAAP. Debt Excluding Exchangeables should not be considered as a substitute for Total Debt. Additionally, in the opinion of management, our pro forma data is not necessarily indicative of future results or what results would have been had the acquired businesses been operated by us after the assumed earlier date.
Following are quantitative reconciliations of Free Cash Flow and Debt Excluding Exchangeables, and, although not required by Regulation G, reconciliations of Operating Cash Flow and pro forma data.
|
Comcast Corporation
TABLE 8-A continued
Reconciliations of Historical and Pro Forma Data by Business Segment
(Unaudited)
(dollars in millions)
Historical
Content
and
Cable Commerce Other Total
Three Months Ended June 30, 2003
Revenues $4,379 $1,101 $205 $5,685
Operating expenses (excluding
depreciation & amortization) 2,782 882 190 3,854
Operating Cash Flow $1,597 $219 $15 $1,831
Depreciation and amortization 1,133 34 53 1,220
Operating income (loss) $464 $185 ($38) $611
Capital expenditures $1,047 $16 $7 $1,070
Content
and
Cable Commerce Other Total
Three Months Ended June 30, 2002
Revenues $1,541 $990 $173 $2,704
Operating expenses (excluding
depreciation & amortization) 887 796 155 1,838
Operating Cash Flow $654 $194 $18 $866
Depreciation and amortization 298 29 61 388
Impairment charge - - - -
Operating income (loss) $356 $165 ($43) $478
Capital expenditures $331 $51 $8 $390
Content
and
Cable Commerce Other Total
Six Months Ended June 30, 2003
Revenues $8,611 $2,163 $429 $11,203
Operating expenses (excluding
depreciation & amortization) 5,593 1,733 408 7,734
Operating Cash Flow $3,018 $430 $21 $3,469
Depreciation and amortization 2,213 65 107 2,385
Operating income (loss) $805 $365 ($86) $1,084
Capital expenditures $2,000 $29 $12 $2,041
Content
and
Cable Commerce Other Total
Six Months Ended June 30, 2002
Revenues $3,010 $1,978 $383 $5,371
Operating expenses (excluding
depreciation & amortization) 1,759 1,592 346 3,697
Operating Cash Flow $1,251 $386 $37 $1,674
Depreciation and amortization 591 56 128 775
Impairment charge - - - -
Operating income (loss) $660 $330 ($91) $899
Capital expenditures $689 $83 $17 $789
Adjustments (1)
Content
Cable and Other Pro forma
Three Months Ended June 30, 2003
Revenues - - $5,685
Operating expenses (excluding
depreciation & amortization) - - 3,854
Operating Cash Flow - - $1,831
Depreciation and amortization - - 1,220
Operating income (loss) - - $611
Capital expenditures - - $1,070
Adjustments (1)
Content
Cable and Other Pro forma
Three Months Ended June 30, 2002
Revenues $2,468 ($13) $5,159
Operating expenses (excluding
depreciation & amortization) 1,945 (14) 3,769
Operating Cash Flow $523 $1 $1,390
Depreciation and amortization 785 - 1,173
Impairment charge 16,525 - 16,525
Operating income (loss) ($16,787) $1 ($16,308)
Capital expenditures $950 - $1,340
Adjustments (1)
Content
Cable and Other Pro forma
Six Months Ended June 30, 2003
Revenues ($1) - $11,202
Operating expenses (excluding
depreciation & amortization) (1) - 7,733
Operating Cash Flow - - $3,469
Depreciation and amortization - - 2,385
Operating income (loss) - - $1,084
Capital expenditures - - $2,041
Adjustments (1)
Content
Cable and Other Pro forma
Six Months Ended June 30, 2002
Revenues $4,843 ($24) $10,190
Operating expenses (excluding
depreciation & amortization) 3,871 (21) 7,547
Operating Cash Flow $972 ($3) $2,643
Depreciation and amortization 1,544 - 2,319
Impairment charge 16,525 - 16,525
Operating income (loss) ($17,097) ($3) ($16,201)
Capital expenditures $1,689 - $2,478
Reconciliation of Total Debt to Debt Excluding Exchangeables (Unaudited)
(dollars in millions)
As of June 30, 2003
Current portion of long-term debt $2,416
Long-term debt 29,923
Total Debt $32,339
Exchangeable debt 5,613
Debt excluding exchangeables $26,726
(1) Pro forma data is only adjusted for timing of the acquisitions (or
dispositions) and for acquisitions does not include adjustments for
costs related to integration activities, cost savings or synergies
that have been or may be achieved by the combined businesses.
Comcast Corporation
TABLE 8-B continued
Reconciliations of Cable Segment Historical and Pro Forma Data (Unaudited)
(dollars in millions)
Three Months Ended
December 31, 2002 Historical Adjustments (1) Pro forma
Revenues $2,792 $1,357 $4,149
Operating expenses (excluding
depreciation & amortization) 1,890 1,211 3,101
Operating Cash Flow 902 146 1,048
Depreciation and amortization 770 421 1,191
Operating income (loss) $132 ($275) ($143)
Three Months Ended
September 30, 2002 Historical Adjustments (1) Pro forma
Revenues $1,548 $2,487 $4,035
Operating expenses (excluding
depreciation & amortization) 901 1,936 2,837
Operating Cash Flow 647 551 1,198
Depreciation and amortization 309 777 1,086
Operating income (loss) $338 ($226) $112
Three Months Ended
June 30, 2002 Historical Adjustments (1) Pro forma
Revenues $1,541 $2,468 $4,009
Operating expenses (excluding
depreciation & amortization) 888 1,944 2,832
Operating Cash Flow 653 524 1,177
Depreciation and amortization 298 785 1,083
Impairment charge - 16,525 16,525
Operating income (loss) $355 ($16,786) ($16,431)
Three Months Ended
March 31, 2002 Historical Adjustments (1) Pro forma
Revenues $1,469 $2,375 $3,844
Operating expenses (excluding
depreciation & amortization) 872 1,926 2,798
Operating Cash Flow 597 449 1,046
Depreciation and amortization 293 759 1,052
Operating income (loss) $304 ($310) ($6)
(1) Pro forma data is only adjusted for timing of the acquisitions (or
dispositions) and for acquisitions does not include adjustments for
costs related to integration activities, cost savings or synergies
that have been or may be achieved by the combined businesses.
Comcast Corporation
TABLE 8-C continued
Reconciliation of Net Income (Loss) to Free Cash Flow (Unaudited)
(dollars in millions, except per share data)
Three Months Ended
June 30,
2003 2002
$ per share (3) $ per share (3)
Net Income (Loss) as reported ($22) ($0.01) ($210) ($0.22)
Non-operating items, net of tax (1) 42 0.02 350 0.37
Net Income (Loss) as adjusted $20 $0.01 $140 $0.15
Items to reconcile net income (loss)
as adjusted to Operating Cash Flow:
Depreciation & amortization 1,220 0.54 388 0.41
Interest expense 492 0.22 182 0.19
Income tax expense 99 0.04 156 0.16
Operating Cash Flow $1,831 $0.81 $866 $0.91
2003 2002
Operating Cash Flow $1,831 $1,831 $866 $866
Less:
Interest, net (2) (526) (526) (164) (164)
Cash Paid for Income Taxes (156) (156) (129) (129)
Change in Operating Assets &
Liabilities, net of acquisitions 45 (42)
Net Cash Provided by Operating
Activities $1,194 $531
Less: Capital Expenditures (1,070) (390)
Free Cash Flow $79 $183
Three Months Ended
June 30,
(1) Detail of non-operating items: 2003 2002
$ per share (3) $ per share (3)
Investment (income) expense -
mark to market adjustments on
trading securities, derivatives
and hedged items, net $25 $0.01 $159 $0.17
Investment (income) expense -
(gain) loss on sales and
exchanges of investments - - 103 0.11
Investment expense - investment
impairment losses (4) 15 0.01 208 0.22
All other, net (5) 24 0.01 69 0.07
Total non-operating items 64 0.03 539 0.57
Tax effect (22) (0.01) (189) (0.20)
Non-operating items, net of tax $42 $0.02 $350 $0.37
(2) Includes interest expense net of interest income and excludes non-
cash interest.
(3) Diluted weighted average shares outstanding for the three and six
months ended June 30, 2003 were 2.255 billion and for the three and
six months ended June 30, 2002 were 952 million, respectively.
(4) We record losses on our investments for which we have determined
that a decline in value of the investment was considered other than
temporary.
(5) Includes investment, interest and dividend income, equity in net
(income) losses of affiliates, other income (expense) and minority
interest.
Six Months Ended
June 30,
2003 2002
$ per share (3) $ per share (3)
Net Income (Loss) as reported ($319) ($0.14) ($299) ($0.31)
Non-operating items, net of tax (1) 245 0.11 559 0.58
Net Income (Loss) as adjusted ($74) ($0.03) $260 $0.27
Items to reconcile net income (loss)
as adjusted to Operating Cash Flow:
Depreciation & amortization 2,385 1.06 775 0.81
Interest expense 1,017 0.45 369 0.39
Income tax expense 141 0.06 270 0.29
Operating Cash Flow $3,469 $1.54 $1,674 $1.76
2003 2002
Operating Cash Flow $3,469 $3,469 $1,674 $1,674
Less:
Interest, net (2) (1,066) (1,066) (335) (335)
Cash Paid for Income Taxes (197) (197) (159) (159)
Change in Operating Assets &
Liabilities, net of acquisitions (212) (130)
Net Cash Provided by Operating
Activities $1,994 $1,050
Less: Capital Expenditures ($2,041) (789)
Free Cash Flow $165 $391
Six Months Ended
June 30,
(1) Detail of non-operating items: 2003 2002
$ per share (3) $ per share (3)
Investment (income) expense -
mark to market adjustments on
trading securities, derivatives
and hedged items, net $255 $0.11 $403 $0.42
Investment (income) expense -
(gain) loss on sales and
exchanges of investments (22) (0.01) 101 0.11
Investment expense - investment
impairment losses (4) 70 0.03 221 0.23
All other, net (5) 74 0.04 135 0.14
Total non-operating items 377 0.17 860 0.90
Tax effect (132) (0.06) (301) (0.32)
Non-operating items, net of tax $245 $0.11 $559 $0.58
(2) Includes interest expense net of interest income and excludes non-
cash interest.
(3) Diluted weighted average shares outstanding for the three and six
months ended June 30, 2003 were 2.255 billion and for the three and
six months ended June 30, 2002 were 952 million, respectively.
(4) We record losses on our investments for which we have determined
that a decline in value of the investment was considered other than
temporary.
(5) Includes investment, interest and dividend income, equity in net
(income) losses of affiliates, other income (expense) and minority
interest.
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