May 1, 2008 - Financial Tables
COMCAST CORPORATION
TABLE 1
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months Ended
(in millions, except per share data) March 31,
2008 2007
Revenues $8,389 $7,388
Operating expenses 3,107 2,759
Selling, general and administrative expenses 2,108 1,866
5,215 4,625
Operating cash flow 3,174 2,763
Depreciation expense 1,390 1,225
Amortization expense 229 277
1,619 1,502
Operating income 1,555 1,261
Other income (expense)
Interest expense (621) (568)
Investment income (loss), net 79 174
Equity in net (losses) income of
affiliates, net (35) (21)
Other income (expense) 268 513
(309) 98
Income before income taxes and
minority interest 1,246 1,359
Income tax expense (508) (526)
Income before minority interest 738 833
Minority interest (6) 4
Net income $732 $837
Diluted earnings per common share $0.24 $0.26
Adjusted earnings per common share (1) $0.19 $0.17
Diluted weighted-average number of
common shares 3,017 3,161
(1) Please refer to Table 7-B for a reconciliation of adjusted net income
and earnings per share.
COMCAST CORPORATION
TABLE 2
Condensed Consolidated Balance Sheet
(Unaudited)
(in millions) March 31, December 31,
2008 2007
ASSETS
Current Assets
Cash and cash equivalents $635 $963
Investments 86 98
Accounts receivable, net 1,497 1,645
Other current assets 886 961
Total current assets 3,104 3,667
Investments 5,800 7,963
Property and equipment, net 23,949 23,624
Franchise rights 59,447 58,077
Goodwill 14,867 14,705
Other intangible assets, net 4,690 4,739
Other noncurrent assets, net 967 642
$112,824 $113,417
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses
related to trade creditors $2,982 $3,336
Accrued expenses and other current
liabilities 3,071 3,121
Current portion of long-term debt 1,350 1,495
Total current liabilities 7,403 7,952
Long-term debt, less current portion 30,009 29,828
Deferred income taxes 27,116 26,880
Other noncurrent liabilities 7,110 7,167
Minority interest 388 250
Stockholders' equity 40,798 41,340
$112,824 $113,417
COMCAST CORPORATION
TABLE 3
Condensed Consolidated Statement of Cash Flows
(Unaudited)
(in millions) Three Months Ended
March 31,
2008 2007
OPERATING ACTIVITIES
Net cash provided by operating activities $2,259 $1,965
FINANCING ACTIVITIES
Proceeds from borrowings 192 3
Retirements and repayments of debt (218) (704)
Repurchases of common stock (1,000) (500)
Issuances of common stock 10 218
Other (28) 4
Net cash provided by (used in)
financing activities (1,044) (979)
INVESTING ACTIVITIES
Capital expenditures (1,431) (1,454)
Cash paid for software and other
intangible assets (126) (118)
Acquisitions, net of cash acquired (29) (9)
Proceeds from sales of investments 49 392
Purchases of investments (26) (21)
Other 20 22
Net cash provided by (used in)
investing activities (1,543) (1,188)
Increase (decrease) in cash and cash
equivalents (328) (202)
Cash and cash equivalents, beginning of period 963 1,239
Cash and cash equivalents, end of period $635 $1,037
TABLE 4
Calculation of Free Cash Flow, and Unlevered Free Cash Flow
(Unaudited) (1)
(in millions) Three Months Ended
March 31,
2008 2007
Net Cash Provided by Operating Activities $2,259 $1,965
Capital Expenditures (1,431) (1,454)
Cash Paid for Capitalized Software (99) (88)
Cash Paid for Other Intangible Assets (27) (30)
Nonoperating and Nonrecurring items,
net of tax:
Payment of Tax on Nonoperating Items - 49
Free Cash Flow 702 442
Cash paid Interest 708 662
Unlevered Free Cash Flow $1,410 $1,104
(1) See Non-GAAP and Other Financial Measures in Table 7 for the
definition of Free Cash Flow and Unlevered Free Cash Flow.
COMCAST CORPORATION
TABLE 5
Pro Forma Financial Data by Business Segment
(Unaudited)(1)
(in millions) Corporate
and
Cable Programming(2) Other Total
Three Months Ended March 31, 2008
Revenues $7,916 $363 $110 $8,389
Operating Cash Flow $3,142 $113 ($81) $3,174
Operating Income (Loss) $1,594 $59 ($98) $1,555
Operating Cash Flow Margin 39.7% 31.2% NM 37.8%
Capital Expenditures (3) $1,355 $4 $72 $1,431
Three Months Ended March 31, 2007
Revenues $7,212 $302 $88 $7,602
Operating Cash Flow $2,876 $65 ($96) $2,845
Operating Income (Loss) $1,399 $18 ($111) $1,306
Operating Cash Flow Margin 39.9% 21.3% NM 37.4%
Capital Expenditures (3) $1,480 $4 $7 $1,491
(1) See Non-GAAP and Other Financial Measures in Table 7. Historical
financial data by business segment, in accordance with generally
accepted accounting principles in the United States (GAAP), is
available in the Company's Annual Report on Form 10-K. All percentages
are calculated based on actual amounts. Minor differences may exist
due to rounding.
(2) Programming includes our national networks E! Entertainment Television
and Style Network (E! Networks), The Golf Channel, VERSUS and G4.
(3) Our Cable segment's capital expenditures are comprised of the
following categories:
1Q08 1Q07
Growth
Customer Premise Equipment (CPE) $819 $764
Scalable Infrastructure 59 103
Line Extensions 47 88
Support Capital 54 69
Upgrades (Capacity Expansion) 21 36
Business Services 51 24
1,051 1,084
Maintenance
CPE (Drop Replacements) 58 65
Scalable Infrastructure 103 160
Support Capital 42 60
Upgrades 61 96
264 381
Discretionary 40 15
Total $1,355 $1,480
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). 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). Upgrades include costs to enhance or replace
existing fiber/coaxial cable networks, including network improvements.
Business Services includes fiber/coax extension, electronics, CPE and
costs to secure new customers.
Management evaluates capital expenditures by categorizing investments into
three groups: Growth, Maintenance and Discretionary. Growth is directly
tied to revenue generation and represents the costs required to secure new
customers, revenue units or additional bandwidth revenues. Maintenance
includes investments that allow the company to maintain its competitive
position and provide a foundation for growth. Discretionary includes
investments that lay the groundwork for future products and services, such
as our investments in interactive advertising, cross-platform product
development or switched digital video.
COMCAST CORPORATION
TABLE 6
Pro Forma Data - Cable Segment Components
(Unaudited)(1) (2)
(in millions, except per subscriber Three Months Ended
and per unit data) March 31,
2008 2007
Revenues:
Video (3) $4,706 $4,491
High-speed Internet 1,750 1,569
Phone 587 356
Advertising 344 322
Other (4) 305 268
Franchise fees 224 206
Total Revenues * $7,916 $7,212
Operating Cash Flow $3,142 $2,876
Operating Income $1,594 $1,399
Operating Cash Flow Margin 39.7% 39.9%
Capital Expenditures $1,355 $1,480
* Total Revenues include revenues from Business Services of $120 million
in 1Q08 and $87 million in 1Q07.
1Q08 4Q07 1Q07
Video
Homes Passed (000's) 49,902 49,701 48,977
Basic Subscribers (000's) 24,691 24,748 25,005
Basic Penetration 49.5% 49.8% 51.1%
Quarterly Net Basic Subscriber
Additions (000's) (57) (100) 83
Digital Subscribers (000's) 16,015 15,521 13,665
Digital Penetration 64.9% 62.7% 54.6%
Quarterly Net Digital Subscriber
Additions (000's) 494 530 658
Digital Set-Top Boxes 25,856 24,957 21,121
Monthly Average Video Revenue
per Basic Subscriber $63.46 $61.54 $59.97
Monthly Average Total Revenue
per Basic Subscriber $106.74 $104.29 $96.30
High-Speed Internet
"Available" Homes (000's) 49,548 49,327 48,503
Subscribers (000's) 14,078 13,586 12,432
Penetration of "Available" Homes 28.4% 27.5% 25.6%
Quarterly Net Subscriber
Additions (000's) 492 341 586
Monthly Average Revenue per
Subscriber $42.18 $42.30 $43.08
Phone
Comcast Digital Voice
"Available" Homes (000's) 44,082 43,032 36,069
Subscribers (000's) 5,088 4,449 2,459
Penetration of "Available"
Homes 11.5% 10.3% 6.8%
Quarterly Net Subscriber
Additions (000's) 639 618 587
Monthly Average Digital Voice
Revenue per Subscriber $40.24 $40.46 $42.44
Circuit Switched Phone
"Available" Homes (000's) 5,029 5,026 8,989
Subscribers (000's) 66 176 560
Penetration of "Available"
Homes 1.3% 3.5% 6.2%
Quarterly Net Subscriber
Additions (000's) (110) (128) (93)
Monthly Average Circuit
Switched Phone Revenue per
Subscriber $40.61 $42.41 $45.28
Total Revenue Generating
Units (000's) (5) 59,939 58,480 54,120
Total Quarterly Net
Additions (000's) 1,458 1,261 1,821
(1) See Non-GAAP and Other Financial Measures in Table 7. All percentages
are calculated based on actual amounts. Minor differences may exist
due to rounding.
(2) Pro forma financial data includes the results of Comcast SportsNet Bay
Area and Comcast SportsNet New England acquired on June 30, 2007, the
cable system acquired from Patriot Media Holdings, LLC on August 31,
2007, and the cable systems resulting from the dissolution of the
Insight Midwest Partnership on January 1, 2008. Pro forma results are
presented as if the acquisitions and dispositions were effective on
January 1, 2007. The net impact of these transactions was an increase
of 765,000 basic cable subscribers.
(3) Video revenues consist of our basic, expanded basic, digital, premium,
pay-per-view and equipment services.
(4) Other revenues include installation revenues, guide revenues,
commissions from electronic retailing, other product offerings,
commercial data services and revenues of our digital media center and
regional sports programming networks.
(5) Represents the sum of basic and digital video, high-speed Internet and
net phone subscribers, excluding additional outlets. Subscriptions to
DVR and/or HDTV services do not result in additional RGUs.
COMCAST CORPORATION
TABLE 7
Non-GAAP and Other Financial Measures
Operating Cash Flow is the primary basis used to measure the operational strength and performance of our businesses. Free Cash Flow and Unlevered Free Cash Flow are additional performance measures used as indicators of our ability to service and repay debt, make investments and return capital to investors, through stock repurchases and dividends. We also adjust certain historical data on a pro forma basis following certain acquisitions or dispositions to enhance comparability. Operating Cash Flow is defined as operating income before depreciation and amortization, excluding impairment charges related to fixed and intangible assets and gains or losses on sale of assets, if any. 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 use 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 performance measure in 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 in the United States (GAAP), in the business segment footnote of our quarterly and annual financial statements. Therefore, we believe our measure of Operating Cash Flow for our business segments is not a "non-GAAP financial measure" as contemplated by Regulation G adopted by the Securities and Exchange Commission. Consolidated Operating Cash Flow is a non- GAAP financial measure. Free Cash Flow, which is a non-GAAP financial measure, is defined as "Net Cash Provided by Operating Activities" (as stated in our Consolidated Statement of Cash Flows) reduced by capital expenditures and cash paid for intangible assets; and adjusted for any payments related to certain nonoperating items, net of estimated tax benefits (such as income taxes on investment sales, and nonrecurring payments related to income tax and litigation contingencies of acquired companies). Unlevered Free Cash Flow is Free Cash Flow before cash paid interest. We believe that Free Cash Flow and Unlevered Free Cash Flow are also useful to investors as the basis for comparing our performance and coverage ratios with other companies in our industries, although our measure of Free Cash Flow and Unlevered Free Cash Flow may not be comparable to similar measures used by other companies. Pro forma data is used by management to evaluate performance when certain 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 or dispositions 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. In certain circumstances we also present "adjusted" data, to exclude certain gains, losses or other charges, net of tax (such as from the sales of investments or dispositions of businesses). This "adjusted" data is a non-GAAP measure. We believe, among other things, that the "adjusted" data may help investors evaluate our ongoing operations and can assist in making meaningful period-over-period comparisons. Operating Cash Flow, Free Cash Flow and Unlevered 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. 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. We provide reconciliations of Consolidated Operating Cash Flow in Table 1, Free Cash Flow and Unlevered Free Cash Flow in Table 4, Pro Forma in Table 7-A and Adjusted Data in Table 7-B.
COMCAST CORPORATION
TABLE 7-A
Reconciliation of GAAP to Pro Forma(1) Financial Data by Business Segment
(Unaudited)
GAAP
(in millions) Corporate,
Other and
Cable Programming Eliminations Total
Three Months Ended March 31, 2008
Revenue $7,916 $363 $110 $8,389
Operating Expenses (excluding
depreciation and amortization) 4,774 250 191 5,215
Operating Cash Flow $3,142 $113 ($81) $3,174
Depreciation and Amortization 1,548 54 17 1,619
Operating Income (Loss) $1,594 $59 ($98) $1,555
Capital Expenditures $1,355 $4 $72 $1,431
Three Months Ended March 31, 2007
Revenue $6,998 $302 $88 $7,388
Operating Expenses (excluding
depreciation and amortization) 4,205 237 183 4,625
Operating Cash Flow $2,793 $65 ($95) $2,763
Depreciation and Amortization 1,440 47 15 1,502
Operating Income (Loss) $1,353 $18 ($110) $1,261
Capital Expenditures $1,443 $4 $7 $1,454
Cable Total
(in millions) Pro Forma Pro Forma Total
Adjustments Pro Forma Adjustments Pro
(1) (2) Cable (1) (2) Forma
Three Months Ended March 31, 2008
Revenue $- $7,916 $- $8,389
Operating Expenses (excluding
depreciation and amortization) - 4,774 - 5,215
Operating Cash Flow $- $3,142 $- $3,174
Depreciation and Amortization - 1,548 - 1,619
Operating Income (Loss) $- $1,594 $- $1,555
Capital Expenditures $- $1,355 $- $1,431
Three Months Ended March 31, 2007
Revenue $214 $7,212 $214 $7,602
Operating Expenses (excluding
depreciation and amortization) 131 4,336 132 4,757
Operating Cash Flow $83 $2,876 $82 $2,845
Depreciation and Amortization 37 1,477 37 1,539
Operating Income (Loss) $46 $1,399 $45 $1,306
Capital Expenditures $37 $1,480 $37 $1,491
(1) Pro forma data is adjusted only for timing of acquisitions or
dispositions 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. Pro forma results are
presented as if the acquisitions and dispositions were effective on
January 1, 2007. Minor differences may exist due to rounding.
(2) Total Pro Forma adjustments and Cable Pro Forma adjustments for 2007
include the results of Comcast SportsNet Bay Area and Comcast
SportsNet New England, the cable system acquired from Patriot Media
Holdings, LLC and the cable systems resulting from the dissolution of
the Insight Midwest Partnership.
COMCAST CORPORATION
TABLE 7-B
Reconciliation of Net Income to Adjusted Net Income
(Unaudited)
Three Months Ended
March 31, 2008 vs. 2007
2008 2007 Growth (%)
(in millions, except
per share data) $ EPS(1) $ EPS(1) $ EPS(1)
Net Income $732 $0.24 $837 $0.26 (13%) (8%)
Adjustments:
Gain related to the
dissolution of the
Texas/Kansas City Cable
Partnership, net of
tax (2) - - (300) (0.09) NM NM
Gain related to the
dissolution of the
Insight Midwest
Partnership, net of
tax (3) (144) (0.05) - - NM NM
Adjusted Net Income $588 $0.19 $537 $0.17 10% 12%
(1) Based on diluted average number of common shares for the respective
periods as presented in Table 1.
(2) 2007 Net Income includes a one-time gain, net of tax, related to the
dissolution of the Texas/Kansas City Cable Partnership.
(3) 2008 Net Income includes a one-time gain, net of tax, related to the
dissolution of the Insight Midwest Partnership.
|
