July 26, 2007 - Financial Tables
COMCAST CORPORATION
TABLE 1
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months Ended Six Months Ended
(in millions, except per June 30, June 30,
share data) 2007 2006 2007 2006
Revenues $7,712 $5,908 $15,100 $11,503
Operating expenses 2,754 2,130 5,513 4,203
Selling, general and
administrative expenses 1,946 1,467 3,812 2,889
4,700 3,597 9,325 7,092
Operating cash flow 3,012 2,311 5,775 4,411
Depreciation expense 1,252 905 2,477 1,785
Amortization expense 292 233 569 449
1,544 1,138 3,046 2,234
Operating income 1,468 1,173 2,729 2,177
Other income (expense)
Interest expense (550) (496) (1,118) (972)
Investment income (loss), net 126 14 300 78
Equity in net (losses) income
of affiliates, net (16) (12) (37) (21)
Other income (expense) 1 85 514 98
(439) (409) (341) (817)
Income before income taxes and
minority interest 1,029 764 2,388 1,360
Income tax expense (453) (369) (979) (516)
Income before minority interest 576 395 1,409 844
Minority interest 12 4 16 (7)
Net income from continuing
operations 588 399 1,425 837
Income from discontinued
operations, net of tax - 61 - 89
Net income $588 $460 $1,425 $926
Basic earnings per common share
Income from continuing
operations $0.19 $0.13 $0.46 $0.26
Income from discontinued
operations - 0.02 - 0.03
Net income $0.19 $0.15 $0.46 $0.29
Diluted earnings per common
share
Income from continuing
operations $0.19 $0.13 $0.45 $0.26
Income from discontinued
operations - 0.02 - 0.03
Net income $0.19 $0.15 $0.45 $0.29
Basic weighted-average number
of common shares 3,113 3,168 3,119 3,185
Diluted weighted-average number
of common shares 3,147 3,184 3,155 3,198
COMCAST CORPORATION
TABLE 2
Condensed Consolidated Balance Sheet
(Unaudited)
(in millions) June 30, December 31,
2007 2006
ASSETS
Current Assets
Cash and cash equivalents $828 $1,239
Investments 395 1,735
Accounts receivable, net 1,441 1,450
Other current assets 878 778
Total current assets 3,542 5,202
Investments 6,211 8,847
Property and equipment, net 22,900 21,248
Franchise rights 57,914 55,927
Goodwill 14,416 13,768
Other intangible assets, net 5,165 4,881
Other noncurrent assets, net 608 532
$110,756 $110,405
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities
Accounts payable and accrued
expenses related to trade
creditors $2,978 $2,862
Accrued expenses and other current
liabilities 3,301 3,032
Deferred income taxes 102 563
Current portion of long-term debt 458 983
Total current liabilities 6,839 7,440
Long-term debt, less current portion 27,794 27,992
Deferred income taxes 26,533 27,089
Other noncurrent liabilities 7,487 6,476
Minority interest 278 241
Stockholders' equity 41,825 41,167
$110,756 $110,405
COMCAST CORPORATION
TABLE 3
Condensed Consolidated Statement of Cash Flows
(Unaudited)
(in millions) Six Months Ended
June 30,
2007 2006
OPERATING ACTIVITIES
Net cash provided by (used in)
operating activities $4,390 $3,184
FINANCING ACTIVITIES
Proceeds from borrowings 590 2,587
Retirements and repayments of debt (1,320) (1,905)
Repurchases of common stock (1,252) (1,388)
Issuances of common stock 334 60
Other 52 2
Net cash provided by (used in)
financing activities (1,596) (644)
INVESTING ACTIVITIES
Capital expenditures (3,058) (1,854)
Cash paid for intangible assets (229) (141)
Acquisitions, net of cash acquired (770) (550)
Proceeds from sales of investments 805 303
Purchases of investments (52) (70)
Proceeds from sales (purchases) of
short-term investments 56 (4)
Other 43 (3)
Net cash provided by (used in)
investing activities (3,205) (2,319)
Increase (decrease) in cash and cash
equivalents (411) 221
Cash and cash equivalents, beginning
of period 1,239 947
Cash and cash equivalents, end of
period $828 $1,168
TABLE 4
Calculation of Free Cash Flow
(Unaudited) (1)
(in millions) Six Months Ended
June 30,
2007 2006
Net Cash Provided by (Used In)
Operating Activities $4,390 $3,184
Capital Expenditures (3,058) (1,854)
Cash paid for Intangible Assets (229) (141)
Nonoperating items, net of tax (293) 80
Free Cash Flow $810 $1,269
(1) See Non-GAAP and Other Financial Measures in Table 7 for the
definition of 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 June 30, 2007
Revenues $7,330 $334 $48 $7,712
Operating Cash Flow $3,031 $75 ($94) $3,012
Operating Income (Loss) $1,560 $29 ($121) $1,468
Operating Cash Flow Margin 41.3% 22.7% NM 39.1%
Capital Expenditures (3) $1,586 $10 $8 $1,604
Three Months Ended June 30, 2006
Revenues $6,558 $273 $37 $6,868
Operating Cash Flow $2,679 $59 ($74) $2,664
Operating Income (Loss) $1,335 $18 ($94) $1,259
Operating Cash Flow Margin 40.9% 21.8% NM 38.8%
Capital Expenditures (3) $1,045 $5 $8 $1,058
Six Months Ended June 30, 2007
Revenues $14,328 $636 $136 $15,100
Operating Cash Flow $5,824 $140 ($189) $5,775
Operating Income (Loss) $2,913 $47 ($231) $2,729
Operating Cash Flow Margin 40.6% 22.0% NM 38.2%
Capital Expenditures (3) $3,029 $14 $15 $3,058
Six Months Ended June 30, 2006
Revenues $12,790 $512 $124 $13,426
Operating Cash Flow $5,122 $109 ($130) $5,101
Operating Income (Loss) $2,477 $27 ($170) $2,334
Operating Cash Flow Margin 40.0% 21.4% NM 38.0%
Capital Expenditures (3) $2,012 $13 $15 $2,040
(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 quarterly report on Form 10-Q. 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,
G4 and other entertainment related businesses.
(3) Our Cable segment's capital expenditures are comprised of the
following categories:
YTD YTD
2Q07 2Q06 2Q07 2Q06
New Service Offerings
Customer Premise Equipment (CPE) $873 $558 $1,675 $1,060
Scalable Infrastructure 257 168 520 341
1,130 726 2,195 1,401
Recurring Capital Projects
Line Extensions 98 90 184 179
Support Capital 230 130 380 249
328 220 564 428
Upgrades 102 99 220 183
Commercial 26 - 50 -
Total $1,586 $1,045 $3,029 $2,012
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 recurring betterments.
COMCAST CORPORATION
TABLE 6
Pro Forma Data - Cable Segment Components
(Unaudited)(1) (2)
Three Months Ended Six Months Ended
June 30, June 30,
(in millions, except per subscriber
and per unit data) 2007 2006 2007 2006
Revenues:
Video (3) $4,465 $4,172 $8,827 $8,202
High-speed Internet 1,589 1,330 3,116 2,590
Phone 420 212 773 399
Advertising 399 402 712 725
Other (4) 250 247 492 489
Franchise fees 207 195 408 385
Total Revenues $7,330 $6,558 $14,328 $12,790
Operating Cash Flow $3,031 $2,679 $5,824 $5,122
Operating Income $1,560 $1,335 $2,913 $2,477
Operating Cash Flow Margin 41.3% 40.9% 40.6% 40.0%
Capital Expenditures $1,586 $1,045 $3,029 $2,012
2Q07 2Q06 1Q07
Video
Homes Passed (000's) 47,900 47,100 47,700
Basic Subscribers (000's) 24,141 24,041 24,236
Basic Penetration 50.4% 51.1% 50.9%
Quarterly Net Basic Subscriber
Additions (000's) (95) (91) 75
Digital Subscribers (000's) 14,133 11,495 13,309
Digital Penetration 58.5% 47.8% 54.9%
Quarterly Net Digital Subscriber
Additions (000's) 823 337 644
Digital Set-Top Boxes 22,681 17,635 20,598
Monthly Average Video Revenue
per Basic Subscriber $61.53 $57.75 $60.08
Monthly Average Total Revenue
per Basic Subscriber $101.02 $90.76 $96.39
High-Speed Internet
"Available" Homes (000's) 47,445 46,390 47,186
Subscribers (000's) 12,380 10,463 12,050
Penetration 26.1% 22.6% 25.5%
Quarterly Net Subscriber
Additions (000's) 330 333 563
Monthly Average Revenue per
Subscriber $43.37 $43.06 $43.26
Phone
Comcast Digital Voice
"Available" Homes (000's) 37,638 28,339 34,839
Subscribers (000's) 3,097 864 2,426
Penetration 8.2% 3.0% 7.0%
Quarterly Net Subscriber
Additions (000's) 671 326 571
Circuit Switched Phone
"Available" Homes (000's) 8,995 8,854 8,989
Subscribers (000's) 443 842 560
Penetration 4.9% 9.5% 6.2%
Quarterly Net Subscriber
Additions (000's) (117) (76) (93)
Monthly Average Total Phone
Revenue per Subscriber $42.92 $45.24 $43.11
Total Revenue Generating
Units (000's) (5) 54,194 47,705 52,581
Total Quarterly Net Additions
(000's) 1,613 830 1,759
(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 Susquehanna
Communications acquired on April 30, 2006, cable systems acquired in
the Adelphia/Time Warner transactions on July 31, 2006 and the cable
systems resulting from the dissolution of the Texas/Kansas City Cable
Partnership (TKCCP) on January 1, 2007. Pro forma results are
presented as if the acquisitions and dispositions were effective on
January 1, 2006. The net impact of these transactions was to increase
the number of basic cable subscribers by 2.6 million.
(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 is an additional performance measure used as an indicator of our ability to repay debt, make investments and return capital to investors, principally through stock repurchases. 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 From Continuing Operations" (as stated in our Consolidated Statement of Cash Flows) reduced by capital expenditures and cash paid for intangible assets; increased by any payments related to certain non-operating items, net of estimated tax benefits (such as income taxes on investment sales, and non-recurring payments related to income tax and litigation contingencies of acquired companies) and decreased by any proceeds from the sale of trading securities. We believe that Free Cash Flow is also useful to investors as it is one of the bases for comparing our performance with other companies in our industries, although our measure of 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 data, as adjusted, in order to enhance comparability between periods. 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. 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 in Table 4, Pro Forma in Table 7-A and Adjusted Net Income in Table 7-B.
COMCAST CORPORATION
TABLE 7-A
Reconciliation of Pro Forma(1) Financial Data by Business Segment
(Unaudited)
(in millions) Corporate,
Other and
Cable Programming Eliminations Total
Three Months Ended June 30, 2007
Revenue $7,330 $334 $48 $7,712
Operating Expenses (excluding
depreciation and
amortization) 4,299 259 142 4,700
Operating Cash Flow $3,031 $75 ($94) $3,012
Depreciation and Amortization 1,471 46 27 1,544
Operating Income (Loss) $1,560 $29 ($121) $1,468
Capital Expenditures $1,586 $10 $8 $1,604
Three Months Ended June 30, 2006
Revenue $5,612 $273 $23 $5,908
Segment reclassifications (13) - 13 -
Revenue $5,599 $273 $36 $5,908
Operating Expenses (excluding
depreciation and amortization) 3,277 213 107 3,597
Segment reclassifications (5) 1 4 -
Operating Cash Flow $2,327 $59 ($75) $2,311
Depreciation and Amortization 1,078 41 19 1,138
Operating Income (Loss) $1,249 $18 ($94) $1,173
Capital Expenditures $915 $5 $56 $976
Six Months Ended June 30, 2007
Revenue $14,328 $636 $136 $15,100
Operating Expenses (excluding
depreciation and amortization) 8,504 496 325 9,325
Operating Cash Flow $5,824 $140 ($189) $5,775
Depreciation and Amortization 2,911 93 42 3,046
Operating Income (Loss) $2,913 $47 ($231) $2,729
Capital Expenditures $3,029 $14 $15 $3,058
Six Months Ended June 30, 2006
Revenue $10,894 $512 $97 $11,503
Segment reclassifications (26) - 26 -
Revenue $10,868 $512 $123 $11,503
Operating Expenses (excluding
depreciation and amortization) 6,445 402 245 7,092
Segment reclassifications (9) 1 8 -
Operating Cash Flow $4,432 $109 ($130) $4,411
Depreciation and Amortization 2,112 82 40 2,234
Operating Income (Loss) $2,320 $27 ($170) $2,177
Capital Expenditures $1,740 $13 $101 $1,854
(1) Pro forma data is adjusted only for timing of acquisitions or
disposition 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, 2006. Minor differences may exist due to rounding.
COMCAST CORPORATION
TABLE 7-A
Reconciliation of Pro Forma(1) Financial Data by Business Segment
(Unaudited)
Cable Total
(in millions) Pro Forma Cable Pro Forma Total
Adjustments(1) Pro Forma Adjustments(1) Pro Forma
Three Months Ended
June 30, 2007
Revenue $- $7,330 $- $7,712
Operating Expenses
(excluding depreciation
and amortization) - 4,299 - 4,700
Operating Cash Flow $- $3,031 $- $3,012
Depreciation and
Amortization - 1,471 - 1,544
Operating Income (Loss) $- $1,560 $- $1,468
Capital Expenditures $- $1,586 $- $1,604
Three Months Ended
June 30, 2006
Revenue $959 $6,571 $960 $6,868
Segment reclassifications - (13) - -
Revenue $959 $6,558 $960 $6,868
Operating Expenses
(excluding depreciation
and amortization) 607 3,884 607 4,204
Segment reclassifications - (5) - -
Operating Cash Flow $352 $2,679 $353 $2,664
Depreciation and
Amortization 266 1,344 267 1,405
Operating Income (Loss) $86 $1,335 $86 $1,259
Capital Expenditures $130 $1,045 $82 $1,058
Six Months Ended
June 30, 2007
Revenue $- $14,328 $- $15,100
Operating Expenses
(excluding depreciation
and amortization) - 8,504 - 9,325
Operating Cash Flow $- $5,824 $- $5,775
Depreciation and
Amortization - 2,911 - 3,046
Operating Income (Loss) $- $2,913 $- $2,729
Capital Expenditures $- $3,029 $- $3,058
Six Months Ended
June 30, 2006
Revenue $1,922 $12,816 $1,923 $13,426
Segment reclassifications - (26) - -
Revenue $1,922 $12,790 $1,923 $13,426
Operating Expenses
(excluding depreciation
and amortization) 1,232 7,677 1,233 8,325
Segment reclassifications - (9) - -
Operating Cash Flow $690 $5,122 $690 $5,101
Depreciation and
Amortization 533 2,645 533 2,767
Operating Income (Loss) $157 $2,477 $157 $2,334
Capital Expenditures $272 $2,012 $186 $2,040
(1) Pro forma data is adjusted only for timing of acquisitions or
disposition 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, 2006. Minor differences may exist due to rounding.
COMCAST CORPORATION
TABLE 7-B
Reconciliation of Net Income to Adjusted Net Income
(Unaudited)
Three Months Ended
June 30,
2007 2006
(in millions, except per share data)
$ EPS (1) $ EPS (1)
Net Income $588 $0.19 $460 $0.15
Adjustments - - - -
Adjusted Net Income $588 $0.19 $460 $0.15
Six Months Ended
June 30,
2007 2006
(in millions, except per share data)
$ EPS (1) $ EPS (1)
Net Income $1,425 $0.45 $926 $0.29
Adjustment:
Gain related to the dissolution
of the Texas/Kansas City Cable
Partnership, net of tax 300 0.09 - -
Adjusted Net Income (2) $1,125 $0.36 $926 $0.29
(1) Based on diluted average number of common shares for the
respective periods as presented in Table 1.
(2) For 2007, Adjusted Net Income excludes a one-time gain related to the
dissolution of the Texas/Kansas City Cable Partnership, net of tax.
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