October 25, 2007 - Financial Tables
COMCAST CORPORATION
TABLE 1
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months Nine Months
Ended Ended
(in millions, except per share data) September 30, September 30,
2007 2006 2007 2006
Revenues $7,781 $6,432 $22,881 $17,935
Operating expenses 2,759 2,274 8,272 6,477
Selling, general and
administrative expenses 2,093 1,721 5,905 4,610
4,852 3,995 14,177 11,087
Operating cash flow 2,929 2,437 8,704 6,848
Depreciation expense 1,291 963 3,768 2,748
Amortization expense 247 250 816 699
1,538 1,213 4,584 3,447
Operating income 1,391 1,224 4,120 3,401
Other income (expense)
Interest expense (571) (530) (1,689) (1,502)
Investment income (loss), net 158 857 458 935
Equity in net (losses) income
of affiliates, net (12) (65) (49) (86)
Other income (expense) (1) 96 513 194
(426) 358 (767) (459)
Income before income taxes and
minority interest 965 1,582 3,353 2,942
Income tax expense (421) (610) (1,400) (1,126)
Income before minority interest 544 972 1,953 1,816
Minority interest 16 (3) 32 (10)
Net income from continuing operations 560 969 1,985 1,806
Income from discontinued operations,
net of tax - 14 - 103
Gain on discontinued operations,
net of tax - 234 - 234
Net income $560 $1,217 $1,985 $2,143
Basic earnings per common share
Income from continuing
operations $0.18 $0.31 $0.64 $0.57
Income from discontinued
operations - - - 0.03
Gain on discontinued
operations - 0.07 - 0.07
Net income $0.18 $0.38 $0.64 $0.67
Diluted earnings per common share
Income from continuing
operations $0.18 $0.31 $0.63 $0.57
Income from discontinued
operations - - - 0.03
Gain on discontinued
operations - 0.07 - 0.07
Net income $0.18 $0.38 $0.63 $0.67
Basic weighted-average number of
common shares 3,087 3,144 3,108 3,171
Diluted weighted-average number
of common shares 3,118 3,163 3,145 3,186
COMCAST CORPORATION
TABLE 2
Condensed Consolidated Balance Sheet
(Unaudited)
(in millions) September 30, December 31,
2007 2006
ASSETS
Current Assets
Cash and cash equivalents $2,949 $1,239
Investments 65 1,735
Accounts receivable, net 1,598 1,450
Other current assets 785 778
Total current assets 5,397 5,202
Investments 6,223 8,847
Property and equipment, net 23,213 21,248
Franchise rights 58,080 55,927
Goodwill 14,549 13,768
Other intangible assets, net 5,092 4,881
Other noncurrent assets, net 617 532
$113,171 $110,405
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses
related to trade creditors $3,014 $2,862
Accrued expenses and other current
liabilities 2,926 3,032
Deferred income taxes - 563
Current portion of long-term debt 764 983
Total current liabilities 6,704 7,440
Long-term debt, less current portion 30,340 27,992
Deferred income taxes 26,570 27,089
Other noncurrent liabilities 7,404 6,476
Minority interest 265 241
Stockholders' equity 41,888 41,167
$113,171 $110,405
COMCAST CORPORATION
TABLE 3
Condensed Consolidated Statement of Cash Flows
(Unaudited)
Nine Months Ended
(in millions) September 30,
2007 2006
OPERATING ACTIVITIES
Net cash provided by (used in)
operating activities $6,108 $5,215
FINANCING ACTIVITIES
Proceeds from borrowings 3,610 5,970
Retirements and repayments of debt (1,529) (2,222)
Repurchases of common stock (1,852) (1,882)
Issuances of common stock 404 133
Other 51 7
Net cash provided by (used in)
financing activities 684 2,006
INVESTING ACTIVITIES
Capital expenditures (4,584) (3,051)
Cash paid for intangible assets (313) (227)
Acquisitions, net of cash acquired (1,277) (3,839)
Proceeds from sales of investments 1,123 2,519
Purchases of investments (129) (471)
Proceeds from sales (purchases)
of short-term investments 52 15
Other 46 (3)
Net cash provided by (used in)
investing activities (5,082) (5,057)
Increase (decrease) in cash and
cash equivalents 1,710 2,164
Cash and cash equivalents,
beginning of period 1,239 947
Cash and cash equivalents,
end of period $2,949 $3,111
TABLE 4
Calculation of Free Cash Flow
(Unaudited) (1)
(in millions) Nine Months Ended
September 30,
2007 2006
Net Cash Provided by (Used In)
Operating Activities $6,108 $5,215
Capital Expenditures (4,584) (3,051)
Cash paid for Intangible
Assets (313) (227)
Nonoperating and Nonrecurring
items, net of tax:
Payment of Tax on
Nonoperating Items 350 321
Payment of Tax Related to
Acquired Companies 56 23
Payment of Tax on Prior
Year Audits 320 -
Proceeds from the Sale of
Trading Securities (603) -
Free Cash Flow $1,334 $2,281
(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)
Corporate
(in millions) Program- and
Cable ming(2) Other Total
Three Months Ended September 30, 2007
Revenues $7,419 $330 $51 $7,800
Operating Cash Flow $2,983 $97 ($143) $2,937
Operating Income (Loss) $1,504 $51 ($163) $1,392
Operating Cash Flow Margin 40.2% 29.3% NM 37.7%
Capital Expenditures (3) $1,492 $8 $26 $1,526
Three Months Ended September 30, 2006
Revenues $6,668 $259 $27 $6,954
Operating Cash Flow $2,640 $87 ($96) $2,631
Operating Income (Loss) $1,400 $46 ($113) $1,333
Operating Cash Flow Margin 39.6% 33.6% NM 37.8%
Capital Expenditures (3) $1,251 $5 $- $1,256
Nine Months Ended September 30, 2007
Revenues $21,856 $966 $187 $23,009
Operating Cash Flow $8,852 $237 ($331) $8,758
Operating Income (Loss) $4,439 $98 ($393) $4,144
Operating Cash Flow Margin 40.5% 24.5% NM 38.1%
Capital Expenditures (3) $4,530 $22 $41 $4,593
Nine Months Ended September 30, 2006
Revenues $19,555 $771 $151 $20,477
Operating Cash Flow $7,800 $196 ($226) $7,770
Operating Income (Loss) $3,893 $73 ($283) $3,683
Operating Cash Flow Margin 39.9% 25.5% NM 37.9%
Capital Expenditures (3) $3,272 $18 $15 $3,305
(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
3Q07 3Q06 3Q07 3Q06
New Service Offerings
Customer Premise
Equipment (CPE) $767 $712 $2,447 $1,774
Scalable Infrastructure 235 247 758 592
1,002 959 3,205 2,366
Recurring Capital
Projects
Line Extensions 94 80 278 261
Support Capital 221 135 602 385
315 215 880 646
Upgrades 144 77 364 260
Commercial 31 - 81 -
Total $1,492 $1,251 $4,530 $3,272
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)
(in millions, except Three Months Ended Nine Months Ended
per subscriber and September 30, September 30,
per unit data) 2007 2006 2007 2006
Revenues:
Video (3) $4,406 $4,174 $13,269 $12,409
High-speed
Internet 1,628 1,388 4,759 3,991
Phone 472 253 1,247 652
Advertising 407 382 1,121 1,109
Other (4) 298 275 843 812
Franchise fees 208 196 617 582
Total Revenues $7,419 $6,668 $21,856 $19,555
Operating Cash Flow $2,983 $2,640 $8,852 $7,800
Operating Income $1,504 $1,400 $4,439 $3,893
Operating Cash
Flow Margin 40.2% 39.6% 40.5% 39.9%
Capital Expenditures $1,492 $1,251 $4,530 $3,272
3Q07 3Q06 2Q07
Video
Homes Passed (000's) 48,250 47,360 48,030
Basic Subscribers (000's) 24,156 24,132 24,222
Basic Penetration 50.1% 51.0% 50.4%
Quarterly Net Basic
Subscriber Additions (000's) (65) 11 (96)
Digital Subscribers (000's) 14,669 12,097 14,180
Digital Penetration 60.7% 50.1% 58.5%
Quarterly Net Digital
Subscriber Additions (000's) 489 559 825
Digital Set-Top Boxes 23,704 18,522 22,768
Monthly Average Video Revenue
per Basic Subscriber $60.72 $57.67 $61.58
Monthly Average Total Revenue
per Basic Subscriber $102.24 $92.12 $101.46
High-Speed Internet
"Available" Homes (000's) 47,875 46,850 47,566
Subscribers (000's) 12,888 11,052 12,438
Penetration 26.9% 23.6% 26.1%
Quarterly Net Subscriber
Additions (000's) 450 538 332
Monthly Average Revenue
per Subscriber $42.86 $42.90 $43.37
Phone
Comcast Digital Voice
"Available" Homes (000's) 40,276 30,919 37,759
Subscribers (000's) 3,774 1,357 3,112
Penetration 9.4% 4.4% 8.2%
Quarterly Net Subscriber
Additions (000's) 662 486 673
Circuit Switched Phone
"Available" Homes (000's) 8,897 8,858 8,995
Subscribers (000's) 304 740 443
Penetration 3.4% 8.4% 4.9%
Quarterly Net Subscriber
Additions (000's) (138) (102) (117)
Monthly Average Total Phone
Revenue per Subscriber $41.35 $44.90 $42.87
Total Revenue Generating
Units (000's)(5) 55,792 49,377 54,394
Total Quarterly Net
Additions (000's) 1,398 1,492 1,616
(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 the Susquehanna
Communications cable systems acquired on April 30, 2006, cable
systems acquired and sold in the Adelphia/Time Warner
transactions on July 31, 2006, the cable systems resulting from the
dissolution of the Texas/Kansas City Cable Partnership (TKCCP) on
January 1, 2007, the results of SportsNet Bay Area and Sports Channel
New England acquired on June 30, 2007, and the cable system acquired
from Patriot Media Holdings, LLC on August 31, 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 an increase of 2.7 million 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 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 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) 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 GAAP to Pro Forma(1) Financial Data by Business Segment
(Unaudited)
GAAP
(in millions) Corporate,
Other and
Program- Eliminat-
Cable(2) ming ions(2) Total
Three Months Ended September 30, 2007
Revenue $7,400 $330 $51 $7,781
Operating Expenses (excluding
depreciation and amortization) 4,425 233 194 4,852
Operating Cash Flow $2,975 $97 ($143) $2,929
Depreciation and Amortization 1,473 46 19 1,538
Operating Income (Loss) $1,502 $51 ($162) $1,391
Capital Expenditures $1,492 $8 $26 $1,526
Three Months Ended September 30, 2006
Revenue $6,312 $258 ($138) $6,432
Segment reclassifications(5) (14) 1 13 -
Revenue $6,298 $259 ($125) $6,432
Operating Expenses (excluding
depreciation and amortization) 3,805 170 20 3,995
Segment reclassifications(5) (5) 2 3 -
Operating Cash Flow $2,498 $87 ($148) $2,437
Depreciation and Amortization 1,157 41 15 1,213
Operating Income (Loss) $1,341 $46 ($163) $1,224
Capital Expenditures $1,173 $5 $19 $1,197
Nine Months Ended September 30, 2007
Revenue $21,728 $966 $187 $22,881
Operating Expenses (excluding
depreciation and amortization) 12,929 729 519 14,177
Operating Cash Flow $8,799 $237 ($332) $8,704
Depreciation and Amortization 4,384 139 61 4,584
Operating Income (Loss) $4,415 $98 ($393) $4,120
Capital Expenditures $4,521 $22 $41 $4,584
Nine Months Ended September 30, 2006
Revenue $17,205 $770 ($40) $17,935
Segment reclassifications(5) (39) 1 38 -
Revenue $17,166 $771 ($2) $17,935
Operating Expenses (excluding
depreciation and amortization) 10,250 572 265 11,087
Segment reclassifications(5) (14) 3 11 -
Operating Cash Flow $6,930 $196 ($278) $6,848
Depreciation and Amortization 3,269 123 55 3,447
Operating Income (Loss) $3,661 $73 ($333) $3,401
Capital Expenditures $2,913 $18 $120 $3,051
Cable Total
Pro Pro
(in millions) Forma Pro Forma Total
Adjust- Forma Adjust- Pro
ments(1)(3) Cable ments(1)(4)Forma
Three Months Ended September 30, 2007
Revenue $19 $7,419 $19 $7,800
Operating Expenses (excluding
depreciation and amortization) 11 4,436 11 4,863
Operating Cash Flow $8 $2,983 $8 $2,937
Depreciation and Amortization 6 1,479 7 1,545
Operating Income (Loss) $2 $1,504 $1 $1,392
Capital Expenditures $- $1,492 $- $1,526
Three Months Ended September 30, 2006
Revenue $370 $6,682 $522 $6,954
Segment reclassifications(5) - (14) - -
Revenue $370 $6,668 $522 $6,954
Operating Expenses (excluding
depreciation and amortization) 228 4,033 328 4,323
Segment reclassifications(5) - (5) - -
Operating Cash Flow $142 $2,640 $194 $2,631
Depreciation and Amortization 83 1,240 85 1,298
Operating Income (Loss) $59 $1,400 $109 $1,333
Capital Expenditures $78 $1,251 $59 $1,256
Nine Months Ended September 30, 2007
Revenue $128 $21,856 $128 $23,009
Operating Expenses (excluding
depreciation and amortization) 75 13,004 74 14,251
Operating Cash Flow $53 $8,852 $54 $8,758
Depreciation and Amortization 29 4,413 30 4,614
Operating Income (Loss) $24 $4,439 $24 $4,144
Capital Expenditures $9 $4,530 $9 $4,593
Nine Months Ended September 30, 2006
Revenue $2,389 $19,594 $2,542 $20,477
Segment reclassifications(5) - (39) - -
Revenue $2,389 $19,555 $2,542 $20,477
Operating Expenses (excluding
depreciation and amortization) 1,519 11,769 1,620 12,707
Segment reclassifications(5) - (14) - -
Operating Cash Flow $870 $7,800 $922 $7,770
Depreciation and Amortization 638 3,907 640 4,087
Operating Income (Loss) $232 $3,893 $282 $3,683
Capital Expenditures $359 $3,272 $254 $3,305
(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, 2006. Minor differences may exist due to rounding.
(2) From August 1, 2006 to September 30, 2006, the cable segment includes
the operating results of the cable systems serving Houston, TX as a
result of the dissolution of our cable partnership with Time Warner.
This adjustment is reversed in the Corporate, Other and Eliminations
column to reconcile to our consolidated amounts.
(3) Cable Pro Forma adjustments for 2006 include cable systems serving
Houston, TX prior to August 1, 2006, Adelphia/Time Warner transactions
and the Susquehanna Communications acquisition. Cable Pro Forma
adjustments for 2007 and 2006 include the cable system acquired from
Patriot Media and the SportsNet Bay Area/Sports Channel New England
acquisitions.
(4) Total Pro Forma adjustments for 2006 include cable systems serving
Houston, TX, Adelphia/Time Warner transactions and the Susquehanna
Communications acquisition. Total Pro Forma adjustments for 2007 and
2006 include the cable system acquired from Patriot Media and the
SportsNet Bay Area/Sports Channel New England acquisitions.
(5) To be consistent with our managment reporting, reclassifications were
made to Programming, Corporate and Other.
COMCAST CORPORATION
TABLE 7-B
Reconciliation of Net Income to Adjusted Net Income
(Unaudited)
Three Months Ended
September 30,
(in millions, except per share data)
2007 2006
$ EPS(1) $ EPS(1)
Net Income $569 $0.18 $1,217 $0.38
Adjustments
Gain on discontinued operations,
net of tax (2) - - 234 0.07
Gain on Adelphia/Time Warner
transactions, net of tax (2) - - 435 0.14
Adjusted Net Income $569 $0.18 $548 $0.17
Nine Months Ended
September 30,
(in millions, except per share data)
2007 2006
$ EPS(1) $ EPS(1)
Net Income $1,994 $0.63 $2,143 $0.67
Adjustment:
Gain on discontinued
operations, net of tax (2) - - 234 0.07
Gain on Adelphia/Time Warner
transactions, net of tax (2) - - 435 0.14
Gain related to the dissolution
of the Texas/Kansas City Cable
Partnership, net of tax (3) 300 0.09 - -
Adjusted Net Income $1,694 $0.54 $1,474 $0.46
(1) Based on diluted average number of common shares for the respective
periods as presented in Table 1.
(2) 2006 Net Income included a one-time gain, net of tax, on discontinued
operations and a one-time investment gain, net of tax, related to the
Adelphia/Time Warner transactions.
(3) 2007 Net Income includes a one-time gain, net of tax, related to the
dissolution of the Texas/Kansas City Cable Partnership.
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