| Comcast Reports
Third Quarter 2008 Results October 29, 2008 - Financial Tables | ||
Comcast Corporation
TABLE 1
Condensed Consolidated Statement of Operations
----------------------------------------------------------------------
(Unaudited)
Three Months Nine Months Ended
Ended
(in millions, except per share September 30, September 30,
data)
2008 2007 2008 2007
-------- ------- -------- --------
Revenues $8,549 $7,781 $25,491 $22,881
Operating expenses 3,095 2,759 9,293 8,272
Selling, general and
administrative expenses 2,217 2,093 6,436 5,905
-------- ------- -------- --------
5,312 4,852 15,729 14,177
-------- ------- -------- --------
Operating cash flow 3,237 2,929 9,762 8,704
Depreciation expense 1,332 1,291 4,093 3,768
Amortization expense 235 247 694 816
-------- ------- -------- --------
1,567 1,538 4,787 4,584
-------- ------- -------- --------
Operating income 1,670 1,391 4,975 4,120
Other income (expense)
Interest expense (601) (571) (1,840) (1,689)
Investment income (loss), net 74 158 83 458
Equity in net (losses) income of
affiliates, net 2 (12) (46) (49)
Other income (expense) 12 (1) 305 513
-------- ------- -------- --------
(513) (426) (1,498) (767)
-------- ------- -------- --------
Income before income taxes and
minority interest 1,157 965 3,477 3,353
Income tax expense (401) (421) (1,364) (1,400)
-------- ------- -------- --------
Income before minority interest 756 544 2,113 1,953
Minority interest 15 16 22 32
-------- ------- -------- --------
Net income $771 $560 $2,135 $1,985
======== ======= ======== ========
-------- ------- -------- --------
Diluted earnings per common share $0.26 $0.18 $0.72 $0.63
======== ======= ======== ========
-------- ------- -------- --------
Adjusted earnings per common share
(1) $0.24 $0.18 $0.64 $0.54
======== ======= ======== ========
-------- ------- -------- --------
Dividends declared per common
share $0.0625 $- $0.1875 $-
======== ======= ======== ========
Diluted weighted-average number of
common shares 2,920 3,118 2,973 3,145
======== ======= ======== ========
(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) September 30, December 31,
2008 2007
------------- ------------
ASSETS
Current Assets
Cash and cash equivalents $2,714 $963
Investments 203 98
Accounts receivable, net 1,658 1,645
Other current assets 938 961
------------- ------------
Total current assets 5,513 3,667
------------- ------------
Investments 5,203 7,963
Property and equipment, net 23,910 23,624
Franchise rights 59,452 58,077
Goodwill 14,909 14,705
Other intangible assets, net 4,570 4,739
Other noncurrent assets, net 939 642
------------- ------------
$114,496 $113,417
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses
related to trade creditors $3,187 $3,336
Accrued expenses and other current
liabilities 2,985 3,121
Current portion of long-term debt 3,087 1,495
------------- ------------
Total current liabilities 9,259 7,952
------------- ------------
Long-term debt, less current portion 30,601 29,828
Deferred income taxes 27,209 26,880
Other noncurrent liabilities 6,925 7,167
Minority interest 298 250
Stockholders' equity 40,204 41,340
------------- ------------
$114,496 $113,417
============= ============
Comcast Corporation
TABLE 3
Condensed Consolidated Statement of Cash Flows
----------------------------------------------------------------------
(Unaudited)
(in millions) Nine Months Ended
September 30,
2008 2007
-------- --------
OPERATING ACTIVITIES
Net cash provided by operating activities $7,373 $5,505
-------- --------
FINANCING ACTIVITIES
Proceeds from borrowings 3,513 3,610
Retirements and repayments of debt (1,143) (1,529)
Repurchases of common stock (2,800) (1,852)
Dividends paid (367) -
Issuances of common stock 53 404
Other (148) 51
-------- --------
Net cash provided by (used in) financing
activities (892) 684
-------- --------
INVESTING ACTIVITIES
Capital expenditures (4,037) (4,584)
Cash paid for software and other intangible assets (376) (313)
Acquisitions, net of cash acquired (700) (1,277)
Proceeds from sales of investments 452 1,726
Purchases of investments (67) (129)
Other (2) 98
-------- --------
Net cash provided by (used in) investing
activities (4,730) (4,479)
-------- --------
Increase (decrease) in cash and cash equivalents 1,751 1,710
Cash and cash equivalents, beginning of period 963 1,239
-------- --------
Cash and cash equivalents, end of period $2,714 $2,949
======== ========
TABLE 4
Calculation of Free Cash Flow and Unlevered Free Cash Flow
----------------------------------------------------------------------
(Unaudited) (1)
(in millions) Three Months Nine Months
Ended Ended
September 30, September 30,
2008 2007 2008 2007
------- ------- ------- -------
Net Cash Provided by Operating
Activities $2,445 $1,598 $7,373 $5,505
Capital Expenditures (1,306) (1,526) (4,037) (4,584)
Cash Paid for Capitalized Software (100) (60) (287) (228)
Cash Paid for Other Intangible Assets (31) (24) (89) (85)
Nonoperating and Nonrecurring items,
net of tax:
Payment of Tax on Nonoperating Items 88 536 316 726
Impact of Economic Stimulus Package
(2) (168) - (483) -
------- ------- ------- -------
Free Cash Flow 928 524 2,793 1,334
------- ------- ------- -------
Cash Paid Interest 679 646 1,795 1,724
------- ------- ------- -------
Unlevered Free Cash Flow $1,607 $1,170 $4,588 $3,058
======= ======= ======= =======
(1) See Non-GAAP and Other Financial Measures in Table 7 for the
definition of Free Cash Flow and Unlevered Free Cash Flow.
(2) Our definition of Free Cash Flow remains unchanged and
specifically eliminates any impact from the Economic Stimulus
package. Net Cash Provided by Operating Activities included a
$315 million benefit in 2Q08 and a $168 million benefit in 3Q08
from the Economic Stimulus package. These amounts have been
excluded from Free Cash Flow to provide an appropriate
comparison.
Comcast Corporation
TABLE 5
Pro Forma Financial Data by Business Segment
----------------------------------------------------------------------
(Unaudited)(1)
(dollars in millions) Corporate
and
---------
Cable Programming (2) Other Total
-------- --------------- --------- --------
Three Months Ended
September 30, 2008
--------------------------
Revenues $8,131 $347 $71 $8,549
Operating Cash Flow $3,251 $105 ($119) $3,237
Operating Income (Loss) $1,749 $59 ($138) $1,670
Operating Cash Flow Margin 40.0% 30.3% NM 37.9%
Capital Expenditures (3) $1,268 $12 $26 $1,306
Three Months Ended
September 30, 2007
--------------------------
Revenues $7,593 $330 $51 $7,974
Operating Cash Flow $3,050 $97 ($143) $3,004
Operating Income (Loss) $1,541 $51 ($162) $1,430
Operating Cash Flow Margin 40.2% 29.3% NM 37.7%
Capital Expenditures (3) $1,528 $8 $26 $1,562
Nine Months Ended
September 30, 2008
--------------------------
Revenues $24,147 $1,076 $268 $25,491
Operating Cash Flow $9,755 $307 ($300) $9,762
Operating Income (Loss) $5,168 $162 ($355) $4,975
Operating Cash Flow Margin 40.4% 28.5% NM 38.3%
Capital Expenditures (3) $3,877 $22 $138 $4,037
Nine Months Ended
September 30, 2007
--------------------------
Revenues $22,362 $966 $187 $23,515
Operating Cash Flow $9,050 $237 ($332) $8,955
Operating Income (Loss) $4,554 $98 ($392) $4,260
Operating Cash Flow Margin 40.5% 24.5% NM 38.1%
Capital Expenditures (3) $4,623 $22 $41 $4,686
(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), Golf Channel, VERSUS
and G4.
(3) Our Cable segment's capital expenditures are comprised of the
following categories:
YTD
3Q08 3Q07 YTD 3Q08 3Q07
------ ------ --------- -------
Growth
Customer Premise Equipment (CPE) $590 $701 $2,096 $2,256
Scalable Infrastructure 60 98 175 320
Line Extensions 54 98 154 287
Support Capital 65 99 176 279
Upgrades (Capacity Expansion) 13 28 58 77
Business Services 61 23 160 60
------ ------ --------- -------
843 1,047 2,819 3,279
Maintenance
CPE (Drop Replacements) 76 84 207 227
Scalable Infrastructure 194 140 411 465
Support Capital 54 99 155 261
Upgrades 81 129 199 328
------ ------ --------- -------
405 452 972 1,281
Discretionary 20 29 86 63
------ ------ --------- -------
Total $1,268 $1,528 $3,877 $4,623
====== ====== ========= =======
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)
Three Months Ended Nine Months Ended
(dollars in millions, except per
subscriber data) September 30, September 30,
2008 2007 2008 2007
--------- -------- -------- --------
Revenues:
Video (3) $4,681 $4,519 $14,113 $13,607
High-speed Internet 1,822 1,666 5,364 4,867
Phone 690 479 1,917 1,260
Advertising 374 417 1,117 1,149
Other (4) 336 299 957 848
Franchise fees 228 213 679 631
--------- -------- -------- --------
Total Revenues * $8,131 $7,593 $24,147 $22,362
Operating Cash Flow $3,251 $3,050 $9,755 $9,050
Operating Income $1,749 $1,541 $5,168 $4,554
Operating Cash Flow Margin 40.0% 40.2% 40.4% 40.5%
Capital Expenditures $1,268 $1,528 $3,877 $4,623
* Total Revenues include revenue from Business Services of $145 million in 3Q08 and $102 million in 3Q07, and $396 million in YTD 2008 and $285 million in YTD 2007. ----------------------------------------------------------------------
3Q08 2Q08 3Q07
-------- -------- --------
Video
Homes Passed (000's) 50,329 50,096 49,457
Basic Subscribers (000's) 24,406 24,553 24,848
Basic Penetration 48.5% 49.0% 50.2%
Quarterly Net Basic Subscriber
Additions (000's) (147) (138) (56)
Digital Subscribers (000's) 16,752 16,335 14,991
Digital Penetration 68.6% 66.5% 60.3%
Quarterly Net Digital Subscriber
Additions (000's) 417 320 503
Digital Set-Top Boxes 27,060 26,345 24,117
Monthly Average Video Revenue per
Basic Subscriber $63.74 $63.98 $60.54
High-Speed Internet
"Available" Homes (000's) 49,982 49,745 49,081
Subscribers (000's) 14,738 14,357 13,245
Penetration of "Available" Homes 29.5% 28.9% 27.0%
Quarterly Net Subscriber Additions
(000's) 382 278 474
Monthly Average Revenue per
Subscriber $41.74 $42.01 $42.69
Phone
Comcast Digital Voice
"Available" Homes (000's) 46,083 45,143 41,395
Subscribers (000's) 6,126 5,643 3,831
Penetration of "Available" Homes 13.3% 12.5% 9.3%
Quarterly Net Subscriber
Additions (000's) 483 555 681
Monthly Average Revenue per
Subscriber $38.98 $39.48 $40.99
Circuit Switched Phone
"Available" Homes (000's) 101 1,429 8,897
Subscribers (000's) 7 10 304
Penetration of "Available" Homes 6.6% 0.7% 3.4%
Quarterly Net Subscriber
Additions (000's) (4) (56) (138)
Total Revenue Generating Units
(000's) (5) 62,029 60,899 57,219
Total Quarterly Net Additions (000's) 1,131 960 1,463
Total Monthly Average Revenue per
Basic Subscriber $110.71 $109.66 $101.74
(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 regional sports programming networks,
residential video installation revenues, guide revenues,
commissions from electronic retailing, other product offerings
and revenues of our digital media center.
(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
financial 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 financial 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.
Non-GAAP financial measures 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
----------------------------------------
Corporate,
Other and
(in millions) Cable Programming Eliminations Total
------- ----------- ------------ -------
Three Months Ended September
30, 2008
----------------------------
Revenue $8,131 $347 $71 $8,549
Operating Expenses
(excluding depreciation and
amortization) 4,880 242 190 5,312
------- ----------- ------------ -------
Operating Cash Flow $3,251 $105 ($119) $3,237
Depreciation and
Amortization 1,502 46 19 1,567
------- ----------- ------------ -------
Operating Income (Loss) $1,749 $59 ($138) $1,670
======= =========== ============ =======
Capital Expenditures $1,268 $12 $26 $1,306
======= =========== ============ =======
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
======= =========== ============ =======
Nine Months Ended September
30, 2008
----------------------------
Revenue $24,147 $1,076 $268 $25,491
Operating Expenses
(excluding depreciation and
amortization) 14,392 769 568 15,729
------- ----------- ------------ -------
Operating Cash Flow $9,755 $307 ($300) $9,762
Depreciation and
Amortization 4,587 145 55 4,787
------- ----------- ------------ -------
Operating Income (Loss) $5,168 $162 ($355) $4,975
======= =========== ============ =======
Capital Expenditures $3,877 $22 $138 $4,037
======= =========== ============ =======
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
======= =========== ============ =======
Cable Total
------------------- --------------------
Pro Forma Pro Pro Forma Total
Adjustments Forma Adjustments Pro
(in millions) (1) (2) Cable (1) (2) Forma
----------- ------- ------------ -------
Three Months Ended September
30, 2008
-----------------------------
Revenue $- $8,131 $- $8,549
Operating Expenses (excluding
depreciation and
amortization) - 4,880 - 5,312
----------- ------- ------------ -------
Operating Cash Flow $- $3,251 $- $3,237
Depreciation and Amortization - 1,502 - 1,567
----------- ------- ------------ -------
Operating Income (Loss) $- $1,749 $- $1,670
=========== ======= ============ =======
Capital Expenditures $- $1,268 $- $1,306
=========== ======= ============ =======
Three Months Ended September
30, 2007
-----------------------------
Revenue $193 $7,593 $193 $7,974
Operating Expenses (excluding
depreciation and
amortization) 118 4,543 118 4,970
----------- ------- ------------ -------
Operating Cash Flow $75 $3,050 $75 $3,004
Depreciation and Amortization 36 1,509 36 1,574
----------- ------- ------------ -------
Operating Income (Loss) $39 $1,541 $39 $1,430
=========== ======= ============ =======
Capital Expenditures $36 $1,528 $36 $1,562
=========== ======= ============ =======
Nine Months Ended September
30, 2008
-----------------------------
Revenue $- $24,147 $- $25,491
Operating Expenses (excluding
depreciation and
amortization) - 14,392 - 15,729
----------- ------- ------------ -------
Operating Cash Flow $- $9,755 $- $9,762
Depreciation and Amortization - 4,587 - 4,787
----------- ------- ------------ -------
Operating Income (Loss) $- $5,168 $- $4,975
=========== ======= ============ =======
Capital Expenditures $- $3,877 $- $4,037
=========== ======= ============ =======
Nine Months Ended September
30, 2007
-----------------------------
Revenue $634 $22,362 $634 $23,515
Operating Expenses (excluding
depreciation and
amortization) 383 13,312 383 14,560
----------- ------- ------------ -------
Operating Cash Flow $251 $9,050 $251 $8,955
Depreciation and Amortization 112 4,496 111 4,695
----------- ------- ------------ -------
Operating Income (Loss) $139 $4,554 $140 $4,260
=========== ======= ============ =======
Capital Expenditures $102 $4,623 $102 $4,686
=========== ======= ============ =======
(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
September 30,
2008 vs. 2007
2008 2007 Growth (%)
--------------- --------------- -------------
(in millions, except
per share data)
$ EPS (1) $ EPS (1) $ EPS (1)
--------------- --------------- -------------
Net Income $771 $0.26 $560 $0.18 38% 44%
Adjustments:
Favorable income tax
adjustments (2) (80) (0.03) - - NM NM
--------------- --------------- -------------
Adjusted Net Income $691 $0.24 $560 $0.18 23% 33%
=============== =============== =============
Nine Months Ended
September 30,
2008 vs. 2007
2008 2007 Growth (%)
--------------- --------------- -------------
$ EPS (1) $ EPS (1) $ EPS (1)
--------------- --------------- -------------
Net Income $2,135 $0.72 $1,985 $0.63 8% 14%
Adjustments:
Gain related to the
dissolution of the
Texas/Kansas City
Cable Partnership,
net of tax (3) - - (300) (0.09) NM NM
Gain related to the
dissolution of the
Insight Midwest
partnership, net of
tax (4) (144) (0.05) - - NM NM
Favorable income tax
adjustments (2) (80) (0.03) - - NM NM
--------------- --------------- -------------
Adjusted Net Income $1,911 $0.64 $1,685 $0.54 13% 19%
=============== =============== =============
(1) Based on diluted average number of common shares for the
respective periods as presented in Table 1.
(2) 2008 Net Income includes favorable income tax adjustments related
to the settlement of an uncertain tax position of an acquired
entity and the effect, principally on deferred taxes, of certain
state tax law changes.
(3) 2007 Net Income includes a gain, net of tax, related to the
dissolution of the Texas/Kansas City Cable Partnership.
(4) 2008 Net Income includes a gain, net of tax, related to the
dissolution of the Insight Midwest Partnership.
Reconciliation of Pro Forma Cable Operating Cash Flow excluding
Hurricane Impact and Severance Charges
----------------------------------------------------------------------
(Unaudited)
Three Months Ended
September 30,
(in millions)
2008 2007 Growth % Margin %
------ ------ -------- --------
Cable Operating Cash Flow $3,251 $3,050 6.6% 40.0%
Hurricane Impact 20 - NM NM
Severance Charges 39 - NM NM
------ ------ -------- --------
Cable Operating Cash Flow excluding
Hurricane Impact and Severance
Charges $3,310 $3,050 8.5% 40.7%
====== ====== ======== ========
Note: Minor differences may exist due to rounding.
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