Comcast Reports Fourth Quarter 2008 and Year End Results
February 18, 2009 - Financial Tables

Comcast Corporation

TABLE 1
Condensed Consolidated Statement of Operations (Unaudited)
Three Months Ended Twelve Months Ended
(in millions, except per share data) December 31, December 31,
2007 2008 2007 2008
Revenue $8,014 $8,765 $30,895 $34,256
Operating expenses

3,158

3,431

12,169

13,472

Selling, general and administrative expenses

1,774

1,964

6,940

7,652

4,932 5,395 19,109 21,124
Operating cash flow 3,082 3,370 11,786 13,132
Depreciation expense 1,339 1,364 5,107 5,457
Amortization expense 285 249 1,101 943
1,624 1,613 6,208 6,400
Operating income 1,458 1,757 5,578 6,732
Other income (expense)
Interest expense (600 ) (599 ) (2,289 ) (2,439 )
Investment income (loss), net 143 6 601 89
Equity in net (losses) income of affiliates, net (14 ) (3 ) (63 ) (39 )
Other income (expense) 9 (580 ) 522 (285 )
(462 ) (1,176 ) (1,229 ) (2,674 )
Income before income taxes and
minority interest 996 581 4,349 4,058
Income tax expense (400 ) (169 ) (1,800 ) (1,533 )
Income before minority interest 596 412 2,549 2,525
Minority interest 6 - 38 22
Net income $602 $412 $2,587 $2,547
Diluted earnings per common share $ 0.20 $ 0.14 $ 0.83 $ 0.86

Adjusted earnings per common share (1)

$ 0.20 $ 0.27 $ 0.74 $ 0.91
Dividends declared per common share $ - $0.0625 $ - $0.2500
Diluted weighted-average number of common shares 3,078 2,888 3,129 2,952
(1) Please refer to Table 4-B for a reconciliation of adjusted net income and earnings per share.

 

Comcast Corporation

TABLE 2
Condensed Consolidated Balance Sheet (Unaudited)
(in millions) December 31, December 31,
2007 2008
ASSETS
Current Assets
Cash and cash equivalents $963 $1,195
Investments 98 59
Accounts receivable, net 1,645 1,626
Other current assets 961 836
Total current assets 3,667 3,716
Investments 7,963 4,783
Property and equipment, net 23,624 24,444
Franchise rights 58,077 59,449
Goodwill 14,705 14,889
Other intangible assets, net 4,739 4,558
Other noncurrent assets, net 642 1,178
$113,417 $113,017
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses related to trade creditors $3,336 $3,393
Accrued expenses and other current liabilities 3,121 3,268
Current portion of long-term debt 1,495 2,278
Total current liabilities 7,952 8,939
Long-term debt, less current portion 29,828 30,178
Deferred income taxes 26,880 26,982
Other noncurrent liabilities 7,167 6,171
Minority interest 250 297
Stockholders' equity 41,340 40,450
$113,417 $113,017

 

Comcast Corporation

TABLE 3
Consolidated Statement of Cash Flows (Unaudited)
(in millions) Twelve Months Ended
December 31,
2007 2008
OPERATING ACTIVITIES
Net Income $2,587 $2,547
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 5,107 5,457
Amortization 1,101 943
Share-based compensation 212 258
Noncash interest expense (income), net 114 209
Equity in net losses (income) of affiliates, net 63 39
(Gains) losses on investments and noncash other (income) expense, net (938 ) 321
Noncash contribution expense 11 -
Minority interest (38 ) (22 )
Deferred income taxes 247 495
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Change in accounts receivable, net (100 ) 39
Change in accounts payable and accrued expenses related to trade creditors 175 (38 )
Change in other operating assets and liabilities (352 ) (17 )

Net cash provided by operating activities

8,189 10,231

FINANCING ACTIVITIES

Proceeds from borrowings 3,713 3,535
Retirements and repayments of debt (1,401 ) (2,610 )
Repurchases of common stock (3,102 ) (2,800 )
Dividends paid - (547 )
Issuances of common stock 412 53
Other 62 (153 )
Net cash provided by (used in) financing activities (316 ) (2,522 )
INVESTING ACTIVITIES
Capital expenditures (6,158 ) (5,750 )
Cash paid for software and other intangible assets (406 ) (527 )
Acquisitions, net of cash acquired (1,319 ) (738 )
Proceeds from sales of investments 1,761 737
Purchases of investments (2,089 ) (1,167 )
Other 62 (32 )
Net cash provided by (used in) investing activities (8,149 ) (7,477 )
Increase (decrease) in cash and cash equivalents (276 ) 232
Cash and cash equivalents, beginning of period 1,239 963
Cash and cash equivalents, end of period $963 $1,195

 

Comcast Corporation

TABLE 4-A
Reconciliation of GAAP to Pro Forma(1) Financial Data by Business Segment (Unaudited)

GAAP

Cable

Total

(in millions)

Cable

Programming

Corporate, Other and

Eliminations

Total

Pro Forma

Adjustments(1) (2)

Pro Forma

Cable

Pro Forma

Adjustments(1) (2)

Total

Pro Forma

Three Months Ended December 31, 2008

Revenue $8,296 $350 $119 $8,765 $- $8,296 $- $8,765
Operating Expenses (excluding
depreciation and amortization) 4,881 295 219 5,395 - 4,881 - 5,395
Operating Cash Flow $3,415 $55 ($100 ) $3,370 $- $3,415 $- $3,370
Depreciation and Amortization 1,538 54 21 1,613 - 1,538 - 1,613
Operating Income (Loss) $1,877 $1 ($121 ) $1,757 $- $1,877 $- $1,757
Capital Expenditures $1,668 $22 $23 $1,713 $- $1,668 $- $1,713

Three Months Ended December 31, 2007

Revenue $7,577 $348 $89 $8,014 $181 $7,758 $181 $8,195
Operating Expenses (excluding

depreciation and amortization)

4,454 299 179 4,932 108 4,562 109 5,041
Operating Cash Flow $3,123 $49 ($90 ) $3,082 $73 $3,196 $72 $3,154
Depreciation and Amortization 1,540 84 - 1,624 29 1,569 29 1,653
Operating Income (Loss) $1,583 ($35 ) ($90 ) $1,458 $44 $1,627 $43 $1,501
Capital Expenditures $1,472 $13 $89 $1,574 $21 $1,493 $21 $1,595

Twelve Months Ended December 31, 2008

Revenue $32,443 $1,426 $387 $34,256 $- $32,443 $- $34,256
Operating Expenses (excluding
depreciation and amortization) 19,273 1,064 787 21,124 - 19,273 - 21,124
Operating Cash Flow $13,170 $362 ($400 ) $13,132 $- $13,170 $- $13,132
Depreciation and Amortization 6,125 199 76 6,400 - 6,125 - 6,400
Operating Income (Loss) $7,045 $163 ($476 ) $6,732 $- $7,045 $- $6,732
Capital Expenditures $5,545 $44 $161 $5,750 $- $5,545 $- $5,750

Twelve Months Ended December 31, 2007

Revenue $29,305 $1,314 $276 $30,895 $815 $30,120 $815 $31,710
Operating Expenses (excluding
depreciation and amortization) 17,383 1,028 698 19,109 491 17,874 492 19,601
Operating Cash Flow $11,922 $286 ($422 ) $11,786 $324 $12,246 $323 $12,109
Depreciation and Amortization 5,924 223 61 6,208 141 6,065 140 6,348
Operating Income (Loss) $5,998 $63 ($483 ) $5,578 $183 $6,181 $183 $5,761
Capital Expenditures $5,993 $35 $130 $6,158 $123 $6,116 $123 $6,281

(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 4-B
Reconciliation of Net Income to Adjusted Net Income (Unaudited)
Three Months Ended
December 31,
2008 vs. 2007
2007 2008 Growth (%)
(in millions, except per share data)
$

EPS (1)

$

EPS (1)

$

EPS (1)

Net Income $602 $0.20 $412 $0.14 (32 %) (30 %)
Adjustments:
Impairment of the Clearwire investment (2) - - 378 0.13 NM NM
Adjusted Net Income $602 $0.20 $790 $0.27 31 % 35 %
Twelve Months Ended
December 31,
2008 vs. 2007
2007 2008 Growth (%)
$

EPS (1)

$

EPS (1)

$

EPS (1)

Net Income $2,587 $0.83 $2,547 $0.86 (2 %) 4 %
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 (5) - - (80 ) (0.03 ) NM NM
Impairment of the Clearwire investment (2) - - 378 0.13 NM NM
Adjusted Net Income $2,287 $0.74 $2,701 $0.91 18 % 23 %

(1) Based on diluted average number of common shares for the respective periods as presented in Table 1.
(2) 2008 Net Income includes a $600 million ($378 million net of tax) impairment of the Clearwire investment.
(3) 2007 Net Income includes a $500 million ($300 million net of tax) gain related to the dissolution of the Texas/Kansas City Cable Partnership.
(4) 2008 Net Income includes a $235 million ($144 million net of tax) gain related to the dissolution of the Insight Midwest Partnership.
(5) 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.
Reconciliation of Pro Forma Cable Operating Cash Flow excluding Hurricane Impact and Severance Charges (Unaudited)
Three Months Ended
December 31,
(in millions)
2007 2008 Growth % Margin %
Cable Operating Cash Flow $3,196 $3,415 6.9 % 41.2 %
Hurricane Impact - 19 NM NM
Severance Charges - 63 NM NM
Cable Operating Cash Flow excluding Hurricane Impact
and Severance Charges $3,196 $3,497 9.4 % 42.2 %
Twelve Months Ended
December 31,
2007 2008 Growth % Margin %
Cable Operating Cash Flow $12,246 $13,170 7.6 % 40.6 %
Hurricane Impact - 39 NM NM
Severance Charges - 126 NM NM
Cable Operating Cash Flow excluding Hurricane Impact
and Severance Charges $12,246 $13,335 8.9 % 41.1 %
Note: Minor differences may exist due to rounding.