February 14, 2008 - Financial Tables
COMCAST CORPORATION
TABLE 1
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
(in millions, except per share data) 2007 2006 2007 2006
Revenues $8,014 $7,031 $30,895 $24,966
Operating expenses 2,903 2,533 11,175 9,010
Selling, general and
administrative expenses 2,029 1,904 7,934 6,514
4,932 4,437 19,109 15,524
Operating cash flow 3,082 2,594 11,786 9,442
Depreciation expense 1,339 1,080 5,107 3,828
Amortization expense 285 296 1,101 995
1,624 1,376 6,208 4,823
Operating income 1,458 1,218 5,578 4,619
Other income (expense)
Interest expense (600) (562) (2,289) (2,064)
Investment income (loss), net 143 55 601 990
Equity in net (losses)
income of affiliates, net (14) (38) (63) (124)
Other income (expense) 9 (21) 522 173
(462) (566) (1,229) (1,025)
Income before income taxes and
minority interest 996 652 4,349 3,594
Income tax expense (400) (221) (1,800) (1,347)
Income before minority interest 596 431 2,549 2,247
Minority interest 6 (2) 38 (12)
Net income from continuing
operations 602 429 2,587 2,235
Income from discontinued
operations, net of tax - - - 103
Gain on discontinued operations,
net of tax - (39) - 195
Net income $602 $390 $2,587 $2,533
Basic earnings per common share
Income from continuing operations $0.20 $0.14 $0.84 $0.71
Income from discontinued
operations - - - 0.03
Gain on discontinued operations - (0.01) - 0.06
Net income $0.20 $0.13 $0.84 $0.80
Diluted earnings per common share
Income from continuing operations $0.20 $0.14 $0.83 $0.70
Income from discontinued
operations - - - 0.03
Gain on discontinued operations - (0.01) - 0.06
Net income $0.20 $0.13 $0.83 $0.79
Basic weighted-average number of
common shares 3,067 3,127 3,098 3,160
Diluted weighted-average number
of common shares 3,078 3,164 3,129 3,180
COMCAST CORPORATION
TABLE 2
Condensed Consolidated Balance Sheet
(Unaudited)
December 31, December 31,
(in millions) 2007 2006
ASSETS
Current Assets
Cash and cash equivalents $963 $1,239
Investments 98 1,735
Accounts receivable, net 1,645 1,450
Other current assets 961 778
Total current assets 3,667 5,202
Investments 7,963 8,847
Property and equipment, net 23,624 21,248
Franchise rights 58,077 55,927
Goodwill 14,705 13,768
Other intangible assets, net 4,739 4,881
Other noncurrent assets, net 642 532
$113,417 $110,405
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses
related to trade creditors $3,336 $2,862
Accrued expenses and other current
liabilities 3,121 3,032
Deferred income taxes - 314
Current portion of long-term debt 1,495 983
Total current liabilities 7,952 7,191
Long-term debt, less current portion 29,828 27,992
Deferred income taxes 26,880 27,338
Other noncurrent liabilities 7,167 6,476
Minority interest 250 241
Stockholders' equity 41,340 41,167
$113,417 $110,405
COMCAST CORPORATION
TABLE 3
Condensed Consolidated Statement of Cash Flows
(Unaudited)
Twelve Months Ended
December 31,
(in millions) 2007 2006
OPERATING ACTIVITIES
Net cash provided by operating
activities $8,792 $6,618
FINANCING ACTIVITIES
Proceeds from borrowings 3,713 7,497
Retirements and repayments of debt (1,401) (2,039)
Repurchases of common stock (3,102) (2,347)
Issuances of common stock 412 410
Other 62 25
Net cash provided by (used in)
financing activities (316) 3,546
INVESTING ACTIVITIES
Capital expenditures (6,158) (4,395)
Cash paid for software and other
intangible assets (406) (306)
Acquisitions, net of cash acquired (1,319) (5,110)
Proceeds from sales of investments 1,158 2,720
Purchases of investments (2,089) (2,812)
Other 62 31
Net cash provided by (used in)
investing activities (8,752) (9,872)
Increase (decrease) in cash and cash
equivalents (276) 292
Cash and cash equivalents, beginning
of period 1,239 947
Cash and cash equivalents, end of
period $963 $1,239
TABLE 4
Calculation of Free Cash Flow and Unlevered Free Cash Flow
(Unaudited)(1)
Three Months Twelve Months
Ended Ended
December 31, December 31,
(in millions) 2007 2006 2007 2006
Net Cash Provided by Operating
Activities $2,684 $1,403 $8,792 $6,618
Capital Expenditures (1,574) (1,344) (6,158) (4,395)
Cash Paid for Capitalized Software (74) (54) (302) (202)
Cash Paid for Other Intangible
Assets (19) (25) (104) (104)
Nonoperating and Nonrecurring items,
net of tax:
Payment of Tax on Nonoperating Items 141 262 491 583
Payment (Refund) of Tax Related to
Acquired Companies, net (132) 56 (76) 56
Payment of Tax on Prior Year Audits (18) - 302 -
Payment of Litigation Settlements of
Acquired Companies - 44 - 67
Proceeds from the Sale of Trading
Securities - - (603) -
Free Cash Flow $1,008 $342 $2,342 $2,623
Cash Paid Interest 410 428 2,134 1,880
Unlevered Free Cash Flow $1,418 $770 $4,476 $4,503
(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)
Corporate
and
(in millions) Cable Programming(2) Other Total
Three Months Ended
December 31, 2007
Revenues $7,578 $348 $88 $8,014
Operating Cash Flow $3,124 $49 ($92) $3,081
Operating Income (Loss) $1,583 ($35) ($89) $1,459
Operating Cash Flow Margin 41.2% 14.3% NM 38.4%
Capital Expenditures(3) $1,474 $13 $89 $1,576
Three Months Ended
December 31, 2006
Revenues $6,927 $283 $108 $7,318
Operating Cash Flow $2,755 $43 ($96) $2,702
Operating Income (Loss) $1,353 ($1) ($107) $1,245
Operating Cash Flow Margin 39.8% 15.0% NM 36.9%
Capital Expenditures(3) $1,383 ($2) $16 $1,397
Twelve Months Ended
December 31, 2007
Revenues $29,434 $1,314 $275 $31,023
Operating Cash Flow $11,976 $286 ($423) $11,839
Operating Income (Loss) $6,022 $63 ($482) $5,603
Operating Cash Flow Margin 40.7% 21.8% NM 38.2%
Capital Expenditures(3) $6,004 $35 $130 $6,169
Twelve Months Ended
December 31, 2006
Revenues $26,482 $1,054 $259 $27,795
Operating Cash Flow $10,555 $239 ($322) $10,472
Operating Income (Loss) $5,246 $72 ($390) $4,928
Operating Cash Flow Margin 39.9% 22.7% NM 37.7%
Capital Expenditures(3) $4,655 $16 $31 $4,702
(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:
YTD YTD
4Q07 4Q06 4Q07 4Q06
New Service Offerings
Customer Premise Equipment
(CPE) $725 $712 $3,172 $2,486
Scalable Infrastructure 259 331 1,017 923
984 1,043 4,189 3,409
Recurring Capital Projects
Line Extensions 74 63 352 324
Support Capital 190 144 792 529
264 207 1,144 853
Upgrades 156 133 520 393
Commercial 70 - 151 -
Total $1,474 $1,383 $6,004 $4,655
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 Twelve Months Ended
(in millions, except per December 31, December 31,
subscriber and per unit data) 2007 2006 2007 2006
Revenues:
Video(3) $4,464 $4,222 $17,733 $16,631
High-speed Internet 1,662 1,453 6,421 5,444
Phone 523 303 1,770 955
Advertising 418 477 1,539 1,586
Other(4) 300 274 1,143 1,086
Franchise fees 211 198 828 780
Total Revenues $7,578 $6,927 $29,434 $26,482
Programming Expense $5,832 $5,443
Operating Cash Flow $3,124 $2,755 $11,976 $10,555
Operating Income $1,583 $1,353 $6,022 $5,246
Operating Cash Flow Margin 41.2% 39.8% 40.7% 39.9%
Capital Expenditures $1,474 $1,383 $6,004 $4,655
4Q07 3Q07 4Q06
Video
Homes Passed (000's) 48,500 48,250 47,500
Basic Subscribers (000's) 24,063 24,156 24,243
Basic Penetration 49.6% 50.1% 51.0%
Quarterly Net Basic Subscriber
Additions (000's) (94) (65) 111
Digital Subscribers (000's) 15,192 14,669 12,711
Digital Penetration 63.1% 60.7% 52.4%
Quarterly Net Digital Subscriber
Additions (000's) 523 489 614
Digital Set-Top Boxes 24,557 23,704 19,577
Monthly Average Video Revenue per
Basic Subscriber $61.72 $60.72 $58.19
Monthly Average Total Revenue per
Basic Subscriber $104.77 $102.24 $95.47
High-Speed Internet
"Available" Homes (000's) 48,117 47,875 47,021
Subscribers (000's) 13,220 12,888 11,542
Penetration of "Available" Homes 27.5% 26.9% 24.5%
Quarterly Net Subscriber Additions
(000's) 331 450 490
Monthly Average Revenue per
Subscriber $42.44 $42.86 $42.89
Phone
Comcast Digital Voice
"Available" Homes (000's) 41,911 40,276 32,554
Subscribers (000's) 4,377 3,774 1,867
Penetration of "Available" Homes 10.4% 9.4% 5.7%
Quarterly Net Subscriber
Additions (000's) 604 662 510
Circuit Switched Phone
"Available" Homes (000's) 5,026 8,897 8,866
Subscribers (000's) 176 304 652
Penetration of "Available" Homes 3.5% 3.4% 7.4%
Quarterly Net Subscriber
Additions (000's) (128) (138) (87)
Monthly Average Total Phone Revenue
per Subscriber $40.41 $41.35 $43.75
Total Revenue Generating
Units (000's)(5) 57,028 55,792 51,015
Total Quarterly Net Additions (000's) 1,236 1,398 1,638
(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 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; 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. 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 data, as adjusted, in order to enhance comparability between periods. 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 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
Corporate,
Other and
(in millions) Cable(2) Programming Eliminations(2) Total
Three Months Ended
December 31, 2007
Revenue $7,577 $348 $89 $8,014
Operating Expenses
(excluding depreciation
and amortization) 4,454 299 179 4,932
Operating Cash Flow $3,123 $49 ($90) $3,082
Depreciation and
Amortization 1,540 84 - 1,624
Operating Income (Loss) $1,583 ($35) ($90) $1,458
Capital Expenditures $1,472 $13 $89 $1,574
Three Months Ended
December 31, 2006
Revenue $6,895 $283 ($147) $7,031
Segment
reclassifications(5) (19) - 19 -
Revenue $6,876 $283 ($128) $7,031
Operating Expenses
(excluding depreciation
and amortization) 4,146 240 51 4,437
Segment
reclassifications(5) (7) - 7 -
Operating Cash Flow $2,737 $43 ($186) $2,594
Depreciation and
Amortization 1,388 44 (56) 1,376
Operating Income (Loss) $1,349 ($1) ($130) $1,218
Capital Expenditures $1,331 ($2) $15 $1,344
Twelve Months Ended
December 31, 2007
Revenue $29,305 $1,314 $276 $30,895
Operating Expenses
(excluding depreciation
and amortization) 17,383 1,028 698 19,109
Operating Cash Flow $11,922 $286 ($422) $11,786
Depreciation and
Amortization 5,924 223 61 6,208
Operating Income (Loss) $5,998 $63 ($483) $5,578
Capital Expenditures $5,993 $35 $130 $6,158
Twelve Months Ended
December 31, 2006
Revenue $24,100 $1,053 ($187) $24,966
Segment
reclassifications(5) (58) 1 57 -
Revenue $24,042 $1,054 ($130) $24,966
Operating Expenses
(excluding depreciation
and amortization) 14,396 812 316 15,524
Segment
reclassifications(5) (21) 3 18 -
Operating Cash Flow $9,667 $239 ($464) $9,442
Depreciation and
Amortization 4,657 167 (1) 4,823
Operating Income (Loss) $5,010 $72 ($463) $4,619
Capital Expenditures $4,244 $16 $135 $4,395
Cable
Pro Forma Pro Forma
(in millions) Adjustments(1)(3) Cable
Three Months Ended December 31, 2007
Revenue $1 $7,578
Operating Expenses (excluding
depreciation and amortization) - 4,454
Operating Cash Flow $1 $3,124
Depreciation and Amortization 1 1,541
Operating Income (Loss) $0 $1,583
Capital Expenditures $2 $1,474
Three Months Ended December 31, 2006
Revenue $51 $6,946
Segment reclassifications(5) - (19)
Revenue $51 $6,927
Operating Expenses (excluding
depreciation and amortization) 33 4,179
Segment reclassifications (5) - (7)
Operating Cash Flow $18 $2,755
Depreciation and Amortization 14 1,402
Operating Income (Loss) $4 $1,353
Capital Expenditures $52 $1,383
Twelve Months Ended December 31, 2007
Revenue $129 $29,434
Operating Expenses (excluding
depreciation and amortization) 75 17,458
Operating Cash Flow $54 $11,976
Depreciation and Amortization 30 5,954
Operating Income (Loss) $24 $6,022
Capital Expenditures $11 $6,004
Twelve Months Ended December 31, 2006
Revenue $2,440 $26,540
Segment reclassifications (5) - (58)
Revenue $2,440 $26,482
Operating Expenses (excluding
depreciation and amortization) 1,552 15,948
Segment reclassifications (5) - (21)
Operating Cash Flow $888 $10,555
Depreciation and Amortization 652 5,309
Operating Income (Loss) $236 $5,246
Capital Expenditures $411 $4,655
Total
Pro Forma Total
(in millions) Adjustments(1)(4) Pro Forma
Three Months Ended December 31, 2007
Revenue $0 $8,014
Operating Expenses (excluding
depreciation and amortization) 1 4,933
Operating Cash Flow ($1) $3,081
Depreciation and Amortization (2) 1,622
Operating Income (Loss) $1 $1,459
Capital Expenditures $2 $1,576
Three Months Ended December 31, 2006
Revenue $287 $7,318
Segment reclassifications (5) - -
Revenue $287 $7,318
Operating Expenses (excluding
depreciation and amortization) 179 4,616
Segment reclassifications (5) - -
Operating Cash Flow $108 $2,702
Depreciation and Amortization 81 1,457
Operating Income (Loss) $27 $1,245
Capital Expenditures $53 $1,397
Twelve Months Ended December 31, 2007
Revenue $128 $31,023
Operating Expenses (excluding
depreciation and amortization) 75 19,184
Operating Cash Flow $53 $11,839
Depreciation and Amortization 28 6,236
Operating Income (Loss) $25 $5,603
Capital Expenditures $11 $6,169
Twelve Months Ended December 31, 2006
Revenue $2,829 $27,795
Segment reclassifications (5) - -
Revenue $2,829 $27,795
Operating Expenses (excluding
depreciation and amortization) 1,799 17,323
Segment reclassifications (5) - -
Operating Cash Flow $1,030 $10,472
Depreciation and Amortization 721 5,544
Operating Income (Loss) $309 $4,928
Capital Expenditures $307 $4,702
(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 December 31, 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 management reporting, reclassifications were
made to Cable, Programming, Corporate and Other.
COMCAST CORPORATION
TABLE 7-B
Reconciliation of Net Income to Adjusted Net Income
(Unaudited)
Three Months Ended
December 31,
2007 vs. 2006
2007 2006 Growth (%)
(in millions, except per
share data) $ EPS(1) $ EPS(1) $ EPS(1)
Net Income $602 $0.20 $390 $0.13 54% 54%
Adjustments:
Adjustment to gain on
discontinued operations,
net of tax(2) - - (39) (0.01) NM NM
Adjustment to gain on
Adelphia/Time Warner
transactions, net
of tax(2) - - (30) (0.01) NM NM
Adjusted Net Income $602 $0.20 $459 $0.15 32% 33%
Twelve Months Ended
December 31,
2007 vs. 2006
2007 2006 Growth (%)
(in millions, except per
share data) $ EPS(1) $ EPS(1) $ EPS(1)
Net Income $2,587 $0.83 $2,533 $0.79 2% 5%
Adjustments:
Gain on discontinued
operations, net
of tax(2) - - 195 0.06 NM NM
Gain on
Adelphia/Time Warner
transactions, net of
tax(2) - - 405 0.13 NM NM
Gain related to the
dissolution of the
Texas/Kansas City
Cable Partnership,
net of tax(3) 300 0.09 - - NM NM
Adjusted Net Income $2,287 $0.74 $1,933 $0.60 18% 23%
(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.
|
