(Source: Business Wire)
Comcast Corporation (NASDAQ:CMCSA, CMCSK) today reported results for the
quarter ended September 30, 2009.
Brian L. Roberts, Chairman and Chief Executive Officer of Comcast
Corporation, said, "The strength and resilience of our businesses
combined with our continued emphasis on expenses and prudent capital
management helped us achieve healthy operating and financial results in
the third quarter. We continued to execute well, maintaining our focus
on balancing revenue, cash flow and customer growth while at the same
time investing in attractive businesses like Comcast Business Services.
We also made real progress on initiatives like Wideband and All-Digital
that strengthen our competitive position now and in the future. Our goal
is to deliver the best consumer experience in the marketplace and we
remain focused on driving meaningful innovation in all of our products
and services."
Consolidated Financial Results
Revenue increased 3.0% in the third quarter of 2009 to
$8.8 billion, while Operating Cash Flow increased 2.7% to
$3.3 billion and Operating Income increased 2.4% to $1.7
billion. This growth was due to solid results at all our operating
segments.
For the nine months ended September 30, 2009, revenue increased 4.3% to
$26.6 billion, Operating Cash Flow increased 5.6% to $10.3 billion, and
Operating Income increased 8.5% to $5.4 billion, all compared to the
same time period in 2008.
($ in millions) 3rd Quarter Year to Date
2008 2009 Growth 2008 2009 Growth
Revenue
Cable $ 8,131 $ 8,356 2.8 % $ 24,147 $ 25,181 4.3 %
Programming 347 383 10.3 % 1,076 1,128 4.8 %
Corporate & Other 71 63 (10.7 %) 268 266 (0.8 %)
Total Consolidated Revenue $ 8,549 $ 8,802 3.0 % $ 25,491 $ 26,575 4.3 %
Operating Cash Flow (OCF)
Cable $ 3,251 $ 3,314 2.0 % $ 9,755 $ 10,221 4.8 %
Programming 105 118 12.5 % 307 343 11.9 %
Corporate & Other (119 ) (106 ) 10.0 % (300 ) (259 ) 13.4 %
Total Consolidated OCF $ 3,237 $ 3,326 2.7 % $ 9,762 $ 10,305 5.6 %
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For additional detail on revenue and operating expenses, customer
metrics, and capital expenditures, please refer to the trending
schedules on Comcast's Investor Relations website at www.cmcsa.com
or www.cmcsk.com.
Earnings per Share¹ (EPS) for the quarter ended September
30, 2009 was $0.33, an increase of 26.9% compared to the $0.26 reported
in the third quarter of 2008. Third quarter 2009 EPS includes the
recognition of income tax benefits of $251 million or $0.09 per share,
partially offset by $113 million or $0.04 per share in one-time
financing expenses. Third quarter 2008 EPS included income tax benefits
of $80 million or $0.03 per share. Except for these items, third quarter
2009 EPS would have grown 21.7% over the comparable 2008 period.
Earnings per Share for the nine months ended September 30, 2009
was $0.93, an increase of 29.2% compared to $0.72 reported in the prior
year. Our 2009 EPS includes favorable settlements and the recognition of
income tax benefits of $436 million or $0.16 per share, partially offset
by $113 million or $0.04 per share in one-time financing expenses. Our
2008 EPS included a gain related to the January 2008 dissolution of the
Insight Midwest partnership of $144 million or $0.05 per share and
income tax benefits of $80 million or $0.03 per share. Except for these
items, year-to-date EPS would have grown 26.6% over the comparable
period in 2008.
Capital Expenditures in the third quarter declined 6.1%
from the prior year to $1.2 billion, or 13.9% of total revenue,
reflecting a decreased level of capital intensity at our Cable segment.
For the nine months ended September 30, 2009, capital expenditures
decreased 13.1% to $3.5 billion, or 13.2% of total revenue.
Free Cash Flow (FCF) (excluding any impact from the
Economic Stimulus packages) of $1.1 billion in the third
quarter of 2009 increased 19.8% compared to $928 million in the third
quarter of 2008, reflecting growth in Consolidated Operating Cash Flow
and lower capital expenditures. Free Cash Flow for the nine months ended
September 30, 2009 totaled $3.6 billion, a 30.6% increase as compared to
$2.8 billion in the same time period in 2008.
($ in millions) 3rd Quarter Year to Date
2008 2009 Growth 2008 2009 Growth
Net Cash Provided by Operating Activities $ 2,445 $ 2,612 6.8 % $ 7,373 $ 7,725 4.8 %
Capital Expenditures (1,306 ) (1,227 ) (6.1 %) (4,037 ) (3,508 ) (13.1 %)
Cash Paid for Capitalized Software and Intangibles (131 ) (142 ) 8.4 % (376 ) (383 ) 1.9 %
Adjustments for Payment of Tax on Nonoperating Items 88 (84 ) NM 316 66 NM
FCF (Including Economic Stimulus Packages) $ 1,096 $ 1,159 5.7 % $ 3,276 $ 3,900 19.0 %
Impact from Economic Stimulus Packages (168 ) (47 ) NM (483 ) (252 ) NM
Free Cash Flow $ 928 $ 1,112 19.8 % $ 2,793 $ 3,648 30.6 %
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Note: The definition of Free Cash Flow remains unchanged and
specifically excludes any impact from the 2008 or 2009 Economic Stimulus
packages.
Cable Segment Results
Revenue from the Cable segment increased 2.8% to $8.4
billion for the third quarter of 2009 as compared to $8.1 billion in the
third quarter of 2008. This increase reflects continued growth in
high-speed Internet (HSI), Comcast Digital Voice (CDV) and Comcast
Business Services, partially offset by lower advertising revenue. The
monthly average total revenue per video customer increased 5.6% to
$116.91 from $110.67 in the third quarter of 2008, reflecting an
increasing number of customers taking multiple products and a higher
contribution from Comcast Business Services.
For the nine months ended September 30, 2009, revenue from the Cable
segment increased 4.3% to $25.2 billion compared to $24.1 billion in
2008.
Operating Cash Flow from the Cable segment grew 2.0% to
$3.3 billion in the third quarter of 2009 compared to the same period
last year. Operating Cash Flow margin was 39.7%, a slight decrease from
the 40.0% achieved in the third quarter of 2008. These results reflect
increases in video programming, customer service and marketing expenses,
partially offset by improved operating efficiencies in Comcast Digital
Voice and High-Speed Internet.
For the nine months ended September 30, 2009, Operating Cash Flow from
the Cable segment increased 4.8% to $10.2 billion compared to $9.8
billion in 2008. Year-to-date Operating Cash Flow margin was 40.6%, a
slight increase from the 40.4% reported in the first nine months of 2008.
Customers2. As of
September 30, 2009, Comcast's video, high-speed Internet and voice
customers totaled 46.8 million, an increase of 3.4% compared to
the third quarter of 2008.
(in thousands) Customers Net Adds
3Q08 3Q09 Growth 3Q09 YTD
Video Customers 24,415 23,759 (2.7 %) (132 ) (424 )
High-Speed Internet Customers 14,745 15,684 6.4 % 361 755
Voice Customers 6,133 7,379 20.3 % 375 906
Combined Video, HSI and Voice Customers 45,294 46,821 3.4 % 604 1,237
Digital Video Customers 16,758 18,005 7.4 % 463 1,001
Total Revenue Generating Units 62,051 64,826 4.5 % 1,067 2,238
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Programming Segment Results
The Programming segment reported third quarter 2009 revenue of $383
million, a 10.3% increase from 2008, reflecting higher affiliate and
advertising revenue. Operating Cash Flow increased 12.5% to $118 million
in the third quarter of 2009, reflecting the impact of timing of certain
marketing and programming expenses which are expected to be incurred in
the fourth quarter.
For the nine months ended September 30, 2009, the Programming segment
revenue increased 4.8% to $1.1 billion compared to the same time period
in 2008. Operating Cash Flow increased to $343 million, an
increase of 11.9% from the same period last year.
Corporate and Other
Corporate and Other includes corporate overhead, Comcast Interactive
Media (CIM), Comcast-Spectacor, and other operations and eliminations
between Comcast's businesses. For the quarter ended September 30, 2009,
Corporate and Other reported a 10.7% decrease in revenue to $63 million,
driven by an increase in corporate eliminations. The Operating Cash Flow
loss for the third quarter of 2009 was $106 million compared to a loss
of $119 million in the third quarter of 2008.
For the nine months ended September 30, 2009, Corporate and Other
revenue reported a 0.8% decrease in revenue to $266 million from the
$268 million reported in the first nine months of 2008. The Operating
Cash Flow loss was $259 million compared to a loss of $300 million in
the same time period in 2008.
Share Repurchase
In the third quarter of 2009, Comcast repurchased 16.1 million of its
common shares for $250 million. Year-to-date, Comcast has repurchased
31.6 million of its common shares for $465 million. As of September 30,
2009, Comcast had approximately $3.6 billion of availability remaining
under its share repurchase authorization, and may repurchase stock from
time to time subject to market conditions.
Dividend
During the first ten months of 2009, Comcast paid four cash dividends
totaling $761 million. Comcast paid quarterly cash dividends of $180
million on January 28, 2009, $195 million on April 29, 2009, $194
million on July 29, 2009 and $193 million on October 28, 2009.
Notes:
1 Earnings per share amounts are presented on a diluted basis.
2 Customer data is presented on a pro forma basis. Pro forma customer data includes 7,000 video customers acquired through an acquisition in November 2008. The impact of this acquisition on segment operating results was not material.
Minor differences may exist due to rounding.
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Conference Call Information
Comcast Corporation will host a conference call with the financial
community today, November 4, 2009 at 8:30 a.m. Eastern Time (ET). The
conference call will be broadcast live on Comcast's Investor Relations
website at www.cmcsa.com
or www.cmcsk.com.
Those parties interested in participating via telephone should dial
(800) 263-8495 with the conference ID number 31876445. A replay of the
call will be available on the Investor Relations website starting at
12:30 p.m. Eastern Time (ET) on Wednesday, November 4, 2009 and will be
available until Monday, November 9, 2009 at midnight Eastern Time (ET).
To access the rebroadcast, please dial (800) 642-1687 and enter
conference ID number 31876445. To automatically receive Comcast
financial news by email, please visit www.cmcsa.com
or www.cmcsk.com
and subscribe to email alerts.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements. Readers are
cautioned that such forward-looking statements involve risks and
uncertainties that could cause actual events or our actual results to
differ materially from those expressed in any such forward-looking
statements. Readers are directed to Comcast's periodic and other reports
filed with the Securities and Exchange Commission (SEC) for a
description of such risks and uncertainties. We undertake no obligation
to update any forward-looking statements.
Non-GAAP Financial Measures
In this discussion, we sometimes refer to financial measures that are
not presented according to generally accepted accounting principles in
the U.S. (GAAP). Certain of these measures are considered "non-GAAP
financial measures" under the SEC regulations; those rules require the
supplemental explanations and reconciliations that are in Comcast's Form
8-K (Quarterly Earnings Release) furnished to the SEC. All percentages
are calculated on whole numbers. Minor differences may exist due to
rounding.
About Comcast Corporation
Comcast Corporation (Nasdaq:CMCSA, CMCSK) (www.comcast.com)
is the nation's leading provider of entertainment, information and
communication products and services. With 23.8 million video customers,
15.7 million high-speed Internet customers, and 7.4 million Comcast
Digital Voice customers, Comcast is principally involved in the
development, management and operation of cable systems and in the
delivery of programming content.
Comcast's content networks and investments include E! Entertainment
Television, Style Network, Golf Channel, VERSUS, G4, PBS KIDS Sprout, TV
One, ten sports networks operated by Comcast Sports Group and Comcast
Interactive Media, which develops and operates Comcast's Internet
businesses, including Comcast.net (www.comcast.net).
Comcast also has a majority ownership in Comcast-Spectacor, whose major
holdings include the Philadelphia Flyers NHL hockey team, the
Philadelphia 76ers NBA basketball team and two large multipurpose arenas
in Philadelphia.
Comcast Corporation
TABLE 1
Condensed Consolidated Statement of Operations (Unaudited)
Three Months Ended Nine Months Ended
(in millions, except per share data) September 30, September 30,
2008 2009 2008 2009
Revenue $ 8,549 $ 8,802 $ 25,491 $ 26,575
Operating expenses 3,345 3,490 10,040 10,600
Selling, general and administrative expenses 1,967 1,986 5,689 5,670
5,312 5,476 15,729 16,270
Operating cash flow 3,237 3,326 9,762 10,305
Depreciation expense 1,332 1,362 4,093 4,148
Amortization expense 235 253 694 760
1,567 1,615 4,787 4,908
Operating income 1,670 1,711 4,975 5,397
Other income (expense)
Interest expense (601 ) (707 ) (1,840 ) (1,828 )
Investment income (loss), net 74 148 83 218
Equity in net income (losses) of affiliates, net 3 (17 ) (36 ) (44 )
Other income (expense) 11 2 295 13
(513 ) (574 ) (1,498 ) (1,641 )
Income before income taxes 1,157 1,137 3,477 3,756
Income tax expense (401 ) (203 ) (1,364 ) (1,088 )
Net income from consolidated operations 756 934 2,113 2,668
Net (income) loss attributable to noncontrolling interests 15 10 22 15
Net income attributable to Comcast Corporation $ 771 $ 944 $ 2,135 $ 2,683
Diluted earnings per common share attributable to Comcast Corporation stockholders $ 0.26 $ 0.33 $ 0.72 $ 0.93
Dividends declared per common share attributable to Comcast Corporation stockholders $ 0.06 $ 0.07 $ 0.19 $ 0.20
Diluted weighted-average number of common shares 2,920 2,877 2,973 2,890
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Comcast Corporation
TABLE 2
Condensed Consolidated Balance Sheet (Unaudited)
(in millions) December 31, September 30,
2008 2009
ASSETS
Current Assets
Cash and cash equivalents $ 1,195 $ 862
Investments 59 56
Accounts receivable, net 1,626 1,639
Other current assets 836 849
Total current assets 3,716 3,406
Investments 4,783 5,699
Property and equipment, net 24,444 23,605
Franchise rights 59,449 59,442
Goodwill 14,889 14,934
Other intangible assets, net 4,558 4,209
Other noncurrent assets, net 1,178 1,168
$ 113,017 $ 112,463
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses related to trade creditors $ 3,393 $ 3,133
Accrued expenses and other current liabilities 3,268 3,005
Current portion of long-term debt 2,278 954
Total current liabilities 8,939 7,092
Long-term debt, less current portion 30,178 28,493
Deferred income taxes 26,982 27,566
Other noncurrent liabilities 6,171 6,763
Redeemable noncontrolling interests 171 168
Equity
Comcast Corporation stockholders' equity 40,450 42,311
Noncontrolling interests 126 70
Total Equity 40,576 42,381
$ 113,017 $ 112,463
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Comcast Corporation
TABLE 3
Consolidated Statement of Cash Flows (Unaudited)
(in millions) Nine Months Ended
September 30,
2008 2009
OPERATING ACTIVITIES
Net income from consolidated operations $ 2,113 $ 2,668
Adjustments to reconcile net income from consolidated operations to net cash provided by operating activities:
Depreciation 4,093 4,148
Amortization 694 760
Share-based compensation 195 192
Noncash interest expense (income), net 164 125
Equity in net (income) losses of affiliates, net 36 44
(Gains) losses on investments and noncash other (income) expense, net (287 ) (146 )
Deferred income taxes 609 572
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Change in accounts receivable, net 4 (11 )
Change in accounts payable and accrued expenses related to trade creditors (21 ) (73 )
Change in other operating assets and liabilities (227 ) (554 )
Net cash provided by operating activities 7,373 7,725
FINANCING ACTIVITIES
Proceeds from borrowings 3,513 1,843
Repurchases and repayments of debt (1,143 ) (4,709 )
Repurchases of common stock (2,800 ) (438 )
Dividends paid (367 ) (568 )
Issuances of common stock 53 1
Other (148 ) (186 )
Net cash provided by (used in) financing activities (892 ) (4,057 )
INVESTING ACTIVITIES
Capital expenditures (4,037 ) (3,508 )
Cash paid for software and other intangible assets (376 ) (383 )
Acquisitions, net of cash acquired (700 ) (36 )
Proceeds from sales of investments 452 31
Purchases of investments (67 ) (142 )
Other (2 ) 37
Net cash provided by (used in) investing activities (4,730 ) (4,001 )
Increase (decrease) in cash and cash equivalents 1,751 (333 )
Cash and cash equivalents, beginning of period 963 1,195
Cash and cash equivalents, end of period $ 2,714 $ 862
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