http://www.businesswire.com/news/home/20091104005138/en
* Consolidated Revenue Increased 3.0%
* Consolidated Operating Cash Flow Increased 2.7%
* Consolidated Operating Income Increased 2.4%
* Earnings per Share of $0.33 Increased 26.9%
* Free Cash Flow Increased 19.8% to $1.1 Billion
* Repurchased 16.1 Million Common Shares for $250 Million
PHILADELPHIA--(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 %
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 %
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 46.8million, 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
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 $343million, 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 $119million 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.
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
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
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
Comcast Corporation
Investor Contacts:
Marlene S. Dooner, 215-286-7392
Jane B. Kearns, 215-286-4794
Michael A. Kelman, 215-286-3035
or
Press Contacts:
D`Arcy Rudnay, 215-286-8582
John Demming, 215-286-8011
