EX-99.1 2 dex991.htm COMCAST CORPORATION PRESS RELEASE DATED AUGUST 6, 2009 Comcast Corporation press release dated August 6, 2009

Exhibit 99.1

 

PRESS RELEASE    LOGO

 

 

Investor Contacts:     

Press Contacts:

  

Marlene S. Dooner

  

(215) 286-7392

    

D’Arcy Rudnay

  

(215) 286-8582

Jane B. Kearns

  

(215) 286-4794

    

John Demming

  

(215) 286-8011

Michael A. Kelman

  

(215) 286-3035

       

COMCAST REPORTS SECOND QUARTER 2009 RESULTS

 

¡  

Consolidated Revenue Increased 4.5%

 

¡  

Consolidated Operating Cash Flow Increased 5.5%

 

¡  

Consolidated Operating Income Increased 7.1%

 

¡  

Earnings per Share of $0.33 Increased 57.1%

 

¡  

Generated Free Cash Flow of $1.2 Billion

 

¡  

Repurchased 15.5 Million Common Shares for $215 Million

Philadelphia, PA – August 6, 2009 …Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported results for the quarter ended June 30, 2009.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “We delivered solid results in the second quarter, highlighting the strength of our subscription businesses and our continued focus on expense and capital management. At the same time, we are innovating and investing in our products and services and executing on our strategic initiatives, including going ‘All-Digital’, deploying wideband, and launching a wireless service and On Demand Online. We believe these initiatives and our focus on delivering a superior customer experience strengthen our competitive position and build long-term value for shareholders.”

Consolidated Financial Results

Revenue increased 4.5% in the second quarter of 2009 to $8.9 billion, while Operating Cash Flow increased 5.5% to $3.5 billion and Operating Income increased 7.1% to $1.9 billion. This growth was due to solid results at all our operating segments.

For the six months ended June 30, 2009, revenue increased 4.9% to $17.8 billion, Operating Cash Flow increased 7.0% to $7.0 billion, and Operating Income increased 11.5% to $3.7 billion, all compared to the same time period in 2008.

 

                                       
   

($ in millions)

  

2nd Quarter

  

Year to Date

   
         2008    2009    Growth    2008    2009    Growth    
 

Revenue

                   
 

Cable

   $ 8,100    $ 8,476    4.6%     $ 16,016    $ 16,825    5.1%  
 

Programming

     366      384    5.1%       729      745    2.2%  
 

Corporate & Other

     87      78    (11.9%)      197      203    2.8%  
                 
 

Total Consolidated Revenue

   $ 8,553    $ 8,938    4.5%     $ 16,942    $ 17,773    4.9%  
 

Operating Cash Flow (OCF)

                   
 

Cable

   $ 3,362     $ 3,501     4.1%    $ 6,504     $ 6,907     6.2%  
 

Programming

     89       113     28.3%      202       225     11.5%  
 

Corporate & Other

     (100)      (79)    20.7%      (181)      (153)    15.6%  
                 
 

Total Consolidated OCF

   $ 3,351     $ 3,535     5.5%    $ 6,525     $ 6,979     7.0%  
                                       

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 Share (EPS) for the quarter ended June 30, 2009 was $0.33, an increase of 57.1% compared to the $0.21 reported in the second quarter of 2008. This quarter’s results include favorable settlements related to federal and state taxes.

Earnings per Share for the six months ended June 30, 2009 was $0.60, an increase of 30.4% compared to the prior year. Excluding $144 million or a $0.05 per share gain related to the January 2008 dissolution of the Insight Midwest partnership, Adjusted Earnings per Share1 increased 46.3% for the six months ended June 30, 2009.

 

                                            
        

2nd Quarter

        Year to Date    
         2008    2009    Growth         2008    2009    Growth    
 

Earnings per Share

   $0.21    $0.33    57.1%       $0.46     $0.60    30.4%  
 

Adjustments, net of tax:

                      
 

Gain from dissolution of cable partnership

   -    -    -       (0.05)    -    NM  
                
 

Adjusted Earnings per Share

   $0.21    $0.33    57.1%       $0.41     $0.60    46.3%  
                                            

Capital Expenditures in the second quarter decreased 13.7% from the prior year to $1.1 billion, or 12.5% of total revenue, reflecting a decreased level of capital intensity at our Cable segment. For the six months ended June 30, 2009, capital expenditures decreased 16.5% to $2.3 billion, or 12.8% of total revenue.

Free Cash Flow (excluding any impact from the Economic Stimulus packages) of $1.2 billion in the second quarter of 2009 was consistent with the prior year, reflecting growth in Consolidated Operating Cash Flow and lower capital expenditures, offset by higher cash taxes. Free Cash Flow (FCF) for the six months ended June 30, 2009 totaled $2.5 billion, a 36.0% increase as compared to $1.9 billion in 2008.

 

                                            
    ($ in millions)   

2nd Quarter

        Year to Date    
         2008    2009    Growth         2008    2009    Growth    
 

Net Cash Provided by Operating Activities

   $2,669     $2,601     (2.5%)       $4,928     $5,113     3.8%   
 

Capital Expenditures

   (1,300)    (1,121)    (13.7%)       (2,731)    (2,281)    (16.5%)  
 

Cash Paid for Capitalized Software and Intangibles

   (119)    (108)    (9.2%)       (245)    (241)    (1.6%)  
 

Adjustments for Payment of Tax on Nonoperating Items

   228        NM        228     150     (34.2%)  
                
 

FCF (Including Economic Stimulus Packages)

   $1,478     $1,375     (7.0%)       $2,180     $2,741     25.7%   
 

Impact from Economic Stimulus Packages

   (315)    (205)    (34.9%)       (315)    (205)    (34.9%)  
                
 

Free Cash Flow

   $1,163     $1,170     0.6%        $1,865     $2,536     36.0%   
                                            

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 4.6% to $8.5 billion for the second quarter of 2009 as compared to $8.1 billion in the second quarter of 2008. This increase reflects continued, organic growth in all residential and commercial subscription businesses, partially offset by lower advertising revenue. The monthly average total revenue per video customer increased 7.4% from $109.61 in the second quarter of 2008 to $117.74, reflecting an increasing number of customers taking multiple products and a higher contribution from Comcast Business Services.

For the six months ended June 30, 2009, revenue from the Cable segment increased 5.1% to $16.8 billion compared to $16.0 billion in 2008.

Operating Cash Flow grew 4.1% to $3.5 billion in the second quarter of 2009 from $3.4 billion in the second quarter of 2008. Operating Cash Flow margin was 41.3%, a slight decrease from the 41.5% reported in the second quarter of 2008.

For the six months ended June 30, 2009, Operating Cash Flow from the Cable segment increased 6.2% to $6.9 billion compared to $6.5 billion in 2008. Year-to-date Operating Cash Flow margin was 41.1%, an

 

2


increase from the 40.6% reported in the first six months of 2008. These results reflect a continued focus on expense management, improved operating efficiencies in Comcast Digital Voice (CDV) and High-Speed Internet (HSI) and lower marketing expenses, offset by increases in video programming, technical service and customer service expenses.

Customers2. As of June 30, 2009, Comcast’s video, high-speed Internet and voice customers totaled 46.2 million, an increase of 3.7% compared to the second quarter of 2008.

 

                                      
    (in thousands)    Customers        Net Adds    
         2Q08    2Q09    Growth        2Q09    YTD    
 

Video Customers

   24,563    23,891    (2.7%)      (214)    (292)  
 

High-Speed Internet Customers

   14,364    15,322    6.7%       65     393   
 

Voice Customers

   5,654    7,004    23.9%       233     531   
               
 

Combined Video, HSI and Voice Customers

   44,580    46,217    3.7%       84     633   
 

Digital Video Customers

   16,341    17,542    7.4%       250     538   
               
 

Total Revenue Generating Units

   60,921    63,760    4.7%       334     1,171   
                                      

Programming Segment Results

The Programming segment reported second quarter 2009 revenue of $384 million, a 5.1% increase from 2008. Operating Cash Flow increased 28.3% to $113 million in the second quarter of 2009, reflecting the impact of timing of certain marketing and programming expenses which are expected to be incurred in the second half of the year.

For the six months ended June 30, 2009, the Programming segment revenue increased 2.2% to $745 million compared to the same time period in 2008. Operating Cash Flow increased to $225 million, an increase of 11.5% 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 June 30, 2009, Corporate and Other reported a 11.9% decrease in revenue to $78 million. The Operating Cash Flow loss for the second quarter of 2009 was $79 million compared to a loss of $100 million in the second quarter of 2008.

For the six months ended June 30, 2009, Corporate and Other revenue increased to $203 million from the $197 million reported in the first six months of 2008. The Operating Cash Flow loss was $153 million compared to a loss of $181 million in the same time period in 2008, reflecting a focus on expense management.

Share Repurchase

In the second quarter of 2009, Comcast repurchased 15.5 million of its common shares for $215 million. As of June 30, 2009, Comcast had approximately $3.9 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 seven months of 2009, Comcast paid three cash dividends totaling $568 million. Comcast paid quarterly cash dividends of $180 million on January 28, 2009, $195 million on April 29, 2009 and $194 million on July 29, 2009.

Notes:

 

1

Earnings per share are adjusted for gains, net of tax, related to the dissolution of the 2008 Insight Midwest Partnership. Please refer to Table 4 for a reconciliation of adjusted net income attributable to Comcast Corporation and earnings per share. 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.

 

3


Minor differences may exist due to rounding.

###

Conference Call Information

Comcast Corporation will host a conference call with the financial community today, August 6, 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. A recording of the call will be available on the Investor Relations website starting at 12:30 p.m. ET on August 6, 2009. Those parties interested in participating via telephone should dial (800) 263-8495 with the conference ID number 15891171. A telephone replay will begin immediately following the call until Tuesday, August 11, 2009 at midnight ET. To access the rebroadcast, please dial (800) 642-1687 and enter passcode number 15891171. 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) (http://www.comcast.com) is one of the nation’s leading providers of entertainment, information and communications products and services. With 23.9 million video customers, 15.3 million high-speed Internet customers, and 7.0 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 business, 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.

 

4


TABLE 1

Condensed Consolidated Statement of Operations (Unaudited)

  LOGO

 

 

    (in millions, except per share data)   

Three Months Ended

June 30,

    

Six Months Ended

June 30,

 
             2008             2009              2008             2009      
 

Revenue

   $ 8,553      $ 8,938       $ 16,942      $ 17,773   
 

Operating expenses

     3,334        3,545         6,695        7,110   
 

Selling, general and administrative expenses

     1,868        1,858         3,722        3,684   
                                   
       5,202        5,403         10,417        10,794   
                                   
 

Operating cash flow

     3,351        3,535         6,525        6,979   
 

Depreciation expense

     1,371        1,406         2,761        2,786   
 

Amortization expense

     230        254         459        507   
                                   
       1,601        1,660         3,220        3,293   
                                   
 

Operating income

     1,750        1,875         3,305        3,686   
 

Other income (expense)

         
 

Interest expense

     (618     (551      (1,239     (1,121
 

Investment income (loss), net

     (70     57         9        70   
 

Equity in net income (losses) of affiliates, net

     (4     (13      (39     (27
 

Other income (expense)

     16        12         284        11   
                                   
       (676     (495      (985     (1,067
                                   
 

Income before income taxes

     1,074        1,380         2,320        2,619   
 

Income tax expense

     (455     (424      (963     (885
                                   
 

Net income from consolidated operations

     619        956         1,357        1,734   
 

Net (income) loss attributable to noncontrolling interests

     13        11         7        5   
                                   
  Net income attributable to Comcast Corporation    $ 632      $ 967       $ 1,364      $ 1,739   
                                   
 

Diluted earnings per common share attributable to Comcast Corporation

stockholders

   $ 0.21      $ 0.33       $ 0.46      $ 0.60   
                                   
 

Adjusted earnings per common share attributable to Comcast Corporation

stockholders (1)

   $ 0.21      $ 0.33       $ 0.41      $ 0.60   
                                   
 

Dividends declared per common share attributable to Comcast

Corporation stockholders

   $ 0.06      $ 0.07       $ 0.13      $ 0.14   
                                   
 

Diluted weighted-average number of common shares

     2,970        2,891         2,995        2,893   
                                   
           

 

  (1)

Please refer to Table 4 for a reconciliation of adjusted net income and earnings per share attributable to Comcast Corporation stockholders.

 

5


TABLE 2

Condensed Consolidated Balance Sheet (Unaudited)

  LOGO

 

 

    (in millions)    December 31,
        2008        
    June 30,
        2009        
 
 

ASSETS

    
 

Current Assets

    
 

Cash and cash equivalents

   $ 1,195      $ 3,989   
 

Investments

     59        62   
 

Accounts receivable, net

     1,626        1,677   
 

Other current assets

     836        809   
                  
 

Total current assets

     3,716        6,537   
                  
 

Investments

     4,783        5,190   
 

Property and equipment, net

     24,444        23,715   
 

Franchise rights

     59,449        59,446   
 

Goodwill

     14,889        14,928   
 

Other intangible assets, net

     4,558        4,297   
 

Other noncurrent assets, net

     1,178        1,124   
                  
     $ 113,017      $ 115,237   
                  
 

LIABILITIES AND EQUITY

    
 

Current Liabilities

    
 

Accounts payable and accrued expenses related to trade creditors

   $ 3,393      $ 3,070   
 

Accrued expenses and other current liabilities

     3,268        3,320   
 

Current portion of long-term debt

     2,278        4,167   
                  
 

Total current liabilities

     8,939        10,557   
                  
 

Long-term debt, less current portion

     30,178        28,870   
 

Deferred income taxes

     26,982        27,394   
 

Other noncurrent liabilities

     6,171        6,435   
 

Redeemable noncontrolling interests

     171        167   
 

Equity

    
 

Comcast Corporation stockholders' equity

     40,450        41,733   
 

Noncontrolling interests

     126        81   
                  
 

Total Equity

     40,576        41,814   
                  
     $ 113,017      $ 115,237   
                  
      

 

6


TABLE 3

Consolidated Statement of Cash Flows (Unaudited)

  LOGO

 

 

  (in millions)     

 

Six Months Ended

June 30,

  

  

           2008                2009       
 

OPERATING ACTIVITIES

    
 

Net income from consolidated operations

   $ 1,357      $ 1,734   
 

Adjustments to reconcile net income from consolidated operations to net cash provided by operating activities:

    
 

Depreciation

     2,761        2,786   
 

Amortization

     459        507   
 

Share-based compensation

     123        121   
 

Noncash interest expense (income), net

     132        81   
 

Equity in net losses (income) of affiliates, net

     39        27   
 

(Gains) losses on investments and noncash other (income) expense, net

     (234     (23
 

Deferred income taxes

     403        394   
 

Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:

    
 

Change in accounts receivable, net

     (7     (49
 

Change in accounts payable and accrued expenses related to trade creditors

     (69     (112
 

Change in other operating assets and liabilities

     (36     (353
                  
 

Net cash provided by operating activities

     4,928        5,113   
                  
 

FINANCING ACTIVITIES

    
 

Proceeds from borrowings

     2,009        2,522   
 

Repurchases and repayments of debt

     (831     (1,767
 

Repurchases of common stock

     (1,979     (108
 

Dividends paid

     (185     (375
 

Issuances of common stock

     42        1   
 

Other

     (135     (22
                  
 

Net cash provided by (used in) financing activities

     (1,079     251   
                  
 

INVESTING ACTIVITIES

    
 

Capital expenditures

     (2,731     (2,281
 

Cash paid for software and other intangible assets

     (245     (241
 

Acquisitions, net of cash acquired

     (331     (27
 

Proceeds from sales of investments

     320        16   
 

Purchases of investments

     (41     (67
 

Other

     (17     30   
                  
 

Net cash provided by (used in) investing activities

     (3,045     (2,570
                  
 

Increase (decrease) in cash and cash equivalents

     804        2,794   
 

Cash and cash equivalents, beginning of period

     963        1,195   
                  
 

Cash and cash equivalents, end of period

   $ 1,767      $ 3,989   
                  
      

 

7


TABLE 4

Reconciliation of Net Income attributable to Comcast Corporation to Adjusted Net Income attributable to Comcast Corporation (Unaudited)

  LOGO

 

 

                        
        

Three Months Ended

June 30,

                   
         2008      2009        2009 vs. 2008
Growth (%)
   
    (in millions, except per share data)   

 

      $      

        EPS (1)                $              EPS (1)                  $                EPS (1)        
                      
 

Net Income attributable to Comcast Corporation

   $632      $0.21       $967    $0.33      53%      57%  
 
                      
 
 

Adjusted Net Income attributable to Comcast Corporation

   $632      $0.21       $967    $0.33      53%      57%  
                      
                        
        

Six Months Ended

June 30,

                   
         2008      2009        2009 vs. 2008
Growth (%)
   
 
         $     EPS (1)      $    EPS (1)        $      EPS (1)    
                      
 

Net Income attributable to Comcast Corporation

   $1,364      $0.46       $1,739    $0.60      27%      30%  
 
 

Adjustments:

                      
 

Gain related to the dissolution of the Insight Midwest Partnership, net of tax (2)

   (144   (0.05    -    -      NM      NM  
                      
 
 

Adjusted Net Income attributable to Comcast Corporation

   $1,220      $0.41       $1,739    $0.60      42%      46%  
                      
              

 

  (1)

Based on diluted average number of common shares for the respective periods as presented in Table 1.

 

  (2)

2008 Net Income attributable to Comcast Corporation includes a $235 million ($144 million net of tax) gain related to the dissolution of the Insight Midwest Partnership.

 

Note: Minor differences may exist due to rounding.

 

8