EX-99.1 2 a14-10785_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

PRESS RELEASE

 

 

 

COMCAST REPORTS 1st QUARTER 2014 RESULTS

 

 

Consolidated 1st Quarter 2014 Highlights:

 

·                  Consolidated Revenue Increased 13.7%, Operating Cash Flow Increased 10.0% and Operating Income Increased 16.3%

 

·                  Earnings per Share Increased 31.5% to $0.71; Excluding Gains on Sales and Acquisition-Related Items, EPS Increased 33.3% to $0.68

 

·                  Quarterly Dividends and Quarterly Share Repurchases Increased 35.5% to $1.3 Billion

 

Cable Communications 1st Quarter 2014 Highlights:

 

·                  Cable Communications Revenue Increased 5.3% and Operating Cash Flow Increased 4.3%

 

·                  Cable Communications Customer Relationships Increased by 124,000 to 26.8 Million

 

·                  Video Customers Increased by 24,000, the Second Consecutive Quarter of Customer Growth

 

·                  High-Speed Internet Customers Increased by 383,000; Revenue Growth of 9.0% Is the Strongest Rate of Growth in Two Years

 

·                  Business Services Revenue Increased 23.9%, Approaching a $4 Billion Annual Run-Rate

 

NBCUniversal 1st Quarter 2014 Highlights:

 

·                  NBCUniversal Revenue Increased 28.8% and Operating Cash Flow Increased 37.6%

 

·                  Broadcast Revenue Increased 17.0%, Excluding Olympics, and Is Ranked #1 Season-to-Date Among Adults 18-49

 

·                  Film Operating Cash Flow Increased Over $200 Million

 

·                  The Sochi Olympics Generated Over $1.1 Billion in Revenue

 

PHILADELPHIA – April 22, 2014… Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported results for the quarter ended March 31, 2014.

 

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “Our operating momentum is continuing as we enter 2014 and is highlighted by our second consecutive quarter of video customer growth, as well as strength in high-speed Internet and business services.   Our focus on the customer experience continues to drive our success as we deliver the most innovative products in the industry and make measurable progress in customer service.  At NBCUniversal, we had another superb quarter with double-digit revenue and operating cash flow growth driven by the tremendously successful Sochi Olympics and the best season-to-date broadcast ratings in a decade. Overall, the company is performing well and the more planning we do for our proposed merger with Time Warner Cable, the more excited we are by the opportunities for the combined company.  Comcast has tremendous momentum right now, and we believe the TWC transaction will strengthen a truly world-class organization that will be well positioned to compete and yield meaningful benefits to our customers, employees, and shareholders.”

 

Consolidated Financial Results

 

 

 

 

 

1st Quarter

 

($ in millions)

 

 

 

 

2013

2014

Growth

Revenue

 

 

 

 

$15,310

$17,408

13.7%

Excluding Olympics

 

 

 

 

$15,310

$16,305

6.5%

Operating Cash Flow1

 

 

 

 

$5,034

$5,538

10.0%

Excluding TWC Transaction Costs

 

 

 

 

$5,034

$5,555

10.4%

Operating Income

 

 

 

 

$3,067

$3,568

16.3%

Earnings per Share2

 

 

 

 

$0.54

$0.71

31.5%

Excluding Adjustments (see Table 4)

 

 

 

 

$0.51

$0.68

33.3%

Free Cash Flow3

 

 

 

 

$3,138

$2,824

(10.0%)

 

For additional detail on segment revenue and expenses, customer metrics, capital expenditures, and free cash flow, please refer to the trending schedules on Comcast’s Investor Relations website at www.cmcsa.com or www.cmcsk.com.

 



 

Consolidated Revenue for the first quarter of 2014 increased 13.7% to $17.4 billion. Excluding $1.1 billion of revenue generated by the 2014 Sochi Olympics, consolidated revenue increased 6.5%. Consolidated Operating Cash Flow increased 10.0% to $5.5 billion. Excluding $17 million of costs related to the Time Warner Cable transaction in the first quarter of 2014, consolidated operating cash flow increased 10.4% (See Table 5). Consolidated Operating Income increased 16.3% to $3.6 billion.

 

Earnings per Share (EPS) for the first quarter of 2014 was $0.71, a 31.5% increase from the $0.54 reported in the first quarter of 2013. Excluding gains on the sale of an investment and a favorable resolution of a prior acquisition contingency in the first quarter of 2014, as well as a gain on the sale of wireless spectrum licenses in the first quarter of 2013, EPS increased 33.3% to $0.68 (see Table 4).

 

Capital Expenditures increased 6.4% to $1.4 billion in the first quarter of 2014 compared to the first quarter of 2013. Cable Communications’ capital expenditures increased $51 million, or 4.6%, to $1.1 billion in the first quarter of 2014, primarily reflecting increased spending on customer premise equipment related to the deployment of the X1 platform and wireless gateways. Cable capital expenditures represented 10.6% of Cable revenue in the first quarter of 2014 compared to 10.7% in last year’s first quarter.  NBCUniversal’s capital expenditures increased $28 million to $291 million in the first quarter of 2014, primarily reflecting increased investments in Theme Parks and facilities.

 

Free Cash Flow decreased 10.0% to $2.8 billion in the first quarter of 2014 compared to $3.1 billion in the first quarter of 2013, reflecting increased working capital, mainly driven by the Olympics and higher film and TV production spend, capital expenditures and cash taxes on operating items, partially offset by growth in consolidated operating cash flow.

 

 

 

 

 

 

1st Quarter

($ in millions)

 

 

 

 

 

2013

2014

Growth

Operating Cash Flow

 

 

 

 

 

$5,034

$5,538

10.0%

Capital Expenditures

 

 

 

 

 

(1,361)

(1,448)

6.4%

Cash Paid for Capitalized Software and Other Intangible Assets

 

 

 

 

 

(182)

(217)

19.2%

Cash Interest Expense

 

 

 

 

 

(617)

(623)

1.0%

Cash Taxes on Operating Items

 

 

 

 

 

(194)

(268)

38.1%

Changes in Operating Assets and Liabilities

 

 

 

 

 

369

(267)

NM

Noncash Share-Based Compensation

 

 

 

 

 

102

119

16.7%

Distributions to Noncontrolling Interests and Dividends for

Redeemable Subsidiary Preferred Stock

 

 

 

 

 

 

(49)

 

(66)

 

34.7%

Other

 

 

 

 

 

36

56

55.6%

Free Cash Flow 3

 

 

 

 

 

$3,138

$2,824

(10.0%)

NM=comparison not meaningful.

 

 

 

 

 

 

 

 

 

Dividends and Share Repurchases. During the first quarter of 2014, Comcast paid dividends totaling $508 million and repurchased 15.0 million of its common shares for $750 million.  As of March 31, 2014, Comcast had approximately $6.75 billion available under its share repurchase authorization.

 

Cable Communications

 

 

 

 

1st Quarter

 

($ in millions)

 

 

 

 

2013

2014

Growth

Cable Communications Revenue

 

 

 

 

 

 

 

Video

 

 

 

 

$5,113

$5,178

1.3%

High-Speed Internet

 

 

 

 

2,523

2,750

9.0%

Voice

 

 

 

 

900

920

2.1%

Business Services

 

 

 

 

741

917

23.9%

Advertising

 

 

 

 

488

519

6.2%

Other

 

 

 

 

452

473

4.8%

Cable Communications Revenue

 

 

 

 

$10,217

$10,757

5.3%

 

 

 

 

 

 

 

 

Cable Communications Operating Cash Flow

 

 

 

 

$4,219

$4,400

4.3%

Operating Cash Flow Margin

 

 

 

 

41.3%

40.9%

 

 

 

 

 

 

 

 

 

Cable Communications Capital Expenditures

 

 

 

 

$1,094

$1,145

4.6%

Percent of Cable Communications Revenue

 

 

 

 

10.7%

10.6%

 

 

2



 

Revenue for Cable Communications increased 5.3% to $10.8 billion in the first quarter of 2014 compared to $10.2 billion in the first quarter of 2013, driven by increases of 9.0% in high-speed Internet and 23.9% in business services. The increase in Cable revenue reflects rate adjustments, customers receiving higher levels of services and customer growth (see below).

 

Customer relationships increased by 124,000 to 26.8 million in the first quarter of 2014.   At the end of the first quarter, penetration of our triple product customers increased to 36% compared to 33% in the first quarter of 2013. In addition, video, high-speed Internet and voice customers increased.

 

 

Customers

Net Adds

Billable Customers Method4 (in thousands)

1Q13

1Q14

1Q13

1Q14

Video Customers

22,819

22,601

(25)

24

High-Speed Internet Customers

19,799

21,068

433

383

Voice Customers

10,166

10,865

211

142

 

 

 

 

 

Single Product Customers

9,206

8,605

 

(147)

Double Product Customers

8,568

8,656

 

116

Triple Product Customers

8,821

9,539

 

155

Customer Relationships

26,596

26,800

 

124

 

Operating Cash Flow for Cable Communications increased 4.3% to $4.4 billion in the first quarter of 2014 compared to $4.2 billion in the first quarter of 2013, reflecting higher revenue, partially offset by a 6.0% increase in operating expenses primarily related to higher video programming costs.  This quarter’s operating cash flow margin was 40.9%, compared to 41.3% in the prior year period.

 

NBCUniversal

 

 

 

 

 

1st Quarter

 

 

($ in millions)

 

2013

 

2014

 

Growth

 

Excluding
Olympics

NBCUniversal Revenue

 

 

 

 

 

 

 

 

Cable Networks

 

$2,225

 

$2,505

 

12.6%

 

1.0%

Broadcast Television

 

1,517

 

2,621

 

72.8%

 

17.0%

Filmed Entertainment

 

1,216

 

1,351

 

11.1%

 

 

Theme Parks

 

462

 

487

 

5.4%

 

 

Headquarters, Other and Eliminations

 

(80)

 

(88)

 

NM

 

 

NBCUniversal Revenue

 

$5,340

 

$6,876

 

28.8%

 

8.1%

 

 

 

 

 

 

 

 

 

NBCUniversal Operating Cash Flow

 

 

 

 

 

 

 

 

Cable Networks

 

$859

 

$895

 

4.2%

 

 

Broadcast Television

 

(35)

 

122

 

NM

 

 

Filmed Entertainment

 

69

 

288

 

NM

 

 

Theme Parks

 

173

 

170

 

(1.5%)

 

 

Headquarters, Other and Eliminations

 

(113)

 

(164)

 

NM

 

 

NBCUniversal Operating Cash Flow

 

$953

 

$1,311

 

37.6%

 

 

 

Revenue for NBCUniversal increased 28.8% to $6.9 billion in the first quarter of 2014 compared to $5.3 billion in the first quarter of 2013, primarily driven by 2014 Sochi Olympics revenue of $1.1 billion included in the Broadcast Television and Cable Networks segments.  Excluding the Olympics, NBCUniversal revenue increased 8.1% (see Table 5). Operating Cash Flow increased 37.6% to $1.3 billion compared to $953 million in the first quarter of 2013, driven by a profitable Olympics and strong results at Filmed Entertainment and Broadcast Television.

 

3



 

Cable Networks

For the first quarter of 2014, revenue from the Cable Networks segment increased 12.6% to $2.5 billion compared to $2.2 billion in the first quarter of 2013 and included $257 million of revenue generated by the 2014 Sochi Olympics. Excluding the Olympics, revenue increased 1.0% reflecting a 4.4% increase in distribution revenue, partially offset by a 1.4% decrease in advertising revenue (See Table 5). Operating cash flow increased 4.2% to $895 million compared to $859 million in the first quarter of 2013, reflecting higher revenue, partially offset by higher sports programming costs, including the impact of the Olympics, and our continued investment in original programming.

 

Broadcast Television

For the first quarter of 2014, revenue from the Broadcast Television segment increased 72.8% to $2.6 billion compared to $1.5 billion in the first quarter of 2013 and included $846 million of revenue generated by the 2014 Sochi Olympics. Excluding the Olympics, revenue increased 17.0%, driven by a 15.8% increase in advertising revenue due to strong ratings at the NBC broadcast network, as well as an increase in content licensing revenue and higher retransmission consent fees (see Table 5). Operating cash flow increased $157 million to $122 million compared to a loss of $35 million in the first quarter of 2013, reflecting higher revenue, partially offset by higher programming and production costs related to the Olympics.

 

Filmed Entertainment

For the first quarter of 2014, revenue from the Filmed Entertainment segment increased 11.1% to $1.4 billion compared to $1.2 billion the first quarter of 2013, driven by higher theatrical revenue from the strong performances of Ride Along and Lone Survivor and the international performance of The Wolf of Wall Street. Operating cash flow increased $219 million to $288 million compared to $69 million in the first quarter of 2013, reflecting higher revenue and a decrease in the amortization of film costs.

 

Theme Parks

For the first quarter of 2014, revenue from the Theme Parks segment increased 5.4% to $487 million compared to $462 million in the first quarter of 2013, driven by higher per capita spending at the Orlando and Hollywood theme parks and stable guest attendance, despite a shift in holiday timing. First quarter operating cash flow decreased 1.5% to $170 million compared to $173 million in same period last year, primarily reflecting increased operating costs to support new attractions.

 

Headquarters, Other and Eliminations

NBCUniversal Headquarters, Other and Eliminations include overhead and eliminations among the NBCUniversal businesses. For the quarter ended March 31, 2014, NBCUniversal Headquarters, Other and Eliminations operating cash flow loss was $164 million compared to a loss of $113 million in the first quarter of 2013, reflecting higher employee costs.

 

Corporate, Other and Eliminations

 

Corporate, Other and Eliminations primarily include corporate operations, Comcast-Spectacor and eliminations among Comcast’s businesses. For the quarter ended March 31, 2014, Corporate, Other and Eliminations revenue was ($225) million compared to ($247) million in 2013. The operating cash flow loss was $173 million, including $17 million of costs related to the Time Warner Cable transaction, compared to a loss of $138 million in the first quarter of 2013.

 

 

Notes:

 

1     We define Operating Cash Flow as operating income (loss) before depreciation and amortization, excluding impairment charges related to fixed and intangible assets and gains or losses on the sale of assets, if any.

 

2     Earnings per share amounts are presented on a diluted basis.

 

3     We define Free Cash Flow as Net Cash Provided by Operating Activities (as stated in our Consolidated Statement of Cash Flows) reduced by capital expenditures, cash paid for intangible assets and cash distributions to noncontrolling interests; and adjusted for any payments and receipts related to certain nonoperating items, net of estimated tax benefits.  The definition of Free Cash Flow excludes any impact from Economic Stimulus packages.  These amounts have been excluded from Free Cash Flow to provide an appropriate comparison.

 

4



 

4     Beginning in 2014, our Cable Communications segment revised its methodology for counting customers related to how we count and report customers who reside in multiple dwelling units (“MDUs”) that are billed under bulk contracts (the “Billable Customers Method”). For MDUs whose residents have the ability to receive additional cable services, such as additional programming choices or our HD or DVR services, we now count and report customers based on the number of potential billable relationships within each MDU. For MDUs whose residents are not able to receive additional cable services, the MDU is now counted as a single customer. Previously, we had counted and reported these customers on an equivalent billing unit basis by dividing monthly revenue received under an MDU’s bulk contract by the standard monthly residential rate where the MDU was located (the “EBU Method”). Video customer metrics for 2013 are now presented on the Billable Customers Method to provide an appropriate comparison.  For high-speed Internet and voice customers, the differences in the customer metrics using the Billable Customers Method and the EBU Method were not material and 2013 data has not been adjusted.

 

All percentages are calculated on whole numbers. Minor differences may exist due to rounding.

 

###

 

Conference Call and Other Information

Comcast Corporation will host a conference call with the financial community today, April 22, 2014 at 8:30 a.m. Eastern Time (ET). The conference call and related materials will be broadcast live and posted on its 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 10792182.  A replay of the call will be available starting at 12:30 p.m. ET on April 22, 2014, on the Investor Relations website or by telephone. To access the telephone replay, which will be available until Tuesday, April 29, 2014 at midnight ET, please dial (855) 859-2056 and enter the conference ID number 10792182.

 

From time to time, we post information that may be of interest to investors on our website at www.cmcsa.com or www.cmcsk.com and on our corporate blog, www.corporate.comcast.com/comcast-voices. To automatically receive Comcast financial news by email, please visit www.cmcsa.com or www.cmcsk.com and subscribe to email alerts.

 

###

 

Investor Contacts:

Press Contacts:

Jason Armstrong

(215) 286-7972

D’Arcy Rudnay

(215) 286-8582

Jane Kearns

(215) 286-4794

John Demming

(215) 286-8011

 

###

 

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.

 

###

 

About Comcast Corporation

Comcast Corporation (Nasdaq: CMCSA, CMCSK) is a global media and technology company with two primary businesses, Comcast Cable and NBCUniversal.  Comcast Cable is the nation’s largest video, high-speed Internet and phone provider to residential customers under the XFINITY brand and also provides these services to businesses.  NBCUniversal operates 30 news, entertainment and sports cable networks, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures and Universal Parks and Resorts.  Visit www.comcastcorporation.com for more information.

 

5


 

 


 

TABLE 1

Condensed Consolidated Statement of Income (Unaudited)

 

 

 

 

 

Three Months Ended

 

(in millions, except per share data)

 

March 31,

 

 

 

2013

 

2014

 

Revenue

 

$15,310

 

$17,408

 

 

 

 

 

 

 

Programming and production

 

4,663

 

5,908

 

Other operating and administrative

 

4,466

 

4,752

 

Advertising, marketing and promotion

 

1,147

 

1,210

 

 

 

10,276

 

11,870

 

 

 

 

 

 

 

Operating cash flow

 

5,034

 

5,538

 

 

 

 

 

 

 

Depreciation expense

 

1,566

 

1,569

 

Amortization expense

 

401

 

401

 

 

 

1,967

 

1,970

 

Operating income

 

3,067

 

3,568

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

Interest expense

 

(653)

 

(642)

 

Investment income (loss), net

 

72

 

113

 

Equity in net income (losses) of investees, net

 

11

 

32

 

Other income (expense), net

 

73

 

(15)

 

 

 

(497)

 

(512)

 

 

 

 

 

 

 

Income before income taxes

 

2,570

 

3,056

 

 

 

 

 

 

 

Income tax expense

 

(925)

 

(1,118)

 

 

 

 

 

 

 

Net income

 

1,645

 

1,938

 

 

 

 

 

 

 

Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock

 

(208)

 

(67)

 

 

 

 

 

 

 

Net income attributable to Comcast Corporation

 

$1,437

 

$1,871

 

 

 

 

 

 

 

Diluted earnings per common share attributable to Comcast Corporation shareholders

 

$0.54

 

$0.71

 

 

 

 

 

 

 

Dividends declared per common share attributable to Comcast Corporation shareholders

 

$0.195

 

$0.225

 

 

 

 

 

 

 

Diluted weighted-average number of common shares

 

2,675

 

2,645

 

 

6



 

TABLE 2

Condensed Consolidated Balance Sheet (Unaudited)

 

 

 

(in millions)

 

December 31,

 

March 31,

 

 

 

2013

 

2014

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash and cash equivalents

 

$1,718

 

$3,054

 

Investments

 

3,573

 

2,389

 

Receivables, net

 

6,376

 

6,151

 

Programming rights

 

928

 

863

 

Other current assets

 

1,480

 

1,586

 

Total current assets

 

14,075

 

14,043

 

 

 

 

 

 

 

Film and television costs

 

4,994

 

5,058

 

 

 

 

 

 

 

Investments

 

3,770

 

3,090

 

 

 

 

 

 

 

Property and equipment, net

 

29,840

 

29,588

 

 

 

 

 

 

 

Franchise rights

 

59,364

 

59,364

 

 

 

 

 

 

 

Goodwill

 

27,098

 

27,103

 

 

 

 

 

 

 

Other intangible assets, net

 

17,329

 

17,145

 

 

 

 

 

 

 

Other noncurrent assets, net

 

2,343

 

2,382

 

 

 

 

 

 

 

 

 

$158,813

 

$157,773

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Accounts payable and accrued expenses related to trade creditors

 

$5,528

 

$5,534

 

Accrued participations and residuals

 

1,239

 

1,256

 

Deferred revenue

 

898

 

776

 

Accrued expenses and other current liabilities

 

7,967

 

7,418

 

Current portion of long-term debt

 

3,280

 

2,819

 

Total current liabilities

 

18,912

 

17,803

 

 

 

 

 

 

 

Long-term debt, less current portion

 

44,567

 

44,581

 

 

 

 

 

 

 

Deferred income taxes

 

31,935

 

31,595

 

 

 

 

 

 

 

Other noncurrent liabilities

 

11,384

 

11,109

 

 

 

 

 

 

 

Redeemable noncontrolling interests and redeemable subsidiary preferred stock

 

957

 

1,053

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Comcast Corporation shareholders’ equity

 

50,694

 

51,268

 

Noncontrolling interests

 

364

 

364

 

Total equity

 

51,058

 

51,632

 

 

 

 

 

 

 

 

 

$158,813

 

$157,773

 

 

7



 

TABLE 3

Consolidated Statement of Cash Flows (Unaudited)

 

 

 

(in millions)

 

Three Months Ended

 

 

 

March 31,

 

 

 

2013

 

 

2014

 

 

 

 

 

 

 

 

OPERATING ACTIVITIES

 

 

 

 

 

 

Net income

 

$1,645

 

 

$1,938

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

1,967

 

 

1,970

 

Amortization of film and television costs

 

1,972

 

 

2,876

 

Share-based compensation

 

102

 

 

119

 

Noncash interest expense (income), net

 

42

 

 

42

 

Equity in net (income) losses of investees, net

 

(11

)

 

(32

)

Cash received from investees

 

23

 

 

18

 

Net (gain) loss on investment activity and other

 

(132

)

 

(59

)

Deferred income taxes

 

(373

)

 

(226

)

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

 

 

 

 

 

 

Change in current and noncurrent receivables, net

 

465

 

 

195

 

Change in film and television costs

 

(1,577

)

 

(2,722

)

Change in accounts payable and accrued expenses related to trade creditors

 

(281

)

 

82

 

Change in other operating assets and liabilities

 

527

 

 

285

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

4,369

 

 

4,486

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

Capital expenditures

 

(1,361

)

 

(1,448

)

Cash paid for intangible assets

 

(182

)

 

(217

)

Acquisitions and construction of real estate properties

 

(1,311

)

 

-

 

Proceeds from sales of businesses and investments

 

74

 

 

300

 

Purchases of investments

 

(88

)

 

(37

)

Other

 

105

 

 

(103

)

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

(2,763

)

 

(1,505

)

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

Proceeds from (repayments of) short-term borrowings, net

 

491

 

 

(364

)

Proceeds from borrowings

 

2,933

 

 

2,187

 

Repurchases and repayments of debt

 

(1,811

)

 

(2,260

)

Repurchases and retirements of common stock

 

(500

)

 

(750

)

Dividends paid

 

(429

)

 

(508

)

Issuances of common stock

 

13

 

 

20

 

Purchase of NBCUniversal noncontrolling common equity interest

 

(10,747

)

 

-

 

Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock

 

(49

)

 

(66

)

Settlement of Station Venture liability

 

(602

)

 

-

 

Other

 

(17

)

 

96

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

(10,718

)

 

(1,645

)

 

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

(9,112

)

 

1,336

 

 

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

10,951

 

 

1,718

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$1,839

 

 

$3,054

 

 

8



 

TABLE 4

Supplemental Information

 

Alternate Presentation of Net Cash Provided by Operating Activities and Free Cash Flow (Unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

(in millions)

 

2013

 

 

 

2014

 

Operating income

 

$3,067

 

 

 

$3,568

 

Depreciation and amortization

 

1,967

 

 

 

1,970

 

Operating income before depreciation and amortization

 

5,034

 

 

 

5,538

 

Noncash share-based compensation expense

 

102

 

 

 

119

 

Changes in operating assets and liabilities

 

369

 

 

 

(267

)

Cash basis operating income

 

5,505

 

 

 

5,390

 

Payments of interest

 

(617

)

 

 

(623

)

Payments of income taxes

 

(461

)

 

 

(186

)

Excess tax benefits under share-based compensation

 

(94

)

 

 

(151

)

Other

 

36

 

 

 

56

 

Net Cash Provided by Operating Activities

 

$4,369

 

 

 

$4,486

 

Capital expenditures

 

(1,361

)

 

 

(1,448

)

Cash paid for capitalized software and other intangible assets

 

(182

)

 

 

(217

)

Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock

 

(49

)

 

 

(66

)

Nonoperating items(1)

 

361

 

 

 

69

 

Total Free Cash Flow

 

$3,138

 

 

 

$2,824

 

 

 

Reconciliation of EPS Excluding Gains on Sales and Acquisition-Related Items (Unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

 

 

 

 

2013

 

2014

 

(in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

$

 

EPS (2)

 

$

 

EPS (2)

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Comcast Corporation

 

$1,437

 

$0.54

 

$1,871

 

$0.71

 

Growth %

 

 

 

 

 

30.2%

 

31.5%

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of investment(3)

 

-

 

-

 

(50)

 

(0.02)

 

Favorable resolution of a contingency of an acquired company(4)

 

-

 

-

 

(27)

 

(0.01)

 

Costs related to Time Warner Cable transaction(5)

 

-

 

-

 

11

 

-

 

Gain on sale of wireless spectrum licenses(6)

 

(67)

 

(0.03)

 

-

 

-

 

Net income attributable to Comcast Corporation

 

 

 

 

 

 

 

 

 

(excluding gains on sales and acquisition-related items)

 

$1,370

 

$0.51

 

$1,805

 

$0.68

 

Growth %

 

 

 

 

 

31.8%

 

33.3%

 

 

 

 

(1)          Nonoperating items include adjustments for cash taxes paid related to certain investing and financing transactions, to reflect cash taxes paid in the year of the related taxable income and to exclude the impacts of Economic Stimulus packages.

(2)          Based on diluted weighted-average number of common shares for the respective periods as presented in Table 1.

(3)          1st quarter 2014 net income attributable to Comcast Corporation includes $80 million of investment income, $50 million net of tax, resulting from the sale of an investment.

(4)          1st quarter 2014 net income attributable to Comcast Corporation includes $27 million of other income, resulting from the favorable resolution of a contingency related to the AT&T Broadband transaction.

(5)          1st quarter 2014 net income attributable to Comcast Corporation includes $17 million of operating costs and expenses, $11 million net of tax, related to the Time Warner Cable transaction.

(6)          1st quarter 2013 net income attributable to Comcast Corporation includes $108 million of other income, $67 million net of tax, resulting from a gain on the sale of wireless spectrum licenses.

 

 

Note: Minor differences may exist due to rounding.

 

9



 

TABLE 5

Reconciliation of Consolidated Revenue Excluding 2014 Olympics and Operating Cash Flow Excluding Costs Related to Time Warner Cable Transaction (Unaudited)

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

 

 

 

 

 

(in millions)

 

2013

 

2014

 

Growth %

 

 

 

 

 

 

 

Revenue

 

$15,310

 

$17,408

 

13.7%

 

 

 

 

 

 

 

2014 Olympics

 

-

 

(1,103)

 

 

 

 

 

 

 

 

 

Revenue excluding 2014 Olympics

 

$15,310

 

$16,305

 

6.5%

 

 

 

 

 

 

 

 

 

2013

 

2014

 

Growth %

 

 

 

 

 

 

 

Operating Cash Flow

 

$5,034

 

$5,538

 

10.0%

 

 

 

 

 

 

 

Costs related to Time Warner Cable transaction

 

-

 

17

 

 

 

 

 

 

 

 

 

Operating Cash Flow excluding costs related to Time Warner Cable transaction

 

$5,034

 

$5,555

 

10.4%

 

 

 

Reconciliation of Consolidated NBCUniversal Revenue Excluding 2014 Olympics (Unaudited)

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

 

 

 

 

 

(in millions)

 

2013

 

2014

 

Growth %

 

 

 

 

 

 

 

Revenue

 

$5,340

 

$6,876

 

28.8%

 

 

 

 

 

 

 

2014 Olympics

 

-

 

(1,103)

 

 

 

 

 

 

 

 

 

Revenue excluding 2014 Olympics

 

$5,340

 

$5,773

 

8.1%

 

 

 

Reconciliation of Cable Networks Revenue Excluding 2014 Olympics (Unaudited)

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

 

 

 

 

 

(in millions)

 

2013

 

2014

 

Growth %

 

 

 

 

 

 

 

Revenue

 

$2,225

 

$2,505

 

12.6%

 

 

 

 

 

 

 

2014 Olympics

 

-

 

(257)

 

 

 

 

 

 

 

 

 

Revenue excluding 2014 Olympics

 

$2,225

 

$2,248

 

1.0%

 

 

 

Reconciliation of Broadcast Television Revenue Excluding 2014 Olympics (Unaudited)

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

 

 

 

 

 

(in millions)

 

2013

 

2014

 

Growth %

 

 

 

 

 

 

 

Revenue

 

$1,517

 

$2,621

 

72.8%

 

 

 

 

 

 

 

2014 Olympics

 

-

 

(846)

 

 

 

 

 

 

 

 

 

Revenue excluding 2014 Olympics

 

$1,517

 

$1,775

 

17.0%

 

 

Note: Minor differences may exist due to rounding.

 

10