EX-99.1 2 d427401dex991.htm COMCAST CORPORATION PRESS RELEASE DATED OCTOBER 26, 2012 Comcast Corporation press release dated October 26, 2012

Exhibit 99.1

 

PRESS RELEASE  

LOGO

 

 

Investor Contacts:

      Press Contacts:  

Marlene S. Dooner

Jane B. Kearns

 

(215) 286-7392

(215) 286-4794

   

D’Arcy Rudnay

John Demming

 

(215) 286-8582

(215) 286-8011

COMCAST REPORTS 3rd QUARTER 2012 RESULTS

Consolidated Revenue Increased 15.4%, Operating Cash Flow Increased 9.5% and Operating Income Increased 15.4%

Earnings per Share Increased 136.4% to $0.78; Excluding Gains on Asset Sales, EPS Increased 39.4% to $0.46

Free Cash Flow Increased 8.8% to $1.5 Billion

Dividends and Share Repurchases Totaled $1.2 Billion

Philadelphia, PA – October 26, 2012…Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported results for the quarter ended September 30, 2012.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “The third quarter continues our momentum. Cable’s results show real strength in every part of the business, producing sustainable and profitable growth while we expand our product offerings, deliver more innovation and continue to transform the customer experience.

NBCUniversal’s results highlight the strong performance of the Olympics and steady progress in its businesses as we invest to build value. The London Olympics exceeded all our expectations and our entire company contributed to their success, proving how effective we can be when we bring together our unique assets and capabilities.”

Consolidated Financial Results

 

 

 
($ in millions)   

3rd Quarter

             

Year to Date

 
Consolidated Results   

2011

    

2012

    

Growth

             

2011*

    

2012

    

Growth

 
 

Revenue

   $ 14,339       $ 16,544         15.4         $ 40,800       $ 46,633         14.3
 

Operating Cash Flow (OCF)1

   $ 4,574       $ 5,008         9.5         $ 13,441       $ 14,700         9.4
 

Operating Income

   $ 2,641       $ 3,048         15.4         $ 7,803       $ 8,885         13.9
 

Earnings per Share2

   $ 0.33       $ 0.78         136.4         $ 1.03       $ 1.72         67.0
 

Free Cash Flow3

   $ 1,392       $ 1,514         8.8         $ 5,133       $ 6,107         19.0

* Year to date 2011 includes 8 months of NBCUniversal and 3 months of Universal Orlando results.

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 financial results include NBCUniversal from January 28, 2011 and 100% of Universal Orlando from July 1, 2011.

Revenue increased 15.4% in the third quarter of 2012 to $16.5 billion, while Operating Cash Flow increased 9.5% to $5.0 billion and Operating Income increased 15.4% to $3.0 billion.

For the nine months ended September 30, 2012, revenue increased 14.3% to $46.6 billion, while operating cash flow increased 9.4% to $14.7 billion and operating income increased 13.9% to $8.9 billion.

Earnings per Share (EPS) for the third quarter of 2012 was $0.78, a 136.4% increase from the $0.33 reported in the third quarter of 2011. Excluding a $0.20 per share gain related to our share of SpectrumCo’s sale of wireless spectrum licenses and a $0.12 per share gain on the sale of NBCUniversal’s interest in A&E Television Networks, EPS increased 39.4% to $0.46 in the third quarter of 2012 (see Table 4).

EPS for the nine months ended September 30, 2012 was $1.72, a 67.0% increase from the $1.03 reported in the prior year. Excluding non-recurring gains on sales in 2012, and NBCUniversal transaction and related costs and other non-recurring items in the first nine months of 2011, EPS increased 27.3% (see Table 4).

Free Cash Flow (excluding any impact from the Economic Stimulus packages) for the third quarter of 2012 increased 8.8% to $1.5 billion compared to the third quarter of 2011, reflecting growth in consolidated operating cash flow, partially offset by higher taxes and capital expenditures. Free cash flow for the nine months ended September 30, 2012 increased 19.0% to $6.1 billion compared to $5.1 billion in 2011.

 

 
($ in millions)   

3rd Quarter

             

Year to Date

 
Free Cash Flow   

2011

   

2012

   

Growth

             

2011*

   

2012

   

Growth

 
 

Operating Cash Flow

   $ 4,574      $ 5,008        9.5%            $ 13,441      $ 14,700        9.4%   
 

Capital Expenditures

     (1,408     (1,582     12.4%              (3,785     (4,043     6.8%   
 

Cash Paid for Capitalized Software and Other Intangible Assets

     (209     (191     (8.6%           (505     (605     19.8%   
 

Cash Interest Expense

     (612     (567     (7.4%           (1,809     (1,725     (4.6%
 

Cash Taxes

     (596     (833     39.8%              (1,166     (1,855     59.1%   
 

Changes in Operating Assets and Liabilities

     (300     (295     (1.7%           (721     (254     (64.8%
 

Other

     88        63        (28.4%           209        145        (30.6%
  

 

 

         

 

 

 
 

Free Cash Flow (Incl. Economic Stimulus Packages)

   $ 1,537      $ 1,603        4.3%            $ 5,664      $ 6,363        12.3%   
 

Economic Stimulus Packages

     (145     (89     (38.6%           (531     (256     (51.8%
  

 

 

         

 

 

 
 

Free Cash Flow

   $ 1,392      $ 1,514        8.8%            $ 5,133      $ 6,107        19.0%   

* Year to date 2011 includes 8 months of NBCUniversal and 3 months of Universal Orlando results.

Note: The definition of Free Cash Flow excludes any impact from the 2008-2012 Economic Stimulus packages. These amounts have been excluded from Free Cash Flow to provide an appropriate comparison. See Table 4.

Dividends and Share Repurchases. During the third quarter of 2012, Comcast paid dividends totaling $435 million and repurchased 22.9 million of its common shares for $750 million. Year-to-date, Comcast has repurchased 74.6 million of its common shares for $2.25 billion. As of September 30, 2012, Comcast had approximately $4.25 billion available under its share repurchase authorization.

Pro Forma Financial Results

 

Pro forma results are presented as if the NBCUniversal transaction, which closed on January 28, 2011, and the Universal Orlando transaction, which closed on July 1, 2011, were effective on January 1, 2010. These results are based on historical results of operations, adjusted for the effects of acquisition accounting and eliminating the costs and expenses directly related to the transaction, and are not necessarily indicative of what the results would have been had Comcast operated NBCUniversal and Universal Orlando since January 1, 2010 (see Table 5 for reconciliations of pro forma financial information).

 

2


 

($ in millions)

 

   3rd Quarter               Year to Date  
Consolidated Pro Forma Results    2011      2012      Growth               2011      2012      Growth  
 

Revenue

   $ 14,339       $ 16,544         15.4           $ 42,619       $ 46,633         9.4
 

Operating Cash Flow (OCF)

   $ 4,574       $ 5,008         9.5           $ 13,810       $ 14,700         6.4

Consolidated Revenue increased 15.4% in the third quarter of 2012 to $16.5 billion compared to $14.3 billion in the third quarter of 2011. Excluding $1.2 billion of revenue generated by the 2012 London Olympics, consolidated revenue increased 7.1%. Consolidated Operating Cash Flow increased 9.5% to $5.0 billion compared to $4.6 billion in the third quarter of 2011. During the third quarter, the Olympics generated $120 million of operating cash flow which reflects the settlement of a $237 million unfavorable contract recorded in acquisition accounting in 2011. Excluding any impact from the Olympics, consolidated operating cash flow increased 6.9% (see Table 6).

For the nine months ended September 30, 2012, consolidated pro forma revenue increased 9.4% to $46.6 billion compared to $42.6 billion in 2011. Excluding the Super Bowl in the first quarter and the Olympics in the third quarter of 2012, consolidated pro forma revenue increased 6.0%. Consolidated pro forma operating cash flow increased 6.4% to $14.7 billion compared to $13.8 billion in the first nine months of 2011. Excluding the Olympics, consolidated operating cash flow increased 5.6% (see Table 6).

Cable Communications

 

 

 
($ in millions)   

3rd Quarter

               

Year to Date

 
    

2011

   

2012

   

Growth

               

2011

   

2012

   

Growth

 

Cable Communications Revenue

                     

Video

   $ 4,892      $ 5,021        2.7%               $ 14,724      $ 15,069        2.3%   

High-Speed Internet

     2,209        2,403        8.8%                 6,501        7,106        9.3%   

Voice

     883        895        1.5%                 2,621        2,662        1.6%   

Business Services

     464        621        33.6%                 1,293        1,744        34.9%   

Advertising

     492        607        23.5%                 1,459        1,635        12.1%   

Other

     391        429        9.4%                 1,158        1,256        8.3%   
  

 

 

            

 

 

 

Cable Communications Revenue

   $ 9,331      $ 9,976        6.9%               $ 27,756      $ 29,472        6.2%   
 

Cable Communications OCF

   $ 3,714      $ 3,998        7.7%               $ 11,349      $ 12,054        6.2%   

OCF Margin

     39.8     40.1                40.9     40.9  
 

Cable Communications Capital Expenditures

   $ 1,254      $ 1,364        8.8%               $ 3,488      $ 3,544        1.6%   

Percent of Cable Communications Revenue

     13.4     13.7                12.6     12.0  

Revenue for Cable Communications increased 6.9% to $10.0 billion in the third quarter of 2012 compared to $9.3 billion in the third quarter of 2011, reflecting increases of 8.8% in High-Speed Internet, 33.6% in Business Services, 2.7% in Video and 23.5% in Advertising. Monthly average total revenue per Video customer increased 8.7% to $150.73, reflecting a growing number of residential customers taking multiple products, rate adjustments and a higher contribution from Business Services.

For the nine months ended September 30, 2012, Cable revenue increased 6.2% to $29.5 billion compared to $27.8 billion in 2011.

Operating Cash Flow for Cable Communications increased 7.7% to $4.0 billion in the third quarter of 2012 compared to $3.7 billion in the third quarter of 2011, reflecting higher revenue, partially offset by increases in video programming and higher sales and marketing expenses to support growth and enhance our competitive position in both residential and business services. This quarter’s operating cash flow margin was 40.1% compared to 39.8% in the third quarter of 2011.

For the nine months ended September 30, 2012, Cable operating cash flow increased 6.2% to $12.1 billion compared to $11.3 billion in 2011. Year-to-date operating cash flow margin was 40.9%, consistent with the prior year period.

 

3


Capital Expenditures for Cable Communications increased $110 million or 8.8% to $1.4 billion in the third quarter of 2012 compared to the third quarter of 2011, primarily reflecting continuing investments in network infrastructure, the expansion of business services and other new product roll-outs. Cable capital expenditures represented 13.7% of Cable revenue in the third quarter of 2012 compared to 13.4% in last year’s third quarter.

For the nine months ended September 30, 2012, Cable capital expenditures increased $56 million or 1.6% to $3.5 billion, representing 12.0% of Cable revenue compared to 12.6% in 2011.

Combined Video, High-Speed Internet and Voice Customers increased by 294,000 in the third quarter of 2012, a 28.1% increase compared to third quarter 2011 net additions. As of September 30, 2012, Video, High-Speed Internet and Voice customers totaled 50.8 million, a net increase of 1.5 million or 3.0% over last year’s third quarter.

 

(in thousands)    Customers        Net Adds  
     3Q11      3Q12        3Q11     3Q12  

Video Customers

     22,348         22,002           (165     (117

High-Speed Internet Customers

     17,808         19,025           261        287   

Voice Customers

     9,196         9,787           133        123   
  

 

 

      

 

 

 

Combined Video, HSI and Voice Customers

     49,352         50,814           229        294   

NBCUniversal

 

Pro forma NBCUniversal results are presented as if the NBCUniversal transaction, which closed on January 28, 2011, and the Universal Orlando transaction, which closed on July 1, 2011, were effective on January 1, 2010.

Revenue for NBCUniversal increased 31.2% to $6.8 billion in the third quarter of 2012 compared to $5.2 billion in the third quarter of 2011, primarily driven by 2012 London Olympics revenue of $1.2 billion in the Broadcast Television segment. Excluding the Olympics, NBCUniversal revenue increased 8.3%. Operating Cash Flow increased 19.9% to $1.1 billion compared to $951 million in the third quarter of 2011 and included $120 million of operating cash flow generated by the Olympics. Excluding the Olympics, operating cash flow increased 7.3% (see Table 6).

For the nine months ended September 30, 2012, NBCUniversal revenue increased 15.7% to $17.8 billion. Excluding $259 million of revenue related to the Super Bowl in the first quarter and the impact of the Olympics in the third quarter of 2012, revenue increased 6.3%. Operating cash flow increased 8.0% to $2.9 billion compared to the first nine months of 2011. Excluding the Olympics, operating cash flow increased 3.6% (see Table 6).

 

 
($ in millions) (pro forma)   

 3rd Quarter 

             

Year to Date

 
     2011     2012    

Growth

              2011     2012     Growth  

NBCUniversal Revenue

                    

Cable Networks

   $ 2,097      $ 2,165        3.2%              $ 6,290      $ 6,555        4.2%   

Broadcast Television

     1,511        2,777        83.8%                4,558        6,168        35.3%   

Filmed Entertainment

     1,096        1,355        23.6%                3,325        3,778        13.6%   

Theme Parks

     580        614        5.8%                1,491        1,565        4.9%   

Headquarters, Other and Eliminations

     (84     (89     (5.5%             (278     (268     3.8%   
  

 

 

           

 

 

 

NBCUniversal Revenue

   $ 5,200      $ 6,822        31.2%              $ 15,386      $ 17,798        15.7%   
   

NBCUniversal OCF

                    

Cable Networks

   $ 751      $ 809        7.6%              $ 2,414      $ 2,402        (0.5%

Broadcast Television

     (7     88        NM                203        274        35.2%   

Filmed Entertainment

     54        72        31.1%                (65     (5     92.2%   

Theme Parks

     285        316        11.2%                644        708        10.0%   

Headquarters, Other and Eliminations

     (132     (145     (8.6%             (479     (444     7.5%   
  

 

 

           

 

 

 

NBCUniversal OCF

   $ 951      $ 1,140        19.9%              $ 2,717      $ 2,935        8.0%   

 

4


Cable Networks

For the third quarter of 2012, revenue from the Cable Networks segment increased 3.2% to $2.2 billion compared to $2.1 billion in the third quarter of 2011, reflecting a 5.7% increase in distribution revenue and flat advertising revenue. Operating cash flow increased 7.6% to $809 million compared to $751 million in the third quarter of 2011, primarily reflecting higher revenue, and flat programming and marketing costs due to timing.

For the nine months ended September 30, 2012, revenue from the Cable Networks segment increased 4.2% to $6.6 billion compared to $6.3 billion in 2011. Operating cash flow decreased 0.5% to $2.4 billion compared to the first nine months of 2011.

Broadcast Television

For the third quarter of 2012, revenue from the Broadcast Television segment increased 83.8% to $2.8 billion compared to $1.5 billion in the third quarter of 2011 and included $1.2 billion of revenue generated by the 2012 London Olympics. Excluding the Olympics, revenue increased 5.2%. Operating cash flow was $88 million, which included $120 million of operating cash flow generated by the Olympics, compared to a loss of $7 million in the third quarter of 2011. Excluding the Olympics, operating cash flow declined by $25 million reflecting higher programming costs related to an early start of our fall TV season and news coverage of the Presidential election (see Table 6).

For the nine months ended September 30, 2012, revenue from the Broadcast Television segment increased 35.3% to $6.2 billion compared to $4.6 billion in 2011. Excluding the Super Bowl in the first quarter and the Olympics in the third quarter of 2012, revenue increased 3.6%. Operating cash flow increased 35.2% to $274 million compared to $203 million in the first nine months of 2011. Excluding the Olympics, operating cash flow declined by $49 million to $154 million compared to the first nine months of 2011 (see Table 6).

Filmed Entertainment

For the third quarter of 2012, revenue from the Filmed Entertainment segment increased 23.6% to $1.4 billion compared to $1.1 billion in the third quarter of 2011, driven by higher theatrical revenue from the strong box office performance of Ted and The Bourne Legacy. Operating cash flow increased 31.1% to $72 million compared to $54 million in the third quarter of 2011, reflecting higher theatrical revenue, partially offset by an increase in the amortization of film costs.

For the nine months ended September 30, 2012, revenue from the Filmed Entertainment segment increased 13.6% to $3.8 billion compared to $3.3 billion in 2011. Operating cash flow was a loss of $5 million compared to a loss of $65 million in the first nine months of 2011.

Theme Parks

Theme Parks results are presented as if the Universal Orlando transaction, which closed on July 1, 2011, was effective on January 1, 2010. As a result, Theme Parks segment revenue and operating cash flow includes the results of Universal Orlando, Universal Hollywood and international licensing fees.

For the third quarter of 2012, revenue from the Theme Parks segment increased 5.8% to $614 million compared to $580 million in the third quarter of 2011, driven by solid performance at the Orlando and Hollywood parks. Third quarter operating cash flow increased 11.2% to $316 million compared to $285 million in the same period last year.

For the nine months ended September 30, 2012, revenue from the Theme Parks segment increased 4.9% to $1.6 billion compared to $1.5 billion in 2011. Operating cash flow increased 10.0% to $708 million compared to $644 million in the first nine months of 2011.

Headquarters, Other and Eliminations

NBCUniversal Headquarters, Other and Eliminations include overhead and eliminations between the NBCUniversal businesses. For the quarter ended September 30, 2012, NBCUniversal Headquarters, Other and Eliminations operating cash flow loss was $145 million compared to a loss of $132 million in the third quarter of 2011.

For the nine months ended September 30, 2012, NBCUniversal Headquarters, Other and Eliminations operating cash flow loss was $444 million compared to a loss of $479 million in 2011 which includes non-recurring transaction-related costs that totaled $112 million.

 

5


Corporate, Other and Eliminations

 

Corporate, Other and Eliminations include corporate operations, Comcast-Spectacor and eliminations between Comcast’s businesses. For the quarter ended September 30, 2012, Corporate, Other and Eliminations revenue was ($254) million compared to ($192) million in 2011. The operating cash flow loss was $130 million compared to a loss of $91 million in the third quarter of 2011 reflecting an increase in eliminations associated with the 2012 London Olympics.

For the nine months ended September 30, 2012, Corporate and Other pro forma revenue and eliminations were ($637) million compared to ($523) million in 2011. The pro forma operating cash flow loss was $289 million compared to a loss of $256 million in the first nine months of 2011.

 

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. We do not present Free Cash Flow on a pro forma basis.

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

###

Conference Call Information

Comcast Corporation will host a conference call with the financial community today, October 26, 2012 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 36800409. A replay of the call will be available starting at 12:30 p.m. ET on October 26, 2012, on the Investor Relations website or by telephone. To access the telephone replay, which will be available until Friday, November 2, 2012 at midnight ET, please dial (855) 859-2056 and enter the conference ID number 36800409. To automatically receive Comcast financial news by email, please visit www.cmcsa.com or www.cmcsk.com and subscribe to email alerts.

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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) (www.comcast.com) is one of the world’s leading media, entertainment and communications companies. Comcast is principally involved in the operation of cable systems through Comcast Cable Communications and in the development, production and distribution of entertainment, news, sports and other content for global audiences through NBCUniversal. Comcast Cable Communications is one of the nation’s largest video, high-speed Internet and phone providers to residential and business customers. Comcast is the majority owner and manager of NBCUniversal, which owns and operates entertainment and news cable networks, the NBC and Telemundo broadcast networks, local television station groups, television production operations, a major motion picture company and theme parks.

 

6


TABLE 1

Condensed Consolidated Statement of Income (Unaudited)

   LOGO  

 

 

(in millions, except per share data)    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2011     2012     2011     2012  

Revenue

   $ 14,339      $ 16,544      $ 40,800      $ 46,633   

Operating costs and expenses

     9,765        11,536        27,359        31,933   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating cash flow

     4,574        5,008        13,441        14,700   

Depreciation expense

     1,540        1,549        4,504        4,594   

Amortization expense

     393        411        1,134        1,221   
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,933        1,960        5,638        5,815   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     2,641        3,048        7,803        8,885   

Other income (expense)

        

Interest expense

     (637     (633     (1,863     (1,898

Investment income (loss), net

     (147     70        3        170   

Equity in net income (losses) of investees, net

     (40     911        (40     943   

Other income (expense), net

     (12     987        (82     924   
  

 

 

   

 

 

   

 

 

   

 

 

 
     (836     1,335        (1,982     139   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     1,805        4,383        5,821        9,024   

Income tax expense

     (639     (1,405     (2,249     (2,966
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     1,166        2,978        3,572        6,058   

Net (income) loss attributable to noncontrolling interests

     (258     (865     (699     (1,373
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Comcast Corporation

   $ 908      $ 2,113      $ 2,873      $ 4,685   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per common share attributable to Comcast Corporation shareholders

   $ 0.33      $ 0.78      $ 1.03      $ 1.72   
  

 

 

   

 

 

   

 

 

   

 

 

 

Dividends declared per common share attributable to Comcast Corporation shareholders

   $ 0.1125      $ 0.1625      $ 0.3375      $ 0.4875   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted weighted-average number of common shares

     2,761        2,703        2,789        2,724   
  

 

 

   

 

 

   

 

 

   

 

 

 

Note:  Consolidated financial results include NBCUniversal from January 28, 2011 and 100% of Universal Orlando from July 1, 2011.

 

7


TABLE 2

Condensed Consolidated Balance Sheet (Unaudited)

   LOGO  

 

 

(in millions)    December 31,
2011
     September 30,
2012
 

ASSETS

     

Current Assets

     

Cash and cash equivalents

   $ 1,620       $ 8,899   

Investments

     54         1,401   

Receivables, net

     4,351         5,123   

Programming rights

     987         1,037   

Other current assets

     1,561         1,606   
  

 

 

    

 

 

 

Total current assets

     8,573         18,066   
  

 

 

    

 

 

 

Film and television costs

     5,227         4,946   

Investments

     9,854         5,951   

Property and equipment, net

     27,559         26,984   

Franchise rights

     59,376         59,364   

Goodwill

     26,874         27,088   

Other intangible assets, net

     18,165         17,871   

Other noncurrent assets, net

     2,190         2,184   
  

 

 

    

 

 

 
   $ 157,818       $ 162,454   
  

 

 

    

 

 

 

LIABILITIES AND EQUITY

     

Current Liabilities

     

Accounts payable and accrued expenses related to trade creditors

   $ 5,705       $ 6,250   

Accrued participations and residuals

     1,255         1,282   

Deferred revenue

     790         887   

Accrued expenses and other current liabilities

     4,124         6,117   

Current portion of long-term debt

     1,367         2,799   
  

 

 

    

 

 

 

Total current liabilities

     13,241         17,335   
  

 

 

    

 

 

 

Long-term debt, less current portion

     37,942         35,791   

Deferred income taxes

     29,932         30,231   

Other noncurrent liabilities

     13,034         12,860   

Redeemable noncontrolling interests

     16,014         16,896   

Equity

     

Comcast Corporation shareholders’ equity

     47,274         48,892   

Noncontrolling interests

     381         449   
  

 

 

    

 

 

 

Total equity

     47,655         49,341   
  

 

 

    

 

 

 
   $ 157,818       $ 162,454   
  

 

 

    

 

 

 

 

8


TABLE 3

Consolidated Statement of Cash Flows (Unaudited)

   LOGO  

 

 

(in millions)    Nine Months Ended  
     September 30,  
         2011             2012      

OPERATING ACTIVITIES

    

Net income

   $ 3,572      $ 6,058   

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

    

Depreciation and amortization

     5,638        5,815   

Amortization of film and television costs

     4,769        7,295   

Share-based compensation

     260        278   

Noncash interest expense (income), net

     111        158   

Equity in net (income) losses of investees, net

     40        (943

Cash received from investees

     228        178   

Net (gain) loss on investment activity and other

     97        (1,071

Deferred income taxes

     770        321   

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

    

Change in receivables, net

     290        (763

Change in film and television costs

     (5,342     (7,290

Change in accounts payable and accrued expenses related to trade creditors

     (242     424   

Change in other operating assets and liabilities

     15        779   
  

 

 

   

 

 

 

Net cash provided by operating activities

     10,206        11,239   
  

 

 

   

 

 

 

INVESTING ACTIVITIES

    

Capital expenditures

     (3,785     (4,043

Cash paid for intangible assets

     (505     (605

Acquisitions, net of cash acquired

     (6,407     (95

Proceeds from sales of businesses and investments

     154        3,095   

Return of capital from investees

     6        2,281   

Purchases of investments

     (85     (191

Other

     (39     68   
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (10,661     510   
  

 

 

   

 

 

 

FINANCING ACTIVITIES

    

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

     1,642        (555

Proceeds from borrowings

     -        2,248   

Repurchases and repayments of debt

     (2,813     (2,505

Repurchases and retirements of common stock

     (1,650     (2,250

Dividends paid

     (881     (1,176

Issuances of common stock

     252        215   

Distributions to NBCUniversal noncontrolling member

     (86     (340

Distributions to other noncontrolling interests

     (151     (157

Other

     (36     50   
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (3,723     (4,470
  

 

 

   

 

 

 

Increase (decrease) in cash and cash equivalents

     (4,178     7,279   

Cash and cash equivalents, beginning of period

     5,984        1,620   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 1,806      $ 8,899   
  

 

 

   

 

 

 

Note:  Consolidated financial results include NBCUniversal from January 28, 2011 and 100% of Universal Orlando from July 1, 2011.

 

9


TABLE 4

Supplemental Information

 

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

   LOGO  

 

 

 
     Three Months Ended
September 30,
          Nine Months Ended
September 30,
 
(in millions)          2011                  2012                       2011                  2012        
 

Operating income

   $ 2,641       $ 3,048           $ 7,803       $ 8,885   

Depreciation and amortization

     1,933         1,960             5,638         5,815   
  

 

 

    

 

 

        

 

 

    

 

 

 

Operating income before depreciation and amortization

     4,574         5,008             13,441         14,700   

Noncash share-based compensation expense

     86         89             260         278   

Changes in operating assets and liabilities

     (300      (295          (721      (254
  

 

 

    

 

 

        

 

 

    

 

 

 

Cash basis operating income

     4,360         4,802             12,980         14,724   

Payments of interest

     (612      (567          (1,809      (1,725

Payments of income taxes

     (596      (833          (1,166      (1,855

Proceeds from investments and other

     100         49             243         201   

Excess tax benefits under share-based compensation

     (2      (27          (42      (106
  

 

 

    

 

 

        

 

 

    

 

 

 

Net Cash Provided by Operating Activities

   $ 3,250       $ 3,424           $ 10,206       $ 11,239   
  

 

 

    

 

 

        

 

 

    

 

 

 

Capital expenditures

     (1,408      (1,582          (3,785      (4,043

Cash paid for capitalized software and other intangible assets

     (209      (191          (505      (605

Distributions to NBCUniversal noncontrolling member

     (12      (221          (86      (340

Distributions to other noncontrolling interests

     (50      (43          (151      (157

Nonoperating items

     (34      216             (15      269   
  

 

 

    

 

 

        

 

 

    

 

 

 

Free Cash Flow (including Economic stimulus packages)

   $ 1,537       $ 1,603           $ 5,664       $ 6,363   

Economic stimulus packages

     (145      (89          (531      (256
  

 

 

    

 

 

        

 

 

    

 

 

 

Total Free Cash Flow

   $ 1,392       $ 1,514           $ 5,133       $ 6,107   
  

 

 

    

 

 

        

 

 

    

 

 

 

Reconciliation of EPS Excluding Gains Related to Equity Method Investments, Unfavorable Income Tax Adjustments and NBCUniversal Transaction and Related Costs (Unaudited)

 

 

 
     Three Months Ended
September 30,
              

Nine Months Ended

September 30,

 
(in millions, except per share data)    2011      2012                2011      2012  
     $      EPS (1)      $     EPS (1)                $      EPS (1)      $     EPS (1)  
  

 

 

    

 

 

           

 

 

    

 

 

 

Net income attributable to Comcast Corporation

   $ 908       $ 0.33       $ 2,113      $ 0.78              $ 2,873       $ 1.03       $ 4,685      $ 1.72   

Growth %

           132.8 %      136.4 %                    63.0 %      67.0 % 
 

Equity interest in SpectrumCo transaction(2)

     -         -         (543     (0.20             -         -         (543     (0.20

Gain on the sale of investment in A&E(3)

     -         -         (319     (0.12             -         -         (319     (0.12

Unfavorable income tax adjustments(4)

     -         -         -        -                137         0.05         -        -   

Comcast costs related to the NBCUniversal transaction, net of tax(5)

     -         -         -        -                51         0.02         -        -   

NBCUniversal transaction-related costs, net of tax(6)

     4         0.00         -        -                20         0.00         -        -   
  

 

 

    

 

 

           

 

 

    

 

 

 
 

Net income attributable to Comcast Corporation (excluding gains related to equity method investments, unfavorable income tax adjustments and NBCUniversal transaction and related costs)

   $ 912       $ 0.33       $ 1,251      $ 0.46              $ 3,081       $ 1.10       $ 3,823      $ 1.40   
  

 

 

    

 

 

           

 

 

    

 

 

 

Growth %

           37.1 %      39.4 %                    24.1 %      27.3 % 

 

  (1)

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

 

  (2)

3rd quarter 2012 net income attributable to Comcast Corporation includes $876 million of equity in net income of investees, $543 million net of tax, resulting from our share of the gain on SpectrumCo’s sale of wireless spectrum licenses.

 

  (3)

3rd quarter 2012 net income attributable to Comcast Corporation includes $1 billion of other income, $319 million net of tax and noncontrolling interest, resulting from the sale of the investment in A&E Television Networks.

 

  (4)

2011 year to date net income attributable to Comcast Corporation includes an unfavorable tax adjustment due to changes in state tax legislation of $137 million in total.

 

  (5)

2011 year to date net income attributable to Comcast Corporation includes $63 million of operating costs and expenses and $16 million of other expense ($80 million in total, $51 million net of tax) related to the NBCUniversal transaction.

 

  (6)

1st quarter 2011 net income attributable to Comcast Corporation includes $44 million in transaction-related costs, $14 million net of tax and noncontrolling interest. 2nd quarter 2011 net income attributable to Comcast Corporation includes $6 million in transaction-related costs, $2 million net of tax and noncontrolling interest. 3rd quarter 2011 net income attributable to Comcast Corporation includes $14 million in transaction-related costs, $4 million net of tax and noncontrolling interest.

 

Note:

Consolidated financial results include NBCUniversal from January 28, 2011 and 100% of Universal Orlando from July 1, 2011. Minor differences may exist due to rounding.

 

10


TABLE 5

Reconciliation of GAAP to Pro Forma(1) Financial Information (Unaudited)

   LOGO  

 

 

     
                Corporate, Other and        
   

GAAP

   

NBCUniversal

   

Eliminations

   

Total

 
     
                                              Pro Forma              
                Corporate,                             Corporate,              
   

Cable

    Total     Other and           Pro Forma     Pro Forma     Pro Forma     Other and     Pro Forma     Total  
(in millions)   Communications     NBCU     Eliminations     Total     Adjustments(1)     NBCU     Adjustments(1)     Eliminations     Adjustments(1)     Pro Forma  

Three Months Ended September 30, 2011

                                           

Revenue

    $    9,331        $    5,200        $  (192     $  14,339        -        $    5,200        -        $  (192     -        $  14,339   

Operating costs and expenses

    5,617        4,249        (101     9,765        -        4,249        -        (101     -        9,765   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating cash flow

    $    3,714        $951        $    (91     $    4,574        -        $       951        -        $    (91     -        $    4,574   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Three Months Ended September 30, 2012

                                           

Revenue

    $    9,976        $    6,822        $  (254     $  16,544        -        $    6,822        -        $  (254     -        $  16,544   

Operating costs and expenses

    5,978        5,682        (124     11,536        -        5,682        -        (124     -        11,536   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating cash flow

    $    3,998        $    1,140        $  (130     $    5,008        -        $    1,140        -        $  (130     -        $    5,008   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                         
               

Nine Months Ended September 30, 2011

                                           

Revenue

    $  27,756        $  13,522        $  (478     $  40,800        $  1,864        $  15,386        $  (45     $  (523     $  1,819        $  42,619   

Operating costs and expenses

    16,407        11,112        (160     27,359        1,557        12,669        (107     (267     1,450        28,809   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating cash flow

    $  11,349        $    2,410        $  (318     $  13,441        $     307        $    2,717        $   62        $  (256     $     369        $  13,810   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Nine Months Ended September 30, 2012

                                           

Revenue

    $  29,472        $  17,798        $  (637     $  46,633        -        $  17,798        -        $  (637     -        $  46,633   

Operating costs and expenses

    17,418        14,863        (348     31,933        -        14,863        -        (348     -        31,933   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating cash flow

    $  12,054        $    2,935        $  (289     $  14,700        -        $    2,935        -        $  (289     -        $  14,700   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)

Pro Forma information is presented as if the NBCUniversal transaction and the acquisition of the remaining 50% interest of Universal Orlando occurred January 1, 2010. Pro forma data 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 amounts are not necessarily indicative of what our results would have been had we operated the NBCUniversal contributed businesses or Universal Orlando since January 1, 2010, nor of our future results.

 

11


TABLE 6

Reconciliation of Consolidated Pro Forma Revenue Excluding 2012 Olympics and Super Bowl and Operating Cash Flow Excluding 2012 Olympics (Unaudited)

   LOGO  

 

 

 
(in millions)    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2011      2012     Growth %     2011      2012     Growth %  

Revenue

   $ 14,339       $ 16,544        15.4   $ 42,619       $ 46,633        9.4
 

2012 Olympics

     -         (1,188         -         (1,188  

Super Bowl

     -         -            -         (259  
  

 

 

    

 

 

       

 

 

    

 

 

   
 

Revenue excluding 2012 Olympics and Super Bowl

   $ 14,339       $ 15,356        7.1   $ 42,619       $ 45,186        6.0
  

 

 

    

 

 

       

 

 

    

 

 

   
 
     2011      2012     Growth %     2011      2012     Growth %  

Operating Cash Flow

   $ 4,574       $ 5,008        9.5   $ 13,810       $ 14,700        6.4
 

2012 Olympics

     -         (120 )(1)          -         (120 )(1)   
  

 

 

    

 

 

       

 

 

    

 

 

   
 

Operating Cash Flow excluding 2012 Olympics

   $ 4,574       $ 4,888        6.9   $ 13,810       $ 14,580        5.6
  

 

 

    

 

 

       

 

 

    

 

 

   

Reconciliation of Consolidated Pro Forma NBCUniversal Revenue Excluding 2012 Olympics and Super Bowl and Operating Cash Flow Excluding 2012 Olympics (Unaudited)

 

 

 
(in millions)    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2011      2012     Growth %     2011      2012     Growth %  

Revenue

   $ 5,200       $ 6,822        31.2   $ 15,386       $ 17,798        15.7
 

2012 Olympics

     -         (1,188         -         (1,188  

Super Bowl

     -         -            -         (259  
  

 

 

    

 

 

       

 

 

    

 

 

   
 

Revenue excluding 2012 Olympics and Super Bowl

   $ 5,200       $ 5,634        8.3   $ 15,386       $ 16,351        6.3
  

 

 

    

 

 

       

 

 

    

 

 

   
 
     2011      2012     Growth %     2011      2012     Growth %  

Operating Cash Flow

   $ 951       $ 1,140        19.9   $ 2,717       $ 2,935        8.0
 

2012 Olympics

     -         (120 )(1)          -         (120 )(1)   
  

 

 

    

 

 

       

 

 

    

 

 

   
 

Operating Cash Flow excluding 2012 Olympics

   $ 951       $ 1,020        7.3   $ 2,717       $ 2,815        3.6
  

 

 

    

 

 

       

 

 

    

 

 

   

Reconciliation of Pro Forma Broadcast Television Revenue Excluding 2012 Olympics and Super Bowl and Operating Cash Flow Excluding 2012 Olympics (Unaudited)

 

 

 
(in millions)    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2011     2012     Growth %     2011      2012     Growth %  

Revenue

   $ 1,511      $ 2,777        83.8   $ 4,558       $ 6,168        35.3
 

2012 Olympics

     -        (1,188         -         (1,188  

Super Bowl

     -        -            -         (259  
  

 

 

   

 

 

       

 

 

    

 

 

   
 

Revenue excluding 2012 Olympics and Super Bowl

   $ 1,511      $ 1,589        5.2   $ 4,558       $ 4,721        3.6
  

 

 

   

 

 

       

 

 

    

 

 

   
 
     2011     2012     Growth %     2011      2012     Growth %  

Operating Cash Flow

   $ (7   $ 88        NM      $ 203       $ 274        35.2
 

2012 Olympics

     -        (120 )(1)          -         (120 )(1)   
  

 

 

   

 

 

       

 

 

    

 

 

   
 

Operating Cash Flow excluding 2012 Olympics

   $ (7   $ (32     NM      $ 203       $ 154        (24.0 %) 
  

 

 

   

 

 

       

 

 

    

 

 

   

 

  (1)

Reflects the settlement of a $237 million liability associated with the unfavorable Olympics contract recorded through the application of acquisition accounting in 2011.

 

  Note:  

Minor differences may exist due to rounding.

 

12