EX-99.1 3 dex991.htm EARNINGS RELEASE DATED AUGUST 13, 2003 Earnings Release dated August 13, 2003

 

 

Exhibit 99.1

 

 

 

 

 

 

 

Exhibit 99.1

 

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CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except for per share amounts)

 

     3 Months Ended
June 30,
     12 Months Ended
June 30,
  
     2003
     2002
     2003
     2002
  

Revenues

    $ 2,801     $ 2,431     $ 11,002     $ 9,725  

Expenses

                                 

Operating

      1,929       1,773       7,693       7,226  

Selling, general and administrative

      398       372       1,343       1,293  

Depreciation and amortization

      44       98       183       400  

Other operating charge

      —         —         —         909  
    
 
 
 

Operating income (loss)

      430       188       1,783       (103 )

Other income (expense):

                                 

Interest expense, net

      (16 )     (49 )     (136 )     (241 )

Equity earnings (losses) of affiliates

      17       (9 )     (1 )     (144 )

Minority interest in subsidiaries

      (8 )     (8 )     (29 )     (37 )

Other, net

      —         (45 )     —         1,540  
    
 
 
 

Income before provision for income taxes and cumulative effect of accounting change

      423       77       1,617       1,015  

Provision for income tax expense on stand-alone basis

      (165 )     (37 )     (586 )     (408 )
    
 
 
 

Income before cumulative effect of accounting change, net of tax

      258       40       1,031       607  

Cumulative effect of accounting change, net

      —         —         —         (26 )
    
 
 
 

Net income

    $ 258     $ 40     $ 1,031     $ 581  
    
 
 
 

Basic and diluted earnings per share before cumulative effect of accounting change

    $ 0.29     $ 0.05     $ 1.17     $ 0.72  

Basic and diluted cumulative effect of accounting change, net of tax, per share

      —         —         —         (0.03 )
    
 
 
 

Basic and diluted earnings per share

    $ 0.29     $ 0.05     $ 1.17     $ 0.69  
    
 
 
 

Basic and diluted weighted average number of common equivalent shares outstanding

      900       850       881       838  
    
 
 
 

 

 

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SEGMENT INFORMATION

(in millions)

 

     3 Months Ended
June 30,
     12 Months Ended
June 30,
  
     2003
    2002
     2003
     2002
  

Revenues

                                

Filmed Entertainment

    $ 1,106    $ 927     $ 4,498     $ 4,048  

Television Stations

      545      518       2,115       1,875  

Television Broadcast Network

      513      453       2,244       2,048  

Cable Network Programming

      637      533       2,145       1,754  
    
  
 
 

Total Revenues(1)

    $ 2,801    $ 2,431     $ 11,002     $ 9,725  
    
  
 
 

Operating Income (Loss) Before Depreciation and Amortization

                                

Filmed Entertainment

    $ 105    $ 92     $ 717     $ 544  

Television Stations

      260      237       983       798  

Television Broadcast Network

      34      (55 )     (81 )     (263 )

Cable Network Programming

      106      44       472       243  

Provision for Sports Contracts

      —        —         —         (909 )
    
  
 
 

Total Operating Income (Loss) Before Depreciation and Amortization

    $ 505    $ 318     $ 2,091     $ 413  
    
  
 
 

Operating Income (Loss)

                                

Filmed Entertainment

    $ 92    $ 77     $ 662     $ 485  

Television Stations

      245      189       921       598  

Television Broadcast Network

      29      (60 )     (100 )     (283 )

Cable Network Programming

      64      (18 )     300       6  

Provision for Sports Contracts

      —        —         —         (909 )
    
  
 
 

Total Operating Income (Loss)

    $ 430    $ 188     $ 1,783     $ (103 )
    
  
 
 
(1)   In January 2002, the Company adopted EITF No. 01-09 “Accounting for the Consideration Given by a Vendor to a Customer or a Reseller of the Vendors’ Products” and as a result has reclassified the amortization of cable distribution investments against revenue as detailed in the following table:

 

     3 Months Ended
June 30,
     12 Months Ended
June 30,
  
     2003
     2002
     2003
     2002
  
     $ Millions     $ Millions  

Gross revenues

    $ 2,832     $ 2,463     $ 11,127     $ 9,841  

Amortization of cable distribution investments

      (31 )     (32 )     (125 )     (116 )
    
 
 
 

Revenues

    $ 2,801     $ 2,431     $ 11,002     $ 9,725  
    
 
 
 

 

 

 

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SUPPLEMENTAL FINANCIAL DATA

 

Operating income before depreciation and amortization, defined as operating income (loss) plus depreciation and amortization and the amortization of cable distribution investments, eliminates the variable effect across all business segments of non-cash depreciation and amortization. Since, operating income before depreciation and amortization is a non-GAAP measure it should be considered in addition to, not as a substitute for, operating income, net income, cash flow and other measures of financial performance reported in accordance with GAAP. Operating income before depreciation and amortization does not reflect cash available to fund requirements, and the items excluded from operating income before depreciation and amortization, such as depreciation and amortization, are significant components in assessing the Company’s financial performance. Management believes that operating income before depreciation and amortization is an appropriate measure for evaluating the operating performance of the consolidated Company and its business segments. Operating income before depreciation and amortization, which is the information reported to and used by the Company’s chief decision maker for the purpose of making decisions about the allocation of resources to segments and assessing their performance, provides management, investors and equity analysts a measure to analyze operating performance and enterprise value against historical and competitors’ data.

 

The following table reconciles operating income before depreciation and amortization to the presentation of operating income.

 

     3 Months Ended
June 30,
    12 Months Ended
June 30,
  
     2003
    2002
    2003
    2002
  
     $ Millions    $ Millions  

Operating income (loss)

    $ 430    $ 188    $ 1,783    $ (103 )

Depreciation and amortization

      44      98      183      400  

Amortization of cable distribution investments

      31      32      125      116  
    
  
  
  

Operating income (loss) before depreciation and amortization

    $ 505    $ 318    $ 2,091    $ 413  
    
  
  
  

 

    

For the Three Months Ended June 30, 2003

($ Millions)

     Operating
Income
(loss)
    Depreciation
and
Amortization
    Amortization
of cable
distribution
investments
    Operating
income
(loss) before
depreciation
and
amortization

Filmed Entertainment

    $ 92    $ 13    $  —      $ 105

Television Stations

      245      15      —        260

Television Broadcast Network

      29      5      —        34

Cable Network Programming

      64      11      31      106
    
  
  
  

Consolidated Total

    $ 430    $ 44    $ 31    $ 505
    
  
  
  

 

 

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SUPPLEMENTAL FINANCIAL DATA (continued)

 

 

    

For the Three Months Ended June 30, 2002

($ Millions)

  
     Operating
Income
(loss)
     Depreciation
and
Amortization
    Amortization
of cable
distribution
investments
    Operating
income
(loss) before
depreciation
and
amortization
  

Filmed Entertainment

    $ 77     $ 15    $ —      $ 92  

Television Stations

      189       48      —        237  

Television Broadcast Network

      (60 )     5      —        (55 )

Cable Network Programming

      (18 )     30      32      44  
    
 
  
  

Consolidated Total

    $ 188     $ 98    $ 32    $ 318  
    
 
  
  
    

For the Twelve Months Ended June 30, 2003

($ Millions)

  
     Operating
Income
(loss)
     Depreciation
and
Amortization
    Amortization
of cable
distribution
investments
    Operating
income
(loss) before
depreciation
and
amortization
  

Filmed Entertainment

    $ 662     $ 55    $ —      $ 717  

Television Stations

      921       62      —        983  

Television Broadcast Network

      (100 )     19      —        (81 )

Cable Network Programming

      300       47      125      472  
    
 
  
  

Consolidated Total

    $ 1,783     $ 183    $ 125    $ 2,091  
    
 
  
  
    

For the Twelve Months Ended June 30, 2002

($ Millions)

  
     Operating
Income
(loss)
     Depreciation
and
Amortization
    Amortization
of cable
distribution
investments
    Operating
income
(loss) before
depreciation
and
amortization
  

Filmed Entertainment

    $ 485     $ 59    $ —      $ 544  

Television Stations

      598       200      —        798  

Television Broadcast Network

      (283 )     20      —        (263 )

Cable Network Programming

      6       121      116      243  

Provision for Sports Contracts

      (909 )     —        —        (909 )
    
 
  
  

Consolidated Total

    $ (103 )   $ 400    $ 116    $ 413  
    
 
  
  

 

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