EX-99.1 5 a05-10285_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Selected Financial Data

 

The operating and balance sheet data included in the following selected financial data have been derived from the consolidated financial statements of Cablevision and CSC Holdings.  Acquisitions made by these companies were accounted for under the purchase method of accounting and, accordingly, the acquisition costs were allocated to the net assets acquired based on their fair value, except for assets previously owned by Charles F. Dolan or affiliates of Mr. Dolan which were recorded at historical cost.  Acquisitions are reflected in operating, balance sheet and statistical data from the time of acquisition.  The operating and balance sheet data below has been amended to reclassify the transactions discussed in Note 23 of the Notes to Consolidated Financial Statements as discontinued operations for all periods presented.  The selected financial data presented below should be read in conjunction with the consolidated financial statements of Cablevision and CSC Holdings and the notes thereto included in Exhibit 99.3 of this Report.

 

 

 

Cablevision Systems Corporation

 

 

 

Years Ended December 31,

 

 

 

2004

 

2003

 

2002

 

2001

 

2000

 

 

 

(dollars in thousands, except per share data)

 

Operating Data:

 

 

 

 

 

 

 

 

 

 

 

Revenues, net

 

$

4,750,037

 

$

4,023,209

 

$

3,664,365

 

$

3,478,463

 

$

3,534,960

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Technical and operating (excluding depreciation and amortization (including impairments))

 

2,262,694

 

1,864,579

 

1,664,441

 

1,653,431

 

1,596,870

 

Selling, general and administrative

 

1,192,457

 

1,083,394

 

906,794

 

921,570

 

950,249

 

Other operating expense (income)

 

(95,758

)

(4,758

)

—

 

—

 

—

 

Restructuring charges

 

151

 

10,725

 

74,091

 

42,722

 

—

 

Depreciation and amortization (including impairments)

 

1,137,940

 

1,042,850

 

862,952

 

1,105,074

 

965,404

 

Operating income (loss)

 

252,553

 

26,419

 

156,087

 

(244,334

)

22,437

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(712,440

)

(604,769

)

(485,316

)

(519,051

)

(552,741

)

Equity in net income (loss) of affiliates

 

(12,991

)

429,732

 

(42,014

)

(68,206

)

(17,098

)

Gain (loss) on sale of cable assets and programming and affiliate interests, net

 

2,232

 

(13,644

)

—

 

2,174,664

 

1,209,865

 

Impairment charges on At Home investment

 

—

 

—

 

—

 

(108,452

)

(139,682

)

Gain (loss) on investments, net

 

134,598

 

235,857

 

(881,394

)

109,355

 

(6,747

)

Write-off of deferred financing costs

 

(18,961

)

(388

)

(6,931

)

(18,770

)

(5,209

)

Gain (loss) on derivative contracts, net

 

(165,305

)

(208,323

)

924,037

 

281,752

 

—

 

Loss on extinguishment of debt

 

(78,571

)

—

 

(17,237

)

(15,348

)

—

 

Gain on termination of At Home agreement

 

—

 

—

 

—

 

25,190

 

—

 

Minority interests

 

(65,568

)

(116,950

)

(201,695

)

(355,405

)

(143,251

)

Miscellaneous, net

 

46

 

3,719

 

(5,644

)

(8,881

)

(5,215

)

Income (loss) from continuing operations before taxes

 

(664,407

)

(248,347

)

(560,107

)

1,252,514

 

362,359

 

Income tax benefit (expense)

 

194,808

 

(26,416

)

81,497

 

(218,708

)

(63,177

)

Income (loss) from continuing operations

 

(469,599

)

(274,763

)

(478,610

)

1,033,806

 

299,182

 

Income (loss) from discontinued operations, net of taxes

 

(199,057

)

(22,476

)

572,493

 

(52,356

)

(33,060

)

Income (loss) before extraordinary item

 

(668,656

)

(297,239

)

93,883

 

981,450

 

266,122

 

Extraordinary loss on investment, net of taxes

 

(7,436

)

—

 

—

 

—

 

—

 

Net income (loss)

 

$

(676,092

)

$

(297,239

)

$

93,883

 

$

981,450

 

$

266,122

 

 

1


 

 

 

Cablevision Systems Corporation

 

 

 

Years Ended December 31,

 

 

 

2004

 

2003

 

2002

 

2001

 

2000

 

 

 

(dollars in thousands, except per share data)

 

INCOME (LOSS) PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

(1.64

)

$

(0.96

)

$

(1.63

)

$

3.67

 

$

1.08

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations

 

$

(0.69

)

$

(0.08

)

$

1.95

 

$

(0.19

)

$

(0.12

)

 

 

 

 

 

 

 

 

 

 

 

 

Extraordinary loss

 

$

(0.03

)

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(2.36

)

$

(1.04

)

$

0.32

 

$

3.48

 

$

0.96

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares (in thousands)

 

287,085

 

285,486

 

293,516

 

281,938

 

277,473

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

(1.64

)

$

(0.96

)

$

(1.63

)

$

3.62

 

$

1.07

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations

 

$

(0.69

)

$

(0.08

)

$

1.75

 

$

(0.18

)

$

(0.12

)

 

 

 

 

 

 

 

 

 

 

 

 

Extraordinary loss

 

$

(0.03

)

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(2.36

)

$

(1.04

)

$

0.29

 

$

3.43

 

$

0.95

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares (in thousands)

 

287,085

 

285,486

 

331,959

 

285,731

 

280,751

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

—

 

—

 

—

 

—

 

—

 

 

2


 

 

 

Cablevision Systems Corporation

 

 

 

Years Ended December 31,

 

 

 

2004

 

2003

 

2002

 

2001

 

2000

 

 

 

(dollars in thousands, except per subscriber data)

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

11,404,522

 

$

11,233,647

 

$

10,584,133

 

$

10,306,430

 

$

8,286,929

 

Bank debt

 

2,489,887

 

2,357,039

 

2,085,768

 

1,006,694

 

2,616,530

 

Collateralized indebtedness

 

1,553,427

 

1,617,620

 

1,234,106

 

1,572,372

 

—

 

Senior notes and debentures

 

5,991,564

 

3,692,699

 

3,691,772

 

3,690,845

 

2,693,208

 

Subordinated notes and debentures

 

746,231

 

599,203

 

599,128

 

599,054

 

1,048,648

 

Notes payable

 

150,000

 

150,000

 

—

 

—

 

—

 

Capital leases

 

71,563

 

84,856

 

86,208

 

96,296

 

100,690

 

Total debt

 

11,002,672

 

8,501,417

 

7,696,982

 

6,965,261

 

6,459,076

 

Minority interests

 

685,877

 

580,766

 

626,571

 

870,675

 

591,329

 

Preferred stock of CSC Holdings

 

—

 

1,624,295

 

1,544,294

 

1,544,294

 

1,544,294

 

Stockholders’ deficiency

 

(2,630,334

)

(1,989,802

)

(1,722,361

)

(1,588,206

)

(2,505,898

)

 

 

 

Years Ended December 31,

 

 

 

2004

 

2003

 

2002

 

2001

 

2000

 

Statistical Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Video:

 

 

 

 

 

 

 

 

 

 

 

Homes passed by cable (1)

 

4,443,000

 

4,401,000

 

4,369,000

 

4,337,000

 

4,698,000

 

Basic video subscribers (2)

 

2,963,000

 

2,944,000

 

2,963,000

 

3,008,000

 

3,193,000

 

Basic video subscribers as a percentage of homes passed

 

66.7

%

66.9

%

67.8

%

69.4

%

68.0

%

Average monthly revenue per basic video subscriber (3)

 

$

87.17

 

$

76.69

 

$

65.56

 

$

59.93

 

$

55.51

 

 

 

 

 

 

 

 

 

 

 

 

 

High-Speed Data Service:

 

 

 

 

 

 

 

 

 

 

 

Customers

 

1,352,500

 

1,057,000

 

770,100

 

506,700

 

238,500

 

Customers as a percentage of homes passed

 

30.4

%

24.0

%

17.6

%

11.7

%

5.1

%

 

 

 

 

 

 

 

 

 

 

 

 

VoIP Services:

 

 

 

 

 

 

 

 

 

 

 

Customers

 

272,700

 

28,700

 

—

 

—

 

—

 

Customers as a percentage of homes passed

 

6.1

%

0.7

%

—

 

—

 

—

 

 

(1)

 

Homes passed is based upon homes actually marketed and does not include multiple dwelling units passed by the cable plant that are not connected to it.

(2)

 

Basic video subscribers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one subscriber, regardless of size, revenue generated, or number of boxes, units, or outlets. In calculating the number of customers, the Company counts all customers other than inactive/disconnected customers. Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group such as current and retired Company employees, and free status is not granted to regular customers as a promotion. Such accounts are also not entirely free, as they typically generate revenue through pay-per-view or other services for which they must pay. The Company counts a bulk commercial customer, such as a hotel, as one customer, and does not count individual rooms’ units at that hotel. In counting bulk residential customers such as an apartment building, the Company counts each subscribing family unit within the building as one customer, but does not count the master account for the entire building as a customer.

(3)

 

Average monthly revenue per basic subscriber is calculated by dividing the GAAP revenues for the Telecommunications Services segment excluding revenues of Lightpath for the fourth quarter in the period by the average number of basic video subscribers for the same period.

 

3


 

 

 

CSC Holdings, Inc.

 

 

 

Years Ended December 31,

 

 

 

2004

 

2003

 

2002

 

2001

 

2000

 

 

 

(dollars in thousands, except per share data)

 

Operating Data:

 

 

 

 

 

 

 

 

 

 

 

Revenues, net

 

$

4,750,037

 

$

4,023,209

 

$

3,664,365

 

$

3,478,463

 

$

3,534,960

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Technical and operating (excluding depreciation and amortization (including impairments))

 

2,262,694

 

1,864,579

 

1,664,441

 

1,653,431

 

1,596,870

 

Selling, general and administrative

 

1,192,457

 

1,083,394

 

906,794

 

921,570

 

950,249

 

Other operating expense (income)

 

(95,758

)

(4,758

)

—

 

—

 

—

 

Restructuring charges

 

151

 

10,725

 

74,091

 

42,722

 

—

 

Depreciation and amortization (including impairments)

 

1,137,940

 

1,042,850

 

862,952

 

1,105,074

 

965,404

 

Operating income (loss)

 

252,553

 

26,419

 

156,087

 

(244,334

)

22,437

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(627,392

)

(600,979

)

(485,316

)

(519,051

)

(552,741

)

Equity in net income (loss) of affiliates

 

(12,991

)

429,732

 

(42,014

)

(68,206

)

(17,098

)

Gain (loss) on sale of cable assets and programming and affiliates interests, net

 

2,232

 

(13,644

)

—

 

2,174,664

 

1,209,865

 

Impairment charges on At Home investment

 

—

 

—

 

—

 

(108,452

)

(139,682

)

Gain (loss) on investments, net

 

134,598

 

235,857

 

(881,394

)

109,355

 

(6,747

)

Write-off of deferred financing costs

 

(18,961

)

(388

)

(6,931

)

(18,770

)

(5,209

)

Gain (loss) on derivative contracts, net

 

(165,305

)

(208,323

)

924,037

 

281,752

 

—

 

Loss on extinguishment of debt

 

(78,571

)

—

 

(17,237

)

(15,348

)

—

 

Gain on termination of At Home agreement

 

—

 

—

 

—

 

25,190

 

—

 

Minority interests

 

(65,568

)

(24,690

)

(27,179

)

(180,889

)

22,053

 

Miscellaneous, net

 

46

 

3,719

 

(5,644

)

(8,881

)

(5,215

)

Income (loss) from continuing operations before income taxes and dividend requirements

 

(579,359

)

(152,297

)

(385,591

)

1,427,030

 

527,663

 

Income tax benefit (expense)

 

159,683

 

(28,008

)

81,497

 

(218,708

)

(63,177

)

Income (loss) from continuing operations before dividend requirements

 

(419,676

)

(180,305

)

(304,094

)

1,208,322

 

464,486

 

Dividend requirements applicable to preferred stock

 

—

 

(92,260

)

(174,516

)

(174,516

)

(165,304

)

Income (loss) from continuing operations

 

(419,676

)

(272,565

)

(478,610

)

1,033,806

 

299,182

 

Income (loss) from discontinued operations, net of taxes

 

(199,057

)

(22,476

)

572,493

 

(52,356

)

(33,060

)

Income (loss) applicable to common shareholder before extraordinary item

 

(618,733

)

(295,041

)

93,883

 

981,450

 

266,122

 

Extraordinary loss on investment, net of taxes

 

(7,436

)

—

 

—

 

—

 

—

 

Net income (loss) applicable to common shareholder

 

$

(626,169

)

$

(295,041

)

$

93,883

 

$

981,450

 

$

266,122

 

 

4


 

 

 

CSC Holdings, Inc.

 

 

 

Years Ended December 31,

 

 

 

2004

 

2003

 

2002

 

2001

 

2000

 

 

 

(dollars in thousands, except per subscriber data)

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

11,364,498

 

$

11,244,969

 

$

10,584,133

 

$

10,306,430

 

$

8,286,929

 

Bank debt

 

2,489,887

 

2,357,039

 

2,085,768

 

1,006,694

 

2,616,530

 

Collateralized indebtedness

 

1,553,427

 

1,617,620

 

1,234,106

 

1,572,372

 

—

 

Senior notes and debentures

 

4,491,564

 

3,692,699

 

3,691,772

 

3,690,845

 

2,693,208

 

Subordinated notes and debentures

 

746,231

 

599,203

 

599,128

 

599,054

 

1,048,648

 

Notes payable

 

150,000

 

150,000

 

—

 

—

 

—

 

Capital leases

 

71,563

 

84,856

 

86,208

 

96,296

 

100,690

 

Total debt

 

9,502,672

 

8,501,417

 

7,696,982

 

6,965,261

 

6,459,076

 

Minority interests

 

685,877

 

580,766

 

626,571

 

870,675

 

591,329

 

Redeemable preferred stock

 

—

 

1,544,294

 

1,544,294

 

1,544,294

 

1,544,294

 

Exchangeable preferred stock

 

—

 

80,001

 

—

 

—

 

—

 

Stockholder’s deficiency

 

(1,164,579

)

(1,979,931

)

(1,775,039

)

(1,637,644

)

(2,542,822

)

 

 

 

Years Ended December 31,

 

 

 

2004

 

2003

 

2002

 

2001

 

2000

 

Statistical Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Video:

 

 

 

 

 

 

 

 

 

 

 

Homes passed by cable (1)

 

4,443,000

 

4,401,000

 

4,369,000

 

4,337,000

 

4,698,000

 

Basic video subscribers (2)

 

2,963,000

 

2,944,000

 

2,963,000

 

3,008,000

 

3,193,000

 

Basic video subscribers as a percentage of homes passed

 

66.7

%

66.9

%

67.8

%

69.4

%

68.0

%

Average monthly revenue per basic video subscriber (3)

 

$

87.17

 

$

76.69

 

$

65.56

 

$

59.93

 

$

55.51

 

 

 

 

 

 

 

 

 

 

 

 

 

High-Speed Data Service:

 

 

 

 

 

 

 

 

 

 

 

Customers

 

1,352,500

 

1,057,000

 

770,100

 

506,700

 

238,500

 

Customers as a percentage of homes passed

 

30.4

%

24.0

%

17.6

%

11.7

%

5.1

%

 

 

 

 

 

 

 

 

 

 

 

 

VoIP Services:

 

 

 

 

 

 

 

 

 

 

 

Customers

 

272,700

 

28,700

 

—

 

—

 

—

 

Customers as a percentage of homes passed

 

6.1

%

0.7

%

—

 

—

 

—

 

 

(1)

 

Homes passed is based upon homes actually marketed and does not include multiple dwelling units passed by the cable plant that are not connected to it.

(2)

 

Basic video subscribers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one subscriber, regardless of size, revenue generated, or number of boxes, units, or outlets. In calculating the number of customers, the Company counts all customers other than inactive/disconnected customers. Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group such as current and retired Company employees, and free status is not granted to regular customers as a promotion. Such accounts are also not entirely free, as they typically generate revenue through pay-per-view or other services for which they must pay. The Company counts a bulk commercial customer, such as a hotel, as one customer, and does not count individual rooms’ units at that hotel. In counting bulk residential customers such as an apartment building, the Company counts each subscribing family unit within the building as one customer, but does not count the master account for the entire building as a customer.

(3)

 

Average monthly revenue per basic subscriber is calculated by dividing the GAAP revenues for the Telecommunications Services segment excluding revenues of Lightpath for the fourth quarter in the period by the average number of basic video subscribers for the same period.

 

5