Delaware
|
No. 1-14764
|
No. 11-3415180
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
No. 1-9046
(Commission File Number) |
|
No. 27-0726696
(IRS Employer Identification Number) |
|
|
|
1111 Stewart Avenue
Bethpage, New York
|
|
11714
|
(Address of principal executive offices)
|
|
(Zip Code)
|
N/A
|
(Former name or former address, if changed since last report)
|
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02
|
Results of Operations and Financial Condition
|
Item 9.01
|
Financial Statement and Exhibits
|
(d)
|
Exhibits.
|
Earnings Press Release dated November 8, 2013.
|
CABLEVISION SYSTEMS CORPORATION
|
|||
|
(Registrant)
|
||
|
|||
By:
|
/s/ Victoria M. Mink
|
||
|
|
Name:
|
Victoria M. Mink
|
|
|
Title:
|
Senior Vice President,
Controller and Principal
Accounting Officer
|
|
|
|
|
Dated: November 8, 2013
|
|
|
|
CSC HOLDINGS, LLC
|
|||
|
(Registrant)
|
||
|
|||
By:
|
/s/ Victoria M. Mink
|
||
|
|
Name:
|
Victoria M. Mink
|
|
|
Title:
|
Senior Vice President,
Controller and Principal
Accounting Officer
|
|
|
|
|
Dated: November 8, 2013
|
|
|
|
FOR IMMEDIATE RELEASE
|
· | Average Monthly Revenue per Video Customer (“RPS”) of $164.61, an increase of $8.38 or 5.4%, compared with the prior year period. |
· | Cable advertising revenue growth of 8.8%, compared to the prior year period. |
· | Year to date Consolidated Free Cash Flow from Continuing Operations2 of $77.3 million. |
1. | Financial results of Bresnan Broadband Holdings, LLC (Bresnan Cable) and substantially all of Clearview Cinemas (Clearview) are reflected in the Company’s consolidated financial statements as discontinued operations for all periods presented. |
2. | See definition of AOCF and Consolidated Free Cash Flow from Continuing Operations included in the discussion of non-GAAP financial measures on page 4 of this earnings release. |
|
Total
June 30, 2013
|
Net Gain/(Loss)
|
Total
September 30, 2013
|
|
|
|
|
Total Customers(a)
|
3,224
|
(29)
|
3,195
|
|
|
|
|
Video
|
2,868
|
(37)
|
2,831
|
High-Speed Data
|
2,787
|
(13)
|
2,774
|
Voice Customers
|
2,290
|
(18)
|
2,272
|
|
|
|
|
Serviceable Passings
|
5,004
|
9
|
5,013
|
(a) | Total customers are defined as the number of households/businesses that receive at least one of the Company's services. |
Contacts:
|
Charles Schueler
|
Bret Richter
|
|
Executive Vice President
|
Senior Vice President
|
|
Media and Community Relations
|
Financial Strategy & Development
|
|
(516) 803-1013
|
(516) 803-2270
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2013(a)
|
2012(a)
|
2013(a)
|
2012(a)
|
||||||||||||
|
||||||||||||||||
Revenues, net
|
$
|
1,567,837
|
$
|
1,539,515
|
$
|
4,648,684
|
$
|
4,616,563
|
||||||||
|
||||||||||||||||
Adjusted operating cash flow
|
441,140
|
459,326
|
1,228,142
|
1,430,677
|
||||||||||||
Share-based compensation expense
|
(12,252
|
)
|
(13,519
|
)
|
(40,544
|
)
|
(37,259
|
)
|
||||||||
Restructuring credit (expense)
|
(56
|
)
|
(330
|
)
|
582
|
61
|
||||||||||
Operating income before depreciation and amortization
|
428,832
|
445,477
|
1,188,180
|
1,393,479
|
||||||||||||
Depreciation and amortization (including impairments)
|
203,405
|
227,814
|
657,603
|
655,350
|
||||||||||||
Operating income
|
225,427
|
217,663
|
530,577
|
738,129
|
||||||||||||
Other income (expense):
|
||||||||||||||||
Interest expense, net
|
(145,275
|
)
|
(168,005
|
)
|
(457,862
|
)
|
(501,435
|
)
|
||||||||
Gain on investments, net
|
70,222
|
81,619
|
166,891
|
259,057
|
||||||||||||
Loss on equity derivative contracts, net
|
(40,750
|
)
|
(57,082
|
)
|
(93,260
|
)
|
(184,413
|
)
|
||||||||
Loss on interest rate swap contracts, net
|
-
|
-
|
-
|
(1,828
|
)
|
|||||||||||
Loss on extinguishment of debt and write-off of deferred financing costs, net
|
(16,509
|
)
|
(61,052
|
)
|
(23,146
|
)
|
(61,052
|
)
|
||||||||
Miscellaneous, net
|
805
|
474
|
1,673
|
1,278
|
||||||||||||
Income from continuing operations before income taxes
|
93,920
|
13,617
|
124,873
|
249,736
|
||||||||||||
Income tax expense
|
(34,172
|
)
|
(9,905
|
)
|
(44,036
|
)
|
(101,544
|
)
|
||||||||
Income from continuing operations
|
59,748
|
3,712
|
80,837
|
148,192
|
||||||||||||
Income (loss) from discontinued operations, net of income taxes
|
235,286
|
(7,576
|
)
|
333,516
|
(31,163
|
)
|
||||||||||
Net income (loss)
|
295,034
|
(3,864
|
)
|
414,353
|
117,029
|
|||||||||||
Net loss (income) attributable to noncontrolling interests
|
(433
|
)
|
73
|
(534
|
)
|
(44
|
)
|
|||||||||
Net income (loss) attributable to Cablevision Systems Corporation stockholders
|
$
|
294,601
|
$
|
(3,791
|
)
|
$
|
413,819
|
$
|
116,985
|
|||||||
|
||||||||||||||||
Basic net income (loss) per share attributable to Cablevision Systems Corporation stockholders:
|
||||||||||||||||
Income from continuing operations
|
$
|
0.23
|
$
|
0.01
|
$
|
0.31
|
$
|
0.56
|
||||||||
Income (loss) from discontinued operations
|
$
|
0.90
|
$
|
(0.03
|
)
|
$
|
1.28
|
$
|
(0.12
|
)
|
||||||
Net income (loss)
|
$
|
1.13
|
$
|
(0.01
|
)
|
$
|
1.59
|
$
|
0.44
|
|||||||
Basic weighted average common shares (in thousands)
|
261,287
|
259,905
|
260,473
|
263,570
|
||||||||||||
|
||||||||||||||||
Diluted net income (loss) per share attributable to Cablevision Systems Corporation stockholders:
|
||||||||||||||||
Income from continuing operations
|
$
|
0.22
|
$
|
0.01
|
$
|
0.30
|
$
|
0.55
|
||||||||
Income (loss) from discontinued operations
|
$
|
0.88
|
$
|
(0.03
|
)
|
$
|
1.26
|
$
|
(0.12
|
)
|
||||||
Net income (loss)
|
$
|
1.10
|
$
|
(0.01
|
)
|
$
|
1.56
|
$
|
0.44
|
|||||||
Diluted weighted average common shares (in thousands)
|
267,558
|
264,636
|
265,487
|
268,704
|
||||||||||||
|
||||||||||||||||
Amounts attributable to Cablevision Systems Corporation stockholders:
|
||||||||||||||||
Income from continuing operations, net of income taxes
|
$
|
59,315
|
$
|
3,785
|
$
|
80,303
|
$
|
148,148
|
||||||||
Income (loss) from discontinued operations, net of income taxes
|
235,286
|
(7,576
|
)
|
333,516
|
(31,163
|
)
|
||||||||||
Net income (loss)
|
$
|
294,601
|
$
|
(3,791
|
)
|
$
|
413,819
|
$
|
116,985
|
(a) | Operating results of Bresnan Cable and Clearview have been reflected in discontinued operations for all periods presented. |
· | Depreciation and amortization (including impairments). This adjustment eliminates depreciation and amortization and impairments of long-lived assets in all periods. |
· | Restructuring credit (expense). This adjustment eliminates the expense or credit associated with restructuring activities related to the elimination of positions, facility realignment, asset impairments and other related activities in all periods. |
· | Share-based compensation benefit (expense). This adjustment eliminates the compensation benefit (expense) relating to stock options, stock appreciation rights, restricted stock, and restricted stock units granted under our employee stock plans and non-employee director plans in all periods. |
|
Nine Months Ended September 30,
|
|||||||
|
2013(b)
|
2012(b)
|
||||||
|
||||||||
|
||||||||
Net cash provided by operating activities(c)
|
$
|
813,593
|
$
|
890,763
|
||||
Add: excess tax benefit related to share-based awards
|
4,682
|
-
|
||||||
Less: capital expenditures(d)
|
(740,944
|
)
|
(742,232
|
)
|
||||
Consolidated free cash flow from continuing operations
|
$
|
77,331
|
$
|
148,531
|
(a) | See Non-GAAP Financial Measures on page 4 of this release for a definition and discussion of Free Cash Flow from Continuing Operations. |
(b) | Operating results of Bresnan Cable and Clearview have been reflected in discontinued operations for all periods presented. |
(c) | The level of net cash provided by operating activities will continue to depend on a number of variables in addition to our operating performance, including the amount and timing of our interest payments and other working capital items. |
(d) | See page 12 of this release for additional details relating to capital expenditures. |
|
Three Months Ended
September 30,
|
%
|
||||||||||
|
2013(a)
|
2012(a)
|
Change
|
|||||||||
|
||||||||||||
Cable Television
|
$
|
1,406,963
|
$
|
1,382,027
|
1.8
|
%
|
||||||
Lightpath
|
82,651
|
81,273
|
1.7
|
%
|
||||||||
Eliminations(b)
|
(4,100
|
)
|
(4,570
|
)
|
10.3
|
%
|
||||||
Telecommunications
|
1,485,514
|
1,458,730
|
1.8
|
%
|
||||||||
Other(c)
|
87,624
|
85,915
|
2.0
|
%
|
||||||||
Eliminations(d)
|
(5,301
|
)
|
(5,130
|
)
|
(3.3
|
)%
|
||||||
Total Cablevision
|
$
|
1,567,837
|
$
|
1,539,515
|
1.8
|
%
|
|
Nine Months Ended
September 30,
|
%
|
||||||||||
|
2013(a)
|
2012(a)
|
Change
|
|||||||||
|
||||||||||||
Cable Television
|
$
|
4,165,152
|
$
|
4,137,744
|
0.7
|
%
|
||||||
Lightpath
|
247,596
|
241,942
|
2.3
|
%
|
||||||||
Eliminations(b)
|
(13,365
|
)
|
(14,490
|
)
|
7.8
|
%
|
||||||
Telecommunications
|
4,399,383
|
4,365,196
|
0.8
|
%
|
||||||||
Other(c)
|
265,063
|
267,349
|
(0.9
|
)%
|
||||||||
Eliminations(d)
|
(15,762
|
)
|
(15,982
|
)
|
1.4
|
%
|
||||||
Total Cablevision
|
$
|
4,648,684
|
$
|
4,616,563
|
0.7
|
%
|
(a) | Net revenues of Bresnan Cable and Clearview have been reflected in discontinued operations for all periods presented as applicable. |
(b) | Represents intra-segment revenues. |
(c) | Represents revenues of Newsday, News 12 Networks, Cablevision Media Sales Corp., and certain other entities. |
(d) | Represents inter-segment revenues. |
|
Adjusted Operating
Cash Flow
|
Operating Income
(Loss)
|
||||||||||||||||||||||
|
Three Months Ended
September 30,
|
%
|
Three Months Ended
September 30,
|
%
|
||||||||||||||||||||
|
2013(a)
|
2012(a)
|
Change
|
2013(a)
|
2012(a)
|
Change
|
||||||||||||||||||
|
||||||||||||||||||||||||
Cable Television
|
$
|
447,674
|
$
|
473,005
|
(5.4
|
)%
|
$
|
255,840
|
$
|
275,718
|
(7.2
|
)%
|
||||||||||||
Lightpath
|
38,566
|
35,968
|
7.2
|
%
|
16,633
|
13,099
|
27.0
|
%
|
||||||||||||||||
Telecommunications
|
486,240
|
508,973
|
(4.5
|
)%
|
272,473
|
288,817
|
(5.7
|
)%
|
||||||||||||||||
Other(b)
|
(45,100
|
)
|
(49,647
|
)
|
9.2
|
%
|
(47,046
|
)
|
(71,154
|
)
|
33.9
|
%
|
||||||||||||
Total Cablevision
|
$
|
441,140
|
$
|
459,326
|
(4.0
|
)%
|
$
|
225,427
|
$
|
217,663
|
3.6
|
%
|
|
Adjusted Operating
Cash Flow
|
Operating Income
(Loss)
|
||||||||||||||||||||||
|
Nine Months Ended
September 30,
|
%
|
Nine Months Ended
September 30,
|
%
|
||||||||||||||||||||
|
2013(a)
|
2012(a)
|
Change
|
2013(a)
|
2012(a)
|
Change
|
||||||||||||||||||
|
||||||||||||||||||||||||
Cable Television
|
$
|
1,277,223
|
$
|
1,473,758
|
(13.3
|
)%
|
$
|
692,584
|
$
|
908,873
|
(23.8
|
)%
|
||||||||||||
Lightpath
|
109,186
|
103,147
|
5.9
|
%
|
42,141
|
34,717
|
21.4
|
%
|
||||||||||||||||
Telecommunications
|
1,386,409
|
1,576,905
|
(12.1
|
)%
|
734,725
|
943,590
|
(22.1
|
)%
|
||||||||||||||||
Other(b)
|
(158,267
|
)
|
(146,228
|
)
|
(8.2
|
)%
|
(204,148
|
)
|
(205,461
|
)
|
0.6
|
%
|
||||||||||||
Total Cablevision
|
$
|
1,228,142
|
$
|
1,430,677
|
(14.2
|
)%
|
$
|
530,577
|
$
|
738,129
|
(28.1
|
)%
|
(a) | Operating results of Bresnan Cable and Clearview have been reflected in discontinued operations for all periods presented as applicable. |
(b) | Includes unallocated corporate general and administrative costs and the operating results of Newsday, News 12 Networks, MSG Varsity, Cablevision Media Sales Corp., and certain other items. In addition, amounts include costs historically allocated to Bresnan Cable and Clearview that were not eliminated as a result of the Bresnan Cable and Clearview sales. |
CABLE TELEVISION
|
September 30,
2013
|
June 30,
2013(a)(b)
|
September 30,
2012(a)
|
|||||||||
|
||||||||||||
(in thousands)
|
||||||||||||
Total Customers(c)
|
3,195
|
3,224
|
3,273
|
|||||||||
Video Customers
|
2,831
|
2,868
|
2,943
|
|||||||||
High-Speed Data Customers
|
2,774
|
2,787
|
2,775
|
|||||||||
Voice Customers
|
2,272
|
2,290
|
2,275
|
|||||||||
|
||||||||||||
|
||||||||||||
Serviceable Passings (in thousands)(d)
|
5,013
|
5,004
|
4,964
|
|||||||||
|
||||||||||||
Penetration
|
||||||||||||
Total Customers to Serviceable Passings
|
63.7
|
%
|
64.4
|
%
|
65.9
|
%
|
||||||
Video Customers to Serviceable Passings
|
56.5
|
%
|
57.3
|
%
|
59.3
|
%
|
||||||
High-Speed Data Customers to Serviceable Passings
|
55.3
|
%
|
55.7
|
%
|
55.9
|
%
|
||||||
Voice Customers to Serviceable Passings
|
45.3
|
%
|
45.8
|
%
|
45.8
|
%
|
||||||
|
||||||||||||
|
||||||||||||
Revenues for the three months ended
(dollars in millions)
|
||||||||||||
|
||||||||||||
Video(e)
|
$
|
797
|
$
|
793
|
$
|
792
|
||||||
High-Speed Data
|
336
|
338
|
308
|
|||||||||
Voice
|
210
|
211
|
221
|
|||||||||
Advertising
|
40
|
37
|
37
|
|||||||||
Other(f)
|
24
|
23
|
24
|
|||||||||
Total Cable Television Revenue
|
$
|
1,407
|
$
|
1,402
|
$
|
1,382
|
||||||
|
||||||||||||
Average Monthly Cable Television Revenue per Customer (“RPC”)(g)
|
$
|
146.11
|
$
|
144.74
|
$
|
140.72
|
||||||
Average Monthly Cable Television Revenue per Video Customer (“RPS”)(h)
|
$
|
164.61
|
$
|
162.42
|
$
|
156.23
|
(a) | Operating results of Bresnan Cable have been reflected in discontinued operations for all periods presented as applicable. |
(b) | Amounts exclude customers located in the areas most severely impacted by Superstorm Sandy who we were unable to contact and those whose billing we decided to suspend temporarily during restoration of their homes. As of June 30, 2013 these customers represented approximately 2 thousand total customers, video, high-speed data and voice, respectively. |
(c) | Represents the number of households/businesses that receive at least one of the Company's services. |
(d) | Includes residential and commercial passings. |
(e) | Includes equipment rental, DVR, video-on-demand and pay-per-view revenue. |
(f) | Includes installation revenue, home shopping, advertising sales commissions and other product offerings. |
(g) | RPC is calculated by dividing average monthly cable television GAAP revenue for the quarter by the average number of total customers for the quarter. |
(h) | RPS is calculated by dividing average monthly cable television GAAP revenue for the quarter by the average number of video customers for the quarter. |
|
September 30, 2013
|
|||
|
||||
Cash and cash equivalents
|
$
|
824,298
|
||
|
||||
Credit facility debt
|
$
|
3,931,618
|
||
Senior notes and debentures
|
5,175,437
|
|||
Collateralized indebtedness
|
748,445
|
|||
Capital lease obligations and other
|
39,806
|
|||
Debt
|
$
|
9,895,306
|
Debt
|
$
|
9,895,306
|
||
Less: Collateralized indebtedness of unrestricted subsidiaries(a)
|
748,445
|
|||
Cash and cash equivalents
|
824,298
|
|||
Net debt
|
$
|
8,322,563
|
||
|
||||
|
Leverage Ratios(b)
|
|||
Consolidated net debt to AOCF leverage ratio(a)(c)
|
4.7
|
x
|
||
Restricted Group leverage ratio (Credit Facility Test)(d)(e)
|
3.2
|
x
|
||
CSC Holdings notes and debentures leverage ratio(e)(f)
|
3.5
|
x
|
||
Cablevision senior notes leverage ratio(e)(g)
|
5.6
|
x
|
(a) | Collateralized indebtedness is excluded from the leverage calculation because it is viewed as a forward sale of the stock of unaffiliated companies and the Company's only obligation at maturity is to deliver, at its option, the stock or its cash equivalent. |
(b) | Leverage ratios are based on face amount of outstanding debt. |
(c) | AOCF is annualized based on the third quarter 2013 results, as reported. |
(d) | Reflects the net debt to cash flow ratio as defined in the CSC Holdings’ credit facility debt agreement (which excludes approximately $2.9 billion of Cablevision’s senior notes and the debt and cash flows related to CSC Holdings’ unrestricted subsidiaries which are primarily comprised of Newsday). The annualized AOCF (as defined) used in the Restricted Group leverage ratio was $1.846 billion. |
(e) | Includes CSC Holdings’ guarantee of Newsday LLC’s $640 million senior secured credit facility. |
(f) | Reflects the debt to cash flow ratio applicable under CSC Holdings’ senior notes and debentures indentures (which excludes approximately $2.9 billion of Cablevision’s senior notes and the debt and cash flows related to CSC Holdings’ unrestricted subsidiaries which are primarily comprised of Newsday). The annualized AOCF (as defined) used in the CSC Holdings notes and debentures leverage ratio was $1.797 billion. |
(g) | Adjusts the debt to cash flow ratio as calculated under the CSC Holdings notes and debentures leverage ratio to include approximately $2.9 billion of Cablevision’s senior notes plus $754 million of Cablevision’s senior notes that were contributed to Newsday Holdings LLC. |
|
Three Months Ended
September 30,
|
|||||||
|
2013
|
2012(a)
|
||||||
CAPITAL EXPENDITURES
|
||||||||
|
||||||||
Consumer premise equipment
|
$
|
48,894
|
$
|
100,046
|
||||
Scalable infrastructure
|
111,398
|
81,635
|
||||||
Line extensions
|
7,451
|
7,149
|
||||||
Upgrade/rebuild
|
9,470
|
4,726
|
||||||
Support
|
32,011
|
53,904
|
||||||
Total Cable Television
|
209,224
|
247,460
|
||||||
Lightpath
|
29,211
|
21,704
|
||||||
Total Telecommunications
|
238,435
|
269,164
|
||||||
Other(b)
|
6,659
|
8,645
|
||||||
Total Cablevision
|
$
|
245,094
|
$
|
277,809
|
|
Nine Months Ended
September 30,
|
|||||||
|
2013(a)
|
2012(a)
|
||||||
CAPITAL EXPENDITURES
|
||||||||
|
||||||||
Consumer premise equipment
|
$
|
210,981
|
$
|
234,961
|
||||
Scalable infrastructure
|
242,579
|
239,245
|
||||||
Line extensions
|
21,401
|
23,229
|
||||||
Upgrade/rebuild
|
26,467
|
13,824
|
||||||
Support
|
129,163
|
128,374
|
||||||
Total Cable Television
|
630,591
|
639,633
|
||||||
Lightpath
|
81,949
|
70,579
|
||||||
Total Telecommunications
|
712,540
|
710,212
|
||||||
Other(b)
|
28,404
|
32,020
|
||||||
Total Cablevision
|
$
|
740,944
|
$
|
742,232
|
(a) | Capital expenditures for Bresnan Cable and Clearview have been reflected in discontinued operations. |
(b) | Other primarily includes Newsday, News 12 Networks, MSG Varsity, Cablevision Media Sales Corporation and Corporate. |