November 2, 2011

Comcast Reports 3rd Quarter 2011 Results

Strong Financial and Operating Momentum

Consolidated Revenue Increased 51.1%, Operating Cash Flow Increased 27.8% and Operating Income Increased 35.1%

Dividends and Share Repurchases Totaled $909 Million

PHILADELPHIA--(BUSINESS WIRE)-- Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported results for the quarter ended September 30, 2011.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, "I am pleased to report strong performance across key financial, operational and product areas. Cable had an outstanding quarter, led by continuing strength in high-speed Internet and business services. In addition, this marks the fourth consecutive quarter of improving customer metrics, including increased year-over-year high-speed Internet customer additions. We are driving product leadership and innovation and making significant progress in delivering improved service experiences for our customers. NBCUniversal's results underscore the strength of our core cable networks business, as well as terrific momentum at the theme parks. Our goal for NBCUniversal is to improve and build brands, and to enhance long-term value. Overall, this quarter continued our momentum toward a successful integration."

       
($ in millions)

3rd Quarter

Year to Date

Consolidated Results

2010

 

2011

 

Growth

2010

 

2011*

 

Growth

 
Revenue $9,489 $14,339 51.1% $28,216 $40,800 44.6%
Operating Cash Flow (OCF) $3,578 $4,574 27.8% $10,880 $13,441 23.5%
Operating Income $1,954 $2,641 35.1% $5,967 $7,803 30.8%
Earnings per Share $0.31 $0.33 6.5% $0.93 $1.03 10.8%
Free Cash Flow $1,025 $1,392 35.8% $4,267 $5,133 20.3%
*Year to date 2011 includes 8 months of NBCUniversal results.
               
($ in millions)

3rd Quarter

Year to Date

Consolidated Pro Forma Results**

2010

2011

Growth

2010

2011

Growth

 
Revenue $13,670 $14,339 4.9% $40,453 $42,619 5.4%
Operating Cash Flow (OCF) $4,433 $4,574 3.2% $12,879 $13,810 7.2%
OCF*** (excluding Olympics and acquisition-related accounting revisions and costs) $4,433 $4,656 5.0% $13,102 $14,117 7.7%
** 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. See Table 5 for additional details.
*** See Table 6.

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

Revenue increased 51.1% in the third quarter of 2011 to $14.3 billion, while Operating Cash Flow increased 27.8% to $4.6 billion and Operating Income increased 35.1% to $2.6 billion, primarily reflecting strong Cable Communications results, the acquisition of NBCUniversal in January and the consolidation of the Universal Orlando theme parks.

For the nine months ended September 30, 2011, revenue increased 44.6% to $40.8 billion, while operating cash flow increased 23.5% to $13.4 billion and operating income increased 30.8% to $7.8 billion.

Earnings per Share1 (EPS) for the third quarter of 2011 was $0.33, a 6.5% increase from the $0.31 reported in the third quarter of 2010. Excluding NBCUniversal transaction and related costs, EPS increased 3.1% (see Table 4). Third quarter EPS was negatively impacted by higher interest expense and taxes, as well as a $256 million year-over-year decline in investment income. This decline reflects a $147 million ($0.03 per share after tax) investment loss in third quarter 2011, compared to a $109 million ($0.02 per share after tax) investment gain in third quarter 2010, driven primarily by noncash mark-to-market adjustments on our investment portfolio.

EPS for the nine months ended September 30, 2011 was $1.03, a 10.8% increase from the $0.93 reported in the prior year. Excluding NBCUniversal transaction and related costs and a $137 million noncash, non-recurring income tax charge resulting from a state tax law change during the second quarter of 2011, EPS for the nine months ended September 30, 2011 increased 14.6% to $1.10 compared to $0.96 in 2010 (see Table 4).

Free Cash Flow (excluding any impact from the Economic Stimulus packages) increased 35.8% to $1.4 billion in the third quarter of 2011 compared to $1.0 billion in last year's third quarter. The increase in free cash flow primarily reflects growth in consolidated operating cash flow, partially offset by an increase in working capital. Free cash flow for the nine months ended September 30, 2011 increased 20.3% to $5.1 billion compared to $4.3 billion in 2010.

       
($ in millions)

3rd Quarter

Year to Date

Free Cash Flow

2010

 

2011

 

Growth

2010

 

2011*

 

Growth

Operating Cash Flow $3,578 $4,574 27.8% $10,880 $13,441 23.5%
Capital Expenditures (1,366) (1,408) 3.0% (3,429) (3,785) 10.4%
Cash Paid for Capitalized Software and Other Intangible Assets (135) (209) 54.8% (372) (505) 35.8%
Cash Interest Expense (661) (612) (7.4%) (1,630) (1,809) 11.0%
Cash Taxes (668) (596) (10.8%) (1,794) (1,166) (35.0%)
Changes in Operating Assets and Liabilities 60 (300) NM (10) (721) NM
Noncash Share-Based Compensation 73 86 17.8% 226 260 15.0%
Proceeds from Investments and Distributions to Noncontrolling Interests 18 (3) NM 63 (35) NM
Adjustments for Nonoperating Items 37   5   NM 65   (16)   NM
Free Cash Flow (Incl. Economic Stimulus Packages) $936 $1,537 64.2% $3,999 $5,664 41.6%
Economic Stimulus Packages 89   (145)   NM 268   (531)   NM
Free Cash Flow $1,025 $1,392 35.8% $4,267 $5,133 20.3%
* Includes 8 months of NBCUniversal results.
 

Note: The definition of Free Cash Flow excludes any impact from the 2008-2011 Economic Stimulus packages. These amounts have been excluded from Free Cash Flow to provide an appropriate comparison. NM=comparison not meaningful.

Share Repurchases and Dividends. During the third quarter of 2011, Comcast repurchased 27.5 million of its common shares for $600 million. Year to date, Comcast has repurchased 73.4 million of its common shares for $1.65 billion. As of September 30, 2011, Comcast had approximately $491 million of availability remaining under its share repurchase authorization. In addition, during the third quarter of 2011, Comcast paid dividends totaling $309 million.

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).

Consolidated Pro Forma Revenue increased 4.9% in the third quarter of 2011 to $14.3 billion compared to $13.7 billion in the third quarter of 2010. Consolidated Pro Forma Operating Cash Flow increased 3.2% to $4.6 billion compared to $4.4 billion in last year's third quarter. Included in pro forma operating cash flow for the third quarter of 2011 are acquisition-related accounting revisions and costs totaling $82 million. Excluding these costs, pro forma consolidated operating cash flow increased 5.0% (see Table 6).

For the nine months ended September 30, 2011, consolidated pro forma revenue increased 5.4% to $42.6 billion compared to $40.5 billion in 2010. Excluding revenue generated by the 2010 Vancouver Olympics, pro forma revenue increased 7.4%. Consolidated pro forma operating cash flow increased 7.2% to $13.8 billion compared to $12.9 billion in the first nine months of 2010. Excluding the Olympics in 2010 and acquisition-related accounting revisions and costs, operating cash flow increased 7.7% (see Table 6).

Cable Communications

Pro forma Cable Communications ("Cable") results include video, high-speed internet, voice, advertising and business services operations and the businesses of Comcast Interactive Media that were not contributed to NBCUniversal. Pro forma Cable results exclude the regional sports networks, which were contributed to NBCUniversal.

       
($ in millions) (pro forma)

3rd Quarter

Year to Date

2010

 

2011

 

Growth

2010

 

2011

 

Growth

Cable Communications Revenue
Video $4,839 $4,892 1.1% $14,525 $14,724 1.4%
High-Speed Internet 2,009 2,205 9.8% 5,926 6,497 9.6%
Voice 829 883 6.3% 2,458 2,621 6.6%
Advertising 512 492 (4.0%) 1,418 1,459 2.9%
Business Services 334 464 39.4% 903 1,293 43.3%
Other 362   395   8.6% 1,083   1,162   7.3%
Cable Communications Revenue $8,885 $9,331 5.0% $26,313 $27,756 5.5%
 
Cable Communications OCF $3,479 $3,714 6.7% $10,599 $11,349 7.1%
OCF Margin 39.2% 39.8% 40.3% 40.9%
 
Cable Communications Capital Expenditures $1,317 $1,254 (4.9%) $3,349 $3,488 4.1%

Percent of Cable Communications Revenue

14.8%

13.4%

 

12.7%

12.6%

 

 

Revenue. For the third quarter of 2011, Cable revenue increased 5.0% to $9.3 billion compared to $8.9 billion in the third quarter of 2010. This increase was driven by a 9.8% increase in high-speed internet revenue and a 39.4% increase in business services revenue. Advertising revenue decreased 4.0%, reflecting lower political advertising in the third quarter of 2011. Monthly average total revenue per video customer increased 8.0% to $138.58, 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, 2011, Cable revenue increased 5.5% to $27.8 billion compared to $26.3 billion in 2010.

Operating Cash Flow. For the third quarter of 2011, Cable operating cash flow increased 6.7% to $3.7 billion compared to $3.5 billion in last year's third quarter, reflecting continued operational efficiencies, partially offset by increases in video programming and marketing expenses. This quarter's operating cash flow margin was 39.8% compared to 39.2% in the third quarter of 2010.

For the nine months ended September 30, 2011, Cable operating cash flow increased 7.1% to $11.3 billion compared to $10.6 billion in 2010. Year to date operating cash flow margin was 40.9% compared to 40.3% in 2010.

Capital Expenditures. For the third quarter of 2011, Cable capital expenditures decreased 4.9% to $1.3 billion, reflecting efficiencies partially offset by continuing investments in network infrastructure and the expansion in business services. Cable capital expenditures equaled 13.4% of Cable revenue in the third quarter of 2011.

For the nine months ended September 30, 2011, Cable capital expenditures increased 4.1% to $3.5 billion, representing 12.6% of Cable revenue.

Customers. In the third quarter, combined video, high-speed internet and voice customers increased by 229,000, a 13.4% increase compared to third quarter 2010 net additions. For the nine months ended September 30, 2011, combined video, high-speed internet and voice customers increased by 966,000, a 10.4% increase compared to net additions in the first nine months of 2010. As of September 30, 2011, video, high-speed internet and voice customers totaled 49.4 million, an increase of 1.4 million or 2.9% in the past twelve months.

       
(in thousands)

Customers

Net Adds

3Q10

 

3Q11

3Q10

 

3Q11

 

YTD10

 

YTD11

Video Customers 22,937 22,360 (275) (165) (622) (443)
High-Speed Internet Customers 16,696 17,811 249 261 766 823
Voice Customers 8,353   9,196 228   133 731   586
Combined Video, HSI and Voice Customers 47,987 49,367 202 229 875 966
 

NBCUniversal

Pro forma NBCUniversal results include national cable programming networks, the NBC network and owned NBC affiliated local television stations, the Telemundo network and owned Telemundo affiliated local television stations, Universal Pictures filmed entertainment, the Universal theme parks, and other related assets. Comcast's national cable programming networks, regional sports networks (RSNs), Daily Candy and Fandango, which were contributed to NBCUniversal, are also included in these results.

Revenue for NBCUniversal increased 4.6% to $5.2 billion in the third quarter of 2011 compared to $5.0 billion in the third quarter of 2010. Operating Cash Flow decreased 9.3% to $951 million compared to $1.0 billion in last year's third quarter. Excluding acquisition-related accounting revisions and costs totaling $82 million in the third quarter of 2011, operating cash flow decreased 1.4% to $1.0 billion (see Table 6).

For the nine months ended September 30, 2011, NBCUniversal revenue of $15.4 billion increased 4.8% compared to $14.7 billion in 2010. Excluding the impact of the Vancouver Olympics in 2010, revenue increased 10.7%. Operating cash flow increased 6.3% to $2.7 billion compared to $2.6 billion in the first nine months of 2010. Excluding the Olympics in 2010 and acquisition-related accounting revisions and costs totaling $307 million, operating cash flow increased 8.8% to $3.0 billion (see Table 6).

       
($ in millions) (pro forma)

3rd Quarter

Year to Date

2010

 

2011

 

Growth

2010

 

2011

 

Growth

NBCUniversal Revenue
Cable Networks $1,872 $2,097 12.0% $5,584 $6,290 12.6%
Broadcast Television 1,468 1,511 2.9% 4,976 4,558 (8.4%)
Filmed Entertainment 1,190 1,096 (7.8%) 3,287 3,325 1.2%
Theme Parks 531 580 9.1% 1,122 1,491 32.9%
Headquarters, Other and Eliminations (87)   (84)   4.4% (286)   (278)   2.9%
NBCUniversal Revenue $4,974 $5,200 4.6% $14,683 $15,386 4.8%
 
NBCUniversal OCF
Cable Networks $767 $751 (2.0%) $2,366 $2,414 2.0%
Broadcast Television 70 (7) NM 63 203 NM
Filmed Entertainment 66 54 (16.9%) 58 (65) NM
Theme Parks 252 285 12.6% 399 644 61.2%
Headquarters, Other and Eliminations (107)   (132)   (24.2%) (331)   (479)   (44.8%)
NBCUniversal OCF $1,048 $951 (9.3%) $2,555 $2,717 6.3%
 
Adjusted NBCUniversal OCF*
Cable Networks $767 $831 8.5% $2,366 $2,544 7.6%
Broadcast Television 70 17 NM 286 283 (1.1%)
Filmed Entertainment 66 18 NM 58 (81) NM
Theme Parks 252 285 12.6% 399 644 61.2%
Headquarters, Other and Eliminations (107)   (118)   (11.1%) (331)   (366)   (11.0%)
Adjusted NBCUniversal OCF* $1,048 $1,033 (1.4%) $2,778 $3,024 8.8%
*Excludes the Olympics in 2010 and acquisition-related accounting revisions and costs in 2011.
NM=comparison not meaningful
 

Cable Networks

For the third quarter of 2011, revenue from the Cable Networks segment increased 12.0% to $2.1 billion compared to $1.9 billion in the third quarter of 2010, driven by a 10.2% increase in distribution revenue, a 9.5% increase in advertising revenue and a 37.2% increase in other revenue primarily due to increases in the licensing of owned content from the cable production studio. Operating cash flow decreased 2.0% to $751 million compared to $767 million in the third quarter of 2010, reflecting increased investment in original programming and acquisition-related accounting revisions totaling $80 million. Excluding these accounting revisions, Cable Networks operating cash flow increased 8.5% to $831 million (see Table 6).

For the nine months ended September 30, 2011, revenue from the Cable Networks segment increased 12.6% to $6.3 billion compared to $5.6 billion in 2010. Operating cash flow increased 2.0% to $2.4 billion. Excluding acquisition-related accounting revisions totaling $130 million, operating cash flow increased 7.6% to $2.5 billion (see Table 6).

Broadcast Television

For the third quarter of 2011, revenue from the Broadcast Television segment increased 2.9% to $1.5 billion, reflecting higher content licensing revenue, partially offset by ratings pressure at the NBC broadcast network and lower political advertising at NBC owned local stations. In the third quarter, the Broadcast Television segment generated an operating cash flow loss of $7 million compared to operating cash flow of $70 million in the third quarter of 2010, reflecting increased investment in primetime, news programming, and local stations, as well as acquisition-related accounting revisions totaling $24 million. Excluding these accounting revisions, third quarter 2011 Broadcast Television operating cash flow was $17 million compared to $70 million in last year's third quarter (see Table 6).

For the nine months ended September 30, 2011, revenue from the Broadcast Television segment decreased 8.4% to $4.6 billion compared to $5.0 billion in 2010 due to $782 million of revenue generated by the 2010 Vancouver Olympics. Excluding the impact of the Olympics, revenue increased 8.7%. Operating cash flow was $203 million compared to $63 million in the first nine months of 2010. Excluding the $223 million loss from the Olympics in 2010 and acquisition-related accounting revisions totaling $80 million, operating cash flow decreased 1.1% to $283 million (see Table 6).

Filmed Entertainment

For the third quarter of 2011, revenue from the Filmed Entertainment segment decreased 7.8% to $1.1 billion compared to $1.2 billion in the third quarter of 2010, driven by lower theatrical revenue compared to the prior year, partially offset by higher home entertainment revenue from Bridesmaids and the international release of Fast Five. Third quarter operating cash flow decreased 16.9% to $54 million compared to $66 million in the third quarter of 2010, reflecting lower revenue partially offset by favorable acquisition-related accounting adjustments totaling $36 million. Excluding these accounting revisions, third quarter 2011 operating cash flow was $18 million compared to $66 million in last year's third quarter (see Table 6).

For the nine months ended September 30, 2011, revenue from the Filmed Entertainment segment increased 1.2% to $3.3 billion and generated an operating cash flow loss of $65 million compared to operating cash flow of $58 million in the first nine months of 2010. Excluding favorable acquisition-related accounting revisions totaling $16 million, the Filmed Entertainment segment generated an operating cash flow loss of $81 million compared to operating cash flow of $58 million (see Table 6).

Theme Parks

On July 1, 2011, NBCUniversal completed the acquisition of the 50% interest in Universal Orlando that it did not previously own. As a result, Theme Parks segment revenue includes the results of Universal Hollywood, Universal Orlando and international licensing fees. Operating cash flow includes the results of Universal Hollywood and Universal Orlando.

For the third quarter of 2011, revenue from the Theme Parks segment increased 9.1% to $580 million compared to $531 million in the third quarter of 2010, reflecting strong performances at the Hollywood and Orlando parks. Third quarter operating cash flow increased 12.6% to $285 million compared to $252 million in the same period last year, driven by the strength of The Wizarding World of Harry PotterTM attraction in Orlando and the King KongTM attraction in Hollywood.

For the nine months ended September 30, 2011, revenue from the Theme Parks segment increased 32.9% to $1.5 billion compared to $1.1 billion in 2010. Operating cash flow increased 61.2% to $644 million compared to $399 million in the first nine months of 2010.

Headquarters, Other and Eliminations

NBCUniversal Headquarters, Other and Eliminations include overhead and eliminations between the NBCUniversal businesses. Also included in these expenses are non-recurring transaction-related costs during the third quarter of 2011 that totaled $14 million. For the nine months ended September 30, 2011, non-recurring transaction-related costs totaled $112 million.

Corporate, Other and Eliminations

Pro forma Corporate, Other and Eliminations includes corporate operations, Comcast-Spectacor and eliminations between Comcast's businesses. For the third quarter of 2011, Corporate, Other and Eliminations revenue was ($192) million compared to ($189) million in 2010, reflecting higher intersegment eliminations. The operating cash flow loss was $91 million compared to a loss of $94 million for the same time period in 2010, reflecting reduced corporate expenses.

For the nine months ended September 30, 2011, Corporate, Other and Eliminations revenue was ($523) million compared to ($543) million in 2010. The operating cash flow loss was $256 million compared to a loss of $275 million in the first nine months of 2010.

 
Notes:
1   Earnings per share amounts are presented on a diluted 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, November 2, 2011 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 12595426. A replay of the call will be available starting at 12:30 p.m. ET on November 2, 2011, on the Investor Relations website or by telephone. To access the telephone replay, which will be available until Wednesday, November 9, 2011 at midnight ET, please dial (800) 585-8367 and enter the conference ID number 12595426. To automatically receive Comcast financial news by email, please visit www.cmcsa.com or www.cmcsk.com and subscribe to email alerts.

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.

 
TABLE 1
Condensed Consolidated Statement of Income (Unaudited)
 
 
 
    Three Months Ended       Nine Months Ended
(in millions, except per share data) September 30, September 30,
2010     2011 2010     2011
Revenue $9,489 $14,339 $28,216 $40,800
 
Operating costs and expenses 5,911   9,765   17,336   27,359  
 
Operating cash flow 3,578 4,574 10,880 13,441
 
Depreciation expense 1,377 1,540 4,167 4,504
Amortization expense 247   393   746   1,134  
1,624   1,933   4,913   5,638  
Operating income 1,954 2,641 5,967 7,803
 
Other income (expense)
Interest expense (545 ) (637 ) (1,612 ) (1,863 )
Investment income (loss), net 109 (147 ) 210 3
Equity in net income (losses) of investees, net (40 ) (40 ) (98 ) (40 )
Other income (expense), net (24 ) (12 ) (69 ) (82 )
(500 ) (836 ) (1,569 ) (1,982 )
 
Income before income taxes 1,454 1,805 4,398 5,821
 
Income tax expense (584 ) (639 ) (1,763 ) (2,249 )
 
Net income from consolidated operations 870 1,166 2,635 3,572
 
Net (income) loss attributable to noncontrolling interests (3 ) (258 ) (18 ) (699 )
               
Net income attributable to Comcast Corporation $867   $908   $2,617   $2,873  
 
 
Diluted earnings per common share attributable to Comcast Corporation shareholders $0.31   $0.33   $0.93   $1.03  
 
 
Dividends declared per common share attributable to Comcast Corporation shareholders $0.0945   $0.1125   $0.2835   $0.3375  
 
 
 
Diluted weighted-average number of common shares 2,810   2,761   2,826   2,789  
 
 
TABLE 2
Condensed Consolidated Balance Sheet (Unaudited)
 
 
 
(in millions)       December 31,       September 30,
2010 2011
ASSETS
 
Current Assets
Cash and cash equivalents $5,984 $1,806
Receivables, net 1,855 4,096
Programming rights 122 1,055
Other current assets 925 1,625
Total current assets 8,886 8,582
 
Film and television costs 460 5,369
 
Investments 6,670 9,575
 
Property and equipment, net 23,515 27,441
 
Franchise rights 59,442 59,442
 
Goodwill 14,958 26,831
 
Other intangible assets, net 3,431 17,386
 
Other noncurrent assets, net 1,172 2,201
 
$118,534 $156,827
 
LIABILITIES AND EQUITY
 
Current Liabilities
Accounts payable and accrued expenses related to trade creditors $3,291 $5,455
Accrued participations and residuals - 1,247
Accrued expenses and other current liabilities 3,143 4,996
Current portion of long-term debt 1,800 2,448
Total current liabilities 8,234 14,146
 
Long-term debt, less current portion 29,615 38,522
 
Deferred income taxes 28,246 29,663
 
Other noncurrent liabilities 7,862 11,657
 
Redeemable noncontrolling interests 143 15,827
 
Equity
Comcast Corporation shareholders' equity 44,354 46,683
Noncontrolling interests 80 329
Total Equity 44,434 47,012
 
$118,534 $156,827
 
 
TABLE 3
Consolidated Statement of Cash Flows (Unaudited)
 
 
 
(in millions)     Nine Months Ended
September 30,
2010     2011
 
OPERATING ACTIVITIES
Net income from consolidated operations $2,635 $3,572
Adjustments to reconcile net income from consolidated operations to net cash provided by operating activities:
Depreciation and amortization 4,913 5,638
Amortization of film and television costs 99 4,769
Share-based compensation 226 260
Noncash interest expense (income), net 105 111
Equity in net (income) losses of investees, net 98 40
Net (gain) loss on investment activity and other (78 ) 325
Deferred income taxes (241 ) 770
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Change in receivables, net (145 ) 290
Change in film and television costs (90 ) (5,342 )
Change in accounts payable and accrued expenses related to trade creditors 57 (242 )
Change in other operating assets and liabilities 153   15  
 
Net cash provided by operating activities 7,732   10,206  
 
INVESTING ACTIVITIES
Capital expenditures (3,429 ) (3,785 )
Cash paid for intangible assets (372 ) (505 )
Acquisitions, net of cash acquired (183 ) (6,407 )
Proceeds from sales of investments 21 154
Purchases of investments (54 ) (85 )
Other 149   (33 )
 
Net cash provided by (used in) investing activities (3,868 ) (10,661 )
 
FINANCING ACTIVITIES
Proceeds from (repayments of) short-term borrowings, net - 1,642
Proceeds from borrowings 2,420 -
Repurchases and repayments of debt (649 ) (2,813 )
Repurchases and retirements of common stock (892 ) (1,650 )
Dividends paid (800 ) (881 )
Distributions to noncontrolling interests (48 ) (237 )
Other (24 ) 216  
 
Net cash provided by (used in) financing activities 7   (3,723 )
 
Increase (decrease) in cash and cash equivalents 3,871 (4,178 )
 
Cash and cash equivalents, beginning of period 671   5,984  
 
Cash and cash equivalents, end of period $4,542   $1,806  
 
 
TABLE 4
Supplemental Information
 
Alternate Presentation of Net Cash Provided by Operating Activities and Free Cash Flow (Unaudited)    
 
 
    Three Months Ended     Nine Months Ended  
September 30, September 30,
(in millions) 2010     2011 2010     2011
Operating income $1,954 $2,641 $5,967 $7,803
Depreciation and amortization 1,624   1,933   4,913   5,638  
Operating income before depreciation and amortization 3,578 4,574 10,880 13,441
Noncash share-based compensation expense 73 86 226 260
Changes in operating assets and liabilities 60   (300 ) (10 ) (721 )
Cash basis operating income 3,711 4,360 11,096 12,980
Payments of interest (661 ) (612 ) (1,630 ) (1,809 )
Payments of income taxes (668 ) (596 ) (1,794 ) (1,166 )
Proceeds from interest, dividends and other nonoperating items 18   98   60   201  
Net Cash Provided by Operating Activities $2,400   $3,250   $7,732   $10,206  
Capital expenditures (1,366 ) (1,408 ) (3,429 ) (3,785 )
Cash paid for capitalized software and other intangible assets (135 ) (209 ) (372 ) (505 )
Distributions to other non-controlling interests - (62 ) - (237 )
Nonoperating items 37   (34 ) 68   (15 )
Free cash flow (including Economic stimulus packages) $936 $1,537 $3,999 $5,664
Economic stimulus packages 89   (145 ) 268   (531 )
Total Consolidated Free Cash Flow $1,025   $1,392   $4,267   $5,133  
 
 

Reconciliation of EPS Excluding Unfavorable Income Tax Adjustments and NBCUniversal Transaction and Related Costs (Unaudited)

 
  Three Months Ended     Nine Months Ended
September 30, September 30,
           
2010 2011 2010 2011
(in millions, except per share data)
$  

EPS (1)

$  

EPS (1)

$  

EPS (1)

$  

EPS (1)

 
Net Income attributable to Comcast Corporation $867 $0.31 $908 $0.33 $2,617 $0.93 $2,873 $1.03
Growth % 4.7%

6.5%

 

9.8%

 

10.8%
 
Unfavorable Income Tax Adjustments (2) - - - - - - 137 0.05
Comcast Costs Related to the NBCUniversal Transaction, net of tax (3) 39 0.01 - - 92 0.03 51 0.02
NBCUniversal Transaction-Related Costs, net of tax(4) - - 4 0.00 - - 20 0.00
 
Net Income attributable to Comcast Corporation                                
(excluding Unfavorable Income Tax Adjustments and NBCUniversal Transaction and Related Costs) $906   $0.32   $912   $0.33   $2,709     $0.96 $3,081     $1.10
Growth % 0.7%

3.1%

 

13.7%

 

14.6%
 
(1) Based on diluted weighted-average number of common shares for the respective periods as presented in Table 1.
 
(2) 2011 Net Income attributable to Comcast Corporation includes an unfavorable tax adjustment due to new state tax legislation of $137 million in total.
 
(3) 3rd quarter 2010 Net Income attributable to Comcast Corporation includes $21 million of operating costs and expenses, $2 million of interest expense and $43 million of other expense ($66 million in total, $39 million net of tax) related to the NBCUniversal transaction. 2010 year to date Net Income attributable to Comcast Corporation includes $57 million of operating costs and expenses, $6 million of interest expense and $91 million of other expense ($154 million in total, $92 million net of tax) related to the NBCUniversal transaction. 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.
 
(4) 1st quarter 2011 Net Income attributable to Comcast Corporation includes $44 million in transaction-related costs, $14 million net of tax and non-controlling interest. 2nd quarter 2011 Net Income attributable to Comcast Corporation includes $6 million in transaction-related costs, $2 million net of tax and non-controlling interest. 3rd quarter 2011 Net Income attributable to Comcast Corporation includes $14 million in transaction-related costs, $4 million net of tax and non-controlling interest.
 

Note: Minor differences may exist due to rounding.

 
 
TABLE 5
Reconciliation of GAAP to Pro Forma(1) Financial Information (Unaudited)
 
 
 

GAAP

 

NBCUniversal

 

Corporate, Other and

Eliminations

 

Total

           
(in millions)

Cable

Communications

Total

NBCU

Corporate,

Other and

Eliminations

Total

Pro Forma

Adjustments(1)

Pro Forma

NBCU

Pro Forma

Adjustments(1)

Pro Forma

Corporate,

Other and

Eliminations

Pro Forma

Adjustments(1)

Total

Pro Forma

Three Months Ended September 30, 2010

 
Revenue $8,885 $670 ($66 ) $9,489 $4,304 $4,974 ($123 ) ($189 ) $4,181 $13,670
 
Operating Costs and Expenses 5,406 455   50   5,911   3,471   3,926   (145 ) (95 ) 3,326 9,237
 
Operating Cash Flow $3,479 $215   ($116 ) $3,578   $833   $1,048   $22   ($94 ) $855 $4,433
 
 

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
 
                                                 
 
 

Nine Months Ended September 30, 2010

 
Revenue $26,313 $2,025 ($122 ) $28,216 $12,658 $14,683 ($421 ) ($543 ) $12,237 $40,453
 
Operating Costs and Expenses 15,714 1,412   210   17,336   10,716   12,128   (478 ) (268 ) 10,238 27,574
 
Operating Cash Flow $10,599 $613   ($332 ) $10,880   $1,942   $2,555   $57   ($275 ) $1,999 $12,879
 

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
 
 
 
 
(1) Pro Forma information is presented as if the NBCUniversal transaction and the acquisition of the remaining 50% interest of UCDP 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 UCDP since January 1, 2010, nor of our future results.
 
Reconciliation of GAAP to Pro Forma(1) NBCUniversal Segment Financial Information (Unaudited)
 
2010   2011
Pro Forma Combined
Actual(2)   Pro Forma(3)  

Pro Forma

Combined(4)

Actual(2)   Pro Forma(3)  

Pro Forma

Combined(4)

Increase/(Decrease)
 
   

Comcast

Content

Business

 

NBCUniversal

Businesses

 

Nine Months

Ended

September 30

Nine Months

Ended

September 30

 

NBCUniversal

Businesses

 

Nine Months

Ended

September 30

$   %
Revenue
Cable Networks $2,025 $3,559 $5,584 $5,902 $388 $6,290 $706 12.6 %
Broadcast Television - 4,976 4,976 4,094 464 4,558 (418 ) (8.4 %)
Filmed Entertainment - 3,287 3,287 2,972 353 3,325 38 1.2 %
Theme Parks - 1,122 1,122 1,376 115 1,491 369 32.9 %
Headquarters, other and eliminations   -   (286 )   (286 ) (822 )   544     (278 ) 8     2.9 %
Total Revenue   $2,025   $12,658     $14,683   $13,522     $1,864     $15,386   $703     4.8 %
 
Operating Cash Flow
Cable Networks $613 $1,753 $2,366 $2,262 $152 $2,414 $48 2.0 %
Broadcast Television - 63 63 218 (15 ) 203 140 222.6 %
Filmed Entertainment - 58 58 (62 ) (3 ) (65 ) (123 ) (212.0 %)
Theme Parks - 399 399 607 37 644 245 61.2 %
Headquarters, other and eliminations   -   (331 )   (331 ) (615 )   136     (479 ) (148 )   (44.8 %)
Total Operating Cash Flow   $613   $1,942     $2,555   $2,410     $307     $2,717   $162     6.3 %
 
 
(1) Pro Forma information is presented as if the NBCUniversal transaction and the acquisition of the remaining 50% interest of UCDP 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 UCDP since January 1, 2010, nor of our future results.
 
(2) Actual amounts for our reportable segments include the results of operations for the Comcast Content Business for the three and nine months ended September 30, 2011 and 2010, and the results of operations for the NBCUniversal acquired businesses and UCDP for the three months ended September 30, 2011 and for the period January 29, 2011 through September 30, 2011. Headquarters, other and eliminations includes the elimination of the results of operations for UCDP for the period January 29, 2011 through June 30, 2011 in order to reconcile to our condensed consolidated financial statements because UCDP was recorded as an equity method investment during that period.
 
(3) Pro forma amounts include the results of operations for the NBCUniversal acquired businesses and UCDP for the period January 1, 2011 through January 28, 2011 and for the three and nine months ended September 30, 2010. These amounts also include pro forma adjustments as if the NBCUniversal and UCDP transactions had occurred on January 1, 2010, including the effects of acquisition accounting and the elimination of operating costs and expenses directly related to the transactions, but do 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 the results would have been had we operated the businesses since January 1, 2010.
 
(4) Pro forma combined amounts represent our pro forma results of operations as if the NBCUniversal and UCDP transactions had occurred on January 1, 2010 but are not necessarily indicative of what the results would have been had we operated the businesses since January 1, 2010.
 
 
TABLE 6
Reconciliation of Consolidated Pro Forma Revenue and Operating Cash Flow Excluding 2010 Olympics, Acquisition Accounting Revisions and NBCUniversal Transaction-Related Costs (Unaudited)
           
Three Months Ended Nine Months Ended
September 30, September 30,
 
(in millions) 2010 2011 Growth % 2010 2011 Growth %
 
Revenue $13,670 $14,339 4.9 % $40,453 $42,619 5.4 %
 
2010 Olympics - -   (782 ) -  
 
Revenue excluding 2010 Olympics $13,670 $14,339   4.9 % $39,671   $42,619   7.4 %
 
 
2010 2011 Growth % 2010 2011 Growth %
 
Operating Cash Flow $4,433 $4,574 3.2 % $12,879 $13,810 7.2 %
 
2010 Olympics - - 223 -
Acquisition Accounting Revisions (1) - 68 - 195
NBCUniversal Transaction-Related Costs(2) - 14   -   112  
 
Operating Cash Flow excluding 2010 Olympics, Acquisition Accounting Revisions and NBCUniversal Transaction-Related Costs $4,433 $4,656   5.0 % $13,102   $14,117   7.7 %
 
Reconciliation of Consolidated Pro Forma NBCUniversal Revenue and Operating Cash Flow Excluding 2010 Olympics, Acquisition Accounting Revisions and NBCUniversal Transaction-Related Costs (Unaudited)
 
Three Months Ended Nine Months Ended
September 30, September 30,
 
(in millions) 2010 2011 Growth % 2010 2011 Growth %
 
Revenue $4,974 $5,200 4.6 % $14,683 $15,386 4.8 %
 
2010 Olympics - -   (782 ) -  
 
Revenue excluding 2010 Olympics $4,974 $5,200   4.6 % $13,901   $15,386   10.7 %
 
 
2010 2011 Growth % 2010 2011 Growth %
 
Operating Cash Flow $1,048 $951 (9.3 %) $2,555 $2,717 6.3 %
 
2010 Olympics - - 223 -
Acquisition Accounting Revisions (1) - 68 - 195
NBCUniversal Transaction-Related Costs(2) - 14   -   112  
 
Operating Cash Flow excluding 2010 Olympics, Acquisition Accounting Revisions and NBCUniversal Transaction-Related Costs $1,048 $1,033   (1.4 %) $2,778   $3,024   8.8 %
 
Reconciliation of Pro Forma Cable Networks Operating Cash Flow Excluding Acquisition Accounting Revisions (Unaudited)
 
Three Months Ended Nine Months Ended
September 30, September 30,
 
(in millions) 2010 2011 Growth % 2010 2011 Growth %
 
Operating Cash Flow $767 $751 (2.0 %) $2,366 $2,414 2.0 %
 
Acquisition Accounting Revisions (1) - 80   -   130  
 
Operating Cash Flow excluding Acquisition Accounting Revisions $767 $831   8.5 % $2,366   $2,544   7.6 %
 
Reconciliation of Pro Forma Broadcast Television Revenue and Operating Cash Flow Excluding 2010 Olympics and Acquisition Accounting Revisions (Unaudited)
 
Three Months Ended Nine Months Ended
September 30, September 30,
 
(in millions) 2010 2011 Growth % 2010 2011 Growth %
 
Revenue $1,468 $1,511 2.9 % $4,976 $4,558 (8.4 %)
 
2010 Olympics - -   (782 ) -  
 
Revenue excluding 2010 Olympics $1,468 $1,511   2.9 % $4,194   $4,558   8.7 %
 
 
2010 2011 Growth % 2010 2011 Growth %
 
Operating Cash Flow $70 ($7 ) (109.6 %) $63 $203 222.6 %
 
2010 Olympics - - 223 -
Acquisition Accounting Revisions (1) - 24   -   80  
 
Operating Cash Flow excluding 2010 Olympics and Acquisition Accounting Revisions $70 $17   (75.5 %) $286   $283   (1.1 %)
 
Reconciliation of Pro Forma Filmed Entertainment Operating Cash Flow Excluding Acquisition Accounting Revisions (Unaudited)
 
Three Months Ended Nine Months Ended
September 30, September 30,
 
(in millions) 2010 2011 Growth % 2010 2011 Growth %
 
Operating Cash Flow $66 $54 (16.9 %) $58 ($65 ) (212.0 %)
 
Acquisition Accounting Revisions (1) - (36 ) -   (16 )
 
Operating Cash Flow excluding Acquisition Accounting Revisions $66 $18   (72.2 %) $58   ($81 ) (239.7 %)
 
 
(1) Acquisition accounting revisions include the effect of changes in estimates related to the acquisition of NBCUniversal.
(2) NBCUniversal transaction-related costs are associated with severance and other related compensation charges.
 

Note: Minor differences may exist due to rounding.

 

Comcast
Investor Contacts:
Marlene S. Dooner, 215-286-7392
Jane B. Kearns, 215-286-4794
Michael A. Kelman, 215-286-3035
or
Press Contacts:
D'Arcy Rudnay, 215-286-8582
John Demming, 215-286-8011

Source: Comcast Corporation

News Provided by Acquire Media


Close window | Back to top