Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported results for the quarter ended September 30, 2015.
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Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “I’m pleased to report that our businesses generated outstanding revenue and operating cash flow growth for the third quarter of 2015. At Cable Communications, overall customer relationships increased 156,000, a 90% improvement compared to last year, video subscriber results were the best for a third quarter in 9 years, high-speed Internet subscriber results were the best for a third quarter in 6 years, and churn across all product categories continues to improve. NBCUniversal also delivered terrific results, including another record-breaking box office quarter driven by Minions and Jurassic World, the highest summer attendance ever at our theme parks, and maintaining the #1 broadcast network ranking for the 5th summer in a row. These outstanding results from our unique portfolio of complementary businesses underscore our confidence that we are well positioned to compete, continue our strong performance and drive shareholder value.”
Consolidated Financial Results | ||||||||||||||
| 3rd Quarter | Year to Date | |||||||||||||
| ($ in millions) | 2014 | 2015 | Growth | 2014 | 2015 | Growth | ||||||||
| Revenue | $16,791 | $18,669 | 11.2% | $51,043 | $55,265 | 8.3% | ||||||||
| Excluding Olympics and Super Bowl | $49,940 | $54,889 | 9.9% | |||||||||||
| Operating Cash Flow1 | $5,704 | $6,184 | 8.4% | $17,046 | $18,406 | 8.0% | ||||||||
| Excluding Transaction-Related Costs | $5,781 | $6,184 | 7.0% | $17,184 | $18,584 | 8.2% | ||||||||
| Operating Income | $3,745 | $4,001 | 6.9% | $11,117 | $11,996 | 7.9% | ||||||||
| Earnings per Share2 | $0.99 | $0.80 | (19.2%) | $2.46 | $2.45 | (0.4%) | ||||||||
| Excluding Adjustments | $0.73 | $0.80 | 9.6% | $2.17 | $2.43 | 12.0% | ||||||||
| Free Cash Flow3 | $2,494 | $2,663 | 6.8% | $6,473 | $7,347 | 13.5% | ||||||||
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 Revenue for the third quarter of 2015 increased 11.2% to $18.7 billion. Consolidated Operating Cash Flow increased 8.4% to $6.2 billion. Excluding $77 million of Time Warner Cable and Charter transaction-related costs in the third quarter of 2014, consolidated operating cash flow increased 7.0% (see Table 5). Consolidated Operating Income increased 6.9% to $4.0 billion.
For the nine months ended September 30, 2015, consolidated revenue increased 8.3% to $55.3 billion. Consolidated operating cash flow increased 8.0% to $18.4 billion. Excluding $178 million of transaction-related costs in the first nine months of 2015 and $138 million in the first nine months of 2014, consolidated operating cash flow increased 8.2% (see Table 5). Consolidated operating income increased 7.9% to $12.0 billion.
Earnings per Share (EPS) for the third quarter of 2015 was $0.80, a 19.2% decrease from the $0.99 reported in the third quarter of 2014, which included a $724 million, or $0.28, benefit due to favorable income tax adjustments. Excluding income tax adjustments and transaction-related costs in the third quarter of 2014, EPS increased 9.6% to $0.80 (see Table 4).
EPS for the nine months ended September 30, 2015 was $2.45, a 0.4% decrease from the $2.46 reported in the prior year. Excluding adjustments in the first nine months of 2015 and 2014, EPS increased 12.0% to $2.43 (see Table 4).
Capital Expenditures increased 11.0% to $2.2 billion in the third quarter of 2015 compared to the third quarter of 2014. Cable Communications’ capital expenditures increased 12.6% to $1.9 billion in the third quarter of 2015, primarily reflecting increased spending on customer premise equipment related to the deployment of the X1 platform and wireless gateways and our ongoing investment to expand business services. Cable capital expenditures represented 15.8% of Cable revenue in the third quarter of 2015 compared to 14.9% in last year’s third quarter. NBCUniversal’s capital expenditures decreased 2.2% to $289 million in the third quarter of 2015.
For the nine months ended September 30, 2015, capital expenditures increased 12.8% to $5.9 billion compared to the prior year. Cable Communications capital expenditures increased $690 million, or 16.1%, to $5.0 billion and represented 14.2% of Cable revenue compared to 13.0% in 2014. NBCUniversal’s capital expenditures decreased $55 million, or 6.2%, to $829 million for the first nine months of 2015.
Free Cash Flow increased 6.8% to $2.7 billion in the third quarter of 2015 compared to $2.5 billion in the third quarter of 2014, reflecting growth in consolidated operating cash flow, partially offset by higher capital expenditures and cash taxes. Free cash flow for the nine months ended September 30, 2015 increased 13.5% to $7.3 billion compared to $6.5 billion in 2014.
| 3rd Quarter | Year to Date | |||||||||||||
| ($ in millions) | 2014 | 2015 | Growth | 2014 | 2015 | Growth | ||||||||
| Operating Cash Flow | $5,704 | $6,184 | 8.4% | $17,046 | $18,406 | 8.0% | ||||||||
| Capital Expenditures | (1,950) | (2,165) | 11.0% | (5,196) | (5,862) | 12.8% | ||||||||
| Cash Paid for Capitalized Software and Other Intangible Assets | (258) | (316) | 22.5% | (735) | (916) | 24.6% | ||||||||
| Cash Interest Expense | (656) | (673) | 2.6% | (1,820) | (1,914) | 5.2% | ||||||||
| Cash Taxes on Operating Items (Including Economic Stimulus Packages) | (1,020) | (1,116) | 9.4% | (3,179) | (3,405) | 7.1% | ||||||||
| Changes in Operating Assets and Liabilities | 412 | 412 | 0.0% | (493) | 108 | NM | ||||||||
| Noncash Share-Based Compensation | 120 | 136 | 13.3% | 386 | 430 | 11.4% | ||||||||
Distributions to Noncontrolling Interests and Dividends for Redeemable Subsidiary Preferred Stock | (53) | (64) | 20.8% | (170) | (178) | 4.7% | ||||||||
| Other | 33 | 98 | 197.0% | 151 | 177 | 17.2% | ||||||||
| Free Cash Flow (Including Economic Stimulus Packages) | $2,332 | $2,496 | 7.0% | $5,990 | $6,846 | 14.3% | ||||||||
| Economic Stimulus Packages | 162 | 167 | 3.1% | 483 | 501 | 3.7% | ||||||||
| Free Cash Flow3 | $2,494 | $2,663 | 6.8% | $6,473 | $7,347 | 13.5% | ||||||||
| NM=comparison not meaningful. | ||||||||||||||
Dividends and Share Repurchases. During the third quarter of 2015, Comcast paid dividends totaling $623 million and repurchased 37.1 million of its common shares for $2.2 billion. In the first nine months of 2015, Comcast has repurchased 99.6 million of its common shares for $5.8 billion. Comcast continues to plan to repurchase a total of $6.75 billion of its common shares during 2015.
Cable Communications | ||||||||||||||
| 3rd Quarter | Year to Date | |||||||||||||
| ($ in millions) | 2014 | 2015 | Growth | 2014 | 2015 | Growth | ||||||||
| Cable Communications Revenue | ||||||||||||||
| Video | $5,179 | $5,348 | 3.3% | $15,596 | $16,110 | 3.3% | ||||||||
| High-Speed Internet | 2,840 | 3,129 | 10.2% | 8,409 | 9,274 | 10.3% | ||||||||
| Voice | 913 | 900 | (1.4%) | 2,755 | 2,709 | (1.7%) | ||||||||
| Business Services | 1,011 | 1,208 | 19.5% | 2,893 | 3,483 | 20.4% | ||||||||
| Advertising | 596 | 593 | (0.2%) | 1,690 | 1,679 | (0.6%) | ||||||||
| Other | 502 | 562 | 11.8% | 1,484 | 1,644 | 10.7% | ||||||||
| Cable Communications Revenue | $11,041 | $11,740 | 6.3% | $32,827 | $34,899 | 6.3% | ||||||||
| Cable Communications Operating Cash Flow | $4,464 | $4,748 | 6.4% | $13,428 | $14,220 | 5.9% | ||||||||
| Operating Cash Flow Margin | 40.4% | 40.4% | 40.9% | 40.7% | ||||||||||
| Cable Communications Capital Expenditures | $1,644 | $1,851 | 12.6% | $4,282 | $4,972 | 16.1% | ||||||||
| Percent of Cable Communications Revenue | 14.9% | 15.8% | 13.0% | 14.2% | ||||||||||
Revenue for Cable Communications increased 6.3% to $11.7 billion in the third quarter of 2015 compared to $11.0 billion in the third quarter of 2014, driven by increases of 10.2% in high-speed Internet, 19.5% in business services and 3.3% in video. The increase in Cable revenue reflects increased customer relationships (see below), customers receiving higher levels of service and customers taking additional services, as well as rate adjustments.
For the nine months ended September 30, 2015, Cable revenue increased 6.3% to $34.9 billion compared to $32.8 billion in 2014.
Customer Relationships increased by 156,000 to 27.4 millionin the third quarter of 2015, a 74,000 or 90.2% improvement compared to the third quarter of 2014, primarily driven by increases in double product relationships. Video net losses improved 40.6% year-over-year to 48,000 and were the best result for a third quarter in nine years. High-speed Internet customer net additions of 320,000 improved versus last year and were the strongest for a third quarter in six years, while voice customers grew by 17,000.
| Customers | Net Additions | |||||||||
| (in thousands) | 3Q14 | 3Q15 | 3Q14 | 3Q15 | ||||||
| Video Customers | 22,376 | 22,258 | (81) | (48) | ||||||
| High-Speed Internet Customers | 21,586 | 22,868 | 315 | 320 | ||||||
| Voice Customers | 11,070 | 11,336 | 68 | 17 | ||||||
| Single Product Customers | 8,444 | 8,367 | (66) | 24 | ||||||
| Double Product Customers | 8,650 | 9,066 | 76 | 130 | ||||||
| Triple Product Customers | 9,763 | 9,988 | 72 | 1 | ||||||
| Customer Relationships | 26,857 | 27,421 | 82 | 156 | ||||||
| The improvement in video customer net losses in the third quarter of 2015 includes an 11,000 increase in net additions, compared to the third quarter of 2014, related to schools participating in our Xfinity On Campus service. |
Operating Cash Flow for Cable Communications increased 6.4% to $4.7 billion in the third quarter of 2015 compared to $4.5 billion in the third quarter of 2014, reflecting higher revenue, partially offset by a 6.3% increase in operating expenses primarily related to higher video programming costs, as well as an increase in technical and product support expenses driven by an acceleration in the deployment of X1 and investments to improve the customer experience. This quarter’s operating cash flow margin was 40.4%, consistent with the prior year period.
For the nine months ended September 30, 2015, Cable operating cash flow increased 5.9% to $14.2 billion compared to $13.4 billion in 2014. Year-to-date operating cash flow margin was 40.7% compared to 40.9% in 2014.
NBCUniversal | ||||||||||||||||
3rd Quarter | Year to Date | |||||||||||||||
| ($ in millions) | 2014 | 2015 | Growth | 2014 | 2015 | Growth | Excluding | |||||||||
| NBCUniversal Revenue | ||||||||||||||||
| Cable Networks | $2,255 | $2,412 | 7.0% | $7,236 | $7,221 | (0.2%) | 3.5% | |||||||||
| Broadcast Television | 1,770 | 1,971 | 11.3% | 6,207 | 6,032 | (2.8%) | 5.5% | |||||||||
| Filmed Entertainment | 1,186 | 1,946 | 64.0% | 3,713 | 5,658 | 52.4% | ||||||||||
| Theme Parks | 786 | 896 | 14.1% | 1,888 | 2,320 | 22.9% | ||||||||||
| Headquarters, Other and Eliminations | (76) | (74) | NM | (231) | (246) | NM | ||||||||||
| NBCUniversal Revenue | $5,921 | $7,151 | 20.8% | $18,813 | $20,985 | 11.5% | 16.4% | |||||||||
| NBCUniversal Operating Cash Flow | ||||||||||||||||
| Cable Networks | $868 | $835 | (3.9%) | $2,677 | $2,605 | (2.7%) | ||||||||||
| Broadcast Television | 142 | 150 | 6.1% | 504 | 563 | 11.8% | ||||||||||
| Filmed Entertainment | 151 | 376 | 149.5% | 634 | 1,091 | 72.2% | ||||||||||
| Theme Parks | 402 | 458 | 14.1% | 816 | 1,075 | 31.8% | ||||||||||
| Headquarters, Other and Eliminations | (147) | (162) | NM | (470) | (471) | NM | ||||||||||
| NBCUniversal Operating Cash Flow | $1,416 | $1,657 | 17.0% | $4,161 | $4,863 | 16.9% | ||||||||||
Revenue for NBCUniversal increased 20.8% to $7.2 billion in the third quarter of 2015 compared to $5.9 billion in the third quarter of 2014. Operating Cash Flow increased 17.0% to $1.7 billion compared to $1.4 billion in the third quarter of 2014, driven by strong results at Filmed Entertainment and Theme Parks.
For the nine months ended September 30, 2015, NBCUniversal revenue increased 11.5% to $21.0 billion compared to $18.8 billion in 2014. Excluding $376 million of revenue generated by the broadcast of the NFL’s Super Bowl in the first quarter of 2015 and $1.1 billion of revenue generated by the Sochi Olympics in the first quarter of 2014, revenue increased 16.4% (see Table 5). Operating cash flow increased 16.9% to $4.9 billion compared to $4.2 billion in the first nine months of 2014.
Cable Networks
For the third quarter of 2015, revenue from the Cable Networks segment increased 7.0% to $2.4 billion compared to $2.3 billion in the third quarter of 2014, driven by an 8.6% increase in distribution revenue and a 2.0% increase in advertising revenue, partially reflecting the introduction of NASCAR on our sports network, NBCSN, as well as a 17.6% increase in content licensing and other revenue. Operating cash flow decreased 3.9% to $835 million compared to $868 million in the third quarter of 2014, reflecting higher revenue, more than offset by increased sports programming costs, driven by the impact of NASCAR.
For the nine months ended September 30, 2015, revenue from the Cable Networks segment decreased 0.2% to $7.2 billion. Excluding $257 million of revenue generated by the Sochi Olympics in the first quarter of 2014, revenue increased 3.5% (see Table 5). Operating cash flow decreased 2.7% to $2.6 billion in the first nine months of 2015 compared to $2.7 billion in 2014.
Broadcast Television
For the third quarter of 2015, revenue from the Broadcast Television segment increased 11.3% to $2.0 billion compared to $1.8 billion in the third quarter of 2014, reflecting a 33.5% increase in content licensing revenue, higher retransmission consent fees, and a 2.8% increase in advertising revenue. Operating cash flow increased 6.1% to $150 million compared to $142 million in the third quarter of 2014, reflecting higher revenue, partially offset by an increase in programming and production costs associated with the timing of content provided under our licensing agreements and studio production costs.
For the nine months ended September 30, 2015, revenue from the Broadcast Television segment decreased 2.8% to $6.0 billion compared to $6.2 billion in 2014. Excluding $376 million of revenue generated by the NFL’s Super Bowl in the first quarter of 2015, as well as $846 million of revenue generated by the Sochi Olympics in the first quarter of 2014, revenue increased 5.5% (see Table 5). Operating cash flow increased 11.8% to $563 million compared to $504 million in the first nine months of 2014.
Filmed Entertainment
For the third quarter of 2015, revenue from the Filmed Entertainment segment increased 64.0% to $1.9 billion compared to $1.2 billion in the third quarter of 2014, driven by higher theatrical revenue from the record performances of Minions and Jurassic World, continuing on the earlier success of Furious 7. Operating cash flow increased $225 million to $376 million compared to $151 million in the third quarter of 2014, reflecting higher revenue, partially offset by an increase in the amortization of film costs and higher advertising, marketing and promotion expense due to a larger film slate.
For the nine months ended September 30, 2015, revenue from the Filmed Entertainment segment increased 52.4% to $5.7 billion compared to $3.7 billion in 2014. Operating cash flow increased 72.2% to $1.1 billion compared to $634 million in the first nine months of 2014.
Theme Parks
For the third quarter of 2015, revenue from the Theme Parks segment increased 14.1% to $896 million compared to $786 million in the third quarter of 2014, reflecting higher guest attendance and per capita spending, driven by the continued success of Orlando’s The Wizarding World of Harry Potter™ – Diagon Alley™, as well as Fast and Furious: Supercharged at the Hollywood park. Third quarter operating cash flow increased 14.1% to $458 million compared to $402 million in the same period last year, reflecting higher revenue, partially offset by an increase in operating costs to support new attractions and $18 million of transaction-related costs associated with the development of a theme park in China.
For the nine months ended September 30, 2015, revenue from the Theme Parks segment increased 22.9% to $2.3 billion compared to $1.9 billion in 2014. Operating cash flow increased 31.8% to $1.1 billion compared to $816 million in the first nine months of 2014.
Headquarters, Other and Eliminations
NBCUniversal Headquarters, Other and Eliminations include overhead and eliminations among the NBCUniversal businesses. For the quarter ended September 30, 2015, NBCUniversal Headquarters, Other and Eliminations operating cash flow loss was $162 million compared to a loss of $147 million in the third quarter of 2014.
For the nine months ended September 30, 2015, NBCUniversal Headquarters, Other and Eliminations operating cash flow loss was $471 million compared to a loss of $470 million in 2014.
Corporate, Other and Eliminations | ||
| Corporate, Other and Eliminations primarily include corporate operations, Comcast-Spectacor and eliminations among Comcast's businesses. For the quarter ended September 30, 2015, Corporate, Other and Eliminations revenue was ($222) million compared to ($171) million in 2014. The operating cash flow loss was $221 million, including $56 million of expenses related to a contract settlement, compared to a loss of $176 million in the third quarter of 2014, which included $77 million of transaction-related costs. | ||
| For the nine months ended September 30, 2015, Corporate, Other and Eliminations revenue was ($619) million compared to ($597) million in 2014. The operating cash flow loss was $677 million, including $178 million of transaction-related costs, compared to a loss of $543 million in the first nine months of 2014, which included $138 million of transaction-related costs. | ||
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, principal payments on capital leases and cash distributions to noncontrolling interests; and adjusted for any payments and receipts related to certain nonoperating items, net of estimated tax benefits. The definition of Free Cash Flow excludes any impact from Economic Stimulus packages. These amounts have been excluded from Free Cash Flow to provide an appropriate comparison. | |
| All percentages are calculated on whole numbers. Minor differences may exist due to rounding. | ||
Conference Call and Other Information
Comcast Corporation will host a conference call with the financial community today, October 27, 2015 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 39613302. A replay of the call will be available starting at 11:30 a.m. ET on October 27, 2015, on the Investor Relations website or by telephone. To access the telephone replay, which will be available until Tuesday, November 3, 2015 at midnight ET, please dial (855) 859-2056 and enter the conference ID number 39613302.
From time to time, we post information that may be of interest to investors on our website at www.cmcsa.com or www.cmcsk.com and on our corporate blog, www.corporate.comcast.com/comcast-voices. 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) is a global media and technology company with two primary businesses, Comcast Cable and NBCUniversal. Comcast Cable is one of the nation's largest video, high-speed Internet and phone providers to residential customers under the XFINITY brand and also provides these services to businesses. NBCUniversal operates news, entertainment and sports cable networks, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures and Universal Parks and Resorts. Visit www.comcastcorporation.com for more information.
| TABLE 1 | ||||||||||||||||||
| Condensed Consolidated Statement of Income (Unaudited) | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| (in millions, except per share data) | September 30, | September 30, | ||||||||||||||||
| 2014 | 2015 | 2014 | 2015 | |||||||||||||||
| Revenue | $ | 16,791 | $ | 18,669 | $ | 51,043 | $ | 55,265 | ||||||||||
| Programming and production | 4,772 | 5,582 | 15,554 | 16,714 | ||||||||||||||
| Other operating and administrative | 5,017 | 5,394 | 14,688 | 15,753 | ||||||||||||||
| Advertising, marketing and promotion | 1,298 | 1,509 | 3,755 | 4,392 | ||||||||||||||
| 11,087 | 12,485 | 33,997 | 36,859 | |||||||||||||||
| Operating cash flow | 5,704 | 6,184 | 17,046 | 18,406 | ||||||||||||||
| Depreciation expense | 1,539 | 1,697 | 4,707 | 5,005 | ||||||||||||||
| Amortization expense | 420 | 486 | 1,222 | 1,405 | ||||||||||||||
| 1,959 | 2,183 | 5,929 | 6,410 | |||||||||||||||
| Operating income | 3,745 | 4,001 | 11,117 | 11,996 | ||||||||||||||
| Other income (expense) | ||||||||||||||||||
| Interest expense | (663 | ) | (659 | ) | (1,953 | ) | (2,028 | ) | ||||||||||
| Investment income (loss), net | 21 | (26 | ) | 254 | 24 | |||||||||||||
| Equity in net income (losses) of investees, net | 33 | 1 | 87 | (202 | ) | |||||||||||||
| Other income (expense), net | (96 | ) | (53 | ) | (150 | ) | 364 | |||||||||||
| (705 | ) | (737 | ) | (1,762 | ) | (1,842 | ) | |||||||||||
| Income before income taxes | 3,040 | 3,264 | 9,355 | 10,154 | ||||||||||||||
| Income tax expense | (407 | ) | (1,223 | ) | (2,759 | ) | (3,797 | ) | ||||||||||
| Net income | 2,633 | 2,041 | 6,596 | 6,357 | ||||||||||||||
| Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock | (41 | ) | (45 | ) | (141 | ) | (165 | ) | ||||||||||
| Net income attributable to Comcast Corporation | $ | 2,592 | $ | 1,996 | $ | 6,455 | $ | 6,192 | ||||||||||
| Diluted earnings per common share attributable to Comcast Corporation shareholders | $ | 0.99 | $ | 0.80 | $ | 2.46 | $ | 2.45 | ||||||||||
| Dividends declared per common share attributable to Comcast Corporation shareholders | $ | 0.225 | $ | 0.25 | $ | 0.675 | $ | 0.75 | ||||||||||
| Diluted weighted-average number of common shares | 2,616 | 2,502 | 2,629 | 2,530 | ||||||||||||||
| TABLE 2 | |||||||
| Condensed Consolidated Balance Sheet (Unaudited) | |||||||
| (in millions) | December 31, | September 30, | |||||
| 2014 | 2015 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 3,910 | $ | 1,893 | |||
| Investments | 602 | 137 | |||||
| Receivables, net | 6,321 | 6,527 | |||||
| Programming rights | 839 | 1,130 | |||||
| Other current assets | 1,859 | 1,814 | |||||
| Total current assets | 13,531 | 11,501 | |||||
| Film and television costs | 5,727 | 5,712 | |||||
| Investments | 3,135 | 3,323 | |||||
| Property and equipment, net | 30,953 | 32,170 | |||||
| Franchise rights | 59,364 | 59,364 | |||||
| Goodwill | 27,316 | 27,492 | |||||
| Other intangible assets, net | 16,980 | 16,896 | |||||
| Other noncurrent assets, net | 2,333 | 2,500 | |||||
| $ | 159,339 | $ | 158,958 | ||||
| LIABILITIES AND EQUITY | |||||||
| Current Liabilities | |||||||
| Accounts payable and accrued expenses related to trade creditors | $ | 5,638 | $ | 5,996 | |||
| Accrued participations and residuals | 1,347 | 1,491 | |||||
| Deferred revenue | 915 | 1,265 | |||||
| Accrued expenses and other current liabilities | 5,293 | 5,455 | |||||
| Current portion of long-term debt | 4,217 | 3,152 | |||||
| Total current liabilities | 17,410 | 17,359 | |||||
| Long-term debt, less current portion | 44,017 | 44,605 | |||||
| Deferred income taxes | 32,959 | 33,131 | |||||
| Other noncurrent liabilities | 10,819 | 10,694 | |||||
| Redeemable noncontrolling interests and redeemable subsidiary preferred stock | 1,066 | 1,204 | |||||
| Equity | |||||||
| Comcast Corporation shareholders' equity | 52,711 | 51,716 | |||||
| Noncontrolling interests | 357 | 249 | |||||
| Total equity | 53,068 | 51,965 | |||||
| $ | 159,339 | $ | 158,958 | ||||
| TABLE 3 | |||||||||
| Consolidated Statement of Cash Flows (Unaudited) | |||||||||
| (in millions) | Nine Months Ended | ||||||||
| September 30, | |||||||||
| 2014 | 2015 | ||||||||
| OPERATING ACTIVITIES | |||||||||
| Net income | $ | 6,596 | $ | 6,357 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
| Depreciation and amortization | 5,929 | 6,410 | |||||||
| Share-based compensation | 386 | 430 | |||||||
| Noncash interest expense (income), net | 132 | 147 | |||||||
| Equity in net (income) losses of investees, net | (87 | ) | 202 | ||||||
| Cash received from investees | 71 | 139 | |||||||
| Net (gain) loss on investment activity and other | (24 | ) | (344 | ) | |||||
| Deferred income taxes | 358 | 67 | |||||||
| Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | |||||||||
| Current and noncurrent receivables, net | 89 | (322 | ) | ||||||
| Film and television costs, net | (471 | ) | (65 | ) | |||||
| Accounts payable and accrued expenses related to trade creditors | 119 | 169 | |||||||
| Other operating assets and liabilities | (796 | ) | 623 | ||||||
| Net cash provided by operating activities | 12,302 | 13,813 | |||||||
| INVESTING ACTIVITIES | |||||||||
| Capital expenditures | (5,196 | ) | (5,862 | ) | |||||
| Cash paid for intangible assets | (735 | ) | (916 | ) | |||||
| Acquisitions and construction of real estate properties | (28 | ) | (116 | ) | |||||
| Acquisitions, net of cash acquired | (477 | ) | (286 | ) | |||||
| Proceeds from sales of businesses and investments | 622 | 420 | |||||||
| Purchases of investments | (145 | ) | (712 | ) | |||||
| Other | (121 | ) | 268 | ||||||
| Net cash provided by (used in) investing activities | (6,080 | ) | (7,204 | ) | |||||
| FINANCING ACTIVITIES | |||||||||
| Proceeds from (repayments of) short-term borrowings, net | (437 | ) | (220 | ) | |||||
| Proceeds from borrowings | 4,182 | 3,996 | |||||||
| Repurchases and repayments of debt | (3,172 | ) | (4,353 | ) | |||||
| Repurchases and retirements of common stock | (2,250 | ) | (5,770 | ) | |||||
| Dividends paid | (1,676 | ) | (1,823 | ) | |||||
| Issuances of common stock | 33 | 35 | |||||||
| Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock | (170 | ) | (178 | ) | |||||
| Other | 97 | (313 | ) | ||||||
| Net cash provided by (used in) financing activities | (3,393 | ) | (8,626 | ) | |||||
| Increase (decrease) in cash and cash equivalents | 2,829 | (2,017 | ) | ||||||
| Cash and cash equivalents, beginning of period | 1,718 | 3,910 | |||||||
| Cash and cash equivalents, end of period | $ | 4,547 | $ | 1,893 | |||||
| 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) | 2014 | 2015 | 2014 | 2015 | ||||||||||||||||||||||||||||
| Operating income | $3,745 | $4,001 | $11,117 | $11,996 | ||||||||||||||||||||||||||||
| Depreciation and amortization | 1,959 | 2,183 | 5,929 | 6,410 | ||||||||||||||||||||||||||||
| Operating income before depreciation and amortization | 5,704 | 6,184 | 17,046 | 18,406 | ||||||||||||||||||||||||||||
| Noncash share-based compensation expense | 120 | 136 | 386 | 430 | ||||||||||||||||||||||||||||
| Changes in operating assets and liabilities | 562 | 412 | (343 | ) | 108 | |||||||||||||||||||||||||||
| Cash basis operating income | 6,386 | 6,732 | 17,089 | 18,944 | ||||||||||||||||||||||||||||
| Payments of interest | (656 | ) | (673 | ) | (1,820 | ) | (1,914 | ) | ||||||||||||||||||||||||
| Payments of income taxes | (974 | ) | (1,146 | ) | (2,878 | ) | (3,145 | ) | ||||||||||||||||||||||||
| Excess tax benefits under share-based compensation | (34 | ) | (35 | ) | (240 | ) | (255 | ) | ||||||||||||||||||||||||
| Other | 33 | 101 | 151 | 183 | ||||||||||||||||||||||||||||
| Net Cash Provided by Operating Activities | $4,755 | $4,979 | $12,302 | $13,813 | ||||||||||||||||||||||||||||
| Capital expenditures | (1,950 | ) | (2,165 | ) | (5,196 | ) | (5,862 | ) | ||||||||||||||||||||||||
| Cash paid for capitalized software and other intangible assets | (258 | ) | (316 | ) | (735 | ) | (916 | ) | ||||||||||||||||||||||||
| Principal payments on capital leases | - | (3 | ) | - | (6 | ) | ||||||||||||||||||||||||||
| Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock | (53 | ) | (64 | ) | (170 | ) | (178 | ) | ||||||||||||||||||||||||
| Nonoperating items(1) | - | 232 | 272 | 496 | ||||||||||||||||||||||||||||
| Total Free Cash Flow | $2,494 | $2,663 | $6,473 | $7,347 | ||||||||||||||||||||||||||||
| Reconciliation of EPS Excluding Gains on Sales, Acquisition-Related Items, Losses on Early Debt Redemption and Investment, and Favorable Income Tax Adjustments (Unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||||
| 2014 | 2015 | 2014 | 2015 | |||||||||||||||||||||||||||||
| (in millions, except per share data) | ||||||||||||||||||||||||||||||||
| $ | EPS (2) | $ | EPS (2) | $ | EPS (2) | $ | EPS (2) | |||||||||||||||||||||||||
| Net income attributable to Comcast Corporation | $ | 2,592 | $ | 0.99 | $ | 1,996 | $ | 0.80 | $ | 6,455 | $ | 2.46 | $ | 6,192 | $ | 2.45 | ||||||||||||||||
| Growth % | (23.0%) | (19.2%) | (4.1%) | (0.4%) | ||||||||||||||||||||||||||||
| Gains on sales of businesses and investments(3) | - | - | - | - | (97 | ) | (0.04 | ) | (202 | ) | (0.08 | ) | ||||||||||||||||||||
| Gain on settlement of contingent consideration liability(4) | - | - | - | - | - | - | (150 | ) | (0.06 | ) | ||||||||||||||||||||||
| Loss on early redemption of debt(5) | - | - | - | - | - | - | 29 | 0.01 | ||||||||||||||||||||||||
| Costs related to Time Warner Cable and Charter transactions(6) | 49 | 0.02 | - | - | 87 | 0.04 | 123 | 0.05 | ||||||||||||||||||||||||
| Loss on investment(7) | - | - | - | - | - | - | 158 | 0.06 | ||||||||||||||||||||||||
| Favorable income tax adjustments(8) | (724 | ) | (0.28 | ) | - | - | (724 | ) | (0.28 | ) | - | - | ||||||||||||||||||||
| Favorable resolution of a contingency of an acquired company(9) | - | - | - | - | (27 | ) | (0.01 | ) | - | - | ||||||||||||||||||||||
| Net income attributable to Comcast Corporation | ||||||||||||||||||||||||||||||||
| (excluding gains on sales, acquisition-related items, losses on early debt redemption and investment, and favorable income tax adjustments) | $ | 1,917 | $ | 0.73 | $ | 1,996 | $ | 0.80 | $ | 5,694 | $ | 2.17 | $ | 6,150 | $ | 2.43 | ||||||||||||||||
| Growth % | 4.1% | 9.6% | 8.0% | 12.0% | ||||||||||||||||||||||||||||
| (1) | Nonoperating items include adjustments for cash taxes paid related to certain investing and financing transactions, to reflect cash taxes paid in the year of the related taxable income and to exclude the impacts of Economic Stimulus packages. Net cash provided by operating activities for 2014 includes a $150 million increase in July 2014 resulting from a change in our credit card payment processes that resulted in the acceleration of the recognition of cash receipts in Cable Communications. For free cash flow purposes, we consider the acceleration to be nonrecurring in nature and therefore, we excluded this amount from free cash flow as a nonoperating item. | |
| (2) | Based on diluted weighted-average number of common shares for the respective periods as presented in Table 1. | |
| (3) | 2015 year to date net income attributable to Comcast Corporation includes $335 million of other income, $202 million net of tax and noncontrolling interests, resulting from sales of an investment and a business. 2014 year to date net income attributable to Comcast Corporation includes $154 million of investment income, $97 million net of tax, resulting from sales of investments. | |
| (4) | 2015 year to date net income attributable to Comcast Corporation includes $240 million of other income, $150 million net of tax, resulting from the settlement of a contingent consideration liability with General Electric Company related to the acquisition of NBCUniversal. | |
| (5) | 2015 year to date net income attributable to Comcast Corporation includes $47 million of interest expense, $29 million net of tax, resulting from the early redemption of debt. | |
| (6) | 3rd quarter 2014 net income attributable to Comcast Corporation includes $77 million of operating costs and expenses, $49 million net of tax, related to the Time Warner Cable and Charter transactions. 2015 year to date net income attributable to Comcast Corporation includes $198 million of expense ($178 million of operating costs and expenses and $20 million of depreciation and amortization expense), $123 million net of tax, related to the Time Warner Cable and Charter transactions. 2014 year to date net income attributable to Comcast Corporation includes $138 million of operating costs and expenses, $87 million net of tax, related to the Time Warner Cable and Charter transactions. | |
| (7) | 2015 year to date net income attributable to Comcast Corporation includes $252 million of equity in net losses of investees, $158 million net of tax, resulting from our proportionate share of an impairment loss recorded at The Weather Channel. | |
| (8) | 3rd quarter 2014 net income attributable to Comcast Corporation includes $724 million of favorable income tax adjustments resulting from adjustments of uncertain tax positions. This amount excludes the benefits of uncertain tax positions for which we have been indemnified. | |
| (9) | 2014 year to date net income attributable to Comcast Corporation includes $27 million of other income, resulting from the favorable resolution of a contingency related to the AT&T Broadband transaction. | |
Note: Minor differences may exist due to rounding. | ||
| TABLE 5 | ||||||||||||||||||||
| Reconciliation of Consolidated Revenue Excluding 2015 Super Bowl and 2014 Olympics and Operating Cash Flow Excluding Costs Related to Time Warner Cable and Charter Transactions (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||
| (in millions) | 2014 | 2015 | Growth % | 2014 | 2015 | Growth % | ||||||||||||||
| Revenue | $ | 16,791 | $ | 18,669 | 11.2 | % | $ | 51,043 | $ | 55,265 | 8.3 | % | ||||||||
| 2015 Super Bowl | - | - | - | (376 | ) | |||||||||||||||
| 2014 Olympics | - | - | (1,103 | ) | - | |||||||||||||||
| Revenue excluding 2015 Super Bowl and 2014 Olympics | $ | 16,791 | $ | 18,669 | 11.2 | % | $ | 49,940 | $ | 54,889 | 9.9 | % | ||||||||
| 2014 | 2015 | Growth % | 2014 | 2015 | Growth % | |||||||||||||||
| Operating Cash Flow | $ | 5,704 | $ | 6,184 | 8.4 | % | $ | 17,046 | $ | 18,406 | 8.0 | % | ||||||||
| Costs related to Time Warner Cable and Charter transactions | 77 | - | 138 | 178 | ||||||||||||||||
| Operating Cash Flow excluding costs related to Time Warner Cable and Charter transactions | $ | 5,781 | $ | 6,184 | 7.0 | % | $ | 17,184 | $ | 18,584 | 8.2 | % | ||||||||
| Reconciliation of Consolidated NBCUniversal Revenue Excluding 2015 Super Bowl and 2014 Olympics (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||
| (in millions) | 2014 | 2015 | Growth % | 2014 | 2015 | Growth % | ||||||||||||||
| Revenue | $ | 5,921 | $ | 7,151 | 20.8 | % | $ | 18,813 | $ | 20,985 | 11.5 | % | ||||||||
| 2015 Super Bowl | - | - | - | (376 | ) | |||||||||||||||
| 2014 Olympics | - | - | (1,103 | ) | - | |||||||||||||||
| Revenue excluding 2015 Super Bowl and 2014 Olympics | $ | 5,921 | $ | 7,151 | 20.8 | % | $ | 17,710 | $ | 20,609 | 16.4 | % | ||||||||
| Reconciliation of Cable Networks Revenue Excluding 2014 Olympics (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||
| (in millions) | 2014 | 2015 | Growth % | 2014 | 2015 | Growth % | ||||||||||||||
| Revenue | $ | 2,255 | $ | 2,412 | 7.0 | % | $ | 7,236 | $ | 7,221 | (0.2 | %) | ||||||||
| 2014 Olympics | - | - | (257 | ) | - | |||||||||||||||
| Revenue excluding 2014 Olympics | $ | 2,255 | $ | 2,412 | 7.0 | % | $ | 6,979 | $ | 7,221 | 3.5 | % | ||||||||
| Reconciliation of Broadcast Television Revenue Excluding 2015 Super Bowl and 2014 Olympics (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||
| (in millions) | 2014 | 2015 | Growth % | 2014 | 2015 | Growth % | ||||||||||||||
| Revenue | $ | 1,770 | $ | 1,971 | 11.3 | % | $ | 6,207 | $ | 6,032 | (2.8 | %) | ||||||||
| 2015 Super Bowl | - | - | - | (376 | ) | |||||||||||||||
| 2014 Olympics | - | - | (846 | ) | - | |||||||||||||||
| Revenue excluding 2015 Super Bowl and 2014 Olympics | $ | 1,770 | $ | 1,971 | 11.3 | % | $ | 5,361 | $ | 5,656 | 5.5 | % | ||||||||
Note: Minor differences may exist due to rounding. | ||||||||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20151027005871/en/
Contacts:
Investor Contacts:
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or
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Contacts:
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