Consolidated 3rd Quarter 2014 Highlights:
- Consolidated Revenue Increased 4.0%,
Operating Cash Flow Increased 7.0% and Operating Income Increased
9.7%
- Free Cash Flow Increased 26.7% to $2.5
Billion
- Earnings per Share Increased 52.3% to
$0.99; Excluding Income Tax Adjustments and Transaction-Related
Costs, EPS Increased 12.3% to $0.73
- Quarterly Dividends and Quarterly Share
Repurchases Increased 31.6% to $1.3 Billion
Cable Communications 3rd Quarter 2014 Highlights:
- Cable Communications Revenue Increased
5.2% and Operating Cash Flow Increased 5.1%
- Cable Communications Customer
Relationships Increased by 82,000 to 26.9 Million
- Video Customer Net Losses Declined to
81,000, The Best Third Quarter Result in 7 Years
- High-Speed Internet Customers Increased
by 315,000 and Revenue Grew 9.6%
- Business Services Revenue Increased
21.0%, Achieving a $4 Billion Annualized Run-Rate
NBCUniversal 3rd Quarter 2014 Highlights:
- NBCUniversal Revenue Increased 1.2% and
Operating Cash Flow Increased 13.3%; Operating Cash Flow Margins
Expanded to 23.9% from 21.4% in the Prior Year Period
- Broadcast Revenue Increased 7.7% and
Operating Cash Flow Increased Over $100 Million
- NBC Ended the Full 2013-2014 Season
Ranked #1 Among Adults 18-49
- Theme Parks Revenue Increased 18.7% and
Operating Cash Flow Increased 16.9%, Driven by the Successful
Opening of The Wizarding World of Harry Potter ™ – Diagon Alley ™
in Orlando
Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported
results for the quarter ended September 30, 2014.
Brian L. Roberts, Chairman and Chief Executive Officer of
Comcast Corporation, said, “I am pleased to report strong revenue,
operating cash flow and free cash flow growth for the third quarter
of 2014. Cable results highlight the consistent strength of
high-speed Internet and business services, and video customer
results were the best for a third quarter in seven years. We
continue to focus on innovation and providing the best experience
for our customers, and we are thrilled with the response
to our superior X1 platform, which recently reached five
million boxes deployed. At NBCUniversal, we had another outstanding
quarter with double-digit operating cash flow growth, driven by
ratings momentum at NBC Broadcast and the successful opening of The
Wizarding World of Harry Potter ™– Diagon Alley ™ in Orlando.”
Consolidated Financial Results
3rd Quarter Year to Date ($ in
millions) 2013 2014
Growth 2013
2014 Growth Revenue $ 16,151 $
16,791 4.0 % $ 47,731 $ 51,043
6.9 % Excluding Olympics
$ 47,731
$ 49,940 4.6 % Operating Cash Flow1 $ 5,330 $
5,704 7.0 % $ 15,789 $ 17,046 8.0 % Excluding Transaction-Related
Costs & Pension Costs $ 5,404 $
5,781 7.0 % $ 15,863
$ 17,184 8.3 % Operating Income
$ 3,414 $ 3,745 9.7 %
$ 9,916 $ 11,117 12.1 % Earnings
per Share2 $ 0.65 $ 0.99 52.3 % $ 1.84 $ 2.46 33.7 % Excluding
Adjustments (see Table 4) $ 0.65 $ 0.73
12.3 % $ 1.81 $
2.17 19.9 % Free Cash Flow3 $ 1,968 $ 2,494 26.7 % $
7,054 $ 6,473 (8.2 %)
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 2014
increased 4.0% to $16.8 billion. Consolidated Operating
Cash Flow increased 7.0% to $5.7 billion. The Time Warner Cable
and Charter transaction-related costs of $77 million in the third
quarter of 2014 were a similar amount to the $74 million of costs
associated with the termination of a pension plan in the third
quarter of 2013 (See Table 5). Consolidated Operating
Income increased 9.7% to $3.7 billion.
For the nine months ended September 30, 2014, consolidated
revenue increased 6.9% to $51.0 billion. Excluding $1.1 billion of
revenue generated by the Sochi Olympics in the first quarter of
2014, consolidated revenue increased 4.6%. Consolidated operating
cash flow increased 8.0% to $17.0 billion. Excluding $138 million
of transaction-related costs in the first nine months of 2014 and
pension termination costs in the third quarter of 2013,
consolidated operating cash flow increased 8.3% (See Table 5).
Consolidated operating income increased 12.1% to $11.1 billion.
Earnings per Share (EPS) for the third quarter of 2014
was $0.99, a 52.3% increase from the $0.65 reported in the third
quarter of 2013. Excluding income tax adjustments and
transaction-related costs in the third quarter of 2014, EPS
increased 12.3% to $0.73 (see Table 4).
EPS for the nine months ended September 30, 2014 was $2.46, a
33.7% increase from the $1.84 reported in the prior year. Excluding
income tax adjustments, gains on the sales of investments, a
resolution of a prior acquisition contingency and
transaction-related costs in the first nine months of 2014, as well
as a gain on the sale of wireless spectrum licenses in the first
quarter of 2013, EPS increased 19.9% to $2.17 (see Table 4).
Capital Expenditures increased 13.0% to $2.0 billion in
the third quarter of 2014 compared to the third quarter of 2013.
Cable Communications’ capital expenditures increased $212 million,
or 14.8%, to $1.6 billion in the third quarter of 2014, primarily
reflecting increased investment in support capital as we launch our
cloud based initiatives and spending on customer premise equipment
related to the deployment of the X1 platform, as well as our
ongoing investment in network infrastructure to increase network
capacity. Cable capital expenditures represented 14.9% of Cable
revenue in the third quarter of 2014 compared to 13.6% in last
year’s third quarter. NBCUniversal’s capital expenditures increased
$11 million, or 4.0%, to $295 million in the third quarter of 2014,
primarily reflecting increased investments in Theme Parks.
For the nine months ended September 30, 2014, capital
expenditures increased 13.1% to $5.2 billion compared to the prior
year. Cable Communications’ capital expenditures increased $516
million, or 13.7%, to $4.3 billion and represented 13.0% of Cable
revenue compared to 12.1% in 2013. NBCUniversal’s capital
expenditures increased $77 million, or 9.5%, to $884 million for
the first nine months of 2014.
Free Cash Flow increased 26.7% to $2.5 billion in the
third quarter of 2014 compared to $2.0 billion in the third quarter
of 2013, reflecting growth in consolidated operating cash flow,
improvements in working capital and lower cash taxes on operating
items, partially offset by higher capital expenditures. Free cash
flow for the nine months ended September 30, 2014 decreased 8.2% to
$6.5 billion compared to $7.1 billion in 2013.
3rd Quarter Year to Date ($ in
millions) 2013
2014 Growth 2013
2014 Growth Operating
Cash Flow $ 5,330 $ 5,704
7.0 % $ 15,789 $
17,046 8.0 % Capital Expenditures
(1,726 ) (1,950 )
13.0 % (4,593 ) (5,196 )
13.1 % Cash Paid for Capitalized Software and Other
Intangible Assets (250 )
(258 ) 3.2 % (694 )
(735 ) 5.9 % Cash Interest Expense
(636 ) (656 )
3.1 % (1,768 )
(1,820 ) 2.9 % Cash Taxes on Operating Items
(1,044 ) (858 )
(17.8 %) (2,585 ) (2,696
) 4.3 % Changes in Operating Assets and Liabilities
165 412
149.7 % 583
(493 ) NM Noncash Share-Based Compensation
99 120
21.2 % 312
386 23.7 % Distributions to
Noncontrolling Interests and Dividends for
Redeemable Subsidiary Preferred Stock
(48 ) (53 )
10.4 % (164 ) (170 )
3.7 % Other 78
33 (57.7 %)
174 151 (13.2 %)
Free Cash Flow3
$ 1,968
$ 2,494
26.7 % $ 7,054
$ 6,473
(8.2 %) NM=comparison not meaningful.
Dividends and Share Repurchases. During the third quarter
of 2014, Comcast paid dividends totaling $582 million and
repurchased 13.9 million of its common shares for $750 million. In
the first nine months of 2014, Comcast has repurchased 43.8 million
of its common shares for $2.3 billion. As of September 30, 2014,
Comcast had approximately $5.25 billion available under its share
repurchase authorization.
Cable Communications
3rd Quarter Year to Date ($ in
millions) 2013 2014
Growth 2013
2014 Growth
Cable Communications Revenue
Video $ 5,127
$ 5,179 1.0 % $ 15,415
$ 15,596 1.2 % High-Speed Internet
2,592 2,840 9.6 %
7,684 8,409
9.4 % Voice 919 913
(0.5 %) 2,729
2,755 1.0 % Business Services
836 1,011 21.0 %
2,365 2,893 22.3 %
Advertising 541 607
12.3 % 1,587
1,725 8.7 % Other 476
491 2.4 %
1,395 1,449 3.7 %
Cable
Communications Revenue $ 10,491
$ 11,041 5.2 % $
31,175 $ 32,827
5.3 %
Cable Communications Operating Cash Flow
$ 4,246 $ 4,464
5.1 % $
12,800 $ 13,428
4.9 %
Operating Cash Flow Margin
40.5%
40.4%
41.1%
40.9%
Cable Communications Capital
Expenditures $ 1,432
$ 1,644 14.8 %
$ 3,766 $ 4,282
13.7 % Percent of Cable Communications
Revenue
13.6%
14.9%
12.1%
13.0%
Revenue for Cable Communications increased 5.2% to $11.0
billion in the third quarter of 2014 compared to $10.5 billion in
the third quarter of 2013, driven by increases of 9.6% in
high-speed Internet and 21.0% in business services. The increase in
Cable revenue reflects rate adjustments, customers receiving higher
levels of services and customer growth (see below).
For the nine months ended September 30, 2014, Cable revenue
increased 5.3% to $32.8 billion compared to $31.2 billion in
2013.
Customer relationships increased by 82,000 to 26.9
million during the third quarter of 2014, more than three-times the
customer relationship net additions in the third quarter of 2013.
At the end of the third quarter, penetration of our triple product
customers increased to 36% compared to 34% in the third quarter of
2013. High-speed Internet customer net additions improved versus
last year and were the strongest for a third quarter in five years.
Video customer net losses improved 36% year-over-year and were the
best result for a third quarter in seven years. Voice net additions
slowed, reflecting a focus on double play during the back-to-school
season, as well as X1 availability that was more focused on triple
play customers last year, making for a difficult comparison.
Customers
Net Adds Billable Customers Method4 (in thousands)
3Q13 3Q14
3Q13 3Q14 Video Customers
22,531 22,376
(127 ) (81 ) High-Speed Internet
Customers 20,283 21,586
297
315 Voice Customers 10,496
11,070 169
68
Single Product Customers
8,921 8,444
(124 ) (66 ) Double Product
Customers 8,491 8,650
(14 ) 76
Triple Product Customers 9,144
9,763 164
72
Customer Relationships
26,555 26,857 26
82
Operating Cash Flow for Cable Communications increased
5.1% to $4.5 billion in the third quarter of 2014 compared to $4.2
billion in the third quarter of 2013, reflecting higher revenue,
partially offset by a 5.3% increase in operating expenses primarily
related to higher video programming costs, as well as an increase
in advertising, marketing and promotion expenses. This quarter’s
operating cash flow margin was 40.4% compared to 40.5% in 2013.
For the nine months ended September 30, 2014, Cable operating
cash flow increased 4.9% to $13.4 billion compared to $12.8 billion
in 2013. Year-to-date operating cash flow margin was 40.9% compared
to 41.1% in 2013.
NBCUniversal
3rd
Quarter Year to Date ($ in millions)
2013 2014
Growth 2013 2014
Growth
ExcludingOlympics
NBCUniversal Revenue
Cable Networks
$ 2,239 $ 2,255
0.7 % $ 6,877 $ 7,236
5.2 % 1.5 % Broadcast Television
1,644 1,770
7.7 % 4,893
6,207 26.9 % 9.6 % Filmed
Entertainment 1,400
1,186 (15.2 %)
4,004 3,713 (7.3
%) Theme Parks 661
786 18.7 %
1,669 1,888
13.1 % Headquarters, Other and Eliminations
(93 ) (76 )
NM (257 ) (231 )
NM
NBCUniversal Revenue $
5,851 $ 5,921
1.2 % $ 17,186 $
18,813 9.5 %
3.0 %
NBCUniversal
Operating Cash Flow
Cable Networks
$ 853 $ 868 1.8 %
$ 2,572 $ 2,677
4.1 % Broadcast Television
34 142
NM 205 504
145.6 % Filmed
Entertainment 189
151 (20.3 %) 291
634 117.7 %
Theme Parks 343
402 16.9 % 747
816 9.1 %
Headquarters, Other and Eliminations
(169 ) (147 ) NM
(421 ) (470 ) NM
NBCUniversal Operating Cash Flow
$ 1,250 $ 1,416 13.3 %
$ 3,394 $ 4,161 22.6 %
Revenue for NBCUniversal increased 1.2% to $5.9 billion
in the third quarter of 2014 compared to the third quarter of 2013,
as revenue growth in Broadcast Television and Theme Parks was
partially offset by lower theatrical revenue in the Filmed
Entertainment segment. Operating Cash Flow increased 13.3%
to $1.4 billion compared to $1.3 billion in the third quarter of
2013, driven by strong results at Broadcast Television and Theme
Parks.
For the nine months ended September 30, 2014, NBCUniversal
revenue increased 9.5% to $18.8 billion compared to $17.2 billion
in 2013. Excluding $1.1 billion of revenue generated by the Sochi
Olympics in the first quarter of 2014, NBCUniversal revenue
increased 3.0% (see Table 5). Operating cash flow increased 22.6%
to $4.2 billion compared to $3.4 billion in the first nine months
of 2013.
Cable Networks
For the third quarter of 2014, revenue from the Cable Networks
segment increased 0.7% to $2.3 billion compared to $2.2 billion in
the third quarter of 2013, reflecting a 5.1% increase in
distribution revenue, partially offset by a 4.6% decline in
advertising revenue, primarily due to a decline in ratings.
Operating cash flow increased 1.8% to $868 million compared to $853
million in the third quarter of 2013, reflecting higher revenue and
flat operating costs, even as we continue to invest in
programming.
For the nine months ended September 30, 2014, revenue from the
Cable Networks segment increased 5.2% to $7.2 billion compared to
$6.9 billion in 2013. Excluding $257 million of revenue generated
by the Sochi Olympics in the first quarter of 2014, revenue
increased 1.5%. Operating cash flow increased 4.1% to $2.7 billion
compared to $2.6 billion in the first nine months of 2013.
Broadcast Television
For the third quarter of 2014, revenue from the Broadcast
Television segment increased 7.7% to $1.8 billion compared to $1.6
billion in the third quarter of 2013, driven by an increase in
advertising revenue due to strong ratings at the NBC broadcast
network, as well as higher retransmission consent fees and an
increase in content licensing revenue. Operating cash flow
increased $108 million to $142 million compared to $34 million in
the third quarter of 2013, reflecting higher revenue and a slight
increase in operating costs and expenses.
For the nine months ended September 30, 2014, revenue from the
Broadcast Television segment increased 26.9% to $6.2 billion
compared to $4.9 billion in 2013. Excluding $846 million of revenue
generated by the Sochi Olympics in the first quarter of 2014,
revenue increased 9.6% (see Table 5). Operating cash flow increased
$299 million to $504 million compared to $205 million in the first
nine months of 2013.
Filmed Entertainment
For the third quarter of 2014, revenue from the Filmed
Entertainment segment decreased 15.2% to $1.2 billion compared to
$1.4 billion in the third quarter of 2013, reflecting a decline in
theatrical revenue primarily due to the strong box office
performance of Despicable Me 2 in the third quarter of 2013.
Operating cash flow decreased 20.3% to $151 million compared to
$189 million in the third quarter of 2013, reflecting lower
revenue, partially offset by a decrease in the amortization of film
costs and reduced advertising, marketing and promotion expense due
to a smaller film slate.
For the nine months ended September 30, 2014, revenue from the
Filmed Entertainment segment decreased 7.3% to $3.7 billion
compared to $4.0 billion in 2013. Operating cash flow increased
$343 million to $634 million compared to $291 million in the first
nine months of 2013.
Theme Parks
For the third quarter of 2014, revenue from the Theme Parks
segment increased 18.7% to $786 million compared to $661 million in
the third quarter of 2013, reflecting higher guest attendance and
per capita spending, driven by the successful opening of Orlando’s
The Wizarding World of Harry Potter ™ – Diagon Alley ™. Third
quarter operating cash flow increased 16.9% to $402 million
compared to $343 million in the same period last year, reflecting
higher revenue, partially offset by an increase in operating costs
to support the new attractions.
For the nine months ended September 30, 2014, revenue from the
Theme Parks segment increased 13.1% to $1.9 billion compared to
$1.7 billion in 2013. Operating cash flow increased 9.1% to $816
million compared to $747 million in the first nine months of
2013.
Headquarters, Other and Eliminations
NBCUniversal Headquarters, Other and Eliminations include
overhead and eliminations among the NBCUniversal businesses. For
the quarter ended September 30, 2014, NBCUniversal Headquarters,
Other and Eliminations operating cash flow loss was $147 million
compared to a loss of $169 million in the third quarter of 2013,
reflecting lower employee-related costs.
For the nine months ended September 30, 2014, NBCUniversal
Headquarters, Other and Eliminations operating cash flow loss was
$470 million compared to a loss of $421 million in 2013.
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, 2014, Corporate,
Other and Eliminations revenue was ($171) million compared to
($191) million in 2013. The operating cash flow loss was $176
million, including $77 million of costs related to the Time Warner
Cable and Charter transactions, compared to a loss of $166 million
in the third quarter of 2013, including $74 million of costs
associated with the termination of a pension plan.
For the nine months ended September 30, 2014, Corporate, Other
and Eliminations revenue was ($597) million compared to ($630)
million in 2013. The operating cash flow loss was $543 million,
including $138 million of transaction-related costs, compared to a
loss of $405 million in the first nine months of 2013, including
$74 million of costs associated with the termination of a pension
plan.
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 and cash
distributions to noncontrolling interests; and adjusted for any
payments and receipts related to certain nonoperating items, net of
estimated tax effects. 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.
4
Beginning in 2014, our Cable
Communications segment revised its methodology for counting
customers related to how we count and report customers who reside
in multiple dwelling units (“MDUs”) that are billed under bulk
contracts (the “Billable Customers Method”). For MDUs whose
residents have the ability to receive additional cable services,
such as additional programming choices or our HD or DVR services,
we now count and report customers based on the number of potential
billable relationships within each MDU. For MDUs whose residents
are not able to receive additional cable services, the MDU is now
counted as a single customer. Previously, we had counted and
reported these customers on an equivalent billing unit basis by
dividing monthly revenue received under an MDU’s bulk contract by
the standard monthly residential rate where the MDU was located
(the “EBU Method”). Video customer metrics for 2013 are now
presented on the Billable Customers Method to provide an
appropriate comparison. For high-speed Internet and voice
customers, the differences in the customer metrics using the
Billable Customers Method and the EBU Method were not material and
2013 data has not been adjusted.
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 23, 2014 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 3387049. A replay of the call will be
available starting at 12:30 p.m. ET on October 23, 2014, on the
Investor Relations website or by telephone. To access the telephone
replay, which will be available until Thursday, October 30, 2014 at
midnight ET, please dial (855) 859-2056 and enter the conference ID
number 3387049.
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 the nation's largest video,
high-speed Internet and phone provider to residential customers
under the XFINITY brand and also provides these services to
businesses. NBCUniversal operates 30 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, 2013
2014 2013
2014
Revenue
$16,151
$16,791 $47,731
$51,043 Programming
and production 4,787
4,772 14,418
15,554 Other
operating and administrative 4,751
5,019 13,787
14,695 Advertising, marketing and promotion 1,283
1,296 3,737
3,748 10,821
11,087 31,942
33,997
Operating cash flow 5,330
5,704 15,789
17,046
Depreciation expense 1,520
1,539 4,669
4,707
Amortization expense 396
420 1,204
1,222 1,916
1,959 5,873
5,929 Operating income 3,414
3,745
9,916
11,117 Other income (expense) Interest expense
(639 )
(663 ) (1,928 )
(1,953 )
Investment income (loss), net 464
21 549
254 Equity
in net income (losses) of investees, net (130 )
33 (96 )
87 Other income (expense), net (310 )
(96 )
(280 )
(150 ) (615 )
(705 ) (1,755 )
(1,762 ) Income before income taxes 2,799
3,040 8,161
9,355 Income tax expense (1,021 )
(407 ) (2,994 )
(2,759 ) Net
income 1,778
2,633 5,167
6,596 Net
(income) loss attributable to noncontrolling interests and
redeemable subsidiary preferred stock (46 )
(41 )
(264 )
(141 ) Net
income attributable to Comcast Corporation $1,732
$2,592 $4,903
$6,455
Diluted earnings per common share attributable to Comcast
Corporation shareholders $0.65
$0.99 $1.84
$2.46
Dividends declared per common share
attributable to Comcast Corporation shareholders
$0.195
$0.225 $0.585
$0.675
Diluted weighted-average number of common
shares
2,658
2,616 2,668
2,629
TABLE 2 Condensed
Consolidated Balance Sheet (Unaudited)
(in millions) December 31,
September 30, 2013
2014 ASSETS Current Assets Cash and cash
equivalents $1,718
$4,547 Investments 3,573
531
Receivables, net 6,376
6,172 Programming rights 928
992 Other current assets 1,480
1,694 Total current
assets 14,075
13,936 Film and television costs 4,994
5,560 Investments 3,770
3,129 Property
and equipment, net 29,840
30,362 Franchise rights
59,364
59,364 Goodwill 27,098
27,323
Other intangible assets, net 17,329
17,089 Other
noncurrent assets, net 2,343
2,474 $158,813
$159,237 LIABILITIES AND EQUITY Current
Liabilities Accounts payable and accrued expenses related to trade
creditors $5,528
$5,680 Accrued participations and residuals
1,239
1,444 Deferred revenue 898
976 Accrued expenses
and other current liabilities 7,967
5,461 Current portion of
long-term debt 3,280
3,523 Total current liabilities 18,912
17,084 Long-term debt, less current portion 44,567
44,827 Deferred income taxes 31,935
32,227
Other noncurrent liabilities 11,384
10,388
Redeemable noncontrolling interests and redeemable subsidiary
preferred stock 957
1,058 Equity Comcast Corporation
shareholders' equity 50,694
53,298 Noncontrolling interests
364
355 Total equity 51,058
53,653 $158,813
$159,237 TABLE 3
Consolidated Statement of Cash Flows (Unaudited)
(in millions)
Nine Months Ended
September 30, 2013
2014 OPERATING
ACTIVITIES Net income $5,167
$6,596 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 5,873
5,929 Share-based
compensation 312
386 Noncash interest expense (income), net
122
132 Equity in net (income) losses of investees, net 96
(87 ) Cash received from investees 89
71 Net
(gain) loss on investment activity and other (239 )
(24
) Deferred income taxes (52 )
358 Changes in
operating assets and liabilities, net of effects of acquisitions
and divestitures: Current and noncurrent receivables, net 145
89 Film and television costs, net 408
(471 )
Accounts payable and accrued expenses related to trade creditors
(108 )
119 Other operating assets and liabilities (134 )
(796 ) Net cash provided by operating
activities 11,679
12,302 INVESTING
ACTIVITIES Capital expenditures (4,593 )
(5,196 )
Cash paid for intangible assets (694 )
(735 )
Acquisitions and construction of real estate properties (1,705 )
(28 ) Acquisitions, net of cash acquired (42 )
(477 ) Proceeds from sales of businesses and
investments 655
622 Return of capital from investees 146
6 Purchases of investments (1,177 )
(145 )
Other 83
(127 ) Net cash provided by
(used in) investing activities (7,327 )
(6,080 )
FINANCING ACTIVITIES Proceeds from (repayments of)
short-term borrowings, net 395
(437 ) Proceeds from
borrowings 2,933
4,182 Repurchases and repayments of debt
(2,442 )
(3,172 ) Repurchases and retirements of
common stock (1,500 )
(2,250 ) Dividends paid (1,454
)
(1,676 ) Issuances of common stock 35
33
Purchase of NBCUniversal noncontrolling common equity interest
(10,761 )
- Distributions to noncontrolling interests and
dividends for redeemable subsidiary preferred stock (164 )
(170 ) Settlement of Station Venture liability (602 )
- Other (140 )
97 Net cash provided by
(used in) financing activities (13,700 )
(3,393 )
Increase (decrease) in cash and cash equivalents (9,348 )
2,829 Cash and cash equivalents, beginning of period
10,951
1,718 Cash and cash
equivalents, end of period $1,603
$4,547
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) 2013
2014 2013
2014 Operating income
$3,414
$3,745 $9,916
$11,117 Depreciation and
amortization 1,916
1,959 5,873
5,929 Operating income before depreciation and
amortization 5,330
5,704 15,789
17,046 Noncash
share-based compensation expense 99
120 312
386
Changes in operating assets and liabilities 165
562
583
(343 ) Cash basis operating income
5,594
6,386 16,684
17,089 Payments of interest (636 )
(656 ) (1,768 )
(1,820 ) Payments of
income taxes (958 )
(974 ) (3,180 )
(2,878
) Excess tax benefits under share-based compensation (29 )
(34 ) (176 )
(240 ) Other 23
33 119
151 Net Cash Provided
by Operating Activities $3,994
$4,755
$11,679
$12,302 Capital expenditures (1,726 )
(1,950 ) (4,593 )
(5,196 ) Cash paid
for capitalized software and other intangible assets (250 )
(258 ) (694 )
(735 ) Distributions to
noncontrolling interests and dividends for redeemable subsidiary
preferred stock (48 )
(53 ) (164 )
(170
) Nonoperating items(1) (2 )
- 826
272 Total Free Cash Flow $1,968
$2,494 $7,054
$6,473
Reconciliation of EPS
Excluding Favorable Income Tax Adjustments, Gains on Sales,
Acquisition-Related Items, Pension Termination Costs and Losses on
Investments (Unaudited) Three Months Ended
Nine Months Ended September 30, September 30,
2013
2014 2013
2014 (in millions, except per
share data) $
EPS(2)
$
EPS(2)
$
EPS(2)
$
EPS(2)
Net income attributable to Comcast Corporation $1,732 $0.65
$2,592 $0.99 $4,903 $1.84
$6,455 $2.46
Growth % 49.7% 52.3% 31.7% 33.7% Favorable income tax
adjustments(3) - -
(724) (0.28) - -
(724)
(0.28) Gains on sales of investments(4) (279) (0.11)
- - (279) (0.11)
(97) (0.04) Favorable
resolution of a contingency of an acquired company(5) - -
-
- - -
(27) (0.01) Costs related to Time Warner
Cable and Charter transactions(6) - -
49 0.02 - -
87 0.04 Gain on sale of wireless spectrum licenses(7)
- -
- - (67) (0.03)
- - Pension
termination costs(8) 46 0.02
- - 46 0.02
-
- Losses on investments(9) 234 0.09
- - 234
0.09
- - Net income attributable to Comcast
Corporation
(excluding
favorable income tax adjustments, gains on sales,
acquisition-related items, pension termination costs and losses on
investments) $1,733 $0.65
$1,917
$0.73 $4,837 $1.81
$5,694
$2.17 Growth % 10.6% 12.3% 17.7% 19.9% (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) 3rd quarter 2014 net income attributable to Comcast Corporation
includes $724 million of favorable income tax adjustments resulting
from adjustments of uncertain tax positions. (4) 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. 3rd quarter 2013 net income attributable
to Comcast Corporation includes $443 million of investment income,
$279 million net of tax, resulting from the sale of the investment
in Clearwire. (5) 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. (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. 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) 2013
year to date net income attributable to Comcast Corporation
includes $108 million of other income, $67 million net of tax,
resulting from a gain on the sale of wireless spectrum licenses.
(8) 3rd quarter 2013 net income attributable to Comcast Corporation
includes $74 million of other operating and administrative
expenses, $46 million net of tax, resulting from the termination of
a pension plan. (9) 3rd quarter 2013 net income attributable to
Comcast Corporation includes $371 million of expense ($236 million
of other expense and $135 million of equity in net losses of
investees), $234 million net of tax, resulting from losses on
investments.
Note: Minor differences may exist due
to rounding.
TABLE 5
Reconciliation of
Consolidated Revenue Excluding 2014 Olympics and Operating Cash
Flow Excluding Costs Related to Time Warner Cable and Charter
Transactions and Pension Termination Costs (Unaudited)
Three Months Ended Nine Months Ended September
30, September 30, (in millions) 2013
2014
Growth % 2013
2014 Growth % Revenue
$16,151
$16,791 4.0% $47,731
$51,043 6.9% 2014
Olympics -
- -
(1,103) Revenue excluding 2014
Olympics $16,151
$16,791 4.0% $47,731
$49,940 4.6%
2013
2014 Growth % 2013
2014
Growth % Operating Cash Flow $5,330
$5,704
7.0% $15,789
$17,046 8.0% Costs related to Time
Warner Cable and Charter transactions -
77 -
138
Pension termination costs 74
- 74
-
Operating Cash Flow excluding costs related to Time
Warner Cable and Charter transactions and pension termination costs
$5,404
$5,781 7.0% $15,863
$17,184 8.3%
Reconciliation of Consolidated NBCUniversal Revenue Excluding
2014 Olympics (Unaudited) Three Months Ended
Nine Months Ended September 30, September 30,
(in millions) 2013
2014 Growth % 2013
2014 Growth % Revenue $5,851
$5,921
1.2% $17,186
$18,813 9.5% 2014 Olympics -
- -
(1,103) Revenue excluding 2014 Olympics $5,851
$5,921 1.2% $17,186
$17,710 3.0%
Reconciliation of Cable Networks Revenue Excluding 2014 Olympics
(Unaudited) Three Months Ended Nine Months
Ended September 30, September 30, (in
millions) 2013
2014 Growth % 2013
2014
Growth % Revenue $2,239
$2,255 0.7% $6,877
$7,236 5.2% 2014 Olympics -
- -
(257)
Revenue excluding 2014 Olympics $2,239
$2,255 0.7%
$6,877
$6,979 1.5%
Reconciliation of
Broadcast Television Revenue Excluding 2014 Olympics
(Unaudited) Three Months Ended Nine Months
Ended September 30, September 30, (in
millions) 2013
2014 Growth % 2013
2014
Growth % Revenue $1,644
$1,770 7.7% $4,893
$6,207 26.9% 2014 Olympics -
- -
(846)
Revenue excluding 2014 Olympics $1,644
$1,770 7.7%
$4,893
$5,361 9.6%
Note: Minor differences may exist due
to rounding.
Comcast CorporationInvestor Contacts:Jason Armstrong,
215-286-7972Jane Kearns, 215-286-4794orPress Contacts:D’Arcy
Rudnay, 215-286-8582John Demming, 215-286-8011
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