Actionable news
0
All posts from Actionable news
Actionable news in CVC: CABLEVISION SYSTEMS Corp,

Cablevision Systems: Reports Third Quarter 2015 Results

The following excerpt is from the company's SEC filing.

Cablevision entered into an agreement

to sell the Company to Altice for $34.90 per share

Strongest third quarter performance in customer relationships, video and high-speed data, since 2012

YTD Consolidated Free Cash Flow from Continuing Operations

of $321.7 million

Average Monthly Cable Revenue per Customer ("RPC") of $155.04

Customer service initiatives continue to improve efficiencies with a 25 percent reduction in trouble call truck rolls compared with the prior year period

Continued deployment of smart routers and outside access points in the New York tri-sta te area to optimize WiFi experience; ended quarter with more than 1.4 million Optimum WiFi access points

Reached new comprehensive agreements with CBS and Tribune, providing additional choice and flexibility to consumers

Bethpage, NY, November 3, 2015

- Cablevision Systems Corporation (NYSE:CVC) today reported financial results for the

third quarter ended September 30, 2015

Third quarter consolidated net revenues decreased 0.8% to $1.613 billion, consolidated adjusted operating cash flow (“AOCF”)

decreased 11.5% to $417.3 million and consolidated operating income decreased 27.5% to $183.1 million, all compared with the prior year period. Third quarter 2015 results included unfavorable items totaling $33.8 million, as discussed later in this release. Excluding these items, consolidated net revenues, AOCF and operating income would have decreased 0.6%, 4.4% and 14.1%, respectively, compared to the prior year period.

Cablevision CEO James L. Dolan said, “The third quarter was highlighted by the announcement of Cablevision’s sale to Altice for $34.90 per share - an acquisition that will deliver significant value for our shareholders. In the meantime, together with Altice we are moving full speed ahead to obtain the necessary regulatory approvals, while we remain focused on delivering superior products and outstanding service to our customers.”

On September 16, 2015, Cablevision and Altice N.V. entered into a definitive agreement pursuant to which Altice has agreed to acquire Cablevision. Please refer to the 'Other Matters' section on page 3 of this release for additional information on this transaction.

See definition of AOCF and Consolidated Free Cash Flow from Continuing Operations included in the discussion of non-GAAP financial measures on page 4 of this earnings release.

Page 1 of 12

Cable includes our Optimum-branded digital cable television, high-speed Internet and voice services as well as Optimum WiFi, the nation's most robust WiFi network.

Cable had its strongest third quarter performance in customer relationships, video and high-speed data since 2012. The Company continued to optimize the density and quality of its WiFi network through the deployment of smart routers and outside access points in high usage areas, ending the third quarter with more than 1.4 million Optimum WiFi access points. Our continued investment in the reliability and performance of our networks has enabled a more innovative product set with flexible service offerings, and enhanced our ability to monitor network performance. In addition, our service initiatives have resulted in an improved customer experience and have led to a decrease in the number of trouble call truck rolls by 25 percent on a year-over-year basis.

Cable net revenues for the third quarter 2015 decreased 0.8% to $1.447 billion, primarily due to fewer video and voice customers compared to the prior year period and lower advertising revenue, partially offset by an increase in high-speed data customers, rate initiatives and continued disciplined pricing strategies. AOCF decreased 10.0% to $423.8 million and operating income decreased 20.4% to $226.9 million, both compared with the prior year period. Third quarter AOCF reflects the revenue decline as well as higher programming, legal, product development and marketing costs, partially offset by lower employee and customer service-related costs, as compared to the prior year period.

In addition, third quarter 2015 results included a $12.8 million reserve for the probable settlement of a class action legal matter (of which $3.3 million is reflected as a reduction in revenue), and an inventory valuation adjustment of $11.3 million.

If these items were excluded, net revenues, AOCF and operating income would have decreased 0.5%, 4.8% and 11.9%, respectively, compared to the prior year period.

The following table illustrates the change in the Cable customer base during the third quarter of 2015:

Customer Data

(rounded to nearest thousand)

Net Gain/(Loss)

Total Customers

High-Speed Data

Serviceable Passings

Total customers are defined as the number of households/businesses that receive at least one of the Company's services.

Lightpath

Lightpath is a premier provider of integrated business communications solutions to large and mid-sized commercial organizations across the New York metropolitan area.

For the third quarter 2015, Lightpath net revenues increased 3.8% to $91.2 million, AOCF increased 7.4% to $41.9 million and operating income increased 5.7% to $17.9 million, each as compared with the prior year period. Third quarter results primarily reflect an increase in revenue from Ethernet services.

Page 2 of 12

Other principally consists of Newsday, News 12 Networks, Cablevision Media Sales Corporation and certain other businesses and unallocated corporate costs.

Third quarter net revenues decreased 5.6% to $83.6 million, primarily due to lower advertising revenue at Newsday. The AOCF deficit increased 27.4% to $48.3 million and operating loss increased 24.7% to $61.7 million, all compared with the prior year period. Third quarter AOCF reflects lower revenue and higher corporate costs, partially offset by a decrease in expenses at Newsday due to lower operating costs.

In addition, third quarter 2015 results included merger-related costs of $9.7 million. If these costs were excluded, the AOCF deficit and operating loss would have increased 1.8% and 5.1%, respectively, compared to the prior year period.

On September 16, 2015, Cablevision and Altice N.V. entered into a definitive agreement pursuant to which Altice has agreed to acquire Cablevision for $34.90 in cash for each share of Cablevision Class A and Class B common stock.

Due to the pending acquisition by Altice, Cablevision will not hold a third quarter earnings conference call and will discontinue conference calls to discuss its...


More