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Csc Holdings Llc (784681) SEC Filing 10-K Annual report for the fiscal year ending Tuesday, December 31, 2013

Csc Holdings Llc

CIK: 784681

Exhibit 99.1
 
 
FOR IMMEDIATE RELEASE

CABLEVISION SYSTEMS CORPORATION
REPORTS FOURTH QUARTER AND FULL YEAR 2013 RESULTS
 
Bethpage, N.Y., February 26, 2014
- Cablevision Systems Corporation (NYSE:CVC) today reported financial results for the fourth quarter and full year ended December 31, 2013. 1

Fourth quarter consolidated net revenues increased 4.5% to $1.583 billion, consolidated adjusted operating cash flow (“AOCF”)2 increased 49.1% to $456.5 million and consolidated operating income increased $137.7 million to $168.6 million, all compared with the prior year period.  Footnote 3 on page 4 of this release details certain items affecting the comparability of our results for 2013 and 2012.  Excluding these items, consolidated net revenues, AOCF and operating income would have increased 2.3%, 7.5% and 11.8%, respectively, all compared with the prior year period.

For full year 2013, consolidated net revenues increased 1.6% to $6.232 billion, consolidated AOCF decreased 3.0% to $1.685 billion and consolidated operating income decreased 9.1% to $699.2 million, all compared with 2012.  Footnote 3 on page 4 of this release details certain items affecting the comparability of our results for 2013 and 2012.  Excluding these items, net revenue would have grown 1.3%, consolidated AOCF would have decreased 8.6% and operating income would have decreased 20.3%, all compared with the prior full year period.

Operating highlights for the fourth quarter include:

· Average Monthly Cable Revenue per Customer ("RPC") of $147.34, an increase of $6.43 or 4.6%, compared with the prior year period (adjusted for 2012 storm related credits).  Average Monthly Cable Revenue per Video Customer ("RPS") was $166.66.
· Cable advertising revenue growth of 2.6%, compared with the prior year period.
· 2013 Consolidated Free Cash Flow from Continuing Operations of $184.6 million.

Cablevision President and CEO James L. Dolan said, "Cablevision made substantial headway on a number of fronts in 2013, and generated stronger financial results in the fourth quarter.  We improved the quality of our network, increased the efficiency of our operations and strengthened the Company's financial profile.  Our focus on improving the customer experience resulted in the successful roll-out of new and enhanced products as well as better service for our customers.  We look forward to continuing this progress in 2014.”

Page 1 of 13
See notes on page 4.

Cable Television and Lightpath results, which were previously included in the Telecommunications segment, have been reclassified into two separate reportable segments, Cable and Lightpath, for all periods presented.

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

Cable net revenues for the fourth quarter 2013 increased 5.2% to $1.411 billion, AOCF increased 42.6% to $462.3 million and operating income increased 140.3% to $259.9 million, all compared with the prior year period.   Fourth quarter net revenue growth primarily reflects higher data rates, higher video revenues and the impact of Superstorm Sandy in 2012.  Fourth quarter 2013 AOCF growth reflects the increase in revenue and lower operating costs due primarily to the impact of Superstorm Sandy in 2012 and lower customer related costs in 2013, partially offset by higher programming costs.

Excluding the impact of the items highlighted in footnote 3 on page 4 of this release, net revenues, AOCF and operating income would have increased 2.6%, 5.3% and 15.8%, respectively, all compared with the prior year period.

Full year 2013 net revenues rose 1.8% to $5.576 billion, AOCF decreased 3.3% to $1.740 billion, and operating income decreased 6.3% to $952.5 million, all compared with the prior year period.  Excluding the impact of the items highlighted in footnote 3 on page 4 of this release, net revenues would have increased 1.4% while AOCF and operating income would have decreased 8.5% and 15.1%, respectively.

The following table illustrates the change in the Cable customer base during the fourth quarter of 2013:

Customer Data
(rounded to nearest thousand)

 
 
Total
September 30, 2013
   
 
Net Gain/(Loss)
   
Total
December 31, 2013
 
 
 
   
   
 
Total Customers(a)
   
3,195
     
(7
)
   
3,188
 
 
                       
Video
   
2,831
     
(18
)
   
2,813
 
High-Speed Data
   
2,774
     
6
     
2,780
 
Voice
   
2,272
     
-
     
2,272
 
 
                       
Serviceable Passings
   
5,013
     
21
     
5,034
 

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

Page 2 of 13
See notes on page 4.

Lightpath
Lightpath is a premier provider of integrated business communications solutions to larger companies across the New York metropolitan area.

For fourth quarter 2013, Lightpath net revenues increased 3.9% to $85.0 million, AOCF increased 14.8% to $37.0 million and operating income increased 136.1% to $13.5 million, each as compared with the prior year period.  Fourth quarter results reflect an increase in revenue from Ethernet services and a higher overall gross margin.

Excluding the impact of the items highlighted in footnote 3 on page 4 of this release, net revenues, AOCF and operating income would have increased 3.8%, 7.9% and 73.7%, respectively.

Full year 2013 net revenues rose 2.7% to $332.6 million, AOCF increased 8.0% to $146.2 million, and operating income increased 37.7% to $55.7 million, all as compared with the prior year period.  Excluding the impact of the items highlighted in footnote 3 on page 4 of this release, net revenues, AOCF and operating income would have increased 2.8%, 6.6% and 31.8%, respectively.

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

Fourth quarter 2013 net revenues decreased 4.9% to $97.0 million, AOCF deficit decreased 15.1% to a deficit of $42.8 million and operating loss increased 26.3% to $104.8 million all compared with the prior year period.  Fourth quarter AOCF results reflect lower operating costs, primarily related to reduced activity at MSG Varsity, partially offset by a decline in advertising revenue at Newsday.

Excluding the impact of the items highlighted in footnote 3 on page 4 of this release, net revenues would have decreased 5.1%, AOCF deficit would have decreased 12.4% and operating loss would have increased 28.8%, all compared with the prior year period.

Full year 2013 net revenues decreased 2.0% to $362.0 million, AOCF deficit increased 2.2% to a deficit of $201.1 million and operating loss increased 7.1% to a loss of $308.9 million.  Excluding the impact of certain items highlighted in footnote 3 on page 4 of this release, the AOCF deficit and operating loss would have increased 3.1% and 7.7%, respectively.

Other Matters
On February 25, 2014, the Board of Directors of Cablevision declared a quarterly dividend of $0.15 per share on each outstanding share of the Company’s Cablevision NY Group Class A Stock and Cablevision NY Group Class B Stock.  This quarterly dividend is payable on April 3, 2014 to shareholders of record at the close of business on March 14, 2014.

There were no stock repurchases during 2013.  As of December 31, 2013, the Company had approximately $455 million available under its stock repurchase authorization.
Page 3 of 13
See notes on page 4.

NOTES:
1. Financial results of Bresnan Broadband Holdings, LLC (Bresnan Cable) and substantially all of Clearview Cinemas (Clearview) are reflected in the Company’s consolidated financial statements as discontinued operations for all periods presented.
2. See definition of AOCF and Consolidated Free Cash Flow from Continuing Operations included in the discussion of non-GAAP financial measures on page 5 of this earnings release.
3. The following charts highlight certain items affecting comparability between 2013 and 2012 results.  This information should be read in conjunction with the reconciliation of AOCF to net income on page 7 of this release:

Revenues, Net
 
Cable
   
Lightpath
   
Other
   
Total Co.
   
 
 
 
   
Q4
   
FY
     
Q4
   
FY
     
Q4
   
FY
     
Q4
   
FY
 
 
         
           
           
           
 
2013 reported revenue
   
1,410.9
     
5,576.0
     
85.0
     
332.6
     
97.0
     
362.0
     
1,583.5
     
6,232.2
 
 
                                                               
2012 reported revenue
   
1,341.4
     
5,479.1
     
81.8
     
323.8
     
101.9
     
369.3
     
1,515.1
     
6,131.7
 
Storm related credits
   
33.1
     
33.1
     
0.1
     
0.1
     
0.2
     
0.2
     
33.3
     
33.3
 
Voice carrier settlement(a)
   
-
     
(11.7
)
   
-
     
(0.3
)
   
-
     
-
     
-
     
(12.0
)
Adjusted 2012 revenue
   
1,374.5
     
5,500.5
     
81.9
     
323.6
     
102.2
     
369.5
     
1,548.4
     
6,153.0
 
 
                                                               
Reported change (%)
   
5.2
%
   
1.8
%
   
3.9
%
   
2.7
%
   
(4.9
)%
   
(2.0
)%
   
4.5
%
   
1.6
%
Adjusted change (%)
   
2.6
%
   
1.4
%
   
3.8
%
   
2.8
%
   
(5.1
)%
   
(2.0
)%
   
2.3
%
   
1.3
%

AOCF
 
Cable
   
Lightpath
   
Other
   
Total Co.
   
 
 
 
   
Q4
   
FY
     
Q4
   
FY
     
Q4
   
FY
     
Q4
   
FY
 
 
         
           
           
           
 
2013 reported AOCF
   
462.3
     
1,739.5
     
37.0
     
146.2
     
(42.8
)
   
(201.1
)
   
456.5
     
1,684.6
 
 
                                                               
2012 reported AOCF
   
324.3
     
1,798.0
     
32.3
     
135.4
     
(50.5
)
   
(196.7
)
   
306.1
     
1,736.8
 
Storm costs
   
105.5
     
105.5
     
2.1
     
2.1
     
1.6
     
1.6
     
109.2
     
109.2
 
Voice carrier settlement(a)
   
-
     
(11.7
)
   
-
     
(0.3
)
   
-
     
-
     
-
     
(12.0
)
Contract termination cost(b)
   
9.4
     
9.4
     
-
     
-
     
-
     
-
     
9.4
     
9.4
 
2012 AOCF excluding items
   
439.2
     
1,901.2
     
34.3
     
137.2
     
(48.9
)
   
(195.1
)
   
424.6
     
1,843.3
 
 
                                                               
Reported change (%)
   
42.6
%
   
(3.3
)%
   
14.8
%
   
8.0
%
   
15.1
%
   
(2.2
)%
   
49.1
%
   
(3.0
)%
Adjusted change (%)
   
5.3
%
   
(8.5
)%
   
7.9
%
   
6.6
%
   
12.4
%
   
(3.1
)%
   
7.5
%
   
(8.6
)%

Operating Income
 
Cable
   
Lightpath
   
Other
   
Total Co.
 
 
   
Q4
   
FY
     
Q4
   
FY
     
Q4
   
FY
     
Q4
   
FY
 
 
         
           
           
           
 
2013 reported operating income
   
 
259.9
     
 
952.5
     
 
13.5
     
 
55.7
     
 
(104.8
 
)
   
 
(308.9
 
)
   
 
168.6
     
 
699.2
 
 
                                                               
2012 reported operating income
   
108.1
     
1,017.0
     
5.7
     
40.5
     
(82.9
)
   
(288.4
)
   
30.9
     
769.0
 
Storm costs
   
107.0
     
107.0
     
2.1
     
2.1
     
1.6
     
1.6
     
110.6
     
110.6
 
Voice carrier settlement(a)
   
-
     
(11.7
)
   
-
     
(0.3
)
   
-
     
-
     
-
     
(12.0
)
Contract termination cost(b)
   
9.4
     
9.4
     
-
     
-
     
-
     
-
     
9.4
     
9.4
 
Adjusted 2012 operating income
   
224.5
     
1,121.6
     
7.8
     
42.3
     
(81.3
)
   
(286.8
)
   
150.9
     
877.0
 
 
                                                               
Reported change (%)
   
140.3
%
   
(6.3
)%
   
136.1
%
   
37.7
%
   
(26.3
)%
   
(7.1
)%
 
nm
     
(9.1
)%
Adjusted change (%)
   
15.8
%
   
(15.1
)%
   
73.7
%
   
31.8
%
   
(28.8
)%
   
(7.7
)%
   
11.8
%
   
(20.3
)%

Note:
All values in charts above represent dollars in millions unless otherwise labeled.  Certain amounts may not recalculate due to intersegment eliminations and rounding.
 
(a) Reflects the resolution of a voice access dispute related to prior years.
(b) Contract termination cost related to an equipment purchase commitment.
Page 4 of 13
Non-GAAP Financial Measures
We define adjusted operating cash flow (“AOCF”), which is a non-GAAP financial measure, as operating income (loss) before depreciation and amortization (including impairments), excluding share-based compensation expense and restructuring charges or credits.  Because it is based upon operating income (loss), AOCF also excludes interest expense (including cash interest expense) and other non-operating income and expense items.  We believe that the exclusion of share-based compensation expense allows investors to better track the performance of the various operating units of our business without regard to expense associated with awards that are not expected to be made in cash, in the case of restricted shares, restricted stock units and stock options, and the distortive effects of fluctuating stock prices in the case of stock appreciation rights.

We present AOCF as a measure of our ability to service our debt and make continuing investments, including in our capital infrastructure.  We believe AOCF is an appropriate measure for evaluating the operating performance of our business segments and the company on a consolidated basis.  AOCF and similar measures with similar titles are common performance measures used by investors, analysts and peers to compare performance in our industry.  Internally, we use net revenues and AOCF measures as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators.  AOCF should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with U.S. generally accepted accounting principles ("GAAP").  Since AOCF is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies.  For a reconciliation of AOCF to operating income (loss), please see page 7 of this release.

We define Consolidated Free Cash Flow from Continuing Operations (“Free Cash Flow”), which is a non-GAAP financial measure, as net cash from operating activities (continuing operations) plus any excess tax benefit related to share-based awards less capital expenditures (continuing operations), all of which are reported in our Consolidated Statement of Cash Flows.  Net cash from operating activities excludes net cash from operating activities of our discontinued operations.  We believe the most comparable GAAP financial measure of our liquidity is net cash from operating activities.  We believe that Free Cash Flow is useful as an indicator of our overall liquidity, as the amount of Free Cash Flow generated in any period is representative of cash that is available for debt repayment and other discretionary and non-discretionary cash uses.  It is also one of several indicators of our ability to make investments and/or return capital to our shareholders.  We also believe that Free Cash Flow is one of several benchmarks used by analysts and investors who follow our industry for comparison of our liquidity with other companies in our industry, although our measure of Free Cash Flow may not be directly comparable to similar measures reported by other companies.
Page 5 of 13

COMPANY DESCRIPTION
Cablevision Systems Corporation (NYSE: CVC) is a leading media and telecommunications company, serving millions of households and businesses throughout the greater New York area. Providing quality products that keep customers connected, Cablevision offers Optimum-branded digital cable television, high-speed Internet and phone services as well as Optimum WiFi, the nation's most robust wireless Internet network.  Cablevision’s Lightpath subsidiary is a premier provider of integrated business communications solutions for larger companies.  Through its local media and programming properties – News 12 Networks, Newsday Media Group and MSG Varsity – Cablevision also delivers news and information created specifically for the communities it serves. Additional information about Cablevision is available at www.cablevision.com.

This earnings release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the company and its business, operations, financial condition and the industries in which it operates and the factors described in the company’s filings with the Securities and Exchange Commission, including the sections entitled "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" contained therein.  The company disclaims any obligation to update any forward-looking statements contained herein.

Contacts:
Charles Schueler
 
Bret Richter
 
Executive Vice President
 
Senior Vice President
 
Media and Community Relations
 
Financial Strategy & Development
 
(516) 803-1013
 
(516) 803-2270

Cablevision’s Website:  www.cablevision.com
The conference call will be webcast live today at 10:00 a.m. ET
Conference call dial-in number is (888) 694-4641/ Conference ID Number 58643221/ Conference call
replay number (855) 859-2056/ Conference ID Number 58643221 until March 5, 2014.
Page 6 of 13

CABLEVISION SYSTEMS CORPORATION
CONDENSED CONSOLIDATED OPERATIONS DATA AND RECONCILIATION
(Dollars in thousands, except per share data)
(Unaudited)

 
 
Three Months Ended
December 31,
   
Twelve Months Ended
December 31,
 
 
 
2013(a)
   
2012(a)
   
2013(a)
   
2012(a)
 
 
 
   
   
   
 
Revenues, net
 
$
1,583,468
   
$
1,515,112
   
$
6,232,152
   
$
6,131,675
 
 
                               
Adjusted operating cash flow
   
456,494
     
306,081
     
1,684,636
     
1,736,758
 
Share-based compensation expense
   
(12,171
)
   
(23,446
)
   
(52,715
)
   
(60,705
)
Restructuring credit (expense)
   
(24,132
)
   
709
     
(23,550
)
   
770
 
Operating income before depreciation and amortization
   
420,191
     
283,344
     
1,608,371
     
1,676,823
 
Depreciation and amortization (including impairments)
   
251,544
     
252,425
     
909,147
     
907,775
 
Operating income
   
168,647
     
30,919
     
699,224
     
769,048
 
Other income (expense):
                               
Interest expense, net
   
(142,775
)
   
(158,639
)
   
(600,637
)
   
(660,074
)
Gain on sale of affiliate interests
   
-
     
716
     
-
     
716
 
Gain on investments, net
   
146,276
     
35,178
     
313,167
     
294,235
 
Loss on equity derivative contracts, net
   
(105,428
)
   
(26,922
)
   
(198,688
)
   
(211,335
)
Loss on interest rate swap contracts, net
   
-
     
-
     
-
     
(1,828
)
Gain (loss) on extinguishment of debt and write-off of deferred financing costs, net
   
604
     
(5,161
)
   
(22,542
)
   
(66,213
)
Miscellaneous, net
   
763
     
492
     
2,436
     
1,770
 
Income (loss) from continuing operations before income taxes
   
68,087
     
(123,417
)
   
192,960
     
126,319
 
Income tax benefit (expense)
   
(21,599
)
   
49,550
     
(65,635
)
   
(51,994
)
Income (loss) from continuing operations
   
46,488
     
(73,867
)
   
127,325
     
74,325
 
Income from discontinued operations, net of income taxes
   
4,800
     
190,451
     
338,316
     
159,288
 
Net income
   
51,288
     
116,584
     
465,641
     
233,613
 
Net loss (income) attributable to noncontrolling interests
   
554
     
(46
)
   
20
     
(90
)
Net income attributable to Cablevision Systems Corporation stockholders
 
$
51,842
   
$
116,538
   
$
465,661
   
$
233,523
 
 
                               
Basic income (loss) per share attributable to Cablevision Systems Corporation stockholders:
                               
Income (loss) from continuing operations
 
$
0.18
   
$
(0.29
)
 
$
0.49
   
$
0.28
 
Income from discontinued operations
 
$
0.02
   
$
0.74
   
$
1.30
   
$
0.61
 
Net income
 
$
0.20
   
$
0.45
   
$
1.79
   
$
0.89
 
Basic weighted average common shares (in thousands)
   
261,622
     
258,348
     
260,763
     
262,258
 
 
                               
Diluted income (loss) per share attributable to Cablevision Systems Corporation stockholders:
                               
Income (loss) from continuing operations
 
$
0.18
   
$
(0.29
)
 
$
0.48
   
$
0.28
 
Income from discontinued operations
 
$
0.02
   
$
0.74
   
$
1.27
   
$
0.60
 
Net income
 
$
0.19
   
$
0.45
   
$
1.75
   
$
0.87
 
Diluted weighted average common shares (in thousands)
   
267,263
     
258,348
     
265,935
     
267,330
 
 
                               
Amounts attributable to Cablevision Systems Corporation stockholders:
                               
Income (loss) from continuing operations, net of income taxes
 
$
47,042
   
$
(73,913
)
 
$
127,345
   
$
74,235
 
Income from discontinued operations, net of income taxes
   
4,800
     
190,451
     
338,316
     
159,288
 
Net income
 
$
51,842
   
$
116,538
   
$
465,661
   
$
233,523
 

(a) Operating results of Bresnan Cable and Clearview have been reflected in discontinued operations for all periods presented as applicable.
Page 7 of 13

CABLEVISION SYSTEMS CORPORATION
CONDENSED CONSOLIDATED OPERATIONS DATA AND RECONCILIATION (Cont’d)
(Dollars in thousands, except per share data)
(Unaudited)

ADJUSTMENTS TO RECONCILE ADJUSTED OPERATING CASH FLOW TO
OPERATING INCOME (LOSS)

The following is a description of the adjustments to operating income (loss) in arriving at adjusted operating cash flow included in this earnings release:

· Depreciation and amortization (including impairments).  This adjustment eliminates depreciation and amortization and impairments of long-lived assets in all periods.
· Restructuring credit (expense).  This adjustment eliminates the expense or credit associated with restructuring activities related to the elimination of positions, facility realignment, asset impairments and other related activities in all periods.
· Share-based compensation expense.  This adjustment eliminates the compensation expense relating to stock options, stock appreciation rights, restricted stock, and restricted stock units granted under our employee stock plans and non-employee director plans in all periods.

CONSOLIDATED FREE CASH FLOW FROM CONTINUING OPERATIONS(a)

 
 
Twelve Months Ended December 31,
 
 
 
2013(b)
   
2012(b)
 
 
 
   
 
Net cash provided by operating activities(c)
 
$
1,134,977
   
$
1,061,208
 
Add:  excess tax benefit related to share-based awards
   
1,280
     
-
 
Less:  capital expenditures(d)
   
(951,679
)
   
(991,586
)
Consolidated free cash flow from continuing operations
 
$
184,578
   
$
69,622
 
 
(a) See Non-GAAP Financial Measures on page 5 of this release for a definition and discussion of Free Cash Flow from Continuing Operations.
(b) Operating results of Bresnan Cable and Clearview have been reflected in discontinued operations for all periods presented.
(c) The level of net cash provided by operating activities will continue to depend on a number of variables in addition to our operating performance, including the amount and timing of our interest payments and other working capital items.
(d) See page 13 of this release for additional details relating to capital expenditures.
Page 8 of 13

CABLEVISION SYSTEMS CORPORATION
CONSOLIDATED RESULTS FROM CONTINUING OPERATIONS
(Dollars in thousands)
(Unaudited)
 
REVENUES, NET

 
 
Three Months Ended
December 31,
   
%
 
 
 
2013(a)
   
2012(a)
   
Change
 
 
 
   
   
 
Cable
 
$
1,410,859
   
$
1,341,364
     
5.2
%
Lightpath
   
85,013
     
81,834
     
3.9
%
Other(b)
   
96,957
     
101,941
     
(4.9
)%
Eliminations(c)
   
(9,361
)
   
(10,027
)
   
6.6
%
Total Cablevision
 
$
1,583,468
   
$
1,515,112
     
4.5
%

 
 
Twelve Months Ended
December 31,
   
%
 
 
 
2013(a)
   
2012(a)
   
Change
 
 
 
   
   
 
Cable
 
$
5,576,011
   
$
5,479,108
     
1.8
%
Lightpath
   
332,609
     
323,776
     
2.7
%
Other(b)
   
362,020
     
369,290
     
(2.0
)%
Eliminations(c)
   
(38,488
)
   
(40,499
)
   
5.0
%
Total Cablevision
 
$
6,232,152
   
$
6,131,675
     
1.6
%

(a) Net revenues of Bresnan Cable and Clearview have been reflected in discontinued operations for all periods presented as applicable.
(b) Represents revenues of Newsday, News 12 Networks, Cablevision Media Sales Corporation and certain other entities.
(c) Represents inter-segment revenues.

Page 9 of 13

CABLEVISION SYSTEMS CORPORATION
CONSOLIDATED RESULTS FROM CONTINUING OPERATIONS (Cont’d)
(Dollars in thousands)
(Unaudited)

ADJUSTED OPERATING CASH FLOW AND OPERATING INCOME (LOSS)


 
 
Adjusted Operating
Cash Flow
   
   
Operating Income
(Loss)
   
 
 
 
Three Months Ended
December 31,
   
%
   
Three Months Ended
December 31,
   
%
 
 
 
2013(a)
   
2012(a)
   
Change
   
2013(a)
   
2012(a)
   
Change
 
 
 
   
   
   
   
   
 
Cable
 
$
462,306
   
$
324,283
     
42.6
%
 
$
259,878
   
$
108,130
     
140.3
%
Lightpath
   
37,022
     
32,262
     
14.8
%
   
13,544
     
5,736
     
136.1
%
Other(b)
   
(42,834
)
   
(50,464
)
   
15.1
%
   
(104,775
)
   
(82,947
)
   
(26.3
)%
Total Cablevision
 
$
456,494
   
$
306,081
     
49.1
%
 
$
168,647
   
$
30,919
   
nm
 

 
 
Adjusted Operating
Cash Flow
   
   
Operating Income
(Loss)
   
 
 
 
Twelve Months Ended
December 31,
   
%
   
Twelve Months Ended
December 31,
   
%
 
 
 
2013(a)
   
2012(a)
   
Change
   
2013(a)
   
2012(a)
   
Change
 
 
 
   
   
   
   
   
 
Cable
 
$
1,739,529
   
$
1,798,041
     
(3.3
)%
 
$
952,462
   
$
1,017,003
     
(6.3
)%
Lightpath
   
146,208
     
135,409
     
8.0
%
   
55,685
     
40,453
     
37.7
%
Other(b)
   
(201,101
)
   
(196,692
)
   
(2.2
)%
   
(308,923
)
   
(288,408
)
   
(7.1
)%
Total Cablevision
 
$
1,684,636
   
$
1,736,758
     
(3.0
)%
 
$
699,224
   
$
769,048
     
(9.1
)%

(a) Operating results of Bresnan Cable and Clearview have been reflected in discontinued operations for all periods presented as applicable.
(b) Includes unallocated corporate general and administrative costs and the operating results of Newsday, News 12 Networks, Cablevision Media Sales Corporation, MSG Varsity and certain other entities.  In addition, amounts include costs historically allocated to Bresnan Cable and Clearview that were not eliminated as a result of the Bresnan Cable and Clearview sales.
Page 10 of 13

CABLEVISION SYSTEMS CORPORATION
SUMMARY OF CABLE OPERATING STATISTICS
(Unaudited)


CABLE
 
December 31,
2013
   
September 30,
2013
   
December 31,
2012(a)(b)
 
 
   
   
 
(in thousands)
 
   
   
 
Total Customers(c)
   
3,188
     
3,195
     
3,230
 
Video Customers
   
2,813
     
2,831
     
2,893
 
High-Speed Data Customers
   
2,780
     
2,774
     
2,763
 
Voice Customers
   
2,272
     
2,272
     
2,264
 
 
                          
 
Serviceable Passings (in thousands)(d)
   
5,034
     
5,013
     
4,979
 
 
                       
Penetration
                       
Total Customers to Serviceable Passings
   
63.3
%
   
63.7
%
   
64.9
%
Video Customers to Serviceable Passings
   
55.9
%
   
56.5
%
   
58.1
%
High-Speed Data Customers to Serviceable Passings
   
55.2
%
   
55.3
%
   
55.5
%
Voice Customers to Serviceable Passings
   
45.1
%
   
45.3
%
   
45.5
%
   
 
 
                       
Revenues for the three months ended
(dollars in millions)
                       
 
                       
Video(e)
 
$
792
   
$
797
   
$
764
 
High-Speed Data
   
339
     
336
     
302
 
Voice
   
211
     
210
     
207
 
Advertising
   
44
     
40
     
43
 
Other(f)
   
25
     
24
     
25
 
Total Cable Revenue
 
$
1,411
   
$
1,407
   
$
1,341
 
       

Average Monthly Cable Revenue per Customer (“RPC”)(g)
 
$
147.34
   
$
146.11
   
$
137.51
 

Average Monthly Cable Revenue per Video Customer (“RPS”)(h)
 
$
166.66
   
$
164.61
   
$
153.22
 

(a) Operating results of Bresnan Cable have been reflected in discontinued operations for all periods presented as applicable.
(b) Amounts exclude customers located in the areas most severely impacted by Superstorm Sandy who we were unable to contact and those whose billing we decided to suspend temporarily during restoration of their homes.  As of December 31, 2012, these customers represented approximately 11 thousand total customers, 10 thousand video customers, 9 thousand high-speed data customers and 7 thousand voice customers.  Due to the impact of Superstorm Sandy, we suspended our normal collection efforts and non-pay disconnect policy during the fourth quarter of 2012.  As a result, the customer information in the table above includes delinquent customer accounts that exceeded our normal disconnect timeline as of December 31, 2012.  Of these delinquent accounts, we estimated the number of accounts that we believed would be disconnected in 2013 when our normal collection and disconnect procedures resumed in the first quarter of 2013.  Based on this information, we reduced our customer counts as of December 31, 2012 by 27 thousand total customers, 24 thousand video customers, 23 thousand high-speed data customers and 19 thousand voice customers, respectively.
(c) Represents the number of households/businesses that receive at least one of the Company's services.
(d) Includes residential and commercial passings.
(e) Includes equipment rental, DVR, video-on-demand and pay-per-view revenue.
(f) Includes installation revenue, home shopping, advertising sales commissions and other product offerings.
(g) RPC is calculated by dividing average monthly cable GAAP revenue for the quarter by the average number of total customers for the quarter.  December 31, 2012 reported RPC reflects the impact of storm related credits, which if excluded, would have resulted in an adjusted RPC of $140.91.
(h) RPS is calculated by dividing average monthly cable GAAP revenue for the quarter by the average number of video customers for the quarter.  December 31, 2012 reported RPS reflects the impact of storm related credits, which if excluded, would have resulted in an adjusted RPS of $157.01.
Page 11 of 13

CABLEVISION SYSTEMS CORPORATION
CAPITALIZATION AND LEVERAGE
(Dollars in thousands)
(Unaudited)
 
CAPITALIZATION

 
 
December 31, 2013
 
 
 
 
Cash and cash equivalents
 
$
702,224
 
 
       
Credit facility debt
 
$
3,766,145
 
Senior notes and debentures
   
5,138,515
 
Collateralized indebtedness
   
817,950
 
Capital lease obligations and other
   
36,624
 
Debt
 
$
9,759,234
 

LEVERAGE

Debt
 
$
9,759,234
 
Less: Collateralized indebtedness of unrestricted subsidiaries(a)
   
817,950
 
Cash and cash equivalents
   
702,224
 
Net debt
 
$
8,239,060
 
 
       
 
 
Leverage Ratios(b)
 
Consolidated net debt to AOCF leverage ratio(a)(c)
   
4.5
x
Restricted Group leverage ratio (Credit Facility Test)(d)(e)
   
3.0
x
CSC Holdings notes and debentures leverage ratio(e)(f)
   
3.4
x
Cablevision senior notes leverage ratio(e)(g)
   
5.3
x

(a) Collateralized indebtedness is excluded from the leverage calculation because it is viewed as a forward sale of the stock of unaffiliated companies and the Company's only obligation at maturity is to deliver, at its option, the stock or its cash equivalent.
(b) Leverage ratios are based on face amount of outstanding debt.
(c) AOCF is annualized based on the fourth quarter 2013 results, as reported.
(d) Reflects the net debt to cash flow ratio as defined in the CSC Holdings’ credit facility debt agreement (which excludes approximately $2.8 billion of Cablevision’s senior notes and the debt and cash flows related to CSC Holdings’ unrestricted subsidiaries which are primarily comprised of Newsday).  The annualized AOCF (as defined) used in the Restricted Group leverage ratio was $1.882 billion.
(e) Includes CSC Holdings’ guarantee of Newsday LLC’s $480 million senior secured credit facility.
(f) Reflects the debt to cash flow ratio applicable under CSC Holdings’ senior notes and debentures indentures (which excludes approximately $2.8 billion of Cablevision’s senior notes and the debt and cash flows related to CSC Holdings’ unrestricted subsidiaries which are primarily comprised of Newsday).  The annualized AOCF (as defined) used in the CSC Holdings notes and debentures leverage ratio was $1.812 billion.
(g) Adjusts the debt to cash flow ratio as calculated under the CSC Holdings notes and debentures leverage ratio to include approximately $2.8 billion of Cablevision’s senior notes plus $611 million of Cablevision’s senior notes that were contributed to Newsday Holdings LLC.
Page 12 of 13

CABLEVISION SYSTEMS CORPORATION
CAPITAL EXPENDITURES
(Dollars in thousands)
(Unaudited)

 
 
Three Months Ended
December 31,
 
 
 
2013
   
2012(a)
 
CAPITAL EXPENDITURES
 
   
 
 
 
   
 
Consumer premise equipment
 
$
40,905
   
$
64,151
 
Scalable infrastructure
   
68,583
     
66,475
 
Line extensions
   
7,639
     
5,437
 
Upgrade/rebuild
   
7,935
     
5,701
 
Support
   
51,025
     
68,664
 
Cable
   
176,087
     
210,428
 
Lightpath
   
29,881
     
22,881
 
Other(b)
   
4,767
     
16,045
 
Total Cablevision
 
$
210,735
   
$
249,354
 

 
 
Twelve Months Ended
December 31,
 
 
 
2013(a)
   
2012(a)
 
CAPITAL EXPENDITURES
 
   
 
 
 
   
 
Consumer premise equipment
 
$
251,886
   
$
299,112
 
Scalable infrastructure
   
311,162
     
305,720
 
Line extensions
   
29,040
     
28,666
 
Upgrade/rebuild
   
34,402
     
19,525
 
Support
   
180,188
     
197,038
 
Cable
   
806,678
     
850,061
 
Lightpath
   
111,830
     
93,460
 
Other(b)
   
33,171
     
48,065
 
Total Cablevision
 
$
951,679
   
$
991,586
 

(a) Capital expenditures for Bresnan Cable and Clearview have been reflected in discontinued operations.
(b) Other primarily includes Newsday, News 12 Networks, Cablevision Media Sales Corporation, MSG Varsity and Corporate.
 
 
Page 13 of 13


The following information was filed by Csc Holdings Llc on Wednesday, February 26, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Document And Entity Information
Schedule Ii, Valuation And Qualifying Accounts
Schedule Ii, Valuation And Qualifying Accounts (details)
Consolidated Balance Sheets
Consolidated Balance Sheets (parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Comprehensive Income
Consolidated Statements Of Income
Consolidated Statements Of Income (parenthetical)
Consolidated Statements Of Stockholders' Deficiency
Benefit Plans
Benefit Plans (tables)
Benefit Plans, Asset Allocation And Fair Values Of Pension Plan Assets (details)
Benefit Plans, Benefit Payments And Defined Contribution Benefit Plans (details)
Benefit Plans, Defined Benefit Plans (details)
Benefit Plans, Plan Assumptions For Defined Benefit Plans (details)
Commitments And Contingencies
Commitments And Contingencies (tables)
Commitments And Contingencies, Commitments (details)
Commitments And Contingencies, Legal Matters (details)
Debt
Debt (tables)
Debt, Credit Facility Debt (details)
Debt, Issuance Of Debt Securities (details)
Debt, Newsday Llc Credit Facility (details)
Debt, Redemptions And Repurchases Of Csc Holdings Senior Notes (details)
Debt, Repurchases Of Cablevision Senior Notes (details)
Debt, Restricted Group Credit Facility (details)
Debt, Senior Notes And Debentures (details)
Debt, Summary Of Debt Maturities (details)
Derivative Contracts And Collateralized Indebtedness
Derivative Contracts And Collateralized Indebtedness (tables)
Derivative Contracts And Collateralized Indebtedness, Impact And Location Of Derivative Instruments Within Consolidated Statements Of Operations (details)
Derivative Contracts And Collateralized Indebtedness, Location Of Assets And Liabilities With The Consolidated Balance Sheets (details)
Derivative Contracts And Collateralized Indebtedness, Settlements Of Collateralized Indebtedness (details)
Description Of Business, Related Matters And Basis Of Presentation
Description Of Business, Related Matters And Basis Of Presentation (details)
Description Of Business, Related Matters And Basis Of Presentation (policies)
Discontinued Operations And Assets And Liabilities Held For Sale
Discontinued Operations And Assets And Liabilities Held For Sale (tables)
Discontinued Operations And Assets And Liabilities Held For Sale, Assets And Liabilities Held For Sale (details)
Discontinued Operations And Assets And Liabilities Held For Sale, Litigation Settlement And Bresnan Cable Legal Matters (details)
Discontinued Operations And Assets And Liabilities Held For Sale, Operating Results Of Discontinued Operations (details)
Equity And Long-term Incentive Plans
Equity And Long-term Incentive Plans (tables)
Equity And Long-term Incentive Plans, Cablevision's Equity Plans (details)
Equity And Long-term Incentive Plans, Long-term Incentive Plans (details)
Equity And Long-term Incentive Plans, Restricted Stock Award Activity (details)
Equity And Long-term Incentive Plans, Stock Option Award Activity (details)
Equity And Long-term Incentive Plans, Valuation Assumptions (details)
Fair Value Measurement
Fair Value Measurement (tables)
Fair Value Measurement, Assets And Liabilities Measured At Fair Value On A Recurring Basis (details)
Fair Value Measurement, Fair Value Of Financial Instruments (details)
Income Taxes
Income Taxes (details)
Income Taxes (tables)
Intangible Assets
Intangible Assets (tables)
Intangible Assets, Goodwill (details)
Intangible Assets, Intangible Assets (details)
Interim Financial Information (unaudited)
Interim Financial Information (unaudited) (details)
Interim Financial Information (unaudited) (tables)
Operating Leases
Operating Leases (details)
Operating Leases (tables)
Other Matters
Other Matters (details)
Other Matters (tables)
Property, Plant And Equipment
Property, Plant And Equipment (details)
Property, Plant And Equipment (tables)
Related Party Transactions
Related Party Transactions (details)
Related Party Transactions (tables)
Restructuring And Impairment Charges
Restructuring And Impairment Charges (details)
Restructuring And Impairment Charges (tables)
Segment Information
Segment Information (tables)
Segment Information, Capital Expenditures By Reportable Segment (details)
Segment Information, Reconciliation Of Reportable Segments To Consolidated Balances (details)
Segment Information, Reportable Segments (details)
Segment Information, Sources Of Revenue For Cable Segment (details)
Subsequent Events
Subsequent Events (details)
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies (policies)
Summary Of Significant Accounting Policies (tables)
Summary Of Significant Accounting Policies, Common Stock Of Cablevision (details)
Summary Of Significant Accounting Policies, Csc Holdings Membership Interests (details)
Summary Of Significant Accounting Policies, Dividends (details)
Summary Of Significant Accounting Policies, Income (loss) Per Common Share (details)
Summary Of Significant Accounting Policies, Summary Of Significant Accounting Policies (details)
Supplemental Cash Flow Information
Supplemental Cash Flow Information (details)
Supplemental Cash Flow Information (tables)
CIK: 784681
Form Type: 10-K Annual Report
Accession Number: 0001140361-14-009776
Submitted to the SEC: Wed Feb 26 2014 4:49:54 PM EST
Accepted by the SEC: Wed Feb 26 2014
Period: Tuesday, December 31, 2013
Industry: Cable And Other Pay Television Services

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