February 12, 2013

Comcast Reports 4th Quarter and Year End 2012 Results

2012 Consolidated Revenue Increased 12.0%, Operating Cash Flow Increased 8.8% and Operating Income Increased 13.6%

2012 Earnings per Share Increased 52.0% to $2.28; Excluding Gains on Asset Sales and Other Adjustments, EPS Increased 22.2% to $1.93

Free Cash Flow Increased 13.3% to $7.9 Billion

Dividends and Share Repurchases Totaled $4.6 Billion in 2012

Dividend to Increase 20% to $0.78 per Share on an Annualized Basis; $2.0 Billion of Comcast Stock to be Repurchased in 2013

PHILADELPHIA--(BUSINESS WIRE)-- Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported results for the quarter and year ended December 31, 2012.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, "I am really pleased to report strong results for the 4th quarter and the full year of 2012 and delighted that we are able to accelerate the acquisition of General Electric's 49% common equity interest in NBCUniversal while also having the financial strength to return capital to shareholders. To underscore our confidence, we are increasing our dividend by 20% and plan to repurchase $2 billion of our stock this year. Our businesses have real momentum and we continue to benefit from our focus on operational excellence and to leverage all of our content and technology platforms to expand the entertainment choices we offer consumers. Cable's fourth quarter and full year results demonstrate consistent improvement in customer metrics and growth in every product, led by High-Speed Internet. NBCUniversal's results principally highlight the improving performance of our broadcast businesses. Our ongoing investments in programming, technology and new products are driving innovation and supporting this strong performance. As we begin 2013, our scale in distribution and content, combined with our focus on execution and innovation, provides many opportunities to continue to build value for our shareholders."

 

Consolidated Financial Results

 
    4th Quarter     Full Year
($ in millions)     2011     2012     Growth     2011*     2012     Growth
Revenue     $15,042     $15,937     5.9 %     $55,842     $62,570     12.0 %
Operating Cash Flow (OCF)1     $4,916     $5,277     7.3 %     $18,357     $19,977     8.8 %
Operating Income     $2,918     $3,294     12.9 %     $10,721     $12,179     13.6 %
Earnings per Share2     $0.47     $0.56     19.1 %     $1.50     $2.28     52.0 %
Free Cash Flow3 $1,876     $1,832     (2.3 %) $7,009     $7,939     13.3 %
 

*Full Year 2011 includes 11 months of NBCUniversal and 6 months of Universal Orlando results.

For additional detail on segment revenue and expenses, customer metrics, capital expenditures, and free cash flow, please refer to the trending schedules on Comcast's Investor Relations website at www.cmcsa.com or www.cmcsk.com.

Consolidated financial results include NBCUniversal from January 28, 2011 and 100% of Universal Orlando from July 1, 2011.

Revenue for the fourth quarter of 2012 increased 5.9% to $15.9 billion, while Operating Cash Flow increased 7.3% to $5.3 billion and Operating Income increased 12.9% to $3.3 billion.

For the year ended December 31, 2012, revenue increased 12.0% to $62.6 billion, while operating cash flow increased 8.8% to $20.0 billion and operating income increased 13.6% to $12.2 billion.

Earnings per Share (EPS) for the fourth quarter of 2012 was $0.56, a 19.1% increase from the $0.47 reported in the fourth quarter of 2011. Excluding a favorable tax adjustment due to recent changes in state tax legislation in 2012, EPS increased 10.6% (see Table 4).

For the year ended December 31, 2012, EPS was $2.28, a 52.0% increase from the $1.50 reported in the prior year. Excluding non-recurring gains on sales, the favorable tax adjustment in 2012, and NBCUniversal transaction and related costs and other non-recurring items in 2011, EPS increased 22.2% (see Table 4).

Free Cash Flow (excluding any impact from the Economic Stimulus packages) decreased 2.3% to $1.8 billion in the fourth quarter of 2012 compared to the fourth quarter of 2011, reflecting growth in consolidated operating cash flow, offset by higher working capital and capital expenditures.

For the year ended December 31, 2012, free cash flow increased 13.3% to $7.9 billion compared to $7.0 billion in 2011, reflecting growth in consolidated operating cash flow, partially offset by higher taxes and capital expenditures.

       
4th Quarter Full Year
($ in millions)     2011     2012     Growth     2011*     2012     Growth
Operating Cash Flow     $4,916     $5,277     7.3%     $18,357     $19,977     8.8%
Capital Expenditures     (1,522)     (1,671)     9.8%     (5,307)     (5,714)     7.7%
Cash Paid for Capitalized Software and Other Intangible Assets     (449)     (318)     (29.2%)     (954)     (923)     (3.2%)
Cash Interest Expense     (632)     (589)     (6.8%)     (2,441)     (2,314)     (5.2%)
Cash Taxes     (460)     (986)     114.3%     (1,626)     (2,841)     74.7%
Changes in Operating Assets and Liabilities     118     (164)     NM     (603)     (418)     (30.7%)
Other     67     (25)     NM     276     120     (56.5%)
Free Cash Flow (Incl. Economic Stimulus Packages)     $2,038     $1,524     (25.2%)     $7,702     $7,887     2.4%
Economic Stimulus Packages     (162)     308     NM     (693)     52     NM
Free Cash Flow $1,876     $1,832     (2.3%) $7,009     $7,939     13.3%
 

*Full year 2011 includes 11 months of NBCUniversal and 6 months of Universal Orlando results.

Note: The definition of Free Cash Flow excludes any impact from the 2008-2012 Economic Stimulus packages. These amounts have been excluded from Free Cash Flow to provide an appropriate comparison. NM=comparison not meaningful.

Dividends and Share Repurchases. During the fourth quarter of 2012, Comcast paid dividends totaling $432 million and repurchased 21.1 million of its common shares for $750 million. For the full year, Comcast repurchased 95.7 million or 3.5% of its common shares for $3.0 billion and made four cash dividend payments totaling $1.6 billion, resulting in a total return of capital to shareholders of $4.6 billion for 2012.

Today, Comcast announced that it increased its dividend by 20% to $0.78 per share on an annualized basis. In accordance with the increase, the Board of Directors declared a quarterly cash dividend of $0.195 a share on the company's common stock, payable on April 24, 2013 to shareholders of record as of the close of business on April 3, 2013.

In addition, Comcast announced that it plans to repurchase $2.0 billion of its stock during 2013, subject to market conditions.

Pro Forma Financial Results

Pro forma results are presented as if the NBCUniversal transaction, which closed on January 28, 2011, and the Universal Orlando transaction, which closed on July 1, 2011, were effective on January 1, 2010. These results are based on historical results of operations, adjusted for the effects of acquisition accounting and eliminating the costs and expenses directly related to the transaction, and are not necessarily indicative of what the results would have been had Comcast operated NBCUniversal and Universal Orlando since January 1, 2010 (see Table 5 for reconciliations of pro forma financial information).

       
4th Quarter Full Year
($ in millions)     2011     2012     Growth     2011     2012     Growth
Revenue     $15,042     $15,937     5.9 %     $57,661     $62,570     8.5 %
Operating Cash Flow (OCF) $4,916     $5,277     7.3 % $18,726     $19,977     6.7 %
 

Consolidated Revenue increased 5.9% in the fourth quarter of 2012 to $15.9 billion compared to $15.0 billion in the fourth quarter of 2011. Consolidated Operating Cash Flow increased 7.3% to $5.3 billion co


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