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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 4, 1996
Comcast Corporation
-------------------------------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 0-6983 23-1709202
- ---------------------------- ------------ -------------------
(State or other jurisdiction (Commission (IRS employer
of incorporation) file number) identification no.)
1500 Market Street, Philadelphia, PA 19102-2148
-------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (215) 665-1700
--------------
ITEM 5. OTHER EVENTS
On November 4, 1996, Comcast Corporation issued a press release regarding
its third quarter 1996 results, a copy of which is attached as Exhibit 99.1 to
the Form 8-K and incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit 99.1 - Comcast Corporation Press Release dated
November 4, 1996.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COMCAST CORPORATION
Dated: November 4, 1996 By: /s/ Joseph J. Euteneuer
-------------------------------
Joseph J. Euteneuer
Vice President and
Corporate Controller
EXHIBIT INDEX
Exhibit Number Description
99.1 Comcast Corporation Press Release
dated November 4, 1996
Comcast Corporation
1500 Market Street
Philadelphia, PA 19102
NEWS
For further information contact:
John R. Alchin
(215) 981-7503
William E. Dordelman
(215) 981-7550
Marlene S. Dooner
(215) 981-7392
FOR IMMEDIATE RELEASE
COMCAST REPORTS THIRD QUARTER RESULTS
SEVENTH CONSECUTIVE QUARTER OF DOUBLE DIGIT
REVENUE AND CASH FLOW GROWTH
Philadelphia, PA - November 4, 1996... Comcast Corporation today reported
results for the three and nine months ended September 30, 1996. Revenues
for the three months ended September 30, 1996 were $974.6 million,
representing a 12.0% increase over the $870.2 million reported for the same
period in 1995. Operating cash flow for the third quarter of 1996 was
$295.8 million, an increase of 12.0% over the $264.1 million reported in
the third quarter of 1995.
The Company reported a net loss of $10.0 million, or $0.04 per share for
the three months ended September 30, 1996, as compared to a net loss of
$7.4 million, or $0.03 per share for the same period in 1995. Ongoing
losses are associated with financing costs and non-cash charges, such as
depreciation and amortization, principally from acquisitions, and equity in
net losses of affiliates.
For the nine months ended September 30, 1996, the Company reported revenues
of $2.871 billion and operating cash flow of $862.0 million as compared to
revenues and operating cash flow of $2.357 billion and $744.6 million,
respectively, for the same period in 1995. Consolidated results for the
Company do not include the results of QVC prior to the acquisition date of
February 1995. On a pro forma basis, as if QVC had been owned for the
entire nine month period ended September 30, 1995, the Company's
consolidated revenues and operating cash flow for the period ended
September 30, 1996 increased 15.4% and 12.3%, respectively, over the same
period in 1995.
In the third quarter, the cable division reported revenue and operating
cash flow growth of 6.6% over the prior year period. The cable division's
results reflect strong growth in subscribers, which increased by more than
18,000 during the quarter as compared to approximately 10,500 customers
added in the third quarter of 1995. For the twelve months ended September
30, 1996, the cable division has added almost 86,000 customers, a 2.6%
growth rate.
During the third quarter, the cellular division continued its positive
operating trend, with revenues and operating cash flow increasing 12.5% and
19.5%, respectively, over the prior year period.
QVC continued its impressive performance, with third quarter revenue and
operating cash flow growth of 10.1% and 16.0%, respectively over the prior
year period, despite strong competition for viewers as a result of the
Summer Olympics.
Brian L. Roberts, President of Comcast said, "As we gear up for an active
fourth quarter we are enthusiastic about the prospects of each of our core
businesses. In particular, the cable division is continuing to aggressively
upgrade its network infrastructure and customer service platforms to
provide a broader and richer array of programming to our customers. We
believe that the capacity of our upgraded networks will provide unique
opportunities to market new products and services that will support
continued cable growth."
"In each of our businesses, and throughout our service territories, we are
delivering a range of valuable products and services to our customers. As
an example, we recently opened our first Comcast Communications Center in
suburban Philadelphia, a retail environment that showcases Comcast as an
integrated provider of communications and entertainment services, selling
and promoting all of the products available to our customer in this core
market."
Comcast Corporation is principally engaged in the development, management
and operation of wired telecommunications including cable television and
telephone services; wireless telecommunications including cellular,
personal communications services and direct to home satellite television;
and content through principal ownership and management of QVC, the world's
premier electronic retailer, and through majority ownership of
Comcast-Spectacor and
other programming investments. The Company's consolidated and affiliated
operations serve more than ten million customers worldwide.
Comcast's Class A and Class A Special Common Stock are traded on The NASDAQ
Stock Market under the symbols CMCSA and CMCSK, respectively.
#####
COMCAST CORPORATION
Condensed Consolidated Statement of Operations (Unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Service Income $543,540 $478,758 $1,584,000 $1,381,510
Net Sales from Electronic Retailing 431,023 391,491 1,286,869 975,917
-------- -------- ---------- ----------
974,563 870,249 2,870,869 2,357,427
Cost of Goods Sold from Electronic Retailing 262,338 234,369 774,718 584,615
Operating, Selling, General and
Administrative Expenses 416,415 371,736 1,234,144 1,028,238
-------- -------- ---------- ----------
Operating Cash Flow 295,810 264,144 862,007 744,574
Depreciation Expense 78,325 59,244 223,718 278,610
Amortization Expense 88,393 88,388 267,272 256,065
Interest Expense 135,742 137,816 403,735 388,367
Investment Income (16,215) (44,727) (63,706) (202,307)
Equity in Net Losses of Affiliates 28,877 25,628 89,198 63,534
Gain from Equity Offering of Affiliate (40,638)
Other (293) (5,891) 22,673 (5,523)
-------- -------- ---------- ----------
314,829 260,458 902,252 778,746
-------- -------- ---------- ----------
(Loss) Income Before Income Tax Expense,
Minority Interest and Extraordinary Items (19,019) 3,686 (40,245) (34,172)
Income Tax Expense 9,282 18,435 33,894 32,470
Minority Interest (18,329) (12,796) (47,423) (34,767)
-------- -------- ---------- ----------
Loss Before Extraordinary Items (9,972) (1,953) (26,716) (31,875)
Extraordinary Items (5,407) (1,013) (5,407)
-------- -------- ---------- ----------
Net Loss ($9,972) ($7,360) ($27,729) ($37,282)
======== ======== ========== ==========
Loss per Share
Loss Before Extraordinary Items ($0.04) ($0.01) ($0.11) ($0.13)
Extraordinary Items (0.02) (0.02)
-------- -------- ---------- ----------
Net Loss ($0.04) ($0.03) ($0.11) ($0.15)
======== ======== ========== ==========
Weighted Average Number of Common Shares
Outstanding During the Period 233,318 239,819 236,189 239,634
======== ======== ========== ==========
Cash Dividends per Share $0.023 $0.023 $0.070 $0.070
======== ======== ========== ==========
COMCAST CORPORATION
Condensed Consolidated Balance Sheet (Unaudited)
(in thousands)
September 30, December 31,
1996 1995
Cash, Cash Equivalents and Short-term Investments $526,662 $910,043
Accounts Receivable, net 350,675 390,698
Inventories, net 256,251 243,447
Other Current Assets 123,748 109,470
Investments, principally in affiliates 1,278,733 906,383
Property and Equipment, net 2,051,562 1,643,602
Deferred Charges, net 5,241,677 5,376,665
---------- ----------
Total Assets $9,829,308 $9,580,308
========== ==========
Current Liabilities $1,140,964 $1,122,069
Long-term Debt, less current portion 7,233,745 6,943,766
Deferred Income Taxes 1,501,820 1,517,995
Minority Interest and Other 891,492 824,129
Stockholders' Deficiency (938,713) (827,651)
---------- ----------
Total Liabilities & Stockholders' Deficiency $9,829,308 $9,580,308
========== ==========
COMCAST CORPORATION
Pro Forma Financial and Other Data by Business Segment (Unaudited) (1)
(in thousands)
(2) (3)
Domestic Electronic Corporate
Cable Retailing Cellular and Other Total
Three Months Ended September 30, 1996
Revenues $392,619 $431,023 $110,020 $40,901 $974,563
Operating Cash Flow (Deficit) 193,875 69,238 47,739 (15,042) 295,810
Capital Expenditures 67,025 19,317 32,475 52,483 171,300
Three Months Ended September 30, 1995
Revenues $368,453 $391,491 $97,830 $12,475 $870,249
Operating Cash Flow (Deficit) 181,955 59,705 39,955 (17,471) 264,144
Capital Expenditures 69,395 7,465 24,020 36,731 137,611
Nine Months Ended September 30, 1996
Revenues $1,170,951 $1,286,869 $317,116 $95,933 $2,870,869
Operating Cash Flow (Deficit) 578,880 208,646 118,826 (44,345) 862,007
Capital Expenditures 203,841 38,864 69,026 138,474 450,205
Nine Months Ended September 30, 1995
Revenues $1,078,033 $1,107,386 $274,243 $28,139 $2,487,801
Operating Cash Flow (Deficit) 529,655 178,501 110,736 (51,519) 767,373
Capital Expenditures 180,437 21,516 191,983 88,214 482,150
(1) The Company acquired QVC in February 1995. Pro forma financial data by
business segment is presented as if the QVC acquisition occurred at the
beginning of 1995. Accordingly, each period presented includes QVC's
operating results for the entire period. The information presented above is
not necessarily indicative of what the results would have been had the
Company operated QVC since the beginning of 1995. Historical financial data
by business segment is available in the Company's Quarterly Report on Form
10-Q.
(2) Effective April 1, 1995, QVC began consolidating its United Kingdom
operations. Pro forma financial data by business segment for periods prior
to April 1, 1995 excludes QVC's United Kingdom operations. For the three
months ended March 31, 1995, revenues of QVC's United Kingdom operations
were $7.4 million and operating cash flow (deficit) was ($2.2 million).
(3) Corporate and other includes certain operating businesses and elimination
entries related to the segments presented.
Other Data (at end of period)
3Q95-
3Q96
3Q95 2Q96 3Q96 Growth
Domestic Cable
Homes Passed 5,547 5,624 5,649 1.8%
Basic Cable Subscribers 3,361 3,429 3,447 2.6%
Basic Cable Penetration 60.6% 61.0% 61.0% 0.4 pts.
Primestar Subscribers 43 81 101 134.9%