XNYS:CVC Cablevision Systems Corp Class A Quarterly Report 10-Q Filing - 6/30/2012

Effective Date 6/30/2012

XNYS:CVC Fair Value Estimate
Premium
XNYS:CVC Consider Buying
Premium
XNYS:CVC Consider Selling
Premium
XNYS:CVC Fair Value Uncertainty
Premium
XNYS:CVC Economic Moat
Premium
XNYS:CVC Stewardship
Premium
 
form10q.htm
                         

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM 10-Q

(Mark One)
 
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended      June 30, 2012    
 
OR

o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from _____________ to _____________
 
Commission File Number
 
Registrant; State of Incorporation;
Address and Telephone Number
 
IRS Employer Identification No.
         
1-14764
 
Cablevision Systems Corporation
 
11-3415180
   
Delaware
   
   
1111 Stewart Avenue
   
   
Bethpage, New York  11714
   
   
(516) 803-2300
   
         
1-9046
 
CSC Holdings, LLC
 
27-0726696
   
Delaware
   
   
1111 Stewart Avenue
   
   
Bethpage, New York  11714
   
   
(516) 803-2300
   

Indicate by check mark whether the Registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.

Cablevision Systems Corporation
Yes
x
 
No
o
CSC Holdings, LLC
Yes
x
 
No
o

Indicate by check mark whether the Registrants have submitted electronically and posted on their corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrants were required to submit and post such files).
 
Yes
x
 
No
o
 


 
 

 
 
Indicate by check mark whether each Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company (as defined in Exchange Act Rule 12b-2).

 
Large accelerated
filer
 
Accelerated
filer
 
Non-accelerated
filer
 
Smaller
Reporting
Company
Cablevision Systems Corporation
Yes
x
 
No
o  
Yes
o  
No
x
 
Yes
o  
No
x
 
Yes
o
No
x
CSC Holdings, LLC
Yes
o  
No
x
 
Yes
o  
No
x
 
Yes
x
 
No
o  
Yes
o
No
x

Indicate by check mark whether the Registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).

Cablevision Systems Corporation
Yes
o  
No
x
CSC Holdings, LLC
Yes
o  
No
x

Number of shares of common stock outstanding as of July 31, 2012:

Cablevision NY Group Class A Common Stock   -
212,261,783
Cablevision NY Group Class B Common Stock   -
54,137,673
CSC Holdings, LLC Interests of Member  -
14,432,750

CSC Holdings, LLC meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with the reduced disclosure format applicable to CSC Holdings, LLC.
 
 
 

 
 
CABLEVISION SYSTEMS CORPORATION AND SUBSIDIARIES

FORM 10-Q

TABLE OF CONTENTS

     
Page
   
PART I.
 
FINANCIAL INFORMATION
 
       
Item 1.
   
Financial Statements of Cablevision Systems Corporation and Subsidiaries
 
       
   
2
       
   
4
       
   
5
       
   
6
       
   
Financial Statements of CSC Holdings, LLC and Subsidiaries
 
       
   
7
       
   
9
       
   
10
       
   
11
       
   
12
       
Item 2.
 
34
       
Item 3.
 
64
       
Item 4.
 
66
       
PART II.
 
OTHER INFORMATION
 
       
Item 1.
 
66
       
Item 2.
 
67
       
Item 6.
 
68
       
69
 
 
PART I.
FINANCIAL INFORMATION

This Quarterly Report on Form 10-Q for the period ended June 30, 2012 is separately filed by Cablevision Systems Corporation ("Cablevision") and CSC Holdings, LLC ("CSC Holdings" and collectively with Cablevision and their subsidiaries, the "Company", "we", "us" or "our").

This Quarterly Report contains statements that constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995.  In this Quarterly Report there are statements concerning our future operating results and future financial performance.  Words such as "expects", "anticipates", "believes", "estimates", "may", "will", "should", "could", "potential", "continue", "intends", "plans" and similar words and terms used in the discussion of future operating results and future financial performance identify forward-looking statements.  Investors are cautioned that 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 the forward-looking statements as a result of various factors.  Factors that may cause such differences to occur include, but are not limited to:
 
 
·
the level of our revenues;
 
·
competition for subscribers from existing competitors (such as telephone companies and direct broadcast satellite ("DBS") distributors) and new competitors (such as high-speed wireless providers) entering our franchise areas;
 
·
demand for our video, high-speed data and voice services, which is impacted by competition from other services and the other factors discussed herein;
 
·
industry conditions;
 
·
changes in the laws or regulations under which we operate;
 
·
the outcome of litigation and other proceedings, including the matters described in Note 12 of the combined notes to our condensed consolidated financial statements;
 
·
general economic conditions in the areas in which we operate;
 
·
the state of the market for debt securities and bank loans;
 
·
demand for advertising in our newspapers along with subscriber and single copy outlet sales demand for our newspapers;
 
·
the level of our capital expenditures;
 
·
the level of our operating expenses, including the cost of programming;
 
·
future acquisitions and dispositions of assets;
 
·
market demand for new services;
 
·
demand for advertising;
 
·
the tax-free treatment of the MSG Distribution and the AMC Networks Distribution (each as defined herein);
 
·
whether pending uncompleted transactions, if any, are completed on the terms and at the times set forth (if at all);
 
·
other risks and uncertainties inherent in the cable television, newspaper publishing businesses, and our other businesses;
 
·
financial community and rating agency perceptions of our business, operations, financial condition and the industries in which we operate; and
 
·
the factors described in our filings with the Securities and Exchange Commission, including under the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein.
 
We disclaim any obligation to update or revise the forward-looking statements contained herein, except as otherwise required by applicable federal securities laws.
 
 
Item 1.  Financial Statements

CABLEVISION SYSTEMS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
   
June 30,
2012
   
December 31,
2011
 
ASSETS
           
             
Current Assets:
           
             
Cash and cash equivalents
  $ 337,945     $ 611,947  
Restricted cash
    576       29,068  
Accounts receivable, trade (less allowance for doubtful accounts of $15,803 and $14,907)
    283,296       295,277  
Prepaid expenses and other current assets
    153,094       135,579  
Amounts due from affiliates
    1,857       6,818  
Deferred tax asset
    84,941       84,925  
Investment securities pledged as collateral
    343,320       191,338  
Total current assets
    1,205,029       1,354,952  
                 
Property, plant and equipment, net of accumulated depreciation of $9,334,179 and $9,221,694
    3,298,574       3,269,232  
Other receivables
    4,660       3,279  
Investment securities pledged as collateral
    343,320       317,896  
Derivative contracts
    5,385       18,617  
Other assets
    47,338       53,971  
Amortizable intangible assets, net of accumulated amortization of $142,041 and $115,043
    227,630       252,871  
Indefinite-lived cable television franchises
    1,240,228       1,240,228  
Other indefinite-lived intangible assets
    55,895       55,895  
Goodwill
    442,773       442,773  
Deferred financing costs, net of accumulated amortization of $88,193 and $81,182
    120,857       133,611  
    $ 6,991,689     $ 7,143,325  

See accompanying combined notes to condensed consolidated financial statements.
 
 
CABLEVISION SYSTEMS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Cont'd)
(In thousands, except per share amounts)
(Unaudited)
 
   
June 30,
2012
   
December 31,
2011
 
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
           
             
Current Liabilities:
           
             
Accounts payable
  $ 438,870     $ 455,654  
Accrued liabilities
    507,029       604,240  
Amounts due to affiliates
    32,781       32,682  
Deferred revenue
    56,521       61,599  
Liabilities under derivative contracts
    60,193       75,223  
Credit facility debt
    130,387       103,245  
Collateralized indebtedness
    241,999       148,175  
Capital lease obligations
    12,083       9,174  
Notes payable
    11,225       17,614  
Senior notes
    -       87,822  
Total current liabilities
    1,491,088       1,595,428  
                 
Deferred revenue
    10,648       10,896  
Liabilities under derivative contracts
    36,762       3,141  
Other liabilities
    250,369       220,865  
Deferred tax liability
    158,984       80,546  
Credit facility debt
    5,005,723       5,080,949  
Collateralized indebtedness
    273,636       307,763  
Capital lease obligations
    37,518       33,589  
Notes payable
    1,506       11,613  
Senior notes and debentures
    5,367,089       5,358,838  
Total liabilities
    12,633,323       12,703,628  
                 
Commitments and contingencies
               
                 
Redeemable noncontrolling interests
    13,891       13,761  
                 
Stockholders' Deficiency:
               
Preferred Stock, $.01 par value, 50,000,000 shares authorized, none issued
    -       -  
CNYG Class A common stock, $.01 par value, 800,000,000 shares authorized, 285,340,347 and 281,833,547 shares issued and 212,276,443 and 220,170,261 shares outstanding
    2,853       2,818  
CNYG Class B common stock, $.01 par value, 320,000,000 shares authorized, 54,137,673 shares issued and outstanding
    541       541  
RMG Class A common stock, $.01 par value, 600,000,000 shares authorized, none issued
    -       -  
RMG Class B common stock, $.01 par value, 160,000,000 shares authorized, none issued
    -       -  
Paid-in capital
    997,417       1,051,435  
Accumulated deficit
    (5,124,707 )     (5,245,483 )
      (4,123,896 )     (4,190,689 )
Treasury stock, at cost (73,063,904 and 61,663,286 CNYG Class A common shares)
    (1,511,036 )     (1,363,698 )
Accumulated other comprehensive loss
    (21,266 )     (21,468 )
Total stockholders' deficiency
    (5,656,198 )     (5,575,855 )
Noncontrolling interest
    673       1,791  
Total deficiency
    (5,655,525 )     (5,574,064 )
    $ 6,991,689     $ 7,143,325  

See accompanying combined notes to condensed consolidated financial statements.
 
 
CABLEVISION SYSTEMS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three and Six Months Ended June 30, 2012 and 2011
(In thousands, except per share amounts)
(Unaudited)
 
   
Three Months Ended
June 30,
   
Six Months Ended
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
Revenues, net (including revenues, net from affiliates of $1,564, $1,354, $3,521, and $2,173, respectively)
  $ 1,697,288     $ 1,688,681     $ 3,356,045     $ 3,343,805  
                                 
Operating expenses:
                               
Technical and operating (excluding depreciation, amortization and impairments shown below and including charges from affiliates of $46,517, $44,742, $92,305, and $89,255, respectively)
    810,064       745,728       1,594,679       1,483,716  
Selling, general and administrative (net of charges to affiliates of $542, $5,473, $468, and $10,170, respectively)
    368,575       382,813       739,604       756,997  
Restructuring expense (credits)
    (93 )     94       (391 )     265  
Depreciation and amortization (including impairments)
    258,403       247,605       511,750       492,788  
      1,436,949       1,376,240       2,845,642       2,733,766  
Operating income
    260,339       312,441       510,403       610,039  
                                 
Other income (expense):
                               
Interest expense, net
    (181,317 )     (188,295 )     (363,148 )     (379,379 )
Gain on investments, net
    42,113       13,312       177,438       72,384  
Loss on equity derivative contracts, net
    (16,137 )     (2,823 )     (127,331 )     (42,881 )
Loss on interest rate swap contracts, net
    (183 )     (5,497 )     (1,828 )     (9,686 )
Miscellaneous, net
    260       238       805       455  
      (155,264 )     (183,065 )     (314,064 )     (359,107 )
Income from continuing operations before income taxes
    105,075       129,376       196,339       250,932  
Income tax expense
    (41,286 )     (59,836 )     (75,446 )     (112,379 )
Income from continuing operations
    63,789       69,540       120,893       138,553  
Income from discontinued operations, net of income taxes
    -       18,592       -      

XNYS:CVC Cablevision Systems Corp Class A Quarterly Report 10-Q Filling

Cablevision Systems Corp Class A XNYS:CVC Stock - Get Quarterly Report SEC Filing of Cablevision Systems Corp Class A XNYS:CVC stocks, including company profile, shares outstanding, strategy, business segments, operations, officers, consolidated financial statements, financial notes and ownership information.

XNYS:CVC Cablevision Systems Corp Class A Quarterly Report 10-Q Filing - 6/30/2012
Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol |  Title Star Rating |  Category |  Total Assets |  Top Holdings |  Top Sectors |  Symbol |  Name Title |  Date |  Author |  Collection |  Interest |  Popularity Topic |  Sector |  Key Indicators |  User Interest |  Market Cap |  Industry Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol / Ticker |  Title Star Rating |  Category |  Total Assets |  Symbol / Ticker |  Name Title |  Date |  Author |  Collection |  Popularity |  Interest Title |  Date |  Company |  Symbol |  Interest |  Popularity Topic |  Sector |  Key Indicators |  User Interest |  Market Cap |  Industry Name |  Ticker |  Popularity |  Our Choices |  Most Recent Title |  Date |  Company |  Symbol |  Interest |  Popularity

Previous: XNYS:CVC Cablevision Systems Corp Class A Quarterly Report 10-Q Filing - 3/31/2012  |  Next: XNYS:CVD Covance Inc Insider Activity 3 Filing - 5/8/2012