Exhibit 99.1
Insight Communications Announces Second Quarter 2006 Results
NEW YORK--(BUSINESS WIRE)--Aug. 3, 2006--Insight Communications
Company today announced financial results for the quarter ended June
30, 2006.
Second Quarter Highlights
-- Revenue of $311.7 million, an increase of 12% over Q2 2005
-- Adjusted Operating Income before Depreciation and
Amortization* of $117.6 million, a decrease of 4% over Q2 2005
-- Capital expenditures of $84.1 million
-- Free Cash Flow* of ($37.3) million
-- Total Customer Relationships of 1,375,100 at Q2 2006, an
increase of 59,700 compared to 1,315,400 at Q2 2005
-- Total Revenue Generating Units ("RGUs") of 2,516,300 at Q2
2006, an increase of 15% from Q2 2005
-- High-speed Internet ("HSI") customer net gain of 19,700,
compared to net additions in Q2 2005 of 23,500. Total HSI
customers at quarter end were 534,500, a penetration of
22% of HSI homes passed.
-- Basic customer net loss of 4,300, an improvement of 9,900
from Q2 2005 net losses of 14,200, resulting in 1,302,400
basic customers at quarter end
-- Digital customer net gain of 11,700, an increase of 9,900
customers over Q2 2005 net additions, increasing digital
customers to 572,200 at quarter end. Digital penetration
was 46% of the company's Digital Universe.
-- Telephone customer net gain of 7,500, an increase of 2,600
customers over Q2 2005 net additions, bringing total
telephone customers to 107,200 at quarter end and
penetration to 12% of marketable homes passed
-- As of June 30, 2006, 98% of the company's customers were
passed by two-way, 750 MHz or higher capacity upgraded
network.
* See explanation of these Non-GAAP measures on page 5.
1
"Our double-digit revenue growth and record second quarter RGU
growth are a reflection of the successful investments we've been
making in our sales, marketing and growth capabilities, " said Michael
Willner, CEO. "Although our expenses and operating cash flow might
seem to be out of line with our top-line growth, they indeed are right
in line with our Q2 budget. We had some one-time credits last year,
which resulted in OIBDA growth of 15% in Q2 2005, making a difficult
year-over-year comparison. In addition, since the third quarter of
last year, we have been building up our growth capability and
operations in anticipation of an aggressive IP telephony launch,
slated to begin next month. As a result, we are very comfortable that
we will resume quarterly OIBDA growth in Q3 and will continue our
strong RGU growth as telephony launches commence."
Operating Results for the Three Months Ended June 30, 2006
Compared to the Three Months Ended June 30, 2005
Revenue for the three months ended June 30, 2006, totaled $311.7
million, an increase of 12% over the prior year, due primarily to
customer gains in all services, as well as video rate increases.
High-speed Internet service revenue increased 27% over the prior year,
which was attributable to an increased customer base and was partially
offset by lower average revenue per customer due to promotional
discounts. Insight added a net 19,700 high-speed Internet customers
during the quarter to end at 534,500 customers.
Basic cable service revenue increased 7% due to an increased
customer base and video rate increases, partially offset by
promotional discounts. Historically, Insight has experienced a
seasonal decline in basic customers during the second quarter
primarily as a result of students leaving the university communities
Insight serves. In addition, digital service revenue increased 23%
over the prior year due to an increased customer base. Insight added a
net 11,700 digital customers during the quarter to end at 572,200
customers.
Insight is increasing its customer growth and retention efforts by
increasing spending on sales and marketing efforts, emphasizing
bundling and enhancing and differentiating its video services with
video-on-demand, high definition television and digital video
recorders. The company is also continuing to focus on improving
customer satisfaction through higher service levels and increased
education of product offerings.
2
Revenue by service offering was as follows for the three months ended
June 30 (dollars in thousands):
Revenue by Service Offering
------------------------------------------ --------
Three Three
Months Months
Ended Ended % of % Change
June 30, % of Total June 30, Total in
2006 Revenue 2005 Revenue Revenue
---------- ---------- ---------- --------- --------
Basic $160,328 51.5% $150,071 53.7% 6.8%
High-Speed Internet 58,616 18.8% 46,318 16.6% 26.6%
Digital 34,307 11.0% 27,838 10.0% 23.2%
Advertising 20,020 6.4% 19,749 7.1% 1.4%
Premium 13,852 4.4% 13,746 4.9% 0.8%
Telephone 12,528 4.0% 8,387 3.0% 49.4%
Franchise fees 7,384 2.4% 7,782 2.8% -5.1%
Other 4,682 1.5% 5,420 1.9% -13.6%
---------- ---------- ---------- --------- --------
Total $311,717 100.0% $279,311 100.0% 11.6%
---------- ---------- ---------- --------- --------
Total Customer Relationships were 1,375,100 as of June 30, 2006,
an increase of 59,700 from 1,315,400 as of June 30, 2005. Total
Customer Relationships represent the number of customers who receive
one or more of Insight's products (i.e., basic cable, high-speed
Internet or telephone) without regard to which product they purchase.
RGUs, which represent the sum of basic, digital, high-speed Internet
and telephone customers, as of June 30, 2006, increased 15% as
compared to June 30, 2005.
RGUs by category were as follows (in thousands):
June 30, 2006 June 30, 2005
------------------- -------------------
Basic 1,302.4 1,257.2
Digital 572.2 460.8
High-Speed Internet 534.5 391.3
Telephone 107.2 73.5
------------------- -------------------
Total RGUs 2,516.3 2,182.8
------------------- -------------------
Average monthly revenue per basic customer was $79.65 for the
three months ended June 30, 2006, compared to $73.64 for the three
months ended June 30, 2005. This primarily reflects the continued
growth of high-speed Internet and digital product offerings in all
markets, as well as video rate increases.
Programming and other operating costs increased $20.5 million, or
22%. Increases in customers and substantial increases in programming
rates were significant drivers of the cost increase for the three
months ended June 30, 2006. For the three months ended June 30, 2005,
programming costs reflected certain programming credits. These credits
resulted from favorable resolution of pricing negotiations related to
certain prior period programming costs that were accrued at a higher
rate than the amount actually paid. Programming credits for the three
months ended June 30, 2006, were significantly lower, causing overall
programming cost increases to be greater. In addition, direct
operating costs increased due to an increase in high-speed Internet
service costs as the company continued to transition its Internet
services in-house to make additional one-time investments. Other
operating costs increased primarily as a result of increases in
repair, maintenance and warranty costs; an increase in taxes due to a
change in the tax law in Kentucky; and an increase in installation
labor due to increased customer activity.
3
Selling, general and administrative expenses increased $15.6
million, or 23%, primarily due to increased payroll, payroll related
costs and temporary help associated with an increase in the number of
employees and salary increases for existing employees. Marketing
expenses increased over the prior year to support the continued
rollout of high-speed Internet, digital and telephone products, and to
grow the company's core video customer base. Customer billing and
collection fees increased due to the increase in our customer base.
Professional fees also increased due to increased legal activity for
the three months ended June 30, 2006.
Depreciation and amortization expense increased $6.1 million, or
10%, primarily as a result of additional capital expenditures through
June 30, 2006. These expenditures were primarily for purchases of
customer premise equipment, installation materials, capitalized labor,
headend equipment and network extensions, all of which Insight
considers necessary in order to continue to maintain and grow its
customer base and expand its service offerings. Partially offsetting
this increase was a decrease in depreciation expense related to
certain assets that have become fully depreciated since June 30, 2005.
As a result of the factors discussed above, Adjusted Operating
Income before Depreciation and Amortization decreased $4.8 million to
$117.6 million, a decrease of 4% over Q2 2005.
Interest expense increased $4.9 million, or 9%, because of i)
higher interest rates, which averaged 8.9% for the three months ended
June 30, 2006, as compared to 8.1% for the three months ended June 30,
2005, and ii) additional interest expense on the now fully accreted 12
1/4% Senior Discount Notes.
Liquidity and Capital Resources
Insight's business requires cash for operations, debt service and
capital expenditures. The cable television business has substantial
ongoing capital requirements for the construction, expansion and
maintenance of its broadband networks and provision of new services.
In the past, expenditures have been made for various purposes,
including the upgrade of the existing cable network, and will continue
to be made for network extensions, installation of new services,
customer premise equipment (e.g., set-top boxes), deployment of new
product and service offerings, and, to a lesser extent, network
upgrades. Historically, Insight has been able to meet its cash
requirements with cash flow from operations, borrowings under its
credit facilities and issuances of private and public debt and equity.
4
Cash provided by operations for the six months ended June 30, 2006
and 2005 was $133.3 million and $143.2 million. The decrease was
primarily attributable to an increase in our net loss partially offset
by the timing of cash receipts and payments related to our working
capital accounts.
Cash used in investing activities for the six months ended June
30, 2006 and 2005 was $141.8 million and $92.9 million. The increase
primarily was due to increases in capital expenditures. For the six
months ended June 30, 2006 and 2005, Insight spent $141.8 million and
$93.5 million in capital expenditures. These expenditures principally
constituted purchases of customer premise equipment, capitalized
labor, installation materials, headend equipment and system upgrades
and rebuilds, all of which are necessary to maintain Insight's
existing network, grow its customer base and expand its service
offerings.
Cash used in financing activities for the six months ended June
31, 2006 and 2005 was $16.7 million and $41.8 million. The decrease
was due to $25.0 million in net proceeds from borrowings under
Insight's credit facility for the three months ended June 30, 2006.
Free Cash Flow for the six months ended June 30, 2006 totaled
($8.4) million, compared to $49.7 million for the six months ended
June 30, 2005. The decrease in Free Cash Flow from the six months
ended June 30, 2005, to the six months ended June 30, 2006, of $58.1
million was primarily driven by the following:
-- A $48.3 million increase in capital expenditures;
-- A $7.4 million increase in cash interest expense paid
primarily driven by an increase in interest rates;
-- A $3.7 million source of Free Cash Flow for the six months
ended June 30, 2006, compared to a $5.6 million source for the
six months ended June 30, 2005, from changes in working
capital accounts; and
-- A $500,000 increase in cash taxes paid.
Insight believes that the Insight Midwest Holdings credit
facility, cash on-hand and cash flow from operations are sufficient to
support the company's current operating plan. Insight had the ability
to draw upon $231.4 million of unused availability under the Insight
Midwest Holdings credit facility as of June 30, 2006, to fund any
shortfall resulting from the inability of Insight Midwest's cash from
operations to fund its capital expenditures, meet its debt service
requirements, including mandatory redemptions, or otherwise fund its
operations. Insight expects to use any available Free Cash Flow to
repay its indebtedness.
Use of Adjusted Operating Income before Depreciation and
Amortization and Free Cash Flow
Insight utilizes Adjusted Operating Income before Depreciation and
Amortization (defined as operating income before depreciation,
amortization and non-cash stock-based compensation), among other
measures, to evaluate the performance of its businesses. Adjusted
Operating Income before Depreciation and Amortization is considered an
important indicator of the operational strength of Insight's
businesses and is a component of its annual compensation programs. In
addition, Insight's debt agreements use Adjusted Operating Income
before Depreciation and Amortization, adjusted for certain
non-recurring items, in their leverage and other covenant
calculations. Insight also uses this measure to determine how it will
allocate resources and capital. Insight's management finds this
measure helpful because it captures all of the revenue and ongoing
operating expenses of its businesses and therefore provides a means to
directly evaluate the ability of the business operations to generate
returns and to compare operating capabilities across its businesses.
This measure is also used by equity and fixed income research analysts
in their reports to investors evaluating Insight's businesses and
other companies in the cable television industry. Insight believes
Adjusted Operating Income before Depreciation and Amortization is
useful to investors because it enables them to assess its performance
in a manner similar to the methods used by Insight's management and
provides a measure that can be used to analyze, value and compare
companies in the cable television industry that may have different
depreciation, amortization and stock-based compensation policies.
5
A limitation of Adjusted Operating Income before Depreciation and
Amortization, however, is that it does not reflect the periodic costs
of certain capitalized tangible and intangible assets used in
generating revenues in Insight's businesses. Management evaluates the
costs of such tangible and intangible assets through other financial
measures such as capital expenditures, investment spending and Free
Cash Flow. Management also evaluates the costs of capitalized tangible
and intangible assets by analyzing returns provided on the capital
dollars deployed. Another limitation of Adjusted Operating Income
before Depreciation and Amortization is that it does not reflect
income net of interest expense, which is a significant expense for the
company because of the substantial debt it has incurred to acquire
cable television systems and finance capital expenditures to upgrade
its cable network. Management evaluates the impact of interest expense
through other measures, including interest expense itself, Free Cash
Flow, the returns analysis discussed above and debt service covenant
ratios under Insight's credit facility.
Free Cash Flow is net cash provided by operating activities (as
defined by accounting principles generally accepted in the United
States) less capital expenditures. Free Cash Flow is considered to be
an important indicator of Insight's liquidity, including its ability
to repay indebtedness. Insight believes Free Cash Flow is useful for
investors because it enables them to assess Insight's ability to
service its debt and to fund continued growth with internally
generated funds in a manner similar to the methods used by Insight's
management, and provides a measure that can be used to analyze, value
and compare companies in the cable television industry.
Both Adjusted Operating Income before Depreciation and
Amortization and Free Cash Flow should be considered in addition to,
not as a substitute for, Operating Income, Net Income and various cash
flow measures (e.g., Net Cash Provided by Operating Activities), as
well as other measures of financial performance and liquidity reported
in accordance with accounting principles generally accepted in the
United States.
6
Reconciliation of Net Loss to Adjusted Operating Income before
Depreciation and Amortization
The following table reconciles Net Loss to Adjusted Operating
Income before Depreciation and Amortization. In addition, the table
provides the components from Net Loss to Operating Income.
Three Months Six Months
Ended June 30, Ended June 30,
------------------- -------------------
2006 2005 2006 2005
--------- --------- --------- ---------
(in thousands)
Net loss $ (8,895) $ (728) $(19,714) $ (9,070)
Provision for income taxes 80 125 160 250
-------- -------- -------- --------
Loss before income taxes (8,815) (603) (19,554) (8,820)
Minority interest income
(expense) (2,110) 5,227 (4,615) 3,827
-------- -------- -------- --------
Income (loss) before minority
interest and income taxes (10,925) 4,624 (24,169) (4,993)
Other (income) expense:
Other (20) (543) 50 (671)
Interest income (369) (761) (881) (1,023)
Interest expense 61,208 56,291 122,283 111,008
-------- -------- -------- --------
Total other expense, net 60,819 54,987 121,452 109,314
-------- -------- -------- --------
Operating income 49,894 59,611 97,283 104,321
Depreciation and amortization 67,343 61,266 131,655 122,219
Stock-based compensation 334 1,543 884 3,450
-------- -------- -------- --------
Adjusted Operating Income
before Depreciation and
Amortization $117,571 $122,420 $229,822 $229,990
-------- -------- -------- --------
Reconciliation of Net Cash Provided by Operating Activities to
Free Cash Flow
The following table provides a reconciliation from net cash
provided by operating activities to Free Cash Flow. In addition, the
table provides the components from net cash provided by operating
activities to operating income.
Three Months Six Months
Ended June 30, Ended June 30,
------------------- --------------------
2006 2005 2006 2005
-------------------------------------------
(in thousands)
Operating income $ 49,894 $ 59,611 $ 97,283 $104,321
Depreciation and
amortization 67,343 61,266 131,655 122,219
Stock-based compensation 334 1,543 884 3,450
-------- -------- --------- --------
Adjusted Operating Income
before Depreciation and
Amortization 117,571 122,420 229,822 229,990
Changes in working
capital accounts (1) 5,758 (1,151) 3,672 5,577
Cash paid for interest (76,384) (54,036)(2) (99,471) (92,118)
Cash paid for taxes (138) (85) (691) (222)
-------- -------- --------- --------
Net cash provided by
operating activities 46,807 67,148 133,332 143,227
Capital expenditures (84,136) (54,788) (141,765) (93,513)
-------- -------- --------- --------
Free Cash Flow $(37,329) $ 12,360 $ (8,433) $ 49,714
-------- -------- --------- --------
(1) Changes in working capital accounts are based on the net cash
changes in current assets and current liabilities, excluding
changes related to interest and taxes and other non-cash expenses.
(2) Excludes bond interest payments due April 1, 2005 that were made
on March 31, 2005. Had the payments been made on April 1, 2005,
Free Cash Flow for the three months ended June 30, 2005 would have
been ($6,409).
7
About Insight Communications
Insight Communications is the 9th largest cable operator in the
United States, serving approximately 1.3 million customers in the four
contiguous states of Illinois, Kentucky, Indiana and Ohio. Insight
offers bundled, state-of-the-art services in mid-sized communities,
delivering analog and digital video, high-speed Internet and, in
selected markets, voice telephony to its customers.
Any statements in this press release that are not historical facts
are forward-looking statements within the meaning of Section 21E of
the Securities Exchange Act of 1934. The words "estimate," "expect,"
"anticipate" and other expressions that indicate future events and
trends identify forward-looking statements. The above forward-looking
statements are subject to risks and uncertainties and are subject to
change based upon a variety of factors that could cause actual results
to differ materially from those Insight anticipates. Factors that
could have a material and adverse impact on actual results include:
all of the services offered by Insight face a wide range of
competition; Insight has substantial debt and has significant interest
payment requirements; there is uncertainty surrounding the potential
dissolution of Insight's joint venture with a subsidiary of Comcast
Corporation; the terms of Insight Midwest's indebtedness limits
Insight's ability to access the cash flow of Insight Midwest's
subsidiaries; Insight has a history of net losses; Insight's
programming costs are substantial; general business conditions,
economic uncertainty or slowdown, and the effects of governmental
regulation; and the other risk factors described in Insight's annual
report on Form 10-K and other periodic filings. Insight does not
undertake any obligation to publicly update or release any revisions
to these forward-looking statements to reflect events or circumstances
after the date of this press release or to reflect the occurrence of
unanticipated events, except as required by law.
8
INSIGHT COMMUNICATIONS COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share
amounts)
June 30, December 31,
2006 2005
------------ ------------
unaudited
Assets
Cash and cash equivalents $ 4,586 $ 29,782
Investments 6,419 5,901
Trade accounts receivable, net of
allowance for doubtful accounts of $813
and $1,079 as of June 30, 2006 and
December 31, 2005 24,839 27,261
Launch funds receivable 470 974
Prepaid expenses and other current assets 12,252 9,645
------------ ------------
Total current assets 48,566 73,563
Fixed assets, net 1,143,174 1,130,705
Goodwill 72,430 72,430
Franchise costs 2,361,959 2,361,959
Deferred financing costs, net of
accumulated amortization of $27,119 and
$24,302 as of June 30, 2006 and December
31, 2005 21,406 24,220
Other non-current assets 2,836 2,287
------------ ------------
Total assets $ 3,650,371 $ 3,665,164
============ ============
9
INSIGHT COMMUNICATIONS COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share amounts)
June 30, December 31,
2006 2005
----------- -----------
unaudited
Liabilities and stockholders' equity
Accounts payable $ 42,370 $ 42,333
Accrued expenses and other current
liabilities 47,132 45,413
Accrued property taxes 13,428 12,921
Accrued programming costs (inclusive of
$30,245 and $29,878 due to related parties
as of June 30, 2006 and December 31, 2005) 46,654 43,705
Deferred revenue 2,804 4,978
Interest payable 36,679 20,459
Debt - current portion 83,500 83,500
----------- -----------
Total current liabilities 272,567 253,309
Deferred revenue 1,067 1,499
Debt 2,663,414 2,676,418
Other non-current liabilities 5,207 2,382
Minority interest 246,396 251,011
Stockholders' equity:
Voting preferred stock, $.01 par value:
Series A - 1,000,000 shares authorized;
848,945 shares issued and outstanding as
of June 30, 2006 and December 31, 2005 8 8
Series B - 1,000,000 shares authorized;
517,836 shares issued and outstanding as
of June 30, 2006 and December 31, 2005 5 5
Non-voting preferred stock, $.01 par value:
Series C - 15,000,000 shares authorized;
13,364,693 shares issued and outstanding
as of June 30, 2006 and December 31, 2005 134 134
Series D - 50,000,000 shares authorized;
47,015,659 shares issued and outstanding
as of June 30, 2006 and December 31, 2005 470 470
Non-voting common stock, $.01 par value:
Series E - 5,000,000 shares authorized;
3,665,747 and 0 shares issued and
outstanding as of June 30, 2006 and
December 31, 2005 37 -
Series F - 100,000 shares authorized;
92,470 and 0 shares issued and outstanding
as of June 30, 2006 and December 31, 2005 1 -
Voting common stock, $.01 par value:
Series G - 10,000,000 shares authorized; 0
shares issued and outstanding as of June
30, 2006 and December 31, 2005 - -
Additional paid-in-capital 829,342 829,337
Accumulated deficit (364,913) (345,199)
Deferred stock compensation (3,364) (4,210)
----------- -----------
Total stockholders' equity 461,720 480,545
----------- -----------
Total liabilities and stockholders' equity $ 3,650,371 $ 3,665,164
=========== ===========
10
INSIGHT COMMUNICATIONS COMPANY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(dollars in thousands)
Three months ended Six months ended
June 30, June 30,
------------------- ---------------------
2006 2005* 2006 2005*
-------- --------- --------- ----------
Revenue $311,717 $279,311 $ 612,998 $ 548,638
Operating costs and
expenses:
Programming and other
operating costs (exclusive
of depreciation and
amortization) (inclusive
of $44,257 and $87,338,
and $39,176 and $80,675 of
programming expense
incurred through related
parties for the three and
six months ended June 30,
2006 and 2005) 112,660 92,172 222,245 190,755
Selling, general and
administrative (inclusive
of $334 and $884, and
$1,543 and $3,450 of
stock-based compensation
for the three and six
months ended June 30, 2006
and 2005) 81,820 66,262 161,815 131,343
Depreciation and
amortization 67,343 61,266 131,655 122,219
-------- -------- --------- ---------
Total operating costs and
expenses 261,823 219,700 515,715 444,317
-------- -------- --------- ---------
Operating income 49,894 59,611 97,283 104,321
Other income (expense):
Interest expense (61,208) (56,291) (122,283) (111,008)
Interest income 369 761 881 1,023
Other income (expense) 20 543 (50) 671
-------- -------- --------- ---------
Total other expense, net (60,819) (54,987) (121,452) (109,314)
Income (loss) before
minority interest and
income taxes (10,925) 4,624 (24,169) (4,993)
Minority interest income
(expense) 2,110 (5,227) 4,615 (3,827)
-------- -------- --------- ---------
Loss before income taxes (8,815) (603) (19,554) (8,820)
Provision for income taxes (80) (125) (160) (250)
-------- -------- --------- ---------
Net loss $ (8,895) $ (728) $ (19,714) $ (9,070)
======== ======== ========= =========
* Reclassifications have been made to the prior year's
financial statements to conform to those used in 2006.
11
INSIGHT COMMUNICATIONS COMPANY, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
(dollars in thousands)
-------------------------
Six months ended June 30,
-------------------------
2006 2005
----------- -----------
Operating activities:
Net loss $ (19,714) $ (9,070)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization 131,655 122,219
Stock-based compensation 884 3,450
Non-cash consulting expense - 30
Gain on interest rate swaps - (812)
Minority interest (4,615) 3,827
Provision for losses on trade accounts
receivable 7,026 8,221
Contribution of stock to 401(k) Plan - 1,434
Amortization of note discount 6,571 18,801
Changes in operating assets and
liabilities:
Trade accounts receivable (4,604) (1,065)
Launch funds receivable 504 2,194
Prepaid expenses and other assets (3,201) (8,206)
Accounts payable 37 7,889
Interest payable 16,220 42
Accrued expenses and other liabilities 2,569 (5,727)
----------- -----------
Net cash provided by operating activities 133,332 143,227
----------- -----------
Investing activities:
Purchase of fixed assets (141,765) (93,513)
Sale of fixed assets 504 957
Purchase of investments (518) (1,307)
Sale of investments - 926
----------- -----------
Net cash used in investing activities (141,779) (92,937)
----------- -----------
Financing activities:
Repayment of credit facilities (41,750) (41,750)
Net proceeds from borrowings under credit
facility 25,000 -
Other 1 -
----------- -----------
Net cash used in financing activities (16,749) (41,750)
----------- -----------
Net increase (decrease) in cash and cash
equivalents (25,196) 8,540
Cash and cash equivalents, beginning of
period 29,782 100,144
----------- -----------
Cash and cash equivalents, end of period $ 4,586 $ 108,684
=========== ===========
12
INSIGHT COMMUNICATIONS COMPANY, INC.
OPERATING STATISTICS
(in thousands, except per customer and penetration data)
Q2 Q1 Q2
2006 2006 2005
--------- --------- ---------
Customer Relationships 1,375.1 1,376.8 1,315.4
Total Average Monthly Revenue per Basic
Customer $79.65 $77.60 $73.64
Basic Cable
- -----------
Homes Passed 2,445.9 2,434.9 2,396.4
Basic Cable Customers 1,302.4 1,306.7 1,257.2
Basic Cable Penetration 53.2% 53.7% 52.5%
Cable Revenue $160,328 $158,207 $150,071
Average Monthly Cable Revenue per Basic
Customer $40.97 $40.75 $39.57
High-Speed Internet ("HSI")
- ---------------------------
HSI Homes Passed 2,398.2 2,387.0 2,338.7
HSI Customers 534.5 514.8 391.3
HSI Penetration 22.3% 21.6% 16.7%
HSI Revenue $58,616 $56,497 $46,318
Average Monthly HSI Revenue per Basic
Customer $14.98 $14.55 $12.21
Average Monthly HSI Revenue per HSI
Customer $37.24 $38.23 $40.68
Digital Cable
- -------------
Digital Universe 1,243.9 1,245.4 1,210.5
Digital Customers 572.2 560.5 460.8
Digital Cable Penetration 46.0% 45.0% 38.1%
Digital Revenue $34,307 $31,723 $27,838
Average Monthly Digital Revenue per
Basic Customer $8.77 $8.17 $7.34
Average Monthly Digital Revenue per
Digital Customer $20.19 $19.59 $20.18
Telephone
- ---------
Telephone Universe (marketable homes) 871.8 858.3 763.7
Telephone Customers 107.2 99.7 73.5
Telephone Penetration (to marketable
homes) 12.3% 11.6% 9.6%
Telephone Revenue $12,528 $11,355 $8,387
Average Monthly Telephone Revenue per
Basic Customer $3.20 $2.92 $2.21
Average Monthly Telephone Revenue per
Telephone Customer $40.37 $39.93 $39.35
Advertising Revenue
- -------------------
Advertising Revenue $20,020 $17,697 $19,749
Average Monthly Advertising Revenue per
Basic Customer $5.12 $4.56 $5.21
Other Revenue
- -------------
Other Revenue $25,918 $25,802 $26,948
Average Monthly Other Revenue per Basic
Customer $6.61 $6.65 $7.10
13
INSIGHT COMMUNICATIONS COMPANY, INC.
NCTA STANDARD REPORTING CATEGORIES
CAPITAL EXPENDITURES
(unaudited)
(in thousands)
Three Six Twelve
Months Months Months
Ended Ended Ended
June 30, June 30, December 31,
Insight Consolidated 2006 2006 2005
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Customer Premise Equipment $ 49,036 $ 85,678 $ 114,846
Scaleable Infrastructure 8,170 12,661 20,694
Line Extensions 6,830 13,163 26,813
Upgrade/Rebuild 4,737 8,456 24,704
Support Capital 15,363 21,807 33,045
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Total Insight Consolidated $ 84,136 $ 141,765 $ 220,102
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CONTACT: Insight Communications
Sandy Colony, 917-286-2300