Exhibit 99.1
Insight Announces First Quarter 2007 Results
NEW YORK--(BUSINESS WIRE)--May 3, 2007--Insight Communications
Company today announced financial results for the quarter ended March
31, 2007.
First Quarter Highlights
-- Revenue of $339.5 million, an increase of 13% over Q1 2006
-- Adjusted Operating Income before Depreciation and
Amortization* of $129.3 million, an increase of 15% over Q1
2006
-- Capital expenditures of $76.9 million
-- Free Cash Flow* of $16.8 million
-- Total Customer Relationships of 1,426,300 at March 31, 2007,
an increase of 49,500 compared to 1,376,800 at March 31, 2006
-- Total Revenue Generating Units ("RGUs") of 2,801,600 at March
31, 2007, an increase of 319,900, or 13%, from March 31, 2006,
comprised of:
-- Basic customer net gain of 21,200, resulting in 1,344,000
basic customers at quarter end, representing a 2.9%
annual growth rate in basic customers from March 31, 2006
-- High-speed Internet ("HSI") customer net gain of 44,800,
compared to net additions in Q1 2006 of 44,400. Total HSI
customers at quarter end were 656,000, a penetration of
27% of HSI homes passed.
-- Digital customer net gain of 32,200, compared to net
additions in Q1 2006 of 41,700. Total digital customers
at quarter end were 653,800, a penetration of 51% of the
company's digital universe.
-- Telephone customer net gain of 24,400, the company's best
growth quarter ever, compared to net additions in Q1 2006
of 9,800. Total telephone customers at quarter end were
147,800, a penetration of 7.5% of the company's telephone
universe.
-- As of March 31, 2007, 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 6.
(Page 1)
On April 1, 2007, Insight Midwest, L.P.'s partnership agreement
was amended, and Insight agreed with Comcast on a division of Insight
Midwest's assets and liabilities. Upon completion of the transaction,
Insight will own 100% of the cable systems serving customers in
Louisville; Lexington; Bowling Green; and Covington, Ky., and in
Evansville, Ind. and Columbus, Ohio. Comcast will own 100% of the
cable systems serving customers in Rockford/Dixon; Quincy/Macomb;
Springfield; Peoria; and Champaign/Urbana, Ill., and in Bloomington;
Anderson; and Lafayette/Kokomo, Ind. Pending completion of the
transaction, Insight continues to serve as general partner and manager
of all of the cable systems of Insight Midwest. In conjunction with
the division of assets and liabilities, the Insight systems group was
initially allocated approximately $1.260 billion of the partnership's
debt, and the Comcast systems group was initially allocated
approximately $1.335 billion of the partnership's debt. The closing is
subject to closing conditions, including local governmental approvals
and regulatory approvals and is expected to be completed by the end of
2007.
Operating Results for the Three Months Ended March 31, 2007
Compared to the Three Months Ended March 31, 2006
Revenue for the three months ended March 31, 2007, totaled $339.5
million, an increase of 13% over the prior year, due primarily to RGU
growth across all of Insight's services, as well as video rate
increases. High-speed Internet service revenue increased 23% 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 44,800 high-speed Internet
customers during the quarter to end at 656,000 customers.
Basic cable service revenue increased 6% due to an increased
customer base and video rate increases, partially offset by
promotional discounts. Insight added a net 21,200 basic customers
during the quarter to end at 1,344,000 customers. In addition, digital
service revenue increased 28% over the prior year due to an increased
customer base and a $1.60 increase in digital average revenue per
customer ("ARPU"). Insight added a net 32,200 digital customers during
the quarter to end at 653,800 customers.
Insight has been 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
customer education of product offerings.
To increase its bundling opportunities and extend its growth
potential in future years, the company successfully rolled out its
telephone product in eight previously unserved districts during the
second half of 2006 and in January 2007. As a result, the company
added a net 24,400 telephone customers during the quarter to end at
147,800 customers.
(Page 2)
Revenue by service offering was as follows for the three months ended
March 31 (dollars in thousands):
Revenue by Service Offering
--------------------------------------------- --------
THREE MONTHS % of THREE MONTHS % of % Change
ENDED MARCH Total ENDED MARCH Total in
31, 2007 Revenue 31, 2006 Revenue Revenue
------------ --------- ------------- -------- --------
Basic $ 168,151 49.5% $ 158,207 52.5% 6.3%
High-speed
Internet 69,531 20.5% 56,497 18.8% 23.1%
Digital 40,540 11.9% 31,723 10.5% 27.8%
Advertising 17,385 5.1% 17,697 5.9% -1.8%
Telephone 15,803 4.7% 11,355 3.8% 39.2%
Premium 14,195 4.2% 13,394 4.4% 6.0%
Franchise fees 7,998 2.4% 7,354 2.4% 8.8%
Other 5,866 1.7% 5,054 1.7% 16.1%
------------ --------- ------------- -------- --------
Total $ 339,469 100.0% $ 301,281 100.0% 12.7%
============ ========= ============= ======== ========
Total Customer Relationships were 1,426,300 as of March 31, 2007,
an increase of 49,500 from 1,376,800 as of March 31, 2006. 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.
In the quarter ended March 31, 2007, Insight added 122,600 RGUs, which
represent the sum of basic, digital, high-speed Internet and telephone
customers, and as of March 31, 2007, had 2,801,600 RGUs, an increase
of 13% from March 31, 2006.
RGUs by category were as follows (in thousands):
March 31, 2007 March 31, 2006
------------------- -------------------
Basic 1,344.0 1,306.7
High-speed Internet 656.0 514.8
Digital 653.8 560.5
Telephone 147.8 99.7
------------------- -------------------
Total RGUs 2,801.6 2,481.7
=================== ===================
Average monthly revenue per basic customer was $84.86 for the
three months ended March 31, 2007, compared to $77.60 for the three
months ended March 31, 2006. This primarily reflects the continued
growth of high-speed Internet and video product offerings in all
markets, as well as video rate increases.
Programming and other operating costs increased $8.4 million, or
8%. Increases in programming rates, customers and the addition of new
programming content were significant drivers of the cost increase for
the quarter ended March 31, 2007. For the quarter ended March 31,
2006, programming costs reflected certain programming credits
resulting 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
quarter ended March 31, 2007, were lower, causing overall programming
cost increases to be greater. Direct operating costs decreased due to
decreases in our high-speed Internet service costs as the company, in
2006, transitioned its Internet services in-house and realized both
cost savings and operational benefits from this investment even while
increasing its customer base. These decreases were partially offset by
an increase in telephone cost of service as the company successfully
rolled out this product in eight previously unserved districts during
the second half of 2006 and in January 2007.
(Page 3)
Selling, general and administrative expenses increased $12.5
million, or 16%, 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. The increase in
the number of employees represents investments in sales and marketing,
customer care and information technology personnel to continue to
upgrade and enhance Insight's product offerings, manage its
increasingly complex network and increase customer satisfaction. A
portion of the information technology personnel increases were
directly related to the transition of the company's Internet services
in-house. 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.
Franchise fees, customer billing and collection fees increased
primarily due to the increase in revenues and the customer base.
Depreciation and amortization expense increased $5.0 million, or
8%, primarily as a result of an increased level of capital
expenditures through March 31, 2007. These expenditures were primarily
for purchases of customer premise equipment, installation labor and
materials, capitalized labor, headend equipment, network extensions
and network capacity and bandwidth increases, 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 March 31,
2006.
As a result of the factors discussed above, Adjusted Operating
Income before Depreciation and Amortization increased $17.1 million to
$129.3 million, an increase of 15% over Q1 2006.
Interest expense decreased $3.2 million, or 5%, because of lower
interest rates, which averaged 8.3% for the three months ended March
31, 2007, as compared to 8.9% for the three months ended March 31,
2006, and as a result of the redemption of our 10 1/2% senior notes
and a portion of our 9 3/4% senior notes with the proceeds from our
new credit facility in the fourth quarter of 2006.
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 provision of new services and the
construction, expansion and maintenance of its broadband networks. 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 customer premise equipment (e.g., set-top boxes),
installation and deployment of new product and service offerings,
capitalized payroll, network capacity, bandwidth increases, network
extensions, 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.
(Page 4)
Cash provided by operations for the three months ended March 31,
2007 and 2006 was $93.7 million and $86.5 million. The increase was
primarily attributable to the timing of cash receipts and payments
related to our working capital accounts and a decrease in our net
loss. These increases were partially offset by a decrease in interest
payable because of the redemption of our 10 1/2% senior notes and a
portion of our 9 3/4% senior notes and the refinancing of our credit
facility in the fourth quarter of 2006.
Cash used in investing activities for the three months ended March
31, 2007 and 2006 was $76.9 million and $57.6 million, and was
primarily for capital expenditures. These expenditures principally
constituted purchases of customer premise equipment, installation
labor and materials and capitalized labor, all of which are necessary
to grow the customer base and expand the company's service offerings.
The increase in capital expenditures was driven primarily by increases
in customer premise equipment purchases and installation labor and
material expenditures.
Cash used in financing activities for the three months ended March
31, 2007 and 2006 was $25.4 million and $20.9 million. These
expenditures were primarily for the repayment of Insight's credit
facility.
Free Cash Flow for the three months ended March 31, 2007 totaled
$16.8 million, compared to $28.9 million for the three months ended
March 31, 2006. This decrease in Free Cash Flow from Q1 2006 to Q1
2007 of $12.1 million was primarily driven by the following:
-- A $30.7 million increase in cash interest expense paid, which
was primarily driven by the refinancing of Insight's credit
facility in the fourth quarter of 2006. Insight pays interest
quarterly on the new credit facility, and paid interest
semi-annually (in Q2 and Q4) on the bonds it refinanced.
Additionally, in February 2007, interest on the 12 1/4% Senior
Discount Notes was paid in cash whereas in February 2006 it
was paid in-kind; and
-- A $19.3 million increase in capital expenditures.
These increased uses of cash were offset by:
-- A $20.5 million increase in the generation of Free Cash Flow
over the same period in the prior year from changes in working
capital accounts; and
-- A $17.1 million increase in Adjusted Operating Income before
Depreciation and Amortization.
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. As of March 31, 2007,
Insight had the ability to draw upon $174.7 million of unused
availability to fund any shortfall resulting from the inability of
Insight Midwest's cash from operations to fund its capital
expenditures, meet its debt service requirement or otherwise fund its
operations. Insight expects to use any available Free Cash Flow to
repay its indebtedness.
(Page 5)
On February 12, 2007, Insight Midwest Holdings amended its $2.445
billion senior secured facility to reduce the applicable margin with
respect to its $1.8 billion B Term Loan facility by 25 basis points,
or 0.25%.
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.
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.
(Page 6)
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.
Reconciliation of Net Income (Loss) to Adjusted Operating Income
before Depreciation and Amortization
The following table reconciles Net Income (Loss) to Adjusted
Operating Income before Depreciation and Amortization. In addition,
the table provides the components from Net Income (Loss) to Operating
Income.
Three Months Ended
March 31,
--------------------
2007 2006
--------------------
(in thousands)
(unaudited)
Net income (loss) $ 1,804 $(10,819)
Provision for income taxes 121 80
--------------------
Income (loss) before income taxes 1,925 (10,739)
Minority interest (income) expense 553 (2,505)
--------------------
Income (loss) before minority interest and income
taxes 2,478 (13,244)
Other (income) expense:
Other (393) 70
Interest income (320) (512)
Interest expense 57,897 61,075
--------------------
Total other expense, net 57,184 60,633
--------------------
Operating income 59,662 47,389
Depreciation and amortization 69,279 64,312
Stock-based compensation 391 550
--------------------
Adjusted Operating Income before Depreciation and
Amortization $ 129,332 $112,251
====================
(Page 7)
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 Ended
March 31,
---------------------
2007 2006
---------------------
(in thousands)
(unaudited)
Operating income $ 59,662 $ 47,389
Depreciation and amortization 69,279 64,312
Stock-based compensation 391 550
---------------------
Adjusted Operating Income before Depreciation and
Amortization 129,332 112,251
Changes in working capital accounts(1) 18,371 (2,086)
Cash paid for interest (53,742) (23,087)
Cash paid for taxes (242) (553)
---------------------
Net cash provided by operating activities 93,719 86,525
Capital expenditures (76,927) (57,629)
---------------------
Free Cash Flow $ 16,792 $ 28,896
=====================
(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.
About Insight Communications
Insight Communications is the ninth largest cable operator in the
United States with approximately 1.4 million customer relationships in
the four contiguous states of Illinois, Kentucky, Indiana and Ohio.
Insight offers bundled, state-of-the-art analog and digital video,
high-speed Internet and voice telephony services 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; upon completion of the division of our joint
venture with a subsidiary of Comcast Corporation we will face new
challenges as a smaller company; 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.
(Page 8)
Insight Communications Company, Inc.
Consolidated Balance Sheets
(dollars in thousands, except share and per share amounts)
March 31, December 31,
2007 2006
------------ ------------
(unaudited)
Assets
Cash and cash equivalents $34,975 $43,573
Investments 7,000 7,000
Trade accounts receivable, net of allowance
for doubtful accounts of $1,002 and $1,148
as of March 31, 2007 and December 31, 2006 19,703 31,060
Launch funds receivable 220 355
Prepaid expenses and other current assets 7,993 8,473
------------ ------------
Total current assets 69,891 90,461
Fixed assets, net 1,159,784 1,151,260
Goodwill 72,430 72,430
Franchise costs 2,361,959 2,361,959
Deferred financing costs, net of accumulated
amortization of $30,354 and $29,473 as of
March 31, 2007 and December 31, 2006 18,584 19,053
Other non-current assets 2,454 2,941
------------ ------------
Total assets $3,685,102 $3,698,104
============ ============
(Page 9)
Insight Communications Company, Inc.
Consolidated Balance Sheets
(dollars in thousands, except share and per share amounts)
March 31, December 31,
2007 2006
----------- ------------
(unaudited)
Liabilities and stockholders' equity
Accounts payable $45,071 $43,772
Accrued expenses and other current
liabilities 40,772 45,521
Accrued property taxes 17,027 13,595
Accrued programming costs (inclusive of
$33,964 and $30,677 due to related parties
as of March 31, 2007 and December 31, 2006) 51,663 45,880
Deferred revenue 1,457 2,076
Interest payable 53,069 49,518
----------- ------------
Total current liabilities 209,059 200,362
Deferred revenue 493 683
Debt 2,781,772 2,805,722
Other non-current liabilities 317 -
Minority interest 246,187 245,634
Stockholders' equity:
Voting preferred stock, $.01 par value:
Series A - 1,000,000 shares authorized;
848,945 shares issued and outstanding as
of March 31, 2007 and December 31, 2006 8 8
Series B - 1,000,000 shares authorized;
517,836 shares issued and outstanding as
of March 31, 2007 and December 31, 2006 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 March 31, 2007 and December 31,
2006 134 134
Series D - 50,000,000 shares authorized;
47,015,659 shares issued and outstanding
as of March 31, 2007 and December 31,
2006 470 470
Non-voting common stock, $.01 par value:
Series E - 5,000,000 shares authorized;
3,516,997 and 3,536,247 shares issued
and outstanding as of March 31, 2007 and
December 31, 2006 35 35
Series F - 100,000 shares authorized;
95,180 and 93,250 shares issued and
outstanding as of March 31, 2007 and
December 31, 2006 1 1
Voting common stock, $.01 par value:
Series G - 10,000,000 shares authorized;
0 shares issued and outstanding as of
March 31, 2007 and December 31, 2006 - -
Additional paid-in-capital 826,899 826,509
Accumulated deficit (379,961) (381,765)
Accumulated other comprehensive income (loss) (317) 306
----------- ------------
Total stockholders' equity 447,274 445,703
----------- ------------
Total liabilities and stockholders'
equity $3,685,102 $3,698,104
=========== ============
(Page 10)
Insight Communications Company, Inc.
Consolidated Statements of Operations
(unaudited)
(dollars in thousands)
Three Months Ended March 31,
----------------------------
2007 2006
-------------- -------------
Revenue $339,469 $301,281
Operating costs and expenses:
Programming and other operating costs
(exclusive of depreciation and
amortization) (inclusive of $51,393
and $43,081 of programming expense
incurred through related parties for
the three months ended March 31, 2007
and 2006) 119,855 111,415
Selling, general and administrative
(inclusive of $391 and $550 of stock-
based compensation for the three
months ended March 31, 2007 and 2006) 90,673 78,165
Depreciation and amortization 69,279 64,312
-------------- -------------
Total operating costs and expenses 279,807 253,892
-------------- -------------
Operating income 59,662 47,389
Other income (expense):
Interest expense (57,897) (61,075)
Interest income 320 512
Other income (expense) 393 (70)
-------------- -------------
Total other expense, net (57,184) (60,633)
Income (loss) before minority interest
and income taxes 2,478 (13,244)
Minority interest income (expense) (553) 2,505
-------------- -------------
Income (loss) before income taxes 1,925 (10,739)
Provision for income taxes (121) (80)
-------------- -------------
Net income (loss) $1,804 ($10,819)
============== =============
(Page 11)
Insight Communications Company, Inc.
Consolidated Statement of Cash Flows
(unaudited)
(dollars in thousands)
Three Months Ended
March 31,
------------------
2007 2006
-------- ---------
Operating activities:
Net income (loss) $1,804 ($10,819)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 69,279 64,312
Stock-based compensation 391 550
Loss on interest rate swaps - 1,665
Minority interest 553 (2,505)
Provision for losses on trade accounts
receivable 2,559 2,904
Amortization of note discount 1,050 4,816
Changes in operating assets and liabilities:
Trade accounts receivable 8,798 6,780
Launch funds receivable 135 387
Prepaid expenses and other assets 949 (2,710)
Accounts payable 1,299 (8,092)
Interest payable 3,551 31,485
Accrued expenses and other liabilities 3,351 (2,248)
-------- ---------
Net cash provided by operating activities 93,719 86,525
-------- ---------
Investing activities:
Purchase of fixed assets (76,927) (57,629)
Sale of fixed assets 23 336
Purchase of investments - (257)
------------------
Net cash used in investing activities (76,904) (57,550)
-------- ---------
Financing activities:
Repayment of credit facilities (25,000) (20,875)
Debt refinancing costs (412) -
Other (1) 1
-------- ---------
Net cash used in financing activities (25,413) (20,874)
-------- ---------
Net increase (decrease) in cash and cash
equivalents (8,598) 8,101
Cash and cash equivalents, beginning of period 43,573 29,782
-------- ---------
Cash and cash equivalents, end of period $34,975 $37,883
======== =========
(Page 12)
Insight Communications Company, Inc.
Operating Statistics
(in thousands, except per customer and penetration data)
Q1 Q4 Q1
2007 2006 2006
--------- -------------------
Customer Relationships 1,426.3 1,401.8 1,376.8
Total Average Monthly Revenue per Basic
Customer $84.86 $83.65 $77.60
Basic Cable
- -----------------------------------------
Homes Passed 2,472.7 2,465.2 2,434.9
Basic Cable Customers 1,344.0 1,322.8 1,306.7
Basic Cable Penetration 54.4% 53.7% 53.7%
Cable Revenue $168,151 $162,262 $158,207
Average Monthly Cable Revenue per Basic
Customer $42.03 $40.95 $40.75
High-Speed Internet ("HSI")
- -----------------------------------------
HSI Homes Passed 2,446.8 2,439.6 2,387.0
HSI Customers 656.0 611.2 514.8
HSI Penetration 26.8% 25.1% 21.6%
HSI Revenue $69,531 $65,202 $56,497
Average Monthly HSI Revenue per Basic
Customer $17.38 $16.46 $14.55
Average Monthly HSI Revenue per HSI
Customer $36.58 $36.51 $38.23
Digital Cable
- -----------------------------------------
Digital Universe 1282.2 1259.6 1245.4
Digital Customers 653.8 621.6 560.5
Digital Cable Penetration 51.0% 49.3% 45.0%
Digital Revenue $40,540 $37,163 $31,723
Average Monthly Digital Revenue per Basic
Customer $10.13 $9.38 $8.17
Average Monthly Digital Revenue per
Digital Customer $21.19 $20.32 $19.59
Telephone
- -----------------------------------------
Telephone Universe (marketable homes) 1957.7 1392.7 858.3
Telephone Customers 147.8 123.4 99.7
Telephone Penetration (to marketable
homes) 7.5% 8.9% 11.6%
Telephone Revenue $15,803 $13,761 $11,355
Average Monthly Telephone Revenue per
Basic Customer $3.95 $3.47 $2.92
Average Monthly Telephone Revenue per
Telephone Customer $38.86 $38.83 $39.93
Advertising Revenue
- -----------------------------------------
Advertising Revenue $17,385 $25,988 $17,697
Average Monthly Advertising Revenue per
Basic Customer $4.35 $6.56 $4.56
Other Revenue
- -----------------------------------------
Other Revenue $28,059 $27,078 $25,802
Average Monthly Other Revenue per Basic
Customer $7.02 $6.83 $6.65
(Page 13)
Insight Communications Company, Inc.
NCTA Standard Reporting Categories
Capital Expenditures
(unaudited)
(in thousands)
Three Months Three Months Year
Ended Ended Ended
Insight Consolidated March 31, March 31, December 31,
2007 2006 2006
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Customer Premise Equipment $56,375 $36,642 $158,769
Scalable Infrastructure 5,455 4,491 37,820
Line Extensions 5,503 6,333 29,208
Upgrade/Rebuild 4,044 3,719 16,709
Support Capital 5,550 6,444 43,883
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Total Insight Consolidated $76,927 $57,629 $286,389
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(Page 14)
CONTACT: Insight Communications
Sandy Colony, 917-286-2300
SVP, Communications