Cablevision 2013 Annual Report Download - page 64

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(58)
Selling, general and administrative expenses include customer related costs, principally from the
operation and maintenance of our call center facilities that handle customer inquiries and billing and
collection activities. These costs generally fluctuate as the number of customers increases or decreases
and rise as a result of general inflationary cost increases for employees and various other expenses. Sales
and marketing costs primarily consist of employee costs and advertising production and placement costs
associated with acquiring and retaining customers. These costs vary period to period and may increase
with intense competition.
Restructuring expense of $11,283 for 2013 is associated with the elimination of 234 positions as a result
of a strategic evaluation of the Company's operations.
Depreciation and amortization increased $750 for 2013 as compared to 2012. The net increase resulted
primarily from the depreciation of new asset purchases, partially offset by certain assets becoming fully
depreciated.
Adjusted operating cash flow decreased $58,512 (3%) for the year ended December 31, 2013 as
compared to 2012. The decrease was due primarily to an increase in both technical and operating and
selling, general and administrative expenses, excluding depreciation and amortization, share-based
compensation and restructuring expense, partially offset by an increase in revenue, net, as discussed
above.
Lightpath
The table below sets forth, for the periods presented, certain historical financial information and the
percentage that those items bear to revenues, net for our Lightpath segment:
Years Ended December 31,
2013 2012
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Favorable
(Unfavorable)
Revenues, net .................
.
$332,609 100% $323,776
100%
$8,833
Technical and operating
expenses (excluding
depreciation and
amortization shown
below) ........................
.
111,982 34 116,855
36
4,873
Selling, general and
administrative
expenses .....................
.
81,176 24 78,700
24
(2,476)
Restructuring expense.....
.
1,558 - -
-
(1,558)
Depreciation and
amortization ................
.
82,208 25 87,768
27
5,560
Operating income........
.
$55,685 17% $ 40,453
12%
$15,232
The following is a reconciliation of operating income to AOCF:
Years Ended December 31,
2013
2012
Favorable
Amount
Amount
(Unfavorable)
Operating income .................................................................. $ 55,685
$ 40,453
$15,232
Share-based compensation ..................................................... 6,757
7,188
(431)
Restructuring expense............................................................ 1,558
-
1,558
Depreciation and amortization ............................................... 82,208
87,768
(5,560)
AOCF ............................................................................. $146,208
$135,409
$10,799