Cablevision 2013 Annual Report Download - page 66

(60)
The following is a reconciliation of operating loss to AOCF deficit:
Years Ended December 31,
2013
2012
Favorable
Amount
Amount
(Unfavorable)
Operating loss ........................................................................
.
$(308,923)
$(288,408)
$(20,515)
Share-based compensation .....................................................
.
13,605
15,160
(1,555)
Restructuring expense (credits) ..............................................
.
10,709
(770)
11,479
Depreciation and amortization (including impairments) ..........
.
83,508
77,326
6,182
AOCF deficit ......................................................................
.
$(201,101)
$(196,692)
$ (4,409)
Revenues, net for the year ended December 31, 2013 decreased $7,270 (2%) as compared to revenues, net
for the prior year. The net decrease is attributable to the following:
Decrease in revenues at Newsday (from $283,917 to $265,504) due primarily to decreases in
advertising revenues as a result of the continued challenging economic environment and
competition from other media ...................................................................................................... $(18,413)
Increase in advertising revenues at News 12 Networks and commission revenues at Cablevision
Media Sales ................................................................................................................................. 9,535
Net decrease in other revenues ......................................................................................................... (438)
Intra-segment eliminations............................................................................................................... 2,046
$ (7,270)
As filed with the Alliance for Audited Media ("AAM") on January 15, 2014 and subject to audit by the
AAM, Newsday submitted its most recent report which indicated total average circulation for the three
months ended December 29, 2013 of approximately 437,000 on weekdays, approximately 434,000 on
Saturdays and approximately 495,000 on Sundays. These circulation figures include digital editions
(most of which are free to Optimum Online and certain Newsday print subscribers) to Newsday's
restricted access website and mobile applications. These circulation figures include Newsday's total
average print circulation of approximately 255,000 on weekdays, approximately 251,000 on Saturdays
and approximately 313,000 on Sundays, which represents a decline of approximately 6.4%, 5.3%, and
5.6%, respectively, over the comparable prior year period. Circulation revenue for the year ended
December 31, 2013 decreased $2,175 (3%) primarily due to a decline in home delivery and single copy
volume, partially offset by the impact of rate increases.
Newsday's other publications, which include amNew York and Star Community Publishing and are
distributed for free, filed their most recent Publishers statements with the Certified Audit of Circulations,
a subsidiary of the Alliance for Audited Media. amNew York averaged gross weekday circulation of
approximately 337,000 for the six months ended September 29, 2013, an increase of approximately 2.4%
over the comparable prior year period while Star Community Publishing distributed approximately
1,803,000 copies each week (for the six months ended September 29, 2013), representing a decrease of
approximately 2.2% over the comparable prior year period.
Technical and operating expenses (excluding depreciation and amortization shown below) for the year
ended December 31, 2013 decreased $15,879 (6%) as compared to the prior year. The net decrease is
attributable to the following:
Decrease in operating costs primarily at MSG Varsity of $13,693 due to reduced activities and at
Newsday (from $188,999 to $180,035, due primarily to lower employee related costs and a
decrease in newsprint and ink expenses) ....................................................................................... $(22,670)
Increase in expenses at News 12 Networks and other businesses, primarily employee costs and
professional fees .......................................................................................................................... 6,791
$(15,879)