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SEC Filings

10-Q
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 10-Q on 08/09/2016
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of our long-term debt matures in 2016, $2.2 billion in 2017, $2.2 billion in 2018, $3.5 million in 2019, $5.2 billion in 2020 and $47.0 billion thereafter.

Our projected cash needs and projected sources of liquidity depend upon, among other things, our actual results, and the timing and amount of our expenditures. Free cash flow was $524 million and $158 million for the three months ended June 30, 2016 and 2015, respectively, and $463 million and $259 million for the six months ended June 30, 2016 and 2015, respectively. As of June 30, 2016, the amount available under our credit facilities was approximately $2.8 billion and cash on hand was approximately $555 million. We expect to utilize free cash flow, cash on hand and availability under our credit facilities as well as future refinancing transactions to further extend the maturities of or reduce the principal on our obligations. The timing and terms of any refinancing transactions will be subject to market conditions. Additionally, we may, from time to time, and depending on market conditions and other factors, use cash on hand and the proceeds from securities offerings or other borrowings to retire our debt through open market purchases, privately negotiated purchases, tender offers or redemption provisions. We believe we have sufficient liquidity from cash on hand, free cash flow and Charter Operating's revolving credit facility as well as access to the capital markets to fund our projected operating cash needs.

We continue to evaluate the deployment of our anticipated future free cash flow including to invest in our business growth and other strategic opportunities, including mergers and acquisitions as well as stock repurchases and dividends and to reduce our leverage. Our target leverage remains at 4 to 4.5 times, and 3.5 times at the Charter Operating level. Charter’s board of directors recently authorized management to engage in opportunistic share repurchases of up to $750 million in any six-month period provided that Charter’s net debt remains within its then current target leverage range. Charter is not obligated to acquire any particular amount of common stock, and the timing of any purchases that may occur cannot be predicted and will largely depend on market conditions and other potential uses of capital. Purchases may include open market purchases or negotiated transactions. As possible acquisitions, swaps or dispositions arise in our industry, we actively review them against our objectives including, among other considerations, improving the operational efficiency, clustering or technology capabilities of our business and achieving appropriate return targets, and we may participate to the extent we believe these possibilities present attractive opportunities. However, there can be no assurance that we will actually complete any acquisitions, dispositions or system swaps, or that any such transactions will be material to our operations or results.
    
Free Cash Flow

Free cash flow increased $366 million and $204 million during the three and six months ended June 30, 2016 compared to the corresponding prior periods in 2015, respectively, due to the following (dollars in millions).

 
Three months ended
June 30, 2016
compared to
three months ended
June 30, 2015
Increase / (Decrease)
 
Six months ended
June 30, 2016
compared to
six months ended
June 30, 2015
Increase / (Decrease)
 
 
 
 
Increase in Adjusted EBITDA
$
1,372

 
$
1,455

Changes in working capital, excluding change in accrued interest
451

 
480

Increase in cash paid for interest, net
(242
)
 
(435
)
Increase in capital expenditures
(828
)
 
(906
)
Other, net
(387
)
 
(390
)
 
 
 
 
 
$
366

 
$
204




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