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8-K
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 8-K on 07/27/2017
Entire Document
 

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND OPERATING DATA
(dollars in millions, except per share data)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
 
 
2017
 
2016
 
 
 
Actual
 
Pro Forma
 
% Change
 
Actual
 
Pro Forma
 
% Change
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
Video
$
4,124

 
$
4,125

 
 %
 
$
8,203

 
$
8,198

 
0.1
 %
Internet
3,513

 
3,133

 
12.1
 %
 
6,911

 
6,170

 
12.0
 %
Voice
650

 
729

 
(10.9
)%
 
1,344

 
1,458

 
(7.9
)%
Residential revenue
8,287

 
7,987

 
3.8
 %
 
16,458

 
15,826

 
4.0
 %
Small and medium business
924

 
843

 
9.7
 %
 
1,824

 
1,651

 
10.5
 %
Enterprise
548

 
501

 
9.3
 %
 
1,087

 
991

 
9.7
 %
Commercial revenue
1,472

 
1,344

 
9.5
 %
 
2,911

 
2,642

 
10.2
 %
Advertising sales
381

 
405

 
(5.8
)%
 
718

 
770

 
(6.7
)%
Other
217

 
233

 
(6.8
)%
 
434

 
473

 
(8.3
)%
Total Revenue
10,357

 
9,969

 
3.9
 %
 
20,521

 
19,711

 
4.1
 %
COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Programming
2,649

 
2,417

 
9.6
 %
 
5,253

 
4,824

 
8.9
 %
Regulatory, connectivity and produced content
532

 
550

 
(3.3
)%
 
1,030

 
1,055

 
(2.4
)%
Costs to service customers
1,907

 
1,984

 
(3.9
)%
 
3,855

 
3,917

 
(1.6
)%
Marketing
601

 
616

 
(2.4
)%
 
1,183

 
1,208

 
(2.1
)%
Transition costs
30

 
25

 
21.9
 %
 
81

 
46

 
77.3
 %
Other expense
791

 
835

 
(5.2
)%
 
1,618

 
1,686

 
(4.0
)%
Total operating costs and expenses (exclusive of items shown separately below)
6,510

 
6,427

 
1.3
 %
 
13,020

 
12,736

 
2.2
 %
Adjusted EBITDA
3,847

 
3,542

 
8.6
 %
 
7,501

 
6,975

 
7.5
 %
Adjusted EBITDA margin
37.1
%
 
35.5
%
 
 
 
36.5
%
 
35.4
%
 
 
Depreciation and amortization
2,595

 
2,338

 
 
 
5,145

 
4,623

 
 
Stock compensation expense
65

 
72

 
 
 
134

 
138

 
 
Other operating expenses, net
135

 
289

 
 
 
229

 
312

 
 
Income from operations
1,052

 
843

 
 
 
1,993

 
1,902

 
 
OTHER EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
(749
)
 
(723
)
 
 
 
(1,462
)
 
(1,431
)
 
 
Loss on extinguishment of debt
(1
)
 
(110
)
 
 
 
(35
)
 
(110
)
 
 
Loss on financial instruments, net
(70
)
 
(50
)
 
 
 
(32
)
 
(55
)
 
 
Other pension benefits
13

 
526

 
 
 
26

 
536

 
 
Other income (expense), net
(2
)
 
2

 
 
 
(11
)
 
10

 
 
 
(809
)
 
(355
)
 
 
 
(1,514
)
 
(1,050
)
 
 
Income before income taxes
243

 
488

 
 
 
479

 
852

 
 
Income tax expense
(48
)
 
(157
)
 
 
 
(73
)
 
(272
)
 
 
Consolidated net income
195

 
331

 
 
 
406

 
580

 
 
Less: Net income attributable to noncontrolling interests
(56
)
 
(83
)
 
 
 
(112
)
 
(153
)
 
 
Net income attributable to Charter shareholders
$
139

 
$
248

 
 
 
$
294

 
$
427

 
 
EARNINGS PER COMMON SHARE
 
 
 
 
 
 
 
 
 
 
 
ATTRIBUTABLE TO CHARTER SHAREHOLDERS:
 
 
 
 
 
 
 
 
 
 
Basic
$
0.53

 
$
0.92

 
 
 
$
1.11

 
$
1.58

 
 
Diluted
$
0.52

 
$
0.91

 
 
 
$
1.09

 
$
1.56

 
 
Weighted average common shares outstanding, basic
263,460,911

 
270,464,654

 
 
 
266,217,549

 
270,105,143

 
 
Weighted average common shares outstanding, diluted
267,309,261

 
273,802,246

 
 
 
270,249,433

 
273,469,536

 
 


Pro forma results reflect certain acquisitions of cable systems in 2016 as if they occurred as of January 1, 2015. Adjusted EBITDA is a non-GAAP term. See page 7 of this addendum for the reconciliation of Adjusted EBITDA to consolidated net income as defined by GAAP. All percentages are calculated using whole numbers. Minor differences may exist due to rounding.

Addendum to Charter Communications, Inc. Second Quarter 2017 Earnings Release
Page 2 of 8