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8-K
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 8-K on 07/27/2017
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Second Quarter Financial Results

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,
 
2017
 
2016
 
 
 
2016
 
 
 
Actual
 
Pro Forma
 
% Change
 
Actual
 
% Change
REVENUES:
 
 
 
 
 
 
 
 
 
Video
$
4,124

 
$
4,125

 
 %
 
$
2,605

 
58.3
%
Internet
3,513

 
3,133

 
12.1
 %
 
1,950

 
80.2
%
Voice
650

 
729

 
(10.9
)%
 
423

 
53.4
%
Residential revenue
8,287

 
7,987

 
3.8
 %
 
4,978

 
66.4
%
Small and medium business
924

 
843

 
9.7
 %
 
520

 
77.7
%
Enterprise
548

 
501

 
9.3
 %
 
296

 
85.1
%
Commercial revenue
1,472

 
1,344

 
9.5
 %
 
816

 
80.4
%
Advertising sales
381

 
405

 
(5.8
)%
 
237

 
61.3
%
Other
217

 
233

 
(6.8
)%
 
130

 
67.0
%
Total Revenue
10,357

 
9,969

 
3.9
 %
 
6,161

 
68.1
%
 
 
 
 
 
 
 
 
 
 
COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
 
Total operating costs and expenses
6,510

 
6,427

 
1.3
 %
 
3,941

 
65.2
%
Adjusted EBITDA
$
3,847

 
$
3,542

 
8.6
 %
 
$
2,220

 
73.3
%
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA margin
37.1
%
 
35.5
%
 
 
 
36.0
%
 
 
 
 
 
 
 
 
 
 
 
 
Capital Expenditures
$
2,148

 
$
2,075

 
 
 
$
1,260

 
 
% Total Revenues
20.7
%
 
20.8
%
 
 
 
20.4
%
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Charter shareholders
$
139

 
$
248

 
 
 
$
3,067

 
 
Earnings per common share attributable to Charter shareholders:
 
 
 
 
 
 
 
 
 
Basic
$
0.53

 
$
0.92

 
 
 
$
16.73

 
 
Diluted
$
0.52

 
$
0.91

 
 
 
$
15.17

 
 
 
 
 
 
 
 
 
 
 
 
Net cash flows from operating activities
$
2,945

 
 
 
 
 
$
1,590

 
 
Free cash flow
$
1,144

 
 
 
 
 
$
524

 
 

Revenue

On a pro forma basis, second quarter revenues rose 3.9% year-over-year to $10.4 billion, driven by growth in Internet and commercial revenues. On an actual basis, second quarter revenue increased 68.1% year-over-year, driven by the Transactions.

Video revenues totaled $4.1 billion in the second quarter, and remained virtually unchanged compared to the prior year period on a pro forma basis, as annual and promotional rate adjustments and revenue allocation relating to the launch of Spectrum pricing and packaging in Legacy TWC and Legacy Bright House, were offset by a decrease in video customers over the last 12 months. On an actual basis, second quarter video revenues increased by 58.3% compared to the prior year period, driven by the Transactions.

On a pro forma basis, Internet revenues grew 12.1%, compared to the year-ago quarter, to $3.5 billion, driven by growth in Internet customers during the last year, promotional rolloff and revenue allocation relating to the launch of Spectrum pricing and packaging in Legacy TWC and Legacy Bright House. On an actual basis, Internet revenues grew 80.2% year-over-year, as a result of the Transactions.
 
Voice revenues totaled $650 million in the second quarter, a decrease of 10.9% on a pro forma basis compared to the second quarter of 2016, as promotions and value-based pricing more than offset voice

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