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SEC Filings

10-Q
CCO HOLDINGS LLC filed this Form 10-Q on 10/27/2017
Entire Document
 


the covenants contained in the facilities and notes (all such documents have been previously filed with the Securities and Exchange Commission (the “SEC”)). For the purpose of calculating compliance with leverage covenants, we use Adjusted EBITDA, as presented, excluding certain expenses paid by our operating subsidiaries to other Charter entities. Our debt covenants refer to these expenses as management fees, which were $262 million and $791 million for the three and nine months ended September 30, 2017, respectively, and $330 million and $634 million for the three and nine months ended September 30, 2016, respectively.

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
Actual
Consolidated net income
$
106

 
$
266

 
$
549

 
$
679

Plus: Interest expense, net
795

 
729

 
2,268

 
1,391

Income tax (benefit) expense
6

 
(7
)
 
35

 

Depreciation and amortization
2,699

 
2,435

 
7,839

 
4,409

Stock compensation expense
64

 
81

 
198

 
168

Loss on extinguishment of debt

 

 
35

 
110

(Gain) loss on financial instruments, net
(17
)
 
(71
)
 
15

 
(16
)
Other pension (benefits) costs
17

 
(13
)
 
(9
)
 
(533
)
Other, net
147

 
208

 
376

 
515

Adjusted EBITDA
$
3,817

 
$
3,628

 
$
11,306

 
$
6,723

 
 
 
 
 
 
 
 
Net cash flows from operating activities
$
2,893

 
$
2,790

 
$
8,521

 
$
5,538

Less: Purchases of property, plant and equipment
(2,393
)
 
(1,748
)
 
(6,096
)
 
(3,437
)
Change in accrued expenses related to capital expenditures
79

 
(52
)
 
276

 
86

Free cash flow
$
579

 
$
990

 
$
2,701

 
$
2,187

 
Nine Months Ended
 
September 30, 2016
 
Pro forma
Consolidated net income
$
1,113

Plus: Interest expense, net
2,160

Depreciation and amortization
7,054

Stock compensation expense
219

Loss on extinguishment of debt
110

Gain on financial instruments, net
(16
)
Other pension benefits
(549
)
Other, net
505

Adjusted EBITDA
$
10,596


Liquidity and Capital Resources

Introduction

This section contains a discussion of our liquidity and capital resources, including a discussion of our cash position, sources and uses of cash, access to credit facilities and other financing sources, historical financing activities, cash needs, capital expenditures and outstanding debt.

2017 Financing Activities

In January 2017, Charter Operating entered into an amendment to its Amended and Restated Credit Agreement dated May 18, 2016 decreasing the applicable LIBOR margin on both the term loan E and term loan F to 2.00% and eliminating the LIBOR floor.



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