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8-K
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 8-K on 10/26/2017
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 September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
 
 
2017
 
2016
 
 
 
Actual
 
Actual
 
% Change
 
Actual
 
Actual
 
% Change
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
Video
$
4,213

 
$
4,094

 
2.9
 %
 
$
12,416

 
$
7,869

 
57.8
%
Internet
3,556

 
3,206

 
10.9
 %
 
10,467

 
5,960

 
75.6
%
Voice
611

 
728

 
(16.1
)%
 
1,955

 
1,286

 
51.9
%
Residential revenue
8,380

 
8,028

 
4.4
 %
 
24,838

 
15,115

 
64.3
%
Small and medium business
931

 
867

 
7.4
 %
 
2,755

 
1,589

 
73.3
%
Enterprise
553

 
508

 
8.9
 %
 
1,640

 
903

 
81.6
%
Commercial revenue
1,484

 
1,375

 
8.0
 %
 
4,395

 
2,492

 
76.3
%
Advertising sales
373

 
420

 
(11.1
)%
 
1,091

 
729

 
49.9
%
Other
221

 
214

 
3.0
 %
 
655

 
392

 
66.9
%
Total Revenue
10,458

 
10,037

 
4.2
 %
 
30,979

 
18,728

 
65.4
%
COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Programming
2,699

 
2,404

 
12.3
 %
 
7,952

 
4,648

 
71.1
%
Regulatory, connectivity and produced content
523

 
515

 
1.6
 %
 
1,553

 
944

 
64.5
%
Costs to service customers
1,943

 
2,016

 
(3.6
)%
 
5,798

 
3,663

 
58.3
%
Marketing
629

 
596

 
5.6
 %
 
1,812

 
1,143

 
58.6
%
Transition costs
23

 
32

 
(28.6
)%
 
104

 
78

 
33.4
%
Other expense
822

 
838

 
(2.0
)%
 
2,440

 
1,513

 
61.3
%
Total operating costs and expenses (exclusive of items shown separately below)
6,639

 
6,401

 
3.7
 %
 
19,659

 
11,989

 
64.0
%
Adjusted EBITDA
3,819

 
3,636

 
5.0
 %
 
11,320

 
6,739

 
68.0
%
Adjusted EBITDA margin
36.5
%
 
36.2
%
 
 
 
36.5
%
 
36.0
%
 
 
Depreciation and amortization
2,701

 
2,437

 
 
 
7,846

 
4,412

 
 
Stock compensation expense
64

 
81

 
 
 
198

 
168

 
 
Other operating expenses, net
145

 
207

 
 
 
374

 
776

 
 
Income from operations
909

 
911

 
 
 
2,902

 
1,383

 
 
OTHER EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
(788
)
 
(724
)
 
 
 
(2,250
)
 
(1,771
)
 
 
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 expense, net
(3
)
 
(5
)
 
 
 
(14
)
 
(10
)
 
 
 
(791
)
 
(645
)
 
 
 
(2,305
)
 
(1,342
)
 
 
Income before income taxes
118

 
266

 
 
 
597

 
41

 
 
Income tax benefit (expense)
(26
)
 
(16
)
 
 
 
(99
)
 
3,135

 
 
Consolidated net income
92

 
250

 
 
 
498

 
3,176

 
 
Less: Net income attributable to noncontrolling interests
(44
)
 
(61
)
 
 
 
(156
)
 
(108
)
 
 
Net income attributable to Charter shareholders
$
48

 
$
189

 
 
 
$
342

 
$
3,068

 
 
EARNINGS PER COMMON SHARE
 
 
 
 
 
 
 
 
 
 
 
ATTRIBUTABLE TO CHARTER SHAREHOLDERS:
 
 
 
 
 
 
 
 
 
 
Basic
$
0.19

 
$
0.70

 
 
 
$
1.31

 
$
16.52

 
 
Diluted
$
0.19

 
$
0.69

 
 
 
$
1.29

 
$
15.23

 
 
Weighted average common shares outstanding, basic
253,923,805

 
271,263,259

 
 
 
262,074,603

 
185,706,106

 
 
Weighted average common shares outstanding, diluted
258,341,851

 
275,373,202

 
 
 
266,363,602

 
208,460,148

 
 


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. Third Quarter 2017 Earnings Release
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