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SEC Filings

10-Q
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 10-Q on 12/22/1999
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RESULTS OF OPERATIONS - SUPPLEMENTAL ANALYSIS FOR THE QUARTER ENDED SEPTEMBER
30, 1999 VERSUS THE QUARTER ENDED SEPTEMBER 30, 1998 (FOR THE SYSTEMS OPERATED
ON OR BEFORE JULY 1, 1998)

The following discussion is provided to show the results of operations on a
comparable basis for only those systems managed by Charter Investment during the
three months ended September 30, 1999 versus the three months ended September
30, 1998. Specifically, this analysis excludes systems acquired by the Company
after July 1, 1998. Further, this analysis excludes the Marcus systems as
Charter Investment did not begin to manage these systems until October 1998.

Revenues increased by $15.1 million or 9.8% when comparing the revenues for the
quarter ended September 30, 1999 to the results for the comparable systems for
the quarter ended September 30, 1998. This increase is due to a net gain of
approximately 49,000 or 3.9% basic subscribers between quarters and retail rate
increases implemented in certain of the Company's systems. In addition, the
Company has increased its ratio of premium subscriptions to basic subscribers
from .70 to 1.00 to .75 to 1.00 as a result of marketing multiple premium
subscriptions in a packaged format at a discounted retail rate.

Operating, general and administrative expenses increased approximately $6.6
million or 8.4% when comparing the operating expenses for the quarter ended
September 30, 1999 to the results for the comparable systems for the quarter
ended September 30, 1998. This increase is primarily due to increases in license
fees paid for programming as a result of additional subscribers, new channels
launched and increases in the rates paid to the programming services. The
Company believes that the growth in programming expense is consistent with
industry-wide increases.

The Company experienced growth in adjusted EBITDA, as defined, of approximately
$8.4 million or 11.3% when comparing adjusted EBITDA for the quarter ended
September 30, 1999 to the results for the comparable systems for the quarter
ended September 30, 1999. Adjusted EBITDA margin increased from 48.7% to 49.3%
when comparing the similar periods, primarily as a result of the increase in
revenues.

NEW PRODUCTS AND SERVICES

We offer our customers a full array of traditional cable television services and
programming and we have begun to offer new and advanced high bandwidth services
such as high-speed Internet access. We plan to continually enhance and upgrade
these services, including adding new programming and other telecommunications
services, and will continue to position cable television as an essential
service.

A variety of emerging technologies and the rapid growth of Internet usage have
presented us with substantial opportunities to provide new or expanded products
and services to our customers and to expand our sources of revenue. The desire
for such new technologies and the use of the Internet by businesses in
particular have triggered a significant increase in our market penetration. As a
result, we are in the process of introducing a variety of new or expanded
products and services beyond the traditional offerings of analog television
programming for the benefit of both our residential and commercial customers.
These new products and services in the following:

          - Digital television and its related enhancements; 
          - High-speed Internet access via cable modems; 
          - Internet access through television access service; and 
          - Dial-up Internet access.





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