STAMFORD, Conn., Jan. 29,
2021 /PRNewswire/ -- Charter Communications, Inc. (along with
its subsidiaries, the "Company" or "Charter") today reported
financial and operating results for the three and twelve months
ended December 31, 2020.
Key highlights:
- As of December 31, 2020, Charter
served a total of 31.1 million residential and small and medium
business ("SMB") customers, with 1.9 million customers added in
2020 versus 1.1 million added in 2019. Charter added 197,000 total
customer relationships in the fourth quarter, compared to 268,000
during the fourth quarter of 2019.
- As of December 31, 2020, Charter
served a total of 28.9 million residential and SMB Internet
customers, with 2.2 million Internet customers added in 2020 versus
1.4 million added in 2019. Charter added 246,000 total Internet
customers in the fourth quarter compared to 339,000 during the
fourth quarter of 2019.
- As of December 31, 2020, Charter
served a total of 2.4 million mobile lines, with 1.3 million mobile
lines added in 2020 versus 948,000 added in 2019. Charter added
315,000 mobile lines in the fourth quarter, compared to 288,000
during the fourth quarter of 2019.
- Fourth quarter revenue of $12.6
billion grew by 7.3% year-over-year, driven by residential
revenue growth of 5.0%, mobile revenue growth of 80.9% and
advertising revenue growth of 43.9%.
- Fourth quarter Adjusted EBITDA1 of $5.0 billion grew by 10.2% year-over-year.
- For the year ended December 31,
2020, revenue of $48.1 billion
increased by 5.1% year-over-year. Full year 2020 Adjusted EBITDA
totaled $18.5 billion, 9.9% higher
than in 2019.
- Net income attributable to Charter shareholders totaled
$1.2 billion in the fourth quarter,
compared to $714 million during the
same period last year. For the year ended December 31, 2020, net income attributable to
Charter shareholders totaled $3.2
billion, compared to $1.7
billion in 2019.
- Fourth quarter capital expenditures totaled $2.1 billion and included $157 million of mobile-related capital
expenditures. For the year ended December
31, 2020, capital expenditures totaled $7.4 billion and included $508 million of mobile-related capital
expenditures.
- Full year 2020 free cash flow1 totaled $7.1 billion, compared to $4.6 billion in 2019.
- During the fourth quarter, Charter purchased approximately 7.4
million shares of Charter Class A common stock and Charter
Communications Holdings, LLC ("Charter Holdings") common units for
approximately $4.8 billion. For the
year ended December 31, 2020, Charter
purchased 21.1 million shares of Charter Class A common stock and
Charter Holdings common units for approximately $12.1 billion.
"Our 2020 performance demonstrates that our customer-friendly
operating strategy works well for Charter communities, employees
and shareholders, even in challenging economic and operating
environments," said Tom Rutledge,
Chairman and CEO of Charter. "We added nearly two million customer
relationships in 2020—800,000 more than we added in 2019—and demand
for our connectivity products remains strong. As we look forward,
we remain focused on the continued execution of our operating
strategy, driving customer, revenue and free cash flow growth,
enhancing value for our shareholders."
1.
|
Adjusted EBITDA and
free cash flow are non-GAAP measures defined in the "Use of
Adjusted EBITDA and Free Cash Flow Information" section and are
reconciled to net income attributable to Charter shareholders and
net cash flows from operating activities, respectively, in the
addendum of this news release.
|
Key Operating
Results
|
|
|
Approximate as
of
|
|
|
|
|
December 31,
2020
(a)
|
|
December 31,
2019
(a)
|
|
Y/Y
Change
|
Footprint
(b)
|
|
|
|
|
|
|
Estimated
Passings
|
|
53,300
|
|
|
52,154
|
|
|
2.2
|
%
|
|
|
|
|
|
|
|
Customer
Relationships (c)
|
|
|
|
|
|
|
Residential
|
|
29,079
|
|
|
27,277
|
|
|
6.6
|
%
|
SMB
|
|
2,051
|
|
|
1,958
|
|
|
4.8
|
%
|
Total Customer
Relationships
|
|
31,130
|
|
|
29,235
|
|
|
6.5
|
%
|
|
|
|
|
|
|
|
Residential
|
|
167
|
|
|
240
|
|
|
(30.3)
|
%
|
SMB
|
|
30
|
|
|
28
|
|
|
10.2
|
%
|
Total Customer
Relationships Quarterly Net Additions
|
|
197
|
|
|
268
|
|
|
(26.2)
|
%
|
|
|
|
|
|
|
|
Total Customer
Relationship Penetration of Estimated Passings (d)
|
|
58.4
|
%
|
|
56.1
|
%
|
|
2.3 ppts
|
|
|
|
|
|
|
|
Monthly Residential
Revenue per Residential Customer (e)
|
|
$
|
111.85
|
|
|
$
|
113.79
|
|
|
(1.7)
|
%
|
Monthly SMB Revenue
per SMB Customer (f)
|
|
$
|
163.02
|
|
|
$
|
169.06
|
|
|
(3.6)
|
%
|
|
|
|
|
|
|
|
Residential
Customer Relationships Penetration
|
|
|
|
|
|
|
Single Play
Penetration (g)
|
|
44.5
|
%
|
|
43.0
|
%
|
|
1.5 ppts
|
Double Play
Penetration (g)
|
|
32.7
|
%
|
|
30.7
|
%
|
|
2.0 ppts
|
Triple Play
Penetration (g)
|
|
22.9
|
%
|
|
26.2
|
%
|
|
(3.3) ppts
|
|
|
|
|
|
|
|
% Residential
Non-Video Customer Relationships
|
|
46.2
|
%
|
|
42.7
|
%
|
|
3.5 ppts
|
|
|
|
|
|
|
|
Internet
|
|
|
|
|
|
|
Residential
|
|
27,023
|
|
|
24,908
|
|
|
8.5
|
%
|
SMB
|
|
1,856
|
|
|
1,756
|
|
|
5.7
|
%
|
Total Internet
Customers
|
|
28,879
|
|
|
26,664
|
|
|
8.3
|
%
|
|
|
|
|
|
|
|
Residential
|
|
216
|
|
|
313
|
|
|
(30.9)
|
%
|
SMB
|
|
30
|
|
|
26
|
|
|
13.8
|
%
|
Total Internet
Quarterly Net Additions
|
|
246
|
|
|
339
|
|
|
(27.4)
|
%
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
Residential
|
|
15,639
|
|
|
15,620
|
|
|
0.1
|
%
|
SMB
|
|
561
|
|
|
524
|
|
|
7.0
|
%
|
Total Video
Customers
|
|
16,200
|
|
|
16,144
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
Residential
|
|
(66)
|
|
|
(105)
|
|
|
37.4
|
%
|
SMB
|
|
31
|
|
|
4
|
|
|
678.5
|
%
|
Total Video Quarterly
Net Additions
|
|
(35)
|
|
|
(101)
|
|
|
65.3
|
%
|
|
|
|
|
|
|
|
Voice
|
|
|
|
|
|
|
Residential
|
|
9,215
|
|
|
9,443
|
|
|
(2.4)
|
%
|
SMB
|
|
1,224
|
|
|
1,144
|
|
|
7.0
|
%
|
Total Voice
Customers
|
|
10,439
|
|
|
10,587
|
|
|
(1.4)
|
%
|
|
|
|
|
|
|
|
Residential
|
|
(120)
|
|
|
(152)
|
|
|
21.4
|
%
|
SMB
|
|
17
|
|
|
24
|
|
|
(30.1)
|
%
|
Total Voice Quarterly
Net Additions
|
|
(103)
|
|
|
(128)
|
|
|
19.7
|
%
|
|
|
|
|
|
|
|
Mobile
Lines
|
|
|
|
|
|
|
Residential
|
|
2,320
|
|
|
1,078
|
|
|
115.3
|
%
|
SMB
|
|
55
|
|
|
4
|
|
|
NM
|
Total Mobile
Lines
|
|
2,375
|
|
|
1,082
|
|
|
119.6
|
%
|
|
|
|
|
|
|
|
Residential
|
|
300
|
|
|
285
|
|
|
5.5
|
%
|
SMB
|
|
15
|
|
|
3
|
|
|
316.4
|
%
|
Total Mobile Lines
Quarterly Net Additions
|
|
315
|
|
|
288
|
|
|
9.4
|
%
|
|
|
|
|
|
|
|
Enterprise
(h)
|
|
|
|
|
|
|
Enterprise Primary
Service Unites ("PSUs")
|
|
274
|
|
|
267
|
|
|
2.6
|
%
|
Enterprise Quarterly
Net Additions
|
|
2
|
|
|
3
|
|
|
(36.9)
|
%
|
Footnotes - In thousands, except per
customer and penetration data. See footnotes to unaudited summary
of operating statistics on page 5 of the addendum of this news
release. The footnotes contain important disclosures regarding the
definitions used for these operating statistics. All
percentages are calculated using whole numbers. Minor differences
may exist due to rounding. NM - Not meaningful
|
In 2020, Charter added 1.8 million residential customer
relationships versus 1.0 million added in 2019. During the fourth
quarter of 2020, Charter's residential customer relationships grew
by 167,000, while fourth quarter 2019 residential customer
relationships increased by 240,000.
Charter added 2.1 million residential Internet customers in
2020, versus 1.3 million added in 2019. During the fourth quarter
of 2020, Charter added 216,000 residential Internet customers
versus fourth quarter 2019 net additions of 313,000, which is a
function of lower sales activity caused by adding 1.9 million
residential Internet customers in the prior three quarters as well
as lower market churn, resulting in fewer selling opportunities in
the fourth quarter. As of December 31, 2020, over 85% of
residential Internet customers subscribed to tiers that provided
100 Mbps or more of speed, and over 50% subscribed to tiers that
provided 200 Mbps or more of speed. During the fourth quarter,
Charter doubled its starting download speed to 200 Mbps in 17
markets. Currently, 200 Mbps is the slowest speed offered to new
Spectrum Internet® customers in nearly 75% of
Charter's footprint, with 100 Mbps the slowest speed offered in the
remainder of its footprint. Charter also offers Spectrum
Internet Gig (940 Mbps) across its entire footprint.
Additionally, Charter's Advanced In-Home WiFi service, which
provides customers the ability to optimize their home networks
while providing greater control of their connected devices, has now
been launched across more than 65% of Charter's footprint for new
Internet connects.
Charter added 19,000 residential video customers in 2020,
compared to a decline of 484,000 in 2019. Residential video
customers decreased by 66,000 in the fourth quarter of 2020, while
fourth quarter 2019 residential video customers decreased by
105,000.
In 2020, Charter's residential wireline voice customers declined
by 228,000 versus a decline of 692,000 in 2019. During the fourth
quarter of 2020, residential wireline voice customers declined by
120,000, while fourth quarter 2019 residential wireline voice
customers declined by 152,000.
Fourth quarter 2020 residential revenue per residential customer
(excluding mobile) totaled $111.85,
and declined by 1.7% compared to the prior year period, given a
higher percentage of non-video customers, a higher mix of lower
priced video packages within Charter's video customer base and
lower installation revenue, partly offset by promotional rate
step-ups and rate adjustments.
Charter added 93,000 SMB customer relationships in 2020,
compared to 125,000 added in 2019. SMB customer relationships grew
by 30,000 in the fourth quarter of 2020, while fourth quarter 2019
SMB customer relationships grew by 28,000. Enterprise PSUs grew by
7,000 in 2020 versus 19,000 added in 2019. During the fourth
quarter of 2020, enterprise PSUs grew by 2,000, compared to growth
of 3,000 in the fourth quarter of 2019.
In 2020, Charter added 1.3 million mobile lines versus 948,000
added in 2019. During the fourth quarter of 2020, Charter added
315,000 mobile lines, compared to 288,000 in the fourth quarter of
2019. Spectrum MobileTM is available
to all new and existing Spectrum Internet customers and runs
on America's most awarded LTE network combined with Spectrum
WiFi. Spectrum Mobile customers can choose one of two
simple ways to pay for data, "Unlimited" or "By the Gig." All plans
include 4G and 5G access, with no added taxes, fees or
contracts.
Fourth 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
December 31,
|
|
2020
|
|
2019
|
|
%
Change
|
REVENUES:
|
|
|
|
|
|
Internet
|
$
|
4,862
|
|
|
$
|
4,345
|
|
|
11.9
|
%
|
Video
|
4,418
|
|
|
4,473
|
|
|
(1.2)
|
%
|
Voice
|
449
|
|
|
450
|
|
|
(0.2)
|
%
|
Residential
revenue
|
9,729
|
|
|
9,268
|
|
|
5.0
|
%
|
Small and medium
business
|
997
|
|
|
986
|
|
|
1.1
|
%
|
Enterprise
|
623
|
|
|
617
|
|
|
0.9
|
%
|
Commercial
revenue
|
1,620
|
|
|
1,603
|
|
|
1.0
|
%
|
Advertising
sales
|
625
|
|
|
434
|
|
|
43.9
|
%
|
Mobile
|
428
|
|
|
236
|
|
|
80.9
|
%
|
Other
|
222
|
|
|
220
|
|
|
1.5
|
%
|
Total
Revenue
|
12,624
|
|
|
11,761
|
|
|
7.3
|
%
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
Total operating costs
and expenses
|
7,630
|
|
|
7,232
|
|
|
5.5
|
%
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
4,994
|
|
|
$
|
4,529
|
|
|
10.2
|
%
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
39.6
|
%
|
|
38.5
|
%
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
$
|
2,063
|
|
|
$
|
2,282
|
|
|
|
% Total
Revenue
|
16.3
|
%
|
|
19.4
|
%
|
|
|
|
|
|
|
|
|
Net income
attributable to Charter shareholders
|
$
|
1,246
|
|
|
$
|
714
|
|
|
|
Earnings per common
share attributable to Charter shareholders:
|
|
|
|
|
|
Basic
|
$
|
6.33
|
|
|
$
|
3.36
|
|
|
|
Diluted
|
$
|
6.05
|
|
|
$
|
3.28
|
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$
|
4,149
|
|
|
$
|
3,358
|
|
|
|
Free cash
flow
|
$
|
2,079
|
|
|
$
|
1,580
|
|
|
|
Revenues
Fourth quarter revenue increased by 7.3% year-over-year to
$12.6 billion, driven by growth in
Internet, mobile and advertising. Excluding advertising revenue,
which benefited from political spend in the fourth quarter of 2020,
revenue grew by 5.9% year-over-year.
Internet revenue grew by 11.9% year-over-year to $4.9 billion, driven by growth in Internet
customers during the last year, promotional rate step-ups and rate
adjustments.
Video revenue totaled $4.4 billion
in the fourth quarter, a decrease of 1.2% compared to the prior
year period, driven by a higher mix of lower priced video packages
within Charter's video customer base and lower installation
revenue, partly offset by promotional rate step-ups and rate
adjustments.
Voice revenue totaled $449 million
in the fourth quarter, a decrease of 0.2% compared to the fourth
quarter of 2019, driven by a decline in wireline voice customers
over the last twelve months.
Residential revenue totaled $9.7
billion in the fourth quarter, an increase of 5.0%
year-over-year.
Commercial revenue increased by 1.0% year-over-year to
$1.6 billion, driven by SMB and
enterprise revenue growth of 1.1% and 0.9% year-over-year,
respectively. SMB revenue growth was partly reduced by COVID-19
related seasonal plans. Enterprise revenue growth was impacted by
lower cell tower backhaul and other wholesale revenue. Enterprise
retail revenue excluding wholesale revenue increased by 5.4%
year-over-year, reflecting PSU growth.
Fourth quarter advertising sales revenue of $625 million increased by 43.9% compared to the
year-ago quarter, driven by higher political revenue and advanced
advertising, partly offset by lower local sales. Excluding
political revenue in both periods, advertising sales revenue
declined by 4.6% year-over-year driven by COVID-19 effects.
Fourth quarter mobile revenue totaled $428 million, an increase of 80.9%
year-over-year.
Other revenue totaled $222 million
in the fourth quarter, an increase of 1.5% year-over-year.
Operating Costs and Expenses
Fourth quarter total operating costs and expenses increased by
$398 million, or 5.5%
year-over-year.
Fourth quarter programming costs increased by $101 million, or 3.6% as compared to the fourth
quarter of 2019, reflecting contractual programming increases and
renewals, partly offset by a higher mix of lower cost video
packages within Charter's video customer base.
Regulatory, connectivity and produced content expenses decreased
by $64 million, or 10.7%
year-over-year, primarily driven by the deferral of sports rights
costs to 2021 due to a delayed start of the NBA season.
Costs to service customers increased by $80 million, or 4.4% year-over-year, despite
year-over-year residential and SMB customer growth of 6.5%. The
year-over-year increase in costs to service customers was primarily
driven by previously announced accelerated wage benefits for hourly
field operations and call center employees and higher COVID-19
related benefits, partly offset by lower bad debt and productivity
improvements.
Marketing expenses increased by $10
million, or 1.4% year-over-year.
Other expenses increased by $121
million, or 13.3% as compared to the fourth quarter of 2019
primarily driven by a one-time corporate cost and higher
advertising sales expense.
Fourth quarter mobile costs totaled $522
million, an increase of 40.5% year-over-year, and were
comprised of device costs, customer acquisition costs, and service
and operating costs.
Adjusted EBITDA
Fourth quarter Adjusted EBITDA of $5.0
billion grew by 10.2% year-over-year, reflecting growth
in revenue and operating expenses of 7.3% and 5.5%,
respectively.
Net Income Attributable to Charter Shareholders
Net income attributable to Charter shareholders totaled
$1.2 billion in the fourth quarter of
2020, compared to $714
million in the fourth quarter of 2019. The year-over-year
increase in net income attributable to Charter shareholders was
primarily driven by higher Adjusted EBITDA, a pension remeasurement
gain in the current year period versus a loss in the prior year
period and a non-cash gain on financial instruments, partly offset
by higher tax expense.
Net income per basic common share attributable to Charter
shareholders totaled $6.33 in the
fourth quarter of 2020 compared to $3.36 during the same period last year. The
increase was primarily the result of the factors described above in
addition to a 7.4% decrease in weighted average common shares
outstanding versus the prior year period.
Capital Expenditures
Property, plant and equipment expenditures totaled $2.1 billion in the fourth quarter of 2020,
compared to $2.3 billion during the
fourth quarter of 2019, primarily driven by declines in scalable
infrastructure and support spending. The year-over-year decrease in
scalable infrastructure spending was primarily due to timing of
core network enhancements, partly offset by higher node splits
given growing customer relationships and traffic. The decrease in
support capital was driven by lower spend on back office systems,
partly offset by facility improvements. Fourth quarter capital
expenditures included $157 million of
mobile costs, most of which are included in support capital.
Cash Flow and Free Cash Flow
During the fourth quarter of 2020, net cash flows from operating
activities totaled $4.1 billion,
compared to $3.4 billion in the prior
year quarter. The year-over-year increase in net cash flows from
operating activities was primarily due to higher Adjusted EBITDA
and a favorable change in trade working capital.
Free cash flow in the fourth quarter of 2020 totaled
$2.1 billion, compared to
$1.6 billion during the same period
last year. The year-over-year increase in free cash flow was driven
by an increase in net cash flows from operating activities.
Liquidity & Financing
As of December 31, 2020, total principal amount of debt was
$82.1 billion and Charter's credit
facilities provided approximately $4.7
billion of additional liquidity in excess of Charter's
$1.0 billion cash position.
In October 2020, CCO Holdings, LLC
("CCO Holdings") and CCO Holdings Capital Corp. jointly issued an
additional $1.5 billion of its
4.500% senior unsecured notes due 2032 at a price of 103.750%. The
net proceeds were used to pay related fees and expenses and for
general corporate purposes, including repaying certain
indebtedness, including repayment of $750
million of CCO Holdings' 5.375% senior notes due
May 1, 2025, as well as funding
potential buybacks of Charter Class A common stock and Charter
Holdings common units.
In December 2020, Charter
Communications Operating, LLC and Charter Communications Operating
Capital Corp. jointly issued $1.0
billion aggregate principal amount of 2.300% senior secured
notes due 2032 at a price of 99.786%, an additional $650 million aggregate principal amount of 3.700%
senior secured notes due 2051 at a price of 100.791% and
$1.35 billion aggregate principal
amount of 3.850% senior secured notes due 2061 at a price of
99.882%. The net proceeds were used to pay related fees and
expenses and for general corporate purposes, including funding
buybacks of Charter Class A common stock and Charter Holdings
common units as well as repaying certain indebtedness, including
$700 million of Time Warner Cable,
LLC 4.125% notes due February
2021.
Share Repurchases
During the three months ended December 31, 2020, Charter
purchased approximately 7.4 million shares of Charter Class A
common stock and Charter Holdings common units for approximately
$4.8 billion.
Full Year Financial Results
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS AND OPERATING DATA
|
(dollars in
millions, except per share
data)
|
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
%
Change
|
REVENUES:
|
|
|
|
|
|
Internet
|
$
|
18,521
|
|
|
$
|
16,667
|
|
|
11.1
|
%
|
Video
|
17,432
|
|
|
17,607
|
|
|
(1.0)
|
%
|
Voice
|
1,806
|
|
|
1,920
|
|
|
(5.9)
|
%
|
Residential
revenue
|
37,759
|
|
|
36,194
|
|
|
4.3
|
%
|
Small and medium
business
|
3,964
|
|
|
3,868
|
|
|
2.5
|
%
|
Enterprise
|
2,468
|
|
|
2,556
|
|
|
(3.5)
|
%
|
Commercial
revenue
|
6,432
|
|
|
6,424
|
|
|
0.1
|
%
|
Advertising
sales
|
1,699
|
|
|
1,568
|
|
|
8.3
|
%
|
Mobile
|
1,364
|
|
|
726
|
|
|
87.9
|
%
|
Other
|
843
|
|
|
852
|
|
|
(0.9)
|
%
|
Total
Revenue
|
48,097
|
|
|
45,764
|
|
|
5.1
|
%
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
Total operating costs
and expenses
|
29,579
|
|
|
28,909
|
|
|
2.3
|
%
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
18,518
|
|
|
$
|
16,855
|
|
|
9.9
|
%
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
38.5
|
%
|
|
36.8
|
%
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
$
|
7,415
|
|
|
$
|
7,195
|
|
|
|
% Total
Revenue
|
15.4
|
%
|
|
15.7
|
%
|
|
|
|
|
|
|
|
|
Net income
attributable to Charter shareholders
|
$
|
3,222
|
|
|
$
|
1,668
|
|
|
|
Earnings per common
share attributable to Charter shareholders:
|
|
|
|
|
|
Basic
|
$
|
15.85
|
|
|
$
|
7.60
|
|
|
|
Diluted
|
$
|
15.40
|
|
|
$
|
7.45
|
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$
|
14,562
|
|
|
$
|
11,748
|
|
|
|
Free cash
flow
|
$
|
7,070
|
|
|
$
|
4,608
|
|
|
|
Revenues
For the year ended December 31, 2020, revenues increased to
$48.1 billion, 5.1% higher than in
2019, driven by growth in Internet, mobile and advertising.
Excluding advertising revenue, which benefited from political spend
in 2020, revenue grew by 5.0% year-over-year.
Operating Costs and Expenses
Operating costs and expenses totaled $29.6 billion in 2020, an increase of
$670 million, or 2.3% compared to the
prior year ended December 31, 2019, primarily driven by
increases in mobile, costs to service customers and programming
expenses, partly offset by a decline in regulatory, connectivity
and produced content expenses as a result of COVID-19.
Adjusted EBITDA
Adjusted EBITDA totaled $18.5
billion for the year ended December 31, 2020, an
increase of 9.9% compared to 2019, reflecting growth in
revenue and operating expenses of 5.1% and 2.3%,
respectively.
Net Income Attributable to Charter Shareholders
Net income attributable to Charter shareholders totaled
$3.2 billion for the year ended
December 31, 2020, compared to $1.7 billion in 2019. The year-over-year
increase in net income attributable to Charter shareholders was
primarily driven by higher Adjusted EBITDA, partly offset by higher
tax expense.
Net income per basic common share attributable to Charter
shareholders totaled $15.85 for the
year ended December 31, 2020, compared to $7.60 during the same period last year. The
increase was primarily the result of the factors described above in
addition to a 7.4% decrease in weighted average common shares
outstanding versus the prior year period.
Capital Expenditures
Capital expenditures totaled $7.4
billion for the year ended December 31, 2020, compared
to $7.2 billion in 2019. The increase
was primarily driven by increases in line extensions, Internet CPE,
support capital and scalable infrastructure. For the full year
2020, mobile capital expenditures totaled $508 million versus $432
million for the full year 2019.
Charter currently expects 2021 cable capital expenditures to be
relatively consistent or lower as a percentage of cable revenue
versus 2020.
Cash Flow and Free Cash Flow
For the year ended December 31, 2020, net cash flows from
operating activities totaled $14.6
billion, compared to $11.7
billion in 2019. The year-over-year increase in net cash
flows from operating activities was primarily due to higher
Adjusted EBITDA and a favorable change in working capital in 2020
relative to the change in working capital in 2019. The increase in
cash flows resulting from changes in working capital was favorably
impacted by one-time unfavorable impacts in 2019 from bill cycle
standardization efforts as well as one-time net favorable impacts
in 2020 related to COVID-19, including deferral of payroll tax
payments.
Free cash flow for the year ended December 31, 2020 was
$7.1 billion, compared to
$4.6 billion during the same period
last year. The year-over-year increase in free cash flow was driven
by an increase in net cash flows from operating activities, partly
offset by higher capital expenditures.
Share Repurchases
For the year ended December 31, 2020, Charter purchased
approximately 21.1 million shares of Charter Class A common stock
and Charter Holdings common units for approximately $12.1 billion.
Conference Call
Charter will host a conference call on Friday, January 29,
2021 at 8:30 a.m. Eastern Time (ET)
related to the contents of this release.
The conference call will be webcast live via the Company's
investor relations website at ir.charter.com. The call will be
archived under the "Financial Information" section two hours after
completion of the call. Participants should go to the webcast link
no later than 10 minutes prior to the start time to register.
Those participating via telephone should dial 866-919-0894 no
later than 10 minutes prior to the call. International participants
should dial 706-679-9379. The conference ID code for the call is
1862755.
A replay of the call will be available at 855-859-2056 or
404-537-3406 beginning two hours after the completion of the call
through the end of business on February 12,
2021. The conference ID code for the replay is 1862755.
Additional Information Available on Website
The information in this press release should be read in
conjunction with the financial statements and footnotes contained
in the Company's Annual Report on Form 10-K for the year ended
December 31, 2020, which will be posted on the "Results &
SEC Filings" section of our investor relations website at
ir.charter.com, when it is filed with the Securities and Exchange
Commission (the "SEC"). A slide presentation to accompany the
conference call and a trending schedule containing historical
customer and financial data will also be available in the "Results
& SEC Filings" section.
Use of Adjusted EBITDA and Free Cash Flow
Information
The company uses certain measures that are not defined by U.S.
generally accepted accounting principles ("GAAP") to evaluate
various aspects of its business. Adjusted EBITDA and free cash flow
are non-GAAP financial measures and should be considered in
addition to, not as a substitute for, net income attributable to
Charter shareholders and net cash flows from operating activities
reported in accordance with GAAP. These terms, as defined by
Charter, may not be comparable to similarly titled measures used by
other companies. Adjusted EBITDA and free cash flow are reconciled
to net income attributable to Charter shareholders and net cash
flows from operating activities, respectively, in the Addendum to
this release.
Adjusted EBITDA is defined as net income attributable to Charter
shareholders plus net income attributable to noncontrolling
interest, net interest expense, income taxes, depreciation and
amortization, stock compensation expense, loss on extinguishment of
debt, (gain) loss on financial instruments, net, other pension
(benefits) costs, net, other (income) expense, net and other
operating (income) expenses, net, such as special charges and
(gain) loss on sale or retirement of assets. As such, it eliminates
the significant non-cash depreciation and amortization expense that
results from the capital-intensive nature of the Company's
businesses as well as other non-cash or special items, and is
unaffected by the Company's capital structure or investment
activities. However, this measure is limited in that it does not
reflect the periodic costs of certain capitalized tangible and
intangible assets used in generating revenues and the cash cost of
financing. These costs are evaluated through other financial
measures.
Free cash flow is defined as net cash flows from operating
activities, less capital expenditures and changes in accrued
expenses related to capital expenditures.
Management and Charter's board of directors use Adjusted EBITDA
and free cash flow to assess Charter's performance and its ability
to service its debt, fund operations and make additional
investments with internally generated funds. In addition, Adjusted
EBITDA generally correlates to the leverage ratio calculation under
the Company's credit facilities or outstanding notes to determine
compliance with the covenants contained in the facilities and notes
(all such documents have been previously filed with the the SEC).
For the purpose of calculating compliance with leverage covenants,
the Company uses Adjusted EBITDA, as presented, excluding certain
expenses paid by its operating subsidiaries to other Charter
entities. The Company's debt covenants refer to these expenses as
management fees, which were $384
million and $301 million for
the three months ended December 31, 2020 and 2019,
respectively, and $1.3 billion and
$1.2 billion for the years ended
December 31, 2020 and 2019, respectively.
About Charter
Charter Communications, Inc. (NASDAQ: CHTR) is a leading
broadband connectivity company and cable operator serving more than
31 million customers in 41 states through its Spectrum brand. Over
an advanced communications network, the company offers a full range
of state-of-the-art residential and business services including
Spectrum Internet®, TV, Mobile and Voice.
For small and medium-sized companies, Spectrum
Business® delivers the same suite of broadband products
and services coupled with special features and applications to
enhance productivity, while for larger businesses and government
entities, Spectrum Enterprise provides highly customized,
fiber-based solutions. Spectrum Reach® delivers tailored
advertising and production for the modern media landscape. The
company also distributes award-winning news coverage, sports and
high-quality original programming to its customers through Spectrum
Networks and Spectrum Originals. More information about Charter can
be found at corporate.charter.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This communication includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended, regarding, among other things, our plans,
strategies and prospects, both business and financial.
Although we believe that our plans, intentions and expectations as
reflected in or suggested by these forward-looking statements are
reasonable, we cannot assure you that we will achieve or realize
these plans, intentions or expectations. Forward-looking
statements are inherently subject to risks, uncertainties and
assumptions including, without limitation, the factors described
under "Risk Factors" from time to time in our filings with the
SEC. Many of the forward-looking statements contained in this
communication may be identified by the use of forward-looking words
such as "believe," "expect," "anticipate," "should," "planned,"
"will," "may," "intend," "estimated," "aim," "on track," "target,"
"opportunity," "tentative," "positioning," "designed," "create,"
"predict," "project," "initiatives," "seek," "would," "could,"
"continue," "ongoing," "upside," "increases," "focused on" and
"potential," among others. Important factors that could cause
actual results to differ materially from the forward-looking
statements we make in this communication are set forth in our
annual report on Form 10-K, and in other reports or documents that
we file from time to time with the SEC, and include, but are not
limited to:
- our ability to sustain and grow revenues and cash flow from
operations by offering Internet, video, voice, mobile, advertising
and other services to residential and commercial customers, to
adequately meet the customer experience demands in our service
areas and to maintain and grow our customer base, particularly in
the face of increasingly aggressive competition, the need for
innovation and the related capital expenditures;
- the impact of competition from other market participants,
including but not limited to incumbent telephone companies, direct
broadcast satellite ("DBS") operators, wireless broadband and
telephone providers, digital subscriber line ("DSL") providers,
fiber to the home providers and providers of video content over
broadband Internet connections;
- general business conditions, unemployment levels and the level
of activity in the housing sector and economic uncertainty or
downturn, including the impacts of the Novel Coronavirus
("COVID-19") pandemic to our customers, our vendors and local,
state and federal governmental responses to the pandemic;
- our ability to obtain programming at reasonable prices or to
raise prices to offset, in whole or in part, the effects of higher
programming costs (including retransmission consents and
distribution requirements);
- our ability to develop and deploy new products and technologies
including mobile products and any other consumer services and
service platforms;
- any events that disrupt our networks, information systems or
properties and impair our operating activities or our
reputation;
- the effects of governmental regulation on our business
including costs, disruptions and possible limitations on operating
flexibility related to, and our ability to comply with, regulatory
conditions applicable to us;
- the ability to hire and retain key personnel;
- the availability and access, in general, of funds to meet our
debt obligations prior to or when they become due and to fund our
operations and necessary capital expenditures, either through (i)
cash on hand, (ii) free cash flow, or (iii) access to the capital
or credit markets; and
- our ability to comply with all covenants in our indentures and
credit facilities, any violation of which, if not cured in a timely
manner, could trigger a default of our other obligations under
cross-default provisions.
All forward-looking statements attributable to us or any person
acting on our behalf are expressly qualified in their entirety by
this cautionary statement. We are under no duty or obligation
to update any of the forward-looking statements after the date of
this communication.
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS AND OPERATING DATA
|
(dollars in
millions, except per share data)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
%
Change
|
|
2020
|
|
2019
|
|
%
Change
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
Internet
|
$
|
4,862
|
|
|
$
|
4,345
|
|
|
11.9
|
%
|
|
$
|
18,521
|
|
|
$
|
16,667
|
|
|
11.1
|
%
|
Video
|
4,418
|
|
|
4,473
|
|
|
(1.2)
|
%
|
|
17,432
|
|
|
17,607
|
|
|
(1.0)
|
%
|
Voice
|
449
|
|
|
450
|
|
|
(0.2)
|
%
|
|
1,806
|
|
|
1,920
|
|
|
(5.9)
|
%
|
Residential
revenue
|
9,729
|
|
|
9,268
|
|
|
5.0
|
%
|
|
37,759
|
|
|
36,194
|
|
|
4.3
|
%
|
Small and medium
business
|
997
|
|
|
986
|
|
|
1.1
|
%
|
|
3,964
|
|
|
3,868
|
|
|
2.5
|
%
|
Enterprise
|
623
|
|
|
617
|
|
|
0.9
|
%
|
|
2,468
|
|
|
2,556
|
|
|
(3.5)
|
%
|
Commercial
revenue
|
1,620
|
|
|
1,603
|
|
|
1.0
|
%
|
|
6,432
|
|
|
6,424
|
|
|
0.1
|
%
|
Advertising
sales
|
625
|
|
|
434
|
|
|
43.9
|
%
|
|
1,699
|
|
|
1,568
|
|
|
8.3
|
%
|
Mobile
|
428
|
|
|
236
|
|
|
80.9
|
%
|
|
1,364
|
|
|
726
|
|
|
87.9
|
%
|
Other
|
222
|
|
|
220
|
|
|
1.5
|
%
|
|
843
|
|
|
852
|
|
|
(0.9)
|
%
|
Total
Revenue
|
12,624
|
|
|
11,761
|
|
|
7.3
|
%
|
|
48,097
|
|
|
45,764
|
|
|
5.1
|
%
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Programming
|
2,909
|
|
|
2,808
|
|
|
3.6
|
%
|
|
11,401
|
|
|
11,290
|
|
|
1.0
|
%
|
Regulatory,
connectivity and produced content
|
532
|
|
|
596
|
|
|
(10.7)
|
%
|
|
2,183
|
|
|
2,366
|
|
|
(7.7)
|
%
|
Costs to service
customers
|
1,874
|
|
|
1,794
|
|
|
4.4
|
%
|
|
7,472
|
|
|
7,277
|
|
|
2.7
|
%
|
Marketing
|
758
|
|
|
748
|
|
|
1.4
|
%
|
|
3,031
|
|
|
3,044
|
|
|
(0.4)
|
%
|
Mobile
|
522
|
|
|
372
|
|
|
40.5
|
%
|
|
1,765
|
|
|
1,246
|
|
|
41.7
|
%
|
Other
expense
|
1,035
|
|
|
914
|
|
|
13.3
|
%
|
|
3,727
|
|
|
3,686
|
|
|
1.1
|
%
|
Total operating
costs and expenses (exclusive
of items shown separately below)
|
7,630
|
|
|
7,232
|
|
|
5.5
|
%
|
|
29,579
|
|
|
28,909
|
|
|
2.3
|
%
|
Adjusted
EBITDA
|
4,994
|
|
|
4,529
|
|
|
10.2
|
%
|
|
18,518
|
|
|
16,855
|
|
|
9.9
|
%
|
Adjusted EBITDA
margin
|
39.6
|
%
|
|
38.5
|
%
|
|
|
|
38.5
|
%
|
|
36.8
|
%
|
|
|
Depreciation and
amortization
|
2,409
|
|
|
2,461
|
|
|
|
|
9,704
|
|
|
9,926
|
|
|
|
Stock compensation
expense
|
88
|
|
|
77
|
|
|
|
|
351
|
|
|
315
|
|
|
|
Other operating
expenses, net
|
35
|
|
|
32
|
|
|
|
|
58
|
|
|
103
|
|
|
|
Income from
operations
|
2,462
|
|
|
1,959
|
|
|
|
|
8,405
|
|
|
6,511
|
|
|
|
OTHER INCOME
(EXPENSES):
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(965)
|
|
|
(964)
|
|
|
|
|
(3,848)
|
|
|
(3,797)
|
|
|
|
Loss on extinguishment
of debt
|
(22)
|
|
|
(25)
|
|
|
|
|
(143)
|
|
|
(25)
|
|
|
|
Gain (loss) on
financial instruments, net
|
170
|
|
|
62
|
|
|
|
|
(15)
|
|
|
(54)
|
|
|
|
Other pension benefits
(costs), net
|
28
|
|
|
(96)
|
|
|
|
|
(66)
|
|
|
(69)
|
|
|
|
Other expense,
net
|
(18)
|
|
|
(4)
|
|
|
|
|
(31)
|
|
|
(135)
|
|
|
|
|
(807)
|
|
|
(1,027)
|
|
|
|
|
(4,103)
|
|
|
(4,080)
|
|
|
|
Income before income
taxes
|
1,655
|
|
|
932
|
|
|
|
|
4,302
|
|
|
2,431
|
|
|
|
Income tax
expense
|
(254)
|
|
|
(110)
|
|
|
|
|
(626)
|
|
|
(439)
|
|
|
|
Consolidated net
income
|
1,401
|
|
|
822
|
|
|
|
|
3,676
|
|
|
1,992
|
|
|
|
Less: Net income
attributable to noncontrolling
interests
|
(155)
|
|
|
(108)
|
|
|
|
|
(454)
|
|
|
(324)
|
|
|
|
Net income
attributable to Charter shareholders
|
$
|
1,246
|
|
|
$
|
714
|
|
|
|
|
$
|
3,222
|
|
|
$
|
1,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE
ATTRIBUTABLE TO CHARTER
SHAREHOLDERS:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
6.33
|
|
|
$
|
3.36
|
|
|
|
|
$
|
15.85
|
|
|
$
|
7.60
|
|
|
|
Diluted
|
$
|
6.05
|
|
|
$
|
3.28
|
|
|
|
|
$
|
15.40
|
|
|
$
|
7.45
|
|
|
|
Weighted average
common shares outstanding,
basic
|
196,906,511
|
|
|
212,648,072
|
|
|
|
|
203,316,483
|
|
|
219,506,735
|
|
|
|
Weighted average
common shares outstanding,
diluted
|
212,077,917
|
|
|
217,778,099
|
|
|
|
|
209,273,247
|
|
|
223,786,380
|
|
|
|
|
Adjusted EBITDA is a
non-GAAP term. See page 6 of this addendum for the
reconciliation of Adjusted EBITDA to net income attributable to
Charter shareholders as defined by GAAP.
|
|
All percentages are
calculated using whole numbers. Minor differences may exist due to
rounding.
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(dollars in
millions)
|
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
ASSETS
|
(unaudited)
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
|
998
|
|
|
$
|
3,483
|
|
Accounts receivable,
net
|
2,201
|
|
|
2,227
|
|
Prepaid expenses and
other current assets
|
707
|
|
|
761
|
|
Total current
assets
|
3,906
|
|
|
6,471
|
|
|
|
|
|
RESTRICTED
CASH
|
3
|
|
|
66
|
|
|
|
|
|
INVESTMENT IN CABLE
PROPERTIES:
|
|
|
|
Property, plant and
equipment, net
|
34,357
|
|
|
34,591
|
|
Customer
relationships, net
|
5,615
|
|
|
7,453
|
|
Franchises
|
67,322
|
|
|
67,322
|
|
Goodwill
|
29,554
|
|
|
29,554
|
|
Total investment in
cable properties, net
|
136,848
|
|
|
138,920
|
|
|
|
|
|
OTHER NONCURRENT
ASSETS
|
3,449
|
|
|
2,731
|
|
|
|
|
|
Total
assets
|
$
|
144,206
|
|
|
$
|
148,188
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
8,867
|
|
|
$
|
8,885
|
|
Current portion of
long-term debt
|
1,008
|
|
|
3,500
|
|
Total current
liabilities
|
9,875
|
|
|
12,385
|
|
|
|
|
|
LONG-TERM
DEBT
|
81,744
|
|
|
75,578
|
|
DEFERRED INCOME
TAXES
|
18,108
|
|
|
17,711
|
|
OTHER LONG-TERM
LIABILITIES
|
4,198
|
|
|
3,703
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
Controlling
interest
|
23,805
|
|
|
31,445
|
|
Noncontrolling
interests
|
6,476
|
|
|
7,366
|
|
Total shareholders'
equity
|
30,281
|
|
|
38,811
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
144,206
|
|
|
$
|
148,188
|
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED STATEMENTS OF
CASH FLOWS
|
(dollars in
millions)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Consolidated net
income
|
$
|
1,401
|
|
|
$
|
822
|
|
|
$
|
3,676
|
|
|
$
|
1,992
|
|
Adjustments to
reconcile consolidated net income to net cash flows from
operating activities:
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
2,409
|
|
|
2,461
|
|
|
9,704
|
|
|
9,926
|
|
Stock
compensation expense
|
88
|
|
|
77
|
|
|
351
|
|
|
315
|
|
Noncash
interest income, net
|
(10)
|
|
|
(17)
|
|
|
(41)
|
|
|
(106)
|
|
Other pension
(benefits) costs, net
|
(28)
|
|
|
96
|
|
|
66
|
|
|
69
|
|
Loss on
extinguishment of debt
|
22
|
|
|
25
|
|
|
143
|
|
|
25
|
|
(Gain) loss on
financial instruments, net
|
(170)
|
|
|
(62)
|
|
|
15
|
|
|
54
|
|
Deferred income
taxes
|
213
|
|
|
87
|
|
|
465
|
|
|
320
|
|
Other,
net
|
11
|
|
|
10
|
|
|
(10)
|
|
|
158
|
|
Changes in operating
assets and liabilities, net of effects from acquisitions
and dispositions:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(133)
|
|
|
59
|
|
|
26
|
|
|
(505)
|
|
Prepaid expenses and
other assets
|
116
|
|
|
(172)
|
|
|
(124)
|
|
|
(397)
|
|
Accounts payable,
accrued liabilities and other
|
230
|
|
|
(28)
|
|
|
291
|
|
|
(103)
|
|
Net cash flows
from operating activities
|
4,149
|
|
|
3,358
|
|
|
14,562
|
|
|
11,748
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
(2,063)
|
|
|
(2,282)
|
|
|
(7,415)
|
|
|
(7,195)
|
|
Change in accrued
expenses related to capital expenditures
|
(7)
|
|
|
504
|
|
|
(77)
|
|
|
55
|
|
Purchases of wireless
spectrum licenses
|
(371)
|
|
|
—
|
|
|
(464)
|
|
|
—
|
|
Real estate
investments through variable interest entities
|
(61)
|
|
|
(23)
|
|
|
(183)
|
|
|
(148)
|
|
Other, net
|
(68)
|
|
|
(53)
|
|
|
(18)
|
|
|
(43)
|
|
Net cash flows
from investing activities
|
(2,570)
|
|
|
(1,854)
|
|
|
(8,157)
|
|
|
(7,331)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Borrowings of
long-term debt
|
5,402
|
|
|
6,528
|
|
|
15,754
|
|
|
19,685
|
|
Repayments of
long-term debt
|
(2,383)
|
|
|
(2,423)
|
|
|
(12,094)
|
|
|
(13,309)
|
|
Payments for debt
issuance costs
|
(34)
|
|
|
(55)
|
|
|
(125)
|
|
|
(103)
|
|
Issuance of
equity
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
Purchase of treasury
stock
|
(4,349)
|
|
|
(2,305)
|
|
|
(11,217)
|
|
|
(6,873)
|
|
Proceeds from exercise
of stock options
|
13
|
|
|
12
|
|
|
184
|
|
|
118
|
|
Purchase of
noncontrolling interest
|
(578)
|
|
|
(292)
|
|
|
(1,462)
|
|
|
(885)
|
|
Distributions to
noncontrolling interest
|
(40)
|
|
|
(38)
|
|
|
(154)
|
|
|
(154)
|
|
Borrowings for real
estate investments through variable interest entities,
net
|
59
|
|
|
—
|
|
|
122
|
|
|
—
|
|
Other, net
|
46
|
|
|
21
|
|
|
16
|
|
|
(112)
|
|
Net cash flows
from financing activities
|
(1,864)
|
|
|
1,448
|
|
|
(8,953)
|
|
|
(1,633)
|
|
|
|
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN CASH, CASH EQUIVALENTS AND
RESTRICTED CASH
|
(285)
|
|
|
2,952
|
|
|
(2,548)
|
|
|
2,784
|
|
CASH, CASH
EQUIVALENTS AND RESTRICTED CASH, beginning of period
|
1,286
|
|
|
597
|
|
|
3,549
|
|
|
765
|
|
CASH, CASH
EQUIVALENTS AND RESTRICTED CASH, end of period
|
$
|
1,001
|
|
|
$
|
3,549
|
|
|
$
|
1,001
|
|
|
$
|
3,549
|
|
|
|
|
|
|
|
|
|
CASH PAID FOR
INTEREST
|
$
|
843
|
|
|
$
|
898
|
|
|
$
|
3,866
|
|
|
$
|
3,963
|
|
CASH PAID FOR
TAXES
|
$
|
39
|
|
|
$
|
16
|
|
|
$
|
123
|
|
|
$
|
71
|
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED SUMMARY
OF OPERATING STATISTICS
|
(in thousands,
except per customer and penetration data)
|
|
|
|
Approximate as
of
|
|
|
December 31,
2020 (a)
|
|
September 30,
2020 (a)
|
|
December 31,
2019 (a)
|
Footprint
(b)
|
|
|
|
|
|
|
Estimated
Passings
|
|
53,300
|
|
|
53,022
|
|
|
52,154
|
|
|
|
|
|
|
|
|
Customer
Relationships (c)
|
|
|
|
|
|
|
Residential
|
|
29,079
|
|
|
28,912
|
|
|
27,277
|
|
SMB
|
|
2,051
|
|
|
2,021
|
|
|
1,958
|
|
Total Customer
Relationships
|
|
31,130
|
|
|
30,933
|
|
|
29,235
|
|
|
|
|
|
|
|
|
Residential
|
|
167
|
|
|
416
|
|
|
240
|
|
SMB
|
|
30
|
|
|
41
|
|
|
28
|
|
Total Customer
Relationships Quarterly Net Additions
|
|
197
|
|
|
457
|
|
|
268
|
|
|
|
|
|
|
|
|
Total Customer
Relationship Penetration of Estimated Passings (d)
|
|
58.4
|
%
|
|
58.3
|
%
|
|
56.1
|
%
|
|
|
|
|
|
|
|
Monthly Residential
Revenue per Residential Customer (e)
|
|
$
|
111.85
|
|
|
$
|
109.03
|
|
|
$
|
113.79
|
|
Monthly SMB Revenue
per SMB Customer (f)
|
|
$
|
163.02
|
|
|
$
|
164.77
|
|
|
$
|
169.06
|
|
|
|
|
|
|
|
|
Residential
Customer Relationships Penetration
|
|
|
|
|
|
|
Single Play
Penetration (g)
|
|
44.5
|
%
|
|
44.2
|
%
|
|
43.0
|
%
|
Double Play
Penetration (g)
|
|
32.7
|
%
|
|
32.3
|
%
|
|
30.7
|
%
|
Triple Play
Penetration (g)
|
|
22.9
|
%
|
|
23.5
|
%
|
|
26.2
|
%
|
|
|
|
|
|
|
|
% Residential
Non-Video Customer Relationships
|
|
46.2
|
%
|
|
45.7
|
%
|
|
42.7
|
%
|
|
|
|
|
|
|
|
Internet
|
|
|
|
|
|
|
Residential
|
|
27,023
|
|
|
26,807
|
|
|
24,908
|
|
SMB
|
|
1,856
|
|
|
1,826
|
|
|
1,756
|
|
Total Internet
Customers
|
|
28,879
|
|
|
28,633
|
|
|
26,664
|
|
|
|
|
|
|
|
|
Residential
|
|
216
|
|
|
494
|
|
|
313
|
|
SMB
|
|
30
|
|
|
43
|
|
|
26
|
|
Total Internet
Quarterly Net Additions
|
|
246
|
|
|
537
|
|
|
339
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
Residential
|
|
15,639
|
|
|
15,705
|
|
|
15,620
|
|
SMB
|
|
561
|
|
|
530
|
|
|
524
|
|
Total Video
Customers
|
|
16,200
|
|
|
16,235
|
|
|
16,144
|
|
|
|
|
|
|
|
|
Residential
|
|
(66)
|
|
|
53
|
|
|
(105)
|
|
SMB
|
|
31
|
|
|
14
|
|
|
4
|
|
Total Video
Quarterly Net Additions
|
|
(35)
|
|
|
67
|
|
|
(101)
|
|
|
|
|
|
|
|
|
Voice
|
|
|
|
|
|
|
Residential
|
|
9,215
|
|
|
9,335
|
|
|
9,443
|
|
SMB
|
|
1,224
|
|
|
1,207
|
|
|
1,144
|
|
Total Voice
Customers
|
|
10,439
|
|
|
10,542
|
|
|
10,587
|
|
|
|
|
|
|
|
|
Residential
|
|
(120)
|
|
|
(63)
|
|
|
(152)
|
|
SMB
|
|
17
|
|
|
38
|
|
|
24
|
|
Total Voice
Quarterly Net Additions
|
|
(103)
|
|
|
(25)
|
|
|
(128)
|
|
|
|
|
|
|
|
|
Mobile
Lines
|
|
|
|
|
|
|
Residential
|
|
2,320
|
|
|
2,020
|
|
|
1,078
|
|
SMB
|
|
55
|
|
|
40
|
|
|
4
|
|
Total Mobile
Lines
|
|
2,375
|
|
|
2,060
|
|
|
1,082
|
|
|
|
|
|
|
|
|
Residential
|
|
300
|
|
|
348
|
|
|
285
|
|
SMB
|
|
15
|
|
|
15
|
|
|
3
|
|
Total Mobile
Lines Quarterly Net Additions
|
|
315
|
|
|
363
|
|
|
288
|
|
|
|
|
|
|
|
|
Enterprise
(h)
|
|
|
|
|
|
|
Enterprise Primary
Service Unites ("PSUs")
|
|
274
|
|
|
272
|
|
|
267
|
|
Enterprise Quarterly
Net Additions
|
|
2
|
|
|
2
|
|
|
3
|
|
(a)
|
We calculate the
aging of customer accounts based on the monthly billing cycle for
each account. On that basis, at December 31, 2020,
September 30, 2020 and December 31, 2019, customers
included approximately 168,400, 181,700 and 154,200 customers,
respectively, whose accounts were over 60 days past due,
approximately 17,800, 52,300 and 13,500 customers, respectively,
whose accounts were over 90 days past due and approximately 11,100,
26,000 and 10,000 customers, respectively, whose accounts were over
120 days past due.
|
|
|
(b)
|
Passings represent
our estimate of the number of units, such as single family homes,
apartment and condominium units and SMB and enterprise sites passed
by our cable distribution network in the areas where we offer the
service indicated. These estimates are based upon the
information available at this time and are updated for all periods
presented when new information becomes available.
|
|
|
(c)
|
Customer
relationships include the number of customers that receive one or
more levels of service, encompassing Internet, video and voice
services, without regard to which service(s) such customers
receive. Customers who reside in residential multiple
dwelling units ("MDUs") and that are billed under bulk contracts
are counted based on the number of billed units within each bulk
MDU. Total customer relationships exclude enterprise and
mobile-only customer relationships.
|
|
|
(d)
|
Penetration
represents residential and SMB customers as a percentage of
estimated passings. Penetration excludes mobile-only
customers.
|
|
|
(e)
|
Monthly residential
revenue per residential customer is calculated as total residential
quarterly revenue divided by three divided by average residential
customer relationships during the respective quarter and excludes
mobile revenue and customers.
|
|
|
(f)
|
Monthly SMB revenue
per SMB customer is calculated as total SMB quarterly revenue
divided by three divided by average SMB customer relationships
during the respective quarter and excludes mobile revenue and
customers.
|
|
|
(g)
|
Single play, double
play and triple play penetration represents the number of
residential single play, double play and triple play cable
customers, respectively, as a percentage of residential customer
relationships, excluding mobile.
|
|
|
(h)
|
Enterprise PSUs
represents the aggregate number of fiber service offerings counting
each separate service offering at each customer location as an
individual PSU.
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED
RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
|
(dollars in
millions)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
attributable to Charter shareholders
|
$
|
1,246
|
|
|
$
|
714
|
|
|
$
|
3,222
|
|
|
$
|
1,668
|
|
Plus: Net income
attributable to noncontrolling interest
|
155
|
|
|
108
|
|
|
454
|
|
|
324
|
|
Interest expense,
net
|
965
|
|
|
964
|
|
|
3,848
|
|
|
3,797
|
|
Income tax
expense
|
254
|
|
|
110
|
|
|
626
|
|
|
439
|
|
Depreciation and
amortization
|
2,409
|
|
|
2,461
|
|
|
9,704
|
|
|
9,926
|
|
Stock compensation
expense
|
88
|
|
|
77
|
|
|
351
|
|
|
315
|
|
Loss on extinguishment
of debt
|
22
|
|
|
25
|
|
|
143
|
|
|
25
|
|
(Gain) loss on
financial instruments, net
|
(170)
|
|
|
(62)
|
|
|
15
|
|
|
54
|
|
Other pension
(benefits) costs, net
|
(28)
|
|
|
96
|
|
|
66
|
|
|
69
|
|
Other, net
|
53
|
|
|
36
|
|
|
89
|
|
|
238
|
|
Adjusted EBITDA
(a)
|
$
|
4,994
|
|
|
$
|
4,529
|
|
|
$
|
18,518
|
|
|
$
|
16,855
|
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$
|
4,149
|
|
|
$
|
3,358
|
|
|
$
|
14,562
|
|
|
$
|
11,748
|
|
Less: Purchases
of property, plant and equipment
|
(2,063)
|
|
|
(2,282)
|
|
|
(7,415)
|
|
|
(7,195)
|
|
Change in accrued
expenses related to capital expenditures
|
(7)
|
|
|
504
|
|
|
(77)
|
|
|
55
|
|
Free cash
flow
|
$
|
2,079
|
|
|
$
|
1,580
|
|
|
$
|
7,070
|
|
|
$
|
4,608
|
|
|
(a)
See page 1 of this addendum for detail of the components included
within Adjusted EBITDA.
|
|
The above schedule is
presented in order to reconcile Adjusted EBITDA and free cash flow,
non-GAAP measures, to the most directly comparable GAAP measures in
accordance with Section 401(b) of the Sarbanes-Oxley
Act.
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED CAPITAL
EXPENDITURES
|
(dollars in
millions)
|
|
|
Three Months Ended
December
31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Customer premise
equipment (a)
|
$
|
501
|
|
|
$
|
543
|
|
|
$
|
2,002
|
|
|
$
|
2,070
|
|
Scalable
infrastructure (b)
|
499
|
|
|
599
|
|
|
1,478
|
|
|
1,439
|
|
Line extensions
(c)
|
437
|
|
|
390
|
|
|
1,641
|
|
|
1,444
|
|
Upgrade/rebuild
(d)
|
156
|
|
|
183
|
|
|
615
|
|
|
634
|
|
Support capital
(e)
|
470
|
|
|
567
|
|
|
1,679
|
|
|
1,608
|
|
Total capital
expenditures
|
$
|
2,063
|
|
|
$
|
2,282
|
|
|
$
|
7,415
|
|
|
$
|
7,195
|
|
|
|
|
|
|
|
|
|
Capital expenditures
included in total related to:
|
|
|
|
|
|
|
|
Commercial
services
|
$
|
383
|
|
|
$
|
358
|
|
|
$
|
1,325
|
|
|
$
|
1,314
|
|
Mobile
|
$
|
157
|
|
|
$
|
151
|
|
|
$
|
508
|
|
|
$
|
432
|
|
(a)
|
Customer premise
equipment includes costs incurred at the customer residence to
secure new customers and revenue generating units, including
customer installation costs and customer premise equipment (e.g.,
digital receivers and cable modems).
|
(b)
|
Scalable
infrastructure includes costs, not related to customer premise
equipment, to secure growth of new customers and revenue generating
units, or provide service enhancements (e.g., headend
equipment).
|
(c)
|
Line extensions
include network costs associated with entering new service areas
(e.g., fiber/coaxial cable, amplifiers, electronic equipment,
make-ready and design engineering).
|
(d)
|
Upgrade/rebuild
includes costs to modify or replace existing fiber/coaxial cable
networks, including betterments.
|
(e)
|
Support capital
includes costs associated with the replacement or enhancement of
non-network assets due to technological and physical obsolescence
(e.g., non-network equipment, land, buildings and
vehicles).
|
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SOURCE Charter Communications, Inc.