10-KPeriod: FY2011

CHARTER COMMUNICATIONS, INC. /MO/ Annual Report, Year Ended Dec 31, 2011

Filed February 27, 2012For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) is a major provider of cable services in the United States, offering video, high-speed internet, and telephone services to approximately 5.2 million residential and commercial customers as of December 31, 2011. The company generated $7.2 billion in revenue for the year, with residential video accounting for 50% and internet and telephone services driving recent growth. Charter emerged from Chapter 11 bankruptcy in November 2009 and continues to manage a significant debt load, with approximately $12.8 billion in total debt at year-end 2011. The company faces intense competition from Direct Broadcast Satellite (DBS) providers and telephone companies offering bundled services. Despite declining video subscribers, Charter is focused on growth in its internet, telephone, and commercial segments, leveraging its hybrid fiber coaxial network and DOCSIS 3.0 technology to offer higher speeds. Significant capital expenditures are ongoing to maintain and upgrade network infrastructure.

Financial Highlights

46 data points
Beta

Revenue

$7.20B

Net Income

-$369.00M

-5.1% Net Margin

EPS (Diluted)

$-3.39

Total Assets

$15.60B

Cash & Equivalents

$2.00M

Free Cash Flow

$426.00M

Financial Statements
Beta
Revenue$7.20B
Operating Expenses$6.16B
Operating Income$1.04B
Interest Expense$963.00M
Net Income-$369.00M
EPS (Basic)$-3.39
Shares Outstanding (Basic)108.95M

Key Highlights

  • 1Charter Communications reported $7.2 billion in revenue for 2011, with residential video representing 50% of total revenue.
  • 2The company served approximately 5.2 million residential and commercial customers across its video, internet, and telephone services as of December 31, 2011.
  • 3Charter had a total debt of approximately $12.8 billion as of December 31, 2011, following its emergence from Chapter 11 bankruptcy in November 2009.
  • 4While residential video customers declined, Charter experienced growth in its high-speed internet and telephone services, as well as its commercial business segment.
  • 5The company invested approximately $1.3 billion in capital expenditures in 2011 to upgrade its network infrastructure, including the deployment of DOCSIS 3.0 and SDV technologies.
  • 6Charter faces significant competition from Direct Broadcast Satellite (DBS) providers and telephone companies that are increasingly offering bundled services.
  • 7The company continues to focus on bundling services, with approximately 62% of its customers subscribing to a bundle of two or more services.

Frequently Asked Questions

Charter Communications is a leading broadband communications company that provides a variety of entertainment, information, and communications solutions. Its core services include cable television (video), high-speed internet, and telephone services offered to both residential and commercial customers.

As of December 31, 2011, Charter Communications had a substantial debt of approximately $12.8 billion. This reflects its significant leverage following its emergence from Chapter 11 bankruptcy proceedings in November 2009. The company's ability to service this debt is a key financial consideration.

While Charter experienced a decline in residential video customers in 2011, it saw growth in its high-speed internet and telephone services. The company's commercial business also showed significant revenue growth, indicating a strategic focus on expanding beyond traditional video services.

Charter faces significant competition primarily from Direct Broadcast Satellite (DBS) providers like DirecTV and DISH Network, as well as from telephone companies (Incumbents) such as AT&T and Verizon, which are increasingly offering bundled video, internet, and voice services.