01—Abstract
Summary
Summary of the 10-K filed February 27, 2012. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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.
02—Key points
Key Highlights
- Charter Communications reported $7.2 billion in revenue for 2011, with residential video representing 50% of total revenue.
- The company served approximately 5.2 million residential and commercial customers across its video, internet, and telephone services as of December 31, 2011.
- Charter had a total debt of approximately $12.8 billion as of December 31, 2011, following its emergence from Chapter 11 bankruptcy in November 2009.
- While residential video customers declined, Charter experienced growth in its high-speed internet and telephone services, as well as its commercial business segment.
- The 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.
- Charter faces significant competition from Direct Broadcast Satellite (DBS) providers and telephone companies that are increasingly offering bundled services.
- The company continues to focus on bundling services, with approximately 62% of its customers subscribing to a bundle of two or more services.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 27, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $7.20B$7.06B | +2.1% |
| Operating Expenses | $6.16B$6.04B | +2.1% |
| Operating Income | $1.04B$1.02B | +1.7% |
| Interest Expense | $963.00M$877.00M | +9.8% |
| Net Income | -$369.00M-$237.00M | −55.7% |
| EPS (Basic) | $-3.39$-2.09 | −62.2% |
| Shares Outstanding (Basic) | 108.95M113.14M | −3.7% |
05—Questions
Frequently Asked Questions
What is Charter Communications' primary business?
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.
What is the company's financial situation regarding debt?
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.
How is Charter performing in its different service segments?
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.
Who are Charter's main competitors?
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.
06—Continue