10-KPeriod: FY2015

CHARTER COMMUNICATIONS, INC. /MO/ Annual Report, Year Ended Dec 31, 2015

Filed February 10, 2016For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed its 2015 10-K report, highlighting a pivotal year marked by significant strategic transactions aimed at expanding its market presence. The company is a major provider of cable services, offering video, internet, and voice solutions to millions of residential and business customers across the United States. The report details the significant proposed acquisitions of Time Warner Cable (TWC) and Bright House Networks, which, if completed, would create a substantially larger entity with enhanced scale and capabilities. These transactions are subject to regulatory approval, with various conditions and commitments made to facilitate the process. Financially, Charter reported revenue growth driven by its Internet and triple-play bundles, though it also acknowledged a history of net losses primarily due to high operating expenses, interest expenses, and depreciation. The company's infrastructure is robust, with a significant portion of its network upgraded to support higher speeds and advanced services, positioning it to compete in the evolving telecommunications landscape.

Financial Statements
Beta
Revenue$9.75B
Operating Expenses$8.64B
Operating Income$1.11B
Net Income-$271.00M
EPS (Basic)$-2.68
EPS (Diluted)$-2.68
Shares Outstanding (Basic)101.15M
Shares Outstanding (Diluted)101.15M

Key Highlights

  • 1Charter Communications is actively pursuing two major acquisitions: Time Warner Cable (TWC) and Bright House Networks, aiming to significantly expand its scale and market reach.
  • 2The company generated approximately $9.8 billion in revenue for the year ended December 31, 2015, with 83% derived from residential video, Internet, and voice services.
  • 3Residential Internet and triple-play (video, Internet, voice) customer growth were key drivers of recent revenue increases.
  • 4Charter's network infrastructure is largely modernized, with 98% of its approximately 12.8 million estimated passings at 550 MHz or greater, and 99% of plant miles being two-way active and all-digital.
  • 5The company had approximately $35.9 billion in total debt as of December 31, 2015, with a significant portion ($21.8 billion) held in escrow pending the TWC transaction.
  • 6Despite revenue growth, Charter reported a net loss of $271 million for the year ended December 31, 2015, attributed to operating expenses, interest, and depreciation.
  • 7Significant regulatory approvals are pending for the TWC and Bright House transactions, with expected closing in the second quarter of 2016, subject to these approvals.

Frequently Asked Questions

Charter Communications is in the process of acquiring Time Warner Cable (TWC) and Bright House Networks. These significant transactions are expected to create a much larger cable operator, subject to regulatory approvals and other closing conditions.

Charter reported revenue of approximately $9.8 billion for the year ended December 31, 2015, an increase from the previous year, primarily driven by growth in residential Internet and triple-play customers, as well as commercial services. However, the company continued to experience a net loss, amounting to $271 million for the year, due to high operating expenses, interest costs, and depreciation.

The acquisitions of TWC and Bright House Networks are pending regulatory approvals from various government authorities. Charter is actively working with regulators to secure these approvals and expects the transactions to close in the second quarter of 2016, contingent upon receiving the necessary authorizations and meeting other closing conditions.

Charter Communications carried approximately $35.9 billion in total debt as of December 31, 2015. A significant portion of this debt, $21.8 billion, was held in escrow pending the completion of the TWC transaction. The company's substantial debt load is a key factor in its financial risk profile.