01—Abstract
Summary
Summary of the 10-Q filed May 7, 2013. Cited figures are marked; the original filing is the authoritative source.
Charter Communications, Inc. reported a net loss of $42 milliona, or $0.42 per share, for the first quarter of 2013, an improvement from a net loss of $94 million, or $0.95 per share, in the prior year's quarter.
Revenue increased by 5% year-over-year to $1,917 millionb, driven by growth in Internet and commercial services, though partially offset by a decline in video customers. The company's operating income slightly decreased to $223 million from $230 million. Financially, the company maintained a substantial long-term debt level of $12.8 billion.
Cash flow from operations improved significantly to $541 millionc from $454 million in the prior year, supporting capital expenditures of $412 million. A notable event subsequent to the quarter was Liberty Media's acquisition of a 27% stake in Charter, which has implications for corporate governance and potential tax benefits related to loss carryforwards.
02—Key points
Key Highlights
- Revenue increased 5% to $1.92 billion, primarily driven by growth in Internet and commercial services, partially offset by a decline in video customers.
- Net loss improved to $42 million ($0.42/share) from $94 million ($0.95/share) in the prior year's quarter.
- Operating income slightly decreased to $223 million from $230 million, impacted by higher depreciation, amortization, and other operating expenses.
- Cash flow from operating activities increased to $541 million, supporting capital expenditures of $412 million.
- Long-term debt remained substantial at $12.8 billion, with significant refinancing activities occurring post-quarter.
- Liberty Media acquired a 27% stake in Charter in May 2013, impacting board composition and potentially offering tax advantages.
- The company reported a decrease in video customers but an increase in Internet and telephone customers.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2013filed May 7, 2013Financial Statements
Q1 FY2013 against Q1 FY2012
| Line item | Q1 FY2013Q1 FY2012 | Change |
|---|---|---|
| Revenue | $1.92B$1.83B | +4.9% |
| Operating Expenses | $1.69B$1.60B | +6.1% |
| Operating Income | $222.00M$230.00M | −3.5% |
| Interest Expense | $210.00M$237.00M | −11.4% |
| Net Income | -$42.00M-$94.00M | +55.3% |
| EPS (Basic) | $-0.42$-0.95 | +55.8% |
| Shares Outstanding (Basic) | 100.33M99.43M | +0.9% |
05—Questions
Frequently Asked Questions
What was Charter Communications' financial performance in the first quarter of 2013?
Charter Communications reported a net loss of $42 million ($0.42 per share) for the first quarter of 2013, an improvement from a net loss of $94 million ($0.95 per share) in the same period last year. Total revenue increased by 5% to $1.917 billion, driven by growth in its Internet and commercial businesses, although video revenues saw a slight decrease due to a decline in video customers.
What is the company's debt situation and how is it being managed?
Charter Communications carries a significant amount of long-term debt, totaling $12.8 billion as of March 31, 2013. The company has been active in managing its debt through refinancing activities. Subsequent to the quarter, Charter completed several transactions including issuing new debt, repaying existing debt, and amending its credit agreements to extend maturities and adjust pricing.
What are the key customer trends for Charter Communications?
The company experienced a decrease in residential video customers, down by 199,000 year-over-year. However, residential Internet customers grew by 251,000, and residential telephone customers increased by 151,000 during the same period. Commercial customer relationships also showed growth.
What was the impact of Liberty Media's investment?
In May 2013, Liberty Media acquired approximately a 27% stake in Charter Communications for $2.6 billion. This significant investment led to changes in Charter's board of directors and, according to the filing, may provide tax benefits related to the company's net operating loss carryforwards due to a 'second ownership change' for tax purposes.
06—Continue