10-QPeriod: Q1 FY2013

CHARTER COMMUNICATIONS, INC. /MO/ Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 7, 2013For Securities:CHTR

Summary

Charter Communications, Inc. reported a net loss of $42 million, 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 million, 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 million 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.

Financial Highlights

44 data points
Beta

Revenue

$1.92B

Net Income

-$42.00M

-2.2% Net Margin

EPS (Diluted)

$-0.42

Total Assets

$15.64B

Cash & Equivalents

$65.00M

Free Cash Flow

$129.00M

Financial Statements
Beta
Revenue$1.92B
Operating Expenses$1.69B
Operating Income$222.00M
Interest Expense$210.00M
Net Income-$42.00M
EPS (Basic)$-0.42
Shares Outstanding (Basic)100.33M

Key Highlights

  • 1Revenue increased 5% to $1.92 billion, primarily driven by growth in Internet and commercial services, partially offset by a decline in video customers.
  • 2Net loss improved to $42 million ($0.42/share) from $94 million ($0.95/share) in the prior year's quarter.
  • 3Operating income slightly decreased to $223 million from $230 million, impacted by higher depreciation, amortization, and other operating expenses.
  • 4Cash flow from operating activities increased to $541 million, supporting capital expenditures of $412 million.
  • 5Long-term debt remained substantial at $12.8 billion, with significant refinancing activities occurring post-quarter.
  • 6Liberty Media acquired a 27% stake in Charter in May 2013, impacting board composition and potentially offering tax advantages.
  • 7The company reported a decrease in video customers but an increase in Internet and telephone customers.

Frequently Asked Questions

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.

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.

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.

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.