10-QPeriod: Q3 FY2015

CHARTER COMMUNICATIONS, INC. /MO/ Quarterly Report for Q3 Ended Sep 30, 2015

Filed October 29, 2015For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) reported its financial results for the third quarter ended September 30, 2015, showing a move from a net loss in the prior year's quarter to a net income of $54 million. This improvement was driven by a 7% increase in total revenue, reaching $2.45 billion, largely due to growth in residential internet and commercial services. The company is in the process of significant strategic transactions, including the proposed acquisition of Time Warner Cable (TWC) and the acquisition of Bright House Networks. These transactions, while driving substantial debt financing and associated interest expenses, are expected to reshape the company's market position. The company's liquidity remains a key focus, supported by operating cash flows and available credit facilities, though significant debt obligations persist.

Financial Highlights

49 data points
Beta

Revenue

$2.45B

Net Income

$54.00M

2.2% Net Margin

EPS (Diluted)

$0.53

Total Assets

$36.87B

Cash & Equivalents

$0.00

Free Cash Flow

$180.00M

Financial Statements
Beta
Revenue$2.45B
Operating Expenses$2.18B
Operating Income$273.00M
Net Income$54.00M
EPS (Basic)$0.54
EPS (Diluted)$0.53
Shares Outstanding (Basic)101.21M
Shares Outstanding (Diluted)102.48M

Key Highlights

  • 1Reported net income of $54 million for the three months ended September 30, 2015, a significant improvement from a net loss of $53 million in the same period of 2014.
  • 2Total revenues increased by 7% to $2.45 billion for the three months ended September 30, 2015, compared to $2.29 billion in the prior year.
  • 3Significant progress made on the proposed acquisition of Time Warner Cable (TWC) and Bright House Networks, with substantial debt financing secured and regulatory approvals underway.
  • 4Long-term debt significantly increased to $33.28 billion as of September 30, 2015, primarily due to financing for the pending acquisitions.
  • 5Operating cash flow remained strong at $1.75 billion for the nine months ended September 30, 2015, supporting the company's liquidity.
  • 6Adjusted EBITDA increased by 9% to $850 million for the three months ended September 30, 2015.
  • 7The company reported a net loss of $149 million for the nine months ended September 30, 2015, compared to a net loss of $135 million in the same period of 2014, largely impacted by acquisition-related financing costs.

Frequently Asked Questions

Charter Communications reported a net income of $54 million for the third quarter ended September 30, 2015, a substantial improvement from a net loss of $53 million in the same period of 2014. Total revenues increased by 7% to $2.45 billion, driven by growth in Internet and commercial services.

The company is actively pursuing two major transactions: the acquisition of Time Warner Cable (TWC) and the acquisition of Bright House Networks. These deals are expected to significantly expand Charter's scale and market presence. The company has secured substantial debt financing for these transactions and is progressing through the regulatory approval process.

Charter's long-term debt increased significantly to $33.28 billion as of September 30, 2015, from $21.02 billion at December 31, 2014. This increase is primarily due to the substantial debt financing raised to fund the pending acquisitions of Time Warner Cable and Bright House Networks.

While the company achieved net income in the third quarter of 2015, it reported a net loss of $149 million for the nine months ended September 30, 2015. This loss is largely attributable to increased interest expenses related to acquisition financing and other costs. However, revenue growth and improved Adjusted EBITDA suggest underlying operational strength, with the full impact of the strategic acquisitions yet to be realized.