(in thousands except ARPU and penetration, unaudited)
2018
2019
2020
1Q
2Q
3Q
4Q
FY
1Q
2Q
3Q
4Q
FY
1Q
2Q
3Q
Footprint (a)
Estimated Passings
50,526
50,725
50,977
51,185
51,185
51,384
51,619
51,940
52,154
52,154
52,418
52,714
53,022
Customer Relationships (b)
Residential
25,730
25,871
26,063
26,270
26,270
26,591
26,755
27,037
27,277
27,277
27,745
28,496
28,912
Small and Medium Business ("SMB")
1,695
1,750
1,792
1,833
1,833
1,863
1,902
1,930
1,958
1,958
1,976
1,980
2,021
Total Customer Relationships
27,425
27,621
27,855
28,103
28,103
28,454
28,657
28,967
29,235
29,235
29,721
30,476
30,933
Residential
231
141
192
207
771
321
164
282
240
1,007
468
751
416
SMB
33
55
42
41
171
30
39
28
28
125
18
4
41
Total Customer Relationships Net Additions
264
196
234
248
942
351
203
310
268
1,132
486
755
457
Total Customer Relationship Penetration of Estimated Passings (c)
54.3%
54.5%
54.6%
54.9%
54.9%
55.4%
55.5%
55.8%
56.1%
56.1%
56.7%
57.8%
58.3%
Monthly Residential Revenue per Residential Customer (d)
$
111.41
$
111.88
$
111.13
$
111.78
$
111.56
$
112.47
$
112.20
$
112.00
$
113.79
$
112.63
$
112.73
$
110.82
$
109.03
Monthly SMB Revenue per SMB Customer (e)
$
178.84
$
176.96
$
173.52
$
170.62
$
174.88
$
170.64
$
170.42
$
169.44
$
169.06
$
169.90
$
168.83
$
166.06
$
164.77
Residential Customer Relationships Penetration
Single Play Penetration (f)
41.1%
41.3%
41.7%
41.6%
41.6%
42.1%
42.4%
42.7%
43.0%
43.0%
43.6%
44.0%
44.2%
Double Play Penetration (f)
25.4%
25.6%
26.1%
27.0%
27.0%
27.9%
28.8%
29.9%
30.7%
30.7%
31.2%
31.7%
32.3%
Triple Play Penetration (f)
33.5%
33.0%
32.3%
31.4%
31.4%
30.0%
28.8%
27.3%
26.2%
26.2%
25.2%
24.3%
23.5%
% Residential Non-Video Customer Relationships
36.7%
37.4%
38.1%
38.7%
38.7%
40.0%
40.9%
41.8%
42.7%
42.7%
44.0%
45.1%
45.7%
Internet
Residential
22,852
23,070
23,336
23,625
23,625
24,023
24,244
24,595
24,908
24,908
25,471
26,313
26,807
SMB
1,503
1,552
1,594
1,634
1,634
1,664
1,701
1,730
1,756
1,756
1,775
1,783
1,826
Total Internet Customers
24,355
24,622
24,930
25,259
25,259
25,687
25,945
26,325
26,664
26,664
27,246
28,096
28,633
Residential
334
218
266
289
1,107
398
221
351
313
1,283
563
842
494
SMB
33
49
42
40
164
30
37
29
26
122
19
8
43
Total Internet Net Additions
367
267
308
329
1,271
428
258
380
339
1,405
582
850
537
Video
Residential
16,279
16,206
16,140
16,104
16,104
15,952
15,802
15,725
15,620
15,620
15,550
15,652
15,705
SMB
460
476
488
502
502
509
518
520
524
524
524
516
530
Total Video Customers
16,739
16,682
16,628
16,606
16,606
16,461
16,320
16,245
16,144
16,144
16,074
16,168
16,235
Residential
(121)
(73)
(66)
(36)
(296)
(152)
(150)
(77)
(105)
(484)
(70)
102
53
SMB
10
16
12
14
52
7
9
2
4
22
-
(8)
14
Total Video Net Additions (Losses)
(111)
(57)
(54)
(22)
(244)
(145)
(141)
(75)
(101)
(462)
(70)
94
67
Voice
Residential
10,370
10,325
10,218
10,135
10,135
10,015
9,808
9,595
9,443
9,443
9,360
9,398
9,335
SMB
957
994
1,024
1,051
1,051
1,072
1,097
1,120
1,144
1,144
1,162
1,169
1,207
Total Voice Customers
11,327
11,319
11,242
11,186
11,186
11,087
10,905
10,715
10,587
10,587
10,522
10,567
10,542
Residential
(54)
(45)
(107)
(83)
(289)
(120)
(207)
(213)
(152)
(692)
(83)
38
(63)
SMB
27
37
30
27
121
21
25
23
24
93
18
7
38
Total Voice Net Additions (Losses)
(27)
(8)
(77)
(56)
(168)
(99)
(182)
(190)
(128)
(599)
(65)
45
(25)
Mobile Lines
Residential
-
-
21
134
134
310
518
793
1,078
1,078
1,359
1,672
2,020
SMB
-
-
-
-
-
-
-
1
4
4
13
25
40
Total Mobile Lines
-
-
21
134
134
310
518
794
1,082
1,082
1,372
1,697
2,060
Residential
-
-
21
113
134
176
208
275
285
944
281
313
348
SMB
-
-
-
-
-
-
-
1
3
4
9
12
15
Total Mobile Lines Net Additions
-
-
21
113
134
176
208
276
288
948
290
325
363
Enterprise (g)
Enterprise Primary Service Units ("PSUs")
228
235
243
248
248
253
258
264
267
267
269
270
272
Enterprise Net Additions
8
7
8
5
28
5
5
6
3
19
2
1
2
All percentages are calculated using whole numbers. Minor differences may exist due to rounding.
1
See footnotes on page 5.
Charter Communications, Inc.
Revenue, Expenses, and Adjusted EBITDA (h) ($ in millions; unaudited)
2018
2019
2020
1Q
2Q
3Q
4Q
FY
1Q
2Q
3Q
4Q
FY
1Q
2Q
3Q
Revenue
Internet
$
3,707
$
3,770
$
3,809
$
3,895
$
15,181
$
4,024
$
4,103
$
4,195
$
4,345
$
16,667
$
4,407
$
4,530
$
4,722
Video
4,292
4,363
4,332
4,361
17,348
4,384
4,391
4,359
4,473
17,607
4,422
4,371
4,221
Voice
556
531
512
515
2,114
504
489
477
450
1,920
457
451
449
Residential Revenue
8,555
8,664
8,653
8,771
34,643
8,912
8,983
9,031
9,268
36,194
9,286
9,352
9,392
Small and Medium Business
900
915
922
928
3,665
945
963
974
986
3,868
996
983
988
Enterprise
622
627
632
647
2,528
643
652
644
617
2,556
622
606
617
Commercial Revenue
1,522
1,542
1,554
1,575
6,193
1,588
1,615
1,618
1,603
6,424
1,618
1,589
1,605
Advertising Sales
356
427
440
562
1,785
345
395
394
434
1,568
365
249
460
Mobile
-
-
17
89
106
140
158
192
236
726
258
310
368
Other
224
221
228
234
907
221
196
215
220
852
211
196
214
Total Revenue
$
10,657
$
10,854
$
10,892
$
11,231
$
43,634
$
11,206
$
11,347
$
11,450
$
11,761
$
45,764
$
11,738
$
11,696
$
12,039
Y/Y Growth
4.9%
4.8%
4.2%
5.9%
4.9%
5.1%
4.5%
5.1%
4.7%
4.9%
4.8%
3.1%
5.1%
Costs and Expenses
Programming
$
2,752
$
2,803
$
2,778
$
2,791
$
11,124
$
2,865
$
2,827
$
2,790
$
2,808
$
11,290
$
2,892
$
2,873
$
2,727
Regulatory, Connectivity and Produced Content
533
560
546
571
2,210
561
597
612
596
2,366
551
488
612
Costs to Service Customers
1,854
1,784
1,854
1,835
7,327
1,822
1,767
1,894
1,794
7,277
1,848
1,848
1,902
Marketing
751
769
790
732
3,042
735
768
793
748
3,044
766
719
788
Mobile
8
33
94
211
346
260
277
337
372
1,246
374
413
456
Other Expense
866
854
879
927
3,526
908
926
938
914
3,686
911
866
915
Total Operating Costs and Expenses
$
6,764
$
6,803
$
6,941
$
7,067
$
27,575
$
7,151
$
7,162
$
7,364
$
7,232
$
28,909
$
7,342
$
7,207
$
7,400
Adjusted EBITDA (h)
Adjusted EBITDA (h)
$
3,893
$4,051
$3,951
$4,164
$16,059
$4,055
$4,185
$4,086
$4,529
$16,855
$4,396
$4,489
$4,639
Y/Y Growth
6.5%
5.3%
3.5%
4.6%
5.0%
4.2%
3.3%
3.4%
8.8%
5.0%
8.4%
7.3%
13.6%
Adjusted EBITDA Margin (h)
36.5%
37.3%
36.3%
37.1%
36.8%
36.2%
36.9%
35.7%
38.5%
36.8%
37.4%
38.4%
38.5%
Cable Adjusted EBITDA (h)
$
3,901
$
4,084
$
4,028
$
4,286
$
16,299
$
4,175
$
4,304
$
4,231
$
4,665
$
17,375
$
4,512
$
4,592
$
4,727
Cable Y/Y Growth
6.8%
6.2%
5.5%
7.6%
6.5%
7.0%
5.4%
5.0%
8.9%
6.6%
8.1%
6.7%
11.7%
Cable Adjusted EBITDA Margin (h)
36.6%
37.6%
37.0%
38.5%
37.4%
37.7%
38.5%
37.6%
40.5%
38.6%
39.3%
40.3%
40.5%
Adjusted EBITDA(h) and cable Adjusted EBITDA(h) are non-GAAP terms. See page 4 for the reconciliation of Adjusted EBITDA(h) and cable Adjusted EBITDA(h) to net income attributable to Charter shareholders as defined by GAAP.
All percentages are calculated using whole numbers. Minor differences may exist due to rounding. See footnotes on page 5.
2
Charter Communications, Inc. Capital Expenditures
($ in millions; unaudited)
2018
2019
2020
1Q
2Q
3Q
4Q
FY
1Q
2Q
3Q
4Q
FY
1Q
2Q
3Q
Capital Expenditures
Customer premise equipment (i)
$
934
$
828
$
675
$
687
$
3,124
$
565
$
492
$
470
$
543
$
2,070
$
463
$
518
$
520
Scalable infrastructure (j)
486
587
505
649
2,227
297
223
320
599
1,439
170
385
424
Line extensions (k)
291
353
348
381
1,373
321
363
370
390
1,444
343
422
439
Success Based
1,711
1,768
1,528
1,717
6,724
1,183
1,078
1,160
1,532
4,953
976
1,325
1,383
Upgrade/Rebuild (l)
142
190
190
182
704
131
155
165
183
634
129
155
175
Support capital (m)
330
433
400
534
1,697
351
364
326
567
1,608
356
397
456
Total capital expenditures
2,183
2,391
2,118
2,433
9,125
1,665
1,597
1,651
2,282
7,195
1,461
1,877
2,014
Less: Mobile capital expenditures
(17)
(53)
(66)
(106)
(242)
(88)
(93)
(100)
(151)
(432)
(87)
(125)
(139)
Cable capital expenditures
$
2,166
$
2,338
$
2,052
$
2,327
$
8,883
$
1,577
$
1,504
$
1,551
$
2,131
$
6,763
$
1,374
$
1,752
$
1,875
Capital expenditures included in total related to:
Commercial services
$
283
$
309
$
342
$
379
$
1,313
$
305
$
324
$
327
$
358
$
1,314
$
261
$
323
$
358
All-digital transition
$
186
$
88
$
42
$
28
$
344
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
See footnotes on page 5.
3
Charter Communications, Inc.
Reconciliation of Non-GAAP Measures to GAAP Measures ($ in millions; unaudited)
2018
2019
2020
1Q
2Q
3Q
4Q
FY
1Q
2Q
3Q
4Q
FY
1Q
2Q
3Q
Reconciliation
Net income attributable to Charter shareholders
$
168
$
273
$
493
$
296
$
1,230
$
253
$
314
$
387
$
714
$
1,668
$
396
$
766
$
814
Plus:
Net income attributable to noncontrolling interest
55
66
91
64
276
64
72
80
108
324
71
110
118
Interest expense, net
851
878
901
910
3,540
925
945
963
964
3,797
980
957
946
Income tax expense
28
41
109
2
180
119
84
126
110
439
29
166
177
Depreciation and amortization
2,710
2,592
2,482
2,534
10,318
2,550
2,500
2,415
2,461
9,926
2,497
2,428
2,370
Stock compensation expense
72
70
71
72
285
85
82
71
77
315
90
90
83
Loss on extinguishment of debt
-
-
-
-
-
-
-
-
25
25
27
36
58
Gain (loss) on financial instruments, net
(63)
75
(12)
110
110
(37)
119
34
(62)
54
318
(64)
(69)
Other pension (benefits) costs, net
(20)
(20)
(207)
55
(192)
(9)
(9)
(9)
96
69
(10)
(11)
115
Other, net
92
76
23
121
312
105
78
19
36
238
(2)
11
27
Adjusted EBITDA (h)
3,893
4,051
3,951
4,164
16,059
4,055
4,185
4,086
4,529
16,855
4,396
4,489
4,639
Less: Mobile revenue
-
-
(17)
(89)
(106)
(140)
(158)
(192)
(236)
(726)
(258)
(310)
(368)
Plus: Mobile costs and expenses
8
33
94
211
346
260
277
337
372
1,246
374
413
456
Cable Adjusted EBITDA (h)
$
3,901
$
4,084
$
4,028
$
4,286
$
16,299
$
4,175
$
4,304
$
4,231
$
4,665
$
17,375
$
4,512
$
4,592
$
4,727
Net cash flows from operating activities
$
2,699
$
3,096
$
2,804
$
3,168
$
11,767
$
2,686
$
2,761
$
2,943
$
3,358
$
11,748
$
3,220
$
3,529
$
3,664
Less:
Purchases of property, plant and equipment
(2,183)
(2,391)
(2,118)
(2,433)
(9,125)
(1,665)
(1,597)
(1,651)
(2,282)
(7,195)
(1,461)
(1,877)
(2,014)
Change in accrued expenses related to capital expenditures
(565)
99
(154)
150
(470)
(376)
(52)
(21)
504
55
(388)
214
104
Free cash flow (h)
(49)
804
532
885
2,172
645
1,112
1,271
1,580
4,608
1,371
1,866
1,754
Plus:
Mobile net cash outflows from operating activities
8
63
83
198
352
203
204
156
166
729
173
108
126
Purchases of mobile property, plant and equipment
17
53
66
106
242
88
93
100
151
432
87
125
139
Cable free cash flow (h)
$
(24)
$
920
$
681
$
1,189
$
2,766
$
936
$
1,409
$
1,527
$
1,897
$
5,769
$
1,631
$
2,099
$
2,019
See page 2 for detail of the components included within Adjusted EBITDA (h) and cable Adjusted EBITDA (h).
The above schedule is presented in order to reconcile Adjusted EBITDA (h), cable Adjusted EBITDA (h), free cash flow (h) and cable free cash flow (h), non-GAAP measures, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act. See footnotes on page 5.
4
Charter Communications, Inc.
Notes
Passings represent our estimate of the number of units, such as single family homes, apartment and condominium units and small and medium business and enterprise sites passed by our cable distribution network in the areas where we offer service. These estimates are based upon the information available at this time and are updated for all periods presented when new information becomes available.
Customer relationships include the number of customers that receive one or more levels of service, encompassing Internet, video and voice services, without regard to which service(s) such customers receive. Customers who reside in residential multiple dwelling units ("MDUs") and that are billed under bulk contracts are counted based on the number of billed units within each bulk MDU. Total customer relationships exclude enterprise and mobile-only customer relationships. At September 30, 2020, there were approximately 60,200 customers that would have been disconnected under our normal collection policies, but were not due to certain mandates in place.
Penetration represents residential and SMB customers as a percentage of estimated passings. Penetration excludes mobile-only customers.
Monthly residential revenue per residential customer is calculated as total residential quarterly revenue divided by three divided by average residential customer relationships during the respective quarter and excludes mobile revenue and customers.
Monthly SMB revenue per SMB customer is calculated as total SMB quarterly revenue divided by three divided by average SMB customer relationships during the respective quarter and excludes mobile revenue and customers.
Single play, double play and triple play penetration represents the number of residential single play, double play and triple play customers, respectively, as a percentage of residential customer relationships, excluding mobile.
Enterprise PSUs represents the aggregate number of fiber service offerings counting each separate service offering at each customer location as an individual PSU.
Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, loss on extinguishment of debt, (gain) loss on financial instruments, net, other pension (benefits) costs, net, other (income) expense, net and other operating (income) expenses, net such as special charges and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our businesses as well as other non-cash or special items, and is unaffected by our capital structure or investment activities.
Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.
Cable Adjusted EBITDA is defined as Adjusted EBITDA less mobile revenues plus mobile operating costs and expenses. Cable free cash flow is defined as free cash flow plus net cash outflows from operating activities and capital expenditures related to mobile.
Customer premise equipment includes costs incurred at the customer residence to secure new customers and revenue generating units, including customer installation costs and customer premise equipment (e.g., set-top boxes and cable modems, etc.).
Scalable infrastructure includes costs, not related to customer premise equipment or our network, to secure growth of new customers and revenue generating units, or provide service enhancements (e.g., headend equipment).
Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering).
Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including betterments.
Support capital includes costs associated with the replacement or enhancement of non-network assets due to technological and physical obsolescence (e.g., non-network equipment, land, buildings and vehicles).
Charter Communications Inc. published this content on 30 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2020 13:49:02 UTC
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