STAMFORD, Conn., Oct. 29,
2015 /PRNewswire/ -- Charter Communications, Inc. (NASDAQ:
CHTR) (along with its subsidiaries, the "Company" or "Charter")
today reported financial and operating results for the three and
nine months ended September 30, 2015.
Key highlights:
- Residential customer relationships increased by 97,000 during
the third quarter, versus 68,000 during the third quarter of 2014.
For the twelve months ending September 30,
2015, residential customer relationships grew by 5.0%, or
290,000.
- Residential primary service units ("PSUs") increased by 180,000
during the third quarter versus a gain of 114,000 in the prior-year
period, including residential video net additions of 12,000.
- Following the launch of Spectrum Business pricing and packaging
to the small and medium business segment in March 2015, commercial customer relationships
grew by 17,000 during the third quarter of 2015, including
commercial video customers net additions of 4,000.
- Third quarter revenues of $2.5
billion grew 7.2%1 as compared to the prior-year
period, driven by residential revenue growth of 7.3% and commercial
revenue growth of 13.2%.
- Third quarter Adjusted EBITDA2 grew by 8.5%
year-over-year. Excluding third quarter transactions transition
costs of $12 million, third quarter
Adjusted EBITDA grew by 9.7% year-over-year.
- Capital expenditures totaled $509
million in the third quarter of 2015, compared to
$569 million during the third quarter
of 2014. Excluding transactions transition capital expenditures,
third quarter capital expenditures totaled $485 million.
- Third quarter free cash flow was $208
million, compared to negative free cash flow of $62 million during the prior-year period, driven
by higher Adjusted EBITDA, lower capital expenditures and a
positive working capital contribution.
"Our accelerating customer and PSU growth is being driven by our
successful efforts to transform Charter into an organization that
delivers outstanding products, service and customer value," said
Tom Rutledge, President and CEO of
Charter Communications. "Our operating strategy, which includes
continued investment in superior products at attractive price
points, with a highly-skilled US-based labor force, has accelerated
our customer growth, leading to faster EBITDA growth and free cash
flow generation. We look forward to applying the same strategy
across our larger footprint, following the close of our Time Warner
Cable and Bright House transactions, driving greater value for
customers and shareholders."
1All
percentages are calculated using actual amounts. Minor differences
may exist due to rounding.
|
2Adjusted
EBITDA and free cash flow are defined in the "Use of Non-GAAP
Financial Metrics" section and are reconciled to net income (loss)
and net cash flows from operating activities, respectively, in the
addendum of this news release.
|
Key Operating Results
|
Approximate as
of
|
|
|
|
September 30, 2015
(a)
|
|
September 30, 2014
(a)
|
|
Y/Y
Change
|
Footprint
(b)
|
|
|
|
|
|
Estimated Video
Passings
|
13,008
|
|
12,877
|
|
1 %
|
Estimated Internet
Passings
|
12,728
|
|
12,548
|
|
1 %
|
Estimated Voice
Passings
|
12,252
|
|
12,043
|
|
2 %
|
|
|
|
|
|
|
Penetration
Statistics (c)
|
|
|
|
|
|
Video Penetration of
Estimated Video Passings
|
32.9 %
|
|
33.4 %
|
|
-0.5
ppts
|
Internet Penetration of
Estimated Internet Passings
|
42.7 %
|
|
39.5 %
|
|
3.2
ppts
|
Voice Penetration of
Estimated Voice Passings
|
22.5 %
|
|
21.3 %
|
|
1.2
ppts
|
|
|
|
|
|
|
Residential
|
|
|
|
|
|
Residential Customer
Relationships (d)
|
6,058
|
|
5,768
|
|
5 %
|
Residential Non-Video
Customers
|
1,926
|
|
1,611
|
|
20 %
|
% Non-Video
|
31.8 %
|
|
27.9 %
|
|
3.9
ppts
|
|
|
|
|
|
|
Residential
Primary Service Units ("PSU")
|
|
|
|
|
|
Video
|
4,132
|
|
4,157
|
|
(1)%
|
Internet
|
5,092
|
|
4,662
|
|
9 %
|
Voice
|
2,551
|
|
2,389
|
|
7 %
|
|
11,775
|
|
11,208
|
|
5 %
|
Residential PSU /
Customer Relationships (d)
|
1.94
|
|
1.94
|
|
|
|
|
|
|
|
|
Quarterly Net
Additions/(Losses)
|
|
|
|
|
|
Video
|
12
|
|
(9)
|
|
NM
|
Internet
|
131
|
|
94
|
|
39 %
|
Voice
|
37
|
|
29
|
|
28 %
|
|
180
|
|
114
|
|
58 %
|
|
|
|
|
|
|
Bulk Digital Upgrade
Net Additions/(Losses) (e)
|
1
|
|
20
|
|
NM
|
|
|
|
|
|
|
Single Play Penetration
(f)
|
38.5 %
|
|
38.1 %
|
|
0.4
ppts
|
Double Play Penetration
(f)
|
28.6 %
|
|
29.3 %
|
|
-0.7
ppts
|
Triple Play Penetration
(f)
|
32.9 %
|
|
32.6 %
|
|
0.3
ppts
|
|
|
|
|
|
|
Monthly Residential
Revenue per Residential Customer (d)(g)
|
$113.39
|
|
$110.81
|
|
2 %
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
Commercial Customer
Relationships (d)(h)
|
433
|
|
380
|
|
14 %
|
|
|
|
|
|
|
Commercial
PSUs
|
|
|
|
|
|
Video (h)
|
142
|
|
139
|
|
2 %
|
Internet
|
349
|
|
294
|
|
19 %
|
Voice
|
211
|
|
172
|
|
23 %
|
|
702
|
|
605
|
|
16 %
|
|
|
|
|
|
|
Quarterly Net
Additions/(Losses)
|
|
|
|
|
|
Video (h)
|
4
|
|
(15)
|
|
NM
|
Internet
|
16
|
|
12
|
|
33 %
|
Voice
|
11
|
|
8
|
|
38 %
|
|
31
|
|
5
|
|
520 %
|
|
Footnotes
|
In thousands, except
per customer and penetration data. See footnotes to unaudited
summary of operating statistics on page 5 of the addendum of this
news release. The footnotes contain important disclosures regarding
the definitions used for these operating statistics.
|
|
NM - Not
meaningful
|
During the third quarter of 2015, Charter's residential customer
relationships grew by 97,000, with triple play sell-in improving
year-over-year to 63% of total residential video sales. Residential
PSUs increased by 180,000 versus a gain of 114,000 in the
prior-year period, driven by Charter Spectrum, an
industry-leading suite of video, Internet, and voice services
launched in 2014. Charter Spectrum includes over 200 HD
channels, in addition to minimum offered Internet speeds of 60
Mbps, and a fully-featured voice service, delivered at a highly
competitive price. As of the end of the third quarter of 2015, 89%
of Charter's residential customers received Charter Spectrum
products.
Residential video customers increased by 12,000 in the third
quarter of 2015, versus a loss of 9,000 in the year-ago period.
Excluding the impact of bulk digital upgrades, Charter's
residential video customers grew by 11,000 during the third
quarter, versus a loss of 29,000 during the prior-year period.
For the past three years, Charter has significantly increased
the competitiveness of its video product, by including more HD
channels and video on demand offerings, attractive packaging of
advanced services, improved selling methods, and enhanced service
quality. Today, virtually all of Charter's passings are fully
digitized, with access to more HD channels than satellite TV
offers, and as of September 30, 2015, 97% of video customers
subscribed to the Company's expanded basic video service.
Charter has introduced its new cloud-based user interface,
Spectrum Guide, to its video customers in certain markets.
Spectrum Guide dramatically improves video
content search and discovery, and fully enables Charter's on-demand
offering. In addition, Spectrum Guide can function on nearly
all of Charter's deployed set-tops. Charter is also poised to
launch its new set-top box, World Box, which features
downloadable security along with other advanced functionality,
driving an enhanced customer experience and reducing incremental
set-top box costs.
Charter added 131,000 residential Internet customers in the
third quarter of 2015, compared to 94,000 a year ago. As of
September 30, 2015, 88% of Charter's residential Internet
customers subscribed to tiers that provided speeds of 60 Mbps or
more. The Company continues to see strong demand for its Internet
service as consumers value the speed and reliability of Charter's
Internet offering.
During the third quarter, the Company added 37,000 residential
voice customers, versus a gain of 29,000 during the third quarter
of 2014.
Third quarter residential revenue per customer relationship
totaled $113.39, and grew by 2.3% as
compared to the prior-year period, driven by rate adjustments,
higher product sell-in and promotional rate step-ups, partially
offset by continued single play Internet sell-in.
During the third quarter of 2015, commercial customer
relationships grew by 17,000 versus a loss of 5,000 during the
third quarter of 2014. Commercial PSUs increased 31,000, compared
to 5,000 during the third quarter of 2014. Charter's accelerating
commercial customer and PSU growth is being driven by the launch of
the Spectrum Business product suite to the small and medium
business segments during the first quarter of 2015. This
competitive new offering is intended to provide better products and
greater value to small and medium business customers.
Third Quarter Financial Results
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS AND OPERATING
DATA
|
(dollars in
millions, except per share data)
|
|
|
Three Months Ended
September 30,
|
|
2015
|
|
2014
|
|
%
Change
|
REVENUES:
|
|
|
|
|
|
Video
|
$ 1,143
|
|
$ 1,109
|
|
3.1 %
|
Internet
|
762
|
|
652
|
|
16.9 %
|
Voice
|
135
|
|
141
|
|
(4.8)%
|
Commercial
|
286
|
|
253
|
|
13.2 %
|
Advertising
sales
|
77
|
|
87
|
|
(11.8)%
|
Other
|
47
|
|
45
|
|
5.3 %
|
Total
Revenues
|
2,450
|
|
2,287
|
|
7.2 %
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
Total operating costs
and expenses
|
1,600
|
|
1,504
|
|
6.5 %
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 850
|
|
$ 783
|
|
8.5 %
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
34.7 %
|
|
34.2 %
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
$ 509
|
|
$ 569
|
|
|
% Total
Revenues
|
20.8 %
|
|
24.9 %
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$ 54
|
|
$ (53)
|
|
|
Income (loss) per
common share, basic
|
$ 0.48
|
|
$ (0.49)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$ 689
|
|
$ 520
|
|
|
Free cash
flow
|
$ 208
|
|
$ (62)
|
|
|
Revenue
Third quarter 2015 revenues rose to $2.5
billion, 7.2% higher than the year-ago quarter, driven
primarily by growth in Internet, commercial and video revenues.
Video revenues totaled $1.1
billion in the third quarter, an increase of 3.1% compared
to the prior-year period. Video revenue growth was driven by higher
advanced services penetration, annual and promotional rate
adjustments and an increase in expanded basic and digital
customers, partially offset by a decrease in residential limited
basic video customers.
Internet revenues grew 16.9% compared to the year-ago quarter to
$762 million, driven by an increase
of 430,000 Internet customers during the last year and by
promotional rolloff, price adjustments and revenue allocation from
higher bundling.
Voice revenues totaled $135
million, a decline of 4.8% versus the third quarter of 2014,
due to value-based pricing and revenue allocation from higher
bundling, partially offset by the addition of 162,000 voice
customers in the last twelve months.
Commercial revenues rose to $286
million an increase of 13.2% over the prior-year period, and
was driven by higher sales to small and medium business customers
and to carrier customers.
Third quarter advertising sales revenues of $77 million decreased 11.8% compared to the
year-ago quarter primarily driven by a decrease in political
advertising revenue of $7
million.
Operating Costs and Expenses
Third quarter total operating costs and expenses increased by
$96 million, or 6.5%, compared to the
year-ago period, reflecting increases in programming costs, other
expenses and transition costs related to Charter's pending
transactions with Time Warner Cable Inc. ("Time Warner Cable") and
Bright House Networks, LLC ("Bright House"). Transition costs
accounted for $12 million of total
third quarter operating costs. Excluding these transition costs,
third quarter total operating expenses increased by $87 million, or 5.8% year over year.
Third quarter programming expense increased by $46 million, or 7.4%, as compared to the third
quarter of 2014, reflecting contractual programming increases and a
higher number of expanded basic package customers, broader carriage
of certain networks as a result of all-digital and the introduction
of new networks to Charter's video offering.
Costs to service customers increased by 1.9% year-over-year
versus year-over-year residential customer relationship growth of
5.0%, given improved service metrics. Other expenses grew by
$29 million, or 13.7%, as compared to
the third quarter of 2014, reflecting higher corporate and
administrative labor costs, bad debt expense, property tax and
insurance costs and commercial labor costs.
Adjusted EBITDA
Third quarter Adjusted EBITDA of $850
million grew by 8.5% year-over-year, reflecting revenue
growth and operating costs and expenses growth of 7.2% and 6.5%,
respectively. Excluding transition-related expenses of $12 million, third quarter Adjusted EBITDA grew
by 9.7% year-over-year.
Net Income (Loss)
Net income totaled $54 million in
the third quarter of 2015, compared to a net loss of $53 million in the third quarter of 2014. The
year-over-year increase in net income was driven by a $142 million tax benefit in the third quarter of
2015 versus a $59 million tax expense
in the third quarter of 2014, and higher income from operations,
offset by $163 million of interest
expense related to the financing of Charter's pending transactions
with Time Warner Cable and Bright House. The tax benefit was
primarily related to a partnership restructuring in the third
quarter of 2015. Basic and diluted earnings per common share was
$0.48 in the third quarter of 2015
compared to basic and diluted net loss per common share of
$0.49 during the same period last
year. The increase in earnings per common share was primarily the
result of the factors described above, partially offset by a 2.9%
increase in weighted average shares outstanding versus the
prior-year period.
Capital Expenditures
Property, plant and equipment expenditures totaled $509 million in the third quarter of 2015,
compared to $569 million during the
third quarter of 2014. The decrease was the result of a decline in
customer premise equipment ("CPE") spending, partially offset by
higher product development investments and transition capital
expenditures related to Charter's planned and pending acquisitions.
CPE spending declined versus the prior-year period as Charter
completed its all-digital initiative in the fourth quarter of 2014.
Transition-related capital expenditures accounted for $24 million of capital expenditures in the third
quarter.
Charter currently expects 2015 capital expenditures to be
approximately $1.7 billion, excluding
transition expenditures related to acquisitions. Charter expects
its 2015 capital expenditures to be driven by growth in residential
and commercial customers along with further investment related to
product development.
Cash Flow
During the third quarter of 2015, net cash flows from operating
activities totaled $689 million,
compared to $520 million in the third
quarter of 2014. The year-over-year increase in net cash flow from
operating activities was primarily due to an increase in Adjusted
EBITDA and a positive working capital contribution.
Free cash flow for the third quarter of 2015 was $208 million, compared to negative free cash flow
of $62 million during the same period
last year. The increase was primarily due to higher net cash flows
from operating activities and lower capital expenditures.
Liquidity & Financing
Total principal amount of debt was approximately $33.3 billion as of September 30, 2015, of
which $19.3 billion was being held in
escrow for Charter's pending transactions with Time Warner Cable
and Bright House Networks, described below. At the end of the
quarter, Charter's credit facilities provided approximately
$1.0 billion of additional
liquidity.
In May 2015, Charter entered into
a merger agreement with Time Warner Cable and, CCH I, LLC ("New
Charter"), pursuant to which the parties to the agreement will
engage in a series of transactions that will result in Charter and
Time Warner Cable becoming wholly owned subsidiaries of New Charter
(the "TWC Transaction"). After giving effect to the TWC
Transaction, New Charter will be the new public company parent that
will hold the operations of the combined companies.
In May 2015, in connection with
the execution of the merger agreement with Time Warner Cable,
Charter's contribution agreement with Advance/Newhouse Partnership
was amended pursuant to which Charter would become the owner of the
membership interests in Bright House and any other assets primarily
related to Bright House.
In July 2015, Charter issued
$15.5 billion in aggregate principal
amount of senior secured notes comprised of $2.0 billion of 3.579% senior secured notes due
2020, $3.0 billion of 4.464% senior
secured notes due 2022, $4.5 billion
of 4.908% senior secured notes due 2025, $2.0 billion of 6.384% senior secured notes due
2035, $3.5 billion of 6.484% senior
secured notes due 2045 and $500
million of 6.834% senior notes due 2055. The net proceeds
were deposited into an escrow account and will be used to partially
finance the TWC Transaction as well as for general corporate
purposes.
In August 2015, Charter closed on
a new term loan H facility and a new term loan I facility totaling
an aggregate principal amount of $3.8
billion. The new term loan H facility was issued at a
principal amount of $1.0 billion and
matures in 2021. Pricing on the new term loan H facility was set at
LIBOR plus 2.50% with a LIBOR floor of 0.75% and issued at a price
of 99.75% of the aggregate principal amount. The new term loan I
facility was issued at a principal amount of $2.8 billion and matures in 2023. Pricing on the
new term loan I facility was set at LIBOR plus 2.75% with a LIBOR
floor of 0.75% and issued at a price of 99.75% of the aggregate
principal amount. The net proceeds were deposited into an escrow
account and will be used to partially finance the TWC Transaction
as well as for general corporate purposes.
Conference Call
Charter will host a conference call on Thursday,
October 29, 2015 at 10:00 a.m. Eastern
Time (ET) related to the contents of this release.
The conference call will be webcast live via the Company's
investor relations website at ir.charter.com. The call will be
archived under the "Financial Information" section two hours after
completion of the call. Participants should go to the webcast link
no later than 10 minutes prior to the start time to register.
Those participating via telephone should dial 866-919-0894 no
later than 10 minutes prior to the call. International participants
should dial 706-679-9379. The conference ID code for the call is
46580011.
A replay of the call will be available at 855-859-2056 or
404-537-3406 beginning two hours after the completion of the call
through the end of business on November 29,
2015. The conference ID code for the replay is 46580011.
Additional Information Available on Website
The information in this press release should be read in
conjunction with the financial statements and footnotes contained
in the Company's Form 10-Q for the three and nine months ended
September 30, 2015 which will be posted on the "Financial
Information" section of our investor relations website at
ir.charter.com, when it is filed with the United States Securities
and Exchange Commission. A slide presentation to accompany the
conference call and a trending schedule containing historical
customer and financial data will also be available in the
"Financial Information" section.
Use of Non-GAAP Financial Metrics
The Company uses certain measures that are not defined by
Generally Accepted Accounting Principles ("GAAP") to evaluate
various aspects of its business. Adjusted EBITDA and free cash flow
are non-GAAP financial measures and should be considered in
addition to, not as a substitute for, net loss or cash flows from
operating activities reported in accordance with GAAP. These terms,
as defined by Charter, may not be comparable to similarly titled
measures used by other companies. Adjusted EBITDA is reconciled to
net income (loss) and free cash flow is reconciled to net cash
flows from operating activities in the addendum of this news
release.
Adjusted EBITDA is defined as net income (loss) plus net
interest expense, income taxes, depreciation and amortization,
stock compensation expense, loss on extinguishment of debt, (gain)
loss on derivative instruments, net and other operating expenses,
such as merger and acquisition costs, 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 the Company's
businesses as well as other non-cash or special items, and is
unaffected by the Company's capital structure or investment
activities. However, this measure is limited in that it does not
reflect the periodic costs of certain capitalized tangible and
intangible assets used in generating revenues and the cash cost of
financing. These costs are evaluated through other financial
measures.
Free cash flow is defined as net cash flows from operating
activities, less purchases of property, plant and equipment and
changes in accrued expenses related to capital expenditures.
Management and the Company's board of directors use Adjusted
EBITDA and free cash flow to assess Charter's performance and its
ability to service its debt, fund operations and make additional
investments with internally generated funds. In addition, Adjusted
EBITDA generally correlates to the leverage ratio calculation under
the Company's credit facilities or outstanding notes to determine
compliance with the covenants contained in the credit facilities
and notes (all such documents have been previously filed with the
United States Securities and Exchange Commission). For the purpose
of calculating compliance with leverage covenants, we use Adjusted
EBITDA, as presented, excluding certain expenses paid by our
operating subsidiaries to other Charter entities. Our debt
covenants refer to these expenses as management fees which fees
were in the amount of $79 million and
$62 million for the three months
ended September 30, 2015 and 2014, respectively, and
$231 million and $184 million for the nine months ended
September 30, 2015 and 2014, respectively.
About Charter
Charter (NASDAQ: CHTR) is a leading broadband communications
company and the fourth-largest cable operator in the United States. Charter provides a full
range of advanced broadband services, including advanced Charter
Spectrum TV® video entertainment programming, Charter Spectrum
Internet® access, and Charter Spectrum Voice®. Spectrum Business
similarly provides scalable, tailored, and cost-effective broadband
communications solutions to business organizations, such as
business-to-business Internet access, data networking, business
telephone, video and music entertainment services, and wireless
backhaul. Charter's advertising sales and production services are
sold under the Charter Media® brand. More information about Charter
can be found at charter.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This communication includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, regarding, among other things, our plans, strategies and
prospects, both business and financial. Although we believe
that our plans, intentions and expectations reflected in or
suggested by these forward-looking statements are reasonable, we
cannot assure you that we will achieve or realize these plans,
intentions or expectations. Forward-looking statements are
inherently subject to risks, uncertainties and assumptions
including, without limitation, the factors described under "Risk
Factors" from time to time in our filings with the SEC. Many
of the forward-looking statements contained in this communication
may be identified by the use of forward-looking words such as
"believe", "expect", "anticipate", "should", "planned", "will",
"may", "intend", "estimated", "aim", "on track", "target",
"opportunity", "tentative", "positioning", "designed", "create",
"predict", "project", "seek", "would", "could", "continue",
"ongoing", "upside", "increases" and "potential", among
others. Important factors that could cause actual results to
differ materially from the forward-looking statements we make in
this communication are set forth in our Annual Report on Form 10-K,
our definitive proxy statement filed with the SEC on August 20, 2015, and other reports or documents
that we file from time to time with the SEC, and include, but are
not limited to:
Risks Related to the TWC Transaction and Bright House
Transaction (collectively, the "Transactions")
- delays in the completion of the Transactions;
- the risk that a condition to completion of the Transactions may
not be satisfied;
- the risk that regulatory or other approvals that may be
required for the Transactions is delayed, is not obtained or is
obtained subject to conditions that are not anticipated;
- New Charter's ability to achieve the synergies and value
creation contemplated by the TWC Transaction and/or the Bright
House Transaction;
- New Charter's ability to promptly, efficiently and effectively
integrate acquired operations into its own operations;
- managing a significantly larger company than before the
completion of the Transactions;
- diversion of management time on issues related to the
Transactions;
- changes in Charter's, TWC's or Bright House's businesses,
future cash requirements, capital requirements, results of
operations, revenues, financial condition and/or cash flows;
- disruption in the existing business relationships of Charter,
TWC and Bright House as a result of the TWC Transaction and/or the
Bright House Transaction;
- the increase in indebtedness as a result of the Transactions,
which will increase interest expense and may decrease Charter's
operating flexibility;
- changes in transaction costs, the amount of fees paid to
financial advisors, potential termination fees and the potential
payments to TWC's and Bright House's executive officers in
connection with the Transactions;
- operating costs and business disruption that may be greater
than expected;
- the ability to retain and hire key personnel and maintain
relationships with providers or other business partners pending
completion of the Transactions; and
- the impact of competition.
Risks Related to Our Business
- our ability to sustain and grow revenues and cash flow from
operations by offering video, Internet, voice, advertising and
other services to residential and commercial customers, to
adequately meet the customer experience demands in our markets and
to maintain and grow our customer base, particularly in the face of
increasingly aggressive competition, the need for innovation and
the related capital expenditures;
- the impact of competition from other market participants,
including but not limited to incumbent telephone companies, direct
broadcast satellite operators, wireless broadband and telephone
providers, digital subscriber line ("DSL") providers, video
provided over the Internet and providers of advertising over the
Internet;
- general business conditions, economic uncertainty or downturn,
high unemployment levels and the level of activity in the housing
sector;
- our ability to obtain programming at reasonable prices or to
raise prices to offset, in whole or in part, the effects of higher
programming costs (including retransmission consents);
- the development and deployment of new products and technologies
including our cloud-based user interface, Spectrum Guide®, and
downloadable security for set-top boxes;
- the effects of governmental regulation on our business or
potential business combination transactions;
- any events that disrupt our networks, information systems or
properties and impair our operating activities and negatively
impact our reputation;
- the availability and access, in general, of funds to meet our
debt obligations prior to or when they become due and to fund our
operations and necessary capital expenditures, either through (i)
cash on hand, (ii) free cash flow, or (iii) access to the capital
or credit markets; and
- our ability to comply with all covenants in our indentures and
credit facilities, any violation of which, if not cured in a timely
manner, could trigger a default of our other obligations under
cross-default provisions.
All forward-looking statements attributable to us or any person
acting on our behalf are expressly qualified in their entirety by
this cautionary statement. We are under no duty or obligation to
update any of the forward-looking statements after the date of this
release.
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS AND OPERATING
DATA
|
(dollars in
millions, except per share data)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2015
|
|
2014
|
|
%
Change
|
|
2015
|
|
2014
|
|
%
Change
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
Video
|
$
1,143
|
|
$
1,109
|
|
3.1 %
|
|
$
3,420
|
|
$
3,309
|
|
3.4 %
|
Internet
|
762
|
|
652
|
|
16.9 %
|
|
2,222
|
|
1,906
|
|
16.6 %
|
Voice
|
135
|
|
141
|
|
(4.8)%
|
|
404
|
|
436
|
|
(7.5)%
|
Commercial
|
286
|
|
253
|
|
13.2 %
|
|
833
|
|
731
|
|
14.0 %
|
Advertising
sales
|
77
|
|
87
|
|
(11.8)%
|
|
222
|
|
234
|
|
(5.2)%
|
Other
|
47
|
|
45
|
|
5.3 %
|
|
141
|
|
132
|
|
7.4 %
|
Total
Revenues
|
2,450
|
|
2,287
|
|
7.2 %
|
|
7,242
|
|
6,748
|
|
7.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Programming
|
667
|
|
621
|
|
7.4 %
|
|
2,004
|
|
1,834
|
|
9.2 %
|
Franchises, regulatory
and connectivity
|
108
|
|
105
|
|
3.1 %
|
|
324
|
|
319
|
|
1.5 %
|
Costs to service
customers
|
435
|
|
428
|
|
1.9 %
|
|
1,276
|
|
1,249
|
|
2.2 %
|
Marketing
|
138
|
|
136
|
|
2.6 %
|
|
409
|
|
404
|
|
1.4 %
|
Transition
costs
|
12
|
|
3
|
|
NM
|
|
50
|
|
3
|
|
NM
|
Other
|
240
|
|
211
|
|
13.7 %
|
|
681
|
|
594
|
|
14.6 %
|
Total operating costs
and expenses (exclusive of items shown separately below)
|
1,600
|
|
1,504
|
|
6.5 %
|
|
4,744
|
|
4,403
|
|
7.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
850
|
|
783
|
|
8.5 %
|
|
2,498
|
|
2,345
|
|
6.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
34.7 %
|
|
34.2 %
|
|
|
|
34.5 %
|
|
34.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
538
|
|
535
|
|
|
|
1,580
|
|
1,568
|
|
|
Stock compensation
expense
|
20
|
|
14
|
|
|
|
58
|
|
41
|
|
|
Other operating
expenses, net
|
19
|
|
16
|
|
|
|
69
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
273
|
|
218
|
|
|
|
791
|
|
694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(353)
|
|
(217)
|
|
|
|
(871)
|
|
(638)
|
|
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
|
|
(128)
|
|
—
|
|
|
Gain (loss) on
derivative instruments, net
|
(5)
|
|
5
|
|
|
|
(10)
|
|
(3)
|
|
|
Other expense,
net
|
(3)
|
|
—
|
|
|
|
(3)
|
|
—
|
|
|
|
(361)
|
|
(212)
|
|
|
|
(1,012)
|
|
(641)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(88)
|
|
6
|
|
|
|
(221)
|
|
53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
142
|
|
(59)
|
|
|
|
72
|
|
(188)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
54
|
|
$
(53)
|
|
|
|
$
(149)
|
|
$
(135)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.48
|
|
$
(0.49)
|
|
|
|
$
(1.33)
|
|
$
(1.26)
|
|
|
Diluted
|
$
0.48
|
|
$
(0.49)
|
|
|
|
$
(1.33)
|
|
$
(1.26)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding, basic
|
111,928,113
|
|
108,792,605
|
|
|
|
111,790,076
|
|
107,744,534
|
|
|
Weighted average common
shares outstanding, and diluted
|
113,339,885
|
|
108,792,605
|
|
|
|
111,790,076
|
|
107,744,534
|
|
|
|
Adjusted EBITDA is a
non-GAAP term. See page 6 of this addendum for the
reconciliation of adjusted EBITDA to net income (loss) as defined
by GAAP.
|
|
All percentages are
calculated using actual amounts. Minor differences may exist due to
rounding. Certain prior year amounts have been reclassified
to conform with the 2015 presentation.
|
|
NM - Not
meaningful
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(dollars in
millions)
|
|
|
September
30,
|
|
December
31,
|
|
2015
|
|
2014
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
—
|
|
$
3
|
Accounts receivable,
net
|
292
|
|
285
|
Prepaid expenses and
other current assets
|
114
|
|
83
|
Total current
assets
|
406
|
|
371
|
|
|
|
|
RESTRICTED CASH AND
CASH EQUIVALENTS
|
19,626
|
|
7,111
|
|
|
|
|
INVESTMENT IN CABLE
PROPERTIES:
|
|
|
|
Property, plant and
equipment, net
|
8,281
|
|
8,373
|
Franchises
|
6,006
|
|
6,006
|
Customer
relationships, net
|
916
|
|
1,105
|
Goodwill
|
1,168
|
|
1,168
|
Total investment in
cable properties, net
|
16,371
|
|
16,652
|
|
|
|
|
OTHER NONCURRENT
ASSETS
|
470
|
|
416
|
|
|
|
|
Total
assets
|
$
36,873
|
|
$
24,550
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
1,829
|
|
$
1,635
|
Total current
liabilities
|
1,829
|
|
1,635
|
|
|
|
|
LONG-TERM
DEBT
|
33,281
|
|
21,023
|
DEFERRED INCOME
TAXES
|
1,616
|
|
1,674
|
OTHER LONG-TERM
LIABILITIES
|
87
|
|
72
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
60
|
|
146
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
36,873
|
|
$
24,550
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(dollars in
millions)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
54
|
|
$ (53)
|
|
$ (149)
|
|
$ (135)
|
Adjustments to
reconcile net income (loss) to net cash flows from operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
538
|
|
535
|
|
1,580
|
|
1,568
|
Stock compensation
expense
|
20
|
|
14
|
|
58
|
|
41
|
Noncash interest
expense
|
6
|
|
9
|
|
21
|
|
29
|
Loss on
extinguishment of debt
|
—
|
|
—
|
|
128
|
|
—
|
(Gain) loss on
derivative instruments, net
|
5
|
|
(5)
|
|
10
|
|
3
|
Deferred income
taxes
|
(142)
|
|
53
|
|
(76)
|
|
177
|
Other, net
|
2
|
|
—
|
|
8
|
|
2
|
Changes in operating
assets and liabilities, net of effects from
acquisitions:
|
|
|
|
|
|
|
|
Accounts
receivable
|
30
|
|
(18)
|
|
(7)
|
|
(36)
|
Prepaid expenses and
other assets
|
1
|
|
(10)
|
|
(19)
|
|
(21)
|
Accounts payable,
accrued liabilities and other
|
175
|
|
(5)
|
|
194
|
|
101
|
Net cash flows from
operating activities
|
689
|
|
520
|
|
1,748
|
|
1,729
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
(509)
|
|
(569)
|
|
(1,292)
|
|
(1,678)
|
Change in accrued
expenses related to capital expenditures
|
28
|
|
(13)
|
|
11
|
|
31
|
Change in restricted
cash and cash equivalents
|
(19,626)
|
|
(3,513)
|
|
(12,515)
|
|
(3,513)
|
Other, net
|
—
|
|
(4)
|
|
(69)
|
|
(5)
|
Net cash flows from
investing activities
|
(20,107)
|
|
(4,099)
|
|
(13,865)
|
|
(5,165)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Borrowings of
long-term debt
|
19,749
|
|
4,284
|
|
23,062
|
|
4,914
|
Repayments of
long-term debt
|
(366)
|
|
(713)
|
|
(10,911)
|
|
(1,514)
|
Payments for debt
issuance costs
|
(10)
|
|
(4)
|
|
(35)
|
|
(4)
|
Purchase of treasury
stock
|
(1)
|
|
(1)
|
|
(24)
|
|
(18)
|
Proceeds from
exercise of options and warrants
|
16
|
|
14
|
|
22
|
|
43
|
Other, net
|
—
|
|
—
|
|
—
|
|
4
|
Net cash flows from
financing activities
|
19,388
|
|
3,580
|
|
12,114
|
|
3,425
|
|
|
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
(30)
|
|
1
|
|
(3)
|
|
(11)
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
30
|
|
9
|
|
3
|
|
21
|
CASH AND CASH
EQUIVALENTS, end of period
|
$
—
|
|
$ 10
|
|
$
—
|
|
$ 10
|
|
|
|
|
|
|
|
|
CASH PAID FOR
INTEREST
|
$ 197
|
|
$ 223
|
|
$ 742
|
|
$ 624
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED SUMMARY
OF OPERATING STATISTICS
|
(in thousands,
except per customer and penetration data)
|
|
|
Approximate as
of
|
|
September 30,
2015 (a)
|
|
June 30,
2015 (a)
|
|
December 31,
2014 (a)
|
|
September 30,
2014 (a)
|
Footprint
(b)
|
|
|
|
|
|
|
|
Estimated Video
Passings
|
13,008
|
|
12,901
|
|
12,890
|
|
12,877
|
Estimated Internet
Passings
|
12,728
|
|
12,614
|
|
12,596
|
|
12,548
|
Estimated Voice
Passings
|
12,252
|
|
12,136
|
|
12,108
|
|
12,043
|
|
|
|
|
|
|
|
|
Penetration
Statistics (c)
|
|
|
|
|
|
|
|
Video Penetration of
Estimated Video Passings
|
32.9 %
|
|
33.2 %
|
|
33.3 %
|
|
33.4 %
|
Internet Penetration
of Estimated Internet Passings
|
42.7 %
|
|
41.3 %
|
|
40.3 %
|
|
39.5 %
|
Voice Penetration of
Estimated Voice Passings
|
22.5 %
|
|
22.0 %
|
|
21.6 %
|
|
21.3 %
|
|
|
|
|
|
|
|
|
Residential
|
|
|
|
|
|
|
|
Residential Customer
Relationships (d)
|
6,058
|
|
5,927
|
|
5,841
|
|
5,768
|
Residential Non-Video
Customers
|
1,926
|
|
1,774
|
|
1,681
|
|
1,611
|
%
Non-Video
|
31.8 %
|
|
29.9 %
|
|
28.8 %
|
|
27.9 %
|
|
|
|
|
|
|
|
|
Residential
Primary Service Units ("PSU")
|
|
|
|
|
|
|
|
Video
|
4,132
|
|
4,153
|
|
4,160
|
|
4,157
|
Internet
|
5,092
|
|
4,891
|
|
4,766
|
|
4,662
|
Voice
|
2,551
|
|
2,481
|
|
2,439
|
|
2,389
|
|
11,775
|
|
11,525
|
|
11,365
|
|
11,208
|
Residential PSU /
Customer Relationships (d)
|
1.94
|
|
1.94
|
|
1.95
|
|
1.94
|
|
|
|
|
|
|
|
|
Quarterly Net
Additions/(Losses)
|
|
|
|
|
|
|
|
Video
|
12
|
|
(7)
|
|
3
|
|
(9)
|
Internet
|
131
|
|
125
|
|
104
|
|
94
|
Voice
|
37
|
|
42
|
|
50
|
|
29
|
|
180
|
|
160
|
|
157
|
|
114
|
|
|
|
|
|
|
|
|
Bulk Digital Upgrade
Net Additions/(Losses) (e)
|
1
|
|
1
|
|
5
|
|
20
|
|
|
|
|
|
|
|
|
Single Play
Penetration (f)
|
38.5 %
|
|
38.3 %
|
|
38.0 %
|
|
38.1 %
|
Double Play
Penetration (f)
|
28.6 %
|
|
28.9 %
|
|
29.1 %
|
|
29.3 %
|
Triple Play
Penetration (f)
|
32.9 %
|
|
32.8 %
|
|
32.8 %
|
|
32.6 %
|
Monthly Residential
Revenue per Residential Customer (d)(g)
|
$ 113.39
|
|
$ 112.25
|
|
$ 111.52
|
|
$ 110.81
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
Commercial Customer
Relationships (d)(h)
|
433
|
|
398
|
|
386
|
|
380
|
|
|
|
|
|
|
|
|
Commercial
PSUs
|
|
|
|
|
|
|
|
Video (h)
|
142
|
|
135
|
|
133
|
|
139
|
Internet
|
349
|
|
317
|
|
306
|
|
294
|
Voice
|
211
|
|
188
|
|
180
|
|
172
|
|
702
|
|
640
|
|
619
|
|
605
|
|
|
|
|
|
|
|
|
Quarterly Net
Additions/(Losses)
|
|
|
|
|
|
|
|
Video (h)
|
4
|
|
2
|
|
(6)
|
|
(15)
|
Internet
|
16
|
|
11
|
|
12
|
|
12
|
Voice
|
11
|
|
8
|
|
8
|
|
8
|
|
31
|
|
21
|
|
14
|
|
5
|
|
All percentages are
calculated using actual amounts. Minor differences may exist due to
rounding.
|
|
See footnotes to
unaudited summary of operating statistics on page 5 of this
addendum.
|
|
|
(a)
|
We calculate the
aging of customer accounts based on the monthly billing cycle for
each account. On that basis, at September 30, 2015, June 30,
2015, December 31, 2014 and September 30, 2014, customers include
approximately 36,800, 39,400, 35,100 and 13,500 customers,
respectively, whose accounts were over 60 days, approximately
1,200, 2,000, 1,500 and 1,200 customers, respectively, whose
accounts were over 90 days and approximately 800, 900, 900 and 800
customers, respectively, whose accounts were over 120 days.
The increase in aging of customer accounts over 60 days is
primarily related to a third quarter 2014 change in our collections
policy consistent with broader cable industry practices.
|
|
|
(b)
|
Passings represent
our estimate of the number of units, such as single family homes,
apartment and condominium units and commercial establishments
passed by our cable distribution network in the areas where we
offer the service indicated. These estimates are updated for
all periods presented based upon the information available at that
time.
|
|
|
(c)
|
Penetration
represents residential and commercial customers as a percentage of
estimated passings for the service indicated.
|
|
|
(d)
|
Customer
relationships include the number of customers that receive one or
more levels of service, encompassing video, Internet and voice
services, without regard to which service(s) such customers
receive. Commercial customer relationships include video
customers in commercial structures, which are calculated on an EBU
basis (see footnote (h)) and non-video commercial customer
relationships.
|
|
|
(e)
|
Bulk digital upgrade
net additions/(losses) represents the portion of residential video
net additions (losses) that result from the addition or loss of a
digital set-top box to a bulk unit.
|
|
|
(f)
|
Single play, double
play and triple play customers represent customers that subscribe
to one, two or three of Charter service offerings,
respectively.
|
|
|
(g)
|
Monthly residential
revenue per residential customer is calculated as total residential
video, Internet and voice quarterly revenue divided by three
divided by average residential customer relationships during the
respective quarter.
|
|
|
(h)
|
Included within
commercial video customers are those in commercial structures,
which are calculated on an equivalent bulk unit ("EBU")
basis. We calculate EBUs by dividing the bulk price charged
to accounts in an area by the published rate charged to non-bulk
residential customers in that market for the comparable tier of
service. This EBU method of estimating video customers is
consistent with the methodology used in determining costs paid to
programmers and is consistent with the methodology used by other
multiple system operators. As we increase our published video
rates to residential customers without a corresponding increase in
the prices charged to commercial service customers, our EBU count
will decline even if there is no real loss in commercial service
customers.
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED
RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
|
(dollars in
millions)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$ 54
|
|
$
(53)
|
|
$ (149)
|
|
$ (135)
|
Plus: Interest
expense, net
|
353
|
|
217
|
|
871
|
|
638
|
Income tax (benefit)
expense
|
(142)
|
|
59
|
|
(72)
|
|
188
|
Depreciation and
amortization
|
538
|
|
535
|
|
1,580
|
|
1,568
|
Stock compensation
expense
|
20
|
|
14
|
|
58
|
|
41
|
Loss on
extinguishment of debt
|
—
|
|
—
|
|
128
|
|
—
|
(Gain) loss on
derivative instruments, net
|
5
|
|
(5)
|
|
10
|
|
3
|
Other, net
|
22
|
|
16
|
|
72
|
|
42
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(a)
|
850
|
|
783
|
|
2,498
|
|
2,345
|
Less: Purchases
of property, plant and equipment
|
(509)
|
|
(569)
|
|
(1,292)
|
|
(1,678)
|
|
|
|
|
|
|
|
|
Adjusted EBITDA less
capital expenditures
|
$ 341
|
|
$
214
|
|
$ 1,206
|
|
$ 667
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$ 689
|
|
$
520
|
|
$ 1,748
|
|
$ 1,729
|
Less: Purchases
of property, plant and equipment
|
(509)
|
|
(569)
|
|
(1,292)
|
|
(1,678)
|
Change in accrued
expenses related to capital expenditures
|
28
|
|
(13)
|
|
11
|
|
31
|
|
|
|
|
|
|
|
|
Free cash
flow
|
$ 208
|
|
$
(62)
|
|
$ 467
|
|
$ 82
|
|
(a) See page 1 of
this addendum for detail of the components included within adjusted
EBITDA.
|
|
The above schedules
are presented in order to reconcile adjusted EBITDA and free cash
flows, both non-GAAP measures, to the most directly comparable GAAP
measures in accordance with Section 401(b) of the Sarbanes-Oxley
Act.
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
CAPITAL
EXPENDITURES
|
(dollars in
millions)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Customer premise
equipment (a)
|
$ 163
|
|
$ 282
|
|
$ 448
|
|
$ 908
|
Scalable
infrastructure (b)
|
142
|
|
113
|
|
335
|
|
307
|
Line extensions
(c)
|
57
|
|
50
|
|
144
|
|
131
|
Upgrade/Rebuild
(d)
|
38
|
|
47
|
|
94
|
|
131
|
Support capital
(e)
|
109
|
|
77
|
|
271
|
|
201
|
|
|
|
|
|
|
|
|
Total capital expenditures (f)
|
$ 509
|
|
$ 569
|
|
$ 1,292
|
|
$ 1,678
|
|
|
(a)
|
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).
|
|
|
(b)
|
Scalable
infrastructure includes costs, not related to customer premise
equipment, to secure growth of new customers and revenue generating
units, or provide service enhancements (e.g., headend
equipment).
|
|
|
(c)
|
Line extensions
include network costs associated with entering new service areas
(e.g., fiber/coaxial cable, amplifiers, electronic equipment,
make-ready and design engineering).
|
|
|
(d)
|
Upgrade/rebuild
includes costs to modify or replace existing fiber/coaxial cable
networks, including betterments.
|
|
|
(e)
|
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).
|
|
|
(f)
|
Total capital
expenditures for the three and nine months ended September 30,
2015 include $24 million and $66 million related to the TWC
Transaction, Bright House Transaction and Comcast
Transactions. Total capital expenditures include $115 million
and $368 million for the three and nine months ended
September 30, 2014, respectively, related to our all-digital
transition. Total capital expenditures also include $70
million and $186 million for the three and nine months ended
September 30, 2015, respectively, and $62 million and $184
million for the three and nine months ended September 30,
2014, respectively, related to commercial
services.
|
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SOURCE Charter Communications, Inc.