STAMFORD, Conn., Jan. 28, 2022 /PRNewswire/ -- Charter
Communications, Inc. (along with its subsidiaries, the "Company" or
"Charter") today reported financial and operating results for the
three and twelve months ended December 31, 2021.
Key highlights:
- Fourth quarter total residential and small and medium business
("SMB") customer relationships increased by 120,000. As of
December 31, 2021, Charter served a
total of 32.1 million residential and SMB customers, with 939,000
net new customer relationships added in 2021.
- Fourth quarter total residential and SMB Internet customers
increased by 190,000. As of December 31,
2021, Charter served a total of 30.1 million residential and
SMB Internet customers, with 1.2 million total Internet customers
added in 2021.
- Fourth quarter total residential and SMB mobile lines increased
by 380,000. As of December 31, 2021,
Charter served a total of 3.6 million mobile lines, with 1.2
million mobile lines added in 2021.
- Fourth quarter revenue of $13.2
billion grew by 4.7% year-over-year, driven by residential
revenue growth of 5.1%, mobile revenue growth of 47.5% and
commercial revenue growth of 4.8%, partly offset by a decline in
advertising sales revenue of 28.2%, driven by lower political
revenue.
- Fourth quarter Adjusted EBITDA1 of $5.4 billion grew by 7.7% year-over-year.
- For the year ended December 31,
2021, revenue of $51.7 billion
grew by 7.5% year-over-year. Full year 2021 Adjusted EBITDA totaled
$20.6 billion, 11.4% higher than in
2020.
- Net income attributable to Charter shareholders totaled
$1.6 billion in the fourth quarter.
For the year ended December 31, 2021,
net income attributable to Charter shareholders totaled
$4.7 billion.
- Fourth quarter capital expenditures totaled $2.1 billion and included $127 million of mobile-related capital
expenditures. For the year ended December
31, 2021, capital expenditures totaled $7.6 billion and included $482 million of mobile-related capital
expenditures.
- Full year 2021 free cash flow1 totaled $8.7 billion, compared to $7.1 billion in 2020.
- During the fourth quarter, Charter purchased 7.6 million shares
of Charter Class A common stock and Charter Communications
Holdings, LLC ("Charter Holdings") common units for approximately
$5.3 billion. For the year ended
December 31, 2021, Charter purchased
25.3 million shares of Charter Class A common stock and Charter
Holdings common units for approximately $17.3 billion.
"We continued to execute well in 2021, with solid customer
growth and strong financial growth. We added over 1.2 million
Internet customers and we grew full year revenue and EBITDA by 7.5%
and 11.4%, respectively," said Tom
Rutledge, Chairman & CEO of Charter. "In 2022, we remain
focused on driving additional customer growth by offering better
services while saving customers money on their total communications
spend, driving EBITDA growth, free cash flow growth and shareholder
value."
1.
|
Adjusted EBITDA and
free cash flow are non-GAAP measures defined in the "Use of
Adjusted EBITDA and Free Cash Flow Information" section and are
reconciled to net income attributable to Charter shareholders and
net cash flows from operating activities, respectively, in the
addendum of this news release.
|
Key Operating Results
|
|
Approximate as
of
|
|
|
December 31,
2021 (a)
|
|
December 31,
2020 (a)
|
|
December 31,
2019 (a)
|
Footprint
(b)
|
|
|
|
|
|
|
Estimated
Passings
|
|
54,521
|
|
53,416
|
|
52,270
|
|
|
|
|
|
|
|
Customer
Relationships (c)
|
|
|
|
|
|
|
Residential
|
|
29,926
|
|
29,079
|
|
27,277
|
SMB
|
|
2,143
|
|
2,051
|
|
1,958
|
Total
Customer Relationships
|
|
32,069
|
|
31,130
|
|
29,235
|
|
|
|
|
|
|
|
Residential
|
|
103
|
|
167
|
|
240
|
SMB
|
|
17
|
|
30
|
|
28
|
Total
Customer Relationships Quarterly Net Additions
|
|
120
|
|
197
|
|
268
|
|
|
|
|
|
|
|
Total Customer
Relationship Penetration of Estimated Passings (d)
|
|
58.8 %
|
|
58.3 %
|
|
55.9 %
|
|
|
|
|
|
|
|
Monthly Residential
Revenue per Residential Customer (e)
|
|
$
114.14
|
|
$
111.85
|
|
$
113.79
|
Monthly SMB Revenue
per SMB Customer (f)
|
|
$
164.59
|
|
$
163.02
|
|
$
169.06
|
|
|
|
|
|
|
|
Residential
Customer Relationships Penetration
|
|
|
|
|
|
|
Single Play
Penetration (g)
|
|
46.7 %
|
|
44.5 %
|
|
43.0 %
|
Double Play
Penetration (g)
|
|
33.0 %
|
|
32.7 %
|
|
30.7 %
|
Triple Play
Penetration (g)
|
|
20.4 %
|
|
22.9 %
|
|
26.2 %
|
|
|
|
|
|
|
|
% Residential
Non-Video Customer Relationships
|
|
49.2 %
|
|
46.2 %
|
|
42.7 %
|
|
|
|
|
|
|
|
Internet
|
|
|
|
|
|
|
Residential
|
|
28,137
|
|
27,023
|
|
24,908
|
SMB
|
|
1,952
|
|
1,856
|
|
1,756
|
Total
Internet Customers
|
|
30,089
|
|
28,879
|
|
26,664
|
|
|
|
|
|
|
|
Residential
|
|
172
|
|
216
|
|
313
|
SMB
|
|
18
|
|
30
|
|
26
|
Total
Internet Quarterly Net Additions
|
|
190
|
|
246
|
|
339
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
Residential
|
|
15,216
|
|
15,639
|
|
15,620
|
SMB
|
|
617
|
|
561
|
|
524
|
Total
Video Customers
|
|
15,833
|
|
16,200
|
|
16,144
|
|
|
|
|
|
|
|
Residential
|
|
(71)
|
|
(66)
|
|
(105)
|
SMB
|
|
13
|
|
31
|
|
4
|
Total
Video Quarterly Net Additions
|
|
(58)
|
|
(35)
|
|
(101)
|
|
|
|
|
|
|
|
Voice
|
|
|
|
|
|
|
Residential
|
|
8,621
|
|
9,215
|
|
9,443
|
SMB
|
|
1,282
|
|
1,224
|
|
1,144
|
Total
Voice Customers
|
|
9,903
|
|
10,439
|
|
10,587
|
|
|
|
|
|
|
|
Residential
|
|
(163)
|
|
(120)
|
|
(152)
|
SMB
|
|
9
|
|
17
|
|
24
|
Total
Voice Quarterly Net Additions
|
|
(154)
|
|
(103)
|
|
(128)
|
|
|
|
|
|
|
|
Mobile Lines
(h)
|
|
|
|
|
|
|
Residential
|
|
3,448
|
|
2,320
|
|
1,078
|
SMB
|
|
116
|
|
55
|
|
4
|
Total Mobile
Lines
|
|
3,564
|
|
2,375
|
|
1,082
|
|
|
|
|
|
|
|
Residential
|
|
363
|
|
300
|
|
285
|
SMB
|
|
17
|
|
15
|
|
3
|
Total
Mobile Lines Quarterly Net Additions
|
|
380
|
|
315
|
|
288
|
|
|
|
|
|
|
|
Enterprise
(i)
|
|
|
|
|
|
|
Enterprise Primary
Service Units ("PSUs")
|
|
272
|
|
259
|
|
252
|
Enterprise Quarterly
Net Additions
|
|
3
|
|
2
|
|
3
|
|
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. All
percentages are calculated using whole numbers. Minor differences
may exist due to rounding.
|
During the fourth quarter of 2021, Charter's residential
customer relationships grew by 103,000, compared to growth of
167,000 in the fourth quarter of 2020 and 240,000 in the fourth
quarter of 2019. As of December 31, 2021, Charter had
29.9 million residential customer relationships, with
year-over-year growth of 2.9%.
Charter added 172,000 residential Internet customers during the
fourth quarter of 2021, compared to 216,000 during the fourth
quarter of 2020 and 313,000 during the fourth quarter of 2019.
Currently, 200 Mbps is the minimum speed offered to new Spectrum
Internet® customers in 85% of Charter's footprint.
As of December 31, 2021, nearly 75% of total Internet
customers subscribed to tiers that provided 200 Mbps or more of
speed. Charter also offers Spectrum Internet Gig across its
entire footprint. Charter's Advanced Home WiFi, a managed WiFi
service that provides customers an optimized home network while
providing greater control of their connected devices, is available
to nearly all Spectrum Internet customers. In addition,
Charter's WiFi 6 router offers lower latency and performs better in
environments with many connected WiFi devices, and has the ability
to offer speeds of well over 1 Gbps.
Residential video customers decreased by 71,000 in the fourth
quarter of 2021, compared to declines of 66,000 in the fourth
quarter of 2020 and 105,000 in the fourth quarter of 2019. As of
December 31, 2021, Charter had 15.2 million residential
video customers.
During the fourth quarter of 2021, residential wireline voice
customers declined by 163,000, compared to declines of 120,000 in
the fourth quarter of 2020 and 152,000 in the fourth quarter of
2019. As of December 31, 2021, Charter had 8.6 million
residential wireline voice customers.
Fourth quarter 2021 residential revenue per residential customer
(excluding mobile) totaled $114.14,
and increased by 2.0% compared to the prior year period, given
promotional rate step-ups, video rate adjustments that pass through
programmer rate increases, and $22
million of COVID-related impacts in the prior year period,
partly offset by a higher mix of non-video customer relationships,
a higher mix of lower priced video packages within Charter's video
customer base and $31 million of
sports network credits recorded in the current year period to be
provided to qualified video customers given fewer sporting events
being broadcast during COVID-19.
SMB customer relationships grew by 17,000 in the fourth quarter
of 2021, while fourth quarter 2020 and 2019 SMB customer
relationships grew by 30,000 and 28,000, respectively. During the
fourth quarter of 2021, enterprise PSUs grew by 3,000, compared to
growth of 2,000 in the fourth quarter of 2020 and 3,000 in the
fourth quarter of 2019.
During the fourth quarter of 2021, Charter added 380,000 mobile
lines, compared to growth of 315,000 during the fourth quarter of
2020 and 288,000 during the fourth quarter of 2019. Spectrum
MobileTM is available to all new and
existing Spectrum Internet customers. Spectrum Mobile
customers can choose "Unlimited" or "By the Gig" data plans. In
October 2021, Spectrum Mobile
introduced new Unlimited pricing starting at $29.99/month per Unlimited line for customers
with at least two lines. Additionally, customers qualify for the
new multiline pricing when combining By the Gig lines for
$14/GB with Unlimited lines. All
Spectrum Mobile plans include 5G access, with taxes and fees
included and no contracts. Spectrum Mobile's new Unlimited
pricing is part of Charter's converged network strategy to provide
consumers a differentiated connectivity experience with highly
competitive, simple data plans and pricing.
Fourth 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
December 31,
|
|
2021
|
|
2020
|
|
%
Change
|
REVENUES:
|
|
|
|
|
|
Internet
|
$ 5,424
|
|
$ 4,862
|
|
11.6 %
|
Video
|
4,406
|
|
4,418
|
|
(0.3) %
|
Voice
|
396
|
|
449
|
|
(11.9) %
|
Residential
revenue
|
10,226
|
|
9,729
|
|
5.1 %
|
Small and medium
business
|
1,054
|
|
997
|
|
5.8 %
|
Enterprise
|
643
|
|
623
|
|
3.2 %
|
Commercial
revenue
|
1,697
|
|
1,620
|
|
4.8 %
|
Advertising
sales
|
448
|
|
625
|
|
(28.2) %
|
Mobile
|
632
|
|
428
|
|
47.5 %
|
Other
|
209
|
|
222
|
|
(6.2) %
|
Total
Revenue
|
13,212
|
|
12,624
|
|
4.7 %
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
Total operating costs
and expenses
|
7,833
|
|
7,630
|
|
2.7 %
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 5,379
|
|
$ 4,994
|
|
7.7 %
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
40.7
%
|
|
39.6
%
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
$ 2,072
|
|
$ 2,063
|
|
|
% Total
Revenue
|
15.7 %
|
|
16.3 %
|
|
|
|
|
|
|
|
|
Net income
attributable to Charter shareholders
|
$ 1,610
|
|
$ 1,246
|
|
|
Earnings per common
share attributable to Charter shareholders:
|
|
|
|
|
|
Basic
|
$ 9.17
|
|
$ 6.33
|
|
|
Diluted
|
$ 8.93
|
|
$ 6.05
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$ 4,226
|
|
$ 4,149
|
|
|
Free cash
flow
|
$ 2,285
|
|
$ 2,079
|
|
|
Revenues
Fourth quarter revenue increased by 4.7% year-over-year to
$13.2 billion, driven primarily by
growth in residential, mobile and commercial revenues. Excluding
advertising, which benefited from political spend in the fourth
quarter of 2020, revenue grew by 6.4% year-over-year.
Residential revenue totaled $10.2
billion in the fourth quarter, an increase of 5.1%
year-over-year. The year-over-year revenue growth rate was
negatively impacted by $31 million of
sports network credits recorded in the current year period and
positively impacted by $22 million of
COVID-related impacts in the prior year period.
Internet revenue grew by 11.6% year-over-year to $5.4 billion, driven by growth in Internet
customers during the last year, promotional rate step-ups, reduced
bundled discounts and higher bundled revenue allocation.
Video revenue totaled $4.4 billion
in the fourth quarter, a decrease of 0.3% compared to the prior
year period, driven by a higher mix of lower priced video packages
within Charter's video customer base, a decline in video customers
during the last year, the aforementioned $31
million of sports network credits recorded in the current
year period and lower bundled revenue allocation, partly offset by
promotional rate step-ups, video rate adjustments that pass through
programmer rate increases and the aforementioned COVID-related
impacts in the prior year period.
Voice revenue totaled $396 million
in the fourth quarter, a decrease of 11.9% compared to the fourth
quarter of 2020, driven by a decline in wireline voice customers
over the last twelve months and value-based pricing.
Commercial revenue increased by 4.8% year-over-year to
$1.7 billion, driven by SMB and
enterprise revenue growth of 5.8% and 3.2% year-over-year,
respectively. Fourth quarter 2021 SMB revenue growth benefited from
COVID-related impacts in the fourth quarter of 2020. Enterprise
revenue excluding wholesale increased by 6.1% year-over-year,
reflecting PSU growth.
Fourth quarter advertising sales revenue of $448 million decreased by 28.2% compared to the
year-ago quarter, driven by lower political revenue. Compared to
the fourth quarter of 2019, advertising sales revenue increased by
3.3%, primarily due to higher advanced advertising revenue, partly
offset by lower local revenue, particularly in the automotive
category.
Fourth quarter mobile revenue totaled $632 million, an increase of 47.5%
year-over-year, primarily driven by mobile line growth.
Operating Costs and Expenses
Fourth quarter total operating costs and expenses increased by
$203 million, or 2.7%
year-over-year.
Fourth quarter programming costs decreased by $14 million, or 0.5% as compared to the fourth
quarter of 2020, reflecting fewer video customers and a higher mix
of lower cost packages within Charter's video customer base,
$31 million of sports network rebates
in the fourth quarter of 2021 that resulted from fewer sporting
events being broadcast during COVID-19 and $19 million of other favorable adjustments,
partly offset by contractual programming increases and
renewals.
Regulatory, connectivity and produced content expenses increased
by $60 million, or 11.3%
year-over-year, primarily driven by higher sports rights costs
given more games played in the fourth quarter of 2021 compared to
the fourth quarter of 2020 as a result of COVID-19, partly offset
by lower original programming costs and regulatory and franchise
fees.
Costs to service customers decreased by $11 million, or 0.5% year-over-year, despite
year-over-year residential and SMB customer growth of 3.0%. The
year-over-year decrease in costs to service customers was primarily
driven by lower transaction costs, mostly offset by previously
announced wage increases for hourly field operations and call
center employees as Charter meets its commitment to a minimum
$20 per hour wage in 2022.
Marketing expenses increased by $33
million, or 4.3% year-over-year.
Fourth quarter mobile costs totaled $724
million, an increase of 38.5% year-over-year, and were
comprised of device costs, customer acquisition costs, and service
and operating costs.
Other expenses decreased by $67
million, or 6.5% as compared to the fourth quarter of 2020,
primarily driven by lower advertising sales expense and a one-time
corporate cost in the prior year period.
Adjusted EBITDA
Fourth quarter Adjusted EBITDA of $5.4
billion grew by 7.7% year-over-year, reflecting growth
in revenue and operating expenses of 4.7% and 2.7%,
respectively.
Net Income Attributable to Charter Shareholders
Net income attributable to Charter shareholders totaled
$1.6 billion in the fourth quarter of
2021, compared to $1.2
billion in the fourth quarter of 2020. The year-over-year
increase in net income attributable to Charter shareholders was
primarily driven by higher Adjusted EBITDA.
Net income per basic common share attributable to Charter
shareholders totaled $9.17 in the
fourth quarter of 2021 compared to $6.33 during the same period last year. The
increase was primarily the result of the factors described above in
addition to a 10.8% decrease in basic weighted average common
shares outstanding versus the prior year period.
Capital Expenditures
Property, plant and equipment expenditures totaled $2.1 billion in the fourth quarter of 2021,
consistent with the fourth quarter of 2020, with an increase in
upgrade/rebuild spending offset by declines in scalable
infrastructure and customer premise equipment ("CPE"). The increase
in upgrade/rebuild was driven by plant replacement of storm-damaged
areas. The decrease in scalable infrastructure spending was
primarily related to a stabilized level of network traffic growth
and investments made earlier in the year. The decrease in CPE was
driven by lower video CPE spend. Fourth quarter capital
expenditures included $127 million of
mobile costs, most of which related to retail stores and
information technology systems, and were included in support
capital.
Cash Flow and Free Cash Flow
During the fourth quarter of 2021, net cash flows from operating
activities totaled $4.2 billion,
compared to $4.1 billion in the prior
year quarter. The year-over-year increase in net cash flows from
operating activities was primarily due to higher Adjusted EBITDA,
partly offset by higher cash paid for interest, net and an
unfavorable change in trade working capital.
Free cash flow in the fourth quarter of 2021 totaled
$2.3 billion, compared to
$2.1 billion during the same period
last year. The year-over-year increase in free cash flow was
primarily driven by an increase in net cash flows from operating
activities and a benefit related to changes in accrued expenses
related to capital expenditures.
Liquidity & Financing
As of December 31, 2021, total principal amount of debt was
$91.2 billion and Charter's credit
facilities provided approximately $3.9
billion of additional liquidity in excess of Charter's
$601 million cash position.
In October 2021, Charter
Communications Operating, LLC and Charter Communications Operating
Capital Corp. jointly issued $1.25
billion of 2.250% senior secured notes due 2029 at 99.835%
of the aggregate principal amount, $1.35
billion of 3.500% senior secured notes due 2042 at 99.253%
of the aggregate principal amount and $1.4
billion of 3.950% senior secured notes due 2062 at 99.186%
of the aggregate principal amount. Net proceeds were used to pay
related fees and expenses and for general corporate purposes,
including funding buybacks of Charter Class A common stock and
Charter Holdings common units as well as repaying certain
indebtedness.
In January 2022, CCO Holdings, LLC
and CCO Holdings Capital Corp. jointly issued $1.2 billion of 4.750% senior unsecured notes due
2032 at par. Net proceeds were used for general corporate purposes,
including to fund buybacks of Charter Class A common stock and
Charter Holdings common units, to repay certain indebtedness and to
pay related fees and expenses.
Share Repurchases
During the three months ended December 31, 2021, Charter
purchased 7.6 million shares of Charter Class A common stock and
Charter Holdings common units for approximately $5.3 billion.
Full Year Financial Results
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS AND OPERATING DATA
|
(dollars in
millions, except per share data)
|
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
%
Change
|
REVENUES:
|
|
|
|
|
|
Internet
|
$ 21,094
|
|
$ 18,521
|
|
13.9 %
|
Video
|
17,630
|
|
17,432
|
|
1.1 %
|
Voice
|
1,598
|
|
1,806
|
|
(11.5) %
|
Residential
revenue
|
40,322
|
|
37,759
|
|
6.8 %
|
Small and medium
business
|
4,170
|
|
3,964
|
|
5.2 %
|
Enterprise
|
2,573
|
|
2,468
|
|
4.3 %
|
Commercial
revenue
|
6,743
|
|
6,432
|
|
4.9 %
|
Advertising
sales
|
1,594
|
|
1,699
|
|
(6.2) %
|
Mobile
|
2,178
|
|
1,364
|
|
59.6 %
|
Other
|
845
|
|
843
|
|
0.2 %
|
Total
Revenue
|
51,682
|
|
48,097
|
|
7.5 %
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
Total operating costs
and expenses
|
31,052
|
|
29,579
|
|
5.0 %
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 20,630
|
|
$ 18,518
|
|
11.4 %
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
39.9
%
|
|
38.5
%
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
$ 7,635
|
|
$ 7,415
|
|
|
% Total
Revenue
|
14.8 %
|
|
15.4 %
|
|
|
|
|
|
|
|
|
Net income
attributable to Charter shareholders
|
$ 4,654
|
|
$ 3,222
|
|
|
Earnings per common
share attributable to Charter shareholders:
|
|
|
|
|
|
Basic
|
$ 25.34
|
|
$ 15.85
|
|
|
Diluted
|
$ 24.47
|
|
$ 15.40
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$ 16,239
|
|
$ 14,562
|
|
|
Free cash
flow
|
$ 8,684
|
|
$ 7,070
|
|
|
Revenues
For the year ended December 31, 2021, revenues increased to
$51.7 billion, 7.5% higher than in
2020, driven primarily by growth in residential, mobile and
commercial revenues.
Operating Costs and Expenses
Operating costs and expenses totaled $31.1 billion in 2021, an increase of
$1.5 billion, or 5.0% compared to the
prior year ended December 31, 2020, primarily driven by
increases in mobile, programming and regulatory, connectivity and
produced content expenses.
Adjusted EBITDA
Adjusted EBITDA totaled $20.6
billion for the year ended December 31, 2021, an
increase of 11.4% compared to 2020, reflecting growth in
revenue and operating expenses of 7.5% and 5.0%,
respectively.
Net Income Attributable to Charter Shareholders
Net income attributable to Charter shareholders totaled
$4.7 billion for the year ended
December 31, 2021, compared to $3.2 billion in 2020. The year-over-year
increase in net income attributable to Charter shareholders was
primarily driven by higher Adjusted EBITDA, partly offset by higher
other operating expenses, net and higher tax expense.
Net income per basic common share attributable to Charter
shareholders totaled $25.34 for the
year ended December 31, 2021, compared to $15.85 during the same period last year. The
increase was primarily the result of the factors described above in
addition to a 9.7% decrease in weighted average common shares
outstanding versus the prior year period.
Capital Expenditures
Capital expenditures totaled $7.6
billion for the year ended December 31, 2021, compared
to $7.4 billion in 2020. The increase
was primarily driven by increases in scalable infrastructure and
upgrade/rebuild, partly offset by declines in support capital and
CPE. For the full year 2021, mobile capital expenditures totaled
$482 million versus $508 million for the full year 2020.
Charter currently expects full year 2022 cable capital
expenditures, excluding capital expenditures associated with its
rural construction initiative, to be between $7.1 billion and $7.3
billion.
Cash Flow and Free Cash Flow
For the year ended December 31, 2021, net cash flows from
operating activities totaled $16.2
billion, compared to $14.6
billion in 2020. The year-over-year increase in net cash
flows from operating activities was primarily due to higher
Adjusted EBITDA, partly offset by an unfavorable change in trade
working capital and higher cash paid for interest, net.
Free cash flow for the year ended December 31, 2021 was
$8.7 billion, compared to
$7.1 billion during the same period
last year. The year-over-year increase in free cash flow was driven
by an increase in net cash flows from operating activities, partly
offset by higher capital expenditures.
Share Repurchases
For the year ended December 31, 2021, Charter purchased
approximately 25.3 million shares of Charter Class A common stock
and Charter Holdings common units for approximately $17.3 billion.
Webcast
Charter will host a webcast on Friday, January 28, 2022 at
8:30 a.m. Eastern Time (ET) related
to the contents of this release.
The webcast can be accessed live via the Company's investor
relations website at ir.charter.com. Participants should go to the
webcast link no later than 10 minutes prior to the start time to
register. The webcast will be archived at ir.charter.com two
hours after completion of the webcast.
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 Annual Report on Form 10-K for the year ended
December 31, 2021, which will be posted on the "Results &
SEC Filings" section of the Company's investor relations website at
ir.charter.com, when it is filed with the Securities and Exchange
Commission (the "SEC"). A slide presentation to accompany the
conference call and a trending schedule containing historical
customer and financial data will also be available in the "Results
& SEC Filings" section.
Use of Adjusted EBITDA and Free Cash Flow
Information
The company uses certain measures that are not defined by U.S.
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 income attributable to
Charter shareholders and net 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 and free cash flow are reconciled
to net income attributable to Charter shareholders and net cash
flows from operating activities, respectively, in the Addendum to
this release.
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, other income (expenses),
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 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 capital expenditures and changes in accrued
expenses related to capital expenditures.
Management and Charter'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 facilities and notes
(all such documents have been previously filed with the SEC). For
the purpose of calculating compliance with leverage covenants, the
Company uses Adjusted EBITDA, as presented, excluding certain
expenses paid by its operating subsidiaries to other Charter
entities. The Company's debt covenants refer to these expenses as
management fees, which were $352
million and $384 million for
the three months ended December 31, 2021 and 2020,
respectively, and $1.3 billion for
each of the years ended December 31, 2021 and 2020.
About Charter
Charter Communications, Inc. (NASDAQ:CHTR) is a leading
broadband connectivity company and cable operator serving more than
32 million customers in 41 states through its Spectrum brand. Over
an advanced communications network, the Company offers a full range
of state-of-the-art residential and business services including
Spectrum Internet®, TV, Mobile and Voice.
For small and medium-sized companies, Spectrum
Business® delivers the same suite of broadband products
and services coupled with special features and applications to
enhance productivity, while for larger businesses and government
entities, Spectrum Enterprise provides highly customized,
fiber-based solutions. Spectrum Reach® delivers tailored
advertising and production for the modern media landscape. The
company also distributes award-winning news coverage, sports and
high-quality original programming to its customers through Spectrum
Networks and Spectrum Originals. More information about Charter can
be found at corporate.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 as
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," "initiatives," "seek," "would," "could,"
"continue," "ongoing," "upside," "increases," "grow," "focused on"
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, and in other reports or documents that
we file from time to time with the SEC, and include, but are not
limited to:
- our ability to sustain and grow revenues and cash flow from
operations by offering Internet, video, voice, mobile, advertising
and other services to residential and commercial customers, to
adequately meet the customer experience demands in our service
areas 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 ("DBS") operators, wireless broadband and
telephone providers, digital subscriber line ("DSL") providers,
fiber to the home providers and providers of video content over
broadband Internet connections;
- general business conditions, unemployment levels and the level
of activity in the housing sector and economic uncertainty or
downturn, including the impacts of the Novel Coronavirus
("COVID-19") pandemic to sales opportunities from residential move
activity, our customers, our vendors and local, state and federal
governmental responses to the pandemic;
- 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 and
distribution requirements);
- our ability to develop and deploy new products and technologies
including consumer services and service platforms;
- any events that disrupt our networks, information systems or
properties and impair our operating activities or our
reputation;
- the effects of governmental regulation on our business
including subsidies to consumers, subsidies and incentives for
competitors, costs, disruptions and possible limitations on
operating flexibility related to, and our ability to comply with,
regulatory conditions applicable to us;
- the ability to hire and retain key personnel;
- our ability to procure necessary services and equipment from
our vendors in a timely manner and at reasonable costs;
- 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 communication.
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS AND OPERATING DATA
|
(dollars in
millions, except per share data)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
%
Change
|
|
2021
|
|
2020
|
|
%
Change
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
Internet
|
$ 5,424
|
|
$ 4,862
|
|
11.6 %
|
|
$ 21,094
|
|
$ 18,521
|
|
13.9 %
|
Video
|
4,406
|
|
4,418
|
|
(0.3) %
|
|
17,630
|
|
17,432
|
|
1.1 %
|
Voice
|
396
|
|
449
|
|
(11.9) %
|
|
1,598
|
|
1,806
|
|
(11.5) %
|
Residential revenue
|
10,226
|
|
9,729
|
|
5.1 %
|
|
40,322
|
|
37,759
|
|
6.8 %
|
Small and medium
business
|
1,054
|
|
997
|
|
5.8 %
|
|
4,170
|
|
3,964
|
|
5.2 %
|
Enterprise
|
643
|
|
623
|
|
3.2 %
|
|
2,573
|
|
2,468
|
|
4.3 %
|
Commercial revenue
|
1,697
|
|
1,620
|
|
4.8 %
|
|
6,743
|
|
6,432
|
|
4.9 %
|
Advertising
sales
|
448
|
|
625
|
|
(28.2) %
|
|
1,594
|
|
1,699
|
|
(6.2) %
|
Mobile
|
632
|
|
428
|
|
47.5 %
|
|
2,178
|
|
1,364
|
|
59.6 %
|
Other
|
209
|
|
222
|
|
(6.2) %
|
|
845
|
|
843
|
|
0.2 %
|
Total
Revenue
|
13,212
|
|
12,624
|
|
4.7 %
|
|
51,682
|
|
48,097
|
|
7.5 %
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Programming
|
2,895
|
|
2,909
|
|
(0.5) %
|
|
11,844
|
|
11,401
|
|
3.9 %
|
Regulatory,
connectivity and produced content
|
592
|
|
532
|
|
11.3 %
|
|
2,494
|
|
2,183
|
|
14.2 %
|
Costs to service
customers
|
1,863
|
|
1,874
|
|
(0.5) %
|
|
7,393
|
|
7,472
|
|
(1.1) %
|
Marketing
|
791
|
|
758
|
|
4.3 %
|
|
3,071
|
|
3,031
|
|
1.3 %
|
Mobile
|
724
|
|
522
|
|
38.5 %
|
|
2,489
|
|
1,765
|
|
41.0 %
|
Other
expense
|
968
|
|
1,035
|
|
(6.5) %
|
|
3,761
|
|
3,727
|
|
0.9 %
|
Total
operating costs and expenses (exclusive of items
shown separately below)
|
7,833
|
|
7,630
|
|
2.7 %
|
|
31,052
|
|
29,579
|
|
5.0 %
|
Adjusted
EBITDA
|
5,379
|
|
4,994
|
|
7.7 %
|
|
20,630
|
|
18,518
|
|
11.4 %
|
Adjusted
EBITDA margin
|
40.7
%
|
|
39.6
%
|
|
|
|
39.9
%
|
|
38.5
%
|
|
|
Depreciation and
amortization
|
2,280
|
|
2,409
|
|
|
|
9,345
|
|
9,704
|
|
|
Stock compensation
expense
|
98
|
|
88
|
|
|
|
430
|
|
351
|
|
|
Other operating
expenses, net
|
45
|
|
35
|
|
|
|
329
|
|
58
|
|
|
Income
from operations
|
2,956
|
|
2,462
|
|
|
|
10,526
|
|
8,405
|
|
|
OTHER INCOME
(EXPENSES):
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
(1,034)
|
|
(965)
|
|
|
|
(4,037)
|
|
(3,848)
|
|
|
Other income
(expenses), net
|
136
|
|
158
|
|
|
|
(101)
|
|
(255)
|
|
|
|
(898)
|
|
(807)
|
|
|
|
(4,138)
|
|
(4,103)
|
|
|
Income before income
taxes
|
2,058
|
|
1,655
|
|
|
|
6,388
|
|
4,302
|
|
|
Income
tax expense
|
(224)
|
|
(254)
|
|
|
|
(1,068)
|
|
(626)
|
|
|
Consolidated net
income
|
1,834
|
|
1,401
|
|
|
|
5,320
|
|
3,676
|
|
|
Less: Net income
attributable to noncontrolling interests
|
(224)
|
|
(155)
|
|
|
|
(666)
|
|
(454)
|
|
|
Net income
attributable to Charter shareholders
|
$ 1,610
|
|
$ 1,246
|
|
|
|
$ 4,654
|
|
$ 3,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE ATTRIBUTABLE TO
CHARTER SHAREHOLDERS:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 9.17
|
|
$ 6.33
|
|
|
|
$ 25.34
|
|
$ 15.85
|
|
|
Diluted
|
$ 8.93
|
|
$ 6.05
|
|
|
|
$ 24.47
|
|
$ 15.40
|
|
|
Weighted
average common shares outstanding, basic
|
175,623,846
|
|
196,906,511
|
|
|
|
183,669,369
|
|
203,316,483
|
|
|
Weighted
average common shares outstanding, diluted
|
180,417,622
|
|
212,077,917
|
|
|
|
193,042,948
|
|
209,273,247
|
|
|
|
Adjusted EBITDA is a
non-GAAP term. See page 6 of this addendum for the
reconciliation of Adjusted EBITDA 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.
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(dollars in
millions)
|
|
|
December
31,
|
|
2021
|
|
2020
|
ASSETS
|
(unaudited)
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
601
|
|
$
1,001
|
Accounts receivable,
net
|
2,579
|
|
2,539
|
Prepaid expenses and
other current assets
|
386
|
|
369
|
Total current
assets
|
3,566
|
|
3,909
|
|
|
|
|
INVESTMENT IN CABLE
PROPERTIES:
|
|
|
|
Property, plant and
equipment, net
|
34,310
|
|
34,357
|
Customer
relationships, net
|
4,060
|
|
5,615
|
Franchises
|
67,346
|
|
67,322
|
Goodwill
|
29,562
|
|
29,554
|
Total investment in
cable properties, net
|
135,278
|
|
136,848
|
|
|
|
|
OTHER NONCURRENT
ASSETS
|
3,647
|
|
3,449
|
|
|
|
|
Total
assets
|
$
142,491
|
|
$
144,206
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
9,461
|
|
$
8,867
|
Current portion of
long-term debt
|
2,997
|
|
1,008
|
Total current
liabilities
|
12,458
|
|
9,875
|
|
|
|
|
LONG-TERM
DEBT
|
88,564
|
|
81,744
|
DEFERRED INCOME
TAXES
|
19,096
|
|
18,108
|
OTHER LONG-TERM
LIABILITIES
|
4,217
|
|
4,198
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
Controlling
interest
|
14,050
|
|
23,805
|
Noncontrolling
interests
|
4,106
|
|
6,476
|
Total shareholders'
equity
|
18,156
|
|
30,281
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
142,491
|
|
$
144,206
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED STATEMENTS OF
CASH FLOWS
|
(dollars in
millions)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Consolidated net
income
|
$
1,834
|
|
$
1,401
|
|
$
5,320
|
|
$
3,676
|
Adjustments to
reconcile consolidated net income to net cash flows from
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
2,280
|
|
2,409
|
|
9,345
|
|
9,704
|
Stock
compensation expense
|
98
|
|
88
|
|
430
|
|
351
|
Noncash
interest income, net
|
(3)
|
|
(10)
|
|
(23)
|
|
(41)
|
Deferred
income taxes
|
158
|
|
213
|
|
826
|
|
465
|
Other,
net
|
(98)
|
|
(165)
|
|
181
|
|
214
|
Changes in operating
assets and liabilities, net of effects from acquisitions
and dispositions:
|
|
|
|
|
|
|
|
Accounts
receivable
|
71
|
|
(142)
|
|
(35)
|
|
(67)
|
Prepaid
expenses and other assets
|
(40)
|
|
125
|
|
(167)
|
|
(31)
|
Accounts
payable, accrued liabilities and other
|
(74)
|
|
230
|
|
362
|
|
291
|
Net cash
flows from operating activities
|
4,226
|
|
4,149
|
|
16,239
|
|
14,562
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Purchases
of property, plant and equipment
|
(2,072)
|
|
(2,063)
|
|
(7,635)
|
|
(7,415)
|
Change in
accrued expenses related to capital expenditures
|
131
|
|
(7)
|
|
80
|
|
(77)
|
Purchases
of wireless spectrum licenses
|
—
|
|
(371)
|
|
—
|
|
(464)
|
Real
estate investments through variable interest entities
|
—
|
|
(61)
|
|
(128)
|
|
(183)
|
Other,
net
|
(51)
|
|
(68)
|
|
(71)
|
|
(18)
|
Net cash
flows from investing activities
|
(1,992)
|
|
(2,570)
|
|
(7,754)
|
|
(8,157)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Borrowings of long-term debt
|
5,713
|
|
5,402
|
|
20,976
|
|
15,754
|
Repayments of long-term debt
|
(2,495)
|
|
(2,383)
|
|
(12,146)
|
|
(12,094)
|
Payments
for debt issuance costs
|
(26)
|
|
(34)
|
|
(102)
|
|
(125)
|
Issuance
of equity
|
—
|
|
—
|
|
—
|
|
23
|
Purchase
of treasury stock
|
(4,597)
|
|
(4,349)
|
|
(15,431)
|
|
(11,217)
|
Proceeds
from exercise of stock options
|
1
|
|
13
|
|
44
|
|
184
|
Purchase
of noncontrolling interest
|
(734)
|
|
(578)
|
|
(2,234)
|
|
(1,462)
|
Distributions to noncontrolling interest
|
(4)
|
|
(40)
|
|
(75)
|
|
(154)
|
Borrowings for real estate investments through variable interest
entities
|
2
|
|
61
|
|
130
|
|
120
|
Other,
net
|
41
|
|
44
|
|
(47)
|
|
18
|
Net cash
flows from financing activities
|
(2,099)
|
|
(1,864)
|
|
(8,885)
|
|
(8,953)
|
|
|
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
135
|
|
(285)
|
|
(400)
|
|
(2,548)
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
466
|
|
1,286
|
|
1,001
|
|
3,549
|
CASH AND CASH
EQUIVALENTS, end of period
|
$
601
|
|
$
1,001
|
|
$
601
|
|
$
1,001
|
|
|
|
|
|
|
|
|
CASH PAID FOR
INTEREST
|
$
1,005
|
|
$
843
|
|
$
4,043
|
|
$
3,866
|
CASH PAID FOR
TAXES
|
$
58
|
|
$
39
|
|
$
157
|
|
$
123
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED SUMMARY
OF OPERATING STATISTICS
|
(in thousands,
except per customer and penetration data)
|
|
|
|
Approximate as
of
|
|
|
December 31,
2021 (a)
|
|
December 31,
2020 (a)
|
|
December 31,
2019 (a)
|
Footprint
(b)
|
|
|
|
|
|
|
Estimated
Passings
|
|
54,521
|
|
53,416
|
|
52,270
|
|
|
|
|
|
|
|
Customer
Relationships (c)
|
|
|
|
|
|
|
Residential
|
|
29,926
|
|
29,079
|
|
27,277
|
SMB
|
|
2,143
|
|
2,051
|
|
1,958
|
Total
Customer Relationships
|
|
32,069
|
|
31,130
|
|
29,235
|
|
|
|
|
|
|
|
Residential
|
|
103
|
|
167
|
|
240
|
SMB
|
|
17
|
|
30
|
|
28
|
Total
Customer Relationships Quarterly Net Additions
|
|
120
|
|
197
|
|
268
|
|
|
|
|
|
|
|
Total Customer
Relationship Penetration of Estimated Passings (d)
|
|
58.8 %
|
|
58.3 %
|
|
55.9 %
|
|
|
|
|
|
|
|
Monthly Residential
Revenue per Residential Customer (e)
|
|
$
114.14
|
|
$
111.85
|
|
$
113.79
|
Monthly SMB Revenue
per SMB Customer (f)
|
|
$
164.59
|
|
$
163.02
|
|
$
169.06
|
|
|
|
|
|
|
|
Residential
Customer Relationships Penetration
|
|
|
|
|
|
|
Single Play
Penetration (g)
|
|
46.7 %
|
|
44.5 %
|
|
43.0 %
|
Double Play
Penetration (g)
|
|
33.0 %
|
|
32.7 %
|
|
30.7 %
|
Triple Play
Penetration (g)
|
|
20.4 %
|
|
22.9 %
|
|
26.2 %
|
|
|
|
|
|
|
|
% Residential
Non-Video Customer Relationships
|
|
49.2 %
|
|
46.2 %
|
|
42.7 %
|
|
|
|
|
|
|
|
Internet
|
|
|
|
|
|
|
Residential
|
|
28,137
|
|
27,023
|
|
24,908
|
SMB
|
|
1,952
|
|
1,856
|
|
1,756
|
Total
Internet Customers
|
|
30,089
|
|
28,879
|
|
26,664
|
|
|
|
|
|
|
|
Residential
|
|
172
|
|
216
|
|
313
|
SMB
|
|
18
|
|
30
|
|
26
|
Total
Internet Quarterly Net Additions
|
|
190
|
|
246
|
|
339
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
Residential
|
|
15,216
|
|
15,639
|
|
15,620
|
SMB
|
|
617
|
|
561
|
|
524
|
Total
Video Customers
|
|
15,833
|
|
16,200
|
|
16,144
|
|
|
|
|
|
|
|
Residential
|
|
(71)
|
|
(66)
|
|
(105)
|
SMB
|
|
13
|
|
31
|
|
4
|
Total
Video Quarterly Net Additions
|
|
(58)
|
|
(35)
|
|
(101)
|
|
|
|
|
|
|
|
Voice
|
|
|
|
|
|
|
Residential
|
|
8,621
|
|
9,215
|
|
9,443
|
SMB
|
|
1,282
|
|
1,224
|
|
1,144
|
Total
Voice Customers
|
|
9,903
|
|
10,439
|
|
10,587
|
|
|
|
|
|
|
|
Residential
|
|
(163)
|
|
(120)
|
|
(152)
|
SMB
|
|
9
|
|
17
|
|
24
|
Total
Voice Quarterly Net Additions
|
|
(154)
|
|
(103)
|
|
(128)
|
|
|
|
|
|
|
|
Mobile Lines
(h)
|
|
|
|
|
|
|
Residential
|
|
3,448
|
|
2,320
|
|
1,078
|
SMB
|
|
116
|
|
55
|
|
4
|
Total
Mobile Lines
|
|
3,564
|
|
2,375
|
|
1,082
|
|
|
|
|
|
|
|
Residential
|
|
363
|
|
300
|
|
285
|
SMB
|
|
17
|
|
15
|
|
3
|
Total
Mobile Lines Quarterly Net Additions
|
|
380
|
|
315
|
|
288
|
|
|
|
|
|
|
|
Enterprise
(i)
|
|
|
|
|
|
|
Enterprise Primary
Service Units ("PSUs")
|
|
272
|
|
259
|
|
252
|
Enterprise Quarterly
Net Additions
|
|
3
|
|
2
|
|
3
|
|
|
(a)
|
We calculate the
aging of customer accounts based on the monthly billing cycle for
each account. On that basis, at December 31, 2021,
December 31, 2020 and December 31, 2019, customers included
approximately 150,700, 168,400 and 154,200 customers, respectively,
whose accounts were over 60 days past due, approximately 39,900,
17,800 and 13,500 customers, respectively, whose accounts were over
90 days past due and approximately 43,500, 11,100 and 10,000
customers, respectively, whose accounts were over 120 days past
due. The increase in the past due accounts is predominately
due to pre-existing balances for customers participating in the
Emergency Broadband Benefit program through which a customer's
monthly payment is subsidized by the federal
government.
|
|
|
(b)
|
Passings represent
our estimate of the number of units, such as single family homes,
apartment and condominium units and SMB and enterprise sites passed
by our cable distribution network in the areas where we offer the
service indicated. These estimates are based upon the
information available at this time and are updated for all periods
presented when new information becomes available.
|
|
|
(c)
|
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.
|
|
|
(d)
|
Penetration
represents residential and SMB customers as a percentage of
estimated passings. Penetration excludes mobile-only
customers.
|
|
|
(e)
|
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.
|
|
|
(f)
|
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.
|
|
|
(g)
|
Single play, double
play and triple play penetration represents the number of
residential single play, double play and triple play cable
customers, respectively, as a percentage of residential customer
relationships, excluding mobile.
|
|
|
(h)
|
Mobile lines include
phones and tablets which require one of our standard rate plans
(e.g., "Unlimited" or "By the Gig"). Mobile lines exclude
wearables and other devices that do not require standard phone rate
plans.
|
|
|
(i)
|
Enterprise PSUs
represents the aggregate number of fiber service offerings counting
each separate service offering at each customer location as an
individual PSU.
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED
RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
|
(dollars in
millions)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income
attributable to Charter shareholders
|
$
1,610
|
|
$
1,246
|
|
$
4,654
|
|
$
3,222
|
Plus: Net income
attributable to noncontrolling interest
|
224
|
|
155
|
|
666
|
|
454
|
Interest expense,
net
|
1,034
|
|
965
|
|
4,037
|
|
3,848
|
Income tax
expense
|
224
|
|
254
|
|
1,068
|
|
626
|
Depreciation and
amortization
|
2,280
|
|
2,409
|
|
9,345
|
|
9,704
|
Stock compensation
expense
|
98
|
|
88
|
|
430
|
|
351
|
Other (income)
expenses, net
|
(91)
|
|
(123)
|
|
430
|
|
313
|
Adjusted EBITDA
(a)
|
$
5,379
|
|
$
4,994
|
|
$
20,630
|
|
$
18,518
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$
4,226
|
|
$
4,149
|
|
$
16,239
|
|
$
14,562
|
Less: Purchases
of property, plant and equipment
|
(2,072)
|
|
(2,063)
|
|
(7,635)
|
|
(7,415)
|
Change in accrued
expenses related to capital expenditures
|
131
|
|
(7)
|
|
80
|
|
(77)
|
Free cash
flow
|
$
2,285
|
|
$
2,079
|
|
$
8,684
|
|
$
7,070
|
|
(a)
See page 1 of this addendum for detail of the components included
within Adjusted EBITDA.
|
|
The above schedule is
presented in order to reconcile Adjusted EBITDA and free cash flow,
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
|
UNAUDITED
CAPITAL EXPENDITURES
|
(dollars in
millions)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Customer premise
equipment (a)
|
$
471
|
|
$
501
|
|
$
1,967
|
|
$
2,002
|
Scalable
infrastructure (b)
|
454
|
|
499
|
|
1,677
|
|
1,478
|
Line extensions
(c)
|
451
|
|
437
|
|
1,642
|
|
1,641
|
Upgrade/rebuild
(d)
|
222
|
|
156
|
|
706
|
|
615
|
Support capital
(e)
|
474
|
|
470
|
|
1,643
|
|
1,679
|
Total
capital expenditures
|
$
2,072
|
|
$
2,063
|
|
$
7,635
|
|
$
7,415
|
|
|
|
|
|
|
|
|
Capital expenditures
included in total related to:
|
|
|
|
|
|
|
|
Commercial
services
|
$
362
|
|
$
383
|
|
$
1,445
|
|
$
1,325
|
Mobile
|
$
127
|
|
$
157
|
|
$
482
|
|
$
508
|
|
|
(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.,
digital receivers 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).
|
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SOURCE Charter Communications, Inc.