STAMFORD, Conn., Jan. 27,
2023 /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, 2022.
![Charter Communications Logo. (PRNewsfoto/Charter Communications, Inc.) Charter Communications Logo. (PRNewsfoto/Charter Communications, Inc.)](https://mma.prnewswire.com/media/1990881/Charter_Communication_Logo.jpg)
- Fourth quarter total residential and small and medium business
("SMB") Internet customers increased by 105,000. As of December 31, 2022, Charter served a total of 30.4
million residential and SMB Internet customers, with 344,000 total
Internet customers added in 2022.
- Fourth quarter total residential and SMB mobile lines increased
by 615,000. As of December 31, 2022,
Charter served a total of 5.3 million mobile lines, with 1.7
million mobile lines added in 2022.
- As of December 31, 2022, Charter
had a total of 32.2 million residential and SMB customer
relationships, which excludes mobile-only relationships.
- Fourth quarter revenue of $13.7
billion grew by 3.5% year-over-year, driven by mobile
revenue growth of 38.7%, advertising sales revenue growth of 24.6%
and commercial revenue growth of 3.3%.
- Net income attributable to Charter shareholders totaled
$1.2 billion in the fourth quarter.
For the year ended December 31, 2022,
net income attributable to Charter shareholders totaled
$5.1 billion.
- Fourth quarter Adjusted EBITDA1 of $5.5 billion grew by 1.9% year-over-year.
- For the year ended December 31,
2022, revenue of $54.0 billion
grew by 4.5% year-over-year. Full year 2022 Adjusted EBITDA totaled
$21.6 billion, 4.8% higher than in
2021.
- For the year ended December 31,
2022, capital expenditures totaled $9.4 billion and included $3.0 billion of line extensions, reflecting
Charter's commitment to its rural construction initiative.
- Full year 2022 net cash flows from operating activities totaled
$14.9 billion, compared to
$16.2 billion in the prior year. The
year-over-year decline was primarily due to higher cash taxes.
- Full year 2022 free cash flow1 of $6.1 billion decreased from $8.7 billion in the prior year, due to capital
expenditures associated with Charter's rural construction
initiative and higher cash taxes.
- During the fourth quarter, Charter purchased 3.6 million shares
of Charter Class A common stock and Charter Communications
Holdings, LLC ("Charter Holdings") common units for approximately
$1.3 billion. For the year ended
December 31, 2022, Charter purchased
23.8 million shares of Charter Class A common stock and Charter
Holdings common units for approximately $11.7 billion.
"We continued to execute well in 2022, growing customer
relationships, revenue and EBITDA," said Chris Winfrey, President and CEO of Charter. "In
2023 and the coming years, we remain focused on three core
initiatives — network evolution, footprint expansion and
operational execution. Each of these initiatives will deliver
benefits for a growing base of customers, our employees and local
communities, with long-term value creation for our
shareholders."
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,
2022 (a)
|
|
December 31,
2021 (a)
|
|
Y/Y
Change
|
Footprint
(b)
|
|
|
|
|
|
|
Estimated
Passings
|
|
55,573
|
|
54,521
|
|
1.9 %
|
|
|
|
|
|
|
|
Customer
Relationships (c)
|
|
|
|
|
|
|
Residential
|
|
29,988
|
|
29,926
|
|
0.2 %
|
SMB
|
|
2,207
|
|
2,143
|
|
3.0 %
|
Total Customer
Relationships
|
|
32,195
|
|
32,069
|
|
0.4 %
|
|
|
|
|
|
|
|
Residential
|
|
42
|
|
103
|
|
(61)
|
SMB
|
|
12
|
|
17
|
|
(5)
|
Total Customer
Relationships Quarterly Net Additions
|
|
54
|
|
120
|
|
(66)
|
|
|
|
|
|
|
|
Total Customer
Relationship Penetration of Estimated Passings (d)
|
|
57.9 %
|
|
58.8 %
|
|
(0.9) ppts
|
|
|
|
|
|
|
|
Monthly Residential
Revenue per Residential Customer (e)
|
|
$
114.20
|
|
$
114.14
|
|
0.1 %
|
Monthly SMB Revenue
per SMB Customer (f)
|
|
$
163.44
|
|
$
164.59
|
|
(0.7) %
|
|
|
|
|
|
|
|
Residential Customer
Relationships Penetration
|
|
|
|
|
|
|
Single Play
Penetration (g)
|
|
49.1 %
|
|
46.7 %
|
|
2.4 ppts
|
Double Play
Penetration (g)
|
|
33.1 %
|
|
33.0 %
|
|
0.1 ppts
|
Triple Play
Penetration (g)
|
|
17.8 %
|
|
20.4 %
|
|
(2.6) ppts
|
|
|
|
|
|
|
|
% Residential
Non-Video Customer Relationships
|
|
51.7 %
|
|
49.2 %
|
|
2.5 ppts
|
|
|
|
|
|
|
|
Internet
|
|
|
|
|
|
|
Residential
|
|
28,412
|
|
28,137
|
|
1.0 %
|
SMB
|
|
2,021
|
|
1,952
|
|
3.5 %
|
Total Internet
Customers
|
|
30,433
|
|
30,089
|
|
1.1 %
|
|
|
|
|
|
|
|
Residential
|
|
92
|
|
172
|
|
(80)
|
SMB
|
|
13
|
|
18
|
|
(5)
|
Total Internet
Quarterly Net Additions
|
|
105
|
|
190
|
|
(85)
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
Residential
|
|
14,497
|
|
15,216
|
|
(4.7) %
|
SMB
|
|
650
|
|
617
|
|
5.3 %
|
Total Video
Customers
|
|
15,147
|
|
15,833
|
|
(4.3) %
|
|
|
|
|
|
|
|
Residential
|
|
(145)
|
|
(71)
|
|
(74)
|
SMB
|
|
1
|
|
13
|
|
(12)
|
Total Video Quarterly
Net Additions
|
|
(144)
|
|
(58)
|
|
(86)
|
|
|
|
|
|
|
|
Voice
|
|
|
|
|
|
|
Residential
|
|
7,697
|
|
8,621
|
|
(10.7) %
|
SMB
|
|
1,286
|
|
1,282
|
|
0.3 %
|
Total Voice
Customers
|
|
8,983
|
|
9,903
|
|
(9.3) %
|
|
|
|
|
|
|
|
Residential
|
|
(232)
|
|
(163)
|
|
(69)
|
SMB
|
|
(1)
|
|
9
|
|
(10)
|
Total Voice Quarterly
Net Additions
|
|
(233)
|
|
(154)
|
|
(79)
|
|
|
|
|
|
|
|
Mobile Lines
(h)
|
|
|
|
|
|
|
Residential
|
|
5,116
|
|
3,448
|
|
48.4 %
|
SMB
|
|
176
|
|
116
|
|
51.5 %
|
Total Mobile
Lines
|
|
5,292
|
|
3,564
|
|
48.5 %
|
|
|
|
|
|
|
|
Residential
|
|
600
|
|
363
|
|
237
|
SMB
|
|
15
|
|
17
|
|
(2)
|
Total Mobile Lines
Quarterly Net Additions
|
|
615
|
|
380
|
|
235
|
|
|
|
|
|
|
|
Enterprise
(i)
|
|
|
|
|
|
|
Enterprise Primary
Service Units ("PSUs")
|
|
284
|
|
272
|
|
4.4 %
|
Enterprise Quarterly
Net Additions
|
|
2
|
|
3
|
|
(1)
|
Footnotes - In thousands, except
per customer and penetration data. See footnotes to unaudited
summary of operating statistics on page 6 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.
|
As of December 31, 2022, Charter had 30.0 million
residential customer relationships.
Fourth quarter residential Internet customers increased
by 92,000, compared to an increase of 172,000 customers during
the fourth quarter of 2021. Spectrum Internet®
delivers the fastest speeds in Charter's footprint.1
Charter offers Spectrum Internet products with speeds
up to 1 Gbps across its entire footprint. Charter's Advanced WiFi,
a managed WiFi service that provides customers an optimized home
network while providing greater control of their connected devices
with enhanced security and privacy, is available to nearly all
Spectrum Internet customers. In October 2022, Charter introduced Spectrum
One, which brings together Spectrum Internet, Advanced
WiFi and Unlimited Spectrum MobileTM, to
offer consumers faster, more reliable and secure online connections
on their favorite devices at home and on the go in a high-value
package.
Residential video customers decreased by 145,000 in the fourth
quarter of 2022, compared to a decline of 71,000 in the fourth
quarter of 2021. As of December 31, 2022, Charter had
14.5 million residential video customers.
During the fourth quarter of 2022, residential wireline voice
customers declined by 232,000, compared to a decline of 163,000 in
the fourth quarter of 2021. As of December 31, 2022, Charter
had 7.7 million residential wireline voice customers.
Fourth quarter 2022 residential revenue per residential
customer (excluding mobile) totaled $114.20, and increased by 0.1% compared to the
prior year period, given promotional rate step-ups and rate
adjustments, partly offset by a higher mix of non-video customer
relationships and a higher mix of lower priced video packages
within Charter's video customer base.
SMB customer relationships grew by 12,000 in the fourth quarter
of 2022, while fourth quarter 2021 SMB customer relationships grew
by 17,000. Enterprise PSUs grew by 2,000 in the fourth quarter of
2022 versus 3,000 added in the fourth quarter of 2021.
During the fourth quarter of 2022, Charter added 615,000 mobile
lines, compared to growth of 380,000 during the fourth quarter of
2021. Spectrum Mobile is available to all new and existing
Spectrum Internet customers. Spectrum Mobile
customers can choose "Unlimited" or "By the Gig" data plans.
Spectrum Mobile offers the fastest overall
speeds,2 with plans that include 5G access and taxes and
fees and do not require contracts. Spectrum One and
Spectrum Mobile are central to Charter's converged network
strategy to provide consumers a differentiated connectivity
experience with highly competitive, simple data plans and
pricing.
1. Based on Ookla's Speedtest Global Index median fixed
download speeds for Q4 2022, which indicates that Spectrum
Internet continues to deliver faster speeds than its
competitors.
2. Fastest Overall Speed claim based on Global Wireless
Solutions' combined cellular and WiFi speed test results in
Spectrum service area where WiFi is available. Cellular speeds vary
by location.
Fourth Quarter Financial
Results
|
(in
millions)
|
|
|
Three Months Ended
December 31,
|
|
2022
|
|
2021
|
|
%
Change
|
Revenues:
|
|
|
|
|
|
Internet
|
$ 5,637
|
|
$ 5,424
|
|
3.9 %
|
Video
|
4,251
|
|
4,406
|
|
(3.5) %
|
Voice
|
379
|
|
396
|
|
(4.3) %
|
Residential
revenue
|
10,267
|
|
10,226
|
|
0.4 %
|
Small and medium
business
|
1,080
|
|
1,054
|
|
2.4 %
|
Enterprise
|
674
|
|
643
|
|
4.9 %
|
Commercial
revenue
|
1,754
|
|
1,697
|
|
3.3 %
|
Advertising
sales
|
558
|
|
448
|
|
24.6 %
|
Mobile
|
876
|
|
632
|
|
38.7 %
|
Other
|
219
|
|
209
|
|
4.9 %
|
Total
Revenues
|
$
13,674
|
|
$
13,212
|
|
3.5 %
|
|
|
|
|
|
|
Net income attributable
to Charter shareholders
|
$ 1,196
|
|
$ 1,610
|
|
(25.7) %
|
Net income attributable
to Charter shareholders margin
|
8.7 %
|
|
12.2 %
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA1
|
$ 5,482
|
|
$ 5,379
|
|
1.9 %
|
Adjusted EBITDA
margin
|
40.1 %
|
|
40.7 %
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
$ 2,920
|
|
$ 2,072
|
|
40.9 %
|
% Total
Revenues
|
21.4 %
|
|
15.7 %
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$ 3,787
|
|
$ 4,226
|
|
(10.4) %
|
Free cash
flow1
|
$ 1,136
|
|
$ 2,285
|
|
(50.3) %
|
|
|
1.
|
See page 1 of the
addendum for a GAAP reconciliation of Adjusted EBITDA and free cash
flow.
|
Revenues
Fourth quarter revenue increased by 3.5% year-over-year to
$13.7 billion, driven primarily by
growth in mobile, advertising sales and commercial revenues.
Residential revenue totaled $10.3
billion in the fourth quarter, an increase of 0.4%
year-over-year.
Internet revenue grew by 3.9% year-over-year to $5.6 billion, driven by growth in Internet
customers during the last year, promotional rate step-ups, reduced
bundled discounts and rate adjustments, partly offset by lower
bundled revenue allocation.
Video revenue totaled $4.3 billion
in the fourth quarter, a decrease of 3.5% compared to the prior
year period, driven by a higher mix of lower priced video packages
within Charter's video customer base and a decline in video
customers during the last year, partly offset by promotional rate
step-ups and video rate adjustments that pass through programmer
rate increases.
Voice revenue totaled $379 million
in the fourth quarter, a decrease of 4.3% compared to the fourth
quarter of 2021, driven by a decline in wireline voice customers
over the last twelve months, partly offset by voice rate
adjustments.
Commercial revenue increased by 3.3% year-over-year to
$1.8 billion, driven by SMB and
enterprise revenue growth of 2.4% and 4.9% year-over-year,
respectively. Fourth quarter 2022 SMB revenue growth was driven by
customer relationship growth. Enterprise revenue excluding
wholesale increased by 9.1% year-over-year, mostly reflecting PSU
growth.
Fourth quarter advertising sales revenue of $558 million increased by 24.6% compared to the
year-ago quarter, primarily driven by higher political revenue.
Excluding political revenue in both periods, advertising sales
revenue decreased by 3.4% year-over-year, due to lower local and
national advertising revenue, partly offset by higher advanced
advertising revenue.
Fourth quarter mobile revenue totaled $876 million, an increase of 38.7%
year-over-year, driven by mobile line growth.
Operating Costs and Expenses
Fourth quarter programming costs decreased by $95 million, or 3.3% as compared to the fourth
quarter of 2021, reflecting fewer video customers and a higher mix
of lower cost packages within Charter's video customer base, partly
offset by contractual programming rate increases and renewals.
Regulatory, connectivity and produced content expenses decreased
by $31 million, or 5.3%
year-over-year, primarily driven by lower regulatory and franchise
fees and lower video CPE sold to customers.
Costs to service customers increased by $108 million, or 5.8% year-over-year. The
year-over-year increase in costs to service customers was primarily
driven by adjustments to job structure, pay and benefits to build a
more skilled and longer tenured workforce, higher fuel and freight
costs and higher bad debt, partly offset by productivity
improvements. Costs to service customers excluding bad debt
increased by 4.9% year-over-year.
Marketing expenses increased by $55
million, or 6.9% year-over-year, due to higher staffing
levels and wages as Charter focuses on providing better service to
new and existing customers.
Fourth quarter mobile costs totaled $982 million, an increase of 35.7%
year-over-year, and were comprised of device costs, customer
acquisition costs and service and operating costs.
Other expenses increased by $64
million, or 6.6% as compared to the fourth quarter of 2021,
primarily due to higher labor costs and higher advertising sales
expense related to higher political revenue.
Net Income Attributable to Charter Shareholders
Net income attributable to Charter shareholders totaled
$1.2 billion in the fourth quarter of
2022, compared to $1.6 billion in the
fourth quarter of 2021. The year-over-year decrease in net income
attributable to Charter shareholders was primarily driven by higher
income tax expense, higher interest expense, net and the change in
other income (expense), net, partly offset by higher Adjusted
EBITDA.
Net income per basic common share attributable to Charter
shareholders totaled $7.79 in the
fourth quarter of 2022 compared to $9.17 during the same period last year. The
decrease was primarily the result of the factors described above,
partly offset by the benefit of a 12.6% decrease in basic weighted
average common shares outstanding versus the prior year period.
Adjusted EBITDA
Fourth quarter Adjusted EBITDA of $5.5 billion grew by 1.9% year-over-year,
reflecting growth in revenue and operating expenses of 3.5% and
4.6%, respectively.
Capital Expenditures
Capital expenditures totaled $2.9
billion in the fourth quarter of 2022, compared to
$2.1 billion during the fourth
quarter of 2021. The increase was primarily driven by higher spend
on line extensions, which totaled $928
million in the fourth quarter of 2022, compared to
$451 million in the prior year
quarter, driven by Charter's rural construction initiative. Fourth
quarter capital expenditures excluding line extensions totaled
$2.0 billion, compared to
$1.6 billion in the fourth quarter of
2021, driven by investment in network evolution, higher customer
premise equipment spend on Advanced WiFi equipment and timing of
spend.
Cash Flow and Free Cash Flow
During the fourth quarter of 2022, net cash flows from operating
activities totaled $3.8 billion,
compared to $4.2 billion in the prior
year quarter. The year-over-year decrease in net cash flows from
operating activities was primarily due to higher cash taxes.
Free cash flow in the fourth quarter of 2022 totaled
$1.1 billion, compared to
$2.3 billion during the same period
last year. The year-over-year decrease in free cash flow was
primarily driven by a decrease in net cash flows from operating
activities and an increase in capital expenditures.
Liquidity & Financing
As of December 31, 2022, total principal amount of debt was
$97.4 billion and Charter's credit
facilities provided approximately $4.0
billion of additional liquidity in excess of Charter's
$645 million cash position.
Share Repurchases
During the three months ended December 31, 2022, Charter
purchased 3.6 million shares of Charter Class A common stock and
Charter Holdings common units for approximately $1.3 billion.
Full Year
Financial Results
|
(in
millions)
|
|
|
Year Ended December
31,
|
|
2022
|
|
2021
|
|
%
Change
|
Revenues:
|
|
|
|
|
|
Internet
|
$
22,222
|
|
$
21,094
|
|
5.3 %
|
Video
|
17,460
|
|
17,630
|
|
(1.0) %
|
Voice
|
1,559
|
|
1,598
|
|
(2.5) %
|
Residential
revenue
|
41,241
|
|
40,322
|
|
2.3 %
|
Small and medium
business
|
4,301
|
|
4,170
|
|
3.1 %
|
Enterprise
|
2,677
|
|
2,573
|
|
4.0 %
|
Commercial
revenue
|
6,978
|
|
6,743
|
|
3.5 %
|
Advertising
sales
|
1,882
|
|
1,594
|
|
18.1 %
|
Mobile
|
3,042
|
|
2,178
|
|
39.7 %
|
Other
|
879
|
|
845
|
|
4.0 %
|
Total
Revenues
|
$
54,022
|
|
$
51,682
|
|
4.5 %
|
|
|
|
|
|
|
Net income attributable
to Charter shareholders
|
$ 5,055
|
|
$ 4,654
|
|
8.6 %
|
Net income attributable
to Charter shareholders margin
|
9.4 %
|
|
9.0 %
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA1
|
$
21,616
|
|
$
20,630
|
|
4.8 %
|
Adjusted EBITDA
margin
|
40.0 %
|
|
39.9 %
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
$ 9,376
|
|
$ 7,635
|
|
22.8 %
|
% Total
Revenues
|
17.4 %
|
|
14.8 %
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$
14,925
|
|
$
16,239
|
|
(8.1) %
|
Free cash
flow1
|
$ 6,102
|
|
$ 8,684
|
|
(29.7) %
|
Revenues
For the year ended December 31, 2022, revenues increased to
$54.0 billion, 4.5% higher than in
2021, driven primarily by growth in residential, mobile and
advertising sales revenues.
Operating Costs and Expenses
Operating costs and expenses totaled $32.4 billion in 2022, an increase of
$1.4 billion, or 4.4% compared to the
prior year ended December 31, 2021, primarily driven by
increases in mobile, costs to service customers and marketing
expenses.
Net Income Attributable to Charter Shareholders
Net income attributable to Charter shareholders totaled
$5.1 billion for the year ended
December 31, 2022, compared to $4.7 billion in 2021. The year-over-year
increase in net income attributable to Charter shareholders was
primarily driven by higher Adjusted EBITDA, partly offset by higher
income tax expense.
Net income per basic common share attributable to Charter
shareholders totaled $31.30 for the
year ended December 31, 2022, compared to $25.34 during the same period last year. The
increase was primarily the result of the factors described above in
addition to a 12.1% decrease in weighted average common shares
outstanding versus the prior year period.
Adjusted EBITDA
Adjusted EBITDA totaled $21.6
billion for the year ended December 31, 2022, an
increase of 4.8% compared to 2021, reflecting growth in
revenue and operating expenses of 4.5% and 4.4%,
respectively.
Capital Expenditures
Capital expenditures totaled $9.4
billion for the year ended December 31, 2022, compared
to $7.6 billion in 2021. The increase
was primarily driven by higher spend on line extensions, which
totaled $3.0 billion in 2022, driven
by Charter's rural construction initiative. For the full year 2022,
capital expenditures excluding line extensions totaled $6.4 billion.
Charter currently expects full year 2023 capital expenditures,
excluding line extensions, to be between $6.5 billion and $6.8
billion. Charter expects 2023 line extensions capital
expenditures to approximate $4
billion. The actual amount of capital expenditures in 2023
will depend on a number of factors including, but not limited to,
the pace of Charter's network evolution and rural construction
initiatives, supply chain timing and growth rates in Charter's
residential and commercial businesses.
Cash Flow and Free Cash Flow
For the year ended December 31, 2022, net cash flows from
operating activities totaled $14.9
billion, compared to $16.2
billion in 2021. The year-over-year decrease in net cash
flows from operating activities was primarily due to higher cash
taxes, higher cash paid for interest and the payment of litigation
settlements, partly offset by an increase in Adjusted EBITDA.
Free cash flow for the year ended December 31, 2022 was
$6.1 billion, compared to
$8.7 billion during the same period
last year. The year-over-year decrease in free cash flow was driven
by a decrease in net cash flows from operating activities and an
increase in capital expenditures.
Share Repurchases
During the year ended December 31, 2022, Charter purchased
23.8 million shares of Charter Class A common stock and Charter
Holdings common units, or 12.0% of fully diluted shares outstanding
(including as-exchanged Charter Holdings common units) as of
December 31, 2021, for approximately $11.7 billion.
Webcast
Charter will host a webcast on Friday, January 27, 2023 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, 2022, 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 $355
million and $352 million for
the three months ended December 31, 2022 and 2021,
respectively, and $1.4 billion and
$1.3 billion for the years ended
December 31, 2022 and 2021, respectively.
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 and sports
programming to its customers through Spectrum Networks. 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;
- 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 including in
connection with our network evolution and rural construction
initiatives;
- 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
RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
|
(dollars in
millions)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income attributable
to Charter shareholders
|
$
1,196
|
|
$
1,610
|
|
$
5,055
|
|
$
4,654
|
Plus: Net income
attributable to noncontrolling interest
|
189
|
|
224
|
|
794
|
|
666
|
Interest expense,
net
|
1,227
|
|
1,034
|
|
4,556
|
|
4,037
|
Income tax
expense
|
419
|
|
224
|
|
1,613
|
|
1,068
|
Depreciation and
amortization
|
2,192
|
|
2,280
|
|
8,903
|
|
9,345
|
Stock compensation
expense
|
110
|
|
98
|
|
470
|
|
430
|
Other (income)
expenses, net
|
149
|
|
(91)
|
|
225
|
|
430
|
Adjusted
EBITDA
|
$
5,482
|
|
$
5,379
|
|
$
21,616
|
|
$
20,630
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$
3,787
|
|
$
4,226
|
|
$
14,925
|
|
$
16,239
|
Less: Purchases
of property, plant and equipment
|
(2,920)
|
|
(2,072)
|
|
(9,376)
|
|
(7,635)
|
Change in accrued
expenses related to capital expenditures
|
269
|
|
131
|
|
553
|
|
80
|
Free cash
flow
|
$
1,136
|
|
$
2,285
|
|
$
6,102
|
|
$
8,684
|
|
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.
|
UNAUDITED
ALTERNATIVE PRESENTATION OF ADJUSTED EBITDA
|
(dollars in
millions)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2022
|
|
2021
|
|
%
Change
|
|
2022
|
|
2021
|
|
%
Change
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
Internet
|
$
5,637
|
|
$
5,424
|
|
3.9 %
|
|
$ 22,222
|
|
$ 21,094
|
|
5.3 %
|
Video
|
4,251
|
|
4,406
|
|
(3.5) %
|
|
17,460
|
|
17,630
|
|
(1.0) %
|
Voice
|
379
|
|
396
|
|
(4.3) %
|
|
1,559
|
|
1,598
|
|
(2.5) %
|
Residential
revenue
|
10,267
|
|
10,226
|
|
0.4 %
|
|
41,241
|
|
40,322
|
|
2.3 %
|
Small and medium
business
|
1,080
|
|
1,054
|
|
2.4 %
|
|
4,301
|
|
4,170
|
|
3.1 %
|
Enterprise
|
674
|
|
643
|
|
4.9 %
|
|
2,677
|
|
2,573
|
|
4.0 %
|
Commercial
revenue
|
1,754
|
|
1,697
|
|
3.3 %
|
|
6,978
|
|
6,743
|
|
3.5 %
|
Advertising
sales
|
558
|
|
448
|
|
24.6 %
|
|
1,882
|
|
1,594
|
|
18.1 %
|
Mobile
|
876
|
|
632
|
|
38.7 %
|
|
3,042
|
|
2,178
|
|
39.7 %
|
Other
|
219
|
|
209
|
|
4.9 %
|
|
879
|
|
845
|
|
4.0 %
|
Total
Revenues
|
13,674
|
|
13,212
|
|
3.5 %
|
|
54,022
|
|
51,682
|
|
4.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Programming
|
2,800
|
|
2,895
|
|
(3.3) %
|
|
11,620
|
|
11,844
|
|
(1.9) %
|
Regulatory,
connectivity and produced content
|
561
|
|
592
|
|
(5.3) %
|
|
2,303
|
|
2,494
|
|
(7.7) %
|
Costs to service
customers
|
1,971
|
|
1,863
|
|
5.8 %
|
|
7,772
|
|
7,393
|
|
5.1 %
|
Marketing
|
846
|
|
791
|
|
6.9 %
|
|
3,339
|
|
3,071
|
|
8.7 %
|
Mobile
|
982
|
|
724
|
|
35.7 %
|
|
3,385
|
|
2,489
|
|
36.0 %
|
Other expense
(a)
|
1,032
|
|
968
|
|
6.6 %
|
|
3,987
|
|
3,761
|
|
6.0 %
|
Total operating costs
and expenses (a)
|
8,192
|
|
7,833
|
|
4.6 %
|
|
32,406
|
|
31,052
|
|
4.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
5,482
|
|
$
5,379
|
|
1.9 %
|
|
$ 21,616
|
|
$ 20,630
|
|
4.8 %
|
|
|
(a)
|
Other expense excludes
stock compensation expense. Total operating costs and
expenses excludes stock compensation expense, depreciation and
amortization and other operating (income) expenses, net.
|
|
All percentages are
calculated using whole numbers. Minor differences may exist due to
rounding.
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(dollars in
millions, except per share data)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
REVENUES
|
$
13,674
|
|
$
13,212
|
|
$
54,022
|
|
$
51,682
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
Operating costs and
expenses (exclusive of items shown separately below)
|
8,302
|
|
7,931
|
|
32,876
|
|
31,482
|
Depreciation and
amortization
|
2,192
|
|
2,280
|
|
8,903
|
|
9,345
|
Other operating
expenses, net
|
140
|
|
45
|
|
281
|
|
329
|
|
10,634
|
|
10,256
|
|
42,060
|
|
41,156
|
Income from
operations
|
3,040
|
|
2,956
|
|
11,962
|
|
10,526
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSES):
|
|
|
|
|
|
|
|
Interest expense,
net
|
(1,227)
|
|
(1,034)
|
|
(4,556)
|
|
(4,037)
|
Other income
(expense), net
|
(9)
|
|
136
|
|
56
|
|
(101)
|
|
(1,236)
|
|
(898)
|
|
(4,500)
|
|
(4,138)
|
Income before income
taxes
|
1,804
|
|
2,058
|
|
7,462
|
|
6,388
|
Income tax
expense
|
(419)
|
|
(224)
|
|
(1,613)
|
|
(1,068)
|
Consolidated net
income
|
1,385
|
|
1,834
|
|
5,849
|
|
5,320
|
Less: Net income
attributable to noncontrolling interests
|
(189)
|
|
(224)
|
|
(794)
|
|
(666)
|
Net income attributable
to Charter shareholders
|
$
1,196
|
|
$
1,610
|
|
$
5,055
|
|
$
4,654
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE ATTRIBUTABLE TO CHARTER SHAREHOLDERS:
|
|
|
|
|
|
|
|
Basic
|
$
7.79
|
|
$
9.17
|
|
$
31.30
|
|
$
25.34
|
Diluted
|
$
7.69
|
|
$
8.93
|
|
$
30.74
|
|
$
24.47
|
Weighted average
common shares outstanding, basic
|
153,523,976
|
|
175,623,846
|
|
161,501,355
|
|
183,669,369
|
Weighted average
common shares outstanding, diluted
|
155,554,890
|
|
180,417,622
|
|
164,433,596
|
|
193,042,948
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(dollars in
millions)
|
|
|
|
|
December
31,
|
|
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
645
|
|
$
601
|
Accounts receivable,
net
|
|
|
2,921
|
|
2,579
|
Prepaid expenses and
other current assets
|
|
|
451
|
|
386
|
Total current
assets
|
|
|
4,017
|
|
3,566
|
|
|
|
|
|
|
INVESTMENT IN CABLE
PROPERTIES:
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
36,039
|
|
34,310
|
Customer
relationships, net
|
|
|
2,772
|
|
4,060
|
Franchises
|
|
|
67,363
|
|
67,346
|
Goodwill
|
|
|
29,563
|
|
29,562
|
Total investment in
cable properties, net
|
|
|
135,737
|
|
135,278
|
|
|
|
|
|
|
OTHER NONCURRENT
ASSETS
|
|
|
4,769
|
|
3,647
|
|
|
|
|
|
|
Total
assets
|
|
|
$
144,523
|
|
$
142,491
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
|
$
10,555
|
|
$
9,461
|
Current portion of
long-term debt
|
|
|
1,510
|
|
2,997
|
Total current
liabilities
|
|
|
12,065
|
|
12,458
|
|
|
|
|
|
|
LONG-TERM
DEBT
|
|
|
96,093
|
|
88,564
|
DEFERRED INCOME
TAXES
|
|
|
19,058
|
|
19,096
|
OTHER LONG-TERM
LIABILITIES
|
|
|
4,758
|
|
4,217
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Controlling
interest
|
|
|
9,119
|
|
14,050
|
Noncontrolling
interests
|
|
|
3,430
|
|
4,106
|
Total shareholders'
equity
|
|
|
12,549
|
|
18,156
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
|
$
144,523
|
|
$
142,491
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED STATEMENTS OF
CASH FLOWS
|
(dollars in
millions)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Consolidated net
income
|
$
1,385
|
|
$
1,834
|
|
$
5,849
|
|
$
5,320
|
Adjustments to
reconcile consolidated net income to net cash flows from operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,192
|
|
2,280
|
|
8,903
|
|
9,345
|
Stock compensation
expense
|
110
|
|
98
|
|
470
|
|
430
|
Noncash interest
income, net
|
(5)
|
|
(3)
|
|
(17)
|
|
(23)
|
Deferred income
taxes
|
(78)
|
|
158
|
|
87
|
|
826
|
Other, net
|
142
|
|
(98)
|
|
29
|
|
181
|
Changes in operating
assets and liabilities, net of effects from acquisitions and
dispositions:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(80)
|
|
71
|
|
(342)
|
|
(35)
|
Prepaid expenses and
other assets
|
(106)
|
|
(40)
|
|
(202)
|
|
(167)
|
Accounts payable,
accrued liabilities and other
|
227
|
|
(74)
|
|
148
|
|
362
|
Net cash flows from
operating activities
|
3,787
|
|
4,226
|
|
14,925
|
|
16,239
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
(2,920)
|
|
(2,072)
|
|
(9,376)
|
|
(7,635)
|
Change in accrued
expenses related to capital expenditures
|
269
|
|
131
|
|
553
|
|
80
|
Other, net
|
(117)
|
|
(51)
|
|
(291)
|
|
(199)
|
Net cash flows from
investing activities
|
(2,768)
|
|
(1,992)
|
|
(9,114)
|
|
(7,754)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Borrowings of
long-term debt
|
4,115
|
|
5,713
|
|
25,643
|
|
20,976
|
Repayments of
long-term debt
|
(3,652)
|
|
(2,495)
|
|
(19,311)
|
|
(12,146)
|
Payments for debt
issuance costs
|
—
|
|
(26)
|
|
(71)
|
|
(102)
|
Purchase of treasury
stock
|
(1,032)
|
|
(4,597)
|
|
(10,277)
|
|
(15,431)
|
Proceeds from exercise
of stock options
|
—
|
|
1
|
|
5
|
|
44
|
Purchase of
noncontrolling interest
|
(223)
|
|
(734)
|
|
(1,602)
|
|
(2,234)
|
Distributions to
noncontrolling interest
|
(55)
|
|
(4)
|
|
(111)
|
|
(75)
|
Other, net
|
(7)
|
|
43
|
|
(43)
|
|
83
|
Net cash flows from
financing activities
|
(854)
|
|
(2,099)
|
|
(5,767)
|
|
(8,885)
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
165
|
|
135
|
|
44
|
|
(400)
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
480
|
|
466
|
|
601
|
|
1,001
|
CASH AND CASH
EQUIVALENTS, end of period
|
$
645
|
|
$
601
|
|
$
645
|
|
$
601
|
|
|
|
|
|
|
|
|
CASH PAID FOR
INTEREST
|
$
1,258
|
|
$
1,005
|
|
$
4,509
|
|
$
4,043
|
CASH PAID FOR
TAXES
|
$
439
|
|
$
58
|
|
$
1,321
|
|
$
157
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED SUMMARY OF
OPERATING STATISTICS
|
(in thousands,
except per customer and penetration data)
|
|
|
|
Approximate as
of
|
|
|
December 31,
2022 (a)
|
|
September 30,
2022 (a)
|
|
December 31,
2021 (a)
|
Footprint
(b)
|
|
|
|
|
|
|
Estimated
Passings
|
|
55,573
|
|
55,288
|
|
54,521
|
|
|
|
|
|
|
|
Customer
Relationships (c)
|
|
|
|
|
|
|
Residential
|
|
29,988
|
|
29,946
|
|
29,926
|
SMB
|
|
2,207
|
|
2,195
|
|
2,143
|
Total Customer
Relationships
|
|
32,195
|
|
32,141
|
|
32,069
|
|
|
|
|
|
|
|
Residential
|
|
42
|
|
4
|
|
103
|
SMB
|
|
12
|
|
13
|
|
17
|
Total Customer
Relationships Quarterly Net Additions
|
|
54
|
|
17
|
|
120
|
|
|
|
|
|
|
|
Total Customer
Relationship Penetration of Estimated Passings (d)
|
|
57.9 %
|
|
58.1 %
|
|
58.8 %
|
|
|
|
|
|
|
|
Monthly Residential
Revenue per Residential Customer (e)
|
|
$
114.20
|
|
$
115.16
|
|
$
114.14
|
Monthly SMB Revenue
per SMB Customer (f)
|
|
$
163.44
|
|
$
164.89
|
|
$
164.59
|
|
|
|
|
|
|
|
Residential Customer
Relationships Penetration
|
|
|
|
|
|
|
Single Play
Penetration (g)
|
|
49.1 %
|
|
48.5 %
|
|
46.7 %
|
Double Play
Penetration (g)
|
|
33.1 %
|
|
33.1 %
|
|
33.0 %
|
Triple Play
Penetration (g)
|
|
17.8 %
|
|
18.4 %
|
|
20.4 %
|
|
|
|
|
|
|
|
% Residential
Non-Video Customer Relationships
|
|
51.7 %
|
|
51.1 %
|
|
49.2 %
|
|
|
|
|
|
|
|
Internet
|
|
|
|
|
|
|
Residential
|
|
28,412
|
|
28,320
|
|
28,137
|
SMB
|
|
2,021
|
|
2,008
|
|
1,952
|
Total Internet
Customers
|
|
30,433
|
|
30,328
|
|
30,089
|
|
|
|
|
|
|
|
Residential
|
|
92
|
|
61
|
|
172
|
SMB
|
|
13
|
|
14
|
|
18
|
Total Internet
Quarterly Net Additions
|
|
105
|
|
75
|
|
190
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
Residential
|
|
14,497
|
|
14,642
|
|
15,216
|
SMB
|
|
650
|
|
649
|
|
617
|
Total Video
Customers
|
|
15,147
|
|
15,291
|
|
15,833
|
|
|
|
|
|
|
|
Residential
|
|
(145)
|
|
(211)
|
|
(71)
|
SMB
|
|
1
|
|
7
|
|
13
|
Total Video Quarterly
Net Additions
|
|
(144)
|
|
(204)
|
|
(58)
|
|
|
|
|
|
|
|
Voice
|
|
|
|
|
|
|
Residential
|
|
7,697
|
|
7,929
|
|
8,621
|
SMB
|
|
1,286
|
|
1,287
|
|
1,282
|
Total Voice
Customers
|
|
8,983
|
|
9,216
|
|
9,903
|
|
|
|
|
|
|
|
Residential
|
|
(232)
|
|
(271)
|
|
(163)
|
SMB
|
|
(1)
|
|
—
|
|
9
|
Total Voice Quarterly
Net Additions
|
|
(233)
|
|
(271)
|
|
(154)
|
|
|
|
|
|
|
|
Mobile Lines
(h)
|
|
|
|
|
|
|
Residential
|
|
5,116
|
|
4,516
|
|
3,448
|
SMB
|
|
176
|
|
161
|
|
116
|
Total Mobile
Lines
|
|
5,292
|
|
4,677
|
|
3,564
|
|
|
|
|
|
|
|
Residential
|
|
600
|
|
382
|
|
363
|
SMB
|
|
15
|
|
14
|
|
17
|
Total Mobile Lines
Quarterly Net Additions
|
|
615
|
|
396
|
|
380
|
|
|
|
|
|
|
|
Enterprise
(i)
|
|
|
|
|
|
|
Enterprise Primary
Service Units ("PSUs")
|
|
284
|
|
282
|
|
272
|
Enterprise Quarterly
Net Additions
|
|
2
|
|
5
|
|
3
|
|
|
(a)
|
We calculate the aging
of customer accounts based on the monthly billing cycle for each
account. On that basis, at December 31, 2022, September
30, 2022 and December 31, 2021, customers included
approximately 144,100, 151,700 and 128,300 customers, respectively,
whose accounts were over 60 days past due, approximately 52,800,
55,500 and 26,800 customers, respectively, whose accounts were over
90 days past due and approximately 214,100, 149,300 and 43,200
customers, respectively, whose accounts were over 120 days past
due. Bad debt expense associated with these past due accounts
has been reflected in our consolidated statements of
operations. The increase in past due accounts is
predominately due to pre-existing and incremental unsubsidized
services, including video services, for those customers
participating in government assistance programs. These
customers are downgraded to a fully subsidized Internet-only
service.
|
|
|
(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 CAPITAL
EXPENDITURES
|
(dollars in
millions)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Customer premise
equipment (a)
|
|
$
603
|
|
$
471
|
|
$
2,209
|
|
$
1,967
|
Scalable infrastructure
(b)
|
|
613
|
|
454
|
|
1,791
|
|
1,677
|
Line extensions
(c)
|
|
928
|
|
451
|
|
2,990
|
|
1,642
|
Upgrade/rebuild
(d)
|
|
310
|
|
222
|
|
845
|
|
706
|
Support capital
(e)
|
|
466
|
|
474
|
|
1,541
|
|
1,643
|
Total capital
expenditures
|
|
$
2,920
|
|
$
2,072
|
|
$
9,376
|
|
$
7,635
|
|
|
|
|
|
|
|
|
|
Of which:
Commercial services
|
|
$
401
|
|
$
362
|
|
$
1,511
|
|
$
1,445
|
|
|
|
|
|
|
|
|
|
Capital expenditures
included in total related to:
|
|
|
|
|
|
|
|
|
Capital expenditures,
excluding line extensions
|
|
$
1,992
|
|
$
1,621
|
|
$
6,386
|
|
$
5,993
|
Line extensions
(c)
|
|
928
|
|
451
|
|
2,990
|
|
1,642
|
Total capital
expenditures
|
|
$
2,920
|
|
$
2,072
|
|
$
9,376
|
|
$
7,635
|
|
|
|
|
|
|
|
|
|
Capital expenditures
included in total related to:
|
|
|
|
|
|
|
|
|
Core cable
(f)
|
|
$
2,132
|
|
$
1,945
|
|
$
7,209
|
|
$
7,153
|
Mobile
|
|
111
|
|
127
|
|
376
|
|
482
|
Rural construction
initiative (g)
|
|
677
|
|
—
|
|
1,791
|
|
—
|
Total capital
expenditures
|
|
$
2,920
|
|
$
2,072
|
|
$
9,376
|
|
$
7,635
|
|
|
(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).
|
(f)
|
Core cable represents
total capital expenditures excluding mobile and rural construction
initiative capital expenditures.
|
(g)
|
The rural construction
initiative subcategory includes expenditures associated with our
Rural Construction Initiative (for which separate reporting was
initiated in 2022), excluding customer premise equipment and
installation.
|
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SOURCE Charter Communications, Inc.