Charter Communications, Inc. Customer Metrics
(in thousands except ARPU and penetration, unaudited)
2020 | 2021 | 2022 | ||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | FY | ||||||||||||||||||
Footprint (a) | ||||||||||||||||||||||||||||||||
Estimated Passings | 52,534 | 52,830 | 53,138 | 53,416 | 53,416 | 53,708 | 54,000 | 54,268 | 54,521 | 54,521 | 54,739 | 55,008 | 55,288 | 55,573 | 55,573 | |||||||||||||||||
Customer Relationships (b) | ||||||||||||||||||||||||||||||||
Residential | 27,745 | 28,496 | 28,912 | 29,079 | 29,079 | 29,361 | 29,660 | 29,823 | 29,926 | 29,926 | 30,035 | 29,942 | 29,946 | 29,988 | 29,988 | |||||||||||||||||
Small and Medium Business ("SMB") | 1,976 | 1,980 | 2,021 | 2,051 | 2,051 | 2,071 | 2,104 | 2,126 | 2,143 | 2,143 | 2,163 | 2,182 | 2,195 | 2,207 | 2,207 | |||||||||||||||||
Total Customer Relationships | 29,721 | 30,476 | 30,933 | 31,130 | 31,130 | 31,432 | 31,764 | 31,949 | 32,069 | 32,069 | 32,198 | 32,124 | 32,141 | 32,195 | 32,195 | |||||||||||||||||
Residential | 468 | 751 | 416 | 167 | 1,802 | 282 | 299 | 163 | 103 | 847 | 109 | (93) | 4 | 42 | 62 | |||||||||||||||||
SMB | 18 | 4 | 41 | 30 | 93 | 20 | 33 | 22 | 17 | 92 | 20 | 19 | 13 | 12 | 64 | |||||||||||||||||
Total Customer Relationships Net Additions (Losses) | 486 | 755 | 457 | 197 | 1,895 | 302 | 332 | 185 | 120 | 939 | 129 | (74) | 17 | 54 | 126 | |||||||||||||||||
Total Customer Relationship Penetration of Estimated Passings (c) | 56.6% | 57.7% | 58.2% | 58.3% | 58.3% | 58.5% | 58.8% | 58.9% | 58.8% | 58.8% | 58.8% | 58.4% | 58.1% | 57.9% | 57.9% | |||||||||||||||||
Monthly Residential Revenue per Residential Customer (d) | $ | 112.73 | $ | 110.82 | $ | 109.03 | $ | 111.85 | $ | 111.15 | $ | 112.18 | $ | 112.85 | $ | 115.15 | $ | 114.14 | $ | 113.61 | $ | 113.28 | $ | 116.00 | $ | 115.16 | $ | 114.20 | $ | 114.66 | ||
Monthly SMB Revenue per SMB Customer (e) | $ | 168.83 | $ | 166.06 | $ | 164.77 | $ | 163.02 | $ | 165.60 | $ | 163.79 | $ | 166.28 | $ | 167.29 | $ | 164.59 | $ | 165.50 | $ | 163.96 | $ | 165.66 | $ | 164.89 | $ | 163.44 | $ | 164.50 | ||
Residential Customer Relationships Penetration | ||||||||||||||||||||||||||||||||
Single Play Penetration (f) | 43.6% | 44.0% | 44.2% | 44.5% | 44.5% | 45.2% | 45.7% | 46.4% | 46.7% | 46.7% | 47.2% | 47.8% | 48.5% | 49.1% | 49.1% | |||||||||||||||||
Double Play Penetration (f) | 31.2% | 31.7% | 32.3% | 32.7% | 32.7% | 32.6% | 32.7% | 32.8% | 33.0% | 33.0% | 33.0% | 33.1% | 33.1% | 33.1% | 33.1% | |||||||||||||||||
Triple Play Penetration (f) | 25.2% | 24.3% | 23.5% | 22.9% | 22.9% | 22.2% | 21.6% | 20.9% | 20.4% | 20.4% | 19.8% | 19.1% | 18.4% | 17.8% | 17.8% | |||||||||||||||||
% Residential Non-Video Customer Relationships | 44.0% | 45.1% | 45.7% | 46.2% | 46.2% | 47.3% | 48.0% | 48.7% | 49.2% | 49.2% | 49.7% | 50.4% | 51.1% | 51.7% | 51.7% | |||||||||||||||||
Internet | ||||||||||||||||||||||||||||||||
Residential | 25,471 | 26,313 | 26,807 | 27,023 | 27,023 | 27,357 | 27,722 | 27,965 | 28,137 | 28,137 | 28,301 | 28,259 | 28,320 | 28,412 | 28,412 | |||||||||||||||||
SMB | 1,775 | 1,783 | 1,826 | 1,856 | 1,856 | 1,877 | 1,912 | 1,934 | 1,952 | 1,952 | 1,973 | 1,994 | 2,008 | 2,021 | 2,021 | |||||||||||||||||
Total Internet Customers | 27,246 | 28,096 | 28,633 | 28,879 | 28,879 | 29,234 | 29,634 | 29,899 | 30,089 | 30,089 | 30,274 | 30,253 | 30,328 | 30,433 | 30,433 | |||||||||||||||||
Residential | 563 | 842 | 494 | 216 | 2,115 | 334 | 365 | 243 | 172 | 1,114 | 164 | (42) | 61 | 92 | 275 | |||||||||||||||||
SMB | 19 | 8 | 43 | 30 | 100 | 21 | 35 | 22 | 18 | 96 | 21 | 21 | 14 | 13 | 69 | |||||||||||||||||
Total Internet Net Additions (Losses) | 582 | 850 | 537 | 246 | 2,215 | 355 | 400 | 265 | 190 | 1,210 | 185 | (21) | 75 | 105 | 344 | |||||||||||||||||
Video | ||||||||||||||||||||||||||||||||
Residential | 15,550 | 15,652 | 15,705 | 15,639 | 15,639 | 15,483 | 15,420 | 15,287 | 15,216 | 15,216 | 15,093 | 14,853 | 14,642 | 14,497 | 14,497 | |||||||||||||||||
SMB | 524 | 516 | 530 | 561 | 561 | 579 | 592 | 604 | 617 | 617 | 628 | 642 | 649 | 650 | 650 | |||||||||||||||||
Total Video Customers | 16,074 | 16,168 | 16,235 | 16,200 | 16,200 | 16,062 | 16,012 | 15,891 | 15,833 | 15,833 | 15,721 | 15,495 | 15,291 | 15,147 | 15,147 | |||||||||||||||||
Residential | (70) | 102 | 53 | (66) | 19 | (156) | (63) | (133) | (71) | (423) | (123) | (240) | (211) | (145) | (719) | |||||||||||||||||
SMB | - | (8) | 14 | 31 | 37 | 18 | 13 | 12 | 13 | 56 | 11 | 14 | 7 | 1 | 33 | |||||||||||||||||
Total Video Net Additions (Losses) | (70) | 94 | 67 | (35) | 56 | (138) | (50) | (121) | (58) | (367) | (112) | (226) | (204) | (144) | (686) | |||||||||||||||||
Voice | ||||||||||||||||||||||||||||||||
Residential | 9,360 | 9,398 | 9,335 | 9,215 | 9,215 | 9,113 | 9,014 | 8,784 | 8,621 | 8,621 | 8,465 | 8,200 | 7,929 | 7,697 | 7,697 | |||||||||||||||||
SMB | 1,162 | 1,169 | 1,207 | 1,224 | 1,224 | 1,238 | 1,259 | 1,273 | 1,282 | 1,282 | 1,288 | 1,287 | 1,287 | 1,286 | 1,286 | |||||||||||||||||
Total Voice Customers | 10,522 | 10,567 | 10,542 | 10,439 | 10,439 | 10,351 | 10,273 | 10,057 | 9,903 | 9,903 | 9,753 | 9,487 | 9,216 | 8,983 | 8,983 | |||||||||||||||||
Residential | (83) | 38 | (63) | (120) | (228) | (102) | (99) | (230) | (163) | (594) | (156) | (265) | (271) | (232) | (924) | |||||||||||||||||
SMB | 18 | 7 | 38 | 17 | 80 | 14 | 21 | 14 | 9 | 58 | 6 | (1) | - | (1) | 4 | |||||||||||||||||
Total Voice Net Additions (Losses) | (65) | 45 | (25) | (103) | (148) | (88) | (78) | (216) | (154) | (536) | (150) | (266) | (271) | (233) | (920) | |||||||||||||||||
Mobile Lines (g) | ||||||||||||||||||||||||||||||||
Residential | 1,359 | 1,672 | 2,020 | 2,320 | 2,320 | 2,605 | 2,855 | 3,085 | 3,448 | 3,448 | 3,805 | 4,134 | 4,516 | 5,116 | 5,116 | |||||||||||||||||
SMB | 13 | 25 | 40 | 55 | 55 | 70 | 85 | 99 | 116 | 116 | 132 | 147 | 161 | 176 | 176 | |||||||||||||||||
Total Mobile Lines | 1,372 | 1,697 | 2,060 | 2,375 | 2,375 | 2,675 | 2,940 | 3,184 | 3,564 | 3,564 | 3,937 | 4,281 | 4,677 | 5,292 | 5,292 | |||||||||||||||||
Residential | 281 | 313 | 348 | 300 | 1,242 | 285 | 250 | 230 | 363 | 1,128 | 357 | 329 | 382 | 600 | 1,668 | |||||||||||||||||
SMB | 9 | 12 | 15 | 15 | 51 | 15 | 15 | 14 | 17 | 61 | 16 | 15 | 14 | 15 | 60 | |||||||||||||||||
Total Mobile Lines Net Additions | 290 | 325 | 363 | 315 | 1,293 | 300 | 265 | 244 | 380 | 1,189 | 373 | 344 | 396 | 615 | 1,728 | |||||||||||||||||
Enterprise (h) | ||||||||||||||||||||||||||||||||
Enterprise Primary Service Units ("PSUs") | 254 | 255 | 257 | 259 | 259 | 261 | 265 | 269 | 272 | 272 | 274 | 277 | 282 | 284 | 284 | |||||||||||||||||
Enterprise Net Additions | 2 | 1 | 2 | 2 | 7 | 2 | 4 | 4 | 3 | 13 | 2 | 3 | 5 | 2 | 12 | |||||||||||||||||
All percentages are calculated using whole numbers. Minor differences may exist due to rounding.
See footnotes on page 5.
1
Charter Communications, Inc.
Revenue, Expenses, and Adjusted EBITDA (i) ($ in millions; unaudited)
2020 | 2021 | 2022 | ||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | FY | ||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||
Internet | $ | 4,407 | $ | 4,530 | $ | 4,722 | $ | 4,862 | $ | 18,521 | $ | 5,086 | $ | 5,221 | $ | 5,363 | $ | 5,424 | $ | 21,094 | $ | 5,452 | $ | 5,562 | $ | 5,571 | $ | 5,637 | $ | 22,222 | ||
Video | 4,422 | 4,371 | 4,221 | 4,418 | 17,432 | 4,344 | 4,378 | 4,502 | 4,406 | 17,630 | 4,346 | 4,484 | 4,379 | 4,251 | 17,460 | |||||||||||||||||
Voice | 457 | 451 | 449 | 449 | 1,806 | 399 | 394 | 409 | 396 | 1,598 | 391 | 398 | 391 | 379 | 1,559 | |||||||||||||||||
Residential Revenue | 9,286 | 9,352 | 9,392 | 9,729 | 37,759 | 9,829 | 9,993 | 10,274 | 10,226 | 40,322 | 10,189 | 10,444 | 10,341 | 10,267 | 41,241 | |||||||||||||||||
Small and Medium Business | 996 | 983 | 988 | 997 | 3,964 | 1,012 | 1,042 | 1,062 | 1,054 | 4,170 | 1,059 | 1,080 | 1,082 | 1,080 | 4,301 | |||||||||||||||||
Enterprise | 622 | 606 | 617 | 623 | 2,468 | 638 | 636 | 656 | 643 | 2,573 | 661 | 669 | 673 | 674 | 2,677 | |||||||||||||||||
Commercial Revenue | 1,618 | 1,589 | 1,605 | 1,620 | 6,432 | 1,650 | 1,678 | 1,718 | 1,697 | 6,743 | 1,720 | 1,749 | 1,755 | 1,754 | 6,978 | |||||||||||||||||
Advertising Sales | 365 | 249 | 460 | 625 | 1,699 | 344 | 411 | 391 | 448 | 1,594 | 383 | 460 | 481 | 558 | 1,882 | |||||||||||||||||
Mobile | 258 | 310 | 368 | 428 | 1,364 | 492 | 519 | 535 | 632 | 2,178 | 690 | 726 | 750 | 876 | 3,042 | |||||||||||||||||
Other | 211 | 196 | 214 | 222 | 843 | 207 | 201 | 228 | 209 | 845 | 218 | 219 | 223 | 219 | 879 | |||||||||||||||||
Total Revenue | $ | 11,738 | $ | 11,696 | $ | 12,039 | $ | 12,624 | $ | 48,097 | $ | 12,522 | $ | 12,802 | $ | 13,146 | $ | 13,212 | $ | 51,682 | $ | 13,200 | $ | 13,598 | $ | 13,550 | $ | 13,674 | $ | 54,022 | ||
Y/Y Growth | 4.8% | 3.1% | 5.1% | 7.3% | 5.1% | 6.7% | 9.5% | 9.2% | 4.7% | 7.5% | 5.4% | 6.2% | 3.1% | 3.5% | 4.5% | |||||||||||||||||
Costs and Expenses | ||||||||||||||||||||||||||||||||
Programming | $ | 2,892 | $ | 2,873 | $ | 2,727 | $ | 2,909 | $ | 11,401 | $ | 2,988 | $ | 2,978 | $ | 2,983 | $ | 2,895 | $ | 11,844 | $ | 2,977 | $ | 2,972 | $ | 2,871 | $ | 2,800 | $ | 11,620 | ||
Regulatory, Connectivity and Produced Content | 551 | 488 | 612 | 532 | 2,183 | 600 | 668 | 634 | 592 | 2,494 | 556 | 599 | 587 | 561 | 2,303 | |||||||||||||||||
Costs to Service Customers | 1,848 | 1,848 | 1,902 | 1,874 | 7,472 | 1,804 | 1,827 | 1,899 | 1,863 | 7,393 | 1,899 | 1,920 | 1,982 | 1,971 | 7,772 | |||||||||||||||||
Marketing | 766 | 719 | 788 | 758 | 3,031 | 751 | 741 | 788 | 791 | 3,071 | 826 | 806 | 861 | 846 | 3,339 | |||||||||||||||||
Mobile | 374 | 413 | 456 | 522 | 1,765 | 572 | 586 | 607 | 724 | 2,489 | 760 | 797 | 846 | 982 | 3,385 | |||||||||||||||||
Other Expense (j) | 911 | 866 | 915 | 1,035 | 3,727 | 862 | 982 | 949 | 968 | 3,761 | 969 | 995 | 991 | 1,032 | 3,987 | |||||||||||||||||
Total Operating Costs and Expenses (j) | $ | 7,342 | $ | 7,207 | $ | 7,400 | $ | 7,630 | $ | 29,579 | $ | 7,577 | $ | 7,782 | $ | 7,860 | $ | 7,833 | $ | 31,052 | $ | 7,987 | $ | 8,089 | $ | 8,138 | $ | 8,192 | $ | 32,406 | ||
Adjusted EBITDA (i) | ||||||||||||||||||||||||||||||||
Adjusted EBITDA (i) | $4,396 | $4,489 | $4,639 | $4,994 | $ | 18,518 | $4,945 | $5,020 | $5,286 | $5,379 | $ | 20,630 | $5,213 | $5,509 | $5,412 | $5,482 | $ | 21,616 | ||||||||||||||
Y/Y Growth | 8.4% | 7.3% | 13.6% | 10.2% | 9.9% | 12.5% | 11.8% | 13.9% | 7.7% | 11.4% | 5.4% | 9.7% | 2.4% | 1.9% | 4.8% | |||||||||||||||||
Adjusted EBITDA Margin (i) | 37.4% | 38.4% | 38.5% | 39.6% | 38.5% | 39.5% | 39.2% | 40.2% | 40.7% | 39.9% | 39.5% | 40.5% | 39.9% | 40.1% | 40.0% | |||||||||||||||||
Adjusted EBITDA(i) is a non-GAAP term. See page 4 for the reconciliation of Adjusted EBITDA(i) to net income attributable to Charter shareholders as defined by GAAP.
All percentages are calculated using whole numbers. Minor differences may exist due to rounding. See footnotes on page 5.
2
Charter Communications, Inc. Capital Expenditures
($ in millions; unaudited)
2020 | 2021 | 2022 | ||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | FY | ||||||||||||||||||
Capital Expenditures | ||||||||||||||||||||||||||||||||
Customer premise equipment (k) | $ | 463 | $ | 518 | $ | 520 | $ | 501 | $ | 2,002 | $ | 489 | $ | 494 | $ | 513 | $ | 471 | $ | 1,967 | $ | 469 | $ | 560 | $ | 577 | $ | 603 | $ | 2,209 | ||
Scalable infrastructure (l) | 170 | 385 | 424 | 499 | 1,478 | 411 | 437 | 375 | 454 | 1,677 | 371 | 389 | 418 | 613 | 1,791 | |||||||||||||||||
Line extensions (m) | 343 | 422 | 439 | 437 | 1,641 | 399 | 400 | 392 | 451 | 1,642 | 542 | 694 | 826 | 928 | 2,990 | |||||||||||||||||
Success Based | 976 | 1,325 | 1,383 | 1,437 | 5,121 | 1,299 | 1,331 | 1,280 | 1,376 | 5,286 | 1,382 | 1,643 | 1,821 | 2,144 | 6,990 | |||||||||||||||||
Upgrade/Rebuild (n) | 129 | 155 | 175 | 156 | 615 | 145 | 161 | 178 | 222 | 706 | 146 | 181 | 208 | 310 | 845 | |||||||||||||||||
Support capital (o) | 356 | 397 | 456 | 470 | 1,679 | 377 | 389 | 403 | 474 | 1,643 | 329 | 369 | 377 | 466 | 1,541 | |||||||||||||||||
Total capital expenditures | $ | 1,461 | $ | 1,877 | $ | 2,014 | $ | 2,063 | $ | 7,415 | $ | 1,821 | $ | 1,881 | $ | 1,861 | $ | 2,072 | $ | 7,635 | $ | 1,857 | $ | 2,193 | $ | 2,406 | $ | 2,920 | $ | 9,376 | ||
Of which: Commercial services | $ | 261 | $ | 323 | $ | 358 | $ | 383 | $ | 1,325 | $ | 333 | $ | 397 | $ | 353 | $ | 362 | $ | 1,445 | $ | 365 | $ | 376 | $ | 369 | $ | 401 | $ | 1,511 | ||
Capital expenditures included in total related to: | ||||||||||||||||||||||||||||||||
Capital expenditures, excluding line extensions | $ | 1,118 | $ | 1,455 | $ | 1,575 | $ | 1,626 | $ | 5,774 | $ | 1,422 | $ | 1,481 | $ | 1,469 | $ | 1,621 | $ | 5,993 | $ | 1,315 | $ | 1,499 | $ | 1,580 | $ | 1,992 | $ | 6,386 | ||
Line extensions (m) | 343 | 422 | 439 | 437 | 1,641 | 399 | 400 | 392 | 451 | 1,642 | 542 | 694 | 826 | 928 | 2,990 | |||||||||||||||||
Total capital expenditures | $ | 1,461 | $ | 1,877 | $ | 2,014 | $ | 2,063 | $ | 7,415 | $ | 1,821 | $ | 1,881 | $ | 1,861 | $ | 2,072 | $ | 7,635 | $ | 1,857 | $ | 2,193 | $ | 2,406 | $ | 2,920 | $ | 9,376 | ||
Capital expenditures included in total related to: | ||||||||||||||||||||||||||||||||
Core cable(p) | $ | 1,374 | $ | 1,752 | $ | 1,875 | $ | 1,906 | $ | 6,907 | $ | 1,709 | $ | 1,757 | $ | 1,742 | $ | 1,945 | $ | 7,153 | $ | 1,551 | $ | 1,741 | $ | 1,785 | $ | 2,132 | $ | 7,209 | ||
Mobile | 87 | 125 | 139 | 157 | 508 | 112 | 124 | 119 | 127 | 482 | 74 | 95 | 96 | 111 | 376 | |||||||||||||||||
Rural construction initiative(q) | - | - | - | - | - | - | - | - | - | - | 232 | 357 | 525 | 677 | 1,791 | |||||||||||||||||
Total capital expenditures | $ | 1,461 | $ | 1,877 | $ | 2,014 | $ | 2,063 | $ | 7,415 | $ | 1,821 | $ | 1,881 | $ | 1,861 | $ | 2,072 | $ | 7,635 | $ | 1,857 | $ | 2,193 | $ | 2,406 | $ | 2,920 | $ | 9,376 | ||
See footnotes on page 5.
3
Charter Communications, Inc.
Reconciliation of Non-GAAP Measures to GAAP Measures ($ in millions; unaudited)
2020 | 2021 | 2022 | ||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | FY | ||||||||||||||||||
Reconciliation | ||||||||||||||||||||||||||||||||
Net income attributable to Charter shareholders | $ | 396 | $ | 766 | $ | 814 | $ | 1,246 | $ | 3,222 | $ | 807 | $ | 1,020 | $ | 1,217 | $ | 1,610 | $ | 4,654 | $ | 1,203 | $ | 1,471 | $ | 1,185 | $ | 1,196 | $ | 5,055 | ||
Plus: | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | 71 | 110 | 118 | 155 | 454 | 114 | 138 | 190 | 224 | 666 | 186 | 237 | 182 | 189 | 794 | |||||||||||||||||
Interest expense, net | 980 | 957 | 946 | 965 | 3,848 | 983 | 1,004 | 1,016 | 1,034 | 4,037 | 1,060 | 1,109 | 1,160 | 1,227 | 4,556 | |||||||||||||||||
Income tax expense | 29 | 166 | 177 | 254 | 626 | 216 | 281 | 347 | 224 | 1,068 | 345 | 489 | 360 | 419 | 1,613 | |||||||||||||||||
Depreciation and amortization | 2,497 | 2,428 | 2,370 | 2,409 | 9,704 | 2,441 | 2,354 | 2,270 | 2,280 | 9,345 | 2,294 | 2,240 | 2,177 | 2,192 | 8,903 | |||||||||||||||||
Stock compensation expense | 90 | 90 | 83 | 88 | 351 | 134 | 100 | 98 | 98 | 430 | 147 | 104 | 109 | 110 | 470 | |||||||||||||||||
Other (income) expenses, net | 333 | (28) | 131 | (123) | 313 | 250 | 123 | 148 | (91) | 430 | (22) | (141) | 239 | 149 | 225 | |||||||||||||||||
Adjusted EBITDA (i) | $ | 4,396 | $ | 4,489 | $ | 4,639 | $ | 4,994 | $ | 18,518 | $ | 4,945 | $ | 5,020 | $ | 5,286 | $ | 5,379 | $ | 20,630 | $ | 5,213 | $ | 5,509 | $ | 5,412 | $ | 5,482 | $ | 21,616 | ||
Net cash flows from operating activities | $ | 3,220 | $ | 3,529 | $ | 3,664 | $ | 4,149 | $ | 14,562 | $ | 3,751 | $ | 3,999 | $ | 4,263 | $ | 4,226 | $ | 16,239 | $ | 3,647 | $ | 3,734 | $ | 3,757 | $ | 3,787 | $ | 14,925 | ||
Less: | ||||||||||||||||||||||||||||||||
Purchases of property, plant and equipment | (1,461) | (1,877) | (2,014) | (2,063) | (7,415) | (1,821) | (1,881) | (1,861) | (2,072) | (7,635) | (1,857) | (2,193) | (2,406) | (2,920) | (9,376) | |||||||||||||||||
Change in accrued expenses related to capital expenditures | (388) | 214 | 104 | (7) | (77) | (75) | (50) | 74 | 131 | 80 | 10 | 118 | 156 | 269 | 553 | |||||||||||||||||
Free cash flow (i) | $ | 1,371 | $ | 1,866 | $ | 1,754 | $ | 2,079 | $ | 7,070 | $ | 1,855 | $ | 2,068 | $ | 2,476 | $ | 2,285 | $ | 8,684 | $ | 1,800 | $ | 1,659 | $ | 1,507 | $ | 1,136 | $ | 6,102 | ||
See page 2 for detail of the components included within Adjusted EBITDA (i).
The above schedule is presented in order to reconcile Adjusted EBITDA (i) and free cash flow (i), non-GAAP measures, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act. See footnotes on page 5.
4
Charter Communications, Inc.
Notes
- Passings represent our estimate of the number of units, such as single family homes, apartment and condominium units and small and medium business and enterprise sites passed by our cable distribution network in the areas where we offer service. These estimates are based upon the information available at this time and are updated for all periods presented when new information becomes available.
- Customer relationships include the number of customers that receive one or more levels of service, encompassing Internet, video and voice services, without regard to which service(s) such customers receive. Customers who reside in residential multiple dwelling units ("MDUs") and that are billed under bulk contracts are counted based on the number of billed units within each bulk MDU. Total customer relationships exclude enterprise and mobile-only customer relationships.
- Penetration represents residential and SMB customers as a percentage of estimated passings. Penetration excludes mobile-only customers.
- Monthly residential revenue per residential customer is calculated as total residential quarterly revenue divided by three divided by average residential customer relationships during the respective quarter and excludes mobile revenue and customers.
- Monthly SMB revenue per SMB customer is calculated as total SMB quarterly revenue divided by three divided by average SMB customer relationships during the respective quarter and excludes mobile revenue and customers.
- Single play, double play and triple play penetration represents the number of residential single play, double play and triple play customers, respectively, as a percentage of residential customer relationships, excluding mobile.
- 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.
- Enterprise PSUs represents the aggregate number of fiber service offerings counting each separate service offering at each customer location as an individual PSU.
- Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, 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 our businesses as well as other non-cash or special items, and is unaffected by our capital structure or investment activities. Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.
- Other expense excludes stock compensation expense. Total operating costs and expenses excludes stock compensation expense, depreciation and amortization and other operating (income) expenses, net.
- 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, etc.).
- Scalable infrastructure includes costs, not related to customer premise equipment or our network, to secure growth of new customers and revenue generating units, or provide service enhancements (e.g., headend equipment).
- Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering).
- Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including betterments.
- Support capital includes costs associated with the replacement or enhancement of non-network assets due to technological and physical obsolescence (e.g., non-network equipment, land, buildings and vehicles).
- Core cable represents total capital expenditures excluding mobile and rural construction initiative capital expenditures.
- 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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Charter Communications Inc. published this content on 25 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2023 13:28:08 UTC.