SlideShare uma empresa Scribd logo
1 de 12
Baixar para ler offline
Charter Communications
2Q07 Earnings Call
August 2, 2007




                         1
Cautionary Statement Regarding
Forward Looking Statements
This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the
quot;Securities Actquot;) and Section 21E of the Securities Exchange Act of 1934, as amended (the quot;Exchange Actquot;), regarding, among other things,
our plans, strategies and prospects, both business and financial. Charter will not undertake to revise forward-looking projections to reflect
events after this date. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking
statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking
statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under “Risk
Factors” from time to time in our filings with the Securities and Exchange Commission (“SEC”). Many of the forward-looking statements
contained in this presentation may be identified by the use of forward-looking words such as quot;believe,quot; quot;expect,quot; quot;anticipate,quot; quot;should,quot;
quot;planned,quot; quot;will,quot; quot;may,quot; quot;intend,quot; quot;estimated,quot; quot;aim,quot; quot;on track,quot; quot;target,quot; quot;opportunityquot; and quot;potential,quot; among others. Important factors that
could cause actual results to differ materially from the forward-looking statements we make in this presentation are set forth in reports or
documents that we file from time to time with the SEC, and include, but are not limited to:
      –the availability, in general, of funds to meet interest payment obligations under our debt and to fund our operations and necessary
      capital expenditures, either through cash flows from operating activities, further borrowings or other sources and, in particular, our ability
      to be able to provide under the applicable debt instruments such funds (by dividend, investment or otherwise) to the applicable obligor
      of such debt;
      –our ability to comply with all covenants in our indentures and credit facilities, any violation of which could trigger a default of our other
      obligations under cross-default provisions;
      –our ability to pay or refinance debt prior to or when it becomes due and/or refinance that debt through new issuances, exchange offers
      or otherwise, including restructuring our balance sheet and leverage position;
      –competition from other distributors, including incumbent telephone companies, direct broadcast satellite operators, wireless broadband
      providers and DSL providers;
      –difficulties in introducing and operating our telephone services, such as our ability to adequately meet customer expectations for the
      reliability of voice services, and our ability to adequately meet demand for installations and customer service;
      –our ability to sustain and grow revenues and cash flows from operating activities by offering video, high-speed Internet, telephone and
      other services and to maintain and grow our customer base, particularly in the face of increasingly aggressive competition;
      –our ability to obtain programming at reasonable prices or to adequately raise prices to offset the effects of higher programming costs;
      –general business conditions, economic uncertainty or slowdown; and
      –the effects of governmental regulation, including but not limited to local and state franchise authorities, on our business.
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 presentation.
Unless otherwise stated, all results are pro forma which reflect the sales of certain systems in 2006 and 2007 as if such
transactions had occurred as of January 1, 2006.                                                                                                       2
Executing on Key Metrics



                           Double-digit revenue and
                           adjusted EBITDA growth for
Consistent Strategies
                           3 consecutive quarters

                            Best 2Q RGU net adds
                           in 5 years
Leveraging Foundation
                           12.6% ARPU growth
                           • Bundle driving ARPU
                           • Telephone supporting growth
Continuing Momentum          in bundled customers



                                                           3
RGUs                      Drive Financial Growth

              Total RGUs
                                          8.2% Y/Y
12,000,000
                                           Growth
                                                           Revenue        Adj EBITDA
                                                           Y/Y Growth          Y/Y Growth
11,000,000

                                                     12%
                                                                 11%                 11%
10,000,000
                                                     10%
                                                            9%

                                                     8%
 9,000,000
             2Q06    3Q06   4Q06   1Q07    2Q07
                                                     6%                         5%

             2Q RGU net adds                         4%



                                    166,300
                    47%                              2%
175,000


150,000                                              0%


125,000                                                                 2Q06
               112,800
                                                                        2Q07
100,000


 75,000

 50,000
                                                                                            4
                2Q06                 2Q07
Advanced Services Support Video Growth


              Total video RGUs
                                                     Advanced services expanding:
                                         99,700
8,500,000
                                      Net Gain Y/Y
                                                       50% Y/Y increase in customers
                                                       with advanced set top boxes

                                                       HD/DVR available to 85% digital
8,000,000

                                                       customers

                                                       2Q07 VOD revenue up 28% Y/Y
7,500,000
            2Q06     3Q06   4Q06   1Q07   2Q07

                                                       HD OnDemand content launched
   Video    $52.69                        $55.38
   ARPU




                            2Q07 video ARPU increased 5.1% Y/Y
                                                                                         5
HSI Reinforces the Bundle Strategy

           2Q07 HSI net adds
70,000

             16%       60,300
                                 HSI net adds increase nearly 16%
60,000

            51,900
50,000

                                 HSI revenues increase 21% Y/Y in 2Q07
40,000


                                 5.6% ARPU increase Y/Y in 2Q07
30,000
             2Q06      2Q07


                                 HSI penetration increased to 24%
            YTD HSI net adds
                                 from 21% Y/Y
 190,000               183,900
              17%
                                 Growth supported by increased speed
 180,000


                                 and content
 170,000

             157,100
                                   75% of customers receive 5Mbps or higher
 160,000

 150,000
                                    Integrating content across platform
 140,000

 130,000
               2Q06     2Q07                                                  6
Telephone Fueling RGU Growth

               Telephone net gains and
            penetration rates remain strong
       150,000




       125,000
                                                                                                 2Q07 Telephone Stats
                                                                                                                                  7.6M
                                                                                    Telephone Homes Passed
       100,000

                                                                                                                                  700K
                                                                                    Telephone Customers
         75,000
                                                                                                                                    9%
                                                                                    Telephone Penetration
                                                                                    (percent of Telephone HP)
         50,000
                                                                                                                              9.5 – 10M
                                                                                    Homes Passed Guidance
                                                                                    for YE 2008
         25,000
                     2Q06       3Q06        4Q06        1Q07       2Q07




                                       2Q07 annualized penetration rate 7%
Annualized penetration rate: Represents annualized quarterly net telephone additions as a percentage of homes passed at the               7
beginning of that period.
Charter Bundle Catalyst for Success

2Q07 Bundle Customer Mix


    42%                    17.7% Y/Y growth in bundled
                           customers
                           Triple play ARPU of $125 - $130
                           Triple play penetration
2Q07 Bundle Revenue Mix
                              77% of telephone customers
                              10% of customer relationships



   62%
    62%

                           42% of customers contributing
                             nearly two-thirds revenue

                                                              8
2Q07 Financial Performance

                                                         2Q07 Results
Revenue Summary                2Q Y/Y    YTD
($ millions)          2Q07     Growth   Growth
                                                 Double-digit revenue growth
Video                  $858       4%       4%
                                                 driven by HSI and telephone
High-Speed Internet     310      21%      22%
Telephone                80     176%     186%
                                                 ARPU increased 12.6%
Commercial               83      12%      14%
Other                   167       4%       2%
                                                 HSI revenue driven by customer
Total Revenues        $1,498     11%      11%
                                                 growth of 14.7% and a 5.6%
Operating Costs and
                                                 increase in ARPU
   Expenses             959      11%      10%

Adj EBITDA             $539      11%      12%    Commercial revenue
                                                 continuing strong growth
Cap Ex                  281      (6%)      7%




                 Consistent strategies generating improved results
                                                                                  9
Footnotes

Unless otherwise stated, all results are pro forma which reflect the acquisition of cable systems in January 2006 and the sales of
systems in 2006 and 2007 as if such transactions had occurred as of January 1, 2006.

Adjusted EBITDA and pro forma adjusted EBITDA are non-GAAP financial measures and should be considered in addition to, not as a
substitute for, 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 is defined as income from operations before special
charges, depreciation and amortization, loss on sale or retirement of assets, asset impairment charges, and stock compensation expense.
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 non-recurring items, and is unaffected by the Company’s capital structure or investment
activities. Adjusted EBITDA and pro forma adjusted EBITDA are liquidity measures used by Company management and its Board of
Directors to measure the Company’s ability to fund operations and its financing obligations. For this reason, it is a significant component of
Charter’s annual incentive compensation program. 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 for the Company. Company
management evaluates these costs through other financial measures.

The Company believes that adjusted EBITDA and pro forma adjusted EBITDA provide information useful to investors in assessing Charter’s
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 a reconciliation of pro forma adjusted EBITDA and adjusted EBITDA to the most directly comparable GAAP financial measure see the
Appendix.




                                                                                                                                                 10
Appendix




           11
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
                                 UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
                                                      (DOLLARS IN MILLIONS)

                                                                                         2005                            2006                            2007
                                                                                      Pro Forma                       Pro Forma                       Pro Forma
                                                                                    2nd Quarter (a)                 2nd Quarter (a)                 2nd Quarter (a)

Net cash flows from operating activities                                        $                    -          $                   (21)        $               (149)
Less: Purchases of property, plant and equipment                                                    (319)                          (290)                        (281)
Less: Change in accrued expenses related to capital expenditures                                      30                             (2)                          (7)

Free cash flow                                                                                      (289)                          (313)                        (437)

Interest on cash pay obligations (b)                                                                379                             424                          452
Purchases of property, plant and equipment                                                          319                             290                          281
Change in accrued expenses related to capital expenditures                                          (30)                              2                            7
Other, net                                                                                            3                               9                           18
Change in operating assets and liabilities                                                           81                              74                          218

Adjusted EBITDA                                                                 $                   463         $                   486         $                539


(a) Pro forma results reflect certain sales of cable systems in the third quarter of 2006, January 2007 and May 2007 as if they occurred as of January 1, 2006.

(b) Interest on cash pay obligations excludes accretion of original issue discounts on certain debt securities and amortization of deferred financing costs that are
reflected as interest expense in our consolidated statements of operations.

The above schedules are presented in order to reconcile adjusted EBITDA and free cash flows, non-GAAP measures, to the most directly comparable GAAP
measures in accordance with Section 401(b) of the Sarbanes-Oxley Act.

Mais conteúdo relacionado

Mais procurados

virgin media.Q2-07_Analyst_presentation
virgin media.Q2-07_Analyst_presentationvirgin media.Q2-07_Analyst_presentation
virgin media.Q2-07_Analyst_presentationfinance28
 
virgin media.FINAL_Q208_Presentation
virgin media.FINAL_Q208_Presentationvirgin media.FINAL_Q208_Presentation
virgin media.FINAL_Q208_Presentationfinance28
 
virgin media.6941D70A-3672-40B9-ACBC-FC9BD36E1DFF_Q4-08_Presentation_FINAL
virgin media.6941D70A-3672-40B9-ACBC-FC9BD36E1DFF_Q4-08_Presentation_FINALvirgin media.6941D70A-3672-40B9-ACBC-FC9BD36E1DFF_Q4-08_Presentation_FINAL
virgin media.6941D70A-3672-40B9-ACBC-FC9BD36E1DFF_Q4-08_Presentation_FINALfinance28
 
direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media & Entertainment...
direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media & Entertainment...direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media & Entertainment...
direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media & Entertainment...finance15
 
direc tv group Merrill Lynch Media Fall Preview Conference
direc tv group Merrill Lynch Media Fall Preview Conference  direc tv group Merrill Lynch Media Fall Preview Conference
direc tv group Merrill Lynch Media Fall Preview Conference finance15
 
Goldman Sachs NRDS Nov 2011
Goldman Sachs NRDS Nov 2011Goldman Sachs NRDS Nov 2011
Goldman Sachs NRDS Nov 2011MRSK Centre
 
Investment Forum VTB Capital "Russia Calling!" Oct 2011
Investment Forum VTB Capital "Russia Calling!" Oct 2011Investment Forum VTB Capital "Russia Calling!" Oct 2011
Investment Forum VTB Capital "Russia Calling!" Oct 2011MRSK Centre
 
Telecom Italia 1H 2011 Results (Patuano)
Telecom Italia 1H 2011 Results (Patuano)Telecom Italia 1H 2011 Results (Patuano)
Telecom Italia 1H 2011 Results (Patuano)Gruppo TIM
 
Financial Results for Q1 2011
Financial Results for Q1 2011Financial Results for Q1 2011
Financial Results for Q1 2011TVN S.A.
 
direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media Fall Preview
direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media Fall Preview  direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media Fall Preview
direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media Fall Preview finance15
 
Bma ptcl company_report
Bma ptcl company_reportBma ptcl company_report
Bma ptcl company_reportamjad iqbal
 

Mais procurados (13)

Q2 2007 Presentation
Q2 2007 PresentationQ2 2007 Presentation
Q2 2007 Presentation
 
virgin media.Q2-07_Analyst_presentation
virgin media.Q2-07_Analyst_presentationvirgin media.Q2-07_Analyst_presentation
virgin media.Q2-07_Analyst_presentation
 
virgin media.FINAL_Q208_Presentation
virgin media.FINAL_Q208_Presentationvirgin media.FINAL_Q208_Presentation
virgin media.FINAL_Q208_Presentation
 
virgin media.6941D70A-3672-40B9-ACBC-FC9BD36E1DFF_Q4-08_Presentation_FINAL
virgin media.6941D70A-3672-40B9-ACBC-FC9BD36E1DFF_Q4-08_Presentation_FINALvirgin media.6941D70A-3672-40B9-ACBC-FC9BD36E1DFF_Q4-08_Presentation_FINAL
virgin media.6941D70A-3672-40B9-ACBC-FC9BD36E1DFF_Q4-08_Presentation_FINAL
 
direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media & Entertainment...
direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media & Entertainment...direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media & Entertainment...
direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media & Entertainment...
 
direc tv group Merrill Lynch Media Fall Preview Conference
direc tv group Merrill Lynch Media Fall Preview Conference  direc tv group Merrill Lynch Media Fall Preview Conference
direc tv group Merrill Lynch Media Fall Preview Conference
 
Goldman Sachs NRDS Nov 2011
Goldman Sachs NRDS Nov 2011Goldman Sachs NRDS Nov 2011
Goldman Sachs NRDS Nov 2011
 
Investment Forum VTB Capital "Russia Calling!" Oct 2011
Investment Forum VTB Capital "Russia Calling!" Oct 2011Investment Forum VTB Capital "Russia Calling!" Oct 2011
Investment Forum VTB Capital "Russia Calling!" Oct 2011
 
Telecom Italia 1H 2011 Results (Patuano)
Telecom Italia 1H 2011 Results (Patuano)Telecom Italia 1H 2011 Results (Patuano)
Telecom Italia 1H 2011 Results (Patuano)
 
Financial Results for Q1 2011
Financial Results for Q1 2011Financial Results for Q1 2011
Financial Results for Q1 2011
 
direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media Fall Preview
direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media Fall Preview  direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media Fall Preview
direc tv group The DIRECTV Group, Inc. at Merrill Lynch Media Fall Preview
 
Bma ptcl company_report
Bma ptcl company_reportBma ptcl company_report
Bma ptcl company_report
 
EEI Presentation
EEI PresentationEEI Presentation
EEI Presentation
 

Destaque

charter communications 4Q2007_Earnings_Presentation_vFINAL
charter communications 4Q2007_Earnings_Presentation_vFINALcharter communications 4Q2007_Earnings_Presentation_vFINAL
charter communications 4Q2007_Earnings_Presentation_vFINALfinance34
 
charter communications 1Qslides_FINAL
charter communications 1Qslides_FINALcharter communications 1Qslides_FINAL
charter communications 1Qslides_FINALfinance34
 
charter communications 2Q_2008_Earnings_Presentation_FINAL
charter communications 2Q_2008_Earnings_Presentation_FINALcharter communications 2Q_2008_Earnings_Presentation_FINAL
charter communications 2Q_2008_Earnings_Presentation_FINALfinance34
 
pantry Wachovia_Consumer_Growth_Conference
pantry Wachovia_Consumer_Growth_Conferencepantry Wachovia_Consumer_Growth_Conference
pantry Wachovia_Consumer_Growth_Conferencefinance34
 
charter communications ar04
charter communications ar04charter communications ar04
charter communications ar04finance34
 
DGX07AR quest diagnostics
DGX07AR quest diagnostics DGX07AR quest diagnostics
DGX07AR quest diagnostics finance34
 
advanced micro devices Q207Financials
advanced micro devices Q207Financialsadvanced micro devices Q207Financials
advanced micro devices Q207Financialsfinance34
 
pantry Amended_and_Restated_Bylaws_of_The_Pantry_Inc
pantry Amended_and_Restated_Bylaws_of_The_Pantry_Incpantry Amended_and_Restated_Bylaws_of_The_Pantry_Inc
pantry Amended_and_Restated_Bylaws_of_The_Pantry_Incfinance34
 
pantry nominatingCharter
pantry nominatingCharterpantry nominatingCharter
pantry nominatingCharterfinance34
 

Destaque (10)

charter communications 4Q2007_Earnings_Presentation_vFINAL
charter communications 4Q2007_Earnings_Presentation_vFINALcharter communications 4Q2007_Earnings_Presentation_vFINAL
charter communications 4Q2007_Earnings_Presentation_vFINAL
 
charter communications 1Qslides_FINAL
charter communications 1Qslides_FINALcharter communications 1Qslides_FINAL
charter communications 1Qslides_FINAL
 
charter communications 2Q_2008_Earnings_Presentation_FINAL
charter communications 2Q_2008_Earnings_Presentation_FINALcharter communications 2Q_2008_Earnings_Presentation_FINAL
charter communications 2Q_2008_Earnings_Presentation_FINAL
 
pantry Wachovia_Consumer_Growth_Conference
pantry Wachovia_Consumer_Growth_Conferencepantry Wachovia_Consumer_Growth_Conference
pantry Wachovia_Consumer_Growth_Conference
 
CHT_06ar
CHT_06arCHT_06ar
CHT_06ar
 
charter communications ar04
charter communications ar04charter communications ar04
charter communications ar04
 
DGX07AR quest diagnostics
DGX07AR quest diagnostics DGX07AR quest diagnostics
DGX07AR quest diagnostics
 
advanced micro devices Q207Financials
advanced micro devices Q207Financialsadvanced micro devices Q207Financials
advanced micro devices Q207Financials
 
pantry Amended_and_Restated_Bylaws_of_The_Pantry_Inc
pantry Amended_and_Restated_Bylaws_of_The_Pantry_Incpantry Amended_and_Restated_Bylaws_of_The_Pantry_Inc
pantry Amended_and_Restated_Bylaws_of_The_Pantry_Inc
 
pantry nominatingCharter
pantry nominatingCharterpantry nominatingCharter
pantry nominatingCharter
 

Semelhante a charter communications 2Q07_Slides

liberty global Q407_slides
liberty global Q407_slidesliberty global Q407_slides
liberty global Q407_slidesfinance43
 
charter communications 3Q_2008_Earnings_Presentation_vFINAL
charter communications 3Q_2008_Earnings_Presentation_vFINALcharter communications 3Q_2008_Earnings_Presentation_vFINAL
charter communications 3Q_2008_Earnings_Presentation_vFINALfinance34
 
charter communications 3Q_2008_Earnings_Presentation_vFINAL
charter communications 3Q_2008_Earnings_Presentation_vFINALcharter communications 3Q_2008_Earnings_Presentation_vFINAL
charter communications 3Q_2008_Earnings_Presentation_vFINALfinance34
 
charter communications 1Q_2008_Earnings_Presentation
charter communications 1Q_2008_Earnings_Presentationcharter communications 1Q_2008_Earnings_Presentation
charter communications 1Q_2008_Earnings_Presentationfinance34
 
charter communications 1Q_2008_Earnings_Presentation
charter communications 1Q_2008_Earnings_Presentationcharter communications 1Q_2008_Earnings_Presentation
charter communications 1Q_2008_Earnings_Presentationfinance34
 
Telecom Italia 1Q 2011 Results (Patuano)
Telecom Italia 1Q 2011 Results (Patuano)Telecom Italia 1Q 2011 Results (Patuano)
Telecom Italia 1Q 2011 Results (Patuano)Gruppo TIM
 
VIVO - Apresentation of 3rd Quarter 2006 Results
VIVO - Apresentation of 3rd Quarter 2006 ResultsVIVO - Apresentation of 3rd Quarter 2006 Results
VIVO - Apresentation of 3rd Quarter 2006 ResultsVIVO - Investor Relations
 
virgin media.FINALVM_Q406_PressRelease
virgin media.FINALVM_Q406_PressReleasevirgin media.FINALVM_Q406_PressRelease
virgin media.FINALVM_Q406_PressReleasefinance28
 
virgin media.FINALVM_Q406_PressRelease
virgin media.FINALVM_Q406_PressReleasevirgin media.FINALVM_Q406_PressRelease
virgin media.FINALVM_Q406_PressReleasefinance28
 
liberty global Q3_2008__Presentation
liberty global Q3_2008__Presentationliberty global Q3_2008__Presentation
liberty global Q3_2008__Presentationfinance43
 
liberty global Q3_2008__Presentation
liberty global Q3_2008__Presentationliberty global Q3_2008__Presentation
liberty global Q3_2008__Presentationfinance43
 
Patrick D. Campbell, Senior Vice President and CFO
 	Patrick D. Campbell, Senior Vice President and CFO 	Patrick D. Campbell, Senior Vice President and CFO
Patrick D. Campbell, Senior Vice President and CFOfinance10
 
csx 2007_JP_Morgan_Conference-REF23640
csx  2007_JP_Morgan_Conference-REF23640csx  2007_JP_Morgan_Conference-REF23640
csx 2007_JP_Morgan_Conference-REF23640finance27
 
csx 2007_JP_Morgan_Conference-REF23640
csx  2007_JP_Morgan_Conference-REF23640csx  2007_JP_Morgan_Conference-REF23640
csx 2007_JP_Morgan_Conference-REF23640finance27
 
virgin media.Q3_08_Presentation
virgin media.Q3_08_Presentationvirgin media.Q3_08_Presentation
virgin media.Q3_08_Presentationfinance28
 
virgin media.Q3_08_Presentation
virgin media.Q3_08_Presentationvirgin media.Q3_08_Presentation
virgin media.Q3_08_Presentationfinance28
 
qwest communications Q_2Q07_er2
qwest communications Q_2Q07_er2qwest communications Q_2Q07_er2
qwest communications Q_2Q07_er2finance19
 
Com Hem - Interim Report Q2 2014 – Presentation
Com Hem - Interim Report Q2 2014 – PresentationCom Hem - Interim Report Q2 2014 – Presentation
Com Hem - Interim Report Q2 2014 – Presentationcomhemgroup
 

Semelhante a charter communications 2Q07_Slides (20)

liberty global Q407_slides
liberty global Q407_slidesliberty global Q407_slides
liberty global Q407_slides
 
Presentation 3Q10
Presentation 3Q10Presentation 3Q10
Presentation 3Q10
 
charter communications 3Q_2008_Earnings_Presentation_vFINAL
charter communications 3Q_2008_Earnings_Presentation_vFINALcharter communications 3Q_2008_Earnings_Presentation_vFINAL
charter communications 3Q_2008_Earnings_Presentation_vFINAL
 
charter communications 3Q_2008_Earnings_Presentation_vFINAL
charter communications 3Q_2008_Earnings_Presentation_vFINALcharter communications 3Q_2008_Earnings_Presentation_vFINAL
charter communications 3Q_2008_Earnings_Presentation_vFINAL
 
charter communications 1Q_2008_Earnings_Presentation
charter communications 1Q_2008_Earnings_Presentationcharter communications 1Q_2008_Earnings_Presentation
charter communications 1Q_2008_Earnings_Presentation
 
charter communications 1Q_2008_Earnings_Presentation
charter communications 1Q_2008_Earnings_Presentationcharter communications 1Q_2008_Earnings_Presentation
charter communications 1Q_2008_Earnings_Presentation
 
Telecom Italia 1Q 2011 Results (Patuano)
Telecom Italia 1Q 2011 Results (Patuano)Telecom Italia 1Q 2011 Results (Patuano)
Telecom Italia 1Q 2011 Results (Patuano)
 
VIVO - Apresentation of 3rd Quarter 2006 Results
VIVO - Apresentation of 3rd Quarter 2006 ResultsVIVO - Apresentation of 3rd Quarter 2006 Results
VIVO - Apresentation of 3rd Quarter 2006 Results
 
virgin media.FINALVM_Q406_PressRelease
virgin media.FINALVM_Q406_PressReleasevirgin media.FINALVM_Q406_PressRelease
virgin media.FINALVM_Q406_PressRelease
 
virgin media.FINALVM_Q406_PressRelease
virgin media.FINALVM_Q406_PressReleasevirgin media.FINALVM_Q406_PressRelease
virgin media.FINALVM_Q406_PressRelease
 
liberty global Q3_2008__Presentation
liberty global Q3_2008__Presentationliberty global Q3_2008__Presentation
liberty global Q3_2008__Presentation
 
liberty global Q3_2008__Presentation
liberty global Q3_2008__Presentationliberty global Q3_2008__Presentation
liberty global Q3_2008__Presentation
 
Patrick D. Campbell, Senior Vice President and CFO
 	Patrick D. Campbell, Senior Vice President and CFO 	Patrick D. Campbell, Senior Vice President and CFO
Patrick D. Campbell, Senior Vice President and CFO
 
2Q08 Presentation
2Q08 Presentation2Q08 Presentation
2Q08 Presentation
 
csx 2007_JP_Morgan_Conference-REF23640
csx  2007_JP_Morgan_Conference-REF23640csx  2007_JP_Morgan_Conference-REF23640
csx 2007_JP_Morgan_Conference-REF23640
 
csx 2007_JP_Morgan_Conference-REF23640
csx  2007_JP_Morgan_Conference-REF23640csx  2007_JP_Morgan_Conference-REF23640
csx 2007_JP_Morgan_Conference-REF23640
 
virgin media.Q3_08_Presentation
virgin media.Q3_08_Presentationvirgin media.Q3_08_Presentation
virgin media.Q3_08_Presentation
 
virgin media.Q3_08_Presentation
virgin media.Q3_08_Presentationvirgin media.Q3_08_Presentation
virgin media.Q3_08_Presentation
 
qwest communications Q_2Q07_er2
qwest communications Q_2Q07_er2qwest communications Q_2Q07_er2
qwest communications Q_2Q07_er2
 
Com Hem - Interim Report Q2 2014 – Presentation
Com Hem - Interim Report Q2 2014 – PresentationCom Hem - Interim Report Q2 2014 – Presentation
Com Hem - Interim Report Q2 2014 – Presentation
 

Mais de finance34

charter communications proxy00
charter communications proxy00charter communications proxy00
charter communications proxy00finance34
 
charter communications proxy00
charter communications proxy00charter communications proxy00
charter communications proxy00finance34
 
CHRT_000502__154_120
CHRT_000502__154_120CHRT_000502__154_120
CHRT_000502__154_120finance34
 
CHRT_000502__154_120
CHRT_000502__154_120CHRT_000502__154_120
CHRT_000502__154_120finance34
 
charter communications ar_00
charter communications ar_00charter communications ar_00
charter communications ar_00finance34
 
charter communications ar_00
charter communications ar_00charter communications ar_00
charter communications ar_00finance34
 
charter communications proxy02
charter communications proxy02charter communications proxy02
charter communications proxy02finance34
 
charter communications proxy02
charter communications proxy02charter communications proxy02
charter communications proxy02finance34
 
charter communications ar01
charter communications ar01charter communications ar01
charter communications ar01finance34
 
charter communications ar01
charter communications ar01charter communications ar01
charter communications ar01finance34
 
charter communications proxy03
charter communications proxy03charter communications proxy03
charter communications proxy03finance34
 
charter communications proxy03
charter communications proxy03charter communications proxy03
charter communications proxy03finance34
 
charter communications AR_2002
charter communications AR_2002charter communications AR_2002
charter communications AR_2002finance34
 
charter communications AR_2002
charter communications AR_2002charter communications AR_2002
charter communications AR_2002finance34
 
charter communications ar03
charter communications ar03charter communications ar03
charter communications ar03finance34
 
charter communications ar03
charter communications ar03charter communications ar03
charter communications ar03finance34
 
charter communications ar04
charter communications ar04charter communications ar04
charter communications ar04finance34
 

Mais de finance34 (19)

charter communications proxy00
charter communications proxy00charter communications proxy00
charter communications proxy00
 
charter communications proxy00
charter communications proxy00charter communications proxy00
charter communications proxy00
 
CHRT_000502__154_120
CHRT_000502__154_120CHRT_000502__154_120
CHRT_000502__154_120
 
CHRT_000502__154_120
CHRT_000502__154_120CHRT_000502__154_120
CHRT_000502__154_120
 
chtr_010502
chtr_010502chtr_010502
chtr_010502
 
chtr_010502
chtr_010502chtr_010502
chtr_010502
 
charter communications ar_00
charter communications ar_00charter communications ar_00
charter communications ar_00
 
charter communications ar_00
charter communications ar_00charter communications ar_00
charter communications ar_00
 
charter communications proxy02
charter communications proxy02charter communications proxy02
charter communications proxy02
 
charter communications proxy02
charter communications proxy02charter communications proxy02
charter communications proxy02
 
charter communications ar01
charter communications ar01charter communications ar01
charter communications ar01
 
charter communications ar01
charter communications ar01charter communications ar01
charter communications ar01
 
charter communications proxy03
charter communications proxy03charter communications proxy03
charter communications proxy03
 
charter communications proxy03
charter communications proxy03charter communications proxy03
charter communications proxy03
 
charter communications AR_2002
charter communications AR_2002charter communications AR_2002
charter communications AR_2002
 
charter communications AR_2002
charter communications AR_2002charter communications AR_2002
charter communications AR_2002
 
charter communications ar03
charter communications ar03charter communications ar03
charter communications ar03
 
charter communications ar03
charter communications ar03charter communications ar03
charter communications ar03
 
charter communications ar04
charter communications ar04charter communications ar04
charter communications ar04
 

Último

Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklosbeduinpower135
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.KumarJayaraman3
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.Arifa Saeed
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoCoinGecko
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfAdnet Communications
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent PreferencesGRAPE
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...mwangimwangi222
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707harshan90
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023SkillCircle
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneurabcisahunter
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdfAdnet Communications
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Commonwealth
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?Stephen Perrenod
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismBrian Lin
 
Stock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfStock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfMichael Silva
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Guillaume Ⓥ Sarlat
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources PresentationAdnet Communications
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxsonamyadav7097
 

Último (20)

Effects & Policies Of Bank Consolidation
Effects & Policies Of Bank ConsolidationEffects & Policies Of Bank Consolidation
Effects & Policies Of Bank Consolidation
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklos
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent Preferences
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707
 
Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
 
Stock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfStock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdf
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptx
 

charter communications 2Q07_Slides

  • 1. Charter Communications 2Q07 Earnings Call August 2, 2007 1
  • 2. Cautionary Statement Regarding Forward Looking Statements This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the quot;Securities Actquot;) and Section 21E of the Securities Exchange Act of 1934, as amended (the quot;Exchange Actquot;), regarding, among other things, our plans, strategies and prospects, both business and financial. Charter will not undertake to revise forward-looking projections to reflect events after this date. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under “Risk Factors” from time to time in our filings with the Securities and Exchange Commission (“SEC”). Many of the forward-looking statements contained in this presentation may be identified by the use of forward-looking words such as quot;believe,quot; quot;expect,quot; quot;anticipate,quot; quot;should,quot; quot;planned,quot; quot;will,quot; quot;may,quot; quot;intend,quot; quot;estimated,quot; quot;aim,quot; quot;on track,quot; quot;target,quot; quot;opportunityquot; and quot;potential,quot; among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this presentation are set forth in reports or documents that we file from time to time with the SEC, and include, but are not limited to: –the availability, in general, of funds to meet interest payment obligations under our debt and to fund our operations and necessary capital expenditures, either through cash flows from operating activities, further borrowings or other sources and, in particular, our ability to be able to provide under the applicable debt instruments such funds (by dividend, investment or otherwise) to the applicable obligor of such debt; –our ability to comply with all covenants in our indentures and credit facilities, any violation of which could trigger a default of our other obligations under cross-default provisions; –our ability to pay or refinance debt prior to or when it becomes due and/or refinance that debt through new issuances, exchange offers or otherwise, including restructuring our balance sheet and leverage position; –competition from other distributors, including incumbent telephone companies, direct broadcast satellite operators, wireless broadband providers and DSL providers; –difficulties in introducing and operating our telephone services, such as our ability to adequately meet customer expectations for the reliability of voice services, and our ability to adequately meet demand for installations and customer service; –our ability to sustain and grow revenues and cash flows from operating activities by offering video, high-speed Internet, telephone and other services and to maintain and grow our customer base, particularly in the face of increasingly aggressive competition; –our ability to obtain programming at reasonable prices or to adequately raise prices to offset the effects of higher programming costs; –general business conditions, economic uncertainty or slowdown; and –the effects of governmental regulation, including but not limited to local and state franchise authorities, on our business. 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 presentation. Unless otherwise stated, all results are pro forma which reflect the sales of certain systems in 2006 and 2007 as if such transactions had occurred as of January 1, 2006. 2
  • 3. Executing on Key Metrics Double-digit revenue and adjusted EBITDA growth for Consistent Strategies 3 consecutive quarters Best 2Q RGU net adds in 5 years Leveraging Foundation 12.6% ARPU growth • Bundle driving ARPU • Telephone supporting growth Continuing Momentum in bundled customers 3
  • 4. RGUs Drive Financial Growth Total RGUs 8.2% Y/Y 12,000,000 Growth Revenue Adj EBITDA Y/Y Growth Y/Y Growth 11,000,000 12% 11% 11% 10,000,000 10% 9% 8% 9,000,000 2Q06 3Q06 4Q06 1Q07 2Q07 6% 5% 2Q RGU net adds 4% 166,300 47% 2% 175,000 150,000 0% 125,000 2Q06 112,800 2Q07 100,000 75,000 50,000 4 2Q06 2Q07
  • 5. Advanced Services Support Video Growth Total video RGUs Advanced services expanding: 99,700 8,500,000 Net Gain Y/Y 50% Y/Y increase in customers with advanced set top boxes HD/DVR available to 85% digital 8,000,000 customers 2Q07 VOD revenue up 28% Y/Y 7,500,000 2Q06 3Q06 4Q06 1Q07 2Q07 HD OnDemand content launched Video $52.69 $55.38 ARPU 2Q07 video ARPU increased 5.1% Y/Y 5
  • 6. HSI Reinforces the Bundle Strategy 2Q07 HSI net adds 70,000 16% 60,300 HSI net adds increase nearly 16% 60,000 51,900 50,000 HSI revenues increase 21% Y/Y in 2Q07 40,000 5.6% ARPU increase Y/Y in 2Q07 30,000 2Q06 2Q07 HSI penetration increased to 24% YTD HSI net adds from 21% Y/Y 190,000 183,900 17% Growth supported by increased speed 180,000 and content 170,000 157,100 75% of customers receive 5Mbps or higher 160,000 150,000 Integrating content across platform 140,000 130,000 2Q06 2Q07 6
  • 7. Telephone Fueling RGU Growth Telephone net gains and penetration rates remain strong 150,000 125,000 2Q07 Telephone Stats 7.6M Telephone Homes Passed 100,000 700K Telephone Customers 75,000 9% Telephone Penetration (percent of Telephone HP) 50,000 9.5 – 10M Homes Passed Guidance for YE 2008 25,000 2Q06 3Q06 4Q06 1Q07 2Q07 2Q07 annualized penetration rate 7% Annualized penetration rate: Represents annualized quarterly net telephone additions as a percentage of homes passed at the 7 beginning of that period.
  • 8. Charter Bundle Catalyst for Success 2Q07 Bundle Customer Mix 42% 17.7% Y/Y growth in bundled customers Triple play ARPU of $125 - $130 Triple play penetration 2Q07 Bundle Revenue Mix 77% of telephone customers 10% of customer relationships 62% 62% 42% of customers contributing nearly two-thirds revenue 8
  • 9. 2Q07 Financial Performance 2Q07 Results Revenue Summary 2Q Y/Y YTD ($ millions) 2Q07 Growth Growth Double-digit revenue growth Video $858 4% 4% driven by HSI and telephone High-Speed Internet 310 21% 22% Telephone 80 176% 186% ARPU increased 12.6% Commercial 83 12% 14% Other 167 4% 2% HSI revenue driven by customer Total Revenues $1,498 11% 11% growth of 14.7% and a 5.6% Operating Costs and increase in ARPU Expenses 959 11% 10% Adj EBITDA $539 11% 12% Commercial revenue continuing strong growth Cap Ex 281 (6%) 7% Consistent strategies generating improved results 9
  • 10. Footnotes Unless otherwise stated, all results are pro forma which reflect the acquisition of cable systems in January 2006 and the sales of systems in 2006 and 2007 as if such transactions had occurred as of January 1, 2006. Adjusted EBITDA and pro forma adjusted EBITDA are non-GAAP financial measures and should be considered in addition to, not as a substitute for, 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 is defined as income from operations before special charges, depreciation and amortization, loss on sale or retirement of assets, asset impairment charges, and stock compensation expense. 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 non-recurring items, and is unaffected by the Company’s capital structure or investment activities. Adjusted EBITDA and pro forma adjusted EBITDA are liquidity measures used by Company management and its Board of Directors to measure the Company’s ability to fund operations and its financing obligations. For this reason, it is a significant component of Charter’s annual incentive compensation program. 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 for the Company. Company management evaluates these costs through other financial measures. The Company believes that adjusted EBITDA and pro forma adjusted EBITDA provide information useful to investors in assessing Charter’s 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 a reconciliation of pro forma adjusted EBITDA and adjusted EBITDA to the most directly comparable GAAP financial measure see the Appendix. 10
  • 11. Appendix 11
  • 12. CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES (DOLLARS IN MILLIONS) 2005 2006 2007 Pro Forma Pro Forma Pro Forma 2nd Quarter (a) 2nd Quarter (a) 2nd Quarter (a) Net cash flows from operating activities $ - $ (21) $ (149) Less: Purchases of property, plant and equipment (319) (290) (281) Less: Change in accrued expenses related to capital expenditures 30 (2) (7) Free cash flow (289) (313) (437) Interest on cash pay obligations (b) 379 424 452 Purchases of property, plant and equipment 319 290 281 Change in accrued expenses related to capital expenditures (30) 2 7 Other, net 3 9 18 Change in operating assets and liabilities 81 74 218 Adjusted EBITDA $ 463 $ 486 $ 539 (a) Pro forma results reflect certain sales of cable systems in the third quarter of 2006, January 2007 and May 2007 as if they occurred as of January 1, 2006. (b) Interest on cash pay obligations excludes accretion of original issue discounts on certain debt securities and amortization of deferred financing costs that are reflected as interest expense in our consolidated statements of operations. The above schedules are presented in order to reconcile adjusted EBITDA and free cash flows, non-GAAP measures, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act.