Charter Communications, Inc. (NASDAQ:CHTR) Q1 2023 Earnings Conference Call April 28, 2023 8:30 AM ET Company Participants Stefan Anninger - Investor Relations Chris Winfrey - President and Chief Executive Officer Tom Rutledge - Executive Chairman Jessica Fischer - Chief Financial Officer Conference Call Participants Doug Mitchelson - Credit Suisse Ben Swinburne - Morgan Stanley John Hodulik - UBS Phil Cusick - JPMorgan Peter Supino - Wolfe Research Jonathan Chaplin - New Street Craig Moffett - MoffettNatha ...

Stock Repurchases and Shareholder Returns - Charter purchased approximately 2.3 million shares of its Class A common stock for approximately $863 million during Q1 2023, including 0.1 million shares from Liberty Broadband at an average price of $345.53 per share[192] - Charter Holdings purchased 0.3 million common units from A/N at an average price of $376.32 per unit, totaling $122 million in Q1 2023[192] - As of March 31, 2023, Charter had remaining board authority to purchase an additional $305 million of its Class A common stock and/or Charter Holdings common units[192] - Charter repurchased 1,130,701 shares in January 2023 at an average price of $369.43 per share, 840,442 shares in February at $394.80 per share, and 501,772 shares in March at $354.90 per share[209] - The company had approximately $771 million remaining under its share repurchase program as of January 31, 2023, which decreased to $305 million by March 31, 2023[209] - The company repurchased 2,304,419 shares of Charter Class A common stock for $863 million in Q1 2023, with remaining board authority to purchase an additional $305 million[55][56] Financial Performance and Metrics - Adjusted EBITDA for Q1 2023 was $5.35 billion, compared to $5.213 billion in Q1 2022, reflecting a 2.6% increase[147] - Free cash flow for Q1 2023 decreased to $664 million from $1.8 billion in Q1 2022, a 63.1% decline[147] - Net income attributable to Charter shareholders for Q1 2023 was $1.021 billion, down from $1.203 billion in Q1 2022, a 15.1% decrease[147] - Revenue for Q1 2023 increased to $13.653 billion, up from $13.2 billion in Q1 2022, representing a growth of approximately 3.4%[32] - Operating income rose to $2.926 billion in Q1 2023, compared to $2.771 billion in Q1 2022, reflecting a 5.6% increase[32] - Net income attributable to Charter shareholders was $1.021 billion in Q1 2023, down from $1.203 billion in Q1 2022, a decrease of 15.1%[43] - Basic earnings per share (EPS) decreased to $6.74 in Q1 2023 from $7.05 in Q1 2022, while diluted EPS dropped to $6.65 from $6.90[33] - Adjusted EBITDA grew by 2.6% to $5.350 billion, and income from operations increased by 5.6% to $2.926 billion for the three months ended March 31, 2023[72] - Revenue increased to $13.653 billion in 2023 from $13.200 billion in 2022, representing a growth of 3.4%[82] - Net income attributable to Charter shareholders decreased to $1.021 billion in 2023 from $1.203 billion in 2022, a decline of 15.1%[82] - Net income attributable to Charter shareholders decreased to $1,021 million in Q1 2023 from $1,203 million in Q1 2022[121] Capital Expenditures and Investments - Total capital expenditures increased from $1.857 billion in Q1 2022 to $2.464 billion in Q1 2023, with significant increases in customer premise equipment (from $469 million to $537 million) and upgrade/rebuild (from $159 million to $289 million)[198] - Subsidized rural construction line extensions more than doubled from $192 million in Q1 2022 to $371 million in Q1 2023[198] - Purchases of property, plant, and equipment in Q1 2023 totaled $2.464 billion, up from $1.857 billion in Q1 2022, a 32.7% increase[21] - Capital expenditures for Q1 2023 were $1.592 billion, down from $1.792 billion in Q1 2022, a reduction of 11.2%[40] - Charter spent $391 million on its subsidized rural construction initiative in Q1 2023, activating approximately 44,000 subsidized rural passings[71] Debt and Financing - Long-term debt stood at $95.973 billion as of March 31, 2023, slightly down from $96.093 billion at the end of 2022[19] - Long-term debt increased with the issuance of $1.1 billion in senior unsecured notes in February 2023, used for general corporate purposes and stock buybacks[41] - Charter Operating amended its credit agreement in March 2023, adding a $750 million Term B-3 loan with a maturity in 2030[42] - Charter's senior unsecured notes had a fair value of $23.638 billion as of March 31, 2023, compared to $22.426 billion as of December 31, 2022[52] - The company's credit facilities had a fair value of $14.267 billion as of March 31, 2023, classified within Level 2 of the valuation hierarchy[60] Cash Flow and Liquidity - Charter's cash and cash equivalents decreased from $645 million as of December 31, 2022 to $534 million as of March 31, 2023[195] - Net cash flows from operating activities for Q1 2023 were $3.323 billion, compared to $3.647 billion in Q1 2022, a 8.9% decrease[21] - Cash and cash equivalents at the end of Q1 2023 were $534 million, down from $645 million at the end of 2022[19] Revenue and Cost Analysis - Programming costs increased by $178 million in Q1 2023 compared to Q1 2022[148] - Other costs of revenue rose by $220 million in Q1 2023 compared to the same period in 2022[148] - Programming costs remained high at $1.882 billion in Q1 2023, slightly down from $1.914 billion in Q1 2022[40] - Labor costs decreased to $959 million in Q1 2023 from $1.314 billion in Q1 2022, a significant reduction of 27%[40] - Interest expense increased to $1.265 billion in Q1 2023, up from $1.060 billion in Q1 2022, reflecting higher debt levels[43] - Total revenues grew by $453 million (3.4%) for the three months ended March 31, 2023, compared to the same period in 2022, driven by price adjustments and increases in residential mobile, Internet, and commercial customers[74] - Internet revenue increased by 4.9% to $5.718 billion, while mobile service revenue surged by 28.3% to $497 million for the three months ended March 31, 2023[70] - Internet revenue grew to $5.718 billion in 2023 from $5.452 billion in 2022, while video revenue declined to $4.254 billion from $4.346 billion[102] - Mobile service revenue increased to $497 million in 2023 from $387 million in 2022, reflecting a growth of 28.4%[102] - Residential revenue rose to $10.842 billion in 2023 from $10.576 billion in 2022, while commercial revenue increased to $1.773 billion from $1.731 billion[102] - Other revenues increased by $173 million in Q1 2023 compared to Q1 2022, primarily due to higher mobile device sales[132] - Advertising sales revenues decreased by $28 million in Q1 2023 compared to Q1 2022, primarily due to a decrease in political and local ad revenue[131] - Programming costs decreased to $2.8 billion in Q1 2023 from $3.0 billion in Q1 2022, representing 33% and 37% of total operating costs and expenses, respectively[134] Customer Metrics and Growth - The company added 686,000 mobile lines, 76,000 Internet customers, and 16,000 residential and SMB customer relationships (excluding mobile-only customers) in Q1 2023[78] - Residential customer relationships slightly decreased to 29,996,000 in 2023 from 30,035,000 in 2022, while SMB customer relationships increased to 2,215,000 from 2,163,000[84] - Monthly residential revenue per customer increased to $120.56 in 2023 from $117.58 in 2022, while monthly SMB revenue per customer decreased to $164.58 from $165.58[84] - Total mobile lines increased significantly to 5,978,000 in 2023 from 3,937,000 in 2022, driven by growth in both residential and SMB segments[84] - Residential Internet customers grew by 178,000 from March 31, 2022 to March 31, 2023[127] - Residential video customers decreased by 833,000 from March 31, 2022 to March 31, 2023[128] - Residential mobile service revenues increased by $110 million in Q1 2023 compared to Q1 2022, driven by an increase of 1,977,000 mobile lines[139] - SMB customers grew by 52,000 from March 31, 2022 to March 31, 2023[140] - Enterprise PSUs increased by 14,000 from March 31, 2022 to March 31, 2023[141] Assets and Liabilities - Total current assets as of March 31, 2023, were $4.067 billion, up from $4.017 billion at the end of 2022[19] - Accounts receivable, net, included $632 million of current equipment installment plan receivables as of March 31, 2023, up from $577 million as of December 31, 2022[102] - The fair value of the company's cross-currency derivatives was $565 million as of March 31, 2023, slightly down from $570 million as of December 31, 2022[101] Technology and Network Investments - Charter's Advanced WiFi service, offering speeds up to 1 Gbps, is available to all Internet customers, with plans to upgrade to multi-gigabit speeds over the next three years[71] - The company continues to invest in its 5G mobile data-only network leveraging CBRS Priority Access Licenses[71] Compensation and Expenses - Stock compensation expense increased to $208 million in Q1 2023 from $147 million in Q1 2022[119]

Financial Data and Key Metrics Changes - For the full year 2022, consolidated revenue grew by 4.5% and adjusted EBITDA increased by close to 5% [11][36] - In Q4 2022, total consolidated revenue was up 3.5% year-over-year [56] - Net income attributable to Charter shareholders in Q4 was $1.2 billion, down from $1.6 billion in the same quarter last year [58] - Free cash flow for Q4 was $1.1 billion, a decline from $2.3 billion in Q4 2021, while full year free cash flow was $6.1 billion compared to $8.7 billion in 2021 [61] Business Line Data and Key Metrics Changes - Internet customers increased by 105,000 in Q4 and 344,000 over the last 12 months, while video customers declined by 144,000 [52] - Mobile lines grew by a record 615,000 in Q4, totaling 5.3 million lines by the end of 2022, with full year net additions of over 1.7 million [10][25] - SMB revenue grew by 2.4% year-over-year, and enterprise revenue was up by 4.9% year-over-year [55] Market Data and Key Metrics Changes - The company noted a slight increase in fiber overbuild and a small market share return to mobile-only services [53] - The overall market activity remains low, impacting gross additions across the footprint [31] Company Strategy and Development Direction - The company is focused on three broadband initiatives: evolution, expansion, and execution, aimed at driving customer growth and long-term cash flow [11][28] - The rural construction initiative has shown promising results, with over 200,000 new rural passings constructed in 2022 and a penetration rate of about 40% [14][41] - The company plans to evolve its network to offer symmetrical and multi-gigabit speeds at a lower cost than competitors [26][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the industry's future despite a challenging market backdrop, citing strong mobile line growth and customer acquisition opportunities [10][11] - The company anticipates that the market volume will be the biggest variable affecting broadband net adds in 2023 [134] - Management noted that while bad debt has increased, it remains below pre-COVID levels [57] Other Important Information - The company repurchased 3.6 million shares in Q4, totaling about $1.3 billion, and 23.8 million shares for the full year, totaling approximately $11.7 billion [62][63] - Capital expenditures for Q4 totaled $2.9 billion, with a full year total of $9.4 billion, reflecting higher spending on rural construction initiatives [37][38] Q&A Session Summary Question: What is the penetration of accounts with wireless currently? - Management indicated that approximately 3 million relationships have mobile services, with a significant portion of new connects attaching mobile as well [65][66] Question: Can you provide context around the strength in wireless this quarter? - The majority of wireless net additions were driven by existing Internet customers upgrading, with the potential for Spectrum One to significantly impact Internet net additions over time [45][46] Question: What gives confidence that broadband net adds could be better in 2023? - Management highlighted targeted investments in personnel and a focus on reducing churn through improved service and sales capabilities as key factors for expected growth [134][135] Question: How are programming costs expected to trend? - Programming costs per subscriber are expected to remain flat year-over-year, influenced by customer mix rather than changes in programming rates [123][132] Question: What is the outlook for the BEAD program and rural builds? - The company expects to participate in the BEAD program, with line extension capital expenditures projected at approximately $4 billion for 2024 and 2025, contingent on winning funding [40][72]

Washington, D.C. 20549 ______________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Securities registered pursuant to section 12(g) of the Act: None If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial ...

Financial Data and Key Metrics Changes - The company generated $1.2 billion of net income attributable to shareholders in Q3, essentially flat year-over-year, with higher adjusted EBITDA offset by higher interest expense [39] - Consolidated third quarter revenue was up 3.1% year-over-year [33] - Adjusted EBITDA grew by 2.4% year-over-year in the quarter [38] Business Line Data and Key Metrics Changes - Internet customers increased by 75,000 in Q3, while video customers declined by 204,000 and wireline voice declined by 271,000 [28] - Mobile line growth reached a record 396,000 net additions, with nearly 4.7 million total mobile lines as of the end of the quarter [8][28] - SMB revenue grew by 1.9% year-over-year, while enterprise revenue was up by 2.6% year-over-year [31] Market Data and Key Metrics Changes - The company noted that customer relationship churn remains very low due to current consumer behavior [8] - The competitive landscape has seen some lower gross additions attributed to DSL conversion to new entrants in fixed wireless [20] - The company captured only 28% of the combined household spend on wireline and mobile connectivity within its footprint, indicating significant underpenetration [9] Company Strategy and Development Direction - The company is focused on evolving its network to offer the fastest speeds in a cost-efficient manner, including upgrades to DOCSIS 4.0 [12] - The launch of Spectrum 1 is expected to drive accelerating mobile line growth [28] - The company aims to maintain a state-of-the-art network that delivers compelling converged connectivity services at attractive prices [12][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow despite current low activity levels in the market [18] - The CEO transition is seen as an opportunity to update investors on future strategies and network evolution plans [24] - Management acknowledged inflationary pressures affecting costs but emphasized a strategy to provide value to consumers [74] Other Important Information - The company expects minimal financial impact from Hurricane Ian, with service restoration completed quickly [27] - Capital expenditures totaled $2.4 billion in Q3, driven by rural construction initiatives [40] - The company repurchased 5.8 million shares totaling about $2.6 billion at an average price of $445 per share [44] Q&A Session Questions and Answers Question: What is the strategy behind the Spectrum One promotion? - Management clarified that Spectrum One packages seamless connectivity and is offered at a promotional price without changing the underlying product pricing [49][50] Question: Are there any potential strategy shifts with the new CEO? - The incoming CEO indicated that there would not be seismic shifts in strategy, emphasizing continuity in the approach to creating shareholder value [54] Question: What are the implications of broadband costs and competition? - Management acknowledged inflationary pressures on costs but emphasized a strategy focused on value provision and market share growth [74][76] Question: How is the company addressing the current low activity levels in the market? - Management noted that the primary issue is market activity, and they expect improvements as market conditions normalize [20][113]

Third Quarter 2022 Results October 28, 2022 Cautionary Statement Regarding Forward-Looking Statements This quarterly presentation 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 fo ...

Financial Performance - Charter Communications reported revenues of $13.55 billion for Q3 2022, a 3.1% increase from $13.15 billion in Q3 2021[26] - Operating costs and expenses for Q3 2022 were $8.25 billion, up from $7.96 billion in Q3 2021, reflecting a 3.6% increase[26] - Net income attributable to Charter shareholders for Q3 2022 was $1.19 billion, compared to $1.22 billion in Q3 2021, a decrease of 2.6%[26] - Basic earnings per share for Q3 2022 were $7.51, an increase from $6.69 in Q3 2021, representing a growth of 12.3%[26] - Consolidated net income for the nine months ended September 30, 2022, was $4,464 million, an increase from $3,486 million in the same period of 2021[30] - The company reported a net income attributable to shareholders of $1,185 million for the three months ended September 30, 2022, compared to $1,217 million in 2021[114] - Diluted earnings per common share for the nine months ended September 30, 2022, was $23.06, compared to $15.78 for the same period in 2021, reflecting a 46.5% increase[90] Assets and Liabilities - Total assets as of September 30, 2022, were $143.67 billion, compared to $142.49 billion as of December 31, 2021, showing a slight increase[25] - Long-term debt increased to $95.51 billion as of September 30, 2022, from $88.56 billion at the end of 2021, indicating a rise of 7.3%[25] - Charter's total current liabilities were $11.60 billion as of September 30, 2022, down from $12.46 billion at the end of 2021, a decrease of 6.9%[25] - Total shareholders' equity as of September 30, 2022, was $12,350 million, down from $21,526 million as of September 30, 2021[29] - The accumulated deficit as of September 30, 2022, was $(8,816) million, an increase from $(2,151) million as of September 30, 2021[29] Cash Flow and Capital Expenditures - Cash flows from operating activities for the nine months ended September 30, 2022, were $11,138 million, compared to $12,013 million in 2021[30] - Free cash flow for the three months ended September 30, 2022, was $1.5 billion, down from $2.5 billion in the same period of 2021, and for the nine months it was $5.0 billion compared to $6.4 billion[152][161] - Capital expenditures increased to $2.4 billion in Q3 2022 from $1.9 billion in Q3 2021, and for the nine months ended September 30, 2022, it was $6.5 billion compared to $5.6 billion in the same period of 2021[170][174] Revenue Streams - Internet revenue for the three months ended September 30, 2022, was $5.57 billion, up from $5.36 billion in 2021, reflecting a year-over-year increase of 3.9%[70] - Spectrum-branded mobile services generated $750 million in revenue for Q3 2022, compared to $535 million in Q3 2021, indicating a 40.2% year-over-year increase[104] - SMB revenues increased by $36 million for the three months ended September 30, 2022, compared to the same period in 2021, driven by a growth of 69,000 SMB customers[121] - Advertising sales revenues rose by $90 million during the three months ended September 30, 2022, primarily due to an increase in political revenue[123] Customer Metrics - The total number of customer relationships increased to 32.14 million as of September 30, 2022, from 31.95 million a year earlier, marking a growth of 0.6%[109] - The company added 396,000 mobile lines and 75,000 Internet customers in Q3 2022[103] - The company experienced a loss of 645,000 residential video customers from September 30, 2021, to September 30, 2022, impacting video revenues[117] - As of September 30, 2022, the company had approximately 151,700 customers over 60 days past due, up from 119,200 in 2021, indicating a significant increase in overdue accounts[111] Debt and Financing - The company issued $1.5 billion of 6.375% senior unsecured notes due September 2029, with proceeds used for general corporate purposes[49] - The principal amount of the company's debt as of September 30, 2022, was $96.8 billion, consisting of $13.4 billion of credit facility debt, $56.7 billion of investment grade senior secured notes, and $26.7 billion of high-yield senior unsecured notes[151] - Long-term debt borrowings for the nine months ended September 30, 2022, amounted to $21,528 million, up from $15,263 million in 2021[30] Operational Costs - Programming costs for the three months ended September 30, 2022, were approximately $2.9 billion, representing 35% of total operating costs, compared to $3.0 billion and 37% in the same period of 2021[128] - Costs to service customers increased by $83 million and $271 million during the three and nine months ended September 30, 2022, respectively, primarily due to higher bad debt and fuel costs[130] - Marketing expenses rose by $73 million and $213 million during the three and nine months ended September 30, 2022, respectively, driven by higher labor costs and staffing levels[131] Corporate Governance and Compliance - Charter's Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of the end of the reporting period[179] - There was no change in internal control over financial reporting that materially affected the reporting during the quarter ended September 30, 2022[181] - Charter's management evaluated the effectiveness of its disclosure controls and procedures, providing reasonable assurances for compliance with SEC rules[180]

Charter Communications Inc (NASDAQ:CHTR) Q2 2022 Earnings Conference Call July 29, 2022 8:30 AM ET Company Participants Stefan Anninger - Head of IR Tom Rutledge - Chairman and CEO Jessica Fischer - CFO Chris Winfrey - COO Conference Call Participants Ben Swinburne - Morgan Stanley Vijay Jayant - Evercore Craig Moffett - MoffettNathanson Doug Mitchelson - Credit Suisse Jonathan Chaplin - New Street Bryan Kraft - Deutsche Bank Phil Cusick - JPMorgan Peter Supino - Wolf Research Kutgun Maral - RBC Capital Mar ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________ FORM 10-Q ______________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number: 001-33664 Charter Communications, Inc. (Exact name of registrant as specified in its charter) Delaware ...

Summary of Charter Communications, Inc. Conference Call Company Overview - **Company**: Charter Communications, Inc. (NASDAQ: CHTR) - **Event**: Credit Suisse Communications Conference - **Date**: June 15, 2022 - **Participants**: Jessica Fischer (CFO), Douglas Mitchelson (Credit Suisse Analyst) Key Points Company Positioning and Growth Strategy - Charter is positioned well with strong customer and financial growth, supported by a well-engineered balance sheet [3][4] - Growth strategies include: - Investment in customer service systems and infrastructure [3] - Expansion of footprint through rail construction initiatives and network upgrades [4] - Focus on mobile services, which present significant growth opportunities [4] Consumer Health and Economic Environment - Charter reported the lowest-ever levels of nonpaid churn, indicating strong consumer health [7] - The company is actively participating in the Affordable Connectivity Program (ACP) to support eligible consumers [7][8] - Despite inflationary pressures, the impact on the P&L has been relatively insubstantial, and the company is not currently raising prices [9][10] Broadband Market Dynamics - Charter views broadband as a continuing growth business, with opportunities to take market share due to superior technology [12] - The company is differentiating itself through video and voice services, as well as mobile offerings [12][13] - Positive net Internet additions are expected in Q2, despite some customer disenrollment from subsidy programs [19][20] Competitive Landscape and Subscriber Growth - The slowdown in subscriber growth is attributed more to market conditions than competition from fixed wireless and fiber [21][23] - Charter believes that fixed wireless competition has a minimal impact on its overall subscriber base [24][25] Mobile Services and Customer Loyalty - Charter has significant room for growth in mobile services, with a current customer base of under 2.5 million out of 54 million passings [31] - The company is working on creating a converged connectivity product to enhance customer experience and reduce churn [33][38] Pricing Strategy - Charter maintains consistent pricing across its footprint, adapting promotions based on competitive pricing [35][36] - The company offers competitive bundled services that provide significant savings to consumers [36] Capital Expenditure and Investment Strategy - Charter is focused on capital efficiency, particularly in network upgrades, and expects to maintain or reduce capital intensity over time [15][59] - The company is committed to rural broadband expansion and sees potential for good returns on investment [44] M&A and Capital Allocation - Charter is open to M&A opportunities that create shareholder value while continuing to invest in business growth [62][63] - The company plans to maintain its leverage targets despite changes in the interest rate environment [65] Video Strategy - Charter's joint venture with Comcast aims to enhance its streaming video platform, allowing for a broader range of consumer offerings [48][50] Additional Insights - Charter is leveraging technology for proactive maintenance to improve customer service and reduce operational costs [55][56] - The company is focused on creating a better customer experience through innovative service delivery methods [56] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Charter Communications' growth potential and market positioning.