Charter Communications Q3 2024 10-Q Filing

TL;DR

**Charter Comm's Q3 10-Q is in. Financials and ops details for investors.**

AI Summary

Charter Communications, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter of 2024. Key financial figures and share information are presented, reflecting the company's ongoing business activities and market position.

Why It Matters

This filing provides investors with a detailed look at Charter's financial health and operational performance during the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are standard disclosures for public companies, but the specific financial details and market conditions reported can introduce varying levels of risk.

Key Numbers

• 142,195,750 — Shares (Number of shares outstanding as of 2024-09-30)
• 145,225,458 — Shares (Number of shares outstanding as of 2023-12-31)

Key Players & Entities

• CHARTER COMMUNICATIONS, INC. /MO/ (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241101 (date) — Filing date

FAQ

Filing Documents

• chtr-20240930.htm (10-Q) — 1166KB
• chtr9302024exh-311.htm (EX-31.1) — 10KB
• chtr9302024exh-312.htm (EX-31.2) — 10KB
• chtr9302024exh-321.htm (EX-32.1) — 4KB
• chtr9302024exh-322.htm (EX-32.2) — 5KB
• chtr-20240930_g1.jpg (GRAPHIC) — 162KB
• 0001091667-24-000123.txt ( ) — 5267KB
• chtr-20240930.xsd (EX-101.SCH) — 35KB
• chtr-20240930_cal.xml (EX-101.CAL) — 56KB
• chtr-20240930_def.xml (EX-101.DEF) — 115KB
• chtr-20240930_lab.xml (EX-101.LAB) — 347KB
• chtr-20240930_pre.xml (EX-101.PRE) — 235KB
• chtr-20240930_htm.xml (XML) — 703KB

Financial Statements Charter Communications, Inc. and Subsidiaries

Financial Statements Charter Communications, Inc. and Subsidiaries Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 1 Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 2 Consolidated Statements of Changes in Shareholders' Equity for the three and nine months ended September 30, 2024 and 2023 3 Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 6 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 3 Quantitative and Qualitative Disclosure About Market Risk 26 Item 4

Controls and Procedures

Controls and Procedures 26 PART II OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 28 Item 1A

Risk Factors

Risk Factors 28 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 29 Item 6 Exhibits 29

Signatures

Signatures S- 1 Exhibit Index E- 1 This quarterly report on Form 10-Q is for the three and nine months ended September 30, 2024. The United States Securities and Exchange Commission ("SEC") allows us to "incorporate by reference" information that we file with the SEC, which means that we can disclose important information to you by referring you directly to those documents. In this quarterly report, "Charter," "we," "us" and "our" refer to Charter Communications, Inc. and its subsidiaries. i CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This quarterly report 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 including, without limitation, the forward-looking statements set forth in Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this quarterly report. Although we believe that our plans, intentions and expectations as reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under "Risk Factors" in Part I, Item 1A of our most recent Form 10-K filed with the SEC. Many of the forward-looking statements contained in this quarterly report may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," "aim," "on track," "target," "opportunity," "tentative," "positioning," "designed," "create," "predict," "project," "initiatives," "seek," "would," "could," "continue," "ongoing," "upside," "increases," "grow," "focused on" and

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in millions, except share data) September 30, 2024 December 31, 2023 (unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 721 $ 709 Accounts receivable, less allowance for doubtful accounts of $ 206 and $ 268 , respectively 3,067 2,965 Prepaid expenses and other current assets 704 458 Total current assets 4,492 4,132 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net of accumulated depreciation of $ 38,868 and $ 37,751 , respectively 41,846 39,520 Customer relationships, net of accumulated amortization of $ 17,142 and $ 16,523 , respectively 1,148 1,745 Franchises 67,455 67,396 Goodwill 29,668 29,668 Total investment in cable properties, net 140,117 138,329 OTHER NONCURRENT ASSETS 4,762 4,732 Total assets $ 149,371 $ 147,193 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable, accrued and other current liabilities $ 11,362 $ 11,214 Current portion of long-term debt 1,798 2,000 Total current liabilities 13,160 13,214 LONG-TERM DEBT 93,517 95,777 EQUIPMENT INSTALLMENT PLAN FINANCING FACILITY 998 — DEFERRED INCOME TAXES 18,983 18,954 OTHER LONG-TERM LIABILITIES 4,659 4,530 SHAREHOLDERS' EQUITY: Class A common stock; $ 0.001 par value; 900 million shares authorized; 145,845,968 and 145,225,458 shares issued, respectively — — Class B common stock; $ 0.001 par value; 1,000 shares authorized; 1 share issued and outstanding — — Preferred stock; $ 0.001 par value; 250 million shares authorized; no shares issued and outstanding — — Additional paid-in capital 23,845 23,346 Accumulated deficit ( 8,643 ) ( 12,260 ) Treasury stock at cost; 3,650,218 and no shares, respectively ( 1,103 ) — Total Charter shareholders' equity 14,099 11,086 Noncontrolling interests 3,955 3,632 Total shareholders' equity 18,054 14,718 Total liabilities and shareholders' equity $ 149,3

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (dollars in millions, except per share amounts and where indicated) 1. Organization and Basis of Presentation Organization Charter Communications, Inc. (together with its controlled subsidiaries, "Charter," or the "Company") is a leading broadband connectivity company and cable operator. Over an advanced communications network, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet , TV, Mobile and Voice. For small and medium-sized companies, Spectrum Business delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise provides highly customized, fiber-based solutions. Spectrum Reach delivers tailored advertising and production for the modern media landscape. The Company also distributes award-winning news coverage and sports programming to its customers through Spectrum Networks. Charter is a holding company whose principal asset is a controlling equity interest in Charter Communications Holdings, LLC ("Charter Holdings"), an indirect owner of Charter Communications Operating, LLC ("Charter Operating") under which substantially all of the operations reside. All significant intercompany accounts and transactions among consolidated entities have been eliminated. The Company's operations are managed and reported to its Chief Executive Officer ("CEO"), the Company's chief operating decision maker, on a consolidated basis. The CEO assesses performance and allocates resources based on the consolidated results of operations. Under this organizational and reporting structure, the Company has one reportable segment. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the rules and regulati

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (dollars in millions, except per share amounts and where indicated) 2. Accounts Payable, Accrued and Other Current Liabilities Accounts payable, accrued and other current liabilities consist of the following as of September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 Accounts payable – trade $ 855 $ 931 Deferred revenue 467 509 Accrued and other current liabilities: Programming costs 1,623 1,736 Labor 1,280 1,283 Capital expenditures 2,327 1,944 Interest 1,454 1,328 Taxes and regulatory fees 739 681 Other 2,617 2,802 $ 11,362 $ 11,214 3. Total Debt A summary of our debt as of September 30, 2024 and December 31, 2023 is as follows: September 30, 2024 December 31, 2023 Principal Amount Carrying Value Fair Value Principal Amount Carrying Value Fair Value Senior unsecured notes $ 27,250 $ 27,178 $ 25,015 $ 27,250 $ 27,168 $ 24,750 Senior secured notes and debentures (a) 56,305 56,592 48,840 57,925 58,250 50,742 Credit facilities (b) 11,591 11,545 11,414 12,413 12,359 12,237 $ 95,146 $ 95,315 $ 85,269 $ 97,588 $ 97,777 $ 87,729 (a) Includes the Company's 625 million fixed-rate British pound sterling denominated notes (the "Sterling Notes") (remeasured at $ 836 million and $ 797 million as of September 30, 2024 and December 31, 2023, respectively, using the exchange rate at the respective dates) and the Company's 650 million aggregate principal amount of Sterling Notes (remeasured at $ 869 million and $ 828 million as of September 30, 2024 and December 31, 2023, respectively, using the exchange rate at the respective dates). (b) The Company has availability under the Charter Operating credit facilities of approximately $ 5.5 billion as of September 30, 2024. The estimated fair value of the Company's senior unsecured and secured notes and debentures as of September 30, 2024 and December 31, 2023 is based on quoted market prices in active markets and is class

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (dollars in millions, except per share amounts and where indicated) 4. Equipment Installment Plan Financing Facility In June 2024, a bankruptcy remote special purpose vehicle and consolidated subsidiary of the Company, CCO EIP Financing, LLC, (the "SPV Borrower") entered into a senior secured revolving credit facility to finance the purchase of equipment installment plan receivables ("EIP Receivables") with a number of financial institutions (the "EIP Financing Facility"). The revolving credit facility under the EIP Financing Facility bears interest on the outstanding borrowings based on lenders' cost of funds plus an applicable margin and was 6.41 % as of September 30, 2024. The EIP Financing Facility has a final maturity date of June 20, 2028, comprised of a one-year revolving loan period, subject to annual renewal, and if not renewed, cash flows on EIP Receivables are applied to amortize the loan which may occur over a period of up to three years. SPV Borrower may borrow up to $ 1.25 billion under the EIP Financing Facility. As of September 30, 2024, the carrying value of the EIP Financing Facility was $ 998 million and is included in the Company's consolidated balance sheets. The SPV Borrower's sole business consists of the purchase or acceptance through capital contributions of the EIP Receivables from Spectrum Mobile Equipment, LLC, (the sole direct parent entity of SPV Borrower that originates the EIP Receivables) and the subsequent retransfer of or granting of a security interest in such EIP Receivables to the administrative agent under the EIP Financing Facility. The SPV Borrower is a separate legal entity with its own separate creditors who will be entitled, upon its liquidation, to be satisfied out of the SPV Borrower's assets prior to any assets or value in the SPV Borrower becoming available to the SPV Borrower's equity holders, and the assets of the SPV Borrower are not available to pay cr

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (dollars in millions, except per share amounts and where indicated) withholds shares of its Class A common stock in payment of income tax withholding owed by employees upon vesting of equity awards as well as exercise costs owed by employees upon exercise of stock options. In 2023, Charter's board of directors approved the retirement of the then currently held treasury stock and those shares were retired as of December 31, 2023. The Company accounts for treasury stock using the cost method and includes treasury stock as

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View this 10-Q filing on SEC EDGAR