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    Charter Communications Inc (CHTR)

    New Share Buyback Program

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    Business Description

    Charter Communications, Inc. is a leading broadband connectivity company and cable operator serving over 32 million customers in 41 states under the Spectrum brand. The company offers a comprehensive range of residential and business services, including Internet, TV, Mobile, and Voice services . Charter's product lines include Internet, Video, Voice, Mobile Service, and others, with residential revenue being the largest segment .

    1. Internet - Provides high-speed broadband services to residential and business customers, forming the backbone of Charter's connectivity offerings.
    2. Video - Offers a variety of television services, including cable TV packages with a wide range of channels and on-demand content.
    3. Mobile Service - Delivers mobile phone services with flexible plans and nationwide coverage under the Spectrum brand.
    4. Voice - Supplies residential and business voice services, including landline and VoIP options for clear and reliable communication.
    5. Others - Encompasses additional services such as tailored advertising and production services through Spectrum Reach, and award-winning news and sports programming via Spectrum Networks.

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Christopher L. WinfreyPresident and Chief Executive OfficerDecember 2022Christopher L. Winfrey was named President and Chief Executive Officer of Charter Communications in December 2022. He joined Charter as Chief Financial Officer in 2010 and served as Chief Operating Officer from 2021, overseeing all cable operations .
    Richard J. DiGeronimoPresident, Product and TechnologyDecember 2022Richard J. DiGeronimo has been serving as the President, Product and Technology at Charter Communications since December 2022. He oversees Charter's product, engineering, software development, and other key areas. He joined Charter in 2008 and has held several leadership roles .
    Jessica M. FischerChief Financial OfficerOctober 2021Jessica M. Fischer is the Chief Financial Officer of Charter Communications, having been named to the position in October 2021. She oversees various departments including Accounting, Finance, and Tax, and manages Charter's equity and capital markets strategy .
    Jamal H. HaughtonExecutive Vice President, General Counsel, and Corporate Secretary2023Jamal H. Haughton joined Charter Communications as Executive Vice President, General Counsel, and Corporate Secretary in 2023. He serves as Charter's chief legal officer, overseeing all legal functions across various disciplines .
    Kevin D. HowardExecutive Vice President, Chief Accounting Officer, and Controller2006Kevin D. Howard is the Executive Vice President, Chief Accounting Officer, and Controller at Charter Communications. He joined Charter in 2002 and was promoted to his current role in 2006. He is responsible for Charter's operational and technical accounting, taxes, and financial reporting .
    R. Adam RayExecutive Vice President, Chief Commercial Officer2005R. Adam Ray is the Executive Vice President, Chief Commercial Officer at Charter Communications. He oversees all residential and SMB marketing and sales activity for Charter. Mr. Ray joined Charter in 2005 and has held several leadership positions .
    Scott A. SchwartzGroup Vice President, Corporate Finance and TreasurerN/AScott A. Schwartz serves as the Group Vice President, Corporate Finance and Treasurer of Charter Communications Operating, LLC. However, the documents do not provide specific details about his start date in this role or a detailed biography .

    Questions to Ask Management

    1. Given the loss of the Affordable Connectivity Program and its significant impact on broadband subscriber numbers, how does the company plan to mitigate this loss in the long term? What strategies are in place to replace the retention benefits previously provided by ACP, especially considering the potential for higher churn rates among low-income customers?

    2. You mentioned that your 2024 capital expenditures guidance has been reduced due to lower customer net additions and the impact of the end of ACP. Can you elaborate on how this reduction in CapEx might affect your long-term network evolution initiatives and competitive positioning, particularly in light of increasing competition from fiber overbuilds and fixed wireless access providers?

    3. In your prepared remarks, you highlighted that your standalone mobile adjusted EBITDA was positive for the first time, even after subscriber acquisition costs. Can you provide more details on the sustainability of mobile profitability, especially considering the increasingly competitive mobile market and aggressive promotions from other carriers?

    4. Regarding the hybrid direct-to-consumer linear model and inclusion of streaming services like Paramount+, Disney+, and others into your video packages, how confident are you that these partnerships will stabilize or grow your video segment? What metrics will you use to assess the success of this strategy over the next few quarters?

    5. With the expansion of open-access fiber networks and potential increased competition from wholesalers and other converged players, how do you plan to defend your market share and margins in the face of these emerging competitive threats? Specifically, what strategies are you implementing to address the risks posed by these new market entrants?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateN/A
    End Date/DurationN/A
    Total Additional AmountN/A
    Remaining Authorization$599 million
    DetailsCharter has been actively purchasing shares of its Class A common stock since September 2016. As of September 30, 2024, Charter has purchased approximately 162.3 million shares for approximately $73.3 billion.

    Debt Maturity Schedule

    YearAmount Due (in millions)Debt TypeInterest Rate% of Total Debt
    2025$1,799 4.908% Senior Notes 4.908% 1.9% = (1,799M / 93,800M) * 100
    2026$1,850 6.150% Senior Notes 6.150% 2.0% = (1,850M / 93,800M) * 100
    2027$3,250 5.125% Senior Notes 5.125% 3.5% = (3,250M / 93,800M) * 100
    2028$4,750 3.750% Senior Notes 3.750% 5.1% = (4,750M / 93,800M) * 100
    2029$6,750 2.250% Senior Notes 2.250% 7.2% = (6,750M / 93,800M) * 100
    2030$10,300 4.750% Senior Notes 4.750% 11.0% = (10,300M / 93,800M) * 100
    2031$6,825 4.250% Senior Notes 4.250% 7.3% = (6,825M / 93,800M) * 100
    2032$8,000 4.750% Senior Notes 4.750% 8.5% = (8,000M / 93,800M) * 100
    2033$2,750 4.500% Senior Notes 4.500% 2.9% = (2,750M / 93,800M) * 100
    2034$6,800 4.250% Senior Notes 4.250% 7.2% = (6,800M / 93,800M) * 100
    2035$2,000 6.384% Senior Notes 6.384% 2.1% = (2,000M / 93,800M) * 100
    2038$2,300 5.375% Senior Notes 5.375% 2.5% = (2,300M / 93,800M) * 100
    2041$1,500 3.500% Senior Notes 3.500% 1.6% = (1,500M / 93,800M) * 100
    2042$2,350 3.500% Senior Notes 3.500% 2.5% = (2,350M / 93,800M) * 100
    2045$3,500 6.484% Senior Notes 6.484% 3.7% = (3,500M / 93,800M) * 100
    2047$2,500 5.375% Senior Notes 5.375% 2.7% = (2,500M / 93,800M) * 100
    2048$2,450 5.750% Senior Notes 5.750% 2.6% = (2,450M / 93,800M) * 100
    2049$1,250 5.125% Senior Notes 5.125% 1.3% = (1,250M / 93,800M) * 100
    2050$2,800 4.800% Senior Notes 4.800% 3.0% = (2,800M / 93,800M) * 100
    2051$2,050 3.700% Senior Notes 3.700% 2.2% = (2,050M / 93,800M) * 100
    2052$2,400 3.900% Senior Notes 3.900% 2.6% = (2,400M / 93,800M) * 100
    2053$1,500 5.250% Senior Notes 5.250% 1.6% = (1,500M / 93,800M) * 100
    2055$500 6.834% Senior Notes 6.834% 0.5% = (500M / 93,800M) * 100
    2061$3,250 3.850% Senior Notes 3.850% 3.5% = (3,250M / 93,800M) * 100
    2062$1,400 3.950% Senior Notes 3.950% 1.5% = (1,400M / 93,800M) * 100
    2063$1,000 5.500% Senior Notes 5.500% 1.1% = (1,000M / 93,800M) * 100

    Auditor

    NameStart DateEnd DateReason for Change
    KPMG LLP2002 PresentCurrent auditor

    Latest news

    Recent developments and announcements about CHTR.

    Financial Reporting

      Earnings Report

      ·
      5 days ago

      Charter Communications, Inc. has released its fourth quarter and full year 2024 earnings results. Here are the key highlights:

      • Revenue Growth: Charter reported a 1.6% increase in fourth quarter revenue, reaching $13.9 billion. This growth was driven by a 37.4% increase in residential mobile service revenue, a 26.4% increase in advertising sales revenue, and a 0.9% increase in residential Internet revenue.

      • Net Income: The net income attributable to Charter shareholders for the fourth quarter was $1.5 billion, marking a 38.6% increase from the previous year.

      • Adjusted EBITDA: The fourth quarter Adjusted EBITDA was $5.8 billion, reflecting a 3.4% year-over-year growth.

      • Customer Metrics: Charter's total Internet customers decreased by 177,000 in the fourth quarter, while total mobile lines increased by 529,000. The company ended the year with 30.1 million Internet customers and 9.9 million mobile lines.

      • Capital Expenditures: For the year ended December 31, 2024, Charter's capital expenditures totaled $11.3 billion, which included $4.2 billion for line extensions.

      • Free Cash Flow: The free cash flow for the full year 2024 was $4.3 billion, up from $3.5 billion in the prior year, primarily due to higher Adjusted EBITDA and favorable changes in working capital.

      • Share Repurchases: During the fourth quarter, Charter repurchased 292 thousand shares of its Class A common stock and Charter Holdings common units for approximately $113 million.

      These results reflect Charter's strategic focus on expanding its mobile services and enhancing its network capabilities, which have contributed to its financial performance and customer growth in 2024.

    Financial Actions

      Debt Issuance

      ·
      Dec 9, 2024, 10:51 PM

      Charter Communications (CHTR) has recently created a direct financial obligation or entered into an off-balance sheet arrangement. This is detailed under the heading 'Amendment No. 6 to the Amended and Restated Credit Agreement' . Such financial obligations can significantly impact the company's balance sheet and financial health. Direct financial obligations typically involve commitments that require the company to make future payments, which can affect liquidity and leverage ratios. Off-balance sheet arrangements, on the other hand, might not appear on the balance sheet but can still pose risks if they involve significant commitments or potential liabilities. Monitoring these obligations is crucial for assessing the company's financial stability and potential risks.

      New Share Buyback Program

      ·
      Nov 13, 2024, 12:00 AM

      Charter Communications (CHTR) has announced a new buyback program as part of its merger agreement with Liberty Broadband. The key points of the program are as follows:

      • Monthly Repurchases: Charter will repurchase shares of its common stock from Liberty Broadband each month during the merger period. The repurchase amount will be the greater of $100 million or an amount ensuring Liberty Broadband meets its liquidity requirements .
      • Repurchase Price: The repurchase price will be determined based on the existing letter agreement, with adjustments if no shares are repurchased during the relevant period .
      • Liquidity and MAE Events: If a liquidity event or material adverse effect (MAE) event occurs, the repurchase amount will be adjusted or tolled until the event no longer exists .
      • Loans in Lieu of Repurchases: If repurchases are not permitted under applicable law or would reduce Liberty Broadband's equity interest below 25.25%, Charter will provide loans to Liberty Broadband instead .
      • Use of Proceeds: Proceeds from repurchases or loans will be used by Liberty Broadband to repay its outstanding debt .

      This program is designed to support Liberty Broadband's liquidity and debt repayment needs during the merger process, ensuring financial stability and compliance with regulatory requirements.**

    Legal & Compliance

      Legal Proceedings

      ·
      Dec 9, 2024, 10:51 PM

      Summary of the Legal Matter Involving Charter Communications (CHTR):

      • Key Parties Involved:

        • Charter Communications Operating, LLC (the Borrower)
        • CCO Holdings, LLC (Holdings)
        • Bank of America, N.A. (Administrative Agent)
        • Various Lenders and Issuing Lenders

      • Nature of the Proceedings:

        • The document outlines an amendment (Amendment No. 6) to the existing credit agreement, which involves establishing new classes of commitments and loans, converting existing loans, and making other amendments to the credit agreement. Specifically, it includes the conversion of Revolving B Commitments to Revolving C Commitments, Term A-5 Loans to Term A-7 Loans, and Term B-2 Loans to Term B-5 Loans .

      • Potential Financial or Operational Consequences:

        • The amendment could impact Charter Communications' financial structure by altering the terms and conditions of its existing loans and commitments. This may affect the company's liquidity and financial flexibility, depending on the terms of the new loans and commitments .

      • Legal and Compliance Aspects:

        • The amendment is governed by the law of the State of New York, and all parties involved have waived their right to a jury trial in any legal proceedings related to this amendment .
        • The document also includes provisions for electronic execution of documents and compliance with the USA Patriot Act and Beneficial Ownership Regulation .

      • Operational Implications:

        • The changes in loan structures and commitments may require adjustments in financial reporting and compliance with new terms set forth in the amendment .

      This summary provides an overview of the legal and financial implications of the recent amendment to Charter Communications' credit agreement, highlighting the key parties, nature of the proceedings, and potential impacts on the company. The amendment reflects strategic financial management to optimize the company's debt structure and maintain compliance with regulatory requirements.