Charter Communications, Inc. (CHTR) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $155 million, or $ 0.57 a share in the quarter, against a net loss of $188 million, or $1.86 a share in the last year period.
Revenue during the quarter surged 301.74 percent to $10,164 million from $2,530 million in the previous year period. Total expenses were 90.74 percent of quarterly revenues, up from 88.06 percent for the same period last year. That has resulted in a contraction of 268 basis points in operating margin to 9.26 percent.
Operating income for the quarter was $941 million, compared with $302 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3,654 million compared with $883 million in the prior year period. At the same time, adjusted EBITDA margin improved 105 basis points in the quarter to 35.95 percent from 34.90 percent in the last year period.
"As we near the first anniversary of the close of our transformative transactions in May of last year, the execution of our integration and operating plan remains on track," said Tom Rutledge, chairman and chief executive officer of Charter Communications, Inc. "We have now launched our Spectrum pricing and packaging to nearly all of the homes we pass in our new footprint. We are already seeing the benefits of our customer-focused strategy in those markets, including greater connect volumes and the sales of higher quality products, all of which will lead to higher customer satisfaction, lower churn, and faster customer and financial growth in future quarters."
Operating cash flow improves significantly
Charter Communications, Inc. has generated cash of $2,843 million from operating activities during the quarter, up 570.52 percent or $2,419 million, when compared with the last year period.
The company has spent $1,712 million cash to meet investing activities during the quarter as against cash outgo of $536 million in the last year period.
Cash flow from financing activities was $254 million for the quarter, down 81.66 percent or $1,131 million, when compared with the last year period.
Cash and cash equivalents stood at $2,920 million as on Mar. 31, 2017, up 128.48 percent or $1,642 million from $1,278 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Charter Communications, Inc. was negative $4,854 million on Mar. 31, 2017 compared with negative $313 million on Mar. 31, 2016. Current ratio was at 0.49 as on Mar. 31, 2017, down from 0.84 on Mar. 31, 2016.
Days sales outstanding went up to 6 days for the quarter compared with 5 days for the same period last year.
Debt increases substantially
Charter Communications, Inc. has witnessed an increase in total debt over the last one year. It stood at $62,844 million as on Mar. 31, 2017, up 69.28 percent or $25,720 million from $37,124 million on Mar. 31, 2016. Short-term debt stood at $2,007 million as on Mar. 31, 2017. Total debt was 42.05 percent of total assets as on Mar. 31, 2017, compared with 91.61 percent on Mar. 31, 2016. Interest coverage ratio improved to 1.32 for the quarter from 0.67 for the same period last year.
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