Charter Communications, Inc. (CHTR) has reported a 250 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $189 million, or $0.69 a share in the quarter, compared with $54 million, or $0.53 a share for the same period last year.
Revenue during the quarter surged 309.67 percent to $10,037 million from $2,450 million in the previous year period. Total expenses were 90.79 percent of quarterly revenues, up from 88.86 percent for the same period last year. That has resulted in a contraction of 194 basis points in operating margin to 9.21 percent.
Operating income for the quarter was $924 million, compared with $273 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3,636 million compared with $850 million in the prior year period. At the same time, adjusted EBITDA margin improved 153 basis points in the quarter to 36.23 percent from 34.69 percent in the last year period.
"Our goal is to be a superior service provider. Charter, under the Spectrum brand, provides high quality products and service at attractive prices, allowing us to grow our residential and business customer relationships," said Tom Rutledge, chief executive officer and Chairman of Charter Communications. "The integration of Time Warner Cable and Bright House Networks is on track, and we are beginning to implement the Spectrum brand, with better products, pricing and packaging. Improving our service operations in a way that allows consumers to recognize Spectrum as the best service provider will take time, but our proven operating strategies will work for customers, employees, shareholders and the communities we serve."
Operating cash flow improves significantly
Charter Communications, Inc. has generated cash of $4,815 million from operating activities during the nine month period, up 175.46 percent or $3,067 million, when compared with the last year period.
The company has spent $9,905 million cash to meet investing activities during the nine month period as against cash outgo of $13,865 million in the last year period.
Cash flow from financing activities was $6,250 million for the nine month period, down 48.41 percent or $5,864 million, when compared with the last year period.
Cash and cash equivalents stood at stood at $1,165 million as at Sep. 30, 2016.
Working capital remains negative
Working capital of Charter Communications, Inc. was negative $5,866 million on Sep. 30, 2016 compared with negative $1,423 million on Sep. 30, 2015. Current ratio was at 0.32 as on Sep. 30, 2016, up from 0.22 on Sep. 30, 2015.
Days sales outstanding went down to 7 days for the quarter compared with 12 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 $61,996 million as on Sep. 30, 2016, up 86.28 percent or $28,715 million from $33,281 million on Sep. 30, 2015. Short-term debt stood at $2,050 million as on Sep. 30, 2016. Total debt was 41.64 percent of total assets as on Sep. 30, 2016, compared with 90.26 percent on Sep. 30, 2015. Debt to equity ratio was at 1.21 as on Sep. 30, 2016, down from 554.68 as on Sep. 30, 2015. Interest coverage ratio improved to 1.28 for the quarter from 0.77 for the same period last year.
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