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EXHIBIT 99.1
NEWS
[CHARTER COMMUNICATIONS LOGO]
FOR RELEASE: 7:00 AM CENTRAL TIME, THURSDAY, NOVEMBER 2, 2000
CHARTER COMMUNICATIONS REPORTS CONTINUED REVENUE, OCF, AND
CUSTOMER GROWTH IN THIRD QUARTER 2000 FINANCIAL RESULTS
AGGRESSIVE DIGITAL VIDEO DEPLOYMENT CONTRIBUTES TO 20% OCF GROWTH
ST. LOUIS -- Charter Communications, Inc. (Nasdaq: CHTR) today reported
continued growth in revenues, operating cash flow (OCF), and basic, digital and
data customers for the three months ended September 30, 2000, compared to pro
forma year-ago results.
THIRD QUARTER HIGHLIGHTS
Pro forma revenues increased 13.9% to $842.9 million and pro forma
operating cash flow increased 20.2% to $400.6 million for the third quarter of
2000 compared to the pro forma results for the third quarter of 1999. Charter
added over 55,000 basic cable customers during the third quarter, contributing
to a year-to-year increase of approximately 2.3% compared to the pro forma
customer level of 6,178,800 at September 30, 1999. Year-to-date, the company has
added 124,600 new basic customers, an annualized organic growth rate of 2.7%. At
September 30, 2000, Charter served 6,318,300 basic cable customers.
For "same-store" cable systems owned by Charter during the third
quarter of both 2000 and 1999, revenues and system operating cash flow grew
12.8% and 19.5%, respectively. These systems represented 2,671,000 customers at
September 30, 2000, reflecting a 2.3% growth rate in basic customers compared to
a year ago.
"I'm very proud to report these outstanding operating results which
clearly show that the Charter management team has seamlessly integrated all of
our acquisitions. We're in an excellent position to achieve all of our stated
goals for the year, enabling us to be an industry leader in overall financial
performance," said Jerry Kent, President and CEO. "I'm especially pleased with
our basic customer growth, and consumer acceptance of our advanced video and
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CHARTER, FIRST ADD
data services, including Charter Digital Cable(TM) and CharterPipeline(TM)."
REBUILD AND UPGRADE OF INFRASTRUCTURE ALREADY PAYING DIVIDENDS
Mr. Kent said Charter remains on schedule in its $3.5 billion project
to build what is recognized as one of the most robust broadband infrastructures
in the industry. "By the end of this year, about 70% of our customers will be
served by upgraded plant. And by the end of the year 2002, nearly 93% of our
customers will be served by 750 megahertz plant or greater, providing full,
two-way interactive capability," Mr. Kent added.
The acceleration of Charter's infrastructure rebuild has allowed it to
be more aggressive in the rollout of advanced services. "We began the year 2000
with about 155,000 digital customers. Original projections were to average
10,000 digital installations per week throughout the year," Mr. Kent said. "We
revised that goal during the second quarter to 12,000 digital installations per
week because our accelerated upgrade allowed us to be even more aggressive in
our sales and marketing of digital cable."
Mr. Kent said consumer response during the third quarter to Charter's
innovative Digital Summer Sizzle promotion prompted still further upward
revision to year-end digital projections. "In the third quarter alone, we added
some 279,000 Charter Digital Cable customers, averaging 21,500 installations per
week, bringing our total at September 30, 2000 to 653,800 customers. As a
result, revised digital sales projections indicate we could end the year with
more than 900,000 digital customers."
Charter ended the quarter with 184,600 data customers, a 24% increase
over the prior quarter. "Charter Pipeline installations averaged over 2,700
customers per week throughout the third quarter, about 200 more installations
per week than we projected at the beginning of the year," Mr. Kent said.
RECENT DEVELOPMENTS
Charter launched video-on-demand (VOD) technology to about 167,000
homes in the Pasadena area of its Los Angeles Region in October, with planned
rollout to 275,000 homes by year-end. "VOD accommodates the busy lifestyles of
our customers by providing immediate/real-time selection of hundreds of
Hollywood movies with full VCR functionality," Mr. Kent said. "With the ease of
a remote control, they can stop, start, pause and replay their
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CHARTER, SECOND ADD
selections over a 24 hour period from the comfort of their home, without a round
trip to the video rental store." Charter already provides VOD technology to some
7,000 customers in the Greater Atlanta Area and plans additional launches
throughout the year 2001.
A joint venture with Motorola, Inc.'s Broadband Communications Sector,
ReplayTV, Inc. and Vulcan Ventures Inc. to develop and integrate digital video
recording (DVR) capabilities in advanced digital set-top terminals was also
announced in October. Mr. Kent said the venture, code named Project DISCO, will
initially focus on creating a set-top based DVR platform designed to store
video, audio and Internet content, creating a more robust platform for future
services and allowing new applications to reside on the advanced digital set-top
terminal. "It's our goal for Project DISCO to be to the digital platform what
the VCR is to analog television," Mr. Kent said.
Charter recently issued $650 million of Convertible Senior Notes due
2005. The company also plans to sell an additional $100 million of Notes on
November 3, 2000, pursuant to an option granted to the initial purchasers of the
Notes. Mr. Kent said, "I sincerely appreciate all the support and enthusiastic
response from the investors in allowing us to upsize a $450 million offering to
$750 million. This is further validation that the market recognizes we are
executing across all aspects of our business." Mr. Kent said the net proceeds of
the Notes were and will be used to repay a portion of amounts outstanding under
a $1 billion bridge loan.
LOOKING AHEAD
Mr. Kent said operating cash flow growth for the fourth quarter of 2000
is expected to exceed the third quarter growth rate. He said the company expects
to end the year with over 900,000 digital cable customers and approximately
225,000 data customers.
With 6.3 million customers, Charter Communications, a Wired World
company(TM), is among the nation's largest broadband communications companies.
Charter offers an array of advanced broadband services including digital video
programming services under the Charter Digital Cable(TM) brand; and high-speed
Internet access via Charter Pipeline(TM). Charter's Class A common stock is
traded on the Nasdaq National Market under the ticker symbol "CHTR." More
information about Charter can be found on the Internet at www.chartercom.com.
# # #
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CHARTER, THIRD ADD
Detailed financial information is included in the attached addendum.
Charter will conduct a conference call to discuss their operating results on
Thursday, November 2, 2000, at 11:00 AM Eastern Time. The call will be available
live via webcast {www.chartercom.com}. The call will be available on the
"Investor" portion of the website, via "About Charter." Participants should go
to the call link at least 10 minutes prior to the start time to register. The
call will be archived on the website.
Statements in this press release regarding Charter Communications' business that
are not historical facts may be "forward-looking statements." These
forward-looking statements include specific projections regarding Charter's
operating cash flow in the fourth quarter of 2000 as well as projections
regarding growth in digital cable and high-speed Internet subscribers and
expected launches of VOD service. Forward-looking statements are inherently
subject to risks, uncertainties and assumptions. Important factors that could
cause actual results to differ materially from any such forward-looking
statements are identified in the reports and documents Charter files from time
to time with the U.S. Securities and Exchange Commission.
CONTACTS:
MEDIA ANALYST
Anita Lamont, 314-543-2215 Mary Jo Moehle, 314-543-2397
[email protected] [email protected]
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CHARTER COMMUNICATIONS, INC.
CONSOLIDATED OPERATING RESULTS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30
--------------------------------------
PRO FORMA(a) PRO FORMA(b)
2000 1999 % CHANGE
----------------- ----------------- -------------
(UNAUDITED)
<S> <C> <C> <C>
REVENUES:
Basic $ 577,235 $ 537,341
Premium 58,108 59,957
Pay-per-view 5,896 11,116
Digital 25,581 1,372
Data services 15,455 4,564
Advertising sales 53,235 40,053
Other 107,371 85,687
----------------- -----------------
Total revenues 842,881 740,090 13.9%
----------------- -----------------
OPERATING EXPENSES:
Programming 182,005 165,782
General and administrative 145,208 128,104
Service 50,654 46,808
Marketing 16,356 17,949
Other 33,877 17,175
Corporate expense charge - related party 14,151 31,040
----------------- -----------------
Total operating expenses 442,251 406,858 8.7%
----------------- -----------------
Operating cash flow $ 400,630 $ 333,232 20.2%
================= =================
</TABLE>
(a) The pro forma results for the three months ended September 30, 2000
reflect the acquisition of Cablevision of Michigan, Inc. (Kalamazoo) in
September 2000.
(b) The pro forma results for the three months ended September 30, 1999
reflect: the eleven acquisitions of cable systems completed during
1999, and all acquisitions closed through September 30, 2000, including
the Bresnan and Kalamazoo acquisitions.
ADDENDUM TO CHARTER COMMUNICATIONS THIRD QUARTER 2000 EARNINGS RELEASE
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CHARTER COMMUNICATIONS, INC.
SUMMARY OF OPERATING STATISTICS
<TABLE>
<CAPTION>
CABLE TELEVISION ACTUAL PRO FORMA(a) ACTUAL
---------------- ----------------------- ---------------------- ---------------------
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30,
2000 1999 1999
----------------------- ---------------------- ---------------------
<S> <C> <C> <C>
Homes Passed 10,160,200 9,970,000 5,540,700
Basic Customers 6,318,300 6,193,700 3,425,700
Basic Penetration 62.2% 62.1% 61.8%
Premium Subscriptions 4,426,200 3,144,500 2,039,000
Premium Penetration 70.1% 50.8% 59.5%
Average Monthly Revenue per Basic Customer (quarter) $ 44.26 $ 41.13 $ 36.60
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</TABLE>
<TABLE>
<CAPTION>
DIGITAL VIDEO ACTUAL PRO FORMA(a) ACTUAL
------------- ----------------------- ---------------------- ---------------------
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30,
2000 1999 1999
----------------------- ---------------------- ---------------------
<S> <C> <C> <C>
Digital Homes Passed 7,568,000 4,675,000 897,600
Customers 653,800 155,400 28,600
Penetration 8.6% 3.3% 3.2%
Digital Converters Deployed 807,900 176,600 35,300
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</TABLE>
<TABLE>
<CAPTION>
DATA SERVICES ACTUAL PRO FORMA(a) ACTUAL
------------- ----------------------- ---------------------- ---------------------
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30,
2000 1999 1999
----------------------- ---------------------- ---------------------
<S> <C> <C> <C>
Data Homes Passed 4,580,400 4,422,000 2,589,000
Customers 184,600 84,400 21,900
Penetration 4.0% 1.9% 0.8%
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</TABLE>
<TABLE>
<CAPTION>
TELEVISION-BASED INTERNET ACCESS ACTUAL PRO FORMA(a) ACTUAL
-------------------------------- ----------------------- ---------------------- ---------------------
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30,
2000 1999 1999
----------------------- ---------------------- ---------------------
<S> <C> <C> <C>
Television-Based Internet Homes Passed 463,700 429,000 429,000
Customers 10,100 7,100 6,200
Penetration 2.2% 1.7% 1.4%
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</TABLE>
<TABLE>
<CAPTION>
OTHER STATISTICS ACTUAL PRO FORMA(a) ACTUAL
---------------- ----------------------- ---------------------- ---------------------
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30,
2000 1999 1999
----------------------- ---------------------- ---------------------
<S> <C> <C> <C>
For the quarter ended
Capital Expenditures (in 000's) $ 790,899 $ 429,474 $ 179,851
As of
Book Value per Share $ 11.42 $ 13.90 N/A
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</TABLE>
(a) The pro forma statistics as of and for the quarter ended December 31,
1999 reflect all acquisitions closed since this date, including Bresnan
Communications and Kalamazoo.
ADDENDUM TO CHARTER COMMUNICATIONS THIRD QUARTER 2000 EARNINGS RELEASE
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CHARTER COMMUNICATIONS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
PERIODS ENDED SEPTEMBER 30, 2000
----------------------------------------
THREE MONTHS NINE MONTHS
-------------------- -------------------
(UNAUDITED)
<S> <C> <C>
REVENUES:
Basic $ 574,348 $ 1,668,092
Premium 57,465 171,432
Pay-per-view 5,848 21,875
Digital 25,581 49,843
Data services 15,455 42,676
Advertising sales 53,060 128,132
Other 107,204 273,295
------------------ ----------------
Total revenues 838,961 2,355,345
------------------ ----------------
OPERATING EXPENSES:
Programming 180,919 527,379
General and administrative 144,969 404,478
Service 49,900 143,585
Marketing 16,356 45,693
Other 33,877 83,199
Corporate expense charge - related party 14,055 41,570
------------------ ----------------
Total operating expenses 440,076 1,245,904
------------------ ----------------
Operating cash flow 398,885 1,109,441
Depreciation 312,884 862,672
Amortization 315,222 915,221
Option compensation expense 8,116 34,205
Interest, net 282,676 758,608
Other, net 3,451 5,955
------------------ ----------------
(523,464) (1,467,220)
Minority Interest in Loss of Subsidiary 313,446 879,667
------------------ ----------------
Net Loss $ (210,018) $ (587,553)
================== ================
Basic and Diluted Loss per Share $ (0.93) $ (2.63)
================== ================
Weighted Average Common Shares Outstanding 224,965 222,998
================== ================
</TABLE>
ADDENDUM TO CHARTER COMMUNICATIONS THIRD QUARTER 2000 EARNINGS RELEASE
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CHARTER COMMUNICATIONS, INC.
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
ACTUAL
SEPTEMBER 30, 2000
------------------
(UNAUDITED)
<S> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 44,467
Accounts receivable, less allowance for doubtful accounts 162,346
Receivable from related party 4,599
Prepaid expenses and other 43,755
-------------
Total current assets 255,167
-------------
Investment in Cable Properties:
Property, plant and equipment, net of accumulated depreciation of
$909,147 4,681,483
Franchises, net of accumulated amortization of $1,560,235 17,273,858
-------------
Total investment in cable properties 21,955,341
Other Assets 229,935
-------------
$ 22,440,443
=============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 1,184,476
-------------
Total current liabilities 1,184,476
-------------
Long-Term Debt 12,167,729
-------------
Deferred Management Fees - Related Party 13,751
-------------
Other Long-Term Liabilities 173,232
-------------
Minority Interest 4,385,448
-------------
Redeemable Securities 1,846,176
-------------
Shareholders' Equity:
Class A common stock; $.001 par value; 1.75 billion shares authorized;
233,685,768 shares issued and outstanding 207
Class B common stock; $.001 par value; 750 million shares authorized;
50,000 shares issued and outstanding -
Preferred stock; $.001 par value; 250 million shares authorized;
no shares issued and outstanding -
Additional paid-in capital 3,322,261
Accumulated deficit (653,784)
Accumulated other comprehensive income 947
-------------
Total shareholders' equity 2,669,631
-------------
$ 22,440,443
=============
</TABLE>
ADDENDUM TO CHARTER COMMUNICATIONS THIRD QUARTER 2000 EARNINGS RELEASE
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CHARTER COMMUNICATIONS, INC.
"SAME STORE" RESULTS
(DOLLARS IN THOUSANDS, EXCEPT PER BASIC CUSTOMER DATA)
<TABLE>
<CAPTION>
OPERATING RESULTS THREE MONTHS ENDED SEPTEMBER 30
-------------------------------------------------
2000 1999 % CHANGE
----------------------- ----------------------- -------------
(UNAUDITED)
<S> <C> <C> <C>
REVENUES:
Basic $ 248,690 $ 231,135
Premium 28,162 29,765
Pay-per-view 3,356 7,697
Digital 14,018 1,134
Data services 7,215 1,814
Other 71,111 58,618
----------------------- -----------------------
Total revenues 372,552 330,163 12.8%
----------------------- -----------------------
Operating Expenses:
Programming 78,284 75,855
General and administrative 64,378 56,687
Service 20,216 22,076
Marketing 5,338 8,623
Other 14,092 7,728
----------------------- -----------------------
Total operating expenses 182,308 170,969 6.6%
----------------------- -----------------------
System operating cash flow $ 190,244 $ 159,194 19.5%
======================= =======================
</TABLE>
<TABLE>
<CAPTION>
OPERATING DATA SEPTEMBER 30, 2000 SEPTEMBER 30, 1999
----------------------- -----------------------
(UNAUDITED)
<S> <C> <C>
Homes Passed 4,538,500 4,514,400
Basic Customers 2,671,000 2,611,400 2.3%
Basic Penetration 58.9% 57.8%
Premium Subscriptions 2,125,100 1,653,100
Digital Video Customers 332,600 28,600
Data Customers 54,100 21,400
Average Monthly Revenue
per Basic Customer $ 46.49 $ 42.14 10.3%
</TABLE>
Note: The above "same store" information presents operating results and data
for the third quarter of 2000 as compared to the third quarter of 1999
for the cable systems owned by Charter Communications as of July 1,
1999.
ADDENDUM TO CHARTER COMMUNICATIONS THIRD QUARTER 2000 EARNINGS RELEASE
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