Charter Reports Fourth Quarter and Year 2003 Financial and Operating Results.

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Charter Reports Fourth Quarter and Year 2003 Financial and Operating Results.

Business Editors/High-Tech Writers

ST. LOUIS--(BUSINESS WIRE)--Feb. 19, 2004

Charter Communications, Inc. (Nasdaq:CHTR) (along with its subsidiaries, the Company) today reported financial and operating results for the three months and year ended December 31, 2003.

The Company's financial flexibility improved in 2003 through a disciplined, incremental approach to improving its balance sheet and liquidity, generating un-levered free cash flow for the first time in its history. Negative free cash flow was reduced from $1.479 billion in 2002, to $70 million in 2003, through disciplined capital spending and maintaining overall operating costs. While focused on improving the Company's balance sheet and liquidity, and reorganizing its operations, Charter posted 6% revenue growth and 7% adjusted EBITDA growth year over year. (Free cash flow, un-levered free cash flow and adjusted EBITDA are defined in the "Use of Non-GAAP Financial Metrics" section of this news release.)

Financial Highlights

-- Exchanged $1.866 billion of indebtedness for $1.572 billion of

indebtedness, extending maturities and capturing approximately

$294 million of debt discount.

-- Issued $500 million of senior notes with proceeds used to

repay bank debt, providing additional financial flexibility

for use of the Company's credit facilities.

-- Completed the sale of a cable television system in Port

Orchard, Washington for $91 million, the first step in the

Company's announced strategy to divest of geographically

non-strategic assets. The sale generated a gain on the sale of

assets in excess of $20 million, and the proceeds from this

sale were used to repay bank debt.

-- Entered into an agreement with Atlantic Broadband Finance, LLC

to divest of other geographically non-strategic cable systems

for approximately $765 million, subject to certain closing

conditions, potential price adjustments and regulatory review.

Cash proceeds from the sale are now expected to approximate

$740 million, subject to the above conditions, adjustments and

review, and will be used to repay bank debt. The Company now

expects to close this transact...

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