8/17/2019 Addendum Q1 2016

1/7

 Addendum to Charter Communications, Inc. First Quarter 2016 Earnings ReleasePage 1 of 7

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND OPERATING DATA

(dollars in millions, except per share data) 

Three Months Ended March 31,

2016 2015 % Change

REVENUES:

Video $ 1,170 $ 1,129 3.7 %

Internet 804 717 12.1 %

Voice 135 134 0.5 %

Residential revenue 2,109 1,980 6.5 %

Small and medium business 202 182 11.3 %

Enterprise 99 87 13.4 %

Commercial revenue 301 269 12.0 %

 Advertising sales 72 66 8.8 %

Other  48 47 2.7 %

Total Revenues 2,530 2,362 7.1 %

COSTS AND EXPENSES:

Programming 703 666 5.5 %

Franchises, regulatory and connectivity 112 107 4.5 %

Costs to service customers 421 423 (0.4)%

Marketing 162 151 7.2 %Transition costs 21 21 0.6 %

Other  228 194 17.6 %

Total operating costs and expenses (exclusive of items shown separately below) 1,647 1,562 5.4 %

 Adjusted EBITDA 883 800 10.4 %

 Adjusted EBITDA margin   34.9% 33.9%

Depreciation and amortization 539 514

Stock compensation expense 24 19

Other operating expenses, net 18 18

Income from operations 302 249

OTHER EXPENSES:Interest expense, net (454) (289)

Loss on derivative instruments, net (5) (6)

Other expense, net (3) —

(462) (295)

Loss before income taxes (160) (46)

Income tax expense (28) (35)

Net loss $ (188) $ (81)

LOSS PER COMMON SHARE, BASIC AND DILUTED $ (1.68) $ (0.73)

Weighted average common shares outstanding, basic and diluted 112,311,539 111,655,617

 Adjusted EBITDA is a non-GAAP term. See page 6 of this addendum for the reconciliation of adjusted EBITDA to net loss as defined by GAAP.

 All percentages are calculated using whole numbers. Minor differences may exist due to rounding.

8/17/2019 Addendum Q1 2016

2/7

 Addendum to Charter Communications, Inc. First Quarter 2016 Earnings ReleasePage 2 of 7

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(dollars in millions) 

March 31, December 31,

2016 2015

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 1,278 $ 5 Accounts receivable, net 253 279

Prepaid expenses and other current assets 81 61

Total current assets 1,612 345

RESTRICTED CASH AND CASH EQUIVALENTS 22,313 22,264

INVESTMENT IN CABLE PROPERTIES:

Property, plant and equipment, net 8,294 8,345

Franchises 6,006 6,006

Customer relationships, net 800 856

Goodwill 1,168 1,168

Total investment in cable properties, net 16,268 16,375

OTHER NONCURRENT ASSETS 331 332

Total assets $ 40,524 $ 39,316

LIABILITIES AND SHAREHOLDERS’ DEFICIT

CURRENT LIABILITIES:

 Accounts payable and accrued liabilities $ 1,925 $ 1,972

Total current liabilities 1,925 1,972

LONG-TERM DEBT 37,124 35,723

DEFERRED INCOME TAXES 1,618 1,590

OTHER LONG-TERM LIABILITIES 76 77

SHAREHOLDERS’ DEFICIT (219) (46

Total liabilities and shareholders’ deficit $ 40,524 $ 39,316

8/17/2019 Addendum Q1 2016

3/7

 Addendum to Charter Communications, Inc. First Quarter 2016 Earnings ReleasePage 3 of 7

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in millions) 

Three Months Ended March 31,

2016 2015

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss $ (188) $ (81

 Adjustments to reconcile net loss to net cash flows from operating activities:

Depreciation and amortization 539 514

Stock compensation expense 24 19

Noncash interest expense 7 8

Loss on derivative instruments, net 5 6

Deferred income taxes 28 34

Other, net 3 3

Changes in operating assets and liabilities, net of effects from acquisitions:

 Accounts receivable 24 21

Prepaid expenses and other assets (21) (26

 Accounts payable, accrued liabilities and other  3 30

Net cash flows from operating activities 424 528

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property, plant and equipment (429) (351

Change in accrued expenses related to capital expenditures (56) (76

Change in restricted cash and cash equivalents (49) (1

Other, net (2) (13

Net cash flows from investing activities (536) (441

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings of long-term debt 2,139 332

Repayments of long-term debt (727) (392

Payments for debt issuance costs (17) —Purchase of treasury stock (16) (16

Proceeds from exercise of options and warrants 5 6

Other, net 1 —

Net cash flows from financing activities 1,385 (70

NET INCREASE IN CASH AND CASH EQUIVALENTS 1,273 17

CASH AND CASH EQUIVALENTS, beginning of period 5 3

CASH AND CASH EQUIVALENTS, end of period $ 1,278 $ 20

CASH PAID FOR INTEREST, NET$ 448 $ 255

8/17/2019 Addendum Q1 2016

4/7

 Addendum to Charter Communications, Inc. First Quarter 2016 Earnings ReleasePage 4 of 7

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED SUMMARY OF OPERATING STATISTICS

(in thousands, except per customer and penetration data)

Approximate as of 

March 31,2016 (a)

December 31,2015 (a)

March 31,2015 (a)

Footprint (b)

Estimated Video Passings 12,854 12,783 12,745

Estimated Internet Passings 12,588 12,515 12,475

Estimated Voice Passings 12,138 12,062 12,022

Penetration Statistics (c)

Video Penetration of Estimated Video Passings 34.6% 34.7% 34.6%

Internet Penetration of Estimated Internet Passings 45.5% 44.5% 41.8%

Voice Penetration of Estimated Voice Passings 23.6% 23.3% 22.2%

Customer Relationships (d)

Residential 6,388 6,284 6,070

Small and Medium Business 405 390 342

Total Customer Relationships 6,793 6,674 6,412

Residential

Primary Service Units ("PSU")

Video 4,332 4,322 4,311

Internet 5,368 5,227 4,910

Voice 2,633 2,598 2,481

12,333 12,147 11,702

Quarterly Net Additions/(Losses)

Video 10 29 (13)

Internet 141 115 125

Voice 35 47 42

186 191 154

Single Play (e) 2,509 2,458 2,385

Double Play (e) 1,813 1,790 1,739

Triple Play (e) 2,066 2,036 1,946

Single Play Penetration (f) 39.3% 39.1% 39.3%

Double Play Penetration (f) 28.4% 28.5% 28.6%

Triple Play Penetration (f) 32.3% 32.4% 32.1%

% Residential Non-Video Customer Relationships 32.2% 31.2% 29.0%

Monthly Residential Revenue per Residential Customer (g) $ 111.04 $ 111.19 $ 109.53

Small and Medium Business

PSUs

Video 113 108 96

Internet 359 345 300

Voice 231 218 185

703 671 581

Quarterly Net Additions/(Losses)

Video 5 4 1

Internet 14 14 10

Voice 13 10 8

32 28 19

Monthly Small and Medium Business Revenue per Customer (h) $ 169.74 $ 173.12 $ 179.74

Enterprise PSUs (i)

Enterprise PSUs 31 30 26

 All percentages are calculated using whole numbers. Minor differences may exist due to rounding.

See footnotes to unaudited summary of operating statistics on page 5 of this addendum.

8/17/2019 Addendum Q1 2016

5/7

 Addendum to Charter Communications, Inc. First Quarter 2016 Earnings ReleasePage 5 of 7

(a) We calculate the aging of customer accounts based on the monthly billing cycle for each account. On that basis, at March 31, 2016, December31, 2015 and March 31, 2015, customers include approximately 27,900, 38,100 and 27,700 customers, respectively, whose accounts were over60 days, approximately 1,100, 1,700 and 900 customers, respectively, whose accounts were over 90 days and approximately 900, 900 and 700customers, respectively, whose accounts were over 120 days.

(b) Passings represent our estimate of the number of units, such as single family homes, apartment and condominium units and small and mediumbusiness and enterprise sites passed by our cable distribution network in the areas where we offer the service indicated. These estimates arebased upon the information available at this time and are updated for all periods presented when new information becomes available.

(c) Penetration represents residential and small and medium business customers as a percentage of estimated passings for the service indicated.

(d) Customer relationships include the number of customers that receive one or more levels of service, encompassing video, Internet and voiceservices, without regard to which service(s) such customers receive. Customers who reside in residential multiple dwelling units ("MDUs") andthat are billed under bulk contracts are counted based on the number of billed units within each bulk MDU. Small and medium business customers

are counted based on the number of customer locations. Total customer relationships excludes enterprise customer relationships.

(e) Single play, double play and triple play customers represent customers that subscribe to one, two or three of Charter service offerings, respectively.

(f) Single play, double play and triple play penetration represents the number of residential single play, double play and triple play customers,respectively, as a percentage of residential customer relationships.

(g) Monthly residential revenue per residential customer is calculated as total residential video, Internet and voice quarterly revenue divided bythree divided by average residential customer relationships during the respective quarter.

(h) Monthly small and medium business revenue per customer is calculated as total small and medium business quarterly revenue divided by threedivided by average small and medium business customer relationships during the respective quarter.

(i) Enterprise PSUs represents the aggregate number of Charter's fiber service offerings counting each separate service offering at each customerlocation as an individual PSU.

8/17/2019 Addendum Q1 2016

6/7

8/17/2019 Addendum Q1 2016

7/7

 Addendum to Charter Communications, Inc. First Quarter 2016 Earnings ReleasePage 7 of 7

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

CAPITAL EXPENDITURES

(dollars in millions) 

Three Months Ended March 31,

2016 2015

Customer premise equipment (a) $ 137 $ 150

Scalable infrastructure (b) 110 75Line extensions (c) 47 39

Upgrade/Rebuild (d) 41 23

Support capital (e) 94 64

  Total capital expenditures (f) $ 429 $ 351

(a) Customer premise equipment includes costs incurred at the customer residence to secure new customers and revenue generatingunits, including customer installation costs and customer premise equipment (e.g., set-top boxes and cable modems).

(b) Scalable infrastructure includes costs, not related to customer premise equipment, to secure growth of new customers and revenuegenerating units, or provide service enhancements (e.g., headend equipment).

(c) Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronicequipment, make-ready and design engineering).

(d) Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including betterments.

(e) Support capital includes costs associated with the replacement or enhancement of non-network assets due to technological andphysical obsolescence (e.g., non-network equipment, land, buildings and vehicles).

(f) Total capital expenditures for the three months ended March 31, 2016 and 2015 include the following (dollars in millions):

Three Months Ended March 31,

2016 2015

Commercial services $ 64 $ 51

Transition $ 53 $ 14