Charter Third Quarter 2012 Results

                      Charter Third Quarter 2012 Results

Implementing Strategies to Drive Growth with Enhanced Product Offerings and
Service

PR Newswire

ST. LOUIS, Nov. 6, 2012

ST. LOUIS, Nov. 6, 2012 /PRNewswire/ --Charter Communications, Inc.(NASDAQ:
CHTR) (along with its subsidiaries, the "Company" or "Charter") today reported
financial and operating results for the three and nine months ended
September30, 2012.

(Logo: http://photos.prnewswire.com/prnh/20110526/AQ10195LOGO)

Third quarter highlights:

  oCustomer relationship trends improved year over year with 119,000 more
    residential and commercial relationships, and a significant increase in
    triple play sell-in. Residential primary service units ("PSUs") grew by
    48,000 compared to a gain of 1,000 a year ago.
  oThird quarter revenues of $1.880 billion grew 3.7% on a pro forma^1 basis
    and 3.9% on an actual basis compared to the third quarter of 2011, due to
    growth in Internet, commercial and advertising sales.
  oResidential Internet revenues rose 7.6% on a pro forma basis and 7.9% on
    an actual basis. Charter added more than 300,000 Internet customers over
    the past twelve months.
  oCommercial revenues grew 20.9% on a pro forma and actual basis driven by
    growth across all business groups, marking the sixth consecutive quarter
    of over 20% growth.
  oAdjusted EBITDA^2 was $651 million, down 0.5% on a pro forma basis and
    0.3% on an actual basis compared to prior year as revenue growth was
    offset by an increase in operating expenses to support new operating
    strategies. Net loss totaled $87 million in the quarter.
  oNet cash flows from operating activities totaled $468 million for the
    quarter. Higher capital expenditures to support our growth and operating
    strategies led to free cash flow^2 of negative $17 million.

"We entered the quarter in a stronger competitive position from a product,
pricing and service standpoint, benefiting customer trends and triple play
sales," said Tom Rutledge, Charter President and CEO. "We are enhancing the
foundation of our operating structure, business practices and product
offerings to support sustainable growth. The investments we make in the near
term lay the groundwork for increased penetration across all of our products
with a greater customer lifetime value. I am confident about our future and
our ability to drive long-term growth and maximize return on investment."

^1 Pro forma results are described below in the "Use of Non-GAAP Financial
Metrics" section and are provided in the addendum of this news release.
^2 Adjusted EBITDA and free cash flow are defined in the "Use of Non-GAAP
Financial Metrics" section and are reconciled to net loss and net cash flows
from operating activities, respectively, in the addendum of this news release.

Key Operating Results
                                     Approximate as of
                                     Actual
                                     September30,  September30,
                                                                   Y/Y Change
                                     2012 (a)       2011 (a)
Footprint
 Estimated Homes Passed Video (b)  11,996         11,928         1%
 Estimated Homes Passed Internet   11,665         11,602         1%
(b)
 Estimated Homes Passed Phone (b)  11,040         10,840         2%
Penetration Statistics
 Video Penetration of Homes        33.6%          35.1%          -1.5 ppts
Passed Video (c)
 Internet Penetration of Homes     32.0%          29.5%          2.5 ppts
Passed Internet (c)
 Phone Penetration of Homes        17.0%          16.3%          0.7 ppts
Passed Phone (c)
Residential
 Residential Customer              5,015          4,922          2%
Relationships (d)
 Residential Non-Video Customers   990            734            35%
 % Non-Video                       19.7%          14.9%          4.8 ppts
 Customers
 Video (e)                         4,025          4,188          -4%
 Internet (f)                      3,731          3,424          9%
 Phone (g)                         1,880          1,764          7%
 Residential PSUs (h)            9,636          9,376          3%
 Residential PSU / Customer        1.92           1.90
Relationships (d)(h)
 Net Additions/(Losses) (i)
 Video (e)                         (73)           (63)           -16%
 Internet (f)                      69             53             30%
 Phone (g)                         52             11             373%
  Residential PSUs (h)           48             1              NM*
 Single Play Penetration (j)       37.4%          38.2%          -0.8 ppts
 Double Play Penetration(k)        33.0%          33.0%          -
 Triple Play Penetration (l)       29.6%          28.8%          0.8 ppts
 Digital Penetration (m)           86.2%          80.9%          5.3 ppts
 Revenue per Customer              $105.39        $105.83        -
Relationship (n)
Commercial
 Commercial Customer               321            295            9%
Relationships (d)(o)
 Customers
 Video (e)(o)                      172            173            -1%
 Internet (f)                      186            156            19%
 Phone (g)                         99             74             34%
 Commercial PSUs (h)               457            403            13%
 Net Additions/(Losses) (i)
 Video (e)(o)                      1              (4)            125%
 Internet (f)                      9              7              29%
 Phone (g)                         8              5              60%
 Commercial PSUs (h)               18             8              125%
* Not meaningful

Footnotes
See footnotes to unaudited summary of operating statistics on page 6 of the
addendum of this news release. The footnotes contain important disclosures
regarding the definitions used for these operating statistics.

As we entered the third quarter of 2012, we implemented new pricing and
packaging of our residential offerings designed to increase penetration of all
our products and gain a higher quality relationship with our customers. Our
compelling Charter triple play offers a competitive video product with more
than 100 HD channels, superior Internet, and fully-featured phone service, all
packaged together in a straight-forward, reasonably priced offering designed
to create value for our customers.

In the third quarter of 2012, we grew residential customer relationships
19,000 compared to a loss of 10,000 for the third quarter last year.
Residential PSUs increased by 48,000 compared to a gain of 1,000 in the
comparable year ago quarter. We added 9,000 commercial customer relationships
in the third quarter of 2012 compared to 3,000 in the prior-year quarter.

Residential video customers decreased by 73,000 in the third quarter of 2012
compared to a decline of 63,000 last year. The year over year change was
driven by our strategy to actively market only digital offerings, and the
transition to new selling methods. The majority of the video loss stemmed from
limited basic customers, and the loss of expanded basic customers declined by
approximately 65% year over year.

We continued to drive success with our Internet product, adding 69,000
residential Internet customers in the third quarter of 2012 compared to 53,000
last year. Our new triple play offer drove an increase of 52,000 phone
customers compared to a gain of 11,000 last year, reflecting the early success
of our new pricing and packaging.

Third quarter residential revenue per customer relationship totaled $105.39,
down slightly from $105.83 a year ago, reflecting entry-level pricing and
continued single play Internet sell-in despite a higher rate of triple play
sell-in.

We are focused on further improving the quality of our products and service.
We are implementing a number of organizational, operational, and go-to-market
changes that we believe will create a competitive advantage for Charter in the
marketplace. While we anticipate short-term impacts on customer connects,
revenue and operating expenses as we implement our new strategies, we expect
these efforts to drive long-term growth in our business. We also plan for
capital expenditures to remain elevated as we strive to increase penetration,
place higher levels of customer premise equipment per transaction, and
progressively move to an all-digital platform.

Third Quarter Financial Results

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND OPERATING DATA
(dollars in millions, except per share and share data)
                          Three Months Ended September 30,
                          2012        2011                 2011
                          Actual      Pro Forma  % Change  Actual     % Change
                                      (a)
REVENUES:
 Video                  $   906   $      (0.5)%    $   908  (0.2)%
                                       911
 Internet               467         434        7.6 %     433        7.9 %
 Telephone              208         216        (3.7)%    216        (3.7)%
 Commercial             168         139        20.9%     139        20.9%
 Advertising Sales      85          73         16.4%     73         16.4%
 Other                  46          40         15.0%     40         15.0%
 Total Revenues       1,880       1,813      3.7%      1,809      3.9 %
COSTS AND EXPENSES:
 Operating (excluding
depreciation              858         795        7.9%      792        8.3%
andamortization) (b)
 Selling, general and
administrative            371         364        1.9%      364        1.9%
(excludingstock
compensation expense) (c)
 Total operating   1,229       1,159      6.0%      1,156      6.3%
costs and expenses
  Adjusted EBITDA    $   651   $      (0.5)%    $   653  (0.3)%
                                        654
 Adjusted EBITDA    34.6%       36.1%                36.1%
margin
 Capital Expenditures   $   488   $                $   304
                                        304
 % Total Revenues       26.0%       16.8%                16.8%
Net loss                  $   (87)  $                $  
                                        (85)             (85)
Loss per common share,    $ (0.87)   $                $ (0.79)
basic and diluted                     (0.79)
Net cash flows from       $   468   $                $   405
operating activities                   406
Free cash flow            $   (17)  $                $   
                                        91              90

Footnotes
(a)            Pro forma results reflect certain acquisitions of cable
                 systems in 2011 as if they occurred as of January 1, 2011.
(b)             Operating expenses include programming, service, and
                 advertising sales expenses.
(c)              Selling, general and administrative expenses include general
                 and administrative and marketing expenses.
Adjusted EBITDA and free cash flow are defined in the "Use of Non-GAAP
Financial Metrics" section and are reconciled to net loss and cash flows from
operating activities, respectively, in the addendum of this news release.

Revenue

Third quarter 2012 revenues rose to $1.880 billion, up 3.7% on a pro forma
basis and 3.9% on an actual basis compared to the year-ago quarter led by
steady growth in Internet and commercial sales and also due to increased
advertising revenue.

Video revenues totaled $906 million in the third quarter, a decrease of 0.5%
on a pro forma basis  and 0.2% on an actual basis compared to the prior-year
period. Video revenues declined as a result of a decrease in residential basic
video customers partially offset by price increases and incremental revenues
from DVR and HD television services.

Third quarter 2012 Internet revenues were $467 million, growing 7.6% on a pro
forma basis  and 7.9% on an actual basis year over year, driven by the
addition of 307,000 Internet customers. Telephone revenues totaled $208
million, down 3.7% on a pro forma basis and actual basis over third quarter
2011 due to value-based pricing and revenue allocation in multi-product
packages. We added 116,000 phone customers in the last twelve months.

Commercial revenues grew to $168 million, increasing 20.9% year over year on a
pro forma and actual basis, reflecting higher sales to small and medium
businesses and carrier customers.

Advertising sales revenues were $85 million for the third quarter of 2012, a
16.4% increase on a pro forma and actual basis compared to the third quarter
of 2011 primarily driven by an increase in revenues from the political and
automotive sectors.

Operating Costs and Expenses

Third quarter total operating costs and expenses increased 6.0% on a pro forma
basis and 6.3% on an actual basis compared to the year-ago period, primarily
related to increases in programming, labor and service expenses. Third quarter
programming expenses increased $27 million on a pro forma basis and $29
million on an actual basis year over year reflecting contractual programming
increases partially offset by customer losses. Labor and service expenses
increased in the third quarter of 2012 primarily from increased preventive
maintenance and growth in our commercial business.

Adjusted EBITDA

Third quarter adjusted EBITDA of $651 million decreased 0.5% on a pro forma
basis and 0.3% on an actual basis compared to the year-ago quarter as higher
revenues were offset by increased operating costs and expenses. Adjusted
EBITDA margin declined to 34.6% for the third quarter of 2012 compared to
36.1% on a pro forma basis and an actual basis in the year-ago quarter.

Net Loss

Net loss was $87 million in the third quarter of 2012, compared to $85 million
on a pro forma and actual  basis in the year-ago period. Net loss increased
primarily due to higher depreciation and amortization partly offset by lower
interest expense. Net loss per common share was $0.87 in the third quarter of
2012 compared to $0.79 on a pro forma and actual basis during the same period
last year. The increase is a result of the factors described above and a
decrease in our weighted average shares outstanding as a result of share
repurchases in the last twelve months.

Capital Expenditures

Third quarter property, plant and equipment expenditures were $488 million
compared to $304 million in 2011. The increase was driven primarily by
investments in customer premise equipment ("CPE"), our commercial business,
and support capital. The CPE expenditures included higher set-top box
placement in new and existing customer homes and increases in inventory to
support customer growth activity. Support capital expenditures increased due
to fleet replacement, which was primarily timing related. During 2012, we
currently expect capital expenditures to be between $1.6 billion and $1.7
billion.

Cash Flow

Net cash flows from operating activities totaled $468 million, compared to
$406 million on a pro forma basis and $405 million on an actual basis in the
third quarter of 2011. The increase in net cash flows from operating
activities was primarily due to timing of trade working capital and lower cash
interest.

Free cash flow for the third quarter of 2012 was negative $17 million,
compared to free cash flow of $91 million on a pro forma basis and $90 million
on an actual basis in the same period last year. The decrease was driven
primarily by higher success-based capital expenditures offset by the increase
in cash flows from operating activities.

Conference Call

Charter will host a conference call on Tuesday, November 6, 2012 at 10:00 a.m.
Eastern Time (ET) related to the contents of this release.

The conference call will be webcast live via the Company's website at
charter.com. The webcast can be accessed by selecting "Investor & News Center"
from the lower menu on the home page. The call will be archived in the
"Investor & News Center" in the "Financial Information" section on the left
beginning two hours after completion of the call. Participants should go to
the webcast link no later than 10 minutes prior to the start time to register.

Those participating via telephone should dial 866-919-0894 no later than 10
minutes prior to the call. International participants should dial
706-679-9379. The conference ID code for the call is 28432644.

A replay of the call will be available at 855-859-2056 or 404-537-3406
beginning two hours after the completion of the call through the end of
business on December 6, 2012. The conference ID code for the replay is
28432644.

Additional Information Available on Website

The information in this press release should be read in conjunction with the
financial statements and footnotes contained in the Company's Form 10-Q for
quarter ended September30, 2012 available on the "Investor & News Center" of
our website at charter.com in the "Financial Information" section. A slide
presentation to accompany the conference call and a trending schedule
containing historical customer and financial data can also be found in the
"Financial Information" section.

Use of Non-GAAP Financial Metrics

The Company uses certain measures that are not defined by Generally Accepted
Accounting Principles ("GAAP") to evaluate various aspects of its business.
Adjusted EBITDA and free cash flow are non-GAAP financial measures and should
be considered in addition to, not as a substitute for, net loss or cash flows
from operating activities reported in accordance with GAAP. These terms, as
defined by Charter, may not be comparable to similarly titled measures used by
other companies. Adjusted EBITDA is reconciled to net loss and free cash flow
is reconciled to net cash flows from operating activities in the addendum of
this news release.

Adjusted EBITDA is defined as net loss plus net interest expense, income
taxes, depreciation and amortization, stock compensation expense, loss on
extinguishment of debt, and other operating (income) expenses, such as special
charges and (gain) loss on sale or retirement of assets. As such, it
eliminates the significant non-cash depreciation and amortization expense that
results from the capital-intensive nature of the Company's businesses as well
as other non-cash or special items, and is unaffected by the Company's capital
structure or investment activities. Adjusted EBITDA is used by management and
the Company's Board to evaluate the performance of the Company's business.
However, these measures are limited in that they do not reflect the periodic
costs of certain capitalized tangible and intangible assets used in generating
revenues and the cash cost of financing. Management evaluates these costs
through other financial measures.

Free cash flow is defined as net cash flows from operating activities, less
purchases of property, plant and equipment and changes in accrued expenses
related to capital expenditures.

The Company believes that adjusted EBITDA and free cash flow provide
information useful to investors in assessing Charter's performance and its
ability to service its debt, fund operations and make additional investments
with internally generated funds. In addition, adjusted EBITDA generally
correlates to the leverage ratio calculation under the Company's credit
facilities or outstanding notes to determine compliance with the covenants
contained in the credit facilities and notes (all such documents have been
previously filed with the United States Securities and Exchange Commission).
For the purpose of calculating compliance with leverage covenants, we use
adjusted EBITDA, as presented, excluding certain expenses paid by our
operating subsidiaries to other Charter entities. Our debt covenants refer to
these expenses as management fees which fees were in the amount of $44 million
and $40 million for the three months ended September30, 2012 and 2011,
respectively, and $126 million and $110 million for the nine months ended
September30, 2012 and 2011, respectively.

In addition to the actual results for the three and nine months ended
September30, 2012 and 2011, we have provided pro forma results in this
release for the three and nine months ended September30, 2011. We believe
these pro forma results facilitate meaningful analysis of the results of
operations. Pro forma results in this release reflect certain acquisitions of
cable systems in 2011 as if they occurred as of January 1, 2011. Pro forma
statements of operations for the three and nine months ended September30,
2011 are provided in the addendum of this news release.

About Charter

Charter (NASDAQ: CHTR) is a leading broadband communications company and the
fourth-largest cable operator in the United States. Charter provides a full
range of advanced broadband services, including advanced Charter TV® video
entertainment programming, Charter Internet® access, and Charter Phone®.
Charter Business® similarly provides scalable, tailored, and cost-effective
broadband communications solutions to business organizations, such as
business-to-business Internet access, data networking, business telephone,
video and music entertainment services, and wireless backhaul. Charter's
advertising sales and production services are sold under the Charter Media®
brand. More information about Charter can be found at charter.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This release includes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), regarding, among other things, our plans, strategies and prospects,
both business and financial. Although we believe that our plans, intentions
and expectations reflected in or suggested by these forward-looking statements
are reasonable, we cannot assure you that we will achieve or realize these
plans, intentions or expectations. Forward-looking statements are inherently
subject to risks, uncertainties and assumptions including, without limitation,
the factors described under "Risk Factors" from time to time in our filings
with the Securities and Exchange Commission ("SEC"). Many of the
forward-looking statements contained in this release may be identified by the
use of forward-looking words such as "believe," "expect," "anticipate,"
"should," "planned," "will," "may," "intend," "estimated," "aim," "on track,"
"target," "opportunity," "tentative," "positioning," "designed," "create" and
"potential," among others. Important factors that could cause actual results
to differ materially from the forward-looking statements we make in this
release are set forth in other reports or documents that we file from time to
time with the SEC, and include, but are not limited to:

  oour ability to sustain and grow revenues and free cash flow by offering
    video, Internet, telephone, advertising and other services to residential
    and commercial customers, to adequately meet the customer experience
    demands in our markets and to maintain and grow our customer base,
    particularly in the face of increasingly aggressive competition, the need
    for innovation and the related capital expenditures and the difficult
    economic conditions in the United States;
  othe development and deployment of new products and technologies;
  othe impact of competition from other market participants, including but
    not limited to incumbent telephone companies, direct broadcast satellite
    operators, wireless broadband and telephone providers, digital subscriber
    line ("DSL") providers, and video provided over the Internet;
  ogeneral business conditions, economic uncertainty or downturn, high
    unemployment levels and the level of activity in the housing sector;
  oour ability to obtain programming at reasonable prices or to raise prices
    to offset, in whole or in part, the effects of higher programming costs
    (including retransmission consents);
  othe effects of governmental regulation on our business;
  othe availability and access, in general, of funds to meet our debt
    obligations prior to or when they become due and to fund our operations
    and necessary capital expenditures, either through (i) cash on hand, (ii)
    free cash flow, or (iii) access to the capital or credit markets; and
  oour ability to comply with all covenants in our indentures and credit
    facilities any violation of which, if not cured in a timely manner, could
    trigger a default of our other obligations under cross-default provisions.

All forward-looking statements attributable to us or any person acting on our
behalf are expressly qualified in their entirety by this cautionary statement.
We are under no duty or obligation to update any of the forward-looking
statements after the date of this release.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND OPERATING DATA
(dollars in millions, except per share and share data)
                  Three Months Ended September     Nine Months Ended September 30,
                  30,
                  2012        2011                 2012        2011
                  Actual      Actual       %       Actual      Actual       %
                                           Change                           Change
REVENUES:
 Video          $        $        (0.2)%  $         $   2,737  (0.9)%
                  906         908                  2,712
 Internet       467         433          7.9%    1,384       1,266        9.3%
 Telephone      208         216          (3.7)%  642         641          0.2%
 Commercial     168         139          20.9%   481         397          21.2%
 Advertising    85          73           16.4%   238         211          12.8%
Sales
 Other          46          40           15.0%   134         118          13.6%
 Total        1,880       1,809        3.9%    5,591       5,370        4.1%
Revenues
COSTS AND
EXPENSES:
 Operating
(excluding
depreciation      858         792          8.3%    2,503       2,344        6.8%
andamortization)
(a)
 Selling,
general and
administrative    371         364          1.9%    1,092       1,037        5.3%
(excludingstock
compensation
expense) (b)
 Total
operating costs   1,229       1,156        6.3%    3,595       3,381        6.3%
and expenses
 Adjusted       651         653          (0.3)%  1,996       1,989        0.4%
EBITDA
 Adjusted       34.6%       36.1%                35.7%       37.0%
EBITDA margin
 Depreciation   424         405                  1,247       1,181
and amortization
 Stock
compensation      13          10                   37          25
expense
 Other
operating         3           1                    2           7
expenses, net
 Income from  211         237                  710         776
operations
OTHER EXPENSES:
 Interest       (229)       (244)                (691)       (718)
expense, net
 Loss on
extinguishment of -           (4)                  (74)        (124)
debt
 Other expense, -           (2)                  (1)         (4)
net
                  (229)       (250)                (766)       (846)
Loss before       (18)        (13)                 (56)        (70)
income taxes
Income tax        (69)        (72)                 (208)       (232)
expense
Net loss          $        $                $         $   
                  (87)       (85)                (264)      (302)
LOSS PER COMMON   $         $                 $         $   
SHARE, BASIC AND  (0.87)      (0.79)               (2.65)      (2.74)
DILUTED:
Weighted average
common shares     99,694,672  108,420,169          99,542,021  110,285,852
outstanding,
basic and diluted

(a)              Operating expenses include programming, service, and
                 advertising sales expenses.
(b)              Selling, general and administrative expenses include general
                 and administrative and marketing expenses.
Certain prior year amounts have been reclassified to conform with the 2012
presentation, including the reflection of revenues earned from customers
residing in multi-dwelling residential structures from commercial revenues to
video and Internet revenues.
Adjusted EBITDA is a non-GAAP term. See page 7 of this addendum for the
reconciliation of adjusted EBITDA to net loss as defined by GAAP.



CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND OPERATING DATA
(dollars in millions, except per share and share data)
                  Three Months Ended September     Nine Months Ended September 30,
                  30,
                  2012        2011                 2012        2011
                  Actual      Pro Forma    %       Actual      Pro Forma    %
                              (a)          Change              (a)          Change
REVENUES:
 Video          $        $       (0.5)%  $         $          (1.4)%
                  906        911                  2,712       2,750
 Internet       467         434          7.6 %   1,384       1,271        8.9%
 Telephone      208         216          (3.7)%  642         642          - %
 Commercial     168         139          20.9%   481         398          20.9%
 Advertising    85          73           16.4%   238         211          12.8%
Sales
 Other          46          40           15.0%   134         118          13.6%
 Total        1,880       1,813        3.7%    5,591       5,390        3.7%
Revenues
COSTS AND
EXPENSES:
 Operating
(excluding
depreciation      858         795          7.9%    2,503       2,355        6.3%
andamortization)
(b)
 Selling,
general and
administrative    371         364          1.9%    1,092       1,041        4.9%
(excludingstock
compensation
expense) (c)
Total operating
costs and         1,229       1,159        6.0%    3,595       3,396        5.9%
expenses
 Adjusted       651         654          (0.5)%  1,996       1,994        0.1%
EBITDA
 Adjusted       34.6%       36.1%                35.7%       37.0%
EBITDA margin
 Depreciation   424         406                  1,247       1,187
and amortization
 Stock
compensation      13          10                   37          25
expense
 Other
operating         3           1                    2           7
expenses, net
 Income from  211         237                  710         775
operations
OTHER EXPENSES:
 Interest       (229)       (244)                (691)       (718)
expense, net
 Loss on
extinguishment of -           (4)                  (74)        (124)
debt
 Other expense, -           (2)                  (1)         (4)
net
                  (229)       (250)                (766)       (846)
Loss before       (18)        (13)                 (56)        (71)
income taxes
Income tax        (69)        (72)                 (208)       (232)
expense
Net loss          $        $                $         $   
                  (87)       (85)                (264)      (303)
LOSS PER COMMON   $         $                 $         $   
SHARE, BASIC AND  (0.87)      (0.79)               (2.65)      (2.74)
DILUTED:
Weighted average
common shares     99,694,672  108,420,169          99,542,021  110,285,852
outstanding,
basic and diluted

(a)             Pro forma results reflect certain acquisitions of cable
                 systems in 2011 as if they occurred as of January 1, 2011.
(b)              Operating expenses include programming, service, and
                 advertising sales expenses.
(c)              Selling, general and administrative expenses include general
                 and administrative and marketing expenses.
September 30, 2011.  Pro forma revenues and operating costs and expenses
increased by $4 million and $3 million, respectively, for the three months
ended September 30, 2011 and net loss remained unchanged. Pro forma revenues,
operating costs and expenses and net loss increased by $20 million, $15
million and $1 million, respectively, for the nine months ended September 30,
2011.



Certain prior year amounts have been reclassified to conform with the 2012
presentation, including the reflection of revenues earned from customers
residing in multi-dwelling residential structures from commercial revenues to
video and Internet revenues.



Adjusted EBITDA is a non-GAAP term. See page 7 of this addendum for the
reconciliation of adjusted EBITDA to net loss as defined by GAAP.



CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
                                   September 30,         December 31,

                                   2012                  2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents          $        868  $          2
Restricted cash and cash           27                    27
equivalents
Accounts receivable, net           254                   272
Prepaid expenses and other current 80                    69
assets
Total current assets               1,229                 370
INVESTMENT IN CABLE PROPERTIES:
Property, plant and equipment, net 7,159                 6,897
Franchises                         5,287                 5,288
Customer relationships, net        1,492                 1,704
Goodwill                           953                   954
Total investment in cable          14,891                14,843
properties, net
OTHER NONCURRENT ASSETS            377                   392
Total assets                       $      16,497    $     15,605
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued       $       1,246   $      1,153
expenses
Current portion of long-term debt  870                   -
Total current liabilities          2,116                 1,153
LONG-TERM DEBT                     12,820                12,856
DEFERRED INCOME TAXES              1,054                 847
OTHER LONG-TERM LIABILITIES        334                   340
SHAREHOLDERS' EQUITY               173                   409
Total liabilities and              $     16,497     $     15,605
shareholders' equity



CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
                                   Three Months Ended   Nine Months Ended
                                   September 30,        September 30,
                                   2012      2011       2012        2011
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss                           $       $  (85)  $  (264)  $  
                                   (87)                             (302)
Adjustments to reconcile net loss
to net cash flows from operating
activities:
Depreciation and amortization      424       405        1,247       1,181
Noncash interest expense           9         7          33          27
Loss on extinguishment of debt     -         4          74          124
Deferred income taxes              67        70         203         225
Other, net                         14        10         25          26
Changes in operating assets and
liabilities, net of effects from
acquisitions and dispositions:
Accounts receivable                2         (10)       18          (5)
Prepaid expenses and other assets  (1)       2          (12)        (4)
Accounts payable, accrued          40        2          67          40
expenses and other
Net cash flows from operating      468       405        1,391       1,312
activities
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of property, plant and   (488)     (304)      (1,296)     (984)
equipment
Change in accrued expenses         3         (11)       16          (11)
related to capital expenditures
Sales (purchases) of cable         (2)       (89)       19          (89)
systems, net
Other, net                         (7)       (6)        (18)        (20)
Net cash flows from investing      (494)     (410)      (1,279)     (1,104)
activities
CASH FLOWS FROM FINANCING
ACTIVITIES:
Borrowings of long-term debt       1,536     240        4,353       3,801
Repayments of long-term debt       (635)     (279)      (3,554)     (3,645)
Payments for debt issuance costs   (17)      -          (41)        (43)
Purchase of treasury stock         -         (116)      (4)         (323)
Other, net                         5         (2)        -           2
Net cash flows from financing      889       (157)      754         (208)
activities
NET INCREASE (DECREASE) IN CASH    863       (162)      866         -
AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS,         32        194        29          32
beginning of period
CASH AND CASH EQUIVALENTS, end of  $  895  $   32   $  895    $    32
period
CASH PAID FOR INTEREST             $  199  $  247    $  647    $   649

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED SUMMARY OF OPERATING STATISTICS

(in thousands, except ARPU and penetration data)
                           Approximate as of
                           Actual
                           September 30,  June 30,    December    September
                           2012 (a)       2012 (a)    31, 2011    30, 2011 (a)
                                                      (a)
Footprint
 Estimated Homes Passed  11,996         11,979      11,960      11,928
Video (b)
 Estimated Homes Passed  11,665         11,649      11,634      11,602
Internet (b)
 Estimated Homes Passed  11,040         10,966      10,871      10,840
Phone (b)
Penetration Statistics
 Video Penetration of    33.6%          34.2%       34.6%       35.1%
Homes Passed Video (c)
 Internet Penetration of 32.0%          31.4%       30.0%       29.5%
Homes Passed Internet (c)
 Phone Penetration of    17.0%          16.7%       16.5%       16.3%
Homes Passed Phone (c)
Residential
 Residential Customer    5,015          4,996       4,927       4,922
Relationships (d)
 Residential Non-Video   990            898         783         734
Customers
 % Non-Video             19.7%          18.0%       15.9%       14.9%
 Customers
 Video (e)               4,025          4,098       4,144       4,188
 Internet (f)            3,731          3,662       3,492       3,424
 Phone (g)               1,880          1,828       1,791       1,764
 Residential PSUs (h) 9,636          9,588       9,427       9,376
 Residential PSU /
Customer Relationships     1.92           1.92        1.91        1.90
(d)(h)
 Net Additions/(Losses)
(i)
 Video (e)               (73)           (66)        (44)        (63)
 Internet (f)            69             29          68          53
 Phone (g)               52             6           27          11
 Residential PSUs (h) 48             (31)        51          1
 Single Play Penetration 37.4%          37.0%       37.7%       38.2%
(j)
 Double Play             33.0%          34.2%       33.2%       33.0%
Penetration(k)
 Triple Play Penetration 29.6%          28.8%       29.1%       28.8%
(l)
 Digital Penetration (m) 86.2%          84.7%       82.0%       80.9%
 Revenue per Customer    $  105.39     $  106.00  $  105.73  $  105.83
Relationship (n)
Commercial
 Commercial Customer     321            312         298         295
Relationships (d)(o)
 Customers
 Video (e)(o)            172            171         170         173
 Internet (f)            186            177         163         156
 Phone (g)               99             91          79          74
  Commercial PSUs (h)  457            439         412         403
 Net Additions/(Losses)
(i)
 Video (e)(o)            1              (6)         (3)         (4)
 Internet (f)            9              8           7           7
 Phone (g)               8              6           5           5
 Commercial PSUs (h)  18             8           9           8
Digital Video RGUs (p)     3,484          3,484       3,410       3,401
Residential Product ARPU
 Video (q)               $    74.42  $         $         $   
                                          73.41       72.21      72.08
 Internet (q)            $    42.15  $         $         $   
                                          42.46       42.65      42.71
 Phone (q)               $    37.44  $         $         $   
                                          39.69       40.72      40.93

See footnotes to unaudited summary of operating statistics on page 6 of this
addendum.



    We calculate the aging of customer accounts based on the monthly billing
    cycle for each account. On that basis, at September 30, 2012, June 30,
    2012, December 31, 2011 and September 30, 2011, customers include
    approximately 16,900, 17,000, 18,600 and 15,500 customers, respectively,
(a) whose accounts were over 60 days past due in payment, approximately 3,400,
    2,900, 2,500 and 1,900 customers, respectively, whose accounts were over
    90 days past due in payment and approximately 1,600, 1,300, 1,400 and
    1,000 customers, respectively, whose accounts were over 120 days past due
    in payment.
    "Homes Passed" represent our estimate of the number of units, such as
    single family homes, apartment and condominium units and commercial
(b) establishments passed by our cable distribution network in the areas where
    we offer the service indicated. These estimates are updated for all
    periods presented based upon the information available at that time.
(c) "Penetration" represents residential customers as a percentage of homes
    passed for the service indicated.
    "Customer Relationships" include the number of customers that receive one
    or more levels of service, encompassing video, Internet and phone
    services, without regard to which service(s) such customers receive. This
(d) statistic is computed in accordance with the guidelines of the National
    Cable & Telecommunications Association (NCTA). Commercial customer
    relationships includes video customers in commercial structures, which are
    calculated on an EBU basis (see footnote (o)) and non-video commercial
    customer relationships.
    "Video Customers" represent those customers who subscribe to our video
    services. Effective January 1, 2012, Charter revised its reporting of
    customers whereby customers residing in multi-dwelling residential
    structures are now included in residential customer relationships and PSUs
    (see footnote (h)) rather than commercial. Further, residential PSUs and
(e) customer relationships are no longer calculated on an EBU (see footnote
    (o)) basis but are based on separate billing relationships. The impact of
    these changes increased residential customer relationships and PSUs and
    reduced commercial customer relationships and PSUs, with an overall net
    decrease to total customer relationships and PSUs. Prior periods were
    reclassified to conform to the 2012 presentation.
(f) "Internet Customers" represent those customers who subscribe to our
    Internet service.
(g) "Phone Customers" represent those customers who subscribe to our phone
    service.
(h) "Primary Service Units" or "PSUs" represent the total of video, Internet
    and phone customers.
(i) "Net Additions/(Losses)" represent the pro forma net gain or loss in the
    respective quarter for the service indicated.
    "Single Play Penetration" represents residential customers receiving one
(j) of Charter service offerings, including video, Internet or phone, as a %
    of residential customer relationships.
    "Double Play Penetration" represents residential customers receiving two
(k) of Charter service offerings, including video, Internet and/or phone, as a
    % of residential customer relationships.
    "Triple Play Penetration" represents residential customers receiving all
(l) three Charter service offerings, including video, Internet and phone, as a
    % of residential customer relationships.
(m) "Digital Penetration" represents the number of residential digital video
    RGUs as a percentage of residential video customers.
    "Revenue per Customer Relationship" is calculated as total residential
(n) video, Internet and phone quarterly pro forma revenue divided by three
    divided by average pro forma residential customer relationships during the
    respective quarter.
    Included within commercial video customers are those in commercial
    structures, which are calculated on an equivalent bulk unit ("EBU")
    basis. We calculate EBUs by dividing the bulk price charged to accounts
    in an area by the published rate charged to non-bulk residential customers
    in that market for the comparable tier of service. This EBU method of
(o) estimating video customers is consistent with the methodology used in
    determining costs paid to programmers and is consistent with the
    methodology used by other multiple system operators (MSOs). As we
    increase our published video rates to residential customers without a
    corresponding increase in the prices charged to commercial service
    customers, our EBU count will decline even if there is no real loss in
    commercial service customers.
(p) "Digital video RGUs" include all video customers who have one or more
    digital set-top boxes or cable cards in their home or business.
    "Average Monthly Revenue per Customer" or "ARPU" represents quarterly pro
(q) forma revenue for the service indicated divided by three divided by the
    average number of pro forma customers for the service indicated during the
    respective quarter.



CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
(dollars in millions)
                                Three Months Ended      Nine Months Ended
                                September 30,
                                                        September 30,
                                2012       2011         2012         2011
                                Actual     Actual       Actual       Actual
Net loss                        $  (87)  $       $  (264)   $   
                                           (85)                     (302)
Plus: Interest expense, net    229        244          691          718
 Income tax expense   69         72           208          232
 Depreciation and     424        405          1,247        1,181
amortization
 Stock compensation   13         10           37           25
expense
 Loss on              -          4            74           124
extinguishment of debt
 Other, net           3          3            3            11
Adjusted EBITDA (b)             651        653          1,996        1,989
Less: Purchases of property,   (488)      (304)        (1,296)      (984)
plant and equipment
Adjusted EBITDA less capital    $  163   $        $   700   $  
expenditures                               349                      1,005
Net cash flows from operating   $  468   $        $  1,391   $  
activities                                 405                      1,312
Less: Purchases of property,   (488)      (304)        (1,296)      (984)
plant and equipment
 Change in accrued
expenses related to capital     3          (11)         16           (11)
expenditures
Free cash flow                  $  (17)  $       $   111   $    
                                           90                       317
                                Three Months Ended      Nine Months Ended
                                September 30,
                                                        September 30,
                                2012       2011         2012         2011
                                Actual     Pro forma    Actual       Pro forma
                                           (a)                       (a)
Net loss                        $  (87)  $        $   (264)  $   
                                           (85)                     (303)
Plus: Interest expense, net    229        244          691          718
 Income tax expense   69         72           208          232
 Depreciation and     424        406          1,247        1,187
amortization
 Stock compensation   13         10           37           25
expense
 Loss on              -          4            74           124
extinguishment of debt
 Other, net           3          3            3            11
Adjusted EBITDA (b)             651        654          1,996        1,994
Less: Purchases of property,   (488)      (304)        (1,296)      (984)
plant and equipment
Adjusted EBITDA less capital    $  163   $        $   700   $  
expenditures                               350                      1,010
Net cash flows from operating   $  468   $        $  1,391    $  
activities                                 406                      1,317
Less: Purchases of property,   (488)      (304)        (1,296)      (984)
plant and equipment
 Change in accrued
expenses related to             3          (11)         16           (11)
capitalexpenditures
Free cash flow                  $  (17)  $       $   111   $   
                                            91                      322

(a)            Pro forma results reflect certain acquisitions of cable
                systems in 2011 as if they occurred as of January 1, 2011.
(b)             See page 1 and 2 of this addendum for detail of the components
                included within adjusted EBITDA.
The above schedules are presented in order to reconcile adjusted EBITDA and
free cash flows, both non-GAAP measures, to the most directly comparable GAAP
measures in accordance with Section 401(b) of the Sarbanes-Oxley Act.



CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
CAPITAL EXPENDITURES

(dollars in millions)
                                   Three Months Ended   Nine Months Ended

                                   September 30,        September 30,
                                   2012       2011      2012         2011
Customer premise equipment (a)     $   255  $  156  $    641  $  470
Scalable infrastructure (b)        74         58        320          265
Line extensions (c)                52         29        111          78
Upgrade/Rebuild (d)                43         30        104          86
Support capital (e)                64         31        120          85
 Total capital expenditures (f)  $  488   $  304  $  1,296   $  984

       Customer premise equipment includes costs incurred at the customer
(a) residence to secure new customers and revenue generating units. It
       also includes customer installation costs and customer premise
       equipment (e.g., set-top boxes and cable modems).
       Scalable infrastructure includes costs, not related to customer premise
(b)    equipment, to secure growth of new customers and revenue generating
       units, or provide service enhancements (e.g., headend equipment).
       Line extensions include network costs associated with entering new
(c)    service areas (e.g., fiber/coaxial cable, amplifiers, electronic
       equipment, make-ready and design engineering).
(d)    Upgrade/rebuild includes costs to modify or replace existing
       fiber/coaxial cable networks, including betterments.
       Support capital includes costs associated with the replacement or
(e)    enhancement of non-network assets due to technological and physical
       obsolescence (e.g., non-network equipment, land, buildings and
       vehicles).
       Total capital expenditures includes $82 million and $48 million of
       capital expenditures related to commercial services for the three
(f)    months ended September30, 2012 and 2011, respectively, and $181
       million and $120 million for the nine months ended September30, 2012
       and 2011.
Certain prior period amounts have been reclassified to conform with the 2012
presentation.



SOURCE Charter Communications, Inc.

Website: http://www.charter.com
Contact: Media, Anita Lamont, +1-314-543-2215, or Analysts, Robin Gutzler,
+1-314-543-2389
 
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