Charter Announces Fourth Quarter and Full Year 2012 Results

         Charter Announces Fourth Quarter and Full Year 2012 Results

Progress on New Operating Strategies Delivers Results

PR Newswire

STAMFORD, Conn., Feb. 22, 2013

STAMFORD, Conn., Feb. 22, 2013 /PRNewswire/ --Charter Communications, Inc.
(Nasdaq: CHTR)(along with its subsidiaries, the "Company" or "Charter") today
reported financial and operating results for the three and twelve months ended
December31, 2012.

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

Key highlights:

  oFourth quarter 2012 residential customer relationships increased by
    20,000, a four-fold increase over the fourth quarter of 2011. Residential
    customer relationships grew by 108,000 in 2012, compared to a loss of
    20,000 in 2011.
  oRevenues grew to $1.913 billion in the fourth quarter of 2012, up 4.3% as
    compared to the prior-year period, driven by growth in Internet and
    commercial customers, and higher sales of video and advertising. Total
    revenues for the full year rose 3.9% on a pro forma^1  basis and 4.2% on
    an actual basis.
  oResidential Internet revenues rose 9.0% in the fourth quarter, compared to
    the year-ago quarter as Charter added 293,000 Internet customers over the
    past twelve months, 28% more than in 2011.
  oCommercial revenues grew 20.4% in the fourth quarter, supported by growth
    across all segments, marking the seventh consecutive quarter of growth in
    excess of 20%. Full year commercial revenues increased 20.7% on a pro
    forma basis and 21.0% on an actual basis.
  oAdjusted EBITDA^2 for the fourth quarter increased to $698 million, up
    1.7% compared to prior year. Fourth quarter net loss totaled $40 million,
    compared to $67 million in the comparable prior-year period.
  oFree cash flow^2 for the quarter was $33 million and net cash flows from
    operating activities totaled $485 million. Free cash flow for the year was
    $144 million and cash flows from operating activities were $1.876 billion.

"Our fourth quarter results provide early evidence that our strategic changes
are working as planned," said Tom Rutledge, Charter President and CEO. "We
are providing a more competitive product and service, and as a result,
customer relationships are growing and underlying subscription revenue is
accelerating. Across both our residential and commercial businesses, our
strategies are designed to drive higher market penetration and sustainable
growth."

^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.
   Adjusted EBITDA and free cash flow are defined in the "Use of Non-GAAP
^2 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
                                       December 31,  December 31,  Y/Y Change
                                       2012 (a)      2011 (a)
Footprint
 Estimated Video Passings (b)         12,112        12,013        1%
 Estimated Internet Passings (b)      11,810        11,692        1%
 Estimated Telephone Passings (b)     11,139        10,891        2%
Penetration Statistics
 Video Penetration of Estimated       34.3%         35.9%         -1.6 ppts
Video Passings (c)
 Internet Penetration of Estimated    33.7%         31.3%         2.4 ppts
Internet Passings (c)
 Telephone Penetration of Estimated   18.1%         17.2%         0.9 ppts
Telephone Passings (c)
Residential
 Residential Customer Relationships   5,035         4,927         2%
(d)
 Residential Non-Video Customers      1,046         783           34%
 % Non-Video                          20.8%         15.9%         4.9 ppts
Customers
Video (e)                              3,989         4,144         -4%
Internet (f)                           3,785         3,492         8%
Telephone (g)                          1,914         1,791         7%
Residential PSUs (h)                   9,688         9,427         3%
Residential PSU / Customer             1.92          1.91
Relationships (d)(h)
Quarterly Net Additions/(Losses) (i)
Video (e)                              (36)          (44)          18%
Internet (f)                           54            68            -21%
Telephone (g)                          34            27            26%
Residential PSUs (h)                   52            51            2%
Single Play Penetration (j)            37.6%         37.7%         -0.1 ppts
Double Play Penetration (k)            32.5%         33.2%         -0.7 ppts
Triple Play Penetration (l)            29.9%         29.1%         0.8 ppts
Digital Penetration (m)                86.9%         82.0%         4.9 ppts
Revenue per Customer Relationship (n)  $105.78       $105.73       -
Commercial
 Commercial Customer Relationships    325           298           9%
(d)(o)
Customers
Video (o)                              169           170           -1%
Internet (f)                           193           163           18%
Telephone (g)                          105           79            33%
Commercial PSUs (h)                    467           412           13%
Quarterly Net Additions/(Losses) (i)
Video (o)                              (3)           (3)           -
Internet (f)                           7             7             -
Telephone (g)                          6             5             20%
Commercial PSUs (h)                    10            9             11%



Footnotes
In thousands, except ARPU and penetration data. 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.

During 2012, we implemented several new operating strategies to further
position Charter for growth. We made significant progress in enhancing our
product set and changing the way we do business to better serve our
customers. At mid-year 2012, we implemented new pricing and packaging of our
residential offerings and revamped our go-to-market approach, both designed to
increase the penetration of our products and to produce a higher quality,
longer-term relationship with our customers. As a result of these new
operating strategies, in the second half of 2012, we grew our triple play
penetration by 110 basis points, from 28.8% to 29.9%. This compares to an
increase of 40 basis points in the second half of 2011.

In the fourth quarter of 2012, we grew residential customer relationships
20,000, up from a gain of 5,000 in the fourth quarter last year. Residential
PSUs increased by 52,000, in line with the gain in the year-ago quarter. We
added 4,000 commercial customer relationships in the fourth quarter of 2012
compared to 3,000 in the prior-year quarter.

Residential video customers decreased by 36,000 in the fourth quarter of 2012,
18% better than the decline of 44,000 last year. In 2011, we lost 192,000
expanded basic video customers and in 2012, we reduced that loss to 12,000.
The year-over-year improvement was driven by a combination of factors
including our enhanced video product, which now includes over 100 HD channels,
and the transition to new selling methods.

We added 54,000 residential Internet customers in the fourth quarter of 2012
compared to 68,000 a year ago. With our new pricing and packing, we no longer
offered deeply discounted standalone offers as compared to the fourth quarter
of 2011, when we actively marketed a $19.99 promotional offer for Internet
service, as well as a low-priced double play Internet and phone offer.

Fourth quarter residential revenue per customer relationship totaled $105.78,
up slightly from $105.73 in 2011, reflecting better product sell-in offset by
entry-level pricing.

Fourth 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 December 31,
                                            2012         2011
                                            Actual       Actual       % Change
REVENUES:
Video                                       $   927   $   902   2.8%
Internet                                    482          442          9.0%
Telephone                                   186          217          (14.3)%
Commercial                                  177          147          20.4%
Advertising sales                           96           81           18.5%
Other                                       45           45           —%
Total Revenues                              1,913        1,834        4.3%
COSTS AND EXPENSES:
Total operating costs and expenses          1,215        1,148        5.8%
(excluding depreciation and amortization)
Adjusted EBITDA                             $   698   $   686   1.7%
Adjusted EBITDA margin                      36.5%        37.4%
Capital Expenditures                        $   449   $   327
% Total Revenues                            23.5%        17.8%
Net loss                                    $   (40)  $   (67)
Loss per common share, basic and diluted    $  (0.41)   $  (0.63)
Net cash flows from operating activities    $   485   $   425
Free cash flow                              $    33  $   166



Revenue

Fourth quarter 2012 revenues were $1.913 billion, up 4.3% compared to the
year-ago quarter, due to growth in video, Internet, commercial and advertising
revenues.

Video revenues totaled $927 million in the fourth quarter, an increase of 2.8%
compared to the prior-year period. Video revenue growth was driven by price
increases and higher sales of DVR and HD services, partially offset by a
decrease in residential video customers.

Internet revenues grew 9.0% compared to the year-ago quarter to $482 million,
driven by an 8.4% increase in our Internet customer base. Telephone revenues
totaled $186 million, down 14.3% over fourth quarter 2011 due to value-based
pricing and revenue allocation in multi-product packages, partially offset by
the addition of 123,000 phone customers in the last twelve months.

With 20.4% year-over-year growth, commercial revenues rose to $177 million,
reflecting higher sales to small and medium businesses and carrier customers.

Fourth quarter advertising sales revenues of $96 million increased 18.5%
compared to the year-ago quarter, and benefited from the November political
election and from strength in the automotive sector.

Operating Costs and Expenses

Fourth quarter total operating costs and expenses increased 5.8% compared to
the year-ago period, reflecting increases in programming expenses and costs to
service customers. Fourth quarter programming expenses increased $26 million
year-over-year, reflecting contractual programming increases, partially offset
by customer losses. Costs to service our customers increased during the fourth
quarter of 2012 primarily from greater spending on preventive maintenance.

Adjusted EBITDA

Fourth quarter adjusted EBITDA of $698 million increased 1.7% compared to the
year-ago quarter. Adjusted EBITDA margin declined to 36.5% for the fourth
quarter of 2012 compared to 37.4% in the year-ago quarter.

Net Loss

Net loss totaled $40 million in the fourth quarter of 2012, an improvement
compared to $67 million in the year-ago period. Our net loss improvement
reflects our lower interest expense and a gain realized on the extinguishment
of debt in the fourth quarter of 2012, partly offset by higher depreciation
and amortization. Net loss per common share was $0.41 in the fourth quarter of
2012 compared to $0.63 during the same period last year. The decrease is a
result of our lower net loss in the fourth quarter of 2012, partially offset
by a decrease in our weighted average shares outstanding as a result of share
repurchases in 2011.

Capital Expenditures

Property, plant and equipment expenditures were $449 million in the fourth
quarter of 2012, compared to $327 million in 2011. The increase was primarily
driven by investments in customer premise equipment ("CPE"), upgrade and
rebuild, commercial growth and support capital. The CPE expenditures included
higher set-top box placement in new and existing customer homes. During the
quarter we also completed higher levels of plant replacement in select regions
of Charter's network that have historically performed below the rest of our
systems. Support capital expenditures increased due to fleet replacement and
real estate expenditures related to our organizational realignment.

Cash Flow

During the fourth quarter of 2012, net cash flows from operating activities
totaled $485 million, compared to $425 million in the fourth quarter of 2011.
The increase in net cash flows from operating activities was primarily driven
by the timing of trade working capital and an increase in adjusted EBITDA.

Free cash flow for the fourth quarter of 2012 was $33 million, compared to
$166 million during the same period last year. The decrease was primarily the
result of higher capital expenditures.

In the fourth quarter of 2012, Charter redeemed the remaining $1.1 billion of
13.5% senior notes due 2016 and repaid $750 million of bank debt. Charter also
issued $1.0 billion of 5.125% senior unsecured notes due 2023 in the fourth
quarter of 2012.



Year to Date Financial Results
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND OPERATING DATA

(dollars in millions, except per share and share data)
                        Year Ended December 31,
                        2012         2011                 2011
                        Actual       Pro forma  % Change  Actual      % Change
REVENUES:
Video                   $  3,639    $        (0.4)%    $  3,639   —%
                                     3,652
Internet                1,866        1,713      8.9%      1,708       9.3%
Telephone               828          859        (3.6)%    858         (3.5)%
Commercial              658          545        20.7%     544         21.0%
Advertising sales       334          292        14.4%     292         14.4%
Other                   179          163        9.8%      163         9.8%
Total Revenues          7,504        7,224      3.9%      7,204       4.2%
COSTS AND EXPENSES:
Total operating costs
and expenses (excluding 4,810        4,544      5.9%      4,529       6.2%
depreciation and
amortization)
Adjusted EBITDA         $  2,694    $        0.5%      $  2,675   0.7%
                                     2,680
Adjusted EBITDA margin  35.9%        37.1%                37.1%
Capital Expenditures    $  1,745    $                  $  1,311
                                     1,311
% Total Revenues        23.3%        18.1%                18.2%
Net loss                $   (304)  $                 $  
                                     (370)               (369)
Loss per common share,  $  (3.05)  $                 $ 
basic and diluted                    (3.39)               (3.39)
Net cash flows from     $  1,876    $                  $  1,737
operating activities                 1,742
Free cash flow          $   144   $                $   483
                                     488



Revenue

For the year ended December31, 2012, revenues rose to $7.504 billion, up 3.9%
on a pro forma basis, and 4.2% on an actual basis, compared to the prior year.
We continued to grow our Internet and commercial businesses, and advertising
was supported by a political election year and strength in the automotive
segment.

Operating Costs and Expenses

Operating costs and expenses totaled $4.810 billion in 2012, an increase of
5.9% on a pro forma basis, and 6.2% on an actual basis compared to 2011, due
to higher programming costs, increased maintenance and marketing expenses,
increased service labor costs, and higher costs associated with growing our
commercial business.

Adjusted EBITDA

Adjusted EBITDA was $2.694 billion for the year ended December31, 2012, an
increase of 0.5% compared to 2011 on a pro forma basis, and 0.7% on an actual
basis. Charter's adjusted EBITDA margin declined to 35.9% in 2012 compared to
an  adjusted EBITDA margin of 37.1% on a pro forma and actual basis in 2011.

Net Loss

For the year ended December31, 2012, net loss was $304 million, compared to
$370 million on a pro forma basis, and $369 million on an actual basis for the
same period last year. Net loss per common share was $3.05 for the year ended
December31, 2012, compared to $3.39 on a pro forma and actual basis during
the same period last year.

Capital Expenditures

Property, plant and equipment expenditures for the year ended December31,
2012, totaled $1.745 billion, compared to $1.311 billion in the same period
last year. The increase related to higher residential and commercial customer
growth as well as higher set-top box placement in existing homes, investments
in plant to improve service reliability, and expenditures for fleet
replacement and real estate related to our organizational realignment.

In 2013, we expect capital expenditures to be approximately $1.7 billion,
excluding the impact of acquisitions. We anticipate 2013 capital expenditures
to be driven by the deployment of additional set-top boxes in new and existing
customer homes, growth in our commercial business, and further spend related
to plant reliability, back-office support and our organizational realignment.
The actual amount of our capital expenditures will depend on a number of
factors including the growth rates of both our residential and commercial
businesses, and the pace at which we progress to all-digital transmission.

Cash Flow

Net cash flows from operating activities were $1.876 billion, compared to
$1.742 billion on a pro forma basis and $1.737 billion on an actual basis in
2011.

Free cash flow for the year ended December31, 2012 was $144 million, compared
to $488 million on a pro forma basis and $483 million on an actual basis in
the same period last year. The decrease in free cash flow was primarily due to
an increase in capital expenditures partially offset by higher cash flow from
operating activities.

Liquidity

Total principal amount of debt was approximately $12.9 billion as of
December31, 2012. At the end of the year, we had $7 million of cash and cash
equivalents, $27 million of restricted cash and cash equivalents, and our
credit facilities provided us with approximately $960 million of available
liquidity.

Conference Call

Charter will host a conference call on Friday, February 22, 2013 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 83494589.

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 March 21, 2013. The conference ID code for the replay is 83494589.

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-K for
year ended December31, 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, (gain) 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 $49 million
and $41 million for the three months ended December31, 2012 and 2011,
respectively, and $191 million and $151 million for the year ended
December31, 2012 and 2011, respectively.

In addition to the actual results for the three and twelve months ended
December31, 2012 and 2011, we have provided pro forma results in this release
for the twelve months ended December31, 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 twelve months ended December31, 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 cash flow from operations 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 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 development and deployment of new products and technologies;
  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 December 31,    Year Ended December 31,
               2012         2011                  2012        2011
               Actual       Actual       %        Actual      Actual       %
                                         Change                            Change
REVENUES:
Video          $       $       2.8 %    $       $       —%
                 927       902               3,639      3,639
Internet       482          442          9.0 %    1,866       1,708        9.3 %
Telephone      186          217          (14.3)%  828         858          (3.5)%
Commercial     177          147          20.4 %   658         544          21.0 %
Advertising    96           81           18.5 %   334         292          14.4 %
sales
Other          45           45           —%       179         163          9.8 %
Total Revenues 1,913        1,834        4.3 %    7,504       7,204        4.2 %
COSTS AND
EXPENSES:
Programming    495          469          5.5 %    1,979       1,872        5.7 %
Franchises,
regulatory and 92           90           2.2 %    369         359          2.8 %
connectivity
Costs to
service        357          325          9.8 %    1,363       1,268        7.5 %
customers
Marketing      98           96           2.1 %    422         387          9.0 %
Other          173          168          3.0 %    677         643          5.3 %
Total
operating
costs and
expenses       1,215        1,148        5.8 %    4,810       4,529        6.2 %
(excluding
depreciation
and
amortization)
Adjusted       698          686          1.7 %    2,694       2,675        0.7 %
EBITDA
Adjusted       36.5 %       37.4 %                35.9 %      37.1 %
EBITDA margin
Depreciation
and            466          411                   1,713       1,592
amortization
Stock
compensation   13           10                    50          35
expense
Other
operating      13           -                     15          7
expenses, net
Income from    206          265                   916         1,041
operations
OTHER
EXPENSES:
Interest       (216)        (245)                 (907)       (963)
expense, net
Gain (loss) on
extinguishment 19           (19)                  (55)        (143)
of debt
Other expense, -            (1)                   (1)         (5)
net
               (197)        (265)                 (963)       (1,111)
Income (loss)
before income  9            -                     (47)        (70)
taxes
Income tax     (49)         (67)                  (257)       (299)
expense
Net loss       $       $                $       $     
                 (40)      (67)              (304)     (369)
LOSS PER
COMMON SHARE,  $       $                $       $     
BASIC AND       (0.41)      (0.63)               (3.05)     (3.39)
DILUTED:
Weighted
average common
shares         100,003,344  105,503,936           99,657,989  108,948,554
outstanding,
basic and
diluted



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 and marketing expense to include residential and
commercial labor.
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)
                                    Year Ended December 31,
                                    2012               2011
                                    Actual             Pro Forma (a)  % Change
REVENUES:
Video                               $      3,639  $        (0.4)%
                                                       3,652
Internet                            1,866              1,713          8.9 %
Telephone                           828                859            (3.6)%
Commercial                          658                545            20.7 %
Advertising sales                   334                292            14.4 %
Other                               179                163            9.8 %
Total Revenues                      7,504              7,224          3.9 %
COSTS AND EXPENSES:
Programming                         1,979              1,879          5.3 %
Franchises, regulatory and          369                361            2.2 %
connectivity
Costs to service customers          1,363              1,273          7.1 %
Marketing                           422                388            8.8 %
Other                               677                643            5.3 %
Total operating costs and expenses
excluding depreciation and          4,810              4,544          5.9 %
amortization)
Adjusted EBITDA                     2,694              2,680          0.5 %
Adjusted EBITDA margin              35.9 %             37.1 %
Depreciation and amortization       1,713              1,598
Stock compensation expense          50                 35
Other operating expenses, net       15                 7
Income from operations              916                1,040
OTHER EXPENSES:
Interest expense, net               (907)              (963)
Loss on extinguishment of debt      (55)               (143)
Other expense, net                  (1)                (5)
                                    (963)              (1,111)
Loss before income taxes            (47)               (71)
Income tax expense                  (257)              (299)
Net loss                            $             $      
                                    (304)             (370)
LOSS PER COMMON SHARE, BASIC AND    $             $      
DILUTED:                            (3.05)             (3.39)
Weighted average common shares      99,657,989         108,948,554
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.
Pro forma revenues, operating costs and expenses and net loss increased by $20
million, $15 million and $1 million, respectively, for the year ended December
31, 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 and marketing expense to include residential and
commercial labor.
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)
                                           December 31,
                                           2012              2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                  $       7  $       2
Restricted cash and cash equivalents       27                27
Accounts receivable, net                   234               268
Prepaid expenses and other current assets  65                60
Total current assets                       333               357
INVESTMENT IN CABLE PROPERTIES:
Property, plant and equipment, net         7,206             6,897
Franchises                                 5,287             5,288
Customer relationships, net                1,424             1,704
Goodwill                                   953               954
Total investment in cable properties, net  14,870            14,843
OTHER NONCURRENT ASSETS                    396               401
Total assets                               $  15,599       $  15,601
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued liabilities   $   1,224      $   1,157
Total current liabilities                  1,224             1,157
LONG-TERM DEBT                             12,808            12,856
DEFERRED INCOME TAXES                      1,122             847
OTHER LONG-TERM LIABILITIES                296               332
SHAREHOLDERS' EQUITY                       149               409
Total liabilities and shareholders' equity $  15,599       $  15,601





CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in millions)
                            Three Months Ended        Year Ended December 31,
                            December 31,
                            2012         2011         2012         2011
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss                    $         $         $  (304)   $  (369)
                            (40)         (67)
Adjustments to reconcile
net loss to net cash flows
from operating activities:
Depreciation and            466          411          1,713        1,592
amortization
Noncash interest expense    12           7            45           34
(Gain) loss on              (19)         19           55           143
extinguishment of debt
Deferred income taxes       47           65           250          290
Other, net                  20           7            45           33
Changes in operating
assets and liabilities,
net of effects from
acquisitions and
dispositions:
Accounts receivable         16           (19)         34           (24)
Prepaid expenses and other  4            5            (8)          1
assets
Accounts payable, accrued   (21)         (3)          46           37
liabilities and other
Net cash flows from         485          425          1,876        1,737
operating activities
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of property,      (449)        (327)        (1,745)      (1,311)
plant and equipment
Change in accrued expenses
related to capital          (3)          68           13           57
expenditures
Sales (purchases) of cable  -            -            19           (88)
systems, net
Other, net                  (6)          (4)          (24)         (24)
Net cash flows from         (458)        (263)        (1,737)      (1,366)
investing activities
CASH FLOWS FROM FINANCING
ACTIVITIES:
Borrowings of long-term     1,477        1,688        5,830        5,489
debt
Repayments of long-term     (2,347)      (1,427)      (5,901)      (5,072)
debt
Payments for debt issuance  (12)         (19)         (53)         (62)
costs
Purchase of treasury stock  (7)          (410)        (11)         (733)
Other, net                  1            3            1            5
Net cash flows from         (888)        (165)        (134)        (373)
financing activities
NET INCREASE (DECREASE) IN  (861)        (3)          5            (2)
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS,  868          5            2            4
beginning of period
CASH AND CASH EQUIVALENTS,  $       $       $       $     
end of period               7            2            7            2
CASH PAID FOR INTEREST      $   257   $   250   $   904   $   899





CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED SUMMARY OF OPERATING STATISTICS

(in thousands, except ARPU and penetration data)
                                     Approximate as of
                                     December 31,  September 30,  December 31,
                                     2012 (a)      2012 (a)       2011 (a)
Footprint
 Estimated Video Passings (b)       12,112        12,072         12,013
 Estimated Internet Passings (b)    11,810        11,759         11,692
 Estimated Telephone Passings (b)   11,139        11,018         10,891
Penetration Statistics
 Video Penetration of Estimated     34.3 %        34.8 %         35.9 %
Video Passings (c)
 Internet Penetration of Estimated  33.7 %        33.3 %         31.3 %
Internet Passings (c)
 Telephone Penetration of Estimated 18.1 %        18.0 %         17.2 %
Telephone Passings (c)
Residential
 Residential Customer Relationships 5,035         5,015          4,927
(d)
 Residential Non-Video Customers    1,046         990            783
 % Non-Video                        20.8 %        19.7 %         15.9 %
Customers
Video (e)                            3,989         4,025          4,144
Internet (f)                         3,785         3,731          3,492
Telephone (g)                        1,914         1,880          1,791
Residential PSUs (h)                 9,688         9,636          9,427
Residential PSU / Customer           1.92          1.92           1.91
Relationships (d)(h)
Quarterly Net Additions/(Losses) (i)
Video (e)                            (36)          (73)           (44)
Internet (f)                         54            69             68
Telephone (g)                        34            52             27
Residential PSUs (h)                 52            48             51
Single Play Penetration (j)          37.6 %        37.4 %         37.7 %
Double Play Penetration (k)          32.5 %        33.0 %         33.2 %
Triple Play Penetration (l)          29.9 %        29.6 %         29.1 %
Digital Penetration (m)              86.9 %        86.2 %         82.0 %
Revenue per Customer Relationship    $         $         $    
(n)                                  105.78       105.39         105.73
Commercial
Commercial Customer Relationships    325           321            298
(d)(o)
Customers
Video (o)                            169           172            170
Internet (f)                         193           186            163
Telephone (g)                        105           99             79
Commercial PSUs (h)                  467           457            412
Quarterly Net Additions/(Losses) (i)
Video (o)                            (3)           1              (3)
Internet (f)                         7             9              7
Telephone (g)                        6             8              5
Commercial PSUs (h)                  10            18             9



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 December 31, 2012, September
    30, 2012 and December 31, 2011, customers include approximately 18,400,
(a) 16,900 and 18,600 customers, respectively, whose accounts were over 60
    days past due in payment, approximately 2,600, 3,400 and 2,500 customers,
    respectively, whose accounts were over 90 days past due in payment and
    approximately 1,700, 1,600 and 1,400 customers, respectively, whose
    accounts were over 120 days past due in payment.
    "Passings" 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 and commercial customers as a
    percentage of estimated passings 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 video customers rather than
(e) commercial video customers. Further, residential video customers 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 video customers and reduced commercial video customers, with
    an overall net decrease to total video customers. Prior periods were
    reclassified to conform to the 2012 presentation.
(f) "Internet Customers" represent those customers who subscribe to our
    Internet service.
(g) "Telephone Customers" represent those customers who subscribe to our
    telephone service.
(h) "Primary Service Units" or "PSUs" represent the total of video, Internet
    and phone customers.
(i) "Quarterly Net Additions/(Losses)" represent the net gain or loss in the
    respective quarter for the service indicated.
    "Single Play Penetration" represents residential customers receiving only
(j) one of Charter service offerings, including video, Internet or phone, as a
    % of residential customer relationships.
    "Double Play Penetration" represents residential customers receiving only
(k) two 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 revenue divided by three divided by
    average 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.



CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES

(dollars in millions)
                                   Three Months Ended    Year Ended December
                                   December 31,          31,
                                   2012       2011       2012        2011
                                   Actual     Actual     Actual      Actual
Net loss                           $  (40)  $  (67)  $         $    
                                                         (304)        (369)
Plus: Interest expense, net       216        245        907         963
 Income tax expense      49         67         257         299
 Depreciation and        466        411        1,713       1,592
amortization
 Stock compensation      13         10         50          35
expense
 (Gain) loss on          (19)       19         55          143
extinguishment of debt
 Other, net              13         1          16          12
Adjusted EBITDA (b)                698        686        2,694       2,675
Less: Purchases of property,      (449)      (327)      (1,745)     (1,311)
plant and equipment
Adjusted EBITDA less capital       $  249   $  359   $        $    
expenditures                                             949         1,364
Net cash flows from operating      $  485   $  425   $  1,876  $    
activities                                                           1,737
Less: Purchases of property,      (449)      (327)      (1,745)     (1,311)
plant and equipment
 Change in accrued
expenses related to                (3)        68         13          57
capitalexpenditures
Free cash flow                     $   33  $  166   $        $    
                                                         144           483
                                                         Year Ended December
                                                         31,
                                                         2012        2011
                                                         Actual      Pro forma
                                                                     (a)
Net loss                                                 $         $    
                                                         (304)        (370)
Plus: Interest expense, net                             907         963
 Income tax expense                            257         299
 Depreciation and                              1,713       1,598
amortization
 Stock compensation                            50          35
expense
 Loss on extinguishment                        55          143
of debt
 Other, net                                    16          12
Adjusted EBITDA (b)                                      2,694       2,680
Less: Purchases of property,                            (1,745)     (1,311)
plant and equipment
Adjusted EBITDA less capital                             $        $    
expenditures                                             949         1,369
Net cash flows from operating                            $  1,876  $    
activities                                                           1,742
Less: Purchases of property,                            (1,745)     (1,311)
plant and equipment
 Change in accrued
expenses related to                                      13          57
capitalexpenditures
Free cash flow                                           $        $    
                                                         144           488



(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  Year Ended

                                  December 31,        December 31,
                                  2012      2011      2012         2011
Customer premise equipment (a)    $  162  $  115  $    803  $    585
Scalable infrastructure (b)       92        82        412          347
Line extensions (c)               56        39        167          117
Upgrade/Rebuild (d)               69        34        197          130
Support capital (e)               70        57        166          132
 Total capital expenditures (f)  $  449  $  327  $  1,745   $  1,311



    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 service
(c) 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 $88 million and $75 million of capital
(f) expenditures related to commercial services for the three months ended
    December31, 2012 and 2011, respectively, and $269 million and $195
    million for the year ended December31, 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, or Stefan Anninger, +1-203-905-7955
 
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