Charter 1999 Annual Report Download

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WWW
1999
SUMMARY ANNUAL REPORT

Table of contents

  • Page 1
    1999 SUMMARY ANNUAL REPORT WWW

  • Page 2
    Charter Communications, Inc. is a Wired World Company linking its customers to the Internet - and to a growing menu of information and entertainment services. The Wired World is Paul Allen's vision of a global broadband network that will interconnect every home, providing immediate availability to ...

  • Page 3
    ...20 Condensed Consolidated Balance Sheet 21 Condensed Consolidated Statement of Cash Flows Organizational Structure 22 Directors of Charter Communications, Inc. 23 Executive Officers of Charter Communications, Inc. 24 Glossary of Terms 25 Shareholder Information p. 10 1999 SUMMARY ANNUAL REPORT 1

  • Page 4
    ... to delivering superior customer service. Today we're building on that foundation to create a new and better kind of communications company. We believe cable's ability to transmit video, data, and voice at high speeds will enable it to serve as the primary means of delivering new services to the...

  • Page 5
    ... communications through the powerful technology of cable. The Wired World is the vision of Charter's chairman, investor, Paul G. Allen. But it isn't only for visionaries and technical wizards. It's for everyone who watches TV or uses a personal computer (PC). In 1998, Allen invested in Charter...

  • Page 6
    ... through the Internet on your TV screen. A phone call comes in, and the caller ID appears on your TV screen. You pause the program and answer the call through your remote control. You then pick up watching TV where you left off - even though the program is currently being broadcast live. You can...

  • Page 7
    ...fits include more channels of TV programming, streaming video clips from the Internet and video on demand, just to name a few. WHY BROADBAND? *Source: Vulcan Ventures, Inc. Charter is using its broadband network to deliver digital and interactive services. What does the customer see at the end...

  • Page 8
    ... and relationships of Paul Allen and his investment firm, Vulcan Ventures. For example, we work closely with Interval Research Corporation, Vulcan's research organization, to develop new products and services for our customers. Charter benefits from the business opportunities that are realized...

  • Page 9
    ... of broadband communications are endless - and they begin right here and now. As we upgrade our systems, we're rolling out advanced digital services, such as Charter Digital Cable and Charter Pipeline high-speed Internet service. At year-end 1999, we served 155,400 digital video customers and...

  • Page 10
    ... services such as digital video, high-speed Internet service, telephone service, other interactive services and additional services that have yet to be developed. We're upgrading our system to provide bandwidth that exceeds the industry standard. The upgrade represents a $3.1 billion investment...

  • Page 11
    ... digital video and high-speed Internet services. Charter Digital Cable offers customers more choices, more convenience, and more value. Customers will find new digital video channels for their special interests, more premium channels and more pay-per-view channels designed to let them view programs...

  • Page 12
    ... financial and operating performance. Charter's strong positive culture, its focus on customer service, and its empowered local managers have supported successful integration of the acquired systems. By bringing those systems up to Charter standards, we create new value 10 CHARTER COMMUNICATIONS

  • Page 13
    ... industry. Our ambitious program is ahead of schedule and within budget. The $3.1 billion investment makes possible the introduction of high-value digital video and high-speed Internet services today. It will make available the full potential of interactive broadband services in the future. Charter...

  • Page 14
    LETTER TO SHAREHOLDERS JERALD L. KENT PRESIDENT, CHIEF EXECUTIVE OFFICER AND DIRECTOR 1999 WAS A TERRIFIC YEAR FOR CHARTER COMMUNICATIONS. We achieved phenomenal growth, becoming the nation's fourth-largest cable television operator. While our acquisition activity and initial public offering ...

  • Page 15
    ... 65,600 high-speed Internet customers, again well above consensus analyst expectations. OBJECTIVES FOR 2000 AND BEYOND As we look ahead to this year and the next, we plan to increase shareholder value by accomplishing these objectives: • the rebuild of our cable systems on schedule and within...

  • Page 16
    ...000 new digital video customers and 2,500 new high-speed Internet service customers a week in 2000. We also plan to offer our Internet portal service in St. Louis and other select markets in 2000, and to move ahead with trials of video on demand and telephone service. 14 CHARTER COMMUNICATIONS 11...

  • Page 17
    ... has grown significantly during the past year, but our values haven't changed. I am confident that Charter's style of management - which emphasizes, encourages, and rewards decision making at the local level - will ease the integration of our acquisitions. I believe 1999 SUMMARY ANNUAL REPORT 15

  • Page 18
    .... With your support, we're building the best broadband network in the United States. My number one priority is to reward investor confidence with outstanding returns on investment. Sincerely, Jerald L. Kent President, Chief Executive Officer and Director April 18, 2000 16 CHARTER COMMUNICATIONS

  • Page 19
    ... all of Charter's acquisitions announced during 1999 as if all of such acquisitions had occurred on January 1, 1999. Pro Forma Statement of Operations (Unaudited) (dollars in millions, except per share data) YEAR ENDED DECEMBER 31, 1999 REVENUES Basic Premium Pay-per-view Digital video Advertising...

  • Page 20
    ... in regard to the financial statements. Moreover, the independent public accountants have full and free access to meet with the Audit Committee, with or without management present, to discuss accounting, control, audit and financial reporting matters. To Charter Communications, Inc.: We have...

  • Page 21
    ... 31, 1999 Note: These condensed consolidated financial statements should be read in conjunction with the complete audited consolidated financial statements appended to the Charter Communications, Inc. proxy statement for the 2000 annual meeting of stockholders. 1999 SUMMARY ANNUAL REPORT 19

  • Page 22
    Charter Communications, Inc. Condensed Consolidated Balance Sheet (dollars in millions) AS OF DECEMBER 31, 1999 ASSETS CURRENT ASSETS: Cash and cash equivalents Accounts receivable, net of allowance for doubtful accounts of $11.5 Prepaid expenses and other Total current assets INVESTMENT IN CABLE ...

  • Page 23
    ... Communications Holding Company, LLC (Charter Holdco). The remaining 60 percent economic interest in Charter Holdco is held primarily by Paul G. Allen, through Vulcan Cable III Inc. and Charter Investment, Inc., neither of which are publicly traded. The Class A common stock of Charter Communications...

  • Page 24
    ...tax manager. Mr. Kent, a certified public accountant, received a bachelor's degree and M.B.A. from Washington University (St. Louis). MARC B. NATHANSON, 54 Ms. Peretsman has been a managing director and executive vice president of Allen & Company, an investment banking firm (unrelated to Paul Allen...

  • Page 25
    ... his M.B.A. from Saint Louis University. He is a certified public accountant. From 1983 until joining Charter in 1995, Mr. Silva served in various management positions at U.S. Computer Services, Inc. He is a member of the board of directors of High Speed Access Corp. 1999 SUMMARY ANNUAL REPORT 23

  • Page 26
    ... wire used for broadband cable communications systems, having high bandwidth capacity, noise immunity, and physical durability. DIGITAL p. 4 An external or internal terminal device that, when connected with a personal computer and the cable system, transports data to customers at a greater speed...

  • Page 27
    ..., Missouri CORPORATE HEADQUARTERS Charter Communications, Inc. 12444 Powerscourt Drive, Suite 100 St. Louis, Missouri 63131-3660 314.965.0555 INVESTOR INFORMATION Communications related to stock transfers, lost certificates or account changes should be directed to ChaseMellon Shareholder Services...

  • Page 28
    S TAY T U N E D . 12444 POWERSCOURT DRIVE SUITE 100 ST. LOUIS, MISSOURI 63131-3660