Charter 2002 Annual Report Download - page 2

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
Financial Summary:
Statistics
(dollars in millions) Pro Forma Pro Forma
Year Ended Growth Over Year Ended Growth Over
Dec. 31, 2002 Prior Year Dec. 31, 2001(a) Prior Year
Revenues $ 4,566 15.0% $ 3,969 13.4%
Adjusted EBITDA $ 1,796 16.4% $ 1,543 6.1%
Total assets $ 22,384 $ 26,463
Long-term debt $ 18,671 $ 16,343
Capital expenditures $ 2,222 $ 3,001
Common shares outstanding(b) 294,620,408 294,536,830
Employees 18,600 17,900
Unaudited Reconciliation of Adjusted EBITDA to GAAP Measures
(dollars in millions) Year Ended Year Ended
Dec. 31, 2002 Dec. 31, 2001(a)
Loss from operations $ (4,320) $ (1,200)
Depreciation and amortization 1,437 2,730
Impairment of franchises 4,638 —
Option compensation expense 5 (5)
Special charge, net 36 18
Adjusted EBITDA $ 1,796 $ 1,543
Interest on cash pay obligations (1,111) (1,018)
Special charges, net (36) (18)
Changes in operating assets and liabilities 99 39
Net cash flows from operating activities $ 748 $ 546
The above schedule is presented in order to reconcile adjusted EBITDA, a non-GAAP (Generally Accepted Accounting Principles) measure, to the most
directly comparable GAAP measure in accordance with Section 401 (b) of the Sarbanes-Oxley Act. The year ended December 31, 2001 reconciliation
is on a pro forma basis to reflect the adjustments described below. The Company believes that adjusted EBITDA traditionally has provided
additional information useful in analyzing our underlying business results and allows a standardized peer company comparison, while minimizing
the differences from depreciation policies, financial leverage and tax strategies. However, adjusted EBITDA is a non-GAAP financial metric and should
be considered in addition to, not as a substitute for, net loss, earnings per share or net cash flows from operating activities. Adjusted EBITDA is
defined as income from operations before special charges, non-cash depreciation and amortization and option compensation expense.
(a) The pro forma data provided above reflect the restatements as reported in March 2003. The pro forma data also reflect the systems acquired
and sold as part of the AT&T Broadband transaction on June 30, 2001, the issuance of senior notes and senior discount notes in January and
May 2001, and the issuance of convertible senior notes in May 2001, as if such transactions had occurred on January 1, 2001. Pro forma rev-
enues, adjusted EBITDA, loss from operations and net cash flows from operating activities exceed actual results by $162 million, $48 million, $0
and $57 million, respectively.
(b) Fully diluted shares outstanding, assuming conversion of all exchangeable and convertible securities, were 769,098,211 and 718,921,211 as
of December 31, 2002 and 2001, respectively. See the Summary Organizational Chart in the “Organizational Structure” section for additional
information related to fully diluted shares outstanding.