News

Charter Tweaks 2000, 2001 Statements

11/19/2002 9:17 AM Eastern

Charter Communications Inc. said Tuesday that it will revise its financial statements for the years 2000 and 2001 to reflect an additional $1.4 billion in franchise costs and $1.2 billion of deferred income-tax liability that should have been recorded regarding the acquisition of 18 cable systems between 1999 and 2000.

The result will be an increase in Charter's net loss for the three months ended Sept. 30 by $8.9 million, or 3 cents per share, and an increase in the net loss during the nine-month period ended Sept. 30 by $25 million (9 cents).

Charter said none of the adjustments will impact its cash position, nor affect previously reported revenue, operating cash flow or past or future cash-tax obligations.

The St. Louis-based MSO also said the adjustments require that it restate the periods before 2002 to include $178.8 million in amortization costs as if the additional franchise costs had been recorded at the time of the acquisitions.

Charter will record the amount not covered by its 2000 and 2001 restatements as a $105.1 million minority interest and $68.9 million as additional paid in capital.

Charter had released third-quarter results Nov. 5, but it did not include a balance sheet, stating that it needed time to "complete financial statements to reflect deferred income-tax liabilities arising out of certain prior acquisitions."

Charter said in a prepared statement Tuesday that it expected to file these adjustments with the Securities and Exchange Commission as part of its 10-Q quarterly financial filing later Tuesday. However, the document had not been filed as of 5 p.m.

Investors apparently weren't worried about the restatement, driving Charter stock up 1 cent each to $1.19 per share in 4 p.m. trading Tuesday.