Technology

Waters Corporation (NYSE: WAT) Reports Third Quarter 2024 Financial Results

Published

2 hours ago

November 1, 2024

Highlights

Sales of $740 million exceeded guidance, grew 4% as reported and 4% in constant currencyInstruments returned to growth; recurring revenue grew high single-digits in constant currencyAll reported regions returned to growth in the quarter; sales grew across all end markets, led by Pharma & IndustrialGAAP EPS of $2.71 and non-GAAP EPS of $2.93 significantly exceeded guidance, led by strong operational performance and better-than-expected market conditionsRaised full-year sales and EPS guidance, with 5% to 7% constant currency growth expected in the fourth quarter

Third Quarter 2024

MILFORD, Mass., Nov. 1, 2024 /PRNewswire/ — Waters Corporation (NYSE: WAT) today announced its financial results for the third quarter of 2024.

Sales for the third quarter of 2024 were $740 million, an increase of 4% as reported, compared to sales of $712 million for the third quarter of 2023. Currency translation had minimal impact on sales.

On a GAAP basis, diluted earnings per share (EPS) for the third quarter of 2024 was $2.71, compared to $2.27 for the third quarter of 2023. On a non-GAAP basis, EPS was $2.93, compared to $2.84 for the third quarter of 2023. This includes a headwind of approximately 2% due to unfavorable foreign exchange.

“We delivered exceptional third quarter results, fueled by new product adoption and improved customer spending trends,” said Dr. Udit Batra, President & CEO, Waters Corporation. “Instruments returned to growth sooner than expected, as liquid chromatography sales to pharma and industrial customers turned positive.”

Dr. Batra continued, “Looking ahead, our strong commercial execution, competitive product portfolio, and excellent operational performance give us confidence in the long-term outlook for Waters.”

Other Highlights

During the third quarter of 2024, sales into the pharmaceutical market increased 2% as reported and 3% in constant currency. Sales into the industrial market increased 9% as reported and 7% in constant currency. Sales into the academic and government market increased 2% as reported and were flat in constant currency.

During the quarter, instrument system sales increased 1% as reported and in constant currency. Recurring revenues, which represent the combination of service and precision chemistries, increased 6% as reported and 7% in constant currency.

Geographically, sales in Asia during the quarter increased 5% as reported and 6% in constant currency. Sales in the Americas increased 1% as reported and in constant currency. Sales in Europe increased 6% as reported and 4% in constant currency.

Unless otherwise noted, sales growth and decline percentages are presented on an as-reported basis. A description and reconciliation of GAAP to non-GAAP results appear in the tables below and can be found on the Company’s website www.waters.com in the Investor Relations section.

Full-Year and Fourth Quarter 2024 Financial Guidance

Full-Year 2024 Financial Guidance

The Company is raising its full-year 2024 sales guidance, and now expects organic constant currency sales growth to be in the range of -0.9% to -0.3%. Currency translation is expected to decrease full-year sales growth by 1.2%. M&A contribution from the Wyatt transaction covering the first four-and-a-half months of the year has added 1.3% to full-year reported sales. The resulting full-year 2024 reported sales growth is expected in the range of -0.8% to -0.2%.

The Company is also raising its full-year 2024 non-GAAP EPS guidance to now be in the range of $11.67 to $11.87, which includes an estimated headwind of approximately 3% due to unfavorable foreign exchange.

Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the full year.

Fourth Quarter 2024 Financial Guidance

The Company expects fourth quarter 2024 constant currency sales growth to be in the range of +5.0% to +7.0%. Currency translation is expected to decrease fourth quarter sales growth by 1.7%. The resulting fourth quarter 2024 reported sales growth is expected in the range of +3.3% to +5.3%.

The Company expects fourth quarter 2024 non-GAAP EPS to be in the range of $3.90 to $4.10, which includes an estimated headwind of approximately 3% due to unfavorable foreign exchange.

Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the fourth quarter.

Conference Call Details

Waters Corporation will webcast its third quarter 2024 financial results conference call today, November 1, 2024, at 8:00 a.m. Eastern Time. To listen to the call and see the accompanying slide presentation, please visit www.waters.com, select “Investor Relations” under the “About Waters” section, navigate to “Events & Presentations,” and click on the “Webcast.” A replay will be available through November 29, 2024, on the same website by webcast and also by phone at (888) 282-0031.

About Waters Corporation

Waters Corporation (NYSE:WAT), a global leader in analytical instruments and software, has pioneered chromatography, mass spectrometry, and thermal analysis innovations serving the life, materials, food, and environmental sciences for more than 65 years. With approximately 7,500 employees worldwide, Waters operates directly in 35 countries, including 15 manufacturing facilities, and with products available in more than 100 countries. For more information, visit www.waters.com.

Non-GAAP Financial Measures

This press release contains financial measures, such as organic constant currency growth rates, adjusted operating income, adjusted net income, adjusted earnings per diluted share and free cash flow, among others, which are considered “non-GAAP” financial measures under applicable U.S. Securities and Exchange Commission rules and regulations. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP). The Company’s definitions of these non-GAAP measures may differ from similarly titled measures used by others. The non-GAAP financial measures used in this press release adjust for specified items that can be highly variable or difficult to predict. The Company generally uses these non-GAAP financial measures to facilitate management’s financial and operational decision-making, including evaluation of the Company’s historical operating results, comparison to competitors’ operating results and determination of management incentive compensation. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting the Company’s business. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations, management strongly encourages investors to review the Company’s consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this release.

Cautionary Statement

This release contains “forward-looking” statements regarding future results and events. For this purpose, any statements that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words “feels”, “believes”, “anticipates”, “plans”, “expects”, “intends”, “suggests”, “appears”, “estimates”, “projects” and similar expressions, whether in the negative or affirmative, are intended to identify forward-looking statements. The Company’s actual future results may differ significantly from the results discussed in the forward- looking statements within this release for a variety of reasons, including and without limitation, risks related to, and expectations or ability to realize commercial success of the Wyatt transaction; the impact of this transaction on the Company’s business, anticipated progress on Waters’ research programs, development of new analytical instruments and associated software or consumables, manufacturing development and capabilities; the increased indebtedness of the Company as a result of the Wyatt transaction, the repayment of which could impact the Company’s future results, market prospects for its products and sales and earnings guidance; foreign currency exchange rate fluctuations potentially affecting translation of the Company’s future non-U.S. operating results, particularly when a foreign currency weakens against the U.S. dollar; current global economic, sovereign and political conditions and uncertainties, including the effect of new or proposed tariff or trade regulations as well as other new or changed domestic and foreign laws, regulations and policies; changes in inflation and interest rates; the impacts and costs of war, in particular as a result of the ongoing conflicts between Russia and Ukraine and in the Middle East, and the possibility of further escalation resulting in new geopolitical and regulatory instability; the Chinese government’s ongoing tightening of restrictions on procurement by government-funded customers; the Company’s ability to access capital, maintain liquidity and service the Company’s debt in volatile market conditions; risks related to the effects of any pandemic on our business, financial condition, results of operations and prospects; changes in timing and demand for the Company’s products among the Company’s customers and various market sectors, particularly as a result of fluctuations in their expenditures or ability to obtain funding; the ability to realize the expected benefits related to the Company’s various cost-saving initiatives, including workforce reductions and organizational restructurings; the introduction of competing products by other companies and loss of market share, as well as pressures on prices from competitors and/or customers; changes in the competitive landscape as a result of changes in ownership, mergers and continued consolidation among the Company’s competitors; regulatory, economic and competitive obstacles to new product introductions; lack of acceptance of new products and inability to grow organically through innovation; rapidly changing technology and product obsolescence; risks associated with previous or future acquisitions, strategic investments, joint ventures and divestitures, including risks associated with achieving the anticipated financial results and operational synergies; contingent purchase price payments and expansion of our business into new or developing markets; risks associated with unexpected disruptions in operations; failure to adequately protect the Company’s intellectual property, infringement of intellectual property rights of third parties and inability to obtain licenses on commercially reasonable terms; the Company’s ability to acquire adequate sources of supply and its reliance on outside contractors for certain components and modules, as well as disruptions to its supply chain; risks associated with third-party sales intermediaries and resellers; the impact and costs of changes in statutory or contractual tax rates in jurisdictions in which the Company operates as well as shifts in taxable income among jurisdictions with different effective tax rates, the outcome of ongoing and future tax examinations and changes in legislation affecting the Company’s effective tax rate; the Company’s ability to attract and retain qualified employees and management personnel; risks associated with cybersecurity and technology, including attempts by third parties to defeat the security measures of the Company and its third-party partners; increased regulatory burdens as the Company’s business evolves, especially with respect to the U.S. Food and Drug Administration and U.S. Environmental Protection Agency, among others, and in connection with government contracts; regulatory, environmental and logistical obstacles affecting the distribution of the Company’s products, completion of purchase order documentation and the ability of customers to obtain letters of credit or other financing alternatives; risks associated with litigation and other legal and regulatory proceedings; and the impact and costs incurred from changes in accounting principles and practices. Such factors and others are discussed more fully in the sections entitled “Forward-Looking Statements” and “Risk Factors” of the Company’s annual report on Form 10-K for the year ended December 31, 2023, as well as in the sections entitled “Special Note Regarding Forward-Looking Statements” and “Risk Factors” of the Company’s quarterly reports on Form 10-Q for the quarterly periods ended March 30, 2024 and June 29, 2024, as filed with the Securities and Exchange Commission (“SEC”), which discussions are incorporated by reference in this release, as updated by the Company’s future filings with the SEC. The forward-looking statements included in this release represent the Company’s estimates or views as of the date of this release and should not be relied upon as representing the Company’s estimates or views as of any date subsequent to the date of this release. Except as required by law, the Company does not assume any obligation to update any forward-looking statements.

Waters Corporation and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Nine Months Ended

September 28,
2024

September 30,
2023

September 28,
2024

September 30,
2023

Net sales

$ 740,305

$ 711,692

$ 2,085,673

$ 2,136,942

Costs and operating expenses:

Cost of sales

301,655

291,407

851,685

876,863

Selling and administrative expenses

169,097

186,748

516,880

555,657

Research and development expenses

45,336

41,995

136,113

130,559

Purchased intangibles amortization

11,759

12,116

35,337

20,410

Litigation provision

1,326

–

11,568

–

Operating income

211,132

179,426

534,090

553,453

Other (expense) income, net

(338)

328

1,619

1,364

Interest expense, net

(17,177)

(26,559)

(57,824)

(56,174)

Income from operations before income taxes

193,617

153,195

477,885

498,643

Provision for income taxes

32,114

18,643

71,449

72,614

Net income

$ 161,503

$ 134,552

$ 406,436

$ 426,029

Net income per basic common share

$ 2.72

$ 2.28

$ 6.85

$ 7.21

Weighted-average number of basic common shares

59,367

59,093

59,314

59,061

Net income per diluted common share

$ 2.71

$ 2.27

$ 6.83

$ 7.19

Weighted-average number of diluted common shares and equivalents

59,504

59,255

59,471

59,262

Waters Corporation and Subsidiaries

Reconciliation of GAAP to Adjusted Non-GAAP

Net Sales by Operating Segments, Products & Services, Geography and Markets

Three Months Ended September 28, 2024 and September 30, 2023

(In thousands)

Constant

Three Months Ended

Percent

Impact of

Currency

September 28, 2024

September 30, 2023

Change

Currency

Growth Rate (a)

NET SALES – OPERATING SEGMENTS

Waters

655,652

629,348

4 %

0 %

4 %

84,653

82,344

3 %

1 %

2 %

Total

740,305

711,692

4 %

0 %

4 %

NET SALES – PRODUCTS & SERVICES

Instruments

323,076

319,431

1 %

0 %

1 %

Service

278,294

263,611

6 %

0 %

6 %

Chemistry

138,935

128,650

8 %

0 %

8 %

Total Recurring

417,229

392,261

6 %

(1 %)

7 %

Total

740,305

711,692

4 %

0 %

4 %

NET SALES – GEOGRAPHY

Asia

251,329

238,228

5 %

(1 %)

6 %

Americas

279,136

275,479

1 %

0 %

1 %

Europe

209,840

197,985

6 %

2 %

4 %

Total

740,305

711,692

4 %

0 %

4 %

NET SALES – MARKETS

Pharmaceutical

430,138

421,535

2 %

(1 %)

3 %

Industrial

227,740

209,449

9 %

2 %

7 %

Academic & Government

82,427

80,708

2 %

0 %

Total

740,305

711,692

4 %

0 %

4 %

(a)

The Company believes that referring to comparable constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation’s net sales. Constant currency growth, a non-GAAP financial measure, measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period. See description of non-GAAP financial measures contained in this release.

Waters Corporation and Subsidiaries

Reconciliation of GAAP to Adjusted Non-GAAP

Net Sales by Operating Segments, Products & Services, Geography and Markets

Nine Months Ended September 28, 2024 and September 30, 2023

(In thousands)

Organic

Constant

Nine Months Ended

Percent

Impact of

Currency

September 28, 2024

September 30, 2023

Change

Currency

Acquisitions

Growth Rate (a)

NET SALES – OPERATING SEGMENTS

Waters

1,840,112

1,884,658

(2 %)

(1 %)

2 %

(3 %)

245,561

252,284

(3 %)

(1 %)

0 %

(2 %)

Total

2,085,673

2,136,942

(2 %)

(1 %)

2 %

(3 %)

NET SALES – PRODUCTS & SERVICES

Instruments

859,079

964,380

(11 %)

0 %

3 %

(14 %)

Service

812,367

774,478

5 %

(1 %)

1 %

5 %

Chemistry

414,227

398,084

4 %

(1 %)

0 %

5 %

Total Recurring

1,226,594

1,172,562

5 %

(1 %)

1 %

5 %

Total

2,085,673

2,136,942

(2 %)

(1 %)

2 %

(3 %)

NET SALES – GEOGRAPHY

Asia

696,319

745,932

(7 %)

(3 %)

1 %

(5 %)

Americas

794,775

804,827

(1 %)

0 %

3 %

(4 %)

Europe

594,579

586,183

1 %

2 %

(3 %)

Total

2,085,673

2,136,942

(2 %)

(1 %)

2 %

(3 %)

NET SALES – MARKETS

Pharmaceutical

1,220,092

1,233,177

(1 %)

2 %

(2 %)

Industrial

644,459

648,754

(1 %)

0 %

1 %

(2 %)

Academic & Government

221,122

255,011

(13 %)

1 %

2 %

(16 %)

Total

2,085,673

2,136,942

(2 %)

(1 %)

2 %

(3 %)

(a)

The Company believes that referring to comparable organic constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation’s net sales. Organic constant currency growth, a non-GAAP financial measure, measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period and excluding the impact of acquisitions made within twelve months of the acquisition close date. See description of non-GAAP financial measures contained in this release.

Waters Corporation and Subsidiaries

Reconciliation of GAAP to Adjusted Non-GAAP Financials

Three and Nine Months Ended September 28, 2024 and September 30, 2023

(In thousands, except per share data)

Income from

Operations

Selling &

Research &

Operating

Other

before

Provision for

Diluted

Administrative

Development

Operating

Income

(Expense)

Income

Net

Earnings

Expenses(a)

Expenses

Income

Percentage

Income

Taxes

Income

per Share

Three Months Ended September 28, 2024

GAAP

182,182

45,336

211,132

28.5 %

(338)

193,617

32,114

161,503

2.71

Adjustments:

Purchased intangibles amortization (b)

(11,759)

–

11,759

1.6 %

–

11,759

2,814

8,945

0.15

Litigation provision (c)

(1,326)

–

1,326

0.2 %

–

1,326

318

1,008

0.02

Restructuring costs and certain other items (d)

(1,194)

–

1,194

0.2 %

–

1,194

282

912

0.02

Retention bonus obligation (f)

(1,909)

(636)

2,545

0.3 %

–

2,545

611

1,934

0.03

Adjusted Non-GAAP

165,994

44,700

227,956

30.8 %

(338)

210,441

36,139

174,302

2.93

Three Months Ended September 30, 2023

GAAP

198,864

41,995

179,426

25.2 %

328

153,195

18,643

134,552

2.27

Adjustments:

Purchased intangibles amortization (b)

(12,116)

–

12,116

1.7 %

–

12,116

2,901

9,215

0.16

Restructuring costs and certain other items (d)

(24,057)

–

24,057

3.4 %

(651)

23,406

5,387

18,019

0.30

Acquisition related costs (e)

(1,263)

–

1,263

0.2 %

–

1,263

303

960

0.02

Retention bonus obligation (f)

(5,725)

(1,909)

7,634

1.1 %

–

7,634

1,832

5,802

0.10

Adjusted Non-GAAP

155,703

40,086

224,496

31.5 %

(323)

197,614

29,066

168,548

2.84

Nine Months Ended September 28, 2024

GAAP

563,785

136,113

534,090

25.6 %

1,619

477,885

71,449

406,436

6.83

Adjustments:

Purchased intangibles amortization (b)

(35,337)

–

35,337

1.7 %

–

35,337

8,456

26,881

0.45

Litigation provision and settlement (c)

(11,568)

–

11,568

0.6 %

–

11,568

2,776

8,792

0.15

Restructuring costs and certain other items (d)

(10,680)

–

10,680

0.5 %

–

10,680

2,617

8,063

0.14

Retention bonus obligation (f)

(11,451)

(3,817)

15,268

0.7 %

–

15,268

3,664

11,604

0.20

Adjusted Non-GAAP

494,749

132,296

606,943

29.1 %

1,619

550,738

88,962

461,776

7.76

Nine Months Ended September 30, 2023

GAAP

576,067

130,559

553,453

25.9 %

1,364

498,643

72,614

426,029

7.19

Adjustments:

Purchased intangibles amortization (b)

(20,410)

–

20,410

1.0 %

–

20,410

4,852

15,558

0.26

Restructuring costs and certain other items (d)

(28,881)

–

28,881

1.4 %

(651)

28,230

6,860

21,370

0.36

Acquisition related costs (e)

(13,298)

–

13,298

0.6 %

–

13,298

3,191

10,107

0.17

Retention bonus obligation (f)

(8,368)

(2,790)

11,158

0.5 %

–

11,158

2,678

8,480

0.14

Adjusted Non-GAAP

505,110

127,769

627,200

29.4 %

713

571,739

90,195

481,544

8.13

________________________________

(a)

Selling & administrative expenses include purchased intangibles amortization and litigation provisions and settlements.

(b)

The purchased intangibles amortization, a non-cash expense, was excluded to be consistent with how management evaluates the performance of its core business against historical operating results and the operating results of competitors over periods of time.

(c)

Litigation provisions and settlement gains were excluded as these items are isolated, unpredictable and not expected to recur regularly.

(d)

Restructuring costs and certain other items were excluded as the Company believes that the cost to consolidate operations, reduce overhead, and certain other income or expense items are not normal and do not represent future ongoing business expenses of a specific function or geographic location of the Company.

(e)

Acquisition related costs include all incremental expenses incurred, such as advisory, legal, accounting, tax, valuation, and other professional fees. The Company believes that these costs are not normal and do not represent future ongoing business expenses.

(f)

In connection with the Wyatt acquisition, the Company started to recognize a two-year retention bonus obligation that is contingent upon the employee’s providing future service and continued employment with Waters. The Company believes that these costs are not normal and do not represent future ongoing business expenses.

Waters Corporation and Subsidiaries

Preliminary Condensed Unclassified Consolidated Balance Sheets

(In thousands and unaudited)

September 28, 2024

December 31, 2023

Cash, cash equivalents and investments

$ 331,458

$ 395,974

Accounts receivable

669,534

702,168

Inventories

518,994

516,236

Property, plant and equipment, net

642,627

639,073

Intangible assets, net

591,883

629,187

Goodwill

1,306,593

1,305,446

Other assets

450,531

438,770

Total assets

$ 4,511,620

$ 4,626,854

Notes payable and debt

$ 1,826,248

$ 2,355,513

Other liabilities

1,082,273

1,121,000

Total liabilities

2,908,521

3,476,513

Total stockholders’ equity

1,603,099

1,150,341

Total liabilities and stockholders’ equity

$ 4,511,620

$ 4,626,854

Waters Corporation and Subsidiaries

Preliminary Condensed Consolidated Statements of Cash Flows

Three and Nine Months Ended September 28, 2024 and September 30, 2023

(In thousands and unaudited)

Three Months Ended

Nine Months Ended

September 28, 2024

September 30, 2023

September 28, 2024

September 30, 2023

Cash flows from operating activities:

Net income

$ 161,503

$ 134,552

$ 406,436

$ 426,029

Adjustments to reconcile net income to net

cash provided by operating activities:

Stock-based compensation

10,647

8,490

32,993

32,224

Depreciation and amortization

47,507

47,807

143,250

117,845

Change in operating assets and liabilities and other, net

(15,077)

(33,031)

(60,695)

(203,411)

Net cash provided by operating activities

204,580

157,818

521,984

372,687

Cash flows from investing activities:

Additions to property, plant, equipment

and software capitalization

(25,618)

(38,047)

(90,377)

(119,044)

Business acquisitions, net of cash acquired

–

(1,285,907)

(Investments in) proceeds from unaffiliated companies

(425)

651

(1,489)

651

Net change in investments

(8)

(5)

(44)

(21)

Net cash used in investing activities

(26,051)

(37,401)

(91,910)

(1,404,321)

Cash flows from financing activities:

Net change in debt

(180,000)

(125,181)

(530,000)

929,601

Proceeds from stock plans

3,237

9,464

25,073

18,092

Purchases of treasury shares

(141)

(692)

(13,475)

(70,433)

Other cash flow from financing activities, net

2,884

15,305

8,178

Net cash used in financing activities

(176,884)

(113,525)

(503,097)

885,438

Effect of exchange rate changes on cash and cash equivalents

2,442

(171)

8,461

2,081

Increase (decrease) in cash and cash equivalents

4,087

6,721

(64,562)

(144,115)

Cash and cash equivalents at beginning of period

326,427

329,693

395,076

480,529

Cash and cash equivalents at end of period

$ 330,514

$ 336,414

$ 330,514

$ 336,414

Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a)

Net cash provided by operating activities – GAAP

$ 204,580

$ 157,818

$ 521,984

$ 372,687

Adjustments:

Additions to property, plant, equipment

and software capitalization

(25,618)

(38,047)

(90,377)

(119,044)

Tax reform payments

–

95,645

72,101

Litigation settlements (received) paid, net

–

(375)

9,250

(1,125)

Major facility renovations

–

3,291

–

12,151

Payment of acquired Wyatt liabilities (b)

–

25,617

Payment of Wyatt retention bonus obligation (c)

–

19,770

–

Free Cash Flow – Adjusted Non-GAAP

$ 178,962

$ 122,687

$ 556,272

$ 362,387

(a)

The Company defines free cash flow as net cash flow from operations accounted for under GAAP less capital expenditures and software capitalizations plus or minus any unusual and non recurring items. Free cash flow is not a GAAP measurement and may not be comparable to free cash flow reported by other companies.

(b)

In connection with the Wyatt acquisition, the Company assumed certain obligations of Wyatt and paid those obligations immediately upon closing the transaction. The Company believes that the assumed obligations do not represent future ongoing business expenses.

(c)

During the nine months ended September 28, 2024, the Company made its first retention payment under the Wyatt retention bonus program. The Company believes that these payments are not normal and do not represent future ongoing business expenses.

Waters Corporation and Subsidiaries

Reconciliation of Projected GAAP to Adjusted Non-GAAP Financial Outlook

Twelve Months Ended

Three Months Ended

December 31, 2024

Range

Projected Sales

Organic constant currency sales growth rate (a)

(0.9 %)

–

(0.3 %)

5.0 %

–

7.0 %

Impact of:

Currency translation

(1.2 %)

–

(1.2 %)

(1.7 %)

–

(1.7 %)

Acquisitions

1.3 %

–

1.3 %

‒

–

‒

Sales growth rate as reported

(0.8 %)

–

(0.2 %)

3.3 %

–

5.3 %

Range

Projected Earnings Per Diluted Share

GAAP earnings per diluted share

$ 10.55

–

$ 10.75

$ 3.72

–

$ 3.92

Adjustments:

Purchased intangibles amortization

$ 0.60

–

$ 0.60

$ 0.15

–

$ 0.15

Litigation settlement

$ 0.15

–

$ 0.15

$ –

–

$ –

Restructuring costs and certain other items

$ 0.14

–

$ 0.14

$ –

–

$ –

Retention bonus obligation

$ 0.23

–

$ 0.23

$ 0.03

–

$ 0.03

Adjusted non-GAAP earnings per diluted share

$ 11.67

–

$ 11.87

$ 3.90

–

$ 4.10

(a) Organic constant currency growth rates are a non-GAAP financial measure that measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period and excluding the impact of acquisitions made within twelve months of the acquisition close date. These amounts are estimated at the current foreign currency exchange rates and based on the forecasted geographical sales in local currency, as well as an assessment of market conditions as of today, and may differ significantly from actual results.

These forward-looking adjustment estimates do not reflect future gains and charges that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance.

Contact: Caspar Tudor, Head of Investor Relations – (508) 482-2429

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SOURCE Waters Corporation

Technology

TTEC Special Committee Retains Legal and Financial Advisors

Published

56 mins ago

November 1, 2024

DENVER, Nov. 1, 2024 /PRNewswire/ — TTEC Holdings, Inc. (NASDAQ: TTEC) (“TTEC” or the “Company”), a leading global CX (customer experience) technology and services innovator for AI-enabled CX solutions, announced today that the previously established Special Committee of TTEC’s Board of Directors has retained Rothschild & Co as its independent financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP as its independent legal advisor, to assist with its review and evaluation of the previously announced unsolicited, preliminary, non-binding proposal letter, dated September 27, 2024, from TTEC founder, Chairman and Chief Executive Officer Kenneth Tuchman, to acquire the shares of the Company’s common stock not already owned by Mr. Tuchman and his controlled affiliates at a proposed purchase price of $6.85 per share and any alternatives.

The Special Committee, in consultation with its financial and legal advisors, is carefully evaluating and considering Mr. Tuchman’s proposal and has not yet determined whether it is appropriate to pursue this transaction or other alternatives. No action is required by TTEC stockholders at this time.

There can be no assurance that any definitive offer will be received, that any definitive agreement will be executed relating to the proposal or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

ABOUT TTEC

TTEC (pronounced T-TEC) Holdings, Inc. (NASDAQ: TTEC) is a leading global CX (customer experience) technology and services innovator for AI-enabled digital CX solutions. Serving iconic and disruptive brands, TTEC’s outcome-based solutions span the entire enterprise, touch every virtual interaction channel, and improve each step of the customer journey. Leveraging next-gen digital technology, the Company’s TTEC Digital business designs, builds, and operates omnichannel contact center technology, CRM, AI and analytics solutions. The Company’s TTEC Engage business delivers AI-enhanced customer engagement, customer acquisition and growth, tech support, back office, and fraud prevention services. Founded in 1982, the Company’s singular obsession with CX excellence has earned it leading client, customer, and employee satisfaction scores across the globe. The Company’s employees operate on six continents and bring technology and humanity together to deliver happy customers and differentiated business results. To learn more visit us at https://www.ttec.com.

Corporate Comms
Meredith Matthews
meredith.matthews@ttec.com

Investor Relations
Paul Miller
paul.miller@ttec.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/ttec-special-committee-retains-legal-and-financial-advisors-302293999.html

SOURCE TTEC Holdings

Technology

Charter Announces Third Quarter 2024 Results

Published

56 mins ago

November 1, 2024

STAMFORD, Conn., Nov. 1, 2024 /PRNewswire/ — Charter Communications, Inc. (along with its subsidiaries, the “Company” or “Charter”), which operates the Spectrum brand, today reported financial and operating results for the three and nine months ended September 30, 2024.

Third quarter total Internet customers decreased by 110,000. As of September 30, 2024, Charter served 30.3 million Internet customers.Third quarter total mobile lines increased by 545,000. As of September 30, 2024, Charter served 9.4 million mobile lines.As of September 30, 2024, Charter had a total of 31.7 million customer relationships, excluding mobile-only relationships.Third quarter revenue of $13.8 billion grew by 1.6% year-over-year, driven by residential mobile service revenue growth of 37.6% and residential Internet revenue growth of 1.7%.Net income attributable to Charter shareholders totaled $1.3 billion in the third quarter.Third quarter Adjusted EBITDA1 of $5.6 billion grew by 3.6% year-over-year.Third quarter capital expenditures totaled $2.6 billion and included $1.1 billion of line extensions.Third quarter net cash flows from operating activities totaled $3.9 billion, in-line with the prior year period.Third quarter free cash flow1 of $1.6 billion increased from $1.1 billion in the prior year, primarily driven by lower capital expenditures and higher Adjusted EBITDA.During the third quarter, Charter purchased 844 thousand shares of Charter Class A common stock and Charter Communications Holdings, LLC (“Charter Holdings”) common units for $262 million.

“We executed well during the third quarter, building on our operating strategy and foundational investments,” said Chris Winfrey, President and CEO of Charter. “Now and in the future, we have the best, fully deployed network uniquely capable of delivering seamless connectivity and entertainment, everywhere we operate. We have pricing and packaging that saves customers money with the best products, and a service capability and investment that has yet to be fully realized as a competitive advantage.”

Adjusted EBITDA and free cash flow are non-GAAP measures defined in the “Use of Adjusted EBITDA and Free Cash Flow Information” section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release.

Key Operating Results

Approximate as of

September 30,
2024 (c)

September 30,
2023 (c)

Y/Y Change

Footprint

Estimated Passings (d)

58,206

56,582

2.9 %

Customer Relationships (e)

Residential

29,465

30,012

(1.8) %

Small and Medium Business (“SMB”)

2,223

2,224

— %

Total Customer Relationships

31,688

32,236

(1.7) %

Residential

(150)

(153)

SMB

(4)

Total Customer Relationships Quarterly Net Additions

(149)

(157)

Total Customer Relationship Penetration of Estimated Passings (f)

54.4 %

57.0 %

(2.6) ppts

Monthly Residential Revenue per Residential Customer (g)

$ 121.47

$ 119.28

1.8 %

Monthly SMB Revenue per SMB Customer (h)

$ 164.38

$ 162.94

0.9 %

Residential Customer Relationships Penetration

One Product Penetration (i)

47.9 %

46.5 %

1.4 ppts

Two Product Penetration (i)

33.4 %

33.0 %

0.4 ppts

Three or More Product Penetration (i)

18.7 %

20.5 %

(1.8) ppts

% Residential Non-Video Customer Relationships

57.8 %

54.2 %

3.6 ppts

Internet

Residential

28,205

28,606

(1.4) %

SMB

2,052

2,043

0.4 %

Total Internet Customers

30,257

30,649

(1.3) %

Residential

(113)

(170)

SMB

(3)

Total Internet Quarterly Net Additions

(110)

(173)

Video

Residential

12,437

13,751

(9.6) %

SMB

578

628

(8.0) %

Total Video Customers

13,015

14,379

(9.5) %

Residential

(281)

(320)

SMB

(13)

(7)

(6)

Total Video Quarterly Net Additions

(294)

(327)

Voice

Residential

5,895

6,960

(15.3) %

SMB

1,263

1,296

(2.5) %

Total Voice Customers

7,158

8,256

(13.3) %

Residential

(275)

(288)

SMB

(13)

(15)

Total Voice Quarterly Net Additions

(288)

(286)

(2)

Mobile Lines (j)

Residential

9,057

6,987

29.6 %

SMB

297

233

27.4 %

Total Mobile Lines

9,354

7,220

29.6 %

Residential

526

577

(51)

SMB

Total Mobile Lines Quarterly Net Additions

545

594

(49)

Enterprise (k)

Enterprise Primary Service Units (“PSUs”)

315

298

5.7 %

Enterprise Quarterly Net Additions

(1)

In thousands, except per customer and penetration data. See footnotes to unaudited summary of operating statistics on page 7 of the addendum of this news release. The footnotes contain important disclosures regarding the definitions used for these operating statistics. All percentages are calculated using whole numbers. Minor differences may exist due to rounding.

In September, Spectrum launched a new brand platform, Life Unlimited, which emphasizes the power of Spectrum’s advanced network and cutting-edge connectivity products and services to create opportunities and remove barriers to help customers live their best lives. As part of its new brand platform, Spectrum launched a new and simplified pricing strategy that better utilizes its seamless connectivity and entertainment products to offer lower promotional and persistent bundled pricing to drive growth. Additionally, Spectrum announced new customer commitments focused on reliable connectivity, transparency, exceptional service and a focus on always improving.

Third quarter total Internet customers decreased by 110,000, driven by the end of the FCC’s Affordable Connectivity Program (“ACP”) in the second quarter, compared to an increase of 63,000 during the third quarter of 2023. Spectrum Internet® delivers the fastest Internet speeds1 in the nation. Spectrum is evolving its connectivity network to offer symmetrical and multi-gigabit Internet speeds across its entire footprint and has launched symmetrical Internet service in eight markets. Unlike competitors, Spectrum upgrades its network for all households and can do so at a much lower cost. Spectrum Advanced WiFi, a managed WiFi service that provides customers an optimized home network while providing greater control of connected devices with enhanced security and privacy is available to all Spectrum Internet customers.

Total video customers decreased by 294,000 in the third quarter of 2024, compared to a decline of 327,000 in the third quarter of 2023. As of September 30, 2024, Charter had 13.0 million total video customers. Spectrum TV Select video customers will soon receive up to $80 per month of programmers’ streaming application retail value at no extra cost, including the ad-supported versions of Max, Disney+, Peacock, Paramount+, ESPN+, AMC+, Discovery+, BET+, ViX, and Tennis Channel Plus. This programmer streaming application inclusion is part of Charter’s broader video evolution strategy to provide flexible packages with enhanced value, whether through full packages with seamless entertainment, smaller video packages, or a suite of a-la-carte programmer application options for broadband-only customers.

During the third quarter of 2024, total wireline voice customers declined by 288,000, compared to a decline of 286,000 in the third quarter of 2023. As of September 30, 2024, Charter had 7.2 million total wireline voice customers.

During the third quarter of 2024, Charter added 545,000 total mobile lines, compared to growth of 594,000 during the third quarter of 2023. Spectrum Mobile™ is available to all new and existing Spectrum Internet customers and offers the fastest overall speeds,2 with plans that include 5G access, do not require contracts and include taxes and fees in the price. Spectrum Mobile is central to Charter’s converged network strategy to provide consumers a differentiated connectivity experience with highly competitive, simple data plans and pricing.

Charter continues to work with federal, state and local governments to bring Spectrum Internet to unserved and underserved communities. During the third quarter of 2024, Charter activated 114,000 subsidized rural passings. Within Charter’s subsidized rural footprint, total customer relationships increased by 41,000 in the third quarter of 2024.

Based on Broadband Download Speed nationally in Opensignal USA: Fixed Broadband Experience Report – National View, May 2024. Based on Opensignal independent analysis of mean download speed. © 2024 Opensignal Limited.

Based on Charter’s analysis of Ookla® Speedtest Intelligence® data for overall mobile WiFi and Cellular performance for 1Q24 in Charter’s footprint.

Third Quarter Financial Results

(in millions)

Three Months Ended September 30,

2024

2023

% Change

Revenues:

Internet

$ 5,872

$ 5,776

1.7 %

Video

3,735

4,004

(6.7) %

Voice

360

379

(5.0) %

Mobile service

801

581

37.6 %

Residential revenue

10,768

10,740

0.3 %

Small and medium business

1,096

1,085

1.0 %

Enterprise

723

698

3.7 %

Commercial revenue

1,819

1,783

2.0 %

Advertising sales

452

384

18.1 %

Other

756

677

11.6 %

Total Revenues

$ 13,795

$ 13,584

1.6 %

Net income attributable to Charter shareholders

$ 1,280

$ 1,255

2.0 %

Net income attributable to Charter shareholders margin

9.3 %

9.2 %

Adjusted EBITDA1

$ 5,647

$ 5,449

3.6 %

Adjusted EBITDA margin

40.9 %

40.1 %

Capital Expenditures

$ 2,563

$ 2,961

(13.5) %

Net cash flows from operating activities

$ 3,905

$ 3,944

(1.0) %

Free cash flow1

$ 1,619

$ 1,097

47.6 %

All percentages are calculated using whole numbers. Minor differences may exist due to rounding.

Revenues

Third quarter revenue increased by 1.6% year-over-year to $13.8 billion, driven by growth in residential mobile service, residential Internet, advertising and other revenues, partly offset by lower residential video revenue. Year-over-year revenue growth was favorably impacted by $68 million of total customer credits in the prior year period related to the temporary loss of Disney programming in September 2023.

Residential revenue totaled $10.8 billion in the third quarter, an increase of 0.3% year-over-year. Year-over-year revenue growth was favorably impacted by $63 million of residential customer credits in the prior year period related to the temporary loss of Disney programming in September 2023.

Third quarter 2024 monthly residential revenue per residential customer totaled $121.47, and increased by 1.8% compared to the prior year period. The growth was driven by promotional rate step-ups, rate adjustments, the growth of Spectrum Mobile and $63 million of residential customer credits in the prior year period related to the temporary loss of Disney programming in September 2023, partly offset by a lower mix of video customer relationships and a higher mix of lower priced video packages within Charter’s video customer base.

Internet revenue grew by 1.7% year-over-year to $5.9 billion, driven by promotional rate step-ups and rate adjustments, partly offset by lower bundled revenue allocation and a decline in Internet customers during the last year.

Video revenue totaled $3.7 billion in the third quarter, a decrease of 6.7% compared to the prior year period, driven by a decline in video customers during the last year and a higher mix of lower priced video packages within Charter’s video customer base, partly offset by promotional rate step-ups, video rate adjustments that pass through programmer rate increases and the aforementioned $63 million of residential customer credits recorded in September 2023.

Voice revenue decreased by 5.0% year-over-year to $360 million, driven by a decline in wireline voice customers over the last twelve months, partly offset by voice rate adjustments.

Third quarter mobile service revenue totaled $801 million, an increase of 37.6% year-over-year, driven by mobile line growth and higher bundled revenue allocation.

Commercial revenue increased by 2.0% year-over-year to $1.8 billion, driven by enterprise and SMB revenue growth of 3.7% and 1.0% year-over-year, respectively. The year-over-year increase in third quarter 2024 SMB revenue was driven by higher monthly SMB revenue per SMB customer, primarily due to rate adjustments. Enterprise revenue excluding wholesale increased by 5.9% year-over-year, mostly reflecting PSU growth.

Third quarter advertising sales revenue of $452 million increased by 18.1% compared to the year-ago quarter, primarily driven by higher political revenue. Excluding political revenue in both periods, advertising sales revenue decreased by 6.3% year-over-year due to a more challenged advertising market, partly offset by higher advanced advertising revenue.

Other revenue totaled $756 million in the third quarter, an increase of 11.6% compared to the third quarter of 2023, primarily driven by higher mobile device sales.

Operating Costs and Expenses

Third quarter programming costs decreased by $259 million, or 10.0% as compared to the third quarter of 2023, reflecting fewer video customers and a higher mix of lower cost packages within Charter’s video customer base, partly offset by contractual programming rate increases and renewals and a $61 million benefit in the prior year period related to the temporary loss of Disney programming in September 2023.

Other costs of revenue increased by $219 million, or 15.8% year-over-year, primarily driven by higher mobile device sales and mobile service direct costs.

Costs to service customers decreased by $12 million, or 0.5% year-over-year, primarily due to lower labor costs.

Sales and marketing expenses increased by $40 million, or 4.4% year-over-year, given Spectrum’s continued focus on driving growth and the launch of its new brand platform, Life Unlimited.

Other expenses increased by $25 million, or 2.3% as compared to the third quarter of 2023.

Net Income Attributable to Charter Shareholders

Net income attributable to Charter shareholders totaled $1.3 billion in the third quarter of 2024, compared to $1.3 billion in the third quarter of 2023, with higher Adjusted EBITDA mostly offset by higher other expenses, net primarily due to non-cash changes in the value of financial instruments.

Net income per basic common share attributable to Charter shareholders totaled $8.99 in the third quarter of 2024 compared to $8.42 during the same period last year. The increase was primarily the result of the factors described above in addition to a 4.5% decrease in basic weighted average common shares outstanding versus the prior year period.

Adjusted EBITDA

Third quarter Adjusted EBITDA of $5.6 billion grew by 3.6% year-over-year, reflecting growth in revenue and operating expenses of 1.6% and 0.2%, respectively.

Capital Expenditures

Capital expenditures totaled $2.6 billion in the third quarter of 2024, a decrease of $398 million compared to the third quarter of 2023, driven by lower spend on CPE and upgrade/rebuild (primarily network evolution). Line extensions capital expenditures totaled $1.1 billion in the third quarter of 2024, driven by Charter’s subsidized rural construction initiative and continued network expansion across residential and commercial greenfield and market fill-in opportunities.

Charter now expects full year 2024 capital expenditures to total approximately $11.5 billion, a decrease from Charter’s previous expectation of approximately $12.0 billion. The decrease primarily reflects lower expected network evolution and line extension spend in 2024, partly offset by higher expected rebuild spend related to plant restoration following recent hurricanes. Charter now expects full year 2024 network evolution spend of approximately $1.1 billion versus prior expectations of approximately $1.6 billion, due to the timing of software certification and integration. Charter now expects full year 2024 line extensions spend of approximately $4.3 billion versus $4.5 billion previously, reflecting a temporary shift in labor resources for plant restoration efforts following hurricanes Helene and Milton. The actual amount of capital expenditures in 2024 will depend on a number of factors including, but not limited to, the pace of Charter’s network evolution and expansion initiatives, supply chain timing and growth rates in Charter’s residential and commercial businesses.

Cash Flow and Free Cash Flow

During the third quarter of 2024, net cash flows from operating activities totaled $3.9 billion, in-line with the prior year quarter, with higher Adjusted EBITDA offset by higher cash taxes.

Free cash flow in the third quarter of 2024 totaled $1.6 billion, an increase of $522 million compared to the third quarter of 2023. The year-over-year increase in free cash flow was primarily driven by lower capital expenditures and a more favorable change in accrued expenses related to capital expenditures.

Liquidity & Financing

As of September 30, 2024, total principal amount of debt was $95.1 billion and Charter’s credit facilities provided approximately $5.5 billion of additional liquidity in excess of Charter’s $721 million cash position.

Share Repurchases

During the three months ended September 30, 2024, Charter purchased 844 thousand shares of Charter Class A common stock and Charter Holdings common units for $262 million.

Webcast

Charter will host a webcast on Friday, November 1, 2024 at 8:30 a.m. Eastern Time (ET) related to the contents of this release.

The webcast can be accessed live via the Company’s investor relations website at ir.charter.com. Participants should go to the webcast link no later than 10 minutes prior to the start time to register. The webcast will be archived at ir.charter.com two hours after completion of the webcast.

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 Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2024, which will be posted on the “Results & SEC Filings” section of the Company’s investor relations website at ir.charter.com, when it is filed with the Securities and Exchange Commission (the “SEC”). A slide presentation to accompany the conference call and a trending schedule containing historical customer and financial data will also be available in the “Results & SEC Filings” section.

Use of Adjusted EBITDA and Free Cash Flow Information

The Company uses certain measures that are not defined by U.S. 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 income attributable to Charter shareholders and net 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 and free cash flow are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the Addendum to this release.

Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other income (expenses), net and other operating (income) expenses, net, 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. However, this measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and the cash cost of financing. These costs are evaluated through other financial measures.

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

Management and Charter’s board of directors use Adjusted EBITDA and free cash flow to assess 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 facilities and notes (all such documents have been previously filed with the SEC). For the purpose of calculating compliance with leverage covenants, the Company uses Adjusted EBITDA, as presented, excluding certain expenses paid by its operating subsidiaries to other Charter entities. The Company’s debt covenants refer to these expenses as management fees, which were $373 million and $345 million for the three months ended September 30, 2024 and 2023, respectively, and $1.1 billion and $1.1 billion for the nine months ended September 30, 2024 and 2023, respectively.

About Charter

Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company and cable operator with services available to more than 58 million homes and businesses in 41 states through its Spectrum brand. Over an advanced communications network, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet®, TV, Mobile and Voice.

For small and medium-sized companies, Spectrum Business® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise® provides highly customized, fiber-based solutions. Spectrum Reach® delivers tailored advertising and production for the modern media landscape. The Company also distributes award-winning news coverage and sports programming to its customers through Spectrum Networks. More information about Charter can be found at corporate.charter.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations as 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 SEC. Many of the forward-looking statements contained in this communication 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,” “predict,” “project,” “initiatives,” “seek,” “would,” “could,” “continue,” “ongoing,” “upside,” “increases,” “grow,” “focused on” and “potential,” among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this communication are set forth in our annual report on Form 10-K, and in other reports or documents that we file from time to time with the SEC, and include, but are not limited to:

our ability to sustain and grow revenues and cash flow from operations by offering Internet, video, voice, mobile, advertising and other services to residential and commercial customers, to adequately meet the customer experience demands in our service areas 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;the impact of competition from other market participants, including but not limited to incumbent telephone companies, direct broadcast satellite (“DBS”) operators, wireless broadband and telephone providers, digital subscriber line (“DSL”) providers, fiber to the home providers and providers of video content over broadband Internet connections;general business conditions, unemployment levels and the level of activity in the housing sector and economic uncertainty or downturn;our 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 and distribution requirements);our ability to develop and deploy new products and technologies including consumer services and service platforms;any events that disrupt our networks, information systems or properties and impair our operating activities or our reputation;the effects of governmental regulation on our business including subsidies to consumers, subsidies and incentives for competitors, costs, disruptions and possible limitations on operating flexibility related to, and our ability to comply with, regulatory conditions applicable to us;the ability to hire and retain key personnel;our ability to procure necessary services and equipment from our vendors in a timely manner and at reasonable costs including in connection with our network evolution and rural construction initiatives;the 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; andour 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 communication.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES

(dollars in millions)

Three Months Ended
September 30,

Nine Months Ended
September 30,

Last Twelve Months
Ended September 30,

2024

2023

2024

2023

2024

2023

Net income attributable to Charter shareholders

$ 1,280

$ 1,255

$ 3,617

$ 3,499

$ 4,675

$ 4,695

Plus: Net income attributable to noncontrolling interest

194

181

560

533

731

722

Interest expense, net

1,311

1,306

3,955

3,869

5,274

5,096

Income tax expense

406

369

1,279

1,187

1,685

1,606

Depreciation and amortization

2,145

2,130

6,505

6,508

8,693

8,700

Stock compensation expense

146

164

513

540

665

650

Other, net

165

380

185

659

334

Adjusted EBITDA (a)

$ 5,647

$ 5,449

$ 16,809

$ 16,321

$ 22,382

$ 21,803

Net cash flows from operating activities

$ 3,905

$ 3,944

$ 10,970

$ 10,578

$ 14,825

$ 14,365

Less: Purchases of property, plant and equipment

(2,563)

(2,961)

(8,207)

(8,259)

(11,063)

(11,179)

Change in accrued expenses related to capital
expenditures

277

114

510

110

572

379

Free cash flow (a)

$ 1,619

$ 1,097

$ 3,273

$ 2,429

$ 4,334

$ 3,565

The above schedule is presented in order to reconcile Adjusted EBITDA and free cash flow, non-GAAP measures, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act.

UNAUDITED ALTERNATIVE PRESENTATION OF ADJUSTED EBITDA

(dollars in millions)

Three Months Ended September 30,

Nine Months Ended September 30,

2024

2023

% Change

2024

2023

% Change

REVENUES:

Internet

$ 5,872

$ 5,776

1.7 %

$ 17,504

$ 17,227

1.6 %

Video

3,735

4,004

(6.7) %

11,510

12,446

(7.5) %

Voice

360

379

(5.0) %

1,084

1,117

(3.0) %

Mobile service

801

581

37.6 %

2,223

1,617

37.5 %

Residential revenue

10,768

10,740

0.3 %

32,321

32,407

(0.3) %

Small and medium business

1,096

1,085

1.0 %

3,285

3,270

0.4 %

Enterprise

723

698

3.7 %

2,152

2,070

4.0 %

Commercial revenue

1,819

1,783

2.0 %

5,437

5,340

1.8 %

Advertising sales

452

384

18.1 %

1,240

1,123

10.5 %

Other

756

677

11.6 %

2,161

2,026

6.6 %

Total Revenues

13,795

13,584

1.6 %

41,159

40,896

0.6 %

COSTS AND EXPENSES:

Programming

2,336

2,595

(10.0) %

7,378

8,134

(9.3) %

Other costs of revenue

1,604

1,385

15.8 %

4,600

4,080

12.8 %

Costs to service customers

2,130

2,142

(0.5) %

6,205

6,306

(1.6) %

Sales and marketing

952

912

4.4 %

2,784

2,753

1.1 %

Other expense (b)

1,126

1,101

2.3 %

3,383

3,302

2.4 %

Total operating costs and expenses (b)

8,148

8,135

0.2 %

24,350

24,575

(0.9) %

Adjusted EBITDA (a)

$ 5,647

$ 5,449

3.6 %

$ 16,809

$ 16,321

3.0 %

All percentages are calculated using whole numbers. Minor differences may exist due to rounding.

See footnotes on page 7.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in millions, except per share data)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2024

2023

2024

2023

REVENUES

$ 13,795

$ 13,584

$ 41,159

$ 40,896

COSTS AND EXPENSES:

Operating costs and expenses (exclusive of items shown separately below)

8,294

8,299

24,863

25,115

Depreciation and amortization

2,145

2,130

6,505

6,508

Other operating (income) expenses, net

(19)

10,460

10,458

31,430

31,604

Income from operations

3,335

3,126

9,729

9,292

OTHER INCOME (EXPENSES):

Interest expense, net

(1,311)

(1,306)

(3,955)

(3,869)

Other expenses, net

(144)

(15)

(318)

(204)

(1,455)

(1,321)

(4,273)

(4,073)

Income before income taxes

1,880

1,805

5,456

5,219

Income tax expense

(406)

(369)

(1,279)

(1,187)

Consolidated net income

1,474

1,436

4,177

4,032

Less: Net income attributable to noncontrolling interests

(194)

(181)

(560)

(533)

Net income attributable to Charter shareholders

$ 1,280

$ 1,255

$ 3,617

$ 3,499

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHARTER
SHAREHOLDERS:

Basic

$ 8.99

$ 8.42

$ 25.23

$ 23.30

Diluted

$ 8.82

$ 8.25

$ 24.86

$ 22.94

Weighted average common shares outstanding, basic

142,308,740

149,004,322

143,379,041

150,169,275

Weighted average common shares outstanding, diluted

145,059,470

152,019,159

145,489,370

152,495,273

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in millions)

September 30,

December 31,

2024

2023

ASSETS

(unaudited)

CURRENT ASSETS:

Cash and cash equivalents

$ 721

$ 709

Accounts receivable, net

3,067

2,965

Prepaid expenses and other current assets

704

458

Total current assets

4,492

4,132

INVESTMENT IN CABLE PROPERTIES:

Property, plant and equipment, net

41,846

39,520

Customer relationships, net

1,148

1,745

Franchises

67,455

67,396

Goodwill

29,668

Total investment in cable properties, net

140,117

138,329

OTHER NONCURRENT ASSETS

4,762

4,732

Total assets

$ 149,371

$ 147,193

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable, accrued and other current liabilities

$ 11,362

$ 11,214

Current portion of long-term debt

1,798

2,000

Total current liabilities

13,160

13,214

LONG-TERM DEBT

93,517

95,777

EQUIPMENT INSTALLMENT PLAN FINANCING FACILITY

998

—

DEFERRED INCOME TAXES

18,983

18,954

OTHER LONG-TERM LIABILITIES

4,659

4,530

SHAREHOLDERS’ EQUITY:

Controlling interest

14,099

11,086

Noncontrolling interests

3,955

3,632

Total shareholders’ equity

18,054

14,718

Total liabilities and shareholders’ equity

$ 149,371

$ 147,193

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in millions)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2024

2023

2024

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

Consolidated net income

$ 1,474

$ 1,436

$ 4,177

$ 4,032

Adjustments to reconcile consolidated net income to net cash flows from
operating activities:

Depreciation and amortization

2,145

2,130

6,505

6,508

Stock compensation expense

146

164

513

540

Noncash interest, net

Deferred income taxes

(46)

Other, net

159

264

212

Changes in operating assets and liabilities, net of effects from acquisitions
and dispositions:

Accounts receivable

(66)

(68)

(99)

(11)

Prepaid expenses and other assets

(272)

(173)

(537)

(534)

Accounts payable, accrued liabilities and other

249

404

(136)

Net cash flows from operating activities

3,905

3,944

10,970

10,578

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property, plant and equipment

(2,563)

(2,961)

(8,207)

(8,259)

Change in accrued expenses related to capital expenditures

277

114

510

110

Other, net

(153)

(47)

(378)

(334)

Net cash flows from investing activities

(2,439)

(2,894)

(8,075)

(8,483)

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings of long-term debt

2,645

3,543

17,388

14,591

Borrowings of equipment installment plan financing facility

124

—

1,000

—

Repayments of long-term debt

(4,115)

(3,650)

(19,899)

(14,385)

Payments for debt issuance costs

—

(27)

(18)

Purchase of treasury stock

(222)

(783)

(1,099)

(2,021)

Proceeds from exercise of stock options

Purchase of noncontrolling interest

(44)

(78)

(185)

(254)

Distributions to noncontrolling interest

(44)

(35)

(108)

(118)

Other, net

271

Net cash flows from financing activities

(1,358)

(957)

(2,854)

(2,169)

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND
RESTRICTED CASH

108

(74)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period

642

478

709

645

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period

$ 750

$ 571

$ 750

$ 571

CASH PAID FOR INTEREST

$ 1,214

$ 1,234

$ 3,812

$ 3,666

CASH PAID FOR TAXES

$ 473

$ 243

$ 1,120

$ 1,149

As of September 30, 2024, cash, cash equivalents and restricted cash includes $29 million of restricted cash included in prepaid expenses and other current assets in the consolidated balance sheets.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED SUMMARY OF OPERATING STATISTICS

(in thousands, except per customer and penetration data)

Approximate as of

September 30,
2024(c)

June 30,
2024(c)

December 31,
2023 (c)

September 30,
2023(c)

Footprint

Estimated Passings (d)

58,206

57,774

56,986

56,582

Customer Relationships (e)

Residential

29,465

29,615

29,904

30,012

SMB

2,223

2,222

2,224

Total Customer Relationships

31,688

31,837

32,126

32,236

Residential

(150)

(182)

(108)

SMB

(2)

Total Customer Relationships Quarterly Net Additions

(149)

(179)

(110)

Total Customer Relationship Penetration of Estimated Passings (f)

54.4 %

55.1 %

56.4 %

57.0 %

Monthly Residential Revenue per Residential Customer (g)

$ 121.47

$ 120.77

$ 119.41

$ 119.28

Monthly SMB Revenue per SMB Customer (h)

$ 164.38

$ 165.28

$ 162.38

$ 162.94

Residential Customer Relationships Penetration

One Product Penetration (i)

47.9 %

47.7 %

46.7 %

46.5 %

Two Product Penetration (i)

33.4 %

33.2 %

33.1 %

33.0 %

Three or More Product Penetration (i)

18.7 %

19.2 %

20.2 %

20.5 %

% Residential Non-Video Customer Relationships

57.8 %

57.1 %

54.8 %

54.2 %

Internet

Residential

28,205

28,318

28,544

28,606

SMB

2,052

2,049

2,044

2,043

Total Internet Customers

30,257

30,367

30,588

30,649

Residential

(113)

(154)

(62)

SMB

Total Internet Quarterly Net Additions

(110)

(149)

(61)

Video

Residential

12,437

12,718

13,503

13,751

SMB

578

591

619

628

Total Video Customers

13,015

13,309

14,122

14,379

Residential

(281)

(393)

(248)

(320)

SMB

(13)

(15)

(9)

(7)

Total Video Quarterly Net Additions

(294)

(408)

(257)

(327)

Voice

Residential

5,895

6,170

6,712

6,960

SMB

1,263

1,276

1,293

1,296

Total Voice Customers

7,158

7,446

8,005

8,256

Residential

(275)

(268)

(248)

(288)

SMB

(13)

(12)

(3)

Total Voice Quarterly Net Additions

(288)

(280)

(251)

(286)

Mobile Lines (j)

Residential

9,057

8,531

7,519

6,987

SMB

297

278

247

233

Total Mobile Lines

9,354

8,809

7,766

7,220

Residential

526

539

532

577

SMB

Total Mobile Lines Quarterly Net Additions

545

557

546

594

Enterprise (k)

Enterprise Primary Service Units (“PSUs”)

315

312

303

298

Enterprise Quarterly Net Additions

See footnotes on page 7.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

UNAUDITED CAPITAL EXPENDITURES

(dollars in millions)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2024

2023

2024

2023

Customer premise equipment (l)

$ 400

$ 659

$ 1,597

$ 1,772

Scalable infrastructure (m)

321

308

1,011

1,015

Upgrade/rebuild (n)

358

509

1,228

1,190

Support capital (o)

403

420

1,212

1,245

Capital expenditures, excluding line extensions

1,482

1,896

5,048

5,222

Subsidized rural construction line extensions

577

498

1,569

1,398

Other line extensions

504

567

1,590

1,639

Total line extensions (p)

1,081

1,065

3,159

3,037

Total capital expenditures

$ 2,563

$ 2,961

$ 8,207

$ 8,259

Capital expenditures included in total related to:

Commercial services

$ 346

$ 403

$ 1,103

$ 1,179

Subsidized rural construction initiative (q)

$ 581

$ 512

$ 1,575

$ 1,444

Mobile

$ 58

$ 76

$ 181

$ 235

See footnotes on page 7.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

FOOTNOTES

(a)

Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other (income) expenses, net and other operating (income) expenses, net 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 our businesses as well as other non-cash or special items, and is unaffected by our capital structure or investment activities. Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.

(b)

Other expense excludes stock compensation expense. Total operating costs and expenses excludes stock compensation expense, depreciation and amortization and other operating (income) expenses, net.

(c)

We calculate the aging of customer accounts based on the monthly billing cycle for each account in accordance with our collection policies. On that basis, at September 30, 2024, June 30, 2024, December 31, 2023 and September 30, 3023, customers included approximately 127,300, 79,400, 135,800 and 143,300 customers, respectively, whose accounts were over 60 days past due, approximately 11,900, 10,000, 54,700 and 53,400 customers, respectively, whose accounts were over 90 days past due and approximately 11,800, 13,500, 286,000 and 261,700 customers, respectively, whose accounts were over 120 days past due. The decrease in accounts past due is predominately due to revisions to customer account balances associated with the end of the Affordable Connectivity Program, including balance write-offs and conversion to payment plans. Bad debt expense associated with these past due accounts was predominantly reflected in our consolidated statements of operations in prior periods.

(d)

Passings represent our estimate of the number of units, such as single family homes, apartment and condominium units and SMB and enterprise sites passed by our cable distribution network in the areas where we offer the service indicated. These estimates are based upon the information available at this time and are updated for all periods presented when new information becomes available.

(e)

Customer relationships include the number of customers that receive one or more levels of service, encompassing Internet, video, voice and mobile services, without regard to which service(s) such customers receive. Customers who reside in residential multiple dwelling units (“MDUs”) and that are billed under bulk contracts are counted based on the number of billed units within each bulk MDU. Total customer relationships exclude enterprise and mobile-only customer relationships.

(f)

Penetration represents residential and SMB customers as a percentage of estimated passings. Penetration excludes mobile-only customers.

(g)

Monthly residential revenue per residential customer is calculated as total residential quarterly revenue divided by three divided by average residential customer relationships during the respective quarter and excludes mobile-only customer relationships.

(h)

Monthly SMB revenue per SMB customer is calculated as total SMB quarterly revenue divided by three divided by average SMB customer relationships during the respective quarter and excludes mobile-only customer relationships.

(i)

One product, two product and three or more product penetration represents the number of residential customers that subscribe to one product, two products or three or more products, respectively, as a percentage of residential customer relationships, excluding mobile-only customers.

(j)

Mobile lines include phones and tablets which require one of our standard rate plans (e.g., “Unlimited” or “By the Gig”). Mobile lines exclude wearables and other devices that do not require standard phone rate plans.

(k)

Enterprise PSUs represents the aggregate number of fiber service offerings counting each separate service offering at each customer location as an individual PSU.

(l)

Customer premise equipment includes equipment and devices located at the customer’s premise used to deliver our Internet, video and voice services (e.g., modems, routers and set-top boxes), as well as installation costs.

(m)

Scalable infrastructure includes costs, not related to customer premise equipment or our network, to secure growth of new customers or provide service enhancements (e.g., headend equipment).

(n)

Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including our network evolution initiative.

(o)

Support capital includes costs associated with the replacement or enhancement of non-network assets (e.g., back-office systems, non-network equipment, land and buildings, vehicles, tools and test equipment).

(p)

Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering).

(q)

The subsidized rural construction initiative subcategory includes projects for which we are receiving subsidies from federal, state and local governments, excluding customer premise equipment and installation.

View original content to download multimedia:https://www.prnewswire.com/news-releases/charter-announces-third-quarter-2024-results-302293610.html

SOURCE Charter Communications, Inc.

Technology

iPhone Unavailable Try Again Stuck? Here is the Fix!

Published

56 mins ago

November 1, 2024

NEW YORK, Nov. 1, 2024 /PRNewswire/ — The “iPhone unavailable, try again” message often appears on the “Security Lockout” screen after too many incorrect passcode entries, says Tenorshare. A first attempt at five incorrect entries results in a brief lockout, but repeated errors can leave the iPhone permanently stuck on this screen.

For users who can’t recall their passcode, the typical method to unlock their device involves a complete data erase—under limited conditions. However, Tenorshare 4uKey iPhone Unlocker offers an alternative, letting users bypass it swiftly and easily. Read on for more details.

Fix iPhone Unavailable Try Again Stuck With Ease

After repeated attempts at entering wrong passcode if your iDevice displays an “iPhone unavailable try again” message, use Tenorshare 4uKey iPhone Unlocker to remove it. Here are its key features:

Unlock Instantly Without Password – 4uKey can bypass the “iPhone Unavailable” screen in minutes, even without the passcode.No Technical Skills Needed – The tool is user-friendly, with simple steps that require no technical knowledge.Fast and Reliable – 4uKey is optimized for speed, with proven security.Supports the Latest iOS and iPhone Models – It works with iOS 18 and the newest iPhone models, ensuring compatibility.

Here’s how to use 4uKey to remove “iPhone unavailable try again in 15 minutes” screen from your iDevice:

Step 1: Execute Tenorshare 4uKey iPhone Unlocker on your computer. Plug in your iPhone to same PC. Hit “Start.”

Step 2: Save path and download latest firmware. Afterward, your iPhone will be unlocked.

Fix iPhone Unavailable Try Again Stuck Without Losing Data

When your iDevice is locked on, “iPhone unavailable try again after restore,” you can also erase it remotely via “Find My” feature in iCloud. However, you must have a backup before using this method:

Head to iCloud and sign in with your Apple ID. Open “Find My,” select your iPhone, and choose “Erase iPhone.” Tap “Erase again.” Follow setup instructions on your iPhone and restore its data.

Fix iPhone Unavailable Try Again Stuck Without Computer

When you’ve exhausted all 10 tries at entering right password, your iDevice won’t display “iPhone unavailable try again in 1 hour” message. But it will be stuck on “Security Lockout” screen for good.

But if your iPhone runs on iOS 15.2 or later, an “Erase iPhone” option will appear at its bottom. Use it to reset your iDevice and restore it later from a backup. You must have an iCloud/iTunes backup and know your Apple ID and password before using this method:

Tap “Erase iPhone” twice> Enter your Apple ID password to sign out> Click “Erase iPhone.” > Once Set up your iPhone and restore from a backup.

About Tenorshare

Tenorshare 4uKey offers simple solutions to fix “iPhone unavailable try again” screen without a passcode or Apple ID. With options to remove various locks and reset devices securely, it empowers users to quickly regain access, simplifying troubleshooting.

YouTube: https://www.youtube.com/@TenorshareOfficial
Facebook: https://www.facebook.com/TenorshareOfficial/

This release was issued through Send2Press® on behalf of the news source. For more information, visit Send2Press Newswire at https://www.send2press.com/.

View original content to download multimedia:https://www.prnewswire.com/news-releases/iphone-unavailable-try-again-stuck-here-is-the-fix-302293548.html

SOURCE Tenorshare Co. Ltd.