Charter Reports Third Quarter 1997 Results
HOUSTON, Nov. 14 /PRNewswire/ -- Charter Communications International, Inc. (OTC Bulletin Board: CHTD - news) Chairman and CEO, Stephen E. Raville today announced results for the third quarter of 1997. For the quarter ended September 30, 1997, Charter reported total revenues of $3,197,172 compared to $2,589,805 for the same quarter last year, a 23.5% increase. Revenues for the first nine months of 1997 were $9,267,582 compared to $5,304,232, an increase of 74.7% for the same period of 1996. Gross margins were $1,283,036 or 40.1% of revenues compared to $395,596 or 15.3% of revenues for the same quarter last year. This dramatic gross margin improvement from last year shows the progression which has continued during the year with gross margin improving from 16.5% in the first quarter to 26.5% in the June quarter to 40.1% for quarter ended September 30, 1997. The EBITDA improved from $1,371,241 for the third quarter of 1996 to $729,005 for the same period of 1997 an improvement of 46.8%. Net loss declined from $1,874,750 for the third quarter of 1996 to $1,405,008 for the September 1997 quarter an improvement of $469,741. Earnings per share improved from $0.12 in 1996 to $0.04 for the quarter ended September 30, 1997.
In reviewing third quarter activities, Raville stated that Charter announced $7 million in new equity and debt financing, and reached an agreement with a major creditor to reduce outstanding liabilities by approximately $3 million. Raville noted that Charter completed the consolidation of all of its products and services in the third quarter. During the same period, he said that the Company built and established a nationwide sales force focused on its high margin business that produces more profitable revenues. Raville said that Charter signed an important strategic alliance with DIGEX, enabling Charter to access DIGEX's nationwide network as its core Internet backbone, and giving DIGEX access to markets in Latin America. By installing ''least cost routing'' and signing agreements with major higher-tied carriers, Raville says Charter further improved its operating costs and quality of service. ''Charter has emerged from its development stage as a dynamic full service provider of Internet, telecommunications and telecommuting products and services. We have built a sales force of seasoned professionals, and strengthened each of our product platforms. In Latin America we continue to see significant increases in revenues, and we are proceeding with our strategic build-out in several nations. Charter is now in place and ready with network capacity, a strong sales force and domestic and international markets in need of our services,'' said Raville.
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