Topic 'Re: Ok, we get it already' in forum '' - dslreports.com http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21752789 en Sat, 11 Feb 2012 07:00:52 EDT Sat, 11 Feb 2012 07:00:52 EDT Re: Ok, we get it already http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21759286 said by quetwo:

Some companies serve more rural areas, and therefore have more debt.The predicate does not necessitate the conclusion.

Regardless of the composition of the customer base, a healthy enterprise can only sustain so much debt; if it cannot generate revenues sufficient to service this debt, the enterprise will fail.

Charter's debt load, no matter the reason it was incurred, is optimistically described as "crushing". As of their most recent 10Q filing, the company has an increasingly negative net worth, with intangible assets ("goodwill") nearly double their tangible assets.

As was the case with DSL vendors such as Northpoint and Rhythms nearly a decade ago, Charter has a financial situation that is untenable: it's operating income does not come close to covering the interest payments on the debt load. To survive without a reorganization, Charter would have to immediately more than double it's operating income--a financial target that is nowhere close to realistic.

The question confronting Charter customers is what will happen during a bankruptcy proceeding. The existing assets are income-producing; strip the debt load off the company and its core financials are sound. However, companies cannot simply abandon their debt obligations (and the current climate on Wall Street is likely to make this even more difficult). Charter may well be forced into liquidation proceedings, and the assets sold off at fire-sale prices.

That Charter's customer base is more rural than urban has no bearing on the company's exceedingly grim financial reality. Charter is over-leveraged, and the de-leveraging which needs to happen will not be a painless process--not for the company, and likely not for the customers as well.

Such is the significance of a company carrying 20% of the industry's debt while servicing 8% of the industry's customers.
--
Cordially,

Peter Nayland Kust
pkust@tekmedia.com
TEKMedia Communications, Inc.
www.tekmedia.com]]> http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21759286 Sat, 17 Jan 2009 15:58:59 EDT Re: Ok, we get it already http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21754514 said by BillRoland:

said by quetwo:

I know you are excited about the number, but every article doesn't have to tell us again and again that Charter's industry debt-load is 20% with only 8% of the customers. Some companies serve more rural areas, and therefore have more debt.
Nor does every Charter article need to contain "though the CEO seems to do ok" either.
Why not. if everyone else is going down with the ship what makes upper management immune?
Maybe some new fresh younger high up management with new ideas. Compensation linked to real improvement. ]]> http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21754514 Fri, 16 Jan 2009 18:34:13 EDT Re: Ok, we get it already http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21753972 --
Toolmaster of La Grange.]]> http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21753972 Fri, 16 Jan 2009 15:50:14 EDT Re: Ok, we get it already http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21753006 Nor does every Charter article need to contain "though the CEO seems to do ok" either.A quick look shows me I've used that phrase twice for Charter, including this report. The 20%/8% ratio metric has been used more frequently, but I find it pertinent and interesting.

I will, however, deliver beatings to the interns to do a better job in using less redundant metrics to highlight Charter's dysfunction.]]> http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21753006 Fri, 16 Jan 2009 13:05:57 EDT Re: Ok, we get it already http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21752980 said by quetwo:

I know you are excited about the number, but every article doesn't have to tell us again and again that Charter's industry debt-load is 20% with only 8% of the customers. Some companies serve more rural areas, and therefore have more debt.
Just because they server more rural customers does not give them the excuse to have a higher debt:customer ratio.
Having more rural customers isn't a bad thing... you 'could' charge higher rates, as there's less (or no) competition.]]> http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21752980 Fri, 16 Jan 2009 13:01:52 EDT Re: Ok, we get it already http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21752931 said by quetwo:

I know you are excited about the number, but every article doesn't have to tell us again and again that Charter's industry debt-load is 20% with only 8% of the customers. Some companies serve more rural areas, and therefore have more debt.
Nor does every Charter article need to contain "though the CEO seems to do ok" either.
--
"Don't steal. The government hates competition."]]> http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21752931 Fri, 16 Jan 2009 12:53:37 EDT Re: Ok, we get it already http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21752919 said by quetwo:

I know you are excited about the number, but every article doesn't have to tell us again and again that Charter's industry debt-load is 20% with only 8% of the customers.But doing so is helpful for people like me, who had no clue that Charter's industry debt-load is 20% with only 8% of the customers. :)]]> http://www.dslreports.com/forum/Re-Ok-we-get-it-already-21752919 Fri, 16 Jan 2009 12:51:54 EDT Ok, we get it already http://www.dslreports.com/forum/Ok-we-get-it-already-21752789 http://www.dslreports.com/forum/Ok-we-get-it-already-21752789 Fri, 16 Jan 2009 12:30:52 EDT