Charter Communications: Cash Crunch?

Charter Communications (CHTR) is running out of cash.

The highly leveraged cable company this morning said in its first-quarter earnings release that cash on hand, cash flows from operating activities and amounts available on its credit facilities will be “adequate” to fund cash needs through 2009, but “will not be sufficient” to fund projected cash needs in 2010, due in part to maturing of $2.2 billion in senior notes maturing in September 2010. The company, controlled by billionaire Paul Allen, did not provide any information on how it might address the issue.

At March 31, the company had $541 million in cash and short-term investments and $20.6 billion in long-term debt.

Meanwhile, Charter reported Q1 revenue of $1.564 billion, a bit ahead of the Street consensus of $1.55 billion. The company lost $358 million or 97 cents a share in the quarter, worse than the Street estimate of 75 cents. Charter noted that it added 125,700 phone customers in the quarter, along with 85,700 high-speed data customers and 102,800 digital video customers. Basic cable customers declined 11,900.