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S-4
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form S-4 on 01/25/2000
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<PAGE>   42
 
              NOTES TO UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
 
     NOTE A:  Pro forma operating results for Charter Holdings consist of the
following (dollars in thousands):
 

<TABLE>
<CAPTION>
                                                                     HISTORICAL
                                                              ------------------------
                                                               1/1/99        1/1/99
                                                               THROUGH       THROUGH
                                                               9/30/99       3/31/99
                                                               CHARTER       MARCUS        PRO FORMA
                                                              HOLDINGS     HOLDINGS(A)    ADJUSTMENTS      TOTAL
                                                              ---------    -----------    -----------    ---------
<S>                                                           <C>          <C>            <C>            <C>
Revenues....................................................  $ 845,182     $125,180       $     --      $ 970,362
                                                              ---------     --------       --------      ---------
Operating expenses:
  Operating, general and administrative.....................    436,057       68,984             --        505,041
  Depreciation and amortization.............................    441,391       51,688         11,979(b)     505,058
  Stock option compensation expense.........................     59,288           --             --         59,288
  Corporate expense charges.................................     18,309           --             --         18,309
  Management fees...........................................         --        4,381         (4,381)(c)         --
                                                              ---------     --------       --------      ---------
    Total operating expenses................................    955,045      125,053          7,598      1,087,696
                                                              ---------     --------       --------      ---------
Income (loss) from operations...............................   (109,863)         127         (7,598)      (117,334)
Interest expense............................................   (288,750)     (27,067)         5,167(d)    (310,650)
Interest income.............................................     18,326          104        (16,146)(e)      2,284
Other income (expense)......................................       (177)        (158)            --           (335)
                                                              ---------     --------       --------      ---------
Loss before extraordinary item..............................  $(380,464)    $(26,994)      $(18,577)     $(426,035)
                                                              =========     ========       ========      =========
</TABLE>

 
---------------
(a) Marcus Holdings represents the results of operations of Marcus Holdings
    through March 31, 1999, the date of its merger with Charter Holdings.
 
(b) As a result of Mr. Allen acquiring a controlling interest in Marcus Cable, a
    large portion of the purchase price was recorded as franchises ($2.5
    billion) that are amortized over 15 years. This resulted in additional
    amortization for the period from January 1, 1999 through March 31, 1999. The
    adjustment to depreciation and amortization expense consists of the
    following (dollars in millions):
 

<TABLE>
<CAPTION>
                                                                            WEIGHTED AVERAGE
                                                                              USEFUL LIFE       DEPRECIATION/
                                                              FAIR VALUE       (IN YEARS)       AMORTIZATION
                                                              ----------    ----------------    -------------
<S>                                                           <C>           <C>                 <C>
Franchises..................................................   $2,500.0            15              $ 40.8
Cable distribution systems..................................      720.0             8                21.2
Land, buildings and improvements............................       28.3            10                 0.7
Vehicles and equipment......................................       13.6             3                 1.0
                                                                                                   ------
  Total depreciation and amortization.......................                                         63.7
  Less -- historical depreciation and amortization of Marcus
    Cable...................................................                                        (51.7)
                                                                                                   ------
    Adjustment..............................................                                       $ 12.0
                                                                                                   ======
</TABLE>

 
(c) Reflects the elimination of management fees.
 
(d) As a result of the acquisition of Marcus Cable by Mr. Allen, the carrying
    value of outstanding debt was recorded at estimated fair value, resulting in
    a debt premium that is to be amortized as an offset to interest expense over
    the term of the debt. This resulted in a reduction of interest expense.
    Interest expense was further reduced by the effects of the extinguishment of
    substantially all of our long-term debt in March 1999, excluding borrowings
    of our previous credit facilities, and the refinancing of all previous
    credit facilities.
 
(e) Reflects the elimination of interest income on excess cash since we assumed
    substantially all such cash was used to acquire InterMedia.
 
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