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SEC Filings

S-4
RENAISSANCE MEDIA GROUP LLC filed this Form S-4 on 06/12/1998
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 (1) See "Pro Forma Financial Data."
 (2) Prior to January 4, 1996, the Systems were owned by certain subsidiaries
     of CVI.
 (3) Prior to 1997, franchise fees were included in both revenues and expenses.
     In 1997, the Systems began itemizing franchise fees on subscriber billing
     invoices and recorded such fees as an offset to system operating expenses.
     Had the itemization process occurred prior to 1997, the estimated amount
     of franchise fees that would have been reflected as an offset to the
     system operating expenses and not included in revenue in 1993, 1994, 1995
     and 1996 would have been approximately $1.0 million, $1.3 million, $1.4
     million and $1.5 million, respectively. The effect on EBITDA margin of
     this change would have resulted in EBITDA margins of 53.0%, 50.1%, 48.9%
     and 48.0% for the years 1993, 1994, 1995 and 1996, respectively.
 (4) Represents all system operating expenses and excludes management fees and
     corporate overhead.
 (5) Represents management fees and corporate overhead.
 (6) EBITDA represents income before interest, income taxes and depreciation,
     amortization and loss (gain) on disposal of fixed assets. EBITDA is not
     intended to represent cash flow from operations or net (loss) income as
     defined by generally accepted accounting principles and should not be
     considered as a measure of liquidity or an alternative to, or more
     meaningful than, operating income or operating cash flow as an indication
     of the Company's operating performance. Moreover, EBITDA is not a
     standardized measure and may be calculated in a number of ways.
     Accordingly, the EBITDA information provided may not be comparable to
     other similarly titled measures provided by other companies. EBITDA is
     included herein because management believes that certain investors find it
     a useful tool for measuring the Company's ability to service its
     indebtedness.
 (7) Represents EBITDA before non-system operating expenses. System cash flow
     should not be considered as a measure of liquidity or an alternative to,
     or more meaningful than, operating cash flow as defined by generally
     accepted accounting principles.
 (8) For purposes of this calculation, "earnings" is defined as earnings before
     fixed charges. Fixed charges consist of interest expense, amortization of
     deferred financing costs, income taxes and the portion of rent expense
     under operating leases representative of interest. For the years ended
     December 31, 1993, 1994 and 1995, the Systems' earnings before fixed
     charges were insufficient to cover their fixed charges by $8.7 million,
     $9.0 million and $9.1 million. For the years ended December 31, 1996 and
     1997, the Systems did not have indebtedness and a ratio of earnings to
     fixed charges would not be meaningful for such years. On a pro forma basis
     for the year ended December 31, 1997, and the three months ended March 31,
     1998, the Company's earnings before fixed charges would have been
     insufficient to cover fixed charges by $21.9 million and $4.4 million,
     respectively.
 (9) Based on a homes passed audit conducted in 1996 which showed an increase
     in homes passed of approximately 27,000 homes, the homes passed may be
     understated in 1993, 1994 and 1995 and basic penetration may be overstated
     for such periods.
(10) Reflects revenues for the applicable period divided by the average number
     of basic subscribers for the applicable period divided by the number of
     months in the applicable period.
(11) Reflects EBITDA for the applicable period divided by the average number of
     basic subscribers for the applicable period. For purposes of this
     calculation, EBTIDA was annualized for the three-month period ended March
     31, 1998 and 1997.
(12) Reflects system cash flow divided by the average number of basic
     subscribers for the applicable period. For purposes of this calculation,
     cash flow was annualized for the three-month period ended March 31, 1998
     and 1997.
(13) Reflects capital expenditures for the applicable period divided by the
     average number of basic subscribers for the applicable period. For
     purposes of this calculation, capital expenditures were annualized for the
     three-month period ended March 31, 1998 and 1997.
 
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