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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) Prior to January 4, 1996, the Systems were owned by certain subsidiaries
     of CVI.
 (2) 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 System operating expenses and not included in revenues 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 of
     this change on EBITDA margin 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.
 (3) Represents all system operating expenses and excludes management fees and
     corporate overhead.
 (4) Represents management fees and corporate overhead.
 (5) 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.
 (6) 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.
 (7) 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, respectively. 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.
 (8) 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.
 (9) 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.
(10) Reflects EBITDA for the applicable period divided by the average number
     of basic subscribers for the applicable period. For purposes of this
     calculation, EBITDA was annualized for the three-month period ended March
     31, 1998 and 1997.
(11) Reflects system cash flow for the applicable period 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.
(12) 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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