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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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RESULTS OF OPERATIONS
 
  YEAR ENDED DECEMBER 31, 1997 COMPARED WITH YEAR ENDED DECEMBER 31, 1996
 
  The Systems served 126,558 basic subscribers at December 31, 1997 compared
with 123,203 basic subscribers at December 31, 1996, an increase of 3,355
subscribers or 2.7%. Homes passed increased to 178,449 at December 31, 1997
from 175,522 at December 31, 1996, an increase of 2,927 homes or 1.7%. Premium
service units increased to 64,963 at December 31, 1997 from 64,716 at December
31, 1996.
 
  Revenues. Revenues increased $3.7 million, or 7.7%, to $51.0 million in 1997
from $47.3 million in 1996. Adjusting for the change in the method of
recording franchise fees (recorded in 1997 as an offset to expense and in 1996
as both revenues and expense) revenues increased $5.2 million or 11.1%.
 
  The increase in revenues in 1997 resulted primarily from increases in basic
revenue and other revenue. Basic revenue increased due to an increase in the
weighted average monthly subscription rate for basic service to $7.69 in 1997
from $6.38 in 1996 and an increase in the weighted average monthly
subscription rate for CPST to $17.33 in 1997 from $16.19 in 1996. In addition,
basic revenue increased due to the increase in subscribers in 1997. Other
revenue components including home shopping, pay-per-view and advertising
revenue increased, while additional outlet revenue decreased.
 
  System Operating Expenses. System operating expenses increased $.5 million,
or 2.3%, to $23.1 million in 1997 from $22.6 million in 1996. Adjusting for
the change in the method of recording franchise fees, system operating
expenses increased $2.0 million or 8.8%. The increase in system operating
expenses in 1997 resulted primarily from increases in salaries and programming
costs.
 
  Non-System Operating Expenses. Non-system operating expenses increased $.1
million, or 1.8%, to $2.8 million in 1997 from $2.7 million in 1996.
 
  Depreciation, Amortization and Loss (Gain) on Disposal of Fixed
Assets. Depreciation, amortization and loss (gain) on disposal of fixed assets
increased $1.2 million, or 6.6%, to $19.3 million in 1997 from $18.1 million
in 1996. This increase resulted primarily from $.6 million of losses on
miscellaneous asset disposals during the year.
 
  Operating Income. Operating income increased $1.9 million, or 49.2%, to $5.7
million in 1997 from $3.9 million in 1996.
 
  Income Tax (Benefit) Expense. Income tax (benefit) expense increased $.8
million, or 50.6%, to $2.3 million in 1997 from $1.5 million in 1996. This
increase is due to the increase in operating income in 1997.
 
  Net (Loss) Income. For the reasons discussed above, net (loss) income
increased $1.1 million, or 48.3%, to $3.5 million in 1997 from $2.4 million in
1996.
 
  YEAR ENDED DECEMBER 31, 1996 COMPARED WITH YEAR ENDED DECEMBER 31, 1995
 
  The Systems served 123,203 basic subscribers at December 31, 1996 compared
with 120,340 basic subscribers at December 31, 1995, an increase of 2,863
basic subscribers or 2.4%. Homes passed increased to 175,522 homes at December
31, 1996 compared to 145,148 at December 31, 1995. This increase resulted
primarily from a homes passed audit of the Systems during 1996, which added
approximately 27,000 homes to the Systems' database, and estimated real growth
in the number of homes passed by the Systems of approximately 1.7%. Premium
service units increased 4,254, or 7.0%, to 64,716 at December 31, 1996 from
60,462 at December 31, 1995.
 
  Revenues. Revenues increased $3.8 million, or 8.7%, to $47.3 million in 1996
from $43.5 million in 1995. Basic revenue increased due to increases in the
weighted average monthly subscription rate for CPST to $16.19 in 1996 from
$13.09 in 1995, offset in part by a decrease in the weighted average monthly
subscription rate for basic service to $6.38 in 1996 from $6.75 in 1995. In
addition, basic revenue increased due to the increase in the number of basic
subscribers in 1996. Premium and other revenue remained the same due to a
reduction in advertising and additional outlet revenue, offset by increases in
pay-per-view revenue and other revenue.
 
 
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