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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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  System Operating Expenses. System operating expenses increased $1.8 million,
or 8.8%, to $22.6 million in 1996 from $20.8 million in 1995. The 1996
expenses reflect increased payroll expenses, pay-per-view expenses, marketing
and other miscellaneous costs, offset in part by reductions in programming
costs resulting from the lower rates incurred by Time Warner.
 
  Non-System Operating Expenses. Non-system operating expenses increased $.5
million, or 24.2%, to $2.7 million in 1996 from $2.2 million in 1995 due to
the different amounts of corporate overhead and regional expenses incurred by
Time Warner in 1996 and CVI in 1995.
 
  Depreciation, Amortization and Loss (Gain) on Disposal of Fixed
Assets. Depreciation, amortization and loss (gain) on disposal of fixed assets
increased $.5 million, or 2.9%, to $18.1 million in 1996 from $17.6 million in
1995. This net increase resulted primarily from the net write-up of assets in
1996 under the purchase method of accounting following the acquisition of the
Systems when Time Warner acquired CVI.
 
  Operating Income. Operating income increased $.9 million, or 30.5%, to $3.9
million in 1996 from $3.0 million in 1995.
 
  Interest Expense. Interest expense was $11.9 million in 1995 which related
to debt recorded at the System level by CVI. The Systems recorded no interest
expense in 1996 because Time Warner met the Systems' financing needs through
non-interest bearing capital advances.
 
  Income Taxes (Benefit) Expense. Income tax (benefit) expense increased $5.1
million to an expense of $1.5 million in 1996 from a benefit of $3.6 million
in 1995. The increase in income tax (benefit) expense resulted from the
increase in operating income in 1996.
 
  Net (Loss) Income. For the reasons discussed above, net (loss) income
increased $7.7 million to net income of $2.4 million in 1996 from a net loss
of $5.4 million in 1995.
 
  THREE MONTHS ENDED MARCH 31, 1998 COMPARED WITH THREE MONTHS ENDED MARCH 31,
1997
 
   The Systems served 127,191 basic subscribers at March 31, 1998 compared
with 125,016 basic subscribers at March 31, 1997, an increase of 2,175
subscribers or 1.7%. Homes passed increased to 179,402 at March 31, 1998 from
176,617 at March 31, 1997, an increase of 2,785 homes or 1.6%. Premium service
units decreased to 61,053 at March 31, 1998 from 63,890 at March 31, 1997.
 
  Revenues. Revenues increased $1.5 million, or 12.3%, to $14.0 million for
the three months ended March 31, 1998 from $12.4 million for the three months
ended March 31, 1997.
 
  The increase in revenues for the three months ended March 31, 1998 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 $7.88 in 1998 from $7.69 in 1997 and an increase in the
weighted average monthly subscription rate for CPST to $20.28 in 1998 from
$17.33 in 1997. In addition, basic revenue increased due to the increase in
subscribers in 1998. 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 $.2 million,
or 4.0%, to $6.0 million for the three months ended March 31, 1998 from $5.8
million for the three months ended March 31, 1997. The increase in system
operating expenses for the three months ended March 31, 1998 resulted
primarily from increases in programming costs, offset in part by decreases in
repairs, maintenance, advertising, contract labor and bad debt expense.
 
  Operating Income. Operating income increased $1.3 million, or 103.4%, to
$2.6 million for the three months ended March 31, 1998 from $1.3 million for
the three months ended March 31, 1997.
 
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