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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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  This increase resulted from the increase in revenues for the three months
ended March 31, 1998 of $1.5 million, offset in part by the increase in system
operating expenses of $.2 million for the three months ended March 31, 1998.
 
  Income Tax (Benefit) Expense. Income tax (benefit) expense increased $.5
million, or 80.7%, to $1.2 million for the three months ended March 31, 1998
from $.7 million for the three months ended March 31, 1997. This increase was
due to the increase in operating income for the three months ended March 31,
1998.
 
  Net Income. For the reasons discussed above, net income increased $.8
million, or 126.6%, to $1.5 million for the three months ended March 31, 1998
from $.6 million for the three months ended March 31, 1997.
 
LIQUIDITY AND CAPITAL RESOURCES
 
  From January 4, 1996 until April 9, 1998, the Systems were owned by Time
Warner and their liquidity and capital resources needs were evaluated and met
based upon funding from Time Warner. The Systems' cash balances were generally
minimized with excess cash balances transferred to corporate cash management
accounts.
 
  The cable television business requires substantial capital for the
upgrading, expansion and maintenance of signal distribution equipment, as well
for home subscriber devices and wiring and for service vehicles. The Company
will continue to deploy fiber optic technology and to upgrade the Systems to a
minimum of 550 MHz and to 750 MHz where system characteristics warrant. The
deployment of fiber optic technology will allow the Company to complete future
upgrades to the Systems in a cost-effective manner. In addition, the Company
believes that the application of digital compression technology will likely
reduce the requirement in the future for upgrades to increase capacity beyond
750 MHz.
 
  The working capital requirements of a cable television business are
generally not significant since subscribers are billed for services monthly in
advance, while the majority of expenses incurred (except for payroll) are paid
generally 30 to 60 days after their incurrence.
 
  The Systems' net cash provided by operations was $23.6 million in 1997
compared to $23.1 million in 1996 and $7.5 million in 1995. The System's net
cash provided by operations was $6.0 million and $4.8 million for the three
months ended March 31, 1998 and 1997, respectively. The Systems' net cash used
in investing activities was $6.4 million, $8.2 million and $7.4 million in
1997, 1996 and 1995, respectively, and in 1996 Time Warner allocated $249.5
million of the purchase price paid (net of cash acquired) for CVI to the
Systems. The System's net cash used in investing activities was $.5 million
and $1.6 million for the three months ended March 31, 1998 and 1997,
respectively. The Systems' net cash used in financing activities which related
to distributions of excess cash to their parent companies, amounted to $16.4
million, $14.9 million and none, in 1997, 1996 and 1995, respectively, and in
1996 Time Warner allocated $250.0 million of the purchase price paid for CVI
to the Systems. The System's net cash used in financing activities was $4.0
million and $1.3 million for the three months ended March 31, 1998 and 1997,
respectively. The Systems' EBITDA increased to $25.1 million in 1997 from
$22.0 million in 1996 and $20.6 million in 1995. EBITDA as a percentage of
revenue increased to 49.2% in 1997 from 46.4% in 1996, primarily resulting
from a change in the method of recording franchise fees, and 47.2% in 1995.
Had the method of recording franchise fees been changed in 1995 and 1996, the
effect of this change would have resulted in EBITDA margins of 48.0% and 48.9%
for 1996 and 1995, respectively. The System's EBITDA was $7.3 million and $6.0
million for the quarter ended March 31, 1998 and 1997, respectively. As a
percentage of revenue, EBITDA was 51.9% and 48.0% for the quarter ended March
31, 1998 and 1997, respectively.
 
  Simultaneously with the Offering of the Old Notes: (i) the Company received
equity contributions of $95.1 million from the Morgan Stanley Entities and
$3.9 million from the Management Investors; (ii) Renaissance Media, as
borrower, and Renaissance Louisiana, Renaissance Tennessee and Renaissance
Capital, as guarantors, entered into the Senior Credit Facility, consisting of
$110.0 million in Term Loans and the $40.0 million
 
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