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SEC Filings

S-4/A
RENAISSANCE MEDIA GROUP LLC filed this Form S-4/A on 08/06/1998
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  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 Revolver; and (iii)
Renaissance Media acquired the Systems from Time Warner for $300.0 million in
cash and the issuance to Time Warner of a $9.5 million equity interest in
Holdings.
 
  The Company used the net proceeds from the Offering, together with the
Equity Contributions and borrowings under the Term Loans, to consummate the
Acquisition. The Company has approximately $210.0 million of indebtedness
outstanding and unused commitments under the Revolver of $40.0 million.
Subject to compliance with the terms of the Senior Credit Facility, borrowings
under the Revolver will be available for working capital purposes, capital
expenditures and acquisitions.
 
  The Company expects to make substantial investments in capital to: (i)
upgrade its cable plant; (ii) build line extensions; (iii) purchase new
equipment; and (iv) acquire the equipment necessary to implement its digital
and Internet and data transmission strategy. In 1998, the Company estimates it
will make capital expenditures of approximately $9.8 million. The Company
believes that the borrowings expected to be available under the Revolver and
anticipated cash flow from operations will be sufficient to upgrade the
Systems as currently contemplated and to satisfy the Company's working
capital, capital expenditure and debt service requirements. However, the
actual amount and timing of the Company's capital requirements may differ
materially from the Company's estimates as a result of, among other things,
the demand for the Company's services and regulatory, technological and
competitive developments (including additional market developments and new
opportunities) in the Company's industry. The Company also expects that it
will require additional financing if the Company's development plans or
projections change or prove to be inaccurate or the Company engages in any
acquisitions. Sources of additional financing may include commercial bank
borrowings, vendor financing or the private or public sale of equity or debt
securities. There can be no assurances that such financing will be available
on terms acceptable to the Company or at all.
   
  Borrowings under the Senior Credit Facility bear interest at floating rates,
although the Company is required to maintain interest rate protection
programs. Renaissance Media's obligations under the Senior Credit Facility is
secured by substantially all the assets of Renaissance Media. See "Description
of Certain Indebtedness--Senior Credit Facility."     
 
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