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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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<PAGE>
 
  The table below sets forth for the periods indicated certain data regarding
expenses expressed as a percentage of total revenues:
 

<TABLE>
<CAPTION>
                                                               THREE MONTHS
                                   YEAR ENDED DECEMBER 31,    ENDED MARCH 31,
                                   -------------------------  ----------------
                                    1995     1996     1997     1997     1998
                                   -------  -------  -------  -------  -------
   <S>                             <C>      <C>      <C>      <C>      <C>
   Revenues......................    100.0%   100.0%   100.0%   100.0%   100.0%
     System operating expenses...     47.7     47.8     45.4     46.4     43.2
     Non-system operating
      expenses...................      5.1      5.8      5.5      5.6      5.0
     Depreciation, amortization
      and loss (gain) on disposal
      of fixed assets............     40.4     38.3     37.9     37.5     32.9
      Operating income...........      6.8      8.1     11.2     10.5     18.9
     Interest expense............     27.3      --       --       --       --
     Income tax (benefit)
      expense....................     (8.2)     3.2      4.4      5.3      8.5
     Net (loss) income...........    (12.3)     4.9      6.8      5.2     10.4
</TABLE>

 
  The Systems have not had any material acquisitions during these periods and
thus the growth since 1995 represents internal growth resulting from
subscriber additions, rate increases and additional services purchased by
subscribers and advertisers.
 
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, as described above, 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.
 
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