Print Page  Close Window

SEC Filings

S-4/A
RENAISSANCE MEDIA GROUP LLC filed this Form S-4/A on 08/06/1998
Entire Document
 
<PAGE>
 
  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.
 
  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.
 
                                      41