Print Page  Close Window

SEC Filings

10-Q
RENAISSANCE MEDIA GROUP LLC filed this Form 10-Q on 10/20/1998
Entire Document
 
<PAGE>
 
                          RENAISSANCE MEDIA GROUP LLC
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 JUNE 30, 1998
              (ALL DOLLAR AMOUNTS IN 000'S EXCEPT WHERE INDICATED)
                                  (Unaudited)


the financial statements and the reported amount of revenues and expenses during
the reporting period.  Actual results could differ from those estimates.

4.  ACQUISITION

     On April 9, 1998, the Company acquired six cable television systems from
TWI Cable.  The systems are clustered in southern Louisiana, western Mississippi
and western Tennessee.  This acquisition represented the first acquisition by
the Company.  The purchase price for the systems was $309,500 which was paid as
follows:  TWI Cable received $300,000 in cash inclusive of an escrow deposit of
$15,000 and a $9,500 (9,500 units) equity interest in Renaissance Media
Holdings, LLC, the parent company of Group.  In addition to the purchase price,
the Company incurred approximately $1,300 in transaction costs, exclusive of
financing costs.

     The 9,500 units issued to TWI Cable as equity represent an 8.8% interest in
Holdings, determined by dividing the TWI Cable interests of 9,500 units by the
total units outstanding of Holdings of 108,500.  TWI Cable's interest in
Holdings is as a minority member with rights to appoint one board
representative, and TWI Cable has economic interests in Holdings equal to its
ownership percentage on the same basis as the other members of Holdings.  In
accordance with the Limited Liability Company Agreement of Holdings, TWI Cable
is not required to make any further equity contribution to Holdings and its
ability to sell or otherwise dispose of its interests in Holdings is limited.
Holdings was formed to consummate the Acquisition and had no assets prior to
this transaction.

     The Acquisition was accounted for using the purchase method of accounting
and, accordingly, results of operations are reported from the date of the
Acquisition (April 9, 1998).  The excess of the purchase price over the
estimated fair value of the tangible assets acquired ($244,300) has been
allocated to Cable television franchises and goodwill in the amount of $235,700
and $8,600, respectively. The appraisal of the acquired assets is not yet
complete, thus the allocation of the purchase price is subject to change,
although management currently does not believe that any material adjustment to
such allocation is expected.

                                       8