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SEC Filings

S-4/A
RENAISSANCE MEDIA GROUP LLC filed this Form S-4/A on 09/04/1998
Entire Document
 
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SIX MONTHS ENDED JUNE 30, 1998
 
  The Company's Systems passed 180,561 homes, had 126,985 basic subscribers
and had 60,189 premium service units at June 30, 1998.
 
  Revenues. The Company had revenue of $12.9 million for the six months ended
June 30, 1998. This revenue represents the revenue of the Systems for the
period from April 9, 1998 to June 30, 1998. Revenue per basic subscriber per
month was $37.29.
 
  System Operating Expenses. System operating expenses were $6.0 million for
the six months ended June 30, 1998. These expenses represent the costs
incurred at the Systems' locations for the period from April 9, 1998 to June
30, 1998 and include among other costs, programming costs, employee costs,
repairs and maintenance costs, insurance costs and marketing costs.
 
  Non-System Operating Expenses. Non-system operating expenses were $.7
million for the six months ended June 30, 1998. These costs represent
corporate overhead costs and include approximately $.2 million of corporate
overhead incurred prior to the consummation of the Acquisition of the Systems
on April 9, 1998.
 
  Depreciation, Amortization and Loss (Gain) on Disposal of Fixed
Assets. Depreciation, amortization and loss (gain) on disposal of fixed assets
consists of depreciation and amortization primarily for the period from April
9, 1998 to June 30, 1998 as the Company had no material assets subject to
depreciation or amortization prior to April 9, 1998.
 
  Interest Expense. Interest expense was $4.3 million for the six months ended
June 30, 1998. This amount represents interest on the Notes and the Senior
Credit Facility for the period April 9, 1998 to June 30, 1998 and amortization
of the Company's interest rate cap agreement for the six month period ended
June 30, 1998.
 
  Income Tax Expense. Renaissance Louisiana and Renaissance Tennessee have
elected to be treated as corporations for United States federal income tax
purposes. The provisions for income tax expense for the six months ended June
30, 1998 represent Tennessee franchise tax expense. No income tax benefit for
the loss incurred through June 30, 1998 has been recorded due to the
uncertainty of the realization of such loss during the related carry forward
period.
 
  Net Loss. Net loss for the six months ended June 30, 1998 was $3.6 million,
of which approximately $3.4 million was incurred during the period April 9,
1998 through June 30, 1998.
 
SIX MONTHS ENDED JUNE 30, 1998 (PRO FORMA) COMPARED WITH SIX MONTHS ENDED JUNE
30, 1997 (PRO FORMA)
 
  The following discussion gives pro forma effect to the Transactions as if
they had occurred as of January 1, 1998 and 1997, and is provided for
informational purposes. It does not purport to be indicative of the results
which would have actually been obtained had the Transactions been completed on
the dates indicated or which may be expected to occur in the future.
 
  The Systems served 126,985 basic subscribers at June 30, 1998 compared with
124,880 basic subscribers at June 30, 1997, an increase of 2,105 subscribers
or 1.7%. Homes passed increased to 180,561 at June 30, 1998 from 176,985 at
June 30, 1997, an increase of 3,576 homes passed or 2.0%. Premium service
units decreased to 60,189 at June 30, 1998 from 64,800 at June 30, 1997.
 
  Revenues. Revenues increased $2.9 million, or 11.8%, to $28.1 million for
the six months ended June 30, 1998 from $25.2 million for the six months ended
June 30, 1997. There were no pro forma adjustments to revenues.
 
  The increase in revenues for the six months ended June 30, 1998 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 $7.88 in 1998 from $7.69 in 1997 and an increase in the
weighted average monthly subscription rate from CPST to $20.28 in 1998 from
$17.33 in 1997. In addition, basic revenue increased due to the increase in
subscribers in the six months ended June 30, 1998. Other revenue components
including home shopping, pay per view and advertising revenue increased, while
additional outlet revenue decreased.
 
 
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