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SEC Filings

424B1
RENAISSANCE MEDIA GROUP LLC filed this Form 424B1 on 09/10/1998
Entire Document
 
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<TABLE>
<CAPTION>
                               RENAISSANCE
                               MEDIA GROUP                        HOLDINGS
                                   LLC                            AND MEDIA
                              CONSOLIDATED  SYSTEMS COMBINED      COMBINED
                              ------------- ----------------- -----------------
                                  AS OF           AS OF             AS OF
                              JUNE 30, 1998 DECEMBER 31, 1997 DECEMBER 31, 1997
                              ------------- ----------------- -----------------
<S>                           <C>           <C>               <C>
BALANCE SHEET DATA:
Cash and cash equivalents...       3,287           1,371              903
Property, plant and
 equipment, net.............      64,375          36,944              --
Total assets................     319,945         288,914           17,003
Total debt..................     204,786             --               --
Net assets/members' equity..     104,879         224,546           15,036
</TABLE>

 
 (1) See "Pro Forma Financial Data."
 (2) Prior to January 4, 1996, the Systems were owned by certain subsidiaries
     of CVI and for the period January 4, 1996 through April 8, 1998, the
     Systems were owned by Time Warner.
 (3) Prior to 1997, franchise fees were included in both revenues and expenses.
     In 1997, the Systems began itemizing franchise fees on subscriber billing
     invoices and recorded such fees as an offset to system operating expenses.
     Had the itemization process occurred prior to 1997, the estimated amount
     of franchise fees that would have been reflected as an offset to the
     system operating expenses and not included in revenue in 1993, 1994, 1995
     and 1996 would have been approximately $1.0 million, $1.3 million, $1.4
     million and $1.5 million, respectively. The effect on EBITDA margin of
     this change would have resulted in EBITDA margins of 53.0%, 50.1%, 48.9%
     and 48.0% for the years 1993, 1994, 1995 and 1996, respectively.
 (4) Represents all system operating expenses and excludes management fees and
     corporate overhead.
 (5) Represents management fees and corporate overhead.
 (6) EBITDA represents income before interest, income taxes and depreciation,
     amortization and loss (gain) on disposal of fixed assets. EBITDA is not
     intended to represent cash flow from operations or net (loss) income as
     defined by generally accepted accounting principles and should not be
     considered as a measure of liquidity or an alternative to, or more
     meaningful than, operating income or operating cash flow as an indication
     of the Company's operating performance. Moreover, EBITDA is not a
     standardized measure and may be calculated in a number of ways.
     Accordingly, the EBITDA information provided may not be comparable to
     other similarly titled measures provided by other companies. EBITDA is
     included herein because management, certain investors, and industry
     analysts consider EBITDA to be a relevant and useful measure of
     comparative operating performance in the cable television industry, and
     when used in comparison to debt levels or the coverage of interest
     expense, as a measure of liquidity. In addition, certain covenants under
     the Indenture require a determination of EBITDA.
 (7) Represents EBITDA before non-system operating expenses. System cash flow
     should not be considered as a measure of liquidity or an alternative to,
     or more meaningful than, operating cash flow as defined by generally
     accepted accounting principles.
 (8) For purposes of this calculation, "earnings" is defined as earnings before
     fixed charges. Fixed charges consist of interest expense, amortization of
     deferred financing costs, income taxes and the portion of rent expense
     under operating leases representative of interest. For the years ended
     December 31, 1993, 1994 and 1995, the Systems' earnings before fixed
     charges were insufficient to cover their fixed charges by $8.7 million,
     $9.0 million and $9.1 million. For the years ended December 31, 1996 and
     1997, the Systems did not have indebtedness and a ratio of earnings to
     fixed charges would not be meaningful for such years. For the six months
     ended June 30, 1998, the Company's earnings before fixed changes were
     insufficient to cover its fixed charges by $3.5 million. The Company had
     no indebtedness at December 31, 1997. On a pro forma basis for the six
     months ended June 30, 1998 and 1997, the Company's earnings before fixed
     charges would have been insufficient to cover fixed charges by $9.5
     million and $11.2 million, respectively.
 (9) Based on a homes passed audit conducted in 1996 which showed an increase
     in homes passed of approximately 27,000 homes, the homes passed may be
     understated in 1993, 1994 and 1995 and basic penetration may be overstated
     for such periods.
(10) Reflects revenues for the applicable period divided by the average number
     of basic subscribers for the applicable period divided by the number of
     months in the applicable period.
(11) Reflects EBITDA for the applicable period divided by the average number of
     basic subscribers for the applicable period. For purposes of this
     calculation, EBITDA was annualized for all periods presented that are less
     than one year.
(12) Reflects system cash flow divided by the average number of basic
     subscribers for the applicable period. For purposes of this calculation,
     cash flow was annualized for all periods presented that are less than one
     year.
(13) Reflects capital expenditures for the applicable period divided by the
     average number of basic subscribers for the applicable period. For
     purposes of this calculation, capital expenditures were annualized for all
     periods presented that are less than one year.
 
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