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S-4
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form S-4 on 04/30/1999
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<PAGE>   39
 
                        NOTES TO THE UNAUDITED PRO FORMA
 
                            STATEMENT OF OPERATIONS
 
     NOTE A:  Operating results for Charter, pro forma for the Sonic
Acquisition, consist of the following (dollars in thousands):

<TABLE>
<CAPTION>
                                                                             12/24/98                               1/1/98
                                                                             THROUGH                                THROUGH
                                           1/1/98 THROUGH 12/23/98           12/31/98                               5/20/98
                                    --------------------------------------   --------                               -------
                                       CCA       CHARTERCOMM
                                      GROUP     HOLDINGS, L.P.          CHARTER         ELIMINATIONS    SUBTOTAL     SONIC
                                    ---------   --------------    -------------------   ------------    ---------   -------
<S>                                 <C>         <C>               <C>        <C>        <C>             <C>         <C>
Revenues..........................  $ 324,432      $196,801       $ 49,731   $23,450      $    --       $ 594,414   $17,276
                                    ---------      --------       --------   -------      -------       ---------   -------
Operating expenses:
  Operating, general and
    administrative................    164,145        98,331         25,952    12,679           --         301,107     8,993
  Depreciation and amortization...    136,689        86,741         16,864    13,811           --         254,105     2,279
  Management fees/corporate
    expense charges...............     17,392        14,780          6,176       766           --          39,114        --
                                    ---------      --------       --------   -------      -------       ---------   -------
    Total operating expenses......    318,226       199,852         48,992    27,256           --         594,326    11,272
                                    ---------      --------       --------   -------      -------       ---------   -------
Income (loss) from operations.....      6,206        (3,051)           739    (3,806)          --              88     6,004
Interest expense..................   (113,824)      (66,121)       (17,277)   (5,051)       1,900(c)     (200,373)   (2,624)
Other income (expense)............      4,668        (1,684)          (684)      133       (1,900)(c)         533       (15)
                                    ---------      --------       --------   -------      -------       ---------   -------
Income (loss) before income
  taxes...........................   (102,950)      (70,856)       (17,222)   (8,724)          --        (199,752)    3,365
Provision for income taxes........         --            --             --        --           --              --     1,346
                                    ---------      --------       --------   -------      -------       ---------   -------
Income (loss) before extraordinary
  item............................  $(102,950)     $(70,856)      $(17,222)  $(8,724)     $    --       $(199,752)  $ 2,019
                                    =========      ========       ========   =======      =======       =========   =======
 
<CAPTION>
 
                                            PRO FORMA
                                    --------------------------
 
                                    ADJUSTMENTS        TOTAL
                                    -----------      ---------
<S>                                 <C>              <C>
Revenues..........................   $      --       $ 611,690
                                     ---------       ---------
Operating expenses:
  Operating, general and
    administrative................                     310,100
  Depreciation and amortization...     119,515(a)      375,899
  Management fees/corporate
    expense charges...............     (22,621)(b)      16,493
                                     ---------       ---------
    Total operating expenses......      96,894         702,492
                                     ---------       ---------
Income (loss) from operations.....     (96,894)       (90,802)
Interest expense..................      (4,471)(d)    (207,468)
Other income (expense)............          --             518
                                     ---------       ---------
Income (loss) before income
  taxes...........................    (101,365)       (297,752)
Provision for income taxes........      (1,346)(e)          --
                                     ---------       ---------
Income (loss) before extraordinary
  item............................   $(100,019)      $(297,752)
                                     =========       =========
</TABLE>

 
- -------------------------
 
(a) Represents additional amortization of franchises as a result of the Charter
    Acquisition. The excess of purchase price over the net tangible assets
    acquired ($3.6 billion) was recorded in franchises (amortized over 15
    years).
 
(b) Reflects the reduction in corporate expense charges of approximately $8.2
    million to reflect the actual costs incurred. Management fees charged to CCA
    Group and CharterComm Holdings, companies not controlled by CCI, exceeded
    the allocated costs incurred by CCI on behalf of those companies by $8.2
    million. Also reflects the elimination of approximately $14.4 million of ARP
    costs related to the Charter Acquisition that were paid by CCI and not
    subject to reimbursement by the Company but were allocated to the Company
    for financial reporting purposes. The Appreciation Rights Plan (ARP) was
    terminated in connection with the Charter Acquisition and these costs will
    not recur.
 
(c) Represents the elimination of intercompany interest on the note payable from
    Charter to CCA Group.
 
(d) Reflects additional interest expense on borrowings used to finance the Sonic
    Acquisition (using a 7.4% interest rate).
 
(e) Reflects the elimination of provision for income taxes as the Company will
    operate as a limited liability company and all income taxes will flow
    through to the members.
 
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