Print Page  Close Window

SEC Filings

S-4
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form S-4 on 04/30/1999
Entire Document
 
<PAGE>   40
 
     NOTE B:  Pro forma operating results for Marcus consist of the following
(dollars in thousands):
 

<TABLE>
<CAPTION>
                           JANUARY 1,    APRIL 23,
                              1998          1998
                            THROUGH       THROUGH                               PRO FORMA
                           APRIL 22,    DECEMBER 23,   ------------------------------------------------------------
                              1998          1998       ACQUISITIONS(A)   DISPOSITIONS(B)   ADJUSTMENTS      TOTAL
                           ----------   ------------   ---------------   ---------------   -----------    ---------
<S>                        <C>          <C>            <C>               <C>               <C>            <C>
Revenues.................  $ 157,763     $ 332,320         $2,620           $(44,511)       $      --     $ 448,192
                           ---------     ---------         ------           --------        ---------     ---------
Operating expenses:
  Operating, general and
     administrative......     84,746       181,347          1,225            (20,971)         (15,297)(c)   231,050
  Corporate expenses.....                       --                                             17,042(c)     17,042
  Depreciation and
     amortization........     64,669       174,968             --                 --           13,218(d)    252,855
  Management fees........         --         3,048             --                 --           (3,048)(c)        --
  Transaction and
     severance costs.....    114,167        16,034             --                 --         (130,201)(e)        --
                           ---------     ---------         ------           --------        ---------     ---------
     Total operating
       expenses..........    263,582       375,397          1,225            (20,971)        (118,286)      500,947
                           ---------     ---------         ------           --------        ---------     ---------
Income (loss) from
  operations.............   (105,819)      (43,077)         1,395            (23,540)         118,286       (52,755)
Interest expense.........    (49,905)      (93,103)            --                 --            5,055(d)   (137,953)
Other income (expense)...     43,662            --             --            (43,662)              --            --
                           ---------     ---------         ------           --------        ---------     ---------
Income (loss) before
  extraordinary item.....  $(112,062)    $(136,180)        $1,395           $(67,202)       $ 123,341     $(190,708)
                           =========     =========         ======           ========        =========     =========
</TABLE>

 
- -------------------------
 
(a) Represents the results of operations of acquired cable systems prior to
    their acquisition in 1998 by Marcus.
 
(b) Represents the elimination of the operating results and corresponding gain
    on sale of cable systems sold by Marcus during 1998.
 
(c) Represents a reclassification to reflect the expenses totaling $15.3 million
    from operating, general and administrative to corporate expenses. Also
    reflects the elimination of management fees and the addition of corporate
    expense charges of $1.7 million for actual costs incurred by CCI on behalf
    of Marcus. Management fees charged to Marcus exceeded the costs incurred by
    CCI by $1.3 million.
 
(d) As a result of the acquisition of Marcus by Paul G. Allen, the excess of
    purchase price over the net tangible and identifiable intangible assets
    ($2.5 billion) was recorded as franchises (amortized over 15 years). This
    resulted in additional amortization for the period from January 1, 1998
    through April 22, 1998. Additionally, the carrying value of outstanding debt
    was recorded at estimated fair value, resulting in a debt premium that is to
    be amortized as an offset to interest expense over the term of the debt.
    This resulted in a reduction in interest expense for the period from January
    1, 1998 through April 22, 1998.
 
(e) As a result of the acquisition of Marcus by Paul G. Allen, Marcus recorded
    transaction costs of approximately $114.2 million, comprised of
    approximately $90.2 million paid to employees of Marcus in settlement of
    specially designated Class B units and approximately $24.0 million of
    transaction fees paid to certain equity partners for investment banking
    services. In addition, Marcus recorded costs related to employee and officer
    stay-bonus and severance arrangements of approximately $16 million.
 
                                       36