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SEC Filings

S-4/A
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form S-4/A on 05/12/1999
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                                   BUSINESS
 
   
     Unless the context otherwise requires, all references to "CCHC" mean
Charter Communications Holdings Capital Corporation. All references to "Charter"
or the "Issuers" mean Charter Holdings and CCHC. All references to the "Charter
Companies" mean Charter Communications Operating, LLC and its subsidiaries prior
to the Marcus Combination. All references to the "Charter Systems" mean all
cable systems owned directly or indirectly by the Charter Companies. All
references to "Marcus" mean Marcus Cable Company, L.L.C. All references to the
"Marcus Companies" mean Marcus and its subsidiaries prior to the Marcus
Combination. All references to the "Marcus Systems" mean all cable systems owned
directly or indirectly by the Marcus Companies. All references to "the Company,"
"we," "us" or "our" mean Charter together with its subsidiaries.
    
 
GENERAL
 
   
     We are the seventh largest operator of cable systems in the United States,
serving approximately 2.3 million customers. Our cable systems are managed in
seven operating regions and operate in 22 states. We offer a full range of cable
television services, including basic, expanded basic, premium and pay-per-view
television programming. We have begun to offer digital cable television services
to customers in some of our systems, and are also expanding into other
entertainment, educational and communications services, such as high-speed
Internet access and interactive services. These new services will take advantage
of the significant bandwidth of our cable systems. For the year ended December
31, 1998, pro forma for the Marcus Combination, our revenues were approximately
$1.1 billion and our EBITDA was approximately $482 million. Approximately 96% of
our equity is beneficially owned by Paul G. Allen, the co-founder of Microsoft
Corporation. The remaining equity is owned by our founders, Jerald L. Kent,
Barry L. Babcock and Howard L. Wood. Mr. Kent is the President and Chief
Executive Officer and a director of CCI.
    
 
   
     We have pursued and executed a strategy of operating, developing, acquiring
and consolidating cable systems with the primary goals of increasing our
customer base and operating cash flow by consistently emphasizing superior
customer service. During 1998, we increased the internal customer base, revenues
and EBITDA of the Charter Companies by 4.8%, 9.5% and 11.0%, respectively. This
internal customer growth was more than twice the national average for 1998 (4.8%
versus 1.7%) and was significantly higher than the national average for 1997
(3.5% versus 2.0%). We attribute such success to an operating philosophy that
emphasizes superior customer service, decentralized operations with centralized
financial controls, and innovative marketing techniques.
    
 
   
     In addition to growing our internal customer base, we have grown
significantly through acquisitions. Over the past five years, our management
team has successfully completed 22 acquisitions and we have entered into six
agreements to acquire cable systems. These Recent Acquisitions and the Pending
Acquisitions serve a total of approximately 1.3 million customers. Pro forma for
the Marcus Combination, the Recent Acquisitions and the Pending Acquisitions,
our revenues and EBITDA for 1998 would have been $1.7 billion and $755 million,
respectively. We have also entered into a letter of intent to acquire cable
systems with approximately 12,000 additional customers. Pro forma for the Recent
Acquisitions and the Pending Acquisitions and the acquisition currently subject
to a letter of intent, we serve approximately 3.6 million customers. As we
acquire and integrate these and other cable systems in the future, we believe
that the implementation
    
 
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