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S-4/A
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form S-4/A on 06/22/1999
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<PAGE>   41
 
            NOTES TO THE UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
 
   
     NOTE A:  Pro forma operating results for Charter Holdings, including the
acquisition of us on December 23, 1998 by Paul G. Allen and the acquisition of
Sonic, 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       CHARTER HOLDINGS      SONIC    ELIMINATIONS   SUBTOTAL
                                ---------   -----------    -------------------   -------   ------------   ---------
<S>                             <C>         <C>            <C>        <C>        <C>       <C>            <C>
Revenues......................  $ 324,432    $196,801      $ 49,731   $23,450    $17,276    $      --     $ 611,690
                                ---------    --------      --------   -------    -------    ---------     ---------
Operating expenses:
  Operating, general and
    administrative............    164,145      98,331        25,952    12,679      8,993           --       310,100
  Depreciation and
    amortization..............    136,689      86,741        16,864    13,811      2,279           --       256,384
  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     11,272           --       605,598
                                ---------    --------      --------   -------    -------    ---------     ---------
Income (loss) from
  operations..................      6,206      (3,051)          739    (3,806)     6,004           --         6,092
Interest expense..............   (113,824)    (66,121)      (17,277)   (5,051)    (2,624)       1,900      (202,997)(c)
Other income (expense)........      4,668      (1,684)         (684)      133        (15)      (1,900)          518(c)
                                ---------    --------      --------   -------    -------    ---------     ---------
Income (loss) before income
  taxes.......................   (102,950)    (70,856)      (17,222)   (8,724)     3,365           --      (196,387)
Provision for income taxes....         --          --            --        --      1,346           --         1,346
                                ---------    --------      --------   -------    -------    ---------     ---------
Income (loss) before
  extraordinary item..........  $(102,950)   $(70,856)     $(17,222)  $(8,724)   $ 2,019    $      --     $(197,733)
                                =========    ========      ========   =======    =======    =========     =========
 
<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
    acquisition of us by Mr. Allen. 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 Charter
    Communications, Inc. at that time exceeded the allocated costs incurred by
    Charter Communications, Inc. on behalf of those companies by $8.2 million.
    Also reflects the elimination of approximately $14.4 million of change of
    control payments under the terms of then-existing equity appreciation rights
    plans. Such payments were triggered by the acquisition of us by Mr. Allen.
    Such payments were made by Charter Communications, Inc. and were not subject
    to reimbursement by us, but were allocated to us for financial reporting
    purposes. The equity appreciation rights plans were terminated in connection
    with the acquisition of us by Mr. Allen, and these costs will not recur.
    
 
   
(c) Represents the elimination of intercompany interest on a note payable from
    Charter Holdings to CCA Group.
    
 
   
(d) Reflects additional interest expense on borrowings used to finance the
    acquisition by us of Sonic, using a 7.4% interest rate.
    
 
   
(e) Reflects the elimination of provision for income taxes, as Charter Holdings
    will operate as a limited liability company and all income taxes will flow
    through to the members.
    
 
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