Print Page  Close Window

SEC Filings

S-1
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form S-1 on 07/28/1999
Entire Document
 
<PAGE>   13
 
(b) EBITDA represents earnings (loss) before interest, income taxes,
    depreciation and amortization. EBITDA is presented because it is a widely
    accepted financial indicator of a cable television company's ability to
    service indebtedness. However, EBITDA should not be considered as an
    alternative to income from operations or to cash flows from operating,
    investing or financing activities, as determined in accordance with
    generally accepted accounting principles. EBITDA should also not be
    construed as an indication of a company's operating performance or as a
    measure of liquidity. Management's discretionary use of funds depicted by
    EBITDA may be limited by working capital, debt service and capital
    expenditure requirements and by restrictions related to legal requirements,
    commitments and uncertainties.
 
(c) EBITDA margin represents EBITDA as a percentage of revenues.
 
(d) Adjusted EBITDA means EBITDA before corporate expenses, management fees and
    other income (expense). Adjusted EBITDA is presented because it is a widely
    accepted financial indicator of a cable company's ability to service its
    indebtedness. However, Adjusted EBITDA should not be considered as an
    alternative to income from operations or to cash flows from operating,
    investing or financing activities, as determined in accordance with
    generally accepted accounting principles. Adjusted EBITDA should also not be
    construed as an indication of a company's operating performance or as a
    measure of liquidity. In addition, because Adjusted EBITDA is not calculated
    identically by all companies, the presentation here may not be comparable to
    other similarly titled measures of other companies. Management's
    discretionary use of funds depicted by Adjusted EBITDA may be limited by
    working capital, debt service and capital expenditure requirements and by
    restrictions related to legal requirements, commitments and uncertainties.
 
(e) Basic penetration represents basic customers as a percentage of homes
    passed.
 
(f) Premium penetration represents premium units as a percentage of basic
    customers.
 
(g) Average monthly revenue per basic customer represents revenues divided by
    the number of months in the period divided by the number of basic customers
    at period end.
 
                                       10