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S-1
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form S-1 on 07/28/1999
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<PAGE>   40
 
            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 Mr. 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 HOLDCO       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(c)      (202,997)
Other income
  (expense).............      4,668      (1,684)        (684)      133        (15)     (1,900)(c)          518
                          ---------    --------     --------   -------    -------     -------        ---------
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. A large portion of the purchase price was
    allocated to franchises ($3.6 billion) that is 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
    Investment at that time, exceeded the allocated costs incurred by Charter
    Investment 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 Charter Holdco by Mr. Allen.
    Such payments were made by Charter Investment 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 Charter Holdco by Mr. Allen, and these costs will
    not recur.
 
(c) Represents the elimination of intercompany interest on a note payable from
    Charter Holdco 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 Holdco
    will operate as a limited liability company and all income taxes will flow
    through to the members.
 
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