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SEC Filings

S-1
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form S-1 on 07/28/1999
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<PAGE>   41
 
     NOTE B:  Pro forma operating results for Marcus Holdings consist of the
following (dollars in thousands):
 

<TABLE>
<CAPTION>
                                       JANUARY 1,
                                          1998      APRIL 23, 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
  Depreciation and
    amortization.....................     64,669         174,968             --                 --           13,218(d)    252,855
  Corporate expense charges..........                         --                                             17,042(c)     17,042
  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) benefit...........    (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 Holdings.
 
(b) Represents the elimination of the operating results and corresponding gain
    on sale of cable systems sold by Marcus Holdings during 1998.
 
(c) Represents a reclassification of 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 Charter Investment on
    behalf of Marcus Holdings. Management fees charged to Marcus Holdings
    exceeded the costs incurred by Charter Investment by $1.3 million.
 
(d) As a result of the acquisition of Marcus Holdings by Mr. Allen and an
    affiliate, a large portion of the purchase price ($2.5 billion) was recorded
    as franchises that are amortized over 15 years. This resulted in additional
    amortization for the period from January 1, 1998 through April 23, 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 23, 1998.
 
(e) As a result of the acquisition of Marcus Holdings by Mr. Allen and an
    affiliate, Marcus Holdings recorded transaction costs of approximately
    $114.2 million. These costs comprised approximately $90.2 million paid to
    employees of Marcus Holdings 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
    Holdings recorded costs related to employee and officer stay-bonus and
    severance arrangements of approximately $16.0 million.
 
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