R/N SOUTH FLORIDA CABLE MANAGEMENT LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The accompanying consolidated financial statements are unaudited. However,
in the opinion of management, the financial statements reflect all adjustments,
consisting of normal recurring adjustments, necessary for fair presentation in
accordance with generally accepted accounting principles applicable to interim
periods. Interim results of operations are not indicative of results for the
full year. The accompanying financial statements should be read in conjunction
with the audited consolidated financial statements of R/N South Florida Cable
Management Limited Partnership (the "Partnership").
2. ACQUISITION BY INTERLINK COMMUNICATIONS PARTNERS, LLLP
InterLink Communications Partners, LLLP ("ICP") agreed to purchase all of
the Partnership interests as of December 31, 1998, for a total purchase price of
approximately $105,447,622. The acquisition of the Partnership by ICP was
accounted for as a purchase and a new basis of accounting was established
effective January 1, 1999. The new basis resulted in assets and liabilities
being recorded at their fair market value resulting in a increase in property,
plant, and equipment and franchise costs of $4,986,298 and $77,273,596,
respectively. Accordingly, the 1999 interim unaudited financial statements are
not comparable to the 1998 interim unaudited financial statements of the
Partnership, which are based on historical costs.
On December 30, 1998, the Partnership obtained an interpartnership loan
agreement with ICP. Borrowings under the interpartnership loan, as well as
interest and principal payments are due at the discretion of the management of
ICP. The balance of the interpartnership loan at March 31, 1999 was $30,272,414.
The interest rate at March 31, 1999 was 8.5%
4. ACQUISITION BY CHARTER COMMUNICATIONS HOLDINGS, LLC
On February 12, 1999, ICP signed a letter of intent to sell all of ICP's
partnership interests to Charter Communications Holdings, LLC ("Charter"). On
April 26, 1999, ICP signed a definitive Purchase and Sale Agreement with Charter
for the sale of the individual partners' interest. ICP and Charter are expected
to complete the sale during the third quarter of 1999.