Print Page  Close Window

SEC Filings

424B3
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form 424B3 on 09/01/1999
Entire Document
 
<PAGE>   37
 
            NOTES TO THE UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
 
     NOTE A:  Pro forma operating results for Charter Holdings consist of the
following (dollars in thousands):
 

<TABLE>
<CAPTION>
                                                      HISTORICAL
                                                 ---------------------
                                                  1/1/99       1/1/99
                                                  THROUGH     THROUGH
                                                  6/30/99     6/30/99
                                                 ---------    --------
                                                  CHARTER      MARCUS      PRO FORMA
                                                 HOLDINGS     HOLDINGS    ADJUSTMENTS      TOTAL
                                                 ---------    --------    -----------    ---------
<S>                                              <C>          <C>         <C>            <C>
Revenues.......................................  $ 468,993    $125,180     $     --      $ 594,173
Operating expenses:
  Operating, general and administrative........    241,341      68,984           --        310,325
  Depreciation and amortization................    249,952      51,688       11,981(a)     313,621
  Stock option compensation expense............     38,194          --           --         38,194
  Corporate expense charges....................     11,073          --           --         11,073
  Management fees..............................         --       4,381       (4,381)(b)         --
                                                 ---------    --------     --------      ---------
          Total operating expenses.............    540,560     125,053        7,600        673,213
                                                 ---------    --------     --------      ---------
Income (loss) from operations..................    (71,567)        127       (7,600)       (79,040)
Interest expense...............................   (157,669)    (27,067)         867(c)    (183,869)
Interest income................................     10,085         104                      10,189
Other income (expense).........................      2,840        (158)                      2,682
                                                 ---------    --------     --------      ---------
Loss before extraordinary items................  $(216,311)   $(26,994)    $ (6,733)     $(250,038)
                                                 =========    ========     ========      =========
</TABLE>

 
-------------------------
 
(a) As a result of Paul G. Allen acquiring a controlling interest in Marcus
    Cable, a large portion of the purchase price was recorded as franchises
    ($2.5 billion) that are amortized over 15 years. This resulted in additional
    amortization for the period from January 1, 1999 through March 31, 1999. The
    adjustment to depreciation and amortization expense consists of the
    following (dollars in millions):
 

<TABLE>
<CAPTION>
                                                                       WEIGHTED AVERAGE
                                                                         USEFUL LIFE       DEPRECIATION/
                                                         FAIR VALUE       (IN YEARS)       AMORTIZATION
                                                         ----------    ----------------    -------------
<S>                                                      <C>           <C>                 <C>
     Franchises........................................   $2,500.0            15              $ 40.8
     Cable distribution systems........................      720.0             8                21.2
     Land, buildings and improvements..................       28.3            10                 0.7
     Vehicles and equipment............................       13.6             3                 1.0
                                                                                              ------
          Total depreciation and amortization..........                                         63.7
          Less -- historical depreciation and
            amortization of Marcus.....................                                        (51.7)
                                                                                              ------
               Adjustment..............................                                       $ 12.0
                                                                                              ======
</TABLE>

 
(b) Reflects the elimination of management fees.
 
(c) As a result of the acquisition of Marcus Cable by Paul G. Allen, 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 of interest
    expense.
 
                                       35