tions, Inc. and Charter Communications, Inc. will enter into a new management
agreement with Charter Communications Holding Company. This management agreement
will be substantially similar to the existing management agreement with Charter
Operating except that Charter Communications, Inc. will only be entitled to
receive reimbursement of its expenses as consideration for its providing
management services. See "Certain Relationships and Related Transactions".
We have had a history of net losses and expect to continue to report net
losses for the foreseeable future. The principal reasons for our prior and
anticipated net losses include depreciation and amortization expenses associated
with our acquisitions, capital expenditures related to construction and
upgrading of our systems, and interest costs on borrowed money. We cannot
predict what impact, if any, continued losses will have on our ability to
finance our operations in the future.
RESULTS OF OPERATIONS
The following discusses the results of operations for:
(1) Charter Communications Holding Company, comprised of Charter
Communications Properties, for the six months ended June 30, 1998, and
(2) Charter Communications Holding Company, comprised of the following for
the six months ended June 30, 1999:
- Charter Communications Properties, CCA Group and CharterComm Holdings
for the entire period;
- Marcus Holdings for the period from March 31, 1999 (the date Mr.
Allen acquired voting control) through June 30, 1999;
- Renaissance for the period from May 1, 1999 (the acquisition date)
through June 30, 1999; and
- American Cable for the period from May 8, 1999 (the acquisition date)
through June 30, 1999.