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SEC Filings

S-1/A
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form S-1/A on 11/04/1999
Entire Document
 
<PAGE>   47
 
                                    DILUTION
 
     The following table illustrates the dilution in pro forma net tangible book
value (total tangible assets less total liabilities) on a per share basis. In
calculating the dilution, we have made the same assumptions that we made with
respect to our unaudited pro forma financial statements. We have also assumed
the issuance of 170 million shares of Class A common stock offered in this
prospectus and the purchase of 50,000 shares of Class B common stock by Mr.
Allen.
 

<TABLE>
<S>                                                           <C>        <C>
Assumed initial public offering price per share......................    $ 18.00
  Pro forma net tangible book value per share at June 30,
     1999...................................................  $(38.99)
  Decrease in pro forma net tangible book value per share
     attributable to new investors purchasing shares in the
     offering...............................................   (18.51)
                                                              -------
Pro forma net tangible book value per share after the offering(a)....     (57.50)
                                                                         -------
Pro forma dilution per share to new investors(b).....................    $ 75.50
                                                                         =======
</TABLE>

 
---------------
 
(a) Represents pro forma total stockholders' equity of $2.8 billion less
    intangible assets of $12.6 billion divided by pro forma shares outstanding
    of 170,050,000.
 
(b) Assuming the exercise of the underwriters' over-allotment option, pro forma
    dilution per share to new investors would be $65.75.
 
     The table above and related discussion assumes no exercise of any options
to purchase membership units exchangeable for common stock of Charter
Communications, Inc. As of October 15, 1999, there were options outstanding to
purchase 16,250,408 Charter Communications Holding Company membership units at
exercise prices ranging from $20.00 to $20.73 per unit. Membership units
received upon exercise of these options will be automatically exchanged for
shares of Class A common stock on a one-for-one basis. To the extent that all of
these options are exercised, no additional pro forma dilution per share to the
new investors would occur.
 
     The following table summarizes the relative investment in Charter
Communications, Inc. by the existing holders of Charter Communications, Inc.
common stock and by the investors in the offering, giving pro forma effect to
the offering and treating all exchangeable membership units of Charter
Communications Holding Company as common stock of Charter Communications, Inc.
 

<TABLE>
<CAPTION>
                                           SHARES PURCHASED        TOTAL CONSIDERATION      AVERAGE
                                        ----------------------    ---------------------    PRICE PER
                                          NUMBER       PERCENT      AMOUNT      PERCENT      SHARE
                                        -----------    -------    ----------    -------    ---------
                                                                     (IN
                                                                  THOUSANDS)
<S>                                     <C>            <C>        <C>           <C>        <C>
Existing holders......................  324,955,052       66%     $5,633,200       65%      $17.34
New investors.........................  170,000,000       34%      3,060,000       35%       18.00
                                        -----------      ---      ----------      ---
          Total.......................  494,955,052      100%     $8,693,200      100%
                                        ===========      ===      ==========      ===
</TABLE>

 
 
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