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SEC Filings

10-Q
RENAISSANCE MEDIA GROUP LLC filed this Form 10-Q on 05/17/1999
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revenue increased due to the increase in subscribers during the three months
ended March 31, 1999 over the comparable period in 1998. Partially offsetting
the increase in basic revenue was a decrease in pay-per-view revenue of $.1
million from $1.6 million to $1.5 million.

         Expenses. Expenses that include service costs, selling, general and
administrative and depreciation and amortization were unchanged for the quarter
ended March 31, 1999 compared to the quarter March 31, 1998. This is due to a
combination of offsetting factors. Programming costs increased approximately $.4
million due to annual rate increases and the addition of new programming
services. This increase was offset by: (1) lower marketing costs due to
increased marketing support reimbursement from vendors; (2) the reduction of
certain expense accruals based on actual expense levels being lower than
previously estimated and (3) lower bad debt expense due to improved collection
procedures.

         Operating Income. Operating income increased $1.3 million to $1.7
million for the three months ended March 31, 1999 from $.4 million for the three
months ended March 31, 1998. The increase in operating income resulted from the
increase in revenue of $1.3 million for the three month period ended March 31,
1999, over the three month period ended March 31, 1998.

         Interest Expense. Interest expense, decreased $.1 million or 2.0% to
$4.8 million for the three months ended March 31, 1999 from $4.9 million for the
three months ended March 31, 1998. This decrease was due to the decrease in bank
debt outstanding from $110.0 million during the three month period ended March
31, 1998 to $102.5 million during the three month period ended March 31, 1999
and lower borrowing rates.

         Net Loss. For the reasons discussed above, net loss decreased $1.4
million, or 32.3%, to $3.1 million for the three months ended March 31, 1999
from $4.5 million for the three months ended March 31, 1998

LIQUIDITY AND CAPITAL RESOURCES

         The cable television business requires substantial capital for the
upgrading, expansion and maintenance of signal distribution equipment, as well
for home subscriber devices and wiring, and service vehicles. The Company will
continue to deploy fiber optic technology and to upgrade the Systems to a
minimum of 550 MHz. The deployment of fiber optic technology will allow the
Company to complete future upgrades to the Systems in a cost-effective manner.

         The working capital requirements of a cable television business are
generally not significant since subscribers are billed for services monthly in
advance, while the majority of expenses incurred (except for payroll) are paid
generally 30-60 days after their incurrence.

         The Systems' net cash provided by operations was $5.4 million for the
three months ended March 31, 1999. The Systems' net cash used in investing
activities was $5.0 million for the three months ended March 31, 1999. The
Systems' did not provide or use any cash in financing activities for the three
months ended March 31, 1999.

         EBITDA represents operating income before interest, taxes, depreciation
and amortization. EBITDA is not intended to be a performance measure that should
be regarded as an alternative either to operating income or net income as an
indicator of operating performance or to the statement of cash flows as a
measure of liquidity, as determined in accordance with generally accepted
accounting principles. EBITDA is included herein because the Company believes
that EBITDA is a meaningful


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