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SEC Filings

10-Q
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form 10-Q on 11/15/1999
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<TABLE>
<CAPTION>
                                                 NINE MONTHS ENDED SEPTEMBER 30                  
                                                1999                      1998             
                                       -----------------------    -----------------------
                                                      (DOLLARS IN THOUSANDS)
                                               SUCCESSOR                PREDECESSOR
<S>                                    <C>            <C>         <C>            <C>   
STATEMENTS OF OPERATIONS
Revenues ............................  $ 845,182        100.0%    $  32,532        100.0%
                                       ---------      --------    ---------      -------
Operating expenses:
     Operating, general and
         administrative .............    436,057         51.6        17,498         53.8
     Depreciation and amortization...    441,391         52.2        11,236         34.5
     Stock option compensation
         expense ....................     59,288          7.0            --         --
     Management fees/corporate
         expense charges ............     18,309          2.2         1,499          4.6
                                       ---------      -------     ---------      -------
         Total operating expenses....    955,045        113.0        30,233         92.9
                                       ---------      -------     ---------      -------
(Loss) income from operations .......   (109,863)       (13.0)        2,299          7.1
Interest income .....................     18,326          2.2            23          0.1
Interest expense ....................   (288,750)       (34.2)      (11,831)       (36.4)
Other (expense) income ..............       (177)        --               6         --
                                       ---------      -------     ---------      -------
Loss before extraordinary item ......   (380,464)       (45.0)       (9,503)       (29.2)
Extraordinary item-loss from
     early extinguishment of debt....      7,794          0.9            --         -- 
                                       ---------      -------     ---------      -------
         Net loss ...................  $(388,258)       (45.9)%   $  (9,503)       (29.2)%
                                       =========      =======     =========      ======= 
</TABLE>


PERIOD FROM JANUARY 1, 1999 THROUGH SEPTEMBER 30, 1999
COMPARED TO PERIOD FROM JANUARY 1, 1998 THROUGH SEPTEMBER 30, 1998

         REVENUES. Revenues increased by $812.7 million, from $32.5 million for
the first nine months of 1998 to $845.2 million for the first nine months of
1999. The increase in revenues primarily resulted from the acquisitions of CCA
Group and CharterComm Holdings, Sonic, Marcus Holdings and other recent
acquisitions. Additional revenues from these entities included for the period
ended September 30, 1999 were $439.3 million, $26.2 million, $261.2 million and
$90.7 million, respectively.

         OPERATING, GENERAL AND ADMINISTRATIVE EXPENSES. Operating, general and
administrative expenses increased by $418.6 million, from $17.5 million for the
period from January 1, 1998 through September 30, 1998 to $436.1 million for the
period from January 1, 1999 through September 30, 1999. This increase was due
primarily to the acquisitions of the CCA Group and CharterComm Holdings, Sonic,
Marcus Holdings and other recent acquisitions. Additional operating, general and
administrative expenses from these entities included for the period from January
1, 1999 through September 30, 1999 were $221.1 million, $13.7 million, $140.4
million and $46.8 million, respectively.

         DEPRECIATION AND AMORTIZATION. Depreciation and amortization expense
increased by $430.2 million, from $11.2 million for the period from January 1,
1998 through September 30, 1998 to $441.4 million for the period from January 1,
1999 through September 30, 1999. There was a significant increase in
amortization expense resulting from the acquisitions of the CCA Group and
CharterComm Holdings, Sonic, Marcus Holdings and other recent acquisitions.
Additional depreciation and amortization expense from these entities included
for the period ended September 30, 1999 were $244.0 million, $5.3 million,
$133.9 million and $47.3 million, respectively.

         STOCK OPTION COMPENSATION EXPENSE. Stock option compensation expense
for the period from January 1, 1999 through September 30, 1999 was $59.3 million
due to the granting of options to employees in December 1998, February 1999 and
April 1999. The exercise prices of the options are less than the estimated fair
values of the underlying membership units on the date of grant, resulting in
compensation expense accrued over the vesting period of each grant that varies
from four to five years.

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