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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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(b)  Adjusted EBITDA represents income before interest expense, income taxes,
     depreciation and amortization, management fees, and stock option
     compensation expense, and other income (expense). Adjusted EBITDA is
     presented because it is a widely accepted financial indicator of a cable
     company's ability to service its indebtedness. However, Adjusted EBITDA
     should not be considered as an alternative to income from operations or to
     cash flows from operating, investing or financing activities, as determined
     in accordance with generally accepted accounting principles. Adjusted
     EBITDA should not be construed as an indication of a company's operating
     performance or as a measure of liquidity. In addition, because Adjusted
     EBITDA is not calculated identically by all companies, the presentation
     here may not be comparable to other similarly titled measures of other
     companies. Management's discretionary use of funds depicted by Adjusted
     EBITDA may be limited by working capital, debt service and capital
     expenditure requirements and by restrictions related to legal requirements,
     commitments and uncertainties.

(c)  Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of 
     revenues.

(d)  Homes passed are the number of living units, such as single residence
     homes, apartments and condominium unites, passed by the cable television
     distribution network in a given cable television system service area.

(e)  Basic subscribers are subscribers who receive basic cable service.

(f)  Basic penetration represents basic customers as a percentage of homes 
     passed.

(g)  Premium subscribers represents premium units as a percentage of basic 
     customers.

(h)  Monthly revenue per subscriber represents revenues divided by the number of
     months in period divided by the number of basic subscribers at period end.

RESULTS OF OPERATIONS - SUPPLEMENTAL ANALYSIS FOR THE QUARTER ENDED SEPTEMBER
30, 1999 VERSUS THE QUARTER ENDED SEPTEMBER 30, 1998 (FOR THE SYSTEMS OPERATED
ON OR BEFORE JULY 1, 1998)

The following discussion is provided to show the results of operations on a
comparable basis for only those systems managed by Charter Investment, Inc.
during the three months ended September 30, 1999 versus the three months ended
September 30, 1998. Specifically, this analysis excludes systems acquired by the
Company after July 1, 1998. Further, this analysis excludes the Marcus systems
as Charter Investment, Inc. did not begin to manage these systems until October
1998.

Revenues increased by $15.1 million or 9.8% when comparing the revenues for the
quarter ended September 30, 1999 to the results for the comparable systems for
the quarter ended September 30, 1998. This increase is due to a net gain of
approximately 49,000 or 3.9% basic subscribers between quarters and retail rate
increases implemented in certain of the Company's systems. In addition, the
Company has increased its ratio of premium subscriptions to basic subscribers
from .70 to 1.00 to .75 to 1.00 as a result of marketing multiple premium
subscriptions in a packaged format at a discounted retail rate.

Operating, general and administrative expenses increased approximately $6.6
million or 8.4% when comparing the operating expenses for the quarter ended
September 30, 1999 to the results for the comparable systems for the quarter
ended September 30, 1998. This increase is primarily due to increases in license
fees paid for programming as a result of additional subscribers, new channels
launched and increases in the rates paid to the programming services. The
Company believes that the growth in programming expense is consistent with
industry-wide increases.

The Company experienced growth in adjusted EBITDA, as defined, of approximately
$8.4 million or 11.3% when comparing adjusted EBITDA for the quarter ended
September 30, 1999 to the results for the comparable systems for the quarter
ended September 30, 1999. Adjusted EBITDA margin increased from 48.7% to 49.3%
when comparing the similar periods, primarily as a result of the increase in
revenues.



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