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SEC Filings

10-K405
RENAISSANCE MEDIA GROUP LLC filed this Form 10-K405 on 03/31/1999
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(2)   Prior to 1997, franchise fees were included in both revenues and
      expenses. In 1997, the Systems began itemizing franchise fees on
      subscriber billing invoices and recorded such fees as an offset to
      system operating expenses. Had the itemization process occurred prior to
      1997, the estimated amount of franchise fees that would have been
      reflected as an offset to System operating expenses and not included in
      revenues in 1994, 1995 and 1996 would have been approximately $1.3
      million, $1.4 million and $1.5 million, respectively. The effect of this
      change on EBITDA margin would have resulted in EBITDA margins of 50.1%,
      48.9% and 48.0% for the years 1994, 1995 and 1996, respectively.
 
(3)   Represents all system operating expenses and excludes management fees
      and corporate overhead.
 
(4)   Represents management fees and corporate overhead.
 
(5)   EBITDA represents income before interest, income taxes and depreciation,
      amortization and loss (gain) on disposal of fixed assets. EBITDA is not
      intended to represent cash flow from operations or net (loss) income as
      defined by generally accepted accounting principles and should not be
      considered as a measure of liquidity or an alternative to, or more
      meaningful than, operating income or operating cash flow as an
      indication of the Company's operating performance. Moreover, EBITDA is
      not a standardized measure and may be calculated in a number of ways.
      Accordingly, the EBITDA information provided may not be comparable to
      other similarly titled measures provided by other companies. EBITDA is
      included herein because management, certain investors, and industry
      analysts consider EBITDA to be a relevant and useful measure of
      comparative operating performance in the cable television industry, and
      when used in comparison to debt levels or the coverage of interest
      expense, as a measure of liquidity. In addition, certain covenants under
      the Company's indenture and credit agreement require a determination of
      EBITDA.
 
(6)   Represents EBITDA before non-system operating expenses. System cash flow
      should not be considered as a measure of liquidity or an alternative to,
      or more meaningful than, operating cash flow as defined by generally
      accepted accounting principles.
 
(7)   For purposes of this calculation, "earnings" is defined as earnings
      before fixed charges. Fixed charges consist of interest expense,
      amortization of deferred financing costs, income taxes and the portion
      of rent expense under operating leases representative of interest. For
      the years ended December 31, 1994 and 1995 the Systems' earnings before
      fixed charges were insufficient to cover their fixed charges by $9.0
      million, $9.1 million respectively. For the year ended December 31,
      1998, the Company's earnings before fixed charges were insufficient to
      cover its fixed charges by $12.9 million. For the years ended December
      31, 1996 and 1997, the Systems did not have indebtedness and a ratio of
      earnings to fixed charges would not be meaningful. The Company had no
      indebtedness at December 31, 1997.
 
(8)   Based on a homes passed audit conducted in 1996 which showed an increase
      in homes passed of approximately 27,000 homes, the homes passed may be
      understated in 1994 and 1995 and basic penetration may be overstated for
      such periods.
 
(9)   Reflects revenues for the applicable period divided by the average
      number of basic subscribers for the applicable period divided by the
      number of months in the applicable period.
 
(10)   Reflects EBITDA for the applicable period divided by the average number
       of basic subscribers for the applicable period. For purposes of this
       calculation, EBITDA was annualized for all periods presented that are
       less than one year.
 
(11)   Reflects system cash flow for the applicable period divided by the
       average number of basic subscribers for the applicable period. For
       purposes of this calculation, cash flow was annualized for all periods
       presented that are less than one year.
 
(12)   Reflects capital expenditures for the applicable period divided by the
       average number of basic subscribers for the applicable period. For
       purposes of this calculation, capital expenditures were annualized for
       all periods presented that are less than one year.
 
(13)   Prior to the acquisition of the Time Warner Systems, on April 9, 1998
       the Company had no operations, thus the results of operations of the
       Company for the year ended December 31, 1998 reflect operating results
       for the period from April 9, 1998 to December 31, 1998.
 
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