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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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of goodwill and intangibles assets and losses or gains recognized on the
disposal of assets. Management expects depreciation and amortization to
increase as a result of the purchase accounting adjustments arising in
connection with the Time Warner Acquisition.
 
   The table below sets forth for the periods indicated certain data regarding
expenses expressed as a percentage of total revenues:

<TABLE>
<CAPTION>
                                                                   Renaissance
                                                                      Media
                                          Systems                   Group LLC
                            -------------------------------------- ------------
                                                       Period from
                            Year Ended December 31,    January 1--  Year Ended
                            -------------------------   April 8,   December 31,
                             1995     1996     1997       1998         1998
                            -------  -------  -------  ----------- ------------
<S>                         <C>      <C>      <C>      <C>         <C>
Revenues..................    100.0%   100.0%   100.0%    100.0%      100.0%
System operating
 expenses.................     47.7     47.8     45.4      45.8        45.7
Non-system operating
 expenses.................      5.1      5.8      5.5       5.0         4.9
Depreciation, amortization
 and loss (gain) on
 disposal of fixed
 assets...................     40.4     38.3     37.9      32.4        46.0
Operating income..........      6.8      8.1     11.2      16.8         3.3
Interest expense..........     27.3      --       --        --         34.1
Income tax (benefit)
 expense..................     (8.2)     3.2      4.4       7.8          .3
Net (loss) income.........    (12.3)     4.9      6.8       9.0       (31.2)
</TABLE>

 
   The Systems have not had any material acquisitions during these periods and
thus the growth since 1995 represents internal growth resulting from
subscriber additions, rate increases and additional services purchased by
subscribers and advertisers.
 
Results of Operations
 
   Year Ended December 31, 1998 Compared with Year Ended December 31, 1997
 
   Prior to the acquisition of the Time Warner Systems from Time Warner on
April 9, 1998, Group had no operations. Consequently, the results of
operations of the company for the year ended December 31, 1998 include
operating results for the period April 9, 1998 to December 31, 1998. In order
to facilitate discussion of the Results of Operations for the year ended
December 31, 1998 compared to the year ended December 31, 1997, the 1998
results of the Company have been annualized as indicated below:
 

<TABLE>
<CAPTION>
                                               As Reported
                                        -------------------------
                                          Systems      Company     Annualized
                                         Year Ended   Year Ended   Year Ended
                                        December 31, December 31, December 31,
                                            1997         1998       1998(1)
                                        ------------ ------------ ------------
                                                       (000's)
                                        --------------------------------------
<S>                                     <C>          <C>          <C>
Revenues...............................   $50,987      $ 41,524     $ 56,745
System operating expenses..............    23,142        18,998       26,220
Non-system operating expenses..........     2,782         2,039        2,824
Depreciation, amortization and loss
 (gain) on disposal of fixed assets....    19,317        19,107       26,166
                                          -------      --------     --------
Operating income.......................     5,746         1,380        1,535
Interest expense (net).................       --         14,200       19,564
Income tax expense.....................    (2,262)         (135)        (135)
                                          -------      --------     --------
Net (loss) income......................   $ 3,484      $(12,955)    $(18,164)
                                          =======      ========     ========
</TABLE>

 
(1) Computed by multiplying December 31, 1998 as reported items by 137% (365
  days / 267 days (number of days in period April 9, 1998 to December 31,
  1998), except for Corporate Franchise Taxes not subject to annualization and
  other immaterial adjustments.
 
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