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SEC Filings

S-4/A
AVALON CABLE OF MICHIGAN INC/ filed this Form S-4/A on 05/28/1999
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                     CABLE MICHIGAN, INC. AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
14. Off Balance Sheet Risk and Concentration of Credit Risk

   The Company places its cash and temporary investments with high credit
quality financial institutions. The Company also periodically evaluates the
creditworthiness of the institutions with which it invests. The Company does,
however, maintain unsecured cash and temporary cash investment balances in
excess of federally insured limits.

   The Company's trade receivables reflect a customer base centered in the
state of Michigan. The Company routinely assesses the financial strength of its
customers; as a result, concentrations of credit risk are limited.

15. Disclosures about Fair value of Financial Instruments

   The following methods and assumptions were used to estimate the fair value
of each class of financial instruments for which it is practicable to estimate
that value:

     a. The fair value of the revolving credit agreement is considered to be
  equal to carrying value since the debt re-prices at least every six months
  and the Company believes that its credit risk has not changed from the time
  the floating rate debt was borrowed and therefore, would obtain similar
  rates in the current market.

     b. The fair value of the cash and temporary cash investments
  approximates fair value because of the short maturity of these instruments.

16. Quarterly Information (Unaudited)

   The Company estimated the following quarterly data based on assumptions
which it believes are reasonable. The quarterly data may differ from quarterly
data subsequently presented in interim financial statements.


<TABLE>
<CAPTION>
                                             First   Second    Third   Fourth
   1998                                     Quarter  Quarter  Quarter  Quarter
   ----                                     -------  -------  -------  -------
   <S>                                      <C>      <C>      <C>      <C>
   Revenue................................. $20,734  $22,311  $22,735  $ 8,741
   Operating income before depreciation,
    amortization, and management fees......   9,043   10,047   10,185   12,277
   Operating income (loss).................   7,000   (3,324)    (674)  (7,051)
   Net (loss)..............................  (1,401)  (5,143)  (2,375)  (1,615)
   Net (loss) per average Common Share.....   (0.20)   (0.75)   (0.34)    (.23)

<CAPTION>
   1997
   ----
   <S>                                      <C>      <C>      <C>      <C>
   Revenue................................. $19,557  $20,673  $20,682  $20,387
   Operating income before depreciation,
    amortization, and management fees......   8,940    9,592    9,287    9,013
   Operating income (loss).................     275      809     (118)      69
   Net (loss)..............................     N/A      N/A      N/A   (1,107)
   Net (loss) per average Common Share.....     N/A      N/A      N/A  $  (.16)
</TABLE>


   The fourth quarter information for the quarter ended December 31, 1998
includes the results of operations of the Company for the period from October
1, 1998 through November 5, 1998.

                                      F-72