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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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   Net loss was $8.9 million for the nine months ended September 30, 1998, an
increase of $5.6 million or 170%, as compared to $3.3 million for the nine
months ended September 30, 1997.

 Year Ended December 31, 1997 Compared with the Year Ended December 31, 1996

   Revenues for the year ended December 31, 1997 were $81.3 million, an
increase of $5.1 million, or 6.7%, as compared to revenues of $76.2 million for
the year ended December 31, 1996. This increase was primarily due to the
effects of rate increases implemented in the first quarter of 1996 and 1997 and
an increase in the average number of basic subscribers of approximately 3.1%.

   Operating expenses excluding depreciation and amortization and corporate
overhead were $41.0 million for the year ended December 31, 1997, an increase
of $4.0 million, or 10.8%, as compared to $37.0 million for the year ended
December 31, 1996. This increase was primarily due to higher programming costs
resulting from contractual rate increases from programming suppliers, increases
in the number of channels provided to customers and increases in the number of
basic subscribers, as well as increased payroll and benefits costs.

   Operating income before depreciation and amortization and corporate overhead
was $40.3 million for the year ended December 31, 1997, an increase of $1.1
million, or 2.8%, as compared to $39.2 million for the year ended December 31,
1996.

   Depreciation and amortization was $32.1 million in 1997, an increase of $.7
million or 2.1% as compared to 1996. Interest expense was $11.8 million in
1997, a decrease of approximately $3.4 million, or 22.6% as compared to 1996
due to lower notes payable to affiliates, partially offset by an increase in
interest expense on new third-party debt. For the year ended December 31, 1997,
Cable Michigan realized a gain of $2.6 million on the sale of the Port St.
Lucie cable operations of Mercom which also resulted in an increase in the
minority share of Mercom's income.

   Net loss was $4.4 million for the year ended December 31, 1997, a decrease
of $3.9 million, or 47%, as compared to $8.3 million for the year ended
December 31, 1996.

   For the year ended December 31, 1997, Cable Michigan's net cash provided by
operating activities was $18.3 million, comprised primarily of a net loss of
$4.4 million adjusted by non-cash depreciation and amortization of $32.1
million, other non-cash items resulting in a decrease of $4.1 million and
working capital changes of a decrease of $4.6 million. Net cash used in
investing activities of $10.0 million consisting primarily of additions to
property, plant and equipment of $14.0 million, partially offset by proceeds
from the sale of Port St. Lucie of $3.5 million. Net cash provided by financing
activities of $5.6 million consisted of the issuance of long-term debt of
$128.0 million and transfers from Commonwealth Telephone Enterprises of $12.5
million, substantially offset by a change in affiliate notes of $116.8 million
and redemption of long-term debt of $17.4 million.

 Year Ended December 31, 1996 Compared with Year Ended December 31, 1995

   Revenues for the year ended December 31, 1996 were $76.2 million, an
increase of $15.5 million, or 25.5%, as compared to revenues of $60.7 million
for the year ended December 31, 1995. This increase primarily resulted from the
consolidation of the financial results of Mercom for a full year in 1996 as
compared to only five months in 1995. Mercom accounted for $9.6 million of the
increase in revenues over the same period in 1995. The remaining $5.9 million
increase was due to an increase in the average number of Cable Michigan's basic
subscribers of approximately 5.2% and the effects of rate increases implemented
in April 1995 and February 1996. On an annualized basis, Mercom's revenues
increased approximately $1.6 million, or 11.7%, of which approximately $1.0
million related to a rate increase implemented in February 1996 and
approximately $600,000 related to an increase in the average number of Mercom's
basic subscribers by 3.5%.


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