Print Page  Close Window

SEC Filings

S-4/A
AVALON CABLE OF MICHIGAN INC/ filed this Form S-4/A on 07/22/1999
Entire Document
 
<PAGE>
 
  THE COMBINED OPERATIONS OF PEGASUS CABLE TELEVISION OF CONNECTICUT, INC. AND
         THE MASSACHUSETTS OPERATIONS OF PEGASUS CABLE TELEVISION, INC.
 
              NOTES TO COMBINED FINANCIAL STATEMENTS--(Continued)
 
6. Leases:
 
   The Combined Operations lease utility pole attachments and occupancy of
underground conduits. Rent expense for the years ended December 31, 1995, 1996
and 1997 and for the six months ended June 30, 1998 was $184,386, $185,638,
$173,930 and $90,471, respectively. The Combined Operations lease equipment
under long-term leases and have the option to purchase the equipment for a
nominal cost at the termination of the leases. The related obligations are
included in long-term debt. There are no future minimum lease payments on
capital leases at June 30, 1998. Property and equipment that was leased include
the following amounts that have been capitalized:
 

<TABLE>
<CAPTION>
                                                       December 31, December 31,
                                                           1996         1997
                                                       ------------ ------------
      <S>                                              <C>          <C>
      Billing and phone systems.......................   $ 56,675    $  56,675
      Vehicles........................................    166,801      129,227
                                                         --------    ---------
                                                          223,476      185,902
      Accumulated depreciation........................    (69,638)    (101,397)
                                                         --------    ---------
          Total.......................................   $153,838    $  84,505
                                                         ========    =========
</TABLE>

 
7. Related Party Transactions:
 
   The Combined Operations pay management fees to various related parties. The
management fees are for certain administrative and accounting services, billing
and programming services, and the reimbursement of expenses incurred therewith.
For the years ended December 31, 1995, 1996 and 1997 and for the six months
ended June 30, 1998, the fees and expenses were $368,085, $348,912, $242,267
and $97,714, respectively.
 
   As described in Note 5, PCT has an outstanding loan from its parent company.
This loan has been allocated to PCT-MA and is included in these financial
statements. Interest expense on that loan was $916,274, $1,874,198, $1,874,195
and $937,098 for the years ended December 31, 1995, 1996 and 1997 and for the
six months ended June 30, 1998 respectively. Other related party transaction
balances at December 31, 1996 and 1997 and June 30, 1998 included $4,216,682,
$5,243,384 and $5,692,013 in accounts receivable, affiliates; $581,632, $6,433
and $331,374 in accounts payable; and $299,030, $299,030 and $299,030 in other
liabilities, respectively. These related party balances arose primarily as a
result of financing capital expenditures, interest payments, programming and
other operating expenses.
 
                                      F-98