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SEC Filings

S-4/A
AVALON CABLE OF MICHIGAN INC/ filed this Form S-4/A on 07/22/1999
Entire Document
 
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                       UNAUDITED PRO FORMA FINANCIAL DATA
 
   The Unaudited Pro Forma Financial Data for each issuer or guarantor is based
on the historical financial statements and the assumptions and adjustments
described in the accompanying notes.
 
   Unaudited Pro Forma Financial Data is presented for each of the following:
     
  .  Avalon Cable LLC including AMRAC Clear View, the predecessor entity,
            
  .  Avalon Cable of Michigan Holdings, Inc., a guarantor of the old notes
     and new notes, and     
     
  .  Avalon Cable of Michigan, Inc., a guarantor of the old notes and new
     notes.     
 
   The results of Mercom are included in the results of Avalon Cable of
Michigan Holdings, Inc., Avalon Cable of Michigan, Inc. and Cable Michigan for
the reported periods. The following Unaudited Pro Forma Statements of
Operations for each issuer or guarantor gives effect to our completed and
pending acquisitions, the issuance of the old notes, the issuance of the senior
subordinated notes by the issuers' operating subsidiaries, the incurrence of
debt under our senior credit facility and the reorganization transactions
described herein, as if each had occurred on January 1, 1999 for pro forma
information for the period ending March 31, 1999 and January 1, 1998 for the
pro forma information for the period ended December 31, 1998. The Unaudited Pro
Forma Statements of Operations do not purport to represent what the issuers'
results of operations actually would have been if all completed and pending
acquisitions had occurred as of the date indicated or what the results will be
for future periods. Among other things, this data does not give effect to
certain non-recurring charges or cost savings expected to result from our
acquisitions. In the following table and the related notes, we refer to:
 
  .  Avalon Cable Holdings Finance, Inc. as Holdings Finance,
     
  .  the assets and related liabilities that we acquired from Taconic
     Technology Corporation as Taconic,     
 
  .  Avalon Cable of Michigan Holdings, Inc. as Michigan Holdings,
 
  .  AMRAC Clear View as Amrac,
 
  .  Pegasus Cable Television, Inc. and Pegasus Cable Television of
     Connecticut, Inc., collectively as Pegasus,
 
  .  Avalon Cable of Michigan, Inc. as Avalon Michigan Inc., and
 
   The following Unaudited Pro Forma Balance Sheets as of March 31, 1999 were
prepared as if all of the completed and pending acquisitions and the
reorganization had occurred on this date. The Unaudited Pro Forma Balance
Sheets reflect the preliminary allocations of purchase price to the issuers'
tangible and intangible assets and liabilities. The final allocation of
purchase price, and the resulting depreciation and amortization expense in the
accompanying Unaudited Pro Forma Combined Statements of Operations, may differ
from the preliminary estimates due to the final allocation being based on (a)
actual closing date amounts of assets and liabilities and (b) actual appraised
values of property, plant and equipment and any identifiable intangible assets
for the pending acquisitions. For every $100,000 change in the allocation to
goodwill, amortization expense would increase or decrease accordingly by
approximately $6,700 on a yearly basis.
 
   The Unaudited Pro Forma Financial Data and accompanying notes are provided
for informational purposes only and are not necessarily indicative of the
operating results that would have occurred had all completed and pending
acquisitions been consummated on the date indicated, nor are they necessarily
indicative of the Issuers' future results of operations or financial position.
The operating results for the three months ended March 31, 1999 are not
necessarily indicative of results to be expected for the year ended December
31, 1999.
 
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