Avalon Cable of Michigan, Inc. is a wholly owned subsidiary of Avalon Cable
of Michigan Holdings, Inc. On November 6, 1998, Avalon Cable of Michigan, Inc.
acquired Cable Michigan. Accordingly, Cable Michigan is the predecessor entity
to both Avalon Cable of Michigan Holdings, Inc. and Avalon Cable of Michigan,
Prior to September 30, 1997, Cable Michigan was operated as part of
Commonwealth Telephone Enterprises, Inc. The table below sets forth selected
historical consolidated data for Cable Michigan. The historical consolidated
financial data presented below reflect periods during which Cable Michigan did
not operate as an independent company and, accordingly, certain allocations
were made in preparing the financial data. Therefore, this data may not reflect
the results of operations or the financial condition which would have resulted
if Cable Michigan had operated as a separate independent company during these
periods, and are not necessarily indicative of Cable Michigan's future results
of operations or financial position.
The selected historical consolidated statement of operations and balance
sheet data of Cable Michigan shown below for the five years ended December 31,
1997 have been derived from the consolidated financial statements of Cable
Michigan which have been audited by PricewaterhouseCoopers LLP, independent
accountants. The selected historical consolidated statement of operations and
balance sheet data for the period from January 1 to November 5, 1998 have been
derived from the consolidated financial statements of Cable Michigan, which
have been audited by PricewaterhouseCoopers LLP, independent accountants. The
audited consolidated financial statements of Cable Michigan as of December 31,
1996, 1997 and November 5, 1998 and for each of the two years in the period
ended December 31, 1997 and for the period from January 1, 1998 through
November 5, 1998 are included elsewhere herein.
The consolidated statement of operations data, other financial data and
balance sheet data include the results of operations for Mercom since August
1995. The other operating data includes Mercom operating data for all periods
presented. In July 1997, the Mercom Florida cable system was sold. This system
served approximately 1,900 subscribers at the time of the sale.