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SEC Filings

S-4/A
AVALON CABLE OF MICHIGAN INC/ filed this Form S-4/A on 07/22/1999
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  . Avalon Cable of Michigan Holdings, Inc. contributed the old notes and
    associated deferred financing costs to Avalon Cable of Michigan, Inc. who
    in turn contributed the notes and deferred financing costs to Avalon
    Cable LLC.
 
  . The reorganization was among entities under common control and was
    accounted for similar to a pooling-of-interests.
 
 Three months ended March 31, 1999 compared to the period from November 6 to
 December 31, 1998
 
   Revenues for the three months ended March 31, 1999 were $24.6 million, an
increase of $2.3 million, or 35%, as compared to revenues of $18.2 million for
the period from November 6 to December 31, 1998. This increase is primarily
related to the effects of having a full quarter compared to 55 days as well as
the impact of subscribers contributed by Avalon Cable of Michigan, Inc. on
March 26, 1999.
 
   Costs and expenses excluding depreciation and amortization, corporate
overhead and non-recurring expenses were $13.0 million for the three months
ended, an increase of $2.9, or 29%, as compared to $10.1 million for the period
from November 6 to December 31, 1998. This increase is primarily related to the
effects of having a full quarter compared to 55 days, a regulation change which
allowed programmers to increase programming rates ($0.9 million), and the
addition of employees, offset by lower franchise fees due to a decrease in
number of subscribers.
 
   Operating income before depreciation and amortization, corporate overhead
and non-recurring expenses was $11.5 million for the three months ended March
31, 1999, an increase of $3.4 million, or 42%, as compared to $8.1 for the
period from November 6 to December 31, 1998.
 
   Depreciation and amortization for the three months ended March 31, 1999 was
$10.8 million, an increase of $2.6 million, or 32%, compared to $8.2 million
for the period from November 6 to December 31, 1998. This increase is primarily
related to the effects of having a full quarter compared to 55 days and the
impact of additional depreciation and amortization relating to the closing of
the acquisitions as well as the contribution of fixed assets and intangible
assets contributed by Avalon Cable of Michigan, Inc. on March 26, 1999.
 
   Interest expense, net was $11.4 million for the three months ended March 31,
1999, a decrease of $3.4 million, or 42.5%, compared to $8.0 million for the
period from November 6 to December 31, 1998. This decrease is primarily related
to the effects of having a full quarter compared to 55 days and the note
receivable from affiliate being outstanding during the entire quarter offset by
the interest expense on the debt from March 27 through March 31, 1999
contributed by Avalon Cable of Michigan, Inc.
 
   Other (expense) income, net was $1.4 million for the three months ended
March 31, 1999, an increase of $8.0 million, compared to $(6.6) million for the
period from November 6 to December 31, 1998. This increase is the effect of the
period from November 6 to December 31, 1998 included an extraordinary loss on
extinguishment of debt of $6.0 million.
 
   Net loss was $10.1 million for the three months ended March 31, 1998, a
decrease of $5.3 million or 34%, compared to $15.4 million for the period from
November 6 to December 31, 1998.
 
 Avalon Cable of Michigan, Inc.
 
   On November 6, 1998, Cable Michigan merged with and into Avalon Cable of
Michigan, Inc. and Avalon Cable of Michigan, Inc. commenced its operations.
Therefore, the financial and other data for Cable Michigan for the period from
November 6, 1998 to December 31, 1998 is reflected in the financial and other
data for Avalon Cable of Michigan, Inc.
 
   On March 26, 1999, Avalon Cable of Michigan, Inc. acquired the remaining
minority interest of Mercom for approximately $21.9 million. During the
quarter, Avalon Cable of Michigan, Inc. also acquired the cable television
systems of Nova Cablevision and Cross Country Cable for $10.7 million.
 
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