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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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 Year Ended December 31, 1997 Compared with Year Ended December 31, 1996
 
   Revenues for the year ended December 31, 1997 were $2.0 million, an increase
of $89,000, or 4.7%, as compared to revenues of $1.9 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.
 
   Costs and expenses excluding depreciation and amortization and corporate
overhead were $1.3 million for the year ended December 31, 1997, an increase of
$65,000, or 5.4%, as compared to $1.2 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.
 
   Operating income before depreciation and amortization and corporate overhead
was $727,000 for the year ended December 31, 1997, an increase of $24,000, or
3.4%, as compared to $703,000 for the year ended December 31, 1996.
 
   Net income was $0.8 million for the year ended December 31, 1997, an
increase of $0.1 million, or 14%, compared to $0.7 million for the year ended
December 31, 1996.
 
 Year Ended December 31, 1996 Compared with Year Ended December 31, 1995
 
   Revenues for the year ended December 31, 1996 were $1.9 million, an increase
of $145,000, or 8.1%, as compared to revenues of $1.8 million for the year
ended December 31, 1995. This increase was primarily due to the effects of rate
increases that were implemented in the first quarter of 1996 and an increase in
the average number of basic subscribers of approximately 2.3%.
 
   Costs and expenses excluding depreciation and amortization and corporate
overhead were $1.2 million for 1996, an increase of $105,000, or 9.5%, as
compared to $1.1 million for the year ended December 31, 1995. The increase was
primarily due to higher programming costs resulting from contractual rate
increases from programming suppliers and increases in the number of basic
subscribers.
 
   Operating income before depreciation and amortization and corporate overhead
was $703,000 for 1996, an increase of $40,000, or 6.0%, as compared to $663,000
for the year ended December 31, 1995.
 
   Net income was $0.1 million for each of the years ended December 31, 1998
and 1997.
 
Liquidity and Capital Resources
 
   The cable television business generally requires substantial capital for the
construction, expansion, upgrade and maintenance of the delivery system. In
addition, we have pursued, and will continue to pursue, a business strategy
that includes selective acquisitions. We have funded our acquisitions, capital
expenditures and working capital requirements to date through a combination of
secured and unsecured borrowings and equity contributions. We intend to use
amounts available under the credit facility, future debt and equity financings
and internally generated funds to finance our working capital requirements,
capital expenditures and future acquisitions.
 
   Over the next five years, we intend to spend approximately $76 million to
upgrade our existing systems and the systems subject to pending acquisitions.
These capital expenditures are expected to consist of:
 
  . approximately $45 million to upgrade the bandwidth capacity of these
    systems and to employ additional fiber in the related cable plant,
 
  . approximately $16 million for ongoing maintenance and replacement and
 
  . approximately $15 million for installations and extensions to the related
    cable plant required as a result of growth in our subscriber base.
 
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