SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________to_________
Commission file numbers: 333-36519 and 333-36519-01
FRONTIERVISION HOLDINGS, L.P.
FRONTIERVISION HOLDINGS CAPITAL CORPORATION*
(Exact names of Registrants as specified in their charters)
Delaware 84-1432334
Delaware 84-1432976
(States or other jurisdiction (IRS Employer Identification Numbers)
of incorporation or organization)
1777 South Harrison Street,
Suite P-200, Denver, Colorado 80210
(Address of principal executive offices) (Zip Code)
(303) 757-1588
(Registrants' telephone number, including area code)
Indicate by check mark whether the Registrants (1) have filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
Registrants were required to file such reports), and (2) have been subject to
such filing requirements for the past 90 days.
Yes [x] No [ ]
Number of shares of common stock of FrontierVision Holdings Capital
Corporation outstanding as of May 14, 1998: 100.
* FrontierVision Holdings Capital Corporation meets the conditions set
forth in General Instruction H(1)(a) and (b) to the Form 10-Q and is
therefore filing with the reduced disclosure format.
<PAGE>
FRONTIERVISION HOLDINGS, L.P.
FRONTIERVISION HOLDINGS CAPITAL CORPORATION
FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 1998
INDEX
<TABLE>
PART I. Financial Information PAGE
<S> <C>
Item 1. Consolidated Financial Statements of FrontierVision Holdings,
L.P. and Subsidiaries.................................................................... 3
Notes to Consolidated Financial Statements............................................... 7
Balance Sheets of FrontierVision Holdings Capital Corporation............................14
Note to the Balance Sheets ..............................................................15
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations.........................................16
PART II. Other Information........................................................................22
</TABLE>
2
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
FRONTIERVISION HOLDINGS, L.P. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
In Thousands
<TABLE>
-----------------------------
March 31, December 31,
1998 1997
-------- --------
(Unaudited)
ASSETS
<S> <C> <C>
Cash and cash equivalents $ 12,022 $ 4,728
Accounts receivable, net of allowance for doubtful accounts
of $558 and $640 7,273 8,071
Prepaid expenses and other 3,428 2,785
Investment in cable television systems, net:
Property and equipment 251,151 247,724
Franchise cost and other intangible assets 634,954 637,725
-------- --------
Total investment in cable television systems, net 886,105 885,449
-------- --------
Deferred financing costs, net 23,738 24,242
Earnest money deposits 2,000 2,000
-------- --------
Total assets $934,566 $927,275
======== ========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 2,155 $ 2,770
Accrued liabilities 16,950 15,126
Subscriber prepayments and deposits 2,200 1,828
Accrued interest payable 10,964 5,064
Debt 806,693 787,047
-------- --------
Total liabilities 838,962 811,835
-------- --------
Partners' capital:
FrontierVision Partners, L.P. 95,508 115,325
FrontierVision Holdings, LLC 96 115
-------- --------
Total partners' capital 95,604 115,440
Commitments
-------- --------
Total liabilities and partners' capital $934,566 $927,275
======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
FRONTIERVISION HOLDINGS, L.P. AND SUBSIDIARES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
In Thousands
<TABLE>
--------------------------------
For the Three For the Three
Months Ended Months Ended
March 31, March 31,
1998 1997
-------- --------
<S> <C> <C>
Revenue $ 53,819 $ 31,555
Expenses:
Operating expenses 27,693 16,783
Corporate administrative expenses 1,566 1,001
Depreciation and amortization 23,641 14,059
Storm related costs 705 --
-------- --------
Total expenses 53,605 31,843
-------- --------
Operating income/(loss) 214 (288)
Interest expense, net (19,922) (10,478)
Other expense (128) (52)
-------- --------
Net loss $(19,836) $(10,818)
======== ========
Net loss allocated to:
FrontierVision Partners, L.P. $(19,817) $(10,807)
(General Partner)
FrontierVision Holdings, LLC (19) (11)
-------- --------
(Limited Partner) $(19,836) $(10,818)
======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE>
FRONTIERVISION HOLDINGS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL
In Thousands
<TABLE>
-----------------------------------------------
FrontierVision FrontierVision
Partners, L.P. Holdings, LLC
(General Partner) (Limited Partner) Total
--------- --------- ---------
<S> <C> <C> <C>
Balance, December 31, 1997 $ 115,325 $ 115 $ 115,440
Net loss (Unaudited) (19,817) (19) (19,836)
--------- --------- ---------
Balance, March 31, 1998 (Unaudited) $ 95,508 $ 96 $ 95,604
========= ========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE>
FRONTIERVISION HOLDINGS, L.P. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS (UNAUDITED)
In Thousands
<TABLE>
--------------------------
For the Three For the Three
Months Ended Months Ended
March 31, March 31,
1998 1997
-------- --------
Cash Flows From Operating Activities:
<S> <C> <C>
Net loss $(19,836) $(10,818)
Adjustments to reconcile net loss to net
cash flows from operating activities:
Depreciation and amortization 23,641 14,059
Net loss on disposal of assets 128 --
Amortization of deferred debt issuance costs 664 510
Accretion of interest on indebtedness 4,646 225
Changes in operating assets and liabilities, net of
effect of acquisitions:
Accounts receivable 641 431
Prepaid expenses and other (452) (375)
Accounts payable and accrued liabilities 1,073 (996)
Subscriber prepayments and deposits 424 (63)
Accrued interest payable 5,900 5,431
-------- --------
Total adjustments 36,665 19,222
-------- --------
Net cash flows from operating activities 16,829 8,404
-------- --------
Cash Flows From Investing Activities:
Capital expenditures (9,475) (4,982)
Pending acquisition costs 42 (826)
Cash paid for franchise costs (2) --
Earnest money deposits -- (1,030)
Cash paid in acquisitions of cable television systems (14,940) (13,981)
-------- --------
Net cash flows from investing activities (24,375) (20,819)
-------- --------
Cash Flows From Financing Activities:
Debt borrowings 15,000 --
Principal payments on capital lease obligations -- (70)
Increase in deferred financing fees -- (2)
Offering costs related to Senior Subordinated Notes (23) (94)
Offering costs related to Senior Discount Notes (137) --
Partner capital contributions -- 14,946
-------- --------
Net cash flows from financing activities 14,840 14,780
-------- --------
Net Increase (Decrease) in Cash and Cash Equivalents 7,294 2,365
Cash and Cash Equivalents, beginning of period 4,728 3,639
-------- --------
Cash and Cash Equivalents, end of period $ 12,022 $ 6,004
======== ========
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest $ 8,824 $ 4,339
======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
6
<PAGE>
FRONTIERVISION HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Amounts In Thousands
(1) STATEMENT OF ACCOUNTING PRESENTATIONS AND OTHER INFORMATION
ORGANIZATION AND CAPITALIZATION
FrontierVision Holdings, L.P. ("Holdings" or the "Company"), wholly-owned by
FrontierVision Partners, L.P., a Delaware limited partnership ("FVP"), is a
Delaware limited partnership formed on September 3, 1997 for the purpose of
acting as co-issuer with its wholly-owned subsidiary, FrontierVision Holdings
Capital Corporation ("Holdings Capital"), of $237,650 aggregate principal amount
at maturity of 11 7/8% Senior Discount Notes due 2007 (the "Discount Notes").
FVP contributed to Holdings, both directly and indirectly, all of the
outstanding partnership interests of FrontierVision Operating Partners, L.P.
("FVOP") prior to the issuance of the Discount Notes on September 19, 1997 (the
"Formation Transaction") and therefore, at that time, FVOP and its wholly-owned
subsidiary, FrontierVision Capital Corporation ("Capital"), became wholly-owned,
consolidated subsidiaries of Holdings. The Formation Transaction was accounted
for as if it were a pooling of interests. As used herein, the "Company" refers
to Holdings, Holdings Capital, FrontierVision Operating Partners, Inc. ("FVOP
Inc."), FVOP and Capital.
The Company owns and operates cable television systems in three primary
operating clusters - New England, Ohio and Kentucky - with a fourth, smaller
group of cable television systems in the Southeast.
The Company was initially capitalized in November 1995 with approximately $38
from its sole limited partner, FVOP Inc., a Delaware corporation, and
approximately $38,300 from at the time its sole general partner, FVP. During the
year ended December 31, 1997, the Company received additional capital
contributions of approximately $37,653 from its partners. These capital
contributions and a portion of the proceeds from the Discount Notes was used by
FVOP to repay certain bank indebtedness of $65,500 with the remainder placed in
escrow to finance pending acquisitions.
REFERENCE TO ANNUAL REPORT
The attached interim financial statements are presented in accordance with the
requirements of Form 10-Q and consequently do not include all the disclosures
required by generally accepted accounting principles. The accompanying financial
statements should be read in conjunction with Holdings' Annual Report on Form
10-K for the year ended December 31, 1997 (File No. 333-36519) (the "Holdings
10-K") for additional disclosures, including a summary of the Company's
accounting policies.
The following notes, insofar as they are applicable to the three months ended
March 31, 1998, are not audited. In management's opinion, all adjustments
considered necessary for a fair presentation of such financial statements are
included and all such adjustments are of a normal and recurring nature. The
results for the three-month period ended March 31, 1998 are not necessarily
indicative of the results for the entire 1998 fiscal year.
RECLASSIFICATIONS
Certain amounts have been reclassified for comparative purposes.
7
<PAGE>
FRONTIERVISION HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Amounts in Thousands
(1) STATEMENT OF ACCOUNTING PRESENTATIONS AND OTHER INFORMATION (continued)
STORM RELATED COSTS
During mid-January of 1998, certain of the communities served by the Company in
Maine experienced devastating ice storms. For the three months ended March 31,
1998 the Company has recognized a loss due to service outages and increased
labor costs of approximately $705 due to the ice storms. Additionally, the
Company has incurred approximately $540 of capital expenditures to repair
damaged subscriber drops. The Company expects the loss to be isolated to the
first quarter of 1998, although the long-term financial effect of the ice storms
cannot be determined.
(2) ACQUISITIONS AND DISPOSITIONS
The Company has completed several acquisitions during the periods presented. All
of the acquisitions have been accounted for using the purchase method of
accounting, and, accordingly, the purchase price has been allocated to the
assets acquired and liabilities assumed based upon fair values at the respective
dates of acquisition. Such allocations are subject to adjustments as final
appraisal information is received by the Company. Amounts allocated to property,
plant and equipment and to intangible assets will be respectively depreciated
and amortized, prospectively from the date of acquisition based upon the
Company's useful lives and amortization periods. The following table lists the
acquisitions and the purchase price allocation for each.
<TABLE>
- -------------------------------------------------------------------------------------------------------------------------
Predecessor Owner Primary Location of Systems Date Acquired Acquisition Cost (a)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Bluegrass Cable Partners, L.P. Kentucky March 20, 1997 $10,400
Clear Cable T.V., Inc. and B&G Cable T.V. Systems, Inc. Kentucky March 31, 1997 $1,800
Milestone Communications of New York, L.P. Ohio March 31, 1997 $3,000
Triax Associates I, L.P. ("Triax I") Ohio May 30, 1997 $34,900
Phoenix Front Row Cablevision Ohio May 30, 1997 $6,900
PCI Incorporated Michigan August 29, 1997 $13,600
SRW, Inc.'s Blue Ridge Cable Systems, L.P. Tennessee and North Carolina September 3, 1997 $4,100
A-R Cable Services - ME, Inc. ("Cablevision") Maine October 31, 1997 $78,800
Harold's Home Furnishings, Inc. Pennsylvania and Maryland October 31, 1997 $1,600
TCI Cablevision of Vermont, Inc. and Westmarc
Development Joint Venture ("TCI-VT/NH") Vermont and New Hampshire December 2, 1997 $34,700
Cox Communications, Inc. ("Cox-Central Ohio") Ohio December 19, 1997 $204,200*
TVC-Sumpter Limited Partnership and North Oakland
Cablevision Partners Limited Partnership Michigan March 6, 1998 $14,300*
- ---------------
</TABLE>
(a) Acquisition cost represents the purchase price allocation between tangible
and intangible assets including certain purchase accounting adjustments as of
March 31, 1998.
* Subject to adjustment.
8
<PAGE>
FRONTIERVISION HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Amounts in Thousands
(2) ACQUISITIONS AND DISPOSITIONS (continued)
The combined purchase price of certain of these acquisitions has been allocated
to the acquired assets and liabilities as follows:
<TABLE>
--------------------------------
Acquisitions Acquisitions
for the Three for the Three
Months Ended Months Ended
March 31, 1998 (a) March 31, 1997 (a)
------------ -------------
<S> <C> <C>
Property, plant and equipment $ 3,550 $ 5,760
Franchise costs and other intangible assets 11,440 9,132
-------- --------
Subtotal 14,990 14,892
-------- --------
Net working capital deficit (50) (411)
Less - Earnest money deposits applied -- (500)
-------- --------
Total cash paid for acquisitions $ 14,940 $ 13,981
======== ========
</TABLE>
- ------------
(a) The combined purchase price includes purchase price adjustments for certain
acquisitions consummated prior to the respective periods.
The Company has reported the operating results of its acquired cable systems
from the dates of their respective acquisition. Unaudited pro forma summarized
operating results of the Company for the three months ended March 31, 1997
assuming the Triax I, Cablevision, TCI-VT/NH and Cox-Central Ohio acquisitions
(the "Acquisitions") had been consummated on January 1, 1997, are as follows:
<TABLE>
--------------------------------------
Three Months Ended March 31, 1997
--------------------------------------
Historical Pro Forma
Results Acquisitions Results
-------- -------- --------
<S> <C> <C> <C>
Revenue $ 31,555 $ 16,853 $ 48,408
Operating, selling, general and administrative expenses (17,784) (9,022) (26,806)
Depreciation and amortization (14,059) (6,885) (20,944)
-------- -------- --------
Operating income (loss) (288) 946 658
Interest and other expenses (10,530) (9,801) (20,331)
-------- -------- --------
Net loss $(10,818) $ (8,855) $(19,673)
======== ======== ========
</TABLE>
The pro forma financial information presented above has been prepared for
comparative purposes only and does not purport to be indicative of the operating
results which actually would have resulted had the Acquisitions been consummated
on the dates indicated. Furthermore, the above pro forma financial information
does not include the effect of certain acquisitions and dispositions of cable
systems because these transactions were not material on an individual or
aggregate basis.
On December 12, 1997, the Company entered into an agreement with the
shareholders of New England Cable Television of Massachusetts, Inc. ("NECMA") to
acquire all of the outstanding stock of NECMA for a price of approximately
$44,700. NECMA is a Massachusetts S-Corporation which owns cable television
assets in Massachusetts. The Company had advanced $2,000 as an earnest money
deposit related to this transaction as of March 31, 1998, and the stock purchase
was completed on April 3, 1998.
On December 19, 1997, the Company entered into an asset purchase agreement with
TCI Cablevision of Ohio, Inc. to acquire certain cable television assets in Ohio
for a cash purchase price of $10,000. This acquisition was completed on April 1,
1998.
On January 16, 1998, the Company entered into an asset purchase agreement with
Ohio Cablevision Network, Inc. to acquire certain cable television assets in
Ohio for a cash purchase price of $38,000.
9
<PAGE>
FRONTIERVISION HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Amounts in Thousands
(2) ACQUISITIONS AND DISPOSITIONS (continued)
ASSET EXCHANGE
On December 12, 1997, the Company entered into an asset exchange agreement with
Comcast Cablevision of the South to exchange certain cable television assets in
the Southeast region. This asset exchange was consummated on March 12, 1998.
(3) DEBT
The Company's debt was comprised of the following:
<TABLE>
------------------------------
March 31, December 31,
1998 1997
-------- --------
Bank Credit Facility (a) --
<S> <C> <C>
Revolving Credit Facility $ -- $ --
Term loans, due June 30, 2004, interest based on various
floating rate options (8.01% and 8.33% weighted average at March
31, 1998 and December 31, 1997, respectively), payable monthly 447,000 432,000
11% Senior Subordinated Notes due 2006 (b) 200,000 200,000
11 7/8% Senior Discount Notes due 2007 (c) 159,693 155,047
-------- --------
Total debt $806,693 $787,047
======== ========
</TABLE>
(a) Bank Credit Facility.
On December 19, 1997, the Company entered into a Second Amended and
Restated Credit Agreement (the "Amended Credit Facility") increasing
the available senior debt by $535.0 million, for a total availability
of $800.0 million. The amount available under the Amended Credit
Facility includes two term loans of $250.0 million each ("Facility A
Term Loan" and "Facility B Term Loan") and a $300.0 million revolving
credit facility ("Revolving Credit Facility"). The Facility A Term Loan
and the Revolving Credit Facility both mature on September 30, 2005.
The entire outstanding principal amount of the Revolving Credit
Facility is due on September 30, 2005, with escalating principal
payments due quarterly beginning December 31, 1998 under the Facility A
Term Loan. The Facility B Term Loan matures March 31, 2006 with 95% of
the principal being repaid in the last two quarters of the term of the
facility.
Under the terms of the Amended Credit Facility, with certain
exceptions, the Company has a mandatory prepayment obligation upon a
change of control of the Company and the sale of any of its operating
systems. Further, beginning with the year ending December 31, 2001, the
Company is required to make prepayments equal to 50% of its excess cash
flow, as defined in the Amended Credit Facility. The Company also pays
commitment fees ranging from 1/2% - 3/8% per annum on the average
unborrowed portion of the total amount available under the Amended
Credit Facility.
The Amended Credit Facility also requires the Company to maintain
compliance with various financial covenants including, but not limited
to, covenants relating to total indebtedness, debt ratios, interest
coverage ratio and fixed charges ratio. In addition, the Amended Credit
Facility has restrictions on certain partnership distributions by the
Company. As of March 31, 1998, the Company was in compliance with the
financial covenants of the Amended Credit Facility.
10
<PAGE>
FRONTIERVISION HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Amounts in Thousands
(3) DEBT (continued)
All partnership interests in the Company and all assets of the Company
and its subsidiaries are pledged as collateral for the Amended Credit
Facility.
In order to convert certain of the interest payable at variable rates
under the Senior Credit Facility to interest at fixed rates the Company
has entered into interest rate swap agreements for notional amounts
totaling $170,000 and maturing between November 15, 1999 and October 7,
2000. According to these agreements, the Company pays or receives the
difference between (1) an average fixed rate of 5.932% and (2) various
available floating rate options applied to the same $170,000 notional
amount every three months during the term of the interest rate swap
agreement. For the three-month periods ended March 31, 1998 and 1997,
the Company had recognized an increase in interest expense of
approximately $56 and $169, respectively, as a result of these interest
rate swap agreements.
On October 3, 1997, in order to convert certain of the future interest
payable at various rates under future indebtedness, the Company entered
into a forward interest rate swap agreement, commencing October 15,
1998, for a notional amount totaling $150,000, maturing on October 15,
2001. According to this agreement, the Company will pay or receive the
difference between (1) a fixed rate of 6.115% and (2) a floating rate
based on three month LIBOR applied to the same $150,000 notional amount
every three months during the term of the interest rate swap agreement.
(b) Senior Subordinated Notes
On October 7, 1996, FVOP issued, pursuant to a public offering (the
"Offering"), $200,000 aggregate principal amount of the 11% Senior
Subordinated Notes due 2006 (the "Notes"). Net proceeds from the
Offering of $192,500 were available to FVOP on October 7, 1996.
In connection with the anticipated issuance of the Notes in connection
with the Offering, FVOP entered into deferred interest rate setting
agreements to reduce FVOP's interest rate exposure in anticipation of
issuing the Notes. The cost of such agreements, amounting to $1,390,
will be recognized as a component of interest expense over the term of
the Notes.
The Notes are unsecured subordinated obligations of FVOP (co-issued by
Capital) that mature on October 15, 2006. Interest accrues at 11% per
annum beginning from the date of issuance, and is payable each April 15
and October 15, commencing April 15, 1997.
The Subordinated Notes Indenture (the "Indenture") has certain
restrictions on incurrence of indebtedness, distributions, mergers,
asset sales and changes in control of FVOP.
(c) Senior Discount Notes
On September 19, 1997, Holdings issued, pursuant to a private offering,
the Discount Notes. The Discount Notes were sold at approximately 63.1%
of the stated principal amount at maturity and provided net proceeds of
$144,750, after underwriting fees of approximately $5,250.
11
<PAGE>
FRONTIERVISION HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Amounts in Thousands
(3) DEBT (continued)
The Discount Notes are unsecured obligations of Holdings and Holdings
Capital (collectively, the "Issuers"), ranking pari passu in right of
payment to all existing and future unsecured indebtedness of the
Issuers and will mature on September 15, 2007. The discount on the
Discount Notes is being accreted using the interest method over four
years until September 15, 2001, the date at which cash interest begins
to accrue. Cash interest will accrue at a rate of 11 7/8% per annum and
will be payable each March 15 and September 15, commencing March 15,
2002.
The Discount Notes are redeemable at the option of the Issuers, in
whole or in part, at any time on or after September 15, 2001, at
redemption prices set forth in the Indenture for the Discount Notes
(the "Discount Notes Indenture"), plus any unpaid interest, if any, at
the date of the redemption. The Issuers may redeem, prior to September
15, 2001, up to 35% of the principal amount at maturity of the Discount
Notes with the net cash proceeds received from one or more public
equity offerings or strategic equity investments at a redemption prices
set forth in the Discount Notes Indenture, plus any unpaid interest, if
any, at the date of the redemption.
The Discount Notes Indenture has certain restrictions on incurrence of
indebtedness, distributions, mergers, asset sales and changes in
control of Holdings.
J.P. Morgan Investment Corporation and First Union Capital Partners, Inc.
("Equity Holders") are affiliates of the Company, owning in the aggregate, a
37.6% limited partnership interest in FVP. Affiliates of the Equity Holders
received underwriting fees of approximately $3.6 million in connection with the
issuance of the Notes and received compensation in the aggregate of
approximately $3.1 million in connection with the issuance of the Discount
Notes.
The debt of the Company matures as follows:
Year Ended December 31 --
1998 $ 1,478
1999 8,891
2000 19,805
2001 27,685
2002 35,565
Thereafter 713,269
--------
$806,693
========
(4) COMMITMENTS AND CONTINGENCIES
The Company has annual commitments under lease agreements for office space,
equipment, pole rental and land upon which certain of its towers and antennae
are constructed. Rent expense for the three-month periods ended March 31, 1998
and 1997 was $1,320 and $382, respectively.
12
<PAGE>
FRONTIERVISION HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Amounts in Thousands
(4) COMMITMENTS AND CONTINGENCIES (continued)
Estimated future noncancelable lease payments under such lease obligations
subsequent to March 31, 1998 are as follows:
Year Ended December 31 --
1998 $ 780
1999 799
2000 575
2001 354
2002 275
Thereafter 309
------
$3,092
======
In October 1992, Congress enacted the Cable Television Consumer and Competition
Act of 1992 (the "1992 Cable Act") which greatly expanded federal and local
regulation of the cable television industry. In April 1993, the Federal
Communications Commission (the "FCC") adopted comprehensive regulations,
effective September 1, 1993, governing rates charged to subscribers for basic
cable and cable programming services which allowed cable operators to justify
regulated rates in excess of the FCC benchmarks through cost of service showings
at both the franchising authority level for basic service and at the FCC level
in response to complaints on rates for cable programming services. The FCC also
adopted comprehensive and restrictive regulations allowing operators to modify
their regulated rates on a quarterly or annual basis using various methodologies
that account for the changes in the number of regulated channels, inflation, and
increases in certain external costs, such as franchise and other governmental
fees, copyright and retransmission consent fees, taxes, programming fees and
franchise related obligations. The FCC has also adopted regulations that permit
qualifying small cable operators to justify their regulated service and
equipment rates using a simplified cost-of-service formula.
As a result of such actions, the Company's basic and tier service rates and its
equipment and installation charges (the "Regulated Services") are subject to the
jurisdiction of local franchising authorities and the FCC. The Company believes
that it has complied in all material respects with the rate regulation
provisions of the federal law. However, the Company's rates for Regulated
Services are subject to review by the FCC, if a complaint has been filed, or by
the appropriate franchise authority if it is certified by the FCC to regulate
basic rates. If, as a result of the review process, a system cannot substantiate
its rates, it could be required to retroactively reduce its rates to the
appropriate benchmark and refund the excess portion of rates received. Any
refunds of the excess portion of tier service rates would be retroactive to the
date of complaint. Any refunds of the excess portion of all other Regulated
Service rates would be retroactive to one year prior to the implementation of
the rate reductions.
The Company's agreements with franchise authorities require the payment of
annual fees which approximate 3% of system franchise revenue, as defined in the
franchise. Such franchises are generally nonexclusive and are granted by local
governmental authorities for a specified term of years, generally for extended
periods of up to fifteen years.
For a more detailed discussion of the federal, state and local regulations
affecting the Company, see "Legislation and Regulation" in the Holdings 10-K.
The Company and its affiliates have contingent liabilities related to legal
proceedings and other matters arising in the ordinary course of business.
Although it is reasonably possible the Company may incur losses upon conclusion
of such matters, an estimate of any loss or range of loss cannot be made. In the
opinion of management, it is expected that amounts, if any, which may be
required to satisfy such contingencies will not be material in relation to the
accompanying consolidated financial statements.
13
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
FRONTIERVISION HOLDINGS CAPITAL CORPORATION
BALANCE SHEETS
<TABLE>
-----------------------
March 31, December 31,
1998 1997
-------- ------
(Unaudited)
ASSETS
<S> <C> <C>
Cash $100 $100
---- ----
Total assets $100 $100
==== ====
OWNER'S EQUITY
Owner's equity:
Common stock, par value $.01; 1,000 shares authorized;
100 shares issued and outstanding $ 1 $ 1
Additional paid-in capital 99 99
---- ----
Total owner's equity $100 $100
==== ====
</TABLE>
See note to accompanying balance sheet.
14
<PAGE>
FRONTIERVISION HOLDINGS CAPITAL CORPORATION
NOTE TO THE BALANCE SHEETS (Unaudited)
FrontierVision Holdings Capital Corporation, a Delaware corporation ("Holdings
Capital"), is a wholly owned subsidiary of FrontierVision Holdings, L.P.
("Holdings"), and was organized on August 22, 1997 for the sole purpose of
acting as co-issuer with Holdings of $237.7 million aggregate principal amount
at maturity of the 11 7/8% Senior Discount Notes. Holdings Capital had no
operations from September 18, 1997 through March 31, 1998.
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PART I. FINANCIAL INFORMATION
Item 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion of the financial condition and results of operations of
the Company, the description of the Company's business as well as other sections
of this Form 10-Q contain certain forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act of 1934. The Company's actual
results could differ materially from those discussed herein and its current
business plans could be altered in response to market conditions and other
factors beyond the Company's control. Important factors that could cause or
contribute to such differences or changes include those discussed under "Risk
Factors" in the Company's Post-Effective Ammendment No. 1 to Form S-4 filed
April 6, 1998 (File No. 333-36519).
INTRODUCTION AND RECENT DEVELOPMENTS
The Company's objective is to increase its subscriber base and operating cash
flow through selective acquisitions of cable television systems that can be
integrated with the Existing Systems and to enhance enterprise value through
operating improvements and revenue growth. The Company continues the process of
acquiring and integrating cable systems with its current systems and continues
to invest significant capital for technical enhancement.
The Company commenced operations in November 1995 with the acquisition of
certain cable television systems. The following table summarizes the Company's
acquisitions since inception:
<TABLE>
------------------------------------------------------------
Purchase Basic Purchase
Price(1) Subscribers Price Per
Predecessor Owner Date Acquired (in millions) Acquired(2) Subscriber
- ----------------- ------------------------------------------------------------
<S> <C> <C> <C> <C>
United Video Cablevision, Inc. (the "UVC Systems ")....... November 9, 1995 $ 120.8 87,400 $1,382
Longfellow Cable Company, Inc. (the "Longfellow Systems ") November 21, 1995 6.1 5,100 1,196
C4 Media Cable Southeast, Limited Partnership (the "C4
Systems")................................................. February 1, 1996 47.6 40,400 1,178
Americable International Maine, Inc. (the "Americable March 29, 1996 4.8 3,350 1,433
Systems ").................................................
Cox Communications (the "Cox Systems ")................... April 9, 1996 136.0 77,200 1,762
Phoenix Grassroots Cable Systems, LLC (the "Grassroots
Systems")................................................. August 29, 1996 9.3 7,400 1,257
Triax Southeast Associates, L.P. (the "Triax Systems ")... October 7, 1996 84.7 53,200 1,592
American Cable Entertainment of Kentucky-Indiana, Inc. (the
"ACE Systems").......................................... October 9, 1996 146.0 83,250 1,754
SRW, Inc.'s Penn/Ohio Cablevision, L.P. (the "Penn/Ohio
Systems ")................................................. October 31, 1996 3.8 3,225 1,178
SRW, Inc.'s Deep Creek Cable TV, L.P. (the "Deep Creek
System").................................................. December 23, 1996 3.0 2,175 1,379
Bluegrass Cable Partners, L.P. (the "Bluegrass Systems "). March 20, 1997 9.9 7,225 1,370
Clear Cable T.V., Inc. and B&G Cable T.V. Systems,
Inc. (the "Clear/B&G Systems ")........................ March 31, 1997 1.7 1,450 1,172
Milestone Communications of New York, L.P. (the "Milestone
Systems").............................................. March 31, 1997 2.8 2,125 1,318
Triax Associates I, L.P. (the "Triax I Systems ")......... May 30, 1997 34.5 20,700 1,667
Phoenix Front Row Cablevision (the "Front Row Systems ").. May 30, 1997 6.8 5,250 1,295
PCI Incorporated (the "Bedford System").................... August 29, 1997 13.5 7,750 1,742
SRW, Inc.'s Blue Ridge Cable Systems, L.P. (the "Blue Ridge
Systems").................................................. September 3, 1997 4.1 4,550 901
Harold's Home Furnishings, Inc. (the "Harold's System").... October 31, 1997 1.5 1,480 1,014
A-R Cable Services - ME, Inc. (the "Cablevision Systems").. October 31, 1997 78.2 54,300 1,440
TCI Cablevision of Vermont, Inc. and Westmarc Development
Joint Venture (the "TCI-VT/NH Systems")................ December 2, 1997 34.5 22,100 1,561
Cox Communications, Inc. (the "Cox-Central Ohio Systems").. December 19, 1997 203.0 84,400 2,405
TVC-Sumpter Linked Partnership and North Oakland
Cablevision Partners Limited Partnership (the
"Televista Systems")................................... March 6, 1998 14.2 8,100 1,753
-------- ------- ------
Total...................................................... $ 966.8 582,130 $1,661
======== ======= ======
</TABLE>
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(1) Represents the contract purchase price excluding working capital purchase
adjustments and transaction costs. (2) Includes 10,600 subscribers to systems
that were sold by the Company in 1996.
As of March 31, 1998, the Company's currently owned cable television systems
(the "Existing Systems") passed approximately 830,000 homes and served
approximately 570,500 basic subscribers. The Company has operated the Existing
Systems for a limited period of time and had no operations prior to November 9,
1995.
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On March 6, 1998, the Company consummated the acquisition of systems serving, in
the aggregate, approximately 8,100 basic subscribers in southeastern Michigan
from TVC-Sumpter Limited Partnership and North Oakland Cablevision Partners
Limited Partnership for an aggregate purchase price of $14.2 million. On March
12, 1998 the Company completed an exchange of cable television systems with
Comcast Cablevision of the South whereby the Company received cable television
systems in Tennessee (the "Comcast Systems") serving approximately 5,500
subscribers in exchange for certain of its cable television systems in Tennessee
and Virginia serving approximately 4,400 subscribers.
On April 1, 1998, the Company completed the acquisition of certain cable
television system assets in Ohio from TCI Cablevision of Ohio, Inc. for the cash
purchase price of $10.0 million. On April 3, 1998, the Company consummated the
stock purchase of all of the outstanding shares of New England Cable Television
of Massachusetts, Inc. ("NECMA") for an aggregate purchase price of
approximately $44.7 million. NECMA is a Massachusetts S-Corporation which owns
cable television assets in Massachusetts. As of May 14, 1998, the Company had
entered an additional asset purchase agreement to acquire certain cable
television systems, located in Ohio, for aggregate consideration of
approximately $38.0 million. This transaction is expected to close by the third
quarter of 1998 and is subject to customary closing conditions, and certain
regulatory approvals that are not completely within the Company's control.
See Note 2 to the financial statements for a more detailed description of the
Company's acquisitions and asset exchanges.
RESULTS OF OPERATIONS
Following is a discussion of the Company's results of operations for the three
months ended March 31, 1998 compared to the three months ended March 31, 1997.
The three month period ended March 31, 1998, is the only period in which the
Company operated all of the Existing Systems, although certain systems (the
Televista Systems and the Comcast Systems) were purchased or received in an
exchange during the period and are reflected only for that portion of the period
that such systems were owned by the Company.
The following table illustrates the Company's operating activities on a
comparative basis:
Three Months Ended March 31, 1998 Compared to
Three Months Ended March 31, 1997 (Unaudited)
<TABLE>
-----------------------------------------------------------------------
Three Months Ended Three Months Ended
March 31, 1998 (a) March 31, 1997 (a)
------------------------------ ------------------------------
% of % of
Amount Revenue Amount Revenue
In thousands
<S> <C> <C> <C> <C>
Revenue ....................... $ 53,819 100.0% $ 31,555 100.0 %
Expenses
Operating expenses ........ 27,693 51.5 16,783 53.2
Corporate expenses ........ 1,566 2.9 1,001 3.2
Depreciation and amortizati 23,641 43.9 14,059 44.5
Storm related costs (b) ... 705 1.3 -- --
--------- --------- --------- ---------
Total expenses ..... 53,605 99.6 31,843 100.9
--------- --------- --------- ---------
Operating income/(loss) ....... 214 0.4 (288) (0.9)
Interest expense, net ......... (19,922) (37.0) (10,478) (33.2)
Other expense ................. (128) (0.2) (52) (0.2)
--------- --------- --------- ---------
Net loss ...................... $ (19,836) (36.8)% $ (10,818) (34.3)%
========= ========= ========= =========
EBITDA (c) .................... $ 23,855 44.3% $ 13,771 43.6%
========= ========= ========= =========
Basic subscribers ............. 570,500 362,350
Premium units ................. 266,700 149,500
- ---------
</TABLE>
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(a) All acquisitions have been accounted for under the purchase method of
accounting and, therefore, the Company's historical results of operations
include the results of operations for each acquired system subsequent to
its respective acquisition date.
(b) For the three months ended March 31, 1998 the Company has recognized a loss
due to service outages and increased labor costs of approximately $705,000
due to mid January ice storms experienced by certain of the communities
served by the Company in Maine. Additionally, the Company has incurred
approximately $540,000 of capital expenditures to repair subscriber drops
damaged in the storms. The Company expects the loss to be isolated to the
first quarter of 1998, although the long-term financial effect of the ice
storms cannot be determined.
(c) EBITDA is defined as net income before interest, taxes, depreciation and
amortization. The Company believes that EBITDA is a meaningful measure of
performance because it is commonly used in the cable television industry to
analyze and compare cable television companies on the basis of operating
performance, leverage and liquidity. In addition, the Company's senior bank
indebtedness (the "Amended Credit Facility") and Note Indenture contain
certain covenants, compliance of which is measured by computations
substantially similar to those used in determining EBITDA. However, EBITDA
is not intended to be a performance measure that should be regarded as an
alternative to either operating income or net income as an indicator of
operating performance or to cash flows as a measure of liquidity, as
determined in accordance with generally accepted accounting principles.
Revenue increased 70.6%, or approximately $22.3 million, to approximately $53.8
million for the three months ended March 31, 1998 from approximately $31.5
million for the three months ended March 31, 1997. Operating expenses (including
storm related costs) and corporate expenses increased approximately 69.2% and
56.4%, respectively, for the three months ended March 31, 1998 from the three
months ended March 31, 1997. Decreases in the relative percentage of Operating
expenses to revenue was primarily attributable to the cost efficiencies achieved
through the integration of cable systems and increased revenue per subscriber
per month. The decrease in the relative percentage of Corporate expenses to
revenue is attributable to scale economies in the management of a larger
subscriber base.
Significant growth in revenue, operating and corporate expenses, basic
subscribers and pay units is primarily attributable to the Company's acquisition
of cable systems in a series of nine separate transactions. As its operations
base has developed, the Company has increased its focus on integration of
business operations to achieve efficiencies, significant investment in technical
plant and promotion of new and existing services to enhance revenues. The impact
of certain of these efforts resulted in an increase in EBITDA margin, which when
adjusted to exclude the storm related costs, improved from 43.6% for the three
months ended March 31, 1997 to 45.6% for the three months ended March 31, 1998.
On a same system basis, as if the Existing Systems had been owned by the Company
since January 1, 1997, revenue increased approximately 5.8% and EBITDA increased
approximately 8.0% form the three months ended March 31, 1997 to the three
months ended March 31, 1998.
During mid-January of 1998, certain of the communities served by the Company in
Maine experienced devastating ice storms. For the three months ended March 31,
1998 the Company has recognized a loss due to service outages and increased
labor costs of approximately $705,000 due these storms. Additionally, the
Company has incurred approximately $540,000 of capital expenditures to repair
subscriber drops damaged in the storms. The Company expects the loss to be
isolated to the first quarter of 1998, although the long-term financial effect
of the ice storms cannot be determined.
Basic subscribers increased approximately 57.4% from 362,350 at March 31, 1997
to 570,500 as of March 31, 1998, while pay units increased approximately 80.0%
from 149,500 to 269,200 over the twelve month period. On an annualized basis,
the Existing Systems generated basic subscriber growth of approximately 2.0%
during the first quarter of 1998, representing the initial effects of larger
scale marketing initiatives, including launches of new and repackaged
programming services, sales audit remarketing, and direct marketing through
flyer campaigns, newspaper inserts and telemarketing programs.
Depreciation and amortization increased 68.2% as a result of acquisition
activity that occurred in 1997 and 1998. Net interest expense increased to $19.9
million from $10.5 million as a result of the higher weighted average drawings
on the Company's senior bank indebtedness in addition to the accretion of the
discount on the Discount Notes for the three months ended March 31, 1998. Other
expenses for the three months ended March 31, 1998 include the retirement of
$128,000 of plant assets in connection with completed upgrade and rebuild
projects.
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LIQUIDITY AND CAPITAL RESOURCES
The cable television business generally requires substantial capital for the
construction, maintenance and expansion of the cable plant and distribution
equipment. In addition, the Company has pursued, and intends to pursue in the
future, selective acquisitions. Since its founding in 1995, the Company's cash
from equity investments, bank borrowings and other debt issued by FVOP has been
sufficient to finance the Company's acquisitions and, together with cash
generated from operating activities, also has been sufficient to meet the
Company's debt service, working capital and capital expenditure requirements.
The Company intends to continue to finance such debt service, working capital
and capital expenditure requirements in the future through a combination of cash
from operations, indebtedness and equity capital sources, and the Company
believes that it will continue to generate cash and be able to obtain financing
sufficient to meet such requirements. The ability of the Company to meet its
debt service and other obligations will depend upon the future performance of
the Company which, in turn, is subject to general economic conditions and to
financial, political, competitive, regulatory and other factors, many of which
are beyond the Company's control.
AMENDED CREDIT FACILITY
Drawings on the Amended Credit Facility, along with cash flow generated from
operations, have been sufficient to finance capital improvement projects as well
as acquisitions. The Company has adequately serviced its debt in accordance with
the provisions of the Amended Credit Facility from EBITDA of approximately $23.9
million generated by the Company for the three months ended March 31, 1998.
On December 19, 1997 FVOP amended its existing senior bank indebtedness and
entered into an $800.0 million Amended Credit Facility with The Chase Manhattan
Bank, as Administrative Agent, J.P. Morgan Securities Inc., as Syndication
Agent, CIBC Inc., as Documentation Agent, and the other lenders signatory
thereto. The Amended Credit Facility includes a $300.0 million, 7.75-year
reducing revolving credit facility (the "Revolving Credit Facility"), a $250.0
million, 7.75-year term loan (the "Facility A Term Loan") and a $250.0 million,
8.25-year term loan (the "Facility B Term Loan"). At March 31, 1998, FVOP had no
amounts outstanding under the Revolving Credit Facility, $197.0 million
outstanding under the Facility A Term Loan and $250.0 million outstanding under
the Facility B Term Loan. The weighted average interest rates at March 31, 1998
on the outstanding borrowings under the Facility A Term Loan and the Facility B
Term Loan were approximately 7.94% and 8.07%, respectively. FVOP has entered
into interest rate swap agreements to hedge the underlying LIBOR rate exposure
for $170.0 million of borrowings through November 1999 and October 2000. For the
three months ended March 31, 1998, FVOP had recognized an increase to interest
expense of approximately $56,000 as a result of these interest rate swap
agreements.
In general, the Amended Credit Facility requires FVOP to use the proceeds from
any equity or subordinated debt issuance or any cable system disposition to
reduce indebtedness for borrowings under the Amended Credit Facility and to
reduce permanently commitments thereunder, subject to certain exceptions
permitting FVOP to use such proceeds to fund certain permitted acquisitions,
provided that FVOP is otherwise in compliance with the terms of the Amended
Credit Facility.
The Amended Credit Facility is secured by a pledge of all limited and general
partnership interests in the Company and in any subsidiaries of the Company and
a first priority lien on all the tangible and intangible assets of the Company
and each of its subsidiaries. In addition, in the event of the occurrence and
continuance of an event of default under the Amended Credit Facility, the
Administrative Agent is entitled to replace the general partner of FVOP with its
designee.
Holdings, as the general partner of FVOP, guarantees the indebtedness under the
Amended Credit Facility on a limited recourse basis. The Amended Credit Facility
is also secured by a pledge of all limited and general partnership interests in
FVOP and a first priority lien on all the assets of FVOP and its subsidiaries.
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SENIOR SUBORDINATED NOTES
On October 7, 1996, FVOP issued $200.0 million aggregate principal amount of 11%
Senior Subordinated Notes due 2006 (the "FVOP Notes"). The FVOP Notes mature on
October 15, 2006 and bear interest at 11%, with interest payments due
semiannually commencing on April 15, 1997. The FVOP Notes are general unsecured
obligations of the Company and rank subordinate in right of payment to all
existing and any future senior indebtedness. In anticipation of the issuance of
the FVOP Notes, the Company entered into deferred interest rate setting
agreements to reduce the interest rate exposure related to the FVOP Notes. The
financial statement effect of these agreements will be to increase the effective
interest rate which the Company incurs over the life of the FVOP Notes.
SENIOR DISCOUNT NOTES
Holdings and FrontierVision Holdings Capital Corporation ("Holdings Capital")
were formed for the purpose of acting as co-issuers of $237.7 million aggregate
principal amount at maturity of 11 7/8% Senior Discount Notes due 2007 (the
"Discount Notes"). FrontierVision Partners, L.P. ("FVP") contributed to
Holdings, both directly and indirectly, all of the outstanding partnership
interests of FVOP prior to the issuance of the Discount Notes on September 19,
1997 and therefore, at that time, FVOP and Capital became wholly-owned
consolidated subsidiaries of Holdings. Holdings contributed the proceeds of the
Discount Notes to FVOP as a capital contribution.
CASH FLOWS FROM OPERATING ACTIVITIES
Cash flows from operating activities for the three months ended March 31, 1998
were $16.8 million compared to $8.4 million for the three months ended March 31,
1997. The increase was primarily a result of cable television system operations
acquired during the twelve months ended March 31, 1998.
CASH FLOWS FROM INVESTING ACTIVITIES
Investing cash flows were primarily used to fund capital expenditures and
acquire cable television systems. Capital expenditures for the three months
ended March 31, 1998 were approximately $9.5 million compared to approximately
$5.0 million for the three months ended March 31, 1997. Capital expenditures
primarily consisted of expenditures for the construction and expansion of the
cable plant and distribution equipment, and additional costs were incurred
related to the expansion of customer service facilities. The Company invested
approximately $14.9 million in acquisitions during the three months ended March
31, 1998 compared with approximately $14.0 million for the same period in 1997.
The Company expects to spend a total of approximately $73.0 million over the
next two years for capital expenditures with respect to the Existing Systems.
These expenditures will primarily be used for (i) installation of fiber optic
cable and microwave links which will allow for the consolidation of headends,
(ii) analog and digital converter boxes which will allow the Company to more
effectively market premium and pay-per-view services, (iii) the continued
deployment of coaxial cable to build-out the Existing Systems, (iv) headend
equipment for the digital television system and (v) the upgrade of a portion of
the Company's cable television distribution systems to, among other things,
increase bandwidth and channel capacity.
CASH FLOWS FROM FINANCING ACTIVITIES
Acquisitions during the three months ended March 31, 1998 were financed with
borrowings under the Company's senior bank indebtedness. Acquisitions during the
three months ended March 31, 1997 were financed with equity contributions from
the Company's partners and borrowings under the company's senior bank
indebtedness.
During the three months ended March 31, 1997, the Company received approximately
$14.9 million of equity contributions from its partners.
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From inception through March 31, 1998, FVP received a total of $199.4 million of
equity contributions from its partners, all of which has been invested in
Holdings and down streamed to the Company.
YEAR 2000
The Company is in the process of a comprehensive review of its computer systems
and related software to ensure systems properly recognize the year 2000 and
continue to process business information. The systems being evaluated include
all internal use software and devices and those systems and devices that manage
the distribution of cable television service to customers. Furthermore, the
Company is in the process of initiating a program of communications with its
significant suppliers and service providers to determine the readiness of third
parties and the impact on the Company if those third parties fail to remediate
their own year 2000 issues.
The Company's assessment of the impact of the year 2000 date change should be
complete by the end of fiscal year 1998. Management of the Company has not yet
determined the cost associated with its year 2000 readiness efforts and the
related potential impact on the results of operations. There can be no assurance
that costs ultimately required to be paid to ensure the Company's year 2000
readiness will not have an adverse effect on the Company's financial position.
Additionally, there can be no assurance that the systems of other companies on
which the Company relies will be converted in time or that any such failure to
convert by another company will not have an adverse effect on the Company.
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PART II. OTHER INFORMATION
Items 1 through 5.
None.
Item 6
(a) Exhibits
3.1 Amended and Restated Agreement of Limited Partnership for
FrontierVision Operating Partners, L.P. (3)
3.2 Certificate of Limited Partnership for FrontierVision Operating
Partners, L.P. (1)
3.16 Agreement of Limited Partnership of Holdings. (3)
3.17 Certificate of Limited Partnership of Holdings. (3)
3.18 Certificate of Incorporation of FrontierVision Holdings Capital
Corporation. (3)
3.19 Bylaws of FrontierVision Holdings Capital Corporation. (3)
4.1 Indenture dated as of October 7, 1996, among FrontierVision
Operating Partners, L.P., FrontierVision Capital Corporation and
Colorado National Bank, as Trustee. (2)
4.2 Indenture dated as of September 19, 1997, among FrontierVision
Holdings, L.P., FrontierVision Holdings Capital Corporation and
U.S. Bank National Association d/b/a Colorado National Bank, as
Trustee. (3)
27.6 Financial Data Schedule as of and for the three-month period
ended March 31, 1998.
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Footnote References
(1) Incorporated by reference to the exhibits to FrontierVision
Operating Partners, L.P.'s Registration Statement on Form S-1,
File No. 333-9535.
(2) Incorporated by reference to the exhibits of FrontierVision
Operating Partners, L.P.'s Quarterly Report on Form 10-Q, for the
quarter ended September 30, 1996, File No. 333-9535.
(3) Incorporated by reference to the exhibits to the Registrants'
Registration Statement on Form S-4, File No. 333-36519.
(b) Reports on Form 8-K
None.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrants have duly caused this report to be signed on their behalf by the
undersigned thereunto duly authorized.
FRONTIERVISION HOLDINGS, L.P.
By: FrontierVision Partners, L.P., its general partner,
By: FVP GP, L.P., its general partner
By: FrontierVision Inc., its general partner
By: /s/ ALBERT D. FOSBENNER
---------------------
Albert D. Fosbenner
Vice President and Treasurer
Date: May 14, 1998 By: /s/ ALBERT D. FOSBENNER
------------------------
Albert D. Fosbenner
Vice President and Treasurer
By: /s/ ALBERT D. FOSBENNER
------------------------
Albert D. Fosbenner
Vice President and Treasurer
(Principal Accounting Officer)
FRONTIERVISION HOLDINGS CAPITAL CORPORATION
Date: May 14, 1998 By: /s/ ALBERT D. FOSBENNER
------------------------
Albert D. Fosbenner
Vice President and Treasurer
By: /s/ ALBERT D. FOSBENNER
------------------------
Albert D. Fosbenner
Vice President and Treasurer
(Principal Accounting Officer)
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