UNAUDITED PRO FORMA FINANCIAL DATA
The unaudited pro forma financial data presented gives effect to the
completed acquisitions of Diamond Cable Communications in March 1999, Cablecom
Group in March 2000 and CWC ConsumerCo in May 2000. The pro forma financial data
is based on NTL's historical financial statements and the historical financial
statements of Diamond, Cablecom and CWC ConsumerCo. Certain amounts in these
historical financial statements have been reclassified to conform to NTL's
presentation. The pro forma financial data also gives effect to the issue of new
NTL preferred stock in March 2000 to France Telecom and certain commercial banks
for an aggregate subscription price of $1.85 billion used to fund, in part,
NTL's acquisition of Cablecom, and to the issuance of common stock and preferred
stock in May 2000 to France Telecom for an aggregate of pounds 2.8 billion used
to fund, in part, NTL's acquisition of CWC ConsumerCo.
The Diamond, Cablecom and CWC ConsumerCo acquisitions have been accounted
for using the purchase method of accounting, in which the assets acquired and
liabilities assumed have been recorded at their estimated fair values. NTL is
unaware of events other than those disclosed in the unaudited pro forma notes
that would require a material change to the preliminary purchase price
allocation. However, a final determination of necessary purchase accounting
adjustments for the Cablecom and CWC ConsumerCo acquisitions will be made upon
the completion of studies to be undertaken to determine the fair value of
certain assets and liabilities, including intangible assets. The actual
financial position and results of operations will differ, perhaps significantly,
from the unaudited pro forma amounts reflected because of a variety of factors,
including access to additional information, changes in value not currently
identified and changes in operating results between the dates of the unaudited
pro forma financial data and the actual acquisitions dates.
The pro forma financial data does not give effect to the elimination of
transactions between NTL, Cablecom and CWC ConsumerCo, which are not material.
The unaudited pro forma condensed combined statements of operations for the
three months ended March 31, 2000 and for the year ended December 31, 1999 give
effect to the acquisitions of Diamond, Cablecom and CWC ConsumerCo and issuance
of common stock and preferred stock as if they had been consummated on January
1, 1999. The unaudited pro forma balance sheet at March 31, 2000 gives effect to
the acquisition of CWC ConsumerCo and the May 2000 issuance of common stock and
preferred stock as if they occurred on March 31, 2000.
The pro forma adjustments are based upon available information and
assumptions that NTL believes were reasonable at the time made. The unaudited
pro forma financial data does not purport to present NTL's financial position or
results of operations had the acquisitions occurred on the dates specified, nor
are they necessarily indicative of the financial position or results of
operations that may be achieved in the future. The unaudited pro forma condensed
combined statements of operations do not reflect any adjustments for cost
savings that NTL expects to realize. NTL may incur integration related expenses
not reflected in the pro forma financial information as a result of the
elimination of duplicates facilities, operational realignment and related
workforce reductions. Such costs would generally be recognized as a liability
assumed as of the respective acquisition dates resulting in additional goodwill
if they relate to facilities or workforce previously aligned with Cablecom or
CWC ConsumerCo, and would be expensed if they relate to facilities or workforce
previously aligned with NTL. The assessment of integration related expenses is
ongoing. The pro forma adjustments reflecting the acquisitions are based upon
the assumptions set forth in the notes to the pro forma financial data. No
assurances can be made as to the amount of cost savings or revenue enhancements,
if any, that may be realized.
<PAGE>
NTL Incorporated
Pro Forma Condensed Combined Statement of Operations
(Unaudited)
For the Three Months Ended March 31, 2000
(In millions, except per share data)
<TABLE>
<CAPTION>
CWC
NTL Cablecom ConsumerCo Pro
(Historical) (Historical) (Historical) Adjustments Forma
------------ ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
REVENUES $ 490.9 $ 107.1 $ 289.7 $ 887.7
COSTS AND EXPENSES
Operating expenses 240.9 51.1 113.3 405.3
Selling, general and administrative expens 181.3 23.8 106.1 311.2
Corporate expenses 10.2 - - 10.2
Depreciation and amortization 249.6 24.3 118.9 $257.0 D 649.8
------------ ----------- ----------- ----------- ----------
682.0 99.2 338.3 257.0 1,376.5
------------ ----------- ----------- ----------- ----------
Operating income (loss) (191.1) 7.9 (48.6) (257.0) (488.8)
OTHER INCOME (EXPENSE)
Interest and other income, net (5.9) (0.2) 1.3 0.5 F (4.3)
Interest expense (205.9) (3.0) (82.3) (32.4) E (323.6)
------------ ---------- ---------- ---------- ---------
Income (loss) before income taxes (402.9) 4.7 (129.6) (288.9) (816.7)
Income tax benefit (provision) 5.2 (2.4) (17.3) - (14.5)
------------ ---------- ---------- ---------- ---------
Net income (loss) (397.7) 2.3 (146.9) (288.9) (831.2)
Preferred stock dividend (18.9) - - (49.9) G (68.8)
------------ --------- ----------- ---------- -----------
Net income (loss) available to common sharehlders $ (416.6) $ 2.3 $ (146.9) $(338.8) $ (900.0)
============ =========== ============ ========== ===========
Net (loss) per common share - basic and fully diluted $ (3.02) $ (4.04)
============ ===========
Weighted average shares outstanding 137.9 84.9 222.8
=========== ========== ===========
</TABLE>
<PAGE>
NTL Incorporated
Pro Forma Condensed Combined Statement of Operations
(Unaudited)
For the Year Ended December 31, 1999
(In millions, except per share data)
<TABLE>
<CAPTION>
CWC
NTL Diamond Cablecom ConsumerCo Pro
(Historical) (Historical) (Historical) (Historical) Adjustments Forma
----------- ------------ ------------ ------------ ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
REVENUES $1,584.1 $ 28.8 $380.1 $1,122.5 $ 3,115.5
COSTS AND EXPENSES
Operating expenses 799.8 10.0 134.0 424.1 1,367.9
Selling, general and administrative expenses 573.4 12.4 104.0 459.4 1,149.2
Franchise fees 16.5 - - - 16.5
Corporate expenses 29.4 - - - 29.4
Nonrecurring charges 16.2 13.9 - - $ (13.9) 16.2
Depreciation and amortization 791.3 15.0 102.9 389.5 1,061.4 D 2,360.1
---------- ------- -------- --------- ---------- ----------
2,226.6 51.3 340.9 1,273.0 1,047.5 4,939.3
---------- ------- -------- --------- ---------- ----------
Operating income (loss) (642.5) (22.5) 39.2 (150.5) (1,047.5) (1,823.8)
OTHER INCOME (EXPENSE)
Interest and other income, net 555.2 (38.4) 2.7 9.7 2.2 F 531.4
Interest expense (680.7) (25.6) (21.7) (294.5) (121.5)E (1,144.0)
---------- ------- ------- ---------- ----------- ---------
Income(loss)before income taxes and extraordinary item (768.0) (86.5) 20.2 (435.3) (1,166.8) (2,436.4)
Income tax benefit (provision) 35.3 - (11.7) - - 23.6
---------- ------- ------- ---------- ----------- ---------
Income (loss) before extraordinary item (732.7) (86.5) 8.5 (435.3) (1,166.8) (2,412.8)
Loss from early extinguishment of debt (3.0) - - - - (3.0)
--------- ------- ------- ---------- ----------- ---------
Net income (loss) (735.7) (86.5) 8.5 (435.3) (1,166.8) (2,415.8)
Preferred stock dividend (73.7) - - - (196.1)G (269.8)
--------- ------- ------- ---------- ------------ ---------
Net income (loss) available to common shareholders $ (809.4) $ (86.5) $ 8.5 $ (435.3) $ (1,362.9) $(2,685.6)
========= ======== ======= ========== ============= =========
Net (loss) per common share - basic and fully diluted $ (6.78) $ (13.15)
========= =========
Weighted average shares outstanding 119.4 84.9 204.3
========= ============ =========
</TABLE>
<PAGE>
NTL Incorporated
Pro Forma Condensed Combined Balance Sheet
(Unaudited)
March 31, 2000
(in millions)
<TABLE>
<CAPTION>
CWC
NTL ConsumerCo Pro
(Historical) (Historical) Adjustments Forma
----------- ------------ ----------- ---------
<S> <C> <C> <C> <C>
ASSETS:
Current assets:
Cash, cash equivalents and marketable securities $ 2,390.6 $ 138.8 $ 68.2 A,B,C $ 2,597.6
Other current assets 595.5 265.0 - 860.5
-------- --------- -------------- ---------
Total current assets 2,986.1 403.8 68.2 3,458.1
Fixed assets, net 6,680.1 5,061.1 1,338.2 A 13,079.4
Intangible assets, net 5,502.3 2,745.7 6,829.4 A 15,077.4
Other assets, net 422.7 - - 422.7
---------- -------- --------------- ----------
Total assets $ 15,591.2 $ 8,210.6 $ 8,235.8 $ 32,037.6
========== ======== =============== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Other current liabilities $ 1,206.0 $ 1,271.9 $ - $ 2,477.9
Current portion of long-term debt and capital leases 6.1 - - 6.1
-------- --------- -------------- ----------
Total current liabilities 1,212.1 1,271.9 - 2,484.0
Long-term debt 10,513.1 4,909.0 139.2 A,C 15,561.3
Minority interests 14.6 23.9 - 38.5
Deferred income taxes 195.5 26.8 401.5 A 623.8
Redeemable preferred stock 1,997.6 - - 1,997.6
Shareholders' equity:
Common & pref. stock and additional paid-in capital 4,155.8 - 9,674.1 A,B 13,829.9
Acquired company stock, apic and R/E - 1,979.0 (1,979.0) A -
Other comprehensive (loss) (112.4) - - (112.4)
Deficit (2,385.1) - - (2,385.1)
---------- ---------- --------------- ----------
1,658.3 1,979.0 7,695.1 11,332.4
---------- ---------- --------------- ----------
Total liabilities and shareholders' equity $ 15,591.2 $ 8,210.6 $ 8,235.8 $ 32,037.6
========== ========== =============== ==========
</TABLE>
<PAGE>
NTL Incorporated
Notes to the Pro Forma Financial Data
(In millions, except per share data)
A. Purchase Price and Allocation of Purchase Price:
CWC ConsumerCo
Shares of NTL common stock issued 84.9
NTL common stock price $ 64.60
----------
Subtotal 5,484.5
Cash consideration 4,260.6
Debt repayment 3,416.0
----------
Purchase price 13,161.1
Less: net assets at March 31, 2000, after debt repayment 5,395.0
----------
Excess of purchase price over net assets acquired $ 7,766.1
==========
Preliminary allocation to:
Fixed assets $ 1,338.2
Deferred tax liability (401.5)
Intangible assets 6,829.4
----------
$ 7,766.1
==========
Cablecom
Proceeds from issuance of redeemable preferred stock $ 1,850.0
Bridge financing (CHF 2.7 billion at March 28, 2000) 1,630.5
Cash on hand 22.1
----------
Purchase price (CHF 5.8 billion at March 28, 2000) 3,502.6
Less: net tangible assets at March 28, 2000 781.1
----------
Excess of purchase price over net tangible assets $ 2,721.5
==========
Preliminary allocation to:
Fixed assets $ 348.3
Deferred tax liability (76.6)
Intangible assets 2,449.8
----------
$ 2,721.5
==========
B. Common and preferred stock issued to France Telecom:
Common stock (42.3 million shares) $ 2,327.6
5% preferred stock (2.0 million shares) 1,862.0
----------
$ 4,189.6
==========
C. Proceeds from bank loan for CWC ConsumerCo acquisition:
2,376,000,000 pound bank note $ 3,555.2
Less: repayment of CWC ConsumerCo debt (3,416.0)
----------
Excess cash proceeds $ 139.2
==========
CWC
D. Depreciation and amortization: Diamond Cablecom ConsumerCo
For the year ended December 31, 1999
Fixed assets (15 years) $ 1.0 $ 23.2 $ 89.2
Intangibles (10 years) 26.0 245.0 683.0
Historical amortization (2.0) (4.0) -
--------- -------- ------
$ 25.0 $ 264.2 $772.2
========= ======== ======
For the three months ended March 31, 2000
Fixed assets (15 years) $ 5.8 $ 22.3
Intangibles (10 years) 61.2 170.7
Historical amortization (3.0) -
-------- ------
$ 64.0 $193.0
======== ======
<PAGE>
CWC
E. Interest expense: Cablecom ConsumerCo
For the year ended December 31, 1999
Reduction of interest expense for debt not assumed $ 21.7 $ 235.7
Interest on bridge financing (85.6) -
Interest on bank financing - (293.3)
-------- -------
$ (63.9) $ (57.6)
======== =======
For the three months ended March 31, 2000
Reduction of interest expense for debt not assumed $ 3.0 $ 58.9
Interest on bridge financing (21.0) -
Interest on bank financing - (73.3)
-------- -------
$ (18.0) $ (14.4)
======== =======
F. Interest income
For the year ended December 31, 1999
Reduction of interest income on cash on hand used $ (1.1) $ (3.5)
Interest income on excess cash from bank financing - 6.8
-------- --------
$ (1.1) $ 3.3
======== ========
For the three months ended March 31, 2000
Reduction of interest income on cash on hand used $ (0.3) $ (0.9)
Interest income on excess cash from bank financing - 1.7
-------- --------
$ (0.3) $ 0.8
======== ========
G. Preferred stock dividends
For the year ended December 31, 1999
5% issued to France Telecom $ - $ (101.9)
5% redeemable preferred (94.2) -
-------- --------
$ (94.2) $ (101.9)
======== ========
For the three months ended March 31, 2000
5% issued to France Telecom $ - $ (25.9)
5% redeemable preferred (24.0) -
-------- --------
$ (24.0) $ (25.9)
======== ========
