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Home My WebLink About20001322.tiff Cable Corporation 28 West Grand Avenue • Montvale • New Jersey 07645-2100 • (201)930-9000 • Fax (201) 930-9232 May 8, 2000 Office of Weld County PO Box 758 Greeley, CO 80631 RE: US Cable of Coastal-Texas, L.P. 1999 Franchise Requirement Dear Sir of Madam: According to our franchise agreement, enclosed please find a copy of the US Cable of Coastal- Texas, L.P., Audited Financial Report for the year ending December 31, 1999. Thank you for the privilege of servicing your community. We look forward to continuing to provide you with the best of service. Very truly yours, US CABLE OF COASTAL-TEXAS, L.P. 0 46.41 jer- RICHARD J. FRANGIONE, Accountant RJF:cv(Co. #300) Enclosure l� . , , 2000-1322 1;P'- A-•-y _I Financial Statements and Other Financial Information US Cable of Coastal-Texas (A Limited Partnership) December 31, 1999 US Cable of Coastal-Texas (A Limited Partnership) Financial Statements and Other Financial Information December 31, 1999 Contents Report of Independent Auditors 1 Financial Statements Balance Sheets ' Statements of Operations 1 Statements of Partners' Capital 4 Statements of Cash Flows S Notes to Financial Statements 6 Other Financial Information Report of Independent Auditors on Other Financial Information 14 Subscriber Revenues by Franchise Area 15 1.1!LRNST&YOUNG ■ Ernst&Young er ■ MAR' lOIi 4 4 �' S Continental Plaza III www.op_rum 4 t( I I K kcnsal<Avenue _ Ha.kens,K k,New Jersey 1171,1 Report of Independent Auditors Partners US Cable of Coastal-Texas (A Limited Partnership) We have audited the accompanying balance sheets of US Cable of Coastal-Texas (a limited partnership) as of December 31, 1999 and 1998, and the related statements of operations, partners' capital and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of US Cable of Coastal-Texas at December 31, 1999 and 1998, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. f hi-LP March 7, 2000 1 Lrn't A Young it r Is a member of Frnst &Young Inlernatinnal, Ltrl US Cable of Coastal-Texas (A Limited Partnership) Balance Sheets December 31 1999 1998 Assets (Note 3) Property, plant and equipment (Note 2): Cable system equipment $126,410,915 $24,199,846 Converters, less allowance for unrecoverable converters of$156,000 in 1999 and $6,000 in 1998 1,935,476 252,055 Buildings and building improvements 313,587 194,070 Land 86,207 86,207 Other equipment 7,106,257 1,418,971 135,852,442 26,151,149 Less allowances for depreciation (29,855,741) (6,002,264) 105,996,701 20,148,885 Cash and cash equivalents 1,348,759 1,998,159 Accounts receivable from subscribers, less allowance of$87,000 in 1999 and $17,000 in 1998 2,945,970 379,219 Prepaid expenses 456,775 118,491 Escrow deposits and other assets 735,816 545,469 Deferred costs and intangibles (Note 2): Goodwill, less accumulated amortization of$1,997,000 in 1999 and of$1,175,000 in 1998 10,330,771 11,152,622 Franchise costs, less amortization of$3,952,000 in 1999 and $614,000 in 1998 60,649,595 1,618,275 Loan origination costs, less accumulated amortization of$245,000 in 1999 and $111,000 in 1998 1,464,916 259,548 Other deferred costs, less accumulated amortization of$1,138,000 in 1999 and $49,000 in 1998 6,893,627 109,897 $190,822,930 $ 36,330,565 Liabilities and partners' capital Liabilities: Bank loan and notes payable (Note 3) $154,000,000 $30,000,000 Accounts payable and accrued expenses 5,117,729 2,574,035 Due to affiliates (Note 4) 1,375,646 Subscriber deposits and deferred income 1,186,798 399,657 161,680,173 32,973,692 Commitments and contingencies (Notes 5 and 6) Partners' capital (Notes I and 3) 29,142,757 3,356,873 $190,822,930 $ 36,330,565 See accompanying notes. 2 US Cable of Coastal-Texas (A Limited Partnership) Statements of Operations Year ended December 31 1999 1998 Revenues: Revenues from subscribers $ 42,996,536 $ 17,049,264 Other income 884,365 343,592 43,880,901 17,392.856 Operating expenses: Pay television and satellite services 10,497,232 4,116,759 Salaries and related items 5,099,123 2,222,053 Management fees (Note 4) 1,753,764 693,564 Other selling, general and administrative 6,483,257 2,860.856 23,833,376 9,893,232 Income before depreciation and amortization and interest expense 20,047,525 7,499,624 Depreciation and amortization 29,900,370 5,593,210 Interest expense (Note 3) 9,361,271 2,282,804 Net loss $(19,214,116) $ (376,390) See accompanying notes. 3 US Cable of Coastal-Texas (A Limited Partnership) Statements of Partners' Capital Years ended December 31, 1999 and 1998 General Limited Partners Partners Total Partners' capital at January 1, 1998 $ 840,940 $ 2,280,323 $ 3,121,263 Net loss in 1998 (101,408) (274,982) (376,390) Capital contributions 164,887 447,113 612,000 Partners' capital at December 31, 1998 904,419 2,452,454 3,356,873 Net income for the period January 1, 1999 through April 19, 1999 11,996 32,600 44,596 Partners' capital at April 19, 1999 $ 916,415 $ 2,485,054 $ 3,401,469 Transfer of partnership interests $ 2,451,059 $ (2,451,059) $ - Capital contributions 10,000,000 35,000,000 45,000,000 13,367,474 35,033,995 48,401,469 Net loss for the period April 20, 1999 through December 31, 1999 (12,121,433) (7,137,279) (19,258,712) Partners' capital at December 31, 1999 $ 1,246,041 $27,896,716 $ 29,142,757 See accompanying notes. 4 US Cable of Coastal-Texas (A Limited Partnership) Statements of Cash Flows Year ended December 31 1999 1998 Operating activities Net loss $ (19,214,116) $ (376.390) Adjustments to reconcile net loss to net cash provided by operating activities: Net loss on disposition of fixed assets 35,000 Depreciation of property, plant and equipment 24,003,475 4,148,200 Amortization of deferred costs and intangibles 5,880,310 1,445,010 Provision for bad debts (517,879) 10.706 Changes in operating assets and liabilities: Accounts receivable from subscribers (2,048,872) (65.396) Prepaid expenses (338,284) 4,379 Escrow deposits and other assets (190,347) (51,906) Accounts payable and accrued expenses 2,543,694 554.837 Due to affiliates 1,375,646 Subscriber deposits and deferred income 787,141 (19,340) Net cash provided by operating activities 12,280,768 5,685,100 Investing activities Purchase of property, plant and equipment, net (12,854,473) (4,642.113) Increase in deferred costs and other assets (411,641) Acquisition of cable systems assets (132,365,631) (1,852,081) Net cash used in investing activities (145,220,104) (6,905.835) Financing activities Proceeds from bank loan 154,000,000 Repayment of bank loan (30,000,000) Increase in deferred financing costs (1,710,064) Capital contributions 10,000,000 612,000 Net cash provided by financing activities 132,289,936 612,000 Decrease in cash and cash equivalents (649,400) (608,735) Cash and cash equivalents at beginning of year 1,998,159 2,606,894 Cash and cash equivalents at end of year $ 1,348,759 $ 1,998.159 See accompanying notes. 5 US Cable of Coastal-Texas (A Limited Partnership) Notes to Financial Statements December 31, 1999 1. Organization US Cable of Coastal-Texas (the Partnership or USCCT) is a limited partnership organized in 1997 for the purpose of operating cable television systems in the areas of West Texas, New Mexico and the coastal areas of South Carolina, Georgia and Florida (the "Systems"). At December 31, 1999 and 1998, inclusive of the acquisitions described below, the Systems have developed approximately 5,500 and 2,000 miles, respectively with approximately 135,000 and 45,000 subscribers in service, respectively. On May 1, 1998, the Partnership acquired the cable television assets of Cablevision of Pembroke, Inc. for a purchase price of approximately $1,805,000 plus related costs of $47,000. This system serves subscribers in the communities of the City of Pembroke, Georgia and the Ellabel Unincorporated area of Bryan County, Georgia. The acquisition was accounted for using the purchase method of accounting and the results of operations have been included in the financial statements of the Partnership from the date of acquisition. On April 20, 1999, the Partnership acquired the cable television system assets of Fanch Cablevision of Colorado, Mark Twain Cablevision and Citation Cable Systems, Ltd. (collectively "the Fanch Acquisition") for a purchase price of approximately $128 million, plus related costs of$853,000. These systems serve subscribers in certain areas of Colorado, Minnesota, New Mexico, Missouri and Wisconsin. Immediately prior to closing, the Partnership assigned to TCI Cablevision of New Mexico, Inc. ("TCI New Mexico"), a limited partner, the right to purchase certain cable television system assets in Colorado, which were part of the Fanch Acquisition for $6.5 million, which approximated the fair value paid by the Partnership. The acquisition, net of the assets acquired by TCI New Mexico, was accounted for using the purchase method of accounting and the results of the operations have been included in the financial statements of the Partnership from the date of acquisition. On April 21, 1999, the Partnership acquired certain cable television system assets of TCI New Mexico for a purchase price of approximately $6.5 million. This system serves subscribers in certain areas of New Mexico. The acquisition was accounted for using the purchase method of accounting and the results of the operations have been included in the financial statements of the Partnership from the date of acquisition. Pursuant to the terms of a Contribution Agreement dated April 19, 1999, each of the USCCT partners, excluding Liberty Lake, Inc. contributed all of their USCCT partnership interests to US Cable Holdings, L.P., a newly formed affiliated entity, in 6 US Cable of Coastal-Texas (A Limited Partnership) Notes to Financial Statements (continued) 1. Organization (continued) exchange for partnership interests therein, and Liberty Lake, Inc. contributed its USCCT partnership interest to TCI New Mexico, an affiliate of Liberty Lake. Also, under the terms of the Contribution Agreement, on April 21, 1999, US Cable Holdings, L.P. contributed $10 million in cash to the Partnership and TCI New Mexico contributed certain cable television assets valued at $37.2 million in exchange for an additional 36% limited interest in the Partnership and $2.2 million in cash. These systems serve subscribers in certain areas of New Mexico. The acquisition was accounted for using the purchase method of accounting and the results of the operations have been included in the financial statements of the Partnership from the date of acquisition. Accordingly, under the terms of the third amended and restated partnership agreement subsequent to April 20, 1999, US Cable Holdings, L.P. owns a 62.94% general interest in the Partnership and TCI New Mexico owns a 37.06% limited interest in the Partnership. Prior to April 21, 1999, the Partnership interests were as follows: General Limited US Cable of Lake Forest, Inc. 26.9423% Stephen E. Myers 44.7248% Michael C. Anderson 5.0973 James D. Pearson 1.1498 Lake Cable Investment Corporation 1.2858 Liberty Lake, Inc. 1.0000 Lake Capital Corp. 19.8000 2. Significant Accounting Policies Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is provided as follows: Assets Depreciation Method Estimated Useful Life Cable system equipment Principally straight-line 5 to 8 years Cable system equipment Principally acquired 200% declining balance 5 to 7 years Converters 200% declining balance 7 years Building and building 20 years or remaining life improvements 150% declining balance of building Other equipment 200%declining balance 5 to 7 years 7 US Cable of Coastal-Texas (A Limited Partnership) Notes to Financial Statements (continued) 2. Significant Accounting Policies (continued) Profit and Loss Distributions Profit and loss distributions are made under the terms of the Partnership agreement and are generally allocated to the Partners in accordance with their respective Partnership interests (see Note 1). Deferred Costs and Intangibles Deferred costs and intangibles include costs incurred to obtain franchises, costs of acquiring long-term financing, costs of covenants not to compete, the value of a discounted programming contract and goodwill, including $62 million of franchise costs and $8 million present value assigned to discounted programming contracts related to the 1999 Fanch and TCI New Mexico acquisitions and $421,000 of goodwill related to the 1998 Pembroke acquisition (see Note 1). All deferred costs are amortized on the straight-line method generally as follows: Assets Period of Amortization Franchise costs Remaining lives of the franchises Loan origination costs Remaining term of the loan Covenant not to compete costs 5 years Programming contract 5 years Goodwill 15 years Franchise Fees The Partnership records franchise fees collected from subscribers as a liability. Income Taxes Income taxes are not provided because the income or loss of the Partnership is to be reported on the tax returns of the Partners. Cash Equivalents Cash equivalents represent short-term investments which mature within ninety days from date of investment. The carrying value of cash equivalents approximates fair value. 8 US Cable of Coastal-Texas (A Limited Partnership) Notes to Financial Statements (continued) 2. Significant Accounting Policies (continued) Management's Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Basis of Presentation In accordance with industry practice, the Company does not prepare a classified balance sheet and, accordingly, there is no separation of current assets and liabilities. Certain amounts in the 1998 financial statements have been reclassified to conform with the 1999 presentation. 3. Bank Loan and Notes Payable On March 31, 1999, the Partnership entered into a $165 million credit agreement with several banks which provides for a $125 million term loan and a $40 million revolving credit facility. Proceeds of the loan were used to fully repay the Partnership's existing $30 million credit facility and fund the Fanch and TCI New Mexico acquisitions (see Note 1). Commencing March 31, 2000, principal becomes payable in increasing quarterly installments through December 31, 2007. The Partnership may also be required to make an annual excess cash flow payment, as defined. The loan bears interest payable quarterly, based upon an interest rate option selected by the Partnership and adjusted based upon the results of a certain financial ratio. The rate in effect at December 31, 1999 and 1998 was 8.60% and 7.08%, respectively. The Partnership is required to pay a commitment fee up to %2% on the unused portion of the revolving credit facility, based upon the results of a certain financial ratio. The terms of the agreement include, in addition to other requirements, that the Partnership maintain compliance with certain financial ratios and limit capital expenditures and lease payments. 9 US Cable of Coastal-Texas (A Limited Partnership) Notes to Financial Statements (continued) 3. Bank Loan and Notes Payable (continued) The loan is collateralized by all of the assets of the Partnership, the stock of certain General and Limited partners, all General and Limited Partnership interests and the assignment of certain contracts of the Partnership. As of December 31, 1999, maturities of long-term debt are as follows: 2000 $ 3,787,500 2001 7,575,000 2002 10,625,000 2003 14,186,000 2004 23,100,000 Thereafter 94,726,500 Interest paid during 1999 and 1998 totaled $8,864,000 and $2,293,000, respectively. During 1999, the Partnership entered into interest rate swap agreements to reduce the impact of changes in interest rates on a portion of its floating rate bank loan payable. These agreements effectively fix the Partnership's interest rate on the principal balances noted below to the respective rates plus the adjustment based on the results of a certain financial ratio (2.5% at December 31, 1999), as previously discussed. The differential to be paid or received is accrued as interest rates change and recognized as an adjustment to interest expense related to the debt. The related amount payable to or receivable from counterparties is included in accounts payable and accrued expenses or escrow deposits and other assets, respectively. The fair values of the swap agreements are not recognized in the financial statements (see Note 8). The interest rate swap agreements in effect during 1999 were as follows: Notional Principal LIBOR Effective Date Amount Rate Expiration Date July 22, 1999 $20 million 5.87 July 22,2004 July 22, 1999 $20 million 5.86 July 22, 2004 November 24, 1999 $40 million 6.19 November 24, 2004 The Partnership is exposed to credit loss in the event of nonperformance by the other parties to these agreements. However, the Partnership does not anticipate any such nonperformance. 10 US Cable of Coastal-Texas (A Limited Partnership) Notes to Financial Statements (continued) 4. Related Parties US Cable Corporation, an affiliate of certain General and Limited Partners, has been engaged to manage the operations of the Partnership for a monthly fee equal to 4% of the Partnership's gross subscriber receipts. Payment of such fees is subordinated to payment of principal and interest on the credit agreement discussed in Note 3. Unpaid management fees of approximately $4,000 and $2,400 are included in accounts payable and accrued expenses at December 31, 1999 and 1998, respectively. Commencing April 20, 1999, Satellite Services, Inc., an affiliate, has been engaged to supply the Partnership with a majority of the pay television and satellite service programming shown within the cable television system. Included in 1999 pay television and satellite services expense is $7.8 million for the purchase of such programming. Included in due to affiliates at December 31, 1999 are unpaid fees of$960,000. Included in escrow deposits and other assets at December 31, 1998 is $383,000 of costs paid on behalf of an affiliate relating to a then pending acquisition. 5. Franchise Agreements Under various franchise agreements with local municipalities, the Partnership has non- exclusive rights principally for 15 years to operate cable television systems, generally renewable for periods ranging from 5 to 15 years, which, in most cases, are at the option of the municipality. The terms of the agreements currently provide for a majority of the municipalities to receive a franchise fee of between 2% and 5% of gross subscriber revenues. At the end of the original franchise period, certain municipalities have the option of purchasing the respective portion of the cable television system for the fair market value as determined by arbitration. Also, under the terms of certain agreements the Partnership may be required to make plant upgrades during the term of the agreement. Operations of the Partnership are subject to the provisions of the Cable Television Consumer Protection and Competition Act of 1992 and the Telecommunications Act of 1996 which include, among other requirements, certain operating standards and rate determinations. II US Cable of Coastal-Texas (A Limited Partnership) Notes to Financial Statements (continued) 6. Commitments The Partnership leases office and warehouse space under noncancelable operating leases. Future minimum rental commitments on such leases having terms in excess of one year, are as follows: 2000 $373,000 2001 336,000 2002 257,000 2003 164,000 2004 134,000 Thereafter 414,000 In addition, the Partnership has entered into various lease agreements for the use of utility poles within the franchise areas. Such agreements are for various periods and are generally renewable. Future rental commitments under these agreements, based on the franchise areas awarded at December 31, 1999, are estimated at $758,000 per year. Rental expense for all operating leases was as follows: Pole Rental Leases Total Year ended December 31: 1998 $202,000 $130,000 $332,000 1999 569,000 348,000 917,000 7. Employee Benefit Plan The Partnership participates in a multi-employer defined contribution plan that qualifies as a deferred salary arrangement under Section 401(a) of the Internal Revenue Code. All full-time employees meeting minimum service requirements are eligible to participate and may contribute pre-tax earnings of 15% in 1999 and 18% in 1998, subject to certain Internal Revenue Code restrictions. Effective January 1, 1999, the Partnership matches 50% of each employee's contribution up to a maximum of 3% of that employee's pre-tax income. In 1998, the Partnership matched 50% of each employee's contribution up to an annual maximum of $500 per employee. Total Partnership contributions for the years ended December 31, 1999 and 1998 were $33,000 and $16,000, respectively, and are included in salaries and related items. 8. Fair Value of Financial Instruments The Partnership's financial instruments at December 31, 1999 and 1998 are comprised of cash equivalents, bank loans payable and interest rate swap agreements. The carrying 12 US Cable of Coastal-Texas (A Limited Partnership) Notes to Financial Statements (continued) 8. Fair Value of Financial Instruments (continued) value of cash equivalents and bank loans payable approximates fair value. The carrying value and fair value of interest rate swaps were ($28,000) and $1.6 million respectively, at December 31, 1999. The fair value of interest rate swaps are based on current settlement value. 9. Impact of Year 2000 (Unaudited) The Partnership completed all Year 2000 readiness procedures during 1999 and has experienced no significant problems. Costs related to the Year 2000 project were not significant and the Partnership does not believe there is continued material exposure related to the Year 2000 problem. 13 Other Financial Information JERNS QC OUNG ■ Ernsl &Young UP ■ Phnnc I21 i I ; 1095 Continental Plaza III www_iw-�u n 4 3 3 I lac kenszck Avenue I lackensack,New linty(1761 Report of Independent Auditors on Other Financial Information Partners US Cable of Coastal-Texas (A Limited Partnership) Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of Subscriber Revenues by Franchise Area is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as whole. �iilnwo f y0171-LP March 7, 2000 hinsf R 14 `In I V Is a member A Ernst&Young International, I.td_ US Cable of Coastal-Texas (A Limited Partnership) Subscriber Revenues by Franchise Area Year ended December 1999 1998 Awendaw, SC $ 155,306 $ 147.346 Alden/Waseca, MN 53,263 Alpine, TX 826,687 799.530 Artesia, NM 844,872 Ault, CO 74,922 Avon, MN 144,650 Bailey, CO 257,712 Baldwin Township, MN 56,179 Bay City and Hager City, WI 52,955 Bay Club, SC 10,679 12,507 Becker, MN 153,284 Bethel, MN 21,733 Blue Hill Township, MN 11,534 Bohicket Marina-Seabrook, SC 40,007 36,764 Bradford Township, MN 34,121 Braham, MN 84,416 Brewster, MN 45,029 Bryon County, GA 239,594 125.197 Cambridge, MN 408,328 Camden County, GA 278,393 287.448 Carlsbad, NM 2,035,717 Cedar, MN 392,215 Ceylon, MN 42,504 Charma, MN 76,933 Charleston County, SC 172,596 166.426 Chisago, MN 19,513 City of Espanola, NM 466,310 City of Hamburg/Norwood/Young, MN 214,382 City of Morgan, MN 66,547 City of Onamia, MN 53,528 Claremont, MN 40,645 Clarkfield, MN 79,431 Clarks Grove, MN 49,013 Clear Creek County, CO 29,939 Clear Creek-Greystone, CO 164,607 Clear Lake, MN 20,986 Clearwater, MN 48,217 Cold Spring/Rich/Rock, MN 529,717 15 US Cable of Coastal-Texas (A Limited Partnership) Subscriber Revenues by Franchise Area (continued) Year ended December 1999 1998 Columbus Township, MN $ 120,338 Comstock, TX 22,145 $ 18.898 Cripple Creek, CO 99,940 Darien, GA 189,610 182.378 Dataw Island, SC 186,694 154,113 Denver City, TX 615,472 602.775 Dexter, NM 115,949 98.219 Dixon, NM 44,485 Dunnell, MN 16,737 East Ridge, SC 16,013 19.264 Eaton, CO 169,528 Eddy County, NM 484,307 Eden Valley, MN 57,913 Edina, MO 103,478 Edisto Beach, SC 553,209 510,119 Ellendale, MN 52,201 Ellsworth, WI 177,447 Espanola, NM 127,437 Eunice, NM 206,799 Farber, MO 39,357 Foley, MN 93,111 Folly Beach, SC 381,509 342.486 Forest Lake Township, MN 369,597 Forest Lake and New Scandia, MN 472,346 Foreston, MN 20,103 Ft. Stockton, TX 1,149,883 1,106,287 Freeborn, MN 25,105 Freeport, MN 45,029 Fripp Island, SC 448,532 417,611 Geneva, MN 39,583 Ghent, MN 32,542 Gilcrest, CO 52,090 Glenville, MN 51,138 Granada, MN 26,168 Hagerman,NM 93,804 79,574 Harbor Island, SC 113,467 105,536 Harris, MN 22,913 Hartland, MN 26,965 Hendricks, MN 56,585 16 US Cable of Coastal-Texas (A Limited Partnership) Subscriber Revenues by Franchise Area (continued) Year ended December 1999 1998 Heron Lake, MN 5 64,688 Hobbs, NM 2,375,237 Holdingford, MN 57,913 Hollandale/MAP Isl., MN 25,902 Hollywood, SC 179,972 $ 154.892 Howard Lake, MN 93,777 Hudson, CO 36,367 Hunting Island, SC 5,315 6,616 Iraan, TX 142,064 147.578 Isanti Estates, MN 10,789 Isanti, MN 134,386 JAL, NM 158,817 James Island-City of Chas., SC 1,010 James Island- City of Chas., SC 119,665 109.212 Jefferson County, CO 3,281 Jekyll Island, GA 344,737 326,489 Johns Island, SC 562,092 532,573 Johnstown, CO 208,902 Jonesburg, MO 45,782 Keenesburg, CO 40,742 Kersey, CO 76,289 Kiawah, SC 1,028,380 961,586 Kimball, MN 38,255 Kings Bay, GA 119,374 Lady's Island, SC 1,509,324 1,313,190 Lajitas, TX 41,575 31,486 Larimer County, CO 1,445,779 Lea County, NM 350,463 Lecenter, MN 136,813 Livonia Township, MN 92,101 Lonsdale, MN 72,921 Loving, NM 80,531 Lynd, MN 28,293 Madison, MO 46,050 Mapleton, MN 131,100 Marine St. Croix, MN 47,750 Martins Creek, SC 19,726 21,074 May Township, MN 33,856 17 US Cable of Coastal-Texas (A Limited Partnership) Subscriber Revenues by Franchise Area (continued) Year ended December 1999 1998 Mazeepa, MN $ 56,008 McCamey, TX 274,100 $ 272,424 McIntosh County, GA 157,367 152,262 Medford, MN 63,491 Meggettown, SC 34,760 31,909 Megget and Young Island, SC 130,333 121,909 Milaca, MN 165,433 Milliken, CO 97,480 Milroy, MN 22,846 Minneota, MN 138,937 Montgomery City, MO 478,838 Mora, MN 225,897 Mount Pleasant, SC 341,803 253,630 New Richland, MN 105,333 North Branch, MN 252,209 North Cove, SC 35,975 37,141 Northrop, MN 19,393 Ogilvie, MN 26,017 Okabena, MN 17,534 Palmer Township, MN 66,547 Paris, MO 134,535 Peirz, MN 105,598 Pembroke, SC 186,344 91,021 Pensaco, NM 49,457 Perry, MO 58,633 Pierce, CO 48,123 Pine City Township, MN 26,217 Pine City, MN 197,955 Plainview/Elgin, MN 309,238 Platteville, CO 76,015 Pokegema, MN 56,474 Porter, MN 17,268 Princeton, MN 312,533 Rankin, TX 111,562 108,017 Ravenel, SC 111,800 108,528 Renville, MN 102,276 Rio Arriba County-Espanola,NM 662,307 18 US Cable of Coastal-Texas (A Limited Partnership) Subscriber Revenues by Franchise Area (continued) Year ended December 1999 1998 Rockville Town, SC 5 9,270 $ 8,112 Round Lake, MN 45,561 Royalton, MN 67,078 Rush City, MN 109,844 Rush Lake, MN 20,848 Russel, MN 36,130 Sacred Heart, MN 47,154 San Juan Pueblo, MN 48,672 Sanderson, TX 106,966 96,502 Santa Clara Pueblo, NM 56,522 Seabrook, SC 571,032 526,026 Seagraves, TX 274,100 257,673 Seminoe, TX 783,233 726,389 Shelbina, MO 201,736 Skidaway, GA 1,187,431 L149,439 South Harbor, GA 12,405 11,732 St. Augusta, MN 31,480 St. Clair, MN 71,062 St. Frances, MN 151,974 St. Joseph/St. Cloud, MN 285,712 St. Wendel, MN 64,278 Stanford Township, MN 6,799 Storden, MN 25,371 St. Marys, GA 1,525,165 1,416,708 St. Stephen, MN 50,341 Tara, FL. 164,446 154,345 Taunton, MN 17,003 Tierra, NM 9,682 Tybee-City, GA 779,043 732,710 Tybee-Chatham County, GA 44,002 43,520 Van Horn, TX 353,071 326,026 Wabasha, MN 775,351 Wanaringo, MN 59,459 Waterville/Elysian, MN 204,688 Watkins, MN 58,975 Weld County, CO 17,637 Wellington, CO 130,153 19 US Cable of Coastal-Texas (A Limited Partnership) Subscriber Revenues by Franchise Area (continued) Year ended December 1999 1998 West Odessa, TX $ 840,476 $ 806,772 Westwoods, CO 1,195,862 Wild Dunes, SC 676,748 622,220 Winfield, MO 180,719 Woodland Park, CO 651,865 Wyoming Township, MN 151,089 Wyoming, MN 170,602 Yemassee-Beaufort County, SC 2,795 3,399 Yemassee-City (Beaufort Co.), SC 72,764 77,317 Yemassee-City (Jonesville), SC 53,469 52,972 Yemassee-County (Hampton Co.), SC 28,698 25,530 Yemassee-Jasper County, SC 19,657 17,857 Zimmerman, MN 145,469 $42,996,536 $17,049,264 20 Hello