SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) January 13, 1998
Diamond Cable Communications Plc
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(Exact name of Registrant as Specified in Charter)
England 33-83740 N/A
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
Diamond Plaza, Daleside Road, Nottingham NG2 3GG, England. (N/A)
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(Address of principal executive offices) (Zip code)
44-115-912-2217
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(Registrant's telephone number, including area code)
(N/A)
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(Former Name or Former Address, if Changed Since Last Report)
ITEM 1. CHANGES IN CONTROL OF REGISTRANT.
Not applicable.
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
Not applicable.
ITEM 3. BANKRUPTCY OR RECEIVERSHIP.
Not applicable.
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.
Not applicable.
ITEM 5. OTHER EVENTS.
On January 13, 1998, Diamond Cable Communications Plc issued to the
public a press release announcing fourth quarter results and other
developments.
ITEM 6. RESIGNATIONS OF REGISTRANT'S DIRECTORS.
Not applicable.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
Not applicable.
ITEM 8. CHANGE IN FISCAL YEAR.
Not applicable.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Diamond Cable Communications Plc
(Registrant)
By /s/Nicholas Millard
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Nicholas Millard
Chief Financial Officer
Dated: January 13, 1998
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INDEX TO EXHIBITS
Sequentially
Exhibit Number Numbered Page
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1.1 Press Release Announcing Fourth Quarter
Results and Other Developments 5
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Exhibit 1.1
[DIAMOND CABLE
COMMUNICATIONS
LOGO]
DIAMOND CABLE -- NEWS RELEASE
DIAMOND CABLE ANNOUNCES
1997 PRELIMINARY OPERATING RESULTS
Diamond Cable Communications Plc, which owns and operates a
telecommunications and cable television business focused on the East Midlands
area of England, today announced preliminary operating results for the year
ended December 31, 1997. During 1997, while the Company continued to focus on
designing and building its cable network, it also took steps to improve its
marketing and sales organization and achieved positive earnings before interest,
taxes, depreciation and amortization, foreign exchange gains and losses and
realized and unrealized gains and losses on derivative financial instruments
("EBITDA") for the year. Homes passed by civils construction and homes activated
increased by approximately 5% and 11%, respectively, in the fourth quarter, to
533,800 and 502,500, respectively, at December 31, 1997. Homes marketed
increased by approximately 50,000 (14%) in the fourth quarter, to approximately
405,800.
The Company also reported increases in all categories of customers in the
period. Cable television subscribers increased to approximately 83,750 at
December 31, 1997 from 71,435 at September 30, 1997. Residential telephone lines
connected also increased to approximately 156,200 at year end 1997 from 136,925
at September 30, 1997, and business lines connected increased to approximately
27,120 at December 31, 1997 from 25,405 at September 30, 1997. At December 31,
1997, penetration of homes marketed for basic cable television subscribers and
residential telephone lines were 20.6% and 38.5%, respectively.
When the Company completes its financial reporting for the year just
ended, it expects to report EBITDA of approximately (pound)4 million for the
fourth quarter of 1997 and over (pound)11 million for the full year.
Certain of the Company's subsidiaries are parties to an amended senior
bank lending facility (the "Senior Bank Facility"), which provided for a
borrowing facility of up to (pound)175 million. The Company is planning to
issue, through a subsidiary, approximately (pound)160 million in senior debt
that will replace, in large part, the anticipated borrowing under the Senior
Bank Facility, and, in the event the proposed issue is completed, the Group will
terminate the Senior Bank Facility.
In connection with the acceleration of the receipt of funds from the
proposed issue, the Group has reviewed its capital expenditure estimates. The
Group currently estimates that the additional
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capital expenditures from September 30, 1997 required for the Group to complete
construction sufficient to satisfy its aggregate milestone obligations of
approximately 1.02 million premises will be approximately (pound)470 million
(including estimated subscriber connection expenses), although further capital
expenditures would be required to complete the network. These expenditures could
vary significantly depending on a number of factors, including the number of
customers actually connected to the network and the availability of construction
resources.
At December 31, 1997, the Group had constructed and activated a network
comprising approximately 52% of its aggregate milestones. The Group estimates
that the net proceeds from the proposed debt issue (if completed), existing cash
resources and future cash flows from operations will be sufficient to complete
the construction and activation of its network to almost 80% of its aggregate
final milestones, which level the Group estimates it will achieve during the
fourth quarter of 1999. Thereafter, the Group will be required to obtain further
debt and/or equity financing to complete construction sufficient to satisfy its
aggregate milestones.
The Company expects to announce the remainder of its operating results at
the time it files its annual report with the US Securities and Exchange
Commission, expected to be on or before March 31, 1998.
Enquiries: Bob Goad (+1-317) 844 1323, Nicholas Millard (+44115) 912 2217 or
Rebecca Walsh (+44115) 912 2536
End of Press Release
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