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EXHIBIT 10.47
ARTHUR ANDERSEN LLP
FAIR MARKET VALUATION REPORT:
FALCON CLASSIC CABLE INCOME PROPERTIES
BURKE, NC
CALIFORNIA CITY, CA
CENTREVILLE, MD
REDMOND, OR
SOMERSET, KY
February 20, 1997
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EXHIBIT 10.30
ARTHUR ANDERSEN LLP
FAIR MARKET VALUATION REPORT:
FALCON CLASSIC CABLE INCOME PROPERTIES
BURKE, NC
CALIFORNIA CITY, CA
CENTREVILLE, MD
REDMOND, OR
SOMERSET, KY
February 20, 1997
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February 20, 1997
Mr. Burt Harris
Harriscope Corporation
Conflicts Committee of Falcon Classic Cable Income Properties, L.P.
10960 Wilshire Boulevard
Los Angeles, CA 90024
Dear Mr. Harris:
You retained Arthur Andersen LLP to render an opinion as to the fair market
value of the cable television systems owned by Falcon Classic Cable Income
Properties, LP ("Classic") as of December 31, 1996. Classic offers cable service
in five areas: Burke County, NC, California City, CA, Centreville, MD, Redmond,
OR, and Somerset, KY. The scope of our engagement was to value each cluster of
cable television systems operating as a single going concern. The purpose of our
report is to assist in a possible partnership buyout involving Falcon Holdings
Group L.P. (or its affiliates) and Classic's partners. We were not engaged to
make specific purchase, sale or lending recommendations. This report is not a
fairness opinion.
The Burke County, NC system serves the towns of Connelly Springs, Drexel, Glen
Alpine, Rutherford College and Valdese, as well as certain unincorporated areas
of Burke County, NC. The California City, CA system serves California City as
well as certain unincorporated areas of Kern County, CA. The Centreville, MD
system serves the towns of Barclay, Betterton, Centreville, Chestertown, Church
Hill, Millington, Oxford, Queenstown, Rock Hall, St. Michaels, Sudlersville,
Templeville and Trappe as well as certain unincorporated areas of Kent, Talbot
and Queen Anne's Counties. The Redmond, OR system serves Redmond and certain
unincorporated areas of Deschutes County, OR. The Somerset, KY systems serve the
cities of Burnside, Columbia, Eubank, Ferguson, McKinney and Somerset, as well
as certain unincorporated areas of Adair, Pulaski, Laurel and Lincoln Counties.
For purposes of this report, fair market value is defined as the amount at which
the subject properties would change hands, in a free and clear arm's length
transaction, between a willing buyer and willing seller when neither is acting
under any compulsion to complete the transaction, and when both have reasonable
knowledge of the relevant facts. No consideration is given to minority holdings
or ownership interests. This concept of value is supported by numerous court
decisions dealing with fair market value. Further, it is assumed that all assets
will remain in place and be employed in the delivery of cable television to
subscribers, which is assumed to be the highest and best use of those assets.
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Mr. Burt Harris
Page 2
February 20, 1997
Our investigation included interviews with management, a review of financial and
other documents, and an on-site review of a representative portion of the cable
systems and the areas served. We relied upon the information provided by
management as accurately representing the financial, technical and operational
status of the companies.
Based on our investigation and analysis as described in the report, and subject
to the assumptions and limiting conditions specified in this report, it is our
opinion that the fair market value of the subject properties, free and clear of
all liens and encumbrances, as of December 31, 1996 is as follows:
Burke County, NC Cluster $17,685,000
California City, CA Cluster $2,791,000
Centreville, MD Cluster $20,445,000
Redmond, OR Cluster $5,882,000
Somerset, KY Cluster $30,277,000
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Total $77,080,000
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Very truly yours,
/S/Arthur Andersen LLP
ARTHUR ANDERSEN LLP
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FAIR MARKET VALUATION REPORT:
FALCON CLASSIC CABLE INCOME PROPERTIES
BURKE, NC
CALIFORNIA CITY, CA
CENTREVILLE, MD
REDMOND, OR
SOMERSET, KY
.
As of December 31, 1996
Prepared For:
Conflicts Committee of Falcon Classic Cable Income Properties, L.P.
Prepared By:
Arthur Andersen LLP
Washington, D.C.
February 20, 1997
Copyright 1997-All Rights Reserved
Arthur Andersen LLP
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FAIR MARKET VALUATION REPORT:
FALCON CLASSIC CABLE INCOME PROPERTIES
BURKE, NC
CALIFORNIA CITY, CA
CENTREVILLE, MD
REDMOND, OR
SOMERSET, KY
TABLE OF CONTENTS
A. EXECUTIVE SUMMARY........................................................1
1. Introduction and Purpose of Report..............................1
2. Fair Market Value Conclusion....................................2
B. ECONOMIC PERSPECTIVE.....................................................3
1. The U.S. Economy................................................3
a. General Overview.......................................3
b. Implications for the Cable Television Industry.........6
2. Industry Overview...............................................6
a. History................................................6
b. Future.................................................9
C. PROPERTY DESCRIPTION.....................................................11
1. Operating Market................................................11
2. Physical Plant..................................................12
3. Operations Review...............................................15
4. Homes Passed and Subscribers....................................16
5. Franchise Agreements............................................18
6. Channel Line-Up and Rate Card...................................20
7. Financial History...............................................21
8. Management......................................................22
D. VALUATION METHODOLOGY....................................................23
1. Purpose.........................................................23
2. Definition of Fair Market Value.................................23
3. Three Approaches to Value.......................................24
4. Overall Valuation Procedure.....................................24
5. Operating Income Capitalization Method..........................26
6. Discounted Cash Flow Methodology................................26
7. Residual Value..................................................28
8. Analysis of Future Projections..................................29
9. Comparable Sales Methodology....................................30
E. CONCLUSIONS..............................................................32
F. GENERAL ASSUMPTIONS AND LIMITING CONDITIONS..............................33
G. CERTIFICATION............................................................36
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EXHIBITS
A. Cable Television Miles, Homes and Subscribers
B. Service Rates
C. Revenue, Expenses, Operating Income
D. Capital Expenditures
E. Discounted Cash Flow Valuation
F. Valuation Matrix
ADDENDUM 1 Channel Line-Ups and Rate Cards
ADDENDUM 2 Capital Asset Pricing Model & Weighted Average Cost of Capital
ADDENDUM 3 Financial History
ADDENDUM 4 Demographics
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FAIR MARKET VALUATION REPORT:
FALCON CLASSIC CABLE INCOME PROPERTIES
BURKE, NC
CALIFORNIA CITY, CA
CENTREVILLE, MD
REDMOND, OR
SOMERSET, KY
A. EXECUTIVE SUMMARY
1. Introduction and Purpose of Report
You retained Arthur Andersen LLP to render an opinion as to the fair
market value of the cable television systems owned by Falcon Classic
Cable Income Properties, LP ("Classic") as of December 31, 1996.
Classic offers cable service in five areas: Burke County, NC,
California City, CA, Centreville, MD, Redmond, OR, and Somerset, KY.
The scope of our engagement was to value each cluster of cable
television systems operating as a single going concern. The purpose
of our report is to assist in a possible partnership buyout
involving Falcon Holdings Group L.P. (or its affiliates) and
Classic's partners. We were not engaged to make specific purchase,
sale or lending recommendations. This report is not a fairness
opinion.
The Burke County, NC system serves the towns of Connelly Springs,
Drexel, Glen Alpine, Rutherford College and Valdese, as well as
certain unincorporated areas of Burke County, NC. The California
City, CA system serves California City as well as certain
unincorporated areas of Kern County, CA. The Centreville, MD system
serves the towns of Barclay, Betterton, Centreville, Chestertown,
Church Hill, Millington, Oxford, Queenstown, Rock Hall, St.
Michaels, Sudlersville, Templeville and Trappe as well as certain
unincorporated areas of Kent, Talbot and Queen Anne's Counties. The
Redmond, OR system serves Redmond and certain unincorporated areas
of Deschutes County, OR. The Somerset, KY systems serve the cities
of Burnside, Columbia,
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Eubank, Ferguson, McKinney and Somerset, as well as certain
unincorporated areas of Adair, Pulaski, Laurel and Lincoln Counties.
For purposes of this report, fair market value is defined as the
amount at which the subject properties would change hands, in a free
and clear arm's length transaction, between a willing buyer and
willing seller when neither is acting under any compulsion to
complete the transaction, and when both have reasonable knowledge of
the relevant facts. No consideration is given to minority holdings
or ownership interests. This concept of value is supported by
numerous court decisions dealing with fair market value. Further, it
is assumed that all assets will remain in place and be employed in
the delivery of cable television to subscribers, which is assumed to
be the highest and best use of those assets.
As of the valuation date, the Burke County system passed 18,986
homes and served 10,516 customers via 731.1 miles of cable
television plant. The California City system passed 2,858 homes and
served 1,922 customers via 90.1 miles of cable television plant. The
Centreville system passed 23,857 homes and served 12,325 customers
via 649.8 miles of cable television plant. The Redmond system passed
7,252 homes and served 3,516 customers via 170 miles of cable
television plant. The Somerset system passed 22,060 homes and served
19,296 customers via 834.5 miles of cable television plant.
2. Fair Market Value Conclusion
Our opinion of the fair market value is based on information and
data supplied by the System's management, our on-site inspection of
representative portions of the Systems and the areas served and
cable television industry information. Based on our analysis and
investigation of the Systems, it is our opinion that the fair market
value of the subject properties as of December 31, 1996 is as
follows:
Burke County, NC Cluster $17,685,000
California City, CA Cluster $2,791,000
Centreville, MD Cluster $20,445,000
Redmond, OR Cluster $5,882,000
Somerset, KY Cluster $30,277,000
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B. ECONOMIC PERSPECTIVE
1. The U.S. Economy
a. General Overview
Economic growth accelerated in the first half of 1996.
According to preliminary estimates, real gross domestic
product increased at an annual rate of 3.4 percent in the
first two quarters compared to 2.0 percent in 1995. On a
quarterly basis, Gross Domestic Product ("GDP") increased 0.5
percent during the first quarter and 1.2 percent during the
second quarter. The substantial growth in the second quarter
of 1996 was widespread, with the largest increases in personal
consumption expenditures and in government.
During the second quarter of 1996, consumption expenditures
grew by an annual rate of 3.4 percent. The largest increase
was in durable goods, which increased at an annual rate of
11.3 percent. Spending on durables offset some weakening in
spending on nondurable goods, as the growth rate of
nondurables fell to an annual growth rate of 1.6 percent in
the second quarter versus 3.6 percent for the first quarter of
1996.
An increase in government expenditures and investment was
another major factor in the increase of the economic growth
rate. National defense expenditures and investment increased
at an annual rate of 7.6 percent in the first half of 1996
compared to a decline throughout 1995. Additionally, state and
local expenditures and investment increased at an annual rate
of 6.6 percent during the second quarter of 1996.
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Inflation remained low, but increased compared to 1995. The
consumer price index for urban consumers ("CPI-U") increased
by 3.5 percent, seasonally adjusted annual rate, in the first
seven months of 1996, compared with a 2.5 percent increase for
all of 1995. The increase in the CPI-U during the first seven
months of 1996 was due to an acceleration in both food and
energy costs. The food index rose at an annual rate of 4.1
percent for the first seven months after rising 2.1 percent in
all of 1995. Energy costs increased at a 9.6 percent annual
rate after declining in 1995. Petroleum prices led the
increase with an annual rate of 15.7 percent for the first
seven months of 1996. Core inflation, as measured by the CPI-U
excluding food and energy, increased at an annual rate of 3.0
percent in the first seven months of 1996.
The unemployment rate remained relatively steady in the first
seven months of 1996, closing in July at 5.4 percent. The rate
had fluctuated in a narrow band around 5.6 percent during
1995, as increases in the number of jobs fully absorbed
increases in the labor force. An acceleration in total
employment throughout 1996 had increased the labor force by
1.9 million for the first seven months of 1996. Total
employment grew by only 400,000 during all of 1995.
Income growth during the first two quarters of 1996 increased
slightly compared to 1995. Personal income increased 1.6
percent in the second quarter of 1996 compared to average
quarterly increases of 1.25 percent for the previous four
quarters. The largest sector responsible for this increase was
manufacturing, which increased 2.6 percent in the second
quarter compared to a 1.7 percent increase from the first
quarter of 1995 to the first quarter of 1996.
FINANCIAL MARKETS
The prime rate, the rate which major commercial banks charge
their best customers, fluctuated from a low of 6 percent in
1993 to a high of 12.04 percent in 1984. The prime rate, which
is considered a key economic and financial
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barometer, averaged 8.29 percent in the first half of 1996 and
stood at 8.25 percent as of the valuation date.
A visible mechanism utilized by the Federal Reserve Bank to
increase capital expenditures during the most recent recession
was a dramatic decrease in the discount rate. The discount
rate in 1984 was 8.8 percent, and declined throughout the
decade to a low of 3.0 percent during 1993. During the first
seven months of 1996, yields on three-month Treasury bills
ranged from 5.02 percent in January to 5.17 percent in July.
During the same period, yields on Moody's AAA corporate bonds
ranged from 6.8 percent in January to a low of 7.65 percent in
July.
FUTURE OUTLOOK
Most of the available evidence supports the conventional
wisdom that the economy's productive capacity is expanding
approximately 2.3 percent annually. Growth in the productivity
of American workers seems to have increased slightly in recent
years, to about 1.25 percent annually. Overall, the growth of
the economy appears to be nearly what it has been for the last
two decades, with productivity trends offsetting workforce
population declines.
Advance estimates for the GDP indicate that the economy is
continuing to expand. Since the Federal Reserve can be
expected to continue influencing economic growth and inflation
through adjustments in the federal funds rate, analysts expect
a 2.5 percent growth in the U.S. economy for all of 1996.
In addition, long-run projections suggest that if the Clinton
Administration's current policy proposals are enacted and the
anticipated slowdowns in Medicare and Medicaid spending
persist, the deficit should improve over the next ten years.
After the year 2000, the amount of the deficit is expected to
remain stable, but become a smaller percentage of GDP as GDP
increases are realized. Over the longer run, changing
demographics will put upward pressure on the deficit as the
baby-boom generation retires. Social Security and Federal
medical spending are expected to increase as more of the
population reaches the age of 65.
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b. Implications for the Cable Television Industry
Traditionally, the cable television industry has been
relatively recession-proof. Although cable television is an
optional service, during periods of economic downturns, when
unemployment rises and household income declines, it is
generally considered an entertainment bargain. For a modest
amount of money per month, a family can purchase many hours of
in-home entertainment. As a consequence, the decline in
customers taking the basic service is minimal. Similarly,
little or no decline is seen in revenues associated with the
basic service. Subscribers are more likely to drop premium
services, or elect to watch fewer pay-per-view offerings, when
the economy turns down. Thus premium and pay-per-view revenues
may decline or show less pronounced growth. Conversely, cable
customers generally subscribe more frequently to premium
services and watch more elective pay-per-view offerings when
unemployment decreases and household income rises.
2. Industry Overview
a. History
Cable television was born of necessity. In rural America,
during the late 1940s and early 1950s, the first cable
television systems were constructed to allow clear reception
of broadcast television signals. These rural communities were
either too far away from broadcast stations to receive
viewable signals, or were surrounded by mountains or other
terrain conditions not conducive to good reception. The first
systems were of simple design. An antennae, usually a
household rooftop unit, was placed on top of the signal
blocking obstruction and from there wires were run into the
community to the homes. While these early systems generally
provided no more than 6 to 12 channels, they did provide clear
pictures.
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From the late 1950s through the early 1970s construction of
cable television systems continued at a moderate pace. Systems
were being constructed in more densely populated areas with
more channels (12 to 24) and new programming services were
being introduced. These new services were imported by way of
microwave. However, mid-way through this period, the Federal
Communications Commission ("FCC") placed restrictions on the
importation of distant broadcast signals. The effect of these
restrictions was to slow or stop construction of systems in
major markets.
The FCC eased distant signal importation restrictions in 1972.
This allowed operators to introduce more varied programming
and to expand into larger markets. The beginning of cable
television, as it is thought of today, began in 1974-1975 with
the introduction of satellite delivered television
programming. The efficiency of the delivery system, and the
variety of programming that would soon become available helped
move systems beyond 24 channels to 36 channels and more. The
period between 1972 and 1984 saw the rapid development and
expansion of cable television throughout all markets.
In 1984 the Cable Communications Policy Act was approved by
Congress. Viewed in hindsight, the most controversial feature
of the act was the removal of price controls on programming
services to the subscriber. The release of price controls was
phased in over 1985 and 1986 with all controls coming off in
1987. Between 1987 and 1991 the cost of basic programming to
the subscriber rose dramatically. Cable operators argued that
the increases were a result of an artificially restricted
market and prices were now reaching equilibrium as program
offerings increased and technical facilities were improved.
Consumer advocates argued that cable operators were taking
advantage of an unrestricted situation in which the operators
held unregulated monopolies.
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In response to recent history, Congress proposed several
re-regulation bills over a period of three years. Finally, on
October 5, 1992, the House and Senate enacted into law the
controversial Cable Television Consumer Protection and
Competition Act of 1992 (the "1992 Cable Act") over the veto
of President Bush. Many of the provisions of the new law took
effect 60 days after passage of the bill, on December 4, 1992,
but a number of key provisions took effect on dates ranging
from 120 days to 18 months from the date of passage. Among the
most critical issues affected by the 1992 Cable Act are direct
rate regulation, "must-carry," and re-transmission consent.
Provisions of the new law relating to direct rate regulation
allow most local franchising authorities to take steps to
ensure that basic service rates are reasonable, i.e., not
greater than would be the case if the system was subject to
effective competition. The FCC is required to establish and
adopt regulations to be followed by the local authorities who
choose to regulate. Rates may be regulated on other, non-basic
services only in cases of "bad actor" complaints.
In April 1993, the FCC announced preliminary guidelines for
rate regulation which are based on benchmarks derived from a
national price survey of systems subject to competition. The
FCC expected most systems would be required to roll back rates
approximately ten percent or more. Operators may elect to
prove the reasonableness of their rates by means of a cost of
service showing. The long expected rules for the cost of
service showing were announced by the FCC by February, 1994.
At the same time, the FCC revised benchmark rates and issued
new methodology for operators to use in determining which
benchmark rates apply to their systems. The FCC expects the
new benchmarks will result in an additional rollback of rates
for regulated services in the average magnitude of about 7
percent . The new rules also are intended to encourage the
development of new, unregulated services.
Under the 1992 Cable Act broadcasters are given broad "must
carry" and channel position rights. Requirements are
established for cable television operators to carry local
television stations. Prior to enactment of the new law, cable
systems were not required to carry broadcast stations.
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Cable operators also did not have to request permission to use
broadcast signals prior to enactment of the 1992 Cable Act,
nor did they have to pay a carriage fee to the broadcasters.
As a result of the re-transmission consent provisions of the
1992 law, cable systems are barred from retransmitting
broadcast signals without a station's consent. The cable
operator must negotiate with local broadcasters to obtain
their consent for retransmission. As a result of the
negotiation process, the cable operator might be charged a fee
for carriage of the broadcaster's signals. It is important to
remember that much of the viewing on cable television is still
done on the three major broadcast networks.
b. Future
Despite re-regulation, cable operators' total revenues
continue to increase. Subscribers increased 4 percent to 63
million in 1995, basic service revenues expanded 11 percent,
premium service revenue grew 6 percent, and advertising
revenue rose 16 percent.
There are some difficulties in projecting cable revenues more
than five years out because of inevitable technological
changes on the horizon (such as interactive media). It is
anticipated that growth will not pass into the double digits
in the 1990's as in the 1980's. However, cable household
penetration should reach 70% and advertising revenues should
increase in the near future. Overall, total cable revenues are
expected to increase 5 to 7 percent per year over the next 5
years, until certain technological change alters the
competitive situation.
The future also holds the potential for competition. The two
primary sources of competition are widely considered to be the
regional bell operating companies ("RBOCs") and direct
broadcast satellites.
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The economics of competition and the possible reconstruction
of entire subscriber networks represents an investment that
may not be economically feasible for the RBOCs. Recent
developments in copper transmission technology, specifically,
asymmetrical digital subscriber lines, have given the RBOCs
some hope of using their existing subscriber networks to
transmit full motion video. Many analysts view the RBOCs as
possible joint venture candidates or purchasers of cable
systems. Indeed, a number of actions support this view,
including US West's investment in Time Warner, Bell Atlantic's
bid to acquire Tele-Communications, Inc., Southwestern Bell's
acquisition of Hauser Communications, USWest's acquisition of
Continental Cable and rumors of discussions between other
RBOCs and large cable operators.
The other source of competition is from direct broadcast
satellites ("DBS"). DBS is a high power satellite which
broadcasts programs directly to the subscriber's home
utilizing an 18" receive dish. Several companies now offer the
service. The first commercial launch was in December of 1993.
Initially, DBS was widely viewed as a complementary service to
cable. However, in many areas DBS has eroded cable subscriber
bases. Technological restrictions prevent DBS from offering as
many local channels as cable, and the enormous expense of the
venture has kept the price to the subscriber in line with that
of cable. Further, DBS is fighting for market share against an
already well established cable service infrastructure. As of
this writing, all DBS providers serve approximately 4,400,000
subscribers.
In February of 1996, President Clinton signed into law the
Telecommunications Act of 1996. Among the numerous provisions,
the Act deregulates small cable systems of under 50,000
subscribers, and allows for the entry of cable companies into
the telephone industry. Additionally, it lifts the barriers
for entry into the cable television industry for local
exchange carriers (LEC's) as well as other entities. Most
analysts expect numerous legal challenges to the Act.
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C. PROPERTY DESCRIPTION
1. Operating Market
Falcon Classic Cable Income Properties, LP offers cable service in
five areas: Burke County, NC, California City, CA, Centreville MD,
Redmond, OR, and Somerset KY. The Burke County, NC system serves the
towns of Connelly Springs, Drexel, Glen Alpine, Rutherford College
and Valdese, as well as certain unincorporated areas of Burke
County, NC. The California City, CA system serves California City as
well as certain unincorporated areas of Kern County, CA. The
Centreville, MD system serves the towns of Barclay, Betterton,
Centreville, Chestertown, Church Hill, Millington, Oxford,
Queenstown, Rock Hall, St. Michaels, Sudlersville, Templeville and
Trappe as well as certain unincorporated areas of Kent, Talbot and
Queen Anne's Counties. The Redmond, OR system serves Redmond and
certain unincorporated areas of Deschutes County, OR. The Somerset,
KY systems serve the cities of Burnside, Columbia, Eubank, Ferguson,
McKinney and Somerset, as well as certain unincorporated areas of
Adair, Pulaski, Laurel and Lincoln Counties.
Residents in the areas served by the Burke County, North Carolina
system are employed in industries that include textiles, poultry
processing, building materials and structural products, timber
processing and furniture manufacturing. Major employers include
Lowe's Companies, Gardner Mirror, Carolina Mirror and ITT
Corporation.
Residents in the areas served by the California City, California
system generally commute to the Los Angeles area for employment.
Residents in the areas served by the Centreville, Maryland system
rely heavily upon the Chesapeake Bay for their economy. This
industry includes commercial fishing, crabbing and processing.
Portions of the area's workforce are also employed in the farming
and tourism industries. Additionally, a number of area residents
commute to Annapolis, Baltimore and Washington, D.C.
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Residents in the areas served by the Redmond, Oregon system are
employed in a variety of industries such as timber, tourism, trade,
service and agriculture. Major employers include Eagle Crest Resort
and the Redmond Airport.
Residents in the areas served by the Somerset, Kentucky system are
employed in industries such as glassware, dairy, gas and oil and
forestry. Major employers include General Electric, Southern Belle
Dairy and Palm Beach Clothing.
The data presented in Addendum 4, taken from Sales and Marketing
Management's Demographics USA 1996, shows the January 1, 1996,
population, households, median age and average household effective
buying income ("EBI") for the counties in which the entire service
area is located. If available, projections for January 1, 2001, also
are included for each category along with the compounded annual
change for the five year period.
The average annual rate of growth for each category represents a
general indicator of overall growth levels in the areas in which the
Systems operate. The growth of the area as a whole may not be
indicative of the level of growth expected and achievable in the
Systems due to a variety of reasons, including (a) the lag between
statistical reporting and the current state of affairs, (b) the fact
that certain portions of a particular county may experience robust
growth while other areas face slow or even negative growth, and (c)
the cable system may be preparing to offer the cable service in
areas previously unserved by the cable.
As of the valuation date, reception of off-air signals to service
area residents without the cable television service was poor to
excellent depending on which areas of the Systems. The main sources
of competition for the cable service were MMDS, DBS, satellite
dishes and video rental stores.
2. Physical Plant
Burke County, North Carolina
The Burke, North Carolina plant included one headend located on High
Peak Mountain. As of the valuation date, the System included 468.7
miles of aerial plant and 262.4 miles of underground plant. Plant
bandwidth capacity was at 330 MHz.
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The distribution plant contained .860 and .750-inch trunk and
.500-inch feeder cable. Additionally, the system utilized fiber
optic cable to shorten cascades. The majority of the active
electronics consisted of Magnavox and Scientific Atlanta trunk
amplifiers and line extenders. Subscriber drops consisted of RG-6
messengered cable. The longest trunk cascade was 20 amplifiers and
the longest line extender cascade was 4 line extenders.
Manufacturers of the headend electronics included General
Instruments, Avantek, Olson, Catel, Cadco and Scientific Atlanta.
Fiber optic electronics were manufactured by Scientific Atlanta and
Synchronous. Off-air signals were received via antennas mounted on a
100-foot self-supporting tower located at the headend. Satellite
signals were received by earth stations ranging in size from 2.8 to
7.0 meters.
Pay and tier security was accomplished through addressability.
Converters in the field consisted of Scientific Atlanta 8550 and
8580 addressable models.
California City, California
The California City, California plant included one headend located
in the town of North Edwards. As of the valuation date, the System
included 79 miles of aerial plant and 11.1 miles of underground
plant. Plant bandwidth capacity was at 330 MHz.
The distribution plant contained .750-inch trunk and .500-inch
feeder cable. Active electronics consisted of Magnavox trunk
amplifiers and line extenders. The longest trunk cascade was 16
amplifiers and the longest line extender cascade was 3 line
extenders.
Manufacturers of headend electronics included Scientific Atlanta,
M/A-Com, Standard Communications and Jerrold. Off-air signals were
received via antennas mounted on a 250-foot tower. Satellite signals
were received by earth stations ranging in size from 4.2 to 5.0
meters in diameter.
Pay and tier security was accomplished through a combination of the
use of traps and addressability. Converters in the field consisted
of Jerrold DPV7 addressable models.
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Centreville, Maryland
The Centreville, Maryland plant included one headend located in the
town of Wye Mills. As of the valuation date, the System included
460.2 miles of aerial plant and 189.60 miles of underground plant.
Plant bandwidth capacity was at 450 MHz.
The distribution plant contained .750-inch trunk and .500 and
.412-inch feeder cable. Additionally, the signal was microwaved from
the headend to two sites in Talbot County, two sites in Queen Anne
County and two sites in Kent County. Fiber was utilized throughout
the system both from the headend and from microwave receive sites.
Active electronics consisted of Magnavox trunk amplifiers and line
extenders. Subscriber drops consisted of RG-6, RG-59, and RG-11
cable. The longest trunk run was 19 amplifiers and the longest line
extender cascade was 5 line extenders.
Manufacturers of headend electronics included Scientific Atlanta,
General Instruments, Drake, Cadco, M/A-Com and Olson. Fiber optic
electronics were manufactured by Antec and Phillips. Off-air signals
were received via antennas mounted on a 300-foot guyed tower at the
headend. Satellite signals were received by earth stations ranging
in size from 2.8 to 5.0 meters in diameter.
Pay and tier security was accomplished through the use of traps.
Converters in the field consisted of Jerrold DRZ-3 models.
Redmond, Oregon
The Redmond, Oregon plant included one headend located in the town
of Redmond. As of the valuation date, the System included 116 miles
of aerial plant and 54 miles of underground plant. Plant bandwidth
capacity was at 270 MHz.
The distribution plant contained .750 and .500-inch trunk and .500
and .412-inch feeder cable. Active electronics consisted of Magnavox
and Century trunk amplifiers and line extenders. Subscriber drops
consisted of RG-6, RG-59, and RG-11 cable. The longest trunk cascade
was 32 amplifiers and the longest line extender cascade was 5 line
extenders.
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Manufacturers of the headend electronics included General
Instruments, Pico and Scientific Atlanta. Satellite signals were
received by earth stations manufactured by Comtech and Scientific
Atlanta.
Pay security was accomplished through the combination of traps and
addressability. Converters in the field were manufactured by
Jerrold.
Somerset, Kentucky
The Somerset, Kentucky plant included five headends located in the
towns of Burnside, Columbia, Eubank, London, and McKinney. As of the
valuation date, the Systems included 816.5 miles of aerial plant and
18 miles of underground plant. Plant bandwidth capacity ranged from
270 to 400 MHz.
The distribution plant contained .860, .750 and .500-inch trunk and
.500 and .412-inch feeder cable. Active electronics consisted of
Scientific Atlanta, Tocom, Sylvania and Jerrold trunk amplifiers and
line extenders. Subscriber drops consisted of RG-6 and RG-59 cable.
The longest trunk run was 33 amplifiers and the longest line
extender cascade was 8 line extenders.
Manufacturers of headend electronics included General Instruments,
Scientific Atlanta, Microdyne, Blonder Tongue, Triple Crown, Catel
and Olson. Fiber optic electronics were manufactured by Antec and
Scientific Atlanta. Off-air signals were received via antennas
mounted on towers either at the headend or near the headend on a
mountaintop site. Satellite signals were received by earth stations
ranging in size from 3.0 to 5.0 meters in diameter.
Pay security was accomplished through a combination of traps and
addressability. Converters in the field consisted of Scientific
Atlanta 8501, 8510, 8511, and 8600 non-addressable and addressable
models.
3. Operations Review
The Burke County, California City, Centreville, and Redmond systems
each conducted operations from one centrally located business
office. The Somerset systems had three business offices located at
strategic points throughout the service areas.
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Our visual inspection of the Systems included on-site inspections of
the Burke County, NC system, the Centreville, MD system and the
Somerset, KY systems. These systems represented nearly 90% of the
subscribers within the five areas. Numerous new build areas were
observed throughout the Systems. Our inspection of the active
distribution plant showed the cable and strand to be in fair to good
condition with very little signs of broken lashing wire.
The headends observed during the on-site observations appeared to be
very well organized and well maintained. Headend electronics
consisted of a mixed batch of low to high quality brand name
equipment and appeared to be in fair to excellent condition in each
of the Systems.
4. Homes Passed and Subscribers
Systems management's best estimate of the number of homes passed and
subscribers as of the valuation date is as follows:
Burke County, North Carolina Penetration
- ---------------------------- -----------
Homes Passed: 18,986 N/A
Basic Subscribers: 10,516 55.4%
Expanded Basic: 9,097 86.5%
Pay Units: 4,840 46.0%
Converters: 15,346 145.9%
Remotes: 10,922 103.8%
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California City, California Penetration
- --------------------------- -----------
Homes Passed: 2,858 N/A
Basic Subscribers: 1,922 67.2%
Expanded Basic: 1,820 94.7%
Pay Units: 839 43.7%
Converters: 931 48.4%
Remotes: 802 41.7%
Centreville, Maryland Penetration
- --------------------- -----------
Homes Passed: 23,857 N/A
Basic Subscribers: 12,325 51.7%
Expanded Basic: 11,863 96.3%
Pay Units: 7,440 60.4%
Converters: 1,838 14.9%
Remotes: 681 5.5%
Redmond, Oregon Penetration
- --------------- -----------
Homes Passed: 7,252 N/A
Basic Subscribers: 3,516 48.5%
Expanded Basic: 2,847 81.0%
Pay Units: 777 22.1%
Converters: 1,050 29.9%
Remotes: 933 24.7%
Somerset, Kentucky Penetration
- ------------------ -----------
Homes Passed: 22,060 N/A
Basic Subscribers: 19,296 87.5%
Expanded Basic: 18,823 97.5%
Pay Units: 3,914 20.3%
Converters: 5,119 26.5%
Remotes: 4,622 24.0%
Management's estimate of homes passed were drawn from System
information and based on a combination of billing records, previous
audits and the System's maps.
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5. Franchise Agreements
The following chart details the active franchises and agreements for
the Systems and provides term expiration.
Franchise Area Expiration Date
-------------- ---------------
Burke County, North Carolina
- ----------------------------
Burke County June 3, 1998
Connelly Springs October 7, 1999
Drexel February 2, 2005
Glen Alpine October 31, 1998
Rutherford College October 10, 2001
Valdese June 20, 2007
California City, California
- ---------------------------
California City April 1, 2001
Centreville, Maryland
- ---------------------
Barclay March 13, 2009
Betterton June 13, 2004
Centreville October 7, 1997
Chestertown March 29, 1998
Church Hill February 2, 2009
Kent County May 17, 2003
Millington February 21, 2004
Oxford August 27, 2006
Queen Anne's County September 1, 1997
Queenstown June 16, 1998
Rock Hall December 26, 2001
St. Michaels December 31, 1996
Sudlersville September 22, 2008
Talbot County May 29, 2006
Templeville May 3, 2008
Trappe September 23, 2006
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Franchise Area Expiration Date
-------------- ---------------
Redmond, Oregon
- ---------------
Redmond February 23, 2002
Somerset, Kentucky
- ------------------
Adair County May 8, 2005
Burnside June 2, 2000
Columbia August 27, 2011
Eubank September 6, 1998
Ferguson November 7, 2008
Laurel County May 27, 2009
Lincoln County (a) April 5, 1998
Lincoln County (b) May 5, 2007
Pulaski County (a) June 1, 1999
Pulaski County (b) October 26, 2008
Somerset December 31, 1996
The weighted average remaining life per basic subscriber of the
franchises for the Burke County System is 2.08 years. The weighted
average remaining life per basic subscriber of the franchises for
the California City System is 4.25 years. The weighted average
remaining life per basic subscriber of the franchises for the
Centreville System is 3.36 years. The weighted average remaining
life per basic subscriber of the franchises for the Redmond System
is 5.15 years. The weighted average remaining life per basic
subscriber of the franchises for the Somerset System is 6.24 years.
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6. Channel Line-Up and Rate Card
As of the valuation date, the following average rates were charged
to subscribers.
Burke County, North Carolina
- ----------------------------
Basic: $16.96
Expanded Basic: 6.20
Pay: 7.51
Converters: 2.50
Remotes: 0.03
Installation: 45.00
Reconnect: 45.00
California City, California
- ---------------------------
Basic: $15.77
Expanded Basic: 6.00
Pay: 8.14
Converters: 4.46
Remotes: 0.34
Installation: 45.00
Reconnect: 45.00
Centreville, Maryland
- ---------------------
Basic: $20.60
Expanded Basic: 3.52
Pay: 8.54
Converters: 1.99
Remotes: .68
Installation: 45.00
Reconnect: 45.00
Redmond, Oregon
- ---------------
Basic: $22.23
Expanded Basic: 2.05
Pay: 6.16
Converters: 2.57
Remotes: 0.22
Installation: 45.00
Reconnect: 45.00
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Somerset, Kentucky
- ------------------
Basic: 19.24
Expanded Basic: 2.37
Pay: 8.71
Converters: 1.58
Remotes: 0.33
Installation: 45.00
Reconnect: 45.00
Detailed channel line-up and rate information is included in
Addendum 1.
7. Financial History
For purposes of our investigation, we were furnished for review
financial statements for each of the Systems for the years ending
December 31, 1993, 1994, 1995 and 1996. We have accepted such
information, without audit or investigation on our part, as
correctly reflecting the business and financial operations and
conditions it was purported to reflect but made such adjustments as
we deemed appropriate for valuation purposes.
Recent financial operating history is discussed below, and summary
income statements, including notations pertaining to adjustments,
are presented in Addendum 3.
In the Burke County system, total revenues for the twelve months
ended December, 1996 were $5,077,787 and operating expenses totaled
$2,023,543, resulting in operating income of $3,054,244 and an
operating margin of 60.15%. This represents an increase in operating
income of 3.5% over the previous year from $2,951,419 reported for
the year ended December 31, 1995.
In the California City system, total revenues for the twelve months
ended December, 1996 were $753,244 and operating expenses totaled
$318,288, resulting in operating income of $434,956 and an operating
margin of 57.74%. This represents an increase in operating income of
5.2% over the previous year from $413,393 reported for the year
ended December 31, 1995.
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In the Centreville system, total revenues for the twelve months
ended December, 1996 were $5,342,637 and operating expenses totaled
$2,623,275, resulting in operating income of $2,719,362 and an
operating margin of 50.90%. This represents an increase in operating
income of 31% over the previous year from $2,075,645 reported for
the year ended December 31, 1995.
In the Redmond system, total revenues for the twelve months ended
December, 1996 were $1,561,593 and operating expenses totaled
$632,632, resulting in operating income of $928,961 and an operating
margin of 59.49%. This represents an increase in operating income of
5% over the previous year from $885,188 reported for the year ended
December 31, 1995.
In the Somerset systems, total revenues for the twelve months ended
December, 1996 were $7,090,865 and operating expenses totaled
$3,102,395, resulting in operating income of $3,988,470 and an
operating margin of 56.25%. This represents an increase in operating
income of 16.1% over the previous year from $3,436,148 reported for
the year ended December 31, 1995.
8. Management
Our representative met and interviewed several members of management
during the on-site review of the Systems. The management team in
place at the time of the valuation was comprised of professionals in
the cable television industry and demonstrated substantial knowledge
about all aspects of the Systems' operation.
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D. VALUATION METHODOLOGY
1. Purpose
We were engaged to render an opinion as to the fair market value of
the cable television systems owned by Falcon Classic Cable Income
Properties, LP ("Classic" or the "Systems") as of December 31, 1996.
Classic offers cable service in five areas: Burke County, NC,
California City, CA, Centreville, MD, Redmond, OR and Somerset, KY.
The scope of our engagement was to value each cluster of cable
television systems operating as a single going concern. The purpose
of our report is to assist in a possible partnership buyout
involving Falcon Holdings Group L.P. (or its affiliates) and
Classic's partners. We were not engaged to make specific purchase,
sale or lending recommendations. This report is not a fairness
opinion.
The Burke County, NC system serves the towns of Connelly Springs,
Drexel, Glen Alpine, Rutherford College and Valdese, as well as
certain unincorporated areas of Burke County, NC. The California
City, CA system serves California City as well as certain
unincorporated areas of Kern County, CA. The Centreville, MD system
serves the towns of Barclay, Betterton, Centreville, Chestertown,
Church Hill, Millington, Oxford, Queenstown, Rock Hall, St.
Michaels, Sudlersville, Templeville and Trappe as well as certain
unincorporated areas of Kent, Talbot and Queen Anne's Counties. The
Redmond, OR system serves Redmond and certain unincorporated areas
of Deschutes County, OR. The Somerset, KY systems serve the cities
of Burnside, Columbia, Eubank, Ferguson, McKinney and Somerset, as
well as certain unincorporated areas of Adair, Pulaski, Laurel and
Lincoln Counties.
2. Definition of Fair Market Value
For purposes of this report, fair market value is defined as the
estimated cash or cash equivalent price at which the subject
properties would change hands between a willing buyer and a willing
seller, in an arm's length transaction, in which both buyer and
seller have been informed of all relevant facts and neither is under
compulsion to complete the transaction. This concept of value is
supported by numerous court decisions dealing
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with fair market value. Further, it is assumed that all assets will
remain in place and be employed in the delivery of cable television
signals to subscribers, which is assumed to be the highest and best
use of those assets.
3. Three Approaches to Value
Traditionally, the development of a fair market value opinion is
based on the consideration of three basic approaches to value: the
Cost Approach, the Market Approach and the Income Approach. The cost
approach measures the value of an asset by the cost to reconstruct
or replace it with another of like utility. The income approach
measures the value of an asset by the present value of its future
economic benefits. The market approach measures the value of an
asset through an analysis of recent sales or offerings of comparable
property. Value indications derived through one or more of these
approaches are then analyzed in order to formulate an objective
opinion as to the market value of the Systems under valuation.
We considered these three generally accepted valuation methods in
determining the Systems' fair market value. In considering the
income approach, two methodologies were used: an operating income
capitalization method and a discounted cash flow calculation. The
capitalization method is presented in part D-5 of this report, and
the discounted cash flow methodology is described in sections D-6
through D-8. We considered the market approach as presented in part
D-9 of the report. The cost approach was considered but not used
because it does not adequately capture the value attributable to the
continued operation of the business.
4. Overall Valuation Procedure
We employed the following steps in determining the fair market value
of the Systems:
a. Performed an on-site inspection of a representative portion of
the Systems' headends, earth stations, towers, antennas,
distribution plant, customer service and technical offices to
determine technical and/or physical condition.
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b. Performed an on-site review of a representative portion of the
Systems' service area to confirm economic and demographic data
and information collected from the Systems' management, local
governmental jurisdictions and independent sources.
c. Examined financial statements and other information.
d. Examined historic subscriber records and monthly reports.
e. Reviewed historic service rate records.
f. Reviewed franchises and other agreements.
g. Interviewed management and staff on a variety of financial,
operational, technical, marketing and programming issues.
h. Applied the most likely changes, in our opinion, in operations
and finance that a reasonable, prudent, "outside" buyer would
institute.
i. Applied or considered an operating income capitalization
method, a discounted cash flow method and a comparable sales
methodology.
j. Derived an estimated fair market value which considered the
results of the various valuation methods, giving greater
weight to the discounted cash flow and projected income
capitalization methods, since they reflect future factors, as
well as past and current, affecting overall systems value.
We conducted an on-site inspection of a representative portion of
the cable systems to determine physical condition and satisfactory
function of fixed assets currently in place.
We assessed the reasonableness of management's 1997 budget regarding
homes, subscribers, miles, rates, revenues, operating expenses, and
capital expenditures. We used essentially the same estimates for
future growth in miles and homes in our analysis in the assumption
that a typical outside buyer would plan to achieve the same level of
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growth. The annual capital expenditure assumptions for both new
construction, rebuilds and ongoing maintenance used in our analysis
are similar to or slightly less than those projected by management.
5. Operating Income Capitalization Method
We considered three variations of the operating income
capitalization method. In the first variation, we applied a baseline
multiplier to the Systems' adjusted 1996 12-month operating income
based on historical financial information presented in Addendum 3.
The baseline multiplier was derived from a variety of cable industry
data including public and private transactions, public stock data,
industry trends and other information. The second variation of this
method utilized a slightly lower multiplier applied to the Systems'
current operating income. Current operating income is defined as the
annualized estimate of the Systems' current monthly operating income
based on the number of subscribers and the service rates charged on
the date of the valuation. A lower multiplier was used to recognize
the risk and uncertainty of using operating income estimated by
annualization rather than historic data. We applied an even lower
multiplier to the Systems' estimated future operating income in the
third variation of the operating income capitalization method. We
used the lower multiple to recognize the greater risk and
uncertainty of using future estimates of operating income rather
than historic achievements. The results of the three income
capitalization methods are presented in Exhibits F.
6. Discounted Cash Flow Methodology
The discounted cash flow methodology measured the net present value
of the Systems' estimated future pre-tax operating income, less
capital expenditures, plus the residual value of the Systems. This
methodology relied on estimates of future operating income which
were derived from data supplied by the Systems' management and
certain assumptions based on experience and professional judgment.
The revenue estimates were based on data provided by management
regarding homes passed, subscribers, special services, rates, and
penetration levels. The expense estimates, based on many of the same
factors as the revenue estimates, also were overlaid with inflation
factors specific to the expense categories. In all cases, our work
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was based on management's 1997 budget and our experience with
comparable cable systems. Capital expenditures were based on
anticipated new miles of plant, plant rebuild, converter
replacement, system upgrades, and other expense factors that
generally vary from system to system.
A residual value was added to the operating income stream in the
final year of the period analyzed. The residual value was discounted
to the present at the same rate as the operating income. The
residual analysis estimated the present value of the Systems at the
end of the horizon period. We calculated the residual as a multiple
of operating income in the final year of the operating income
analysis. The residual multiple was lower than the multiple used in
the operating income capitalization method to account for the
uncertainty of regulation, competition and technological changes.
An important component of the discounted cash flow methodology is
the selection of the discount rate for overall capital or total
investment. We combined two basic components, i.e., the anticipated
return on investors' equity and the cost of debt, to create the
discount rate. As the equity return rate, we used the expected rate
of return available on alternative investment opportunities with
comparable risk. The equity return rate was developed using the
capital asset pricing model ("CAPM"), as outlined in Addendum 2.
CAPM, which is part of a larger theory known as the capital market
theory, is based on the fact that investors in risky assets require
an additional return above the risk free market rate as compensation
for investing in the particular asset.
In determining the risk component of the equity portion of capital
we analyzed the systematic and unsystematic risks associated with
the subject properties. Systematic risk is a measure of the
uncertainty of future returns due to the sensitivity of the return
on the subject investment to movements in the return for the market
as a whole. Systematic risk is measured in CAPM by a factor called
beta. Beta is a function of the relationship between the return on
an individual security and the return on the market as measured by
the return on a standard market index. Unsystematic risk is a
measurement of the risk directly related to the characteristics of a
specific industry, the cable system itself, community/municipal
relationships, competition, regulation, and management ability.
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The discount rate was determined by combining the cost of equity (as
determined above) and the cost of debt in weighted proportions
(weighted average cost of capital) that would have been typical for
the Systems, or a comparable system, and which were representative
of the industry as of the valuation date (see Addendum 2). The cost
of debt was based on the benchmark prime lending rate as listed in
The Wall Street Journal. The prime lending rate is one customarily
used as a basis for the cable television industry. Points over prime
were assigned to the debt structure based on the anticipated risk
involved in the loan and prevailing bank industry standards. The
discounted cash flow model is presented in Exhibits E.
7. Residual Value
The residual value of the cable property represents the best
estimate, as of the valuation date, of the fair market value of the
property in the final year considered in our analysis. The residual
is calculated via a valuation multiplier similar to the multipliers
used in the operating income capitalization method. Once calculated,
the residual value is added to the operating income stream. The
premise upon which the use of a residual value is based is the fact
that significant value will be returned to the owner of a property
at the end of its holding period. Alternatively, the owner will
continue to hold the property and realize operating profit well into
the future. The residual multiplier captures both aspects of value.
For most well operated cable television systems the residual
multiplier is the same, given the same valuation date. However, a
number of factors can be cause for adjustment to the multiplier. For
instance, a cable system without a likely prospect for franchise
renewal would have little or no value at the end of the franchise
term. In this example, a lower than average, or possibly zero
multiplier would be used. If, for instance, a system had a
significant number of years remaining on the current franchise plus
a renewal already assured it might garner a higher than average
multiplier. Franchise life, terms and conditions represent only a
single consideration that is made when determining the multiplier.
Other significant considerations include rate regulation,
competition, expanded services, market maturity, and operating
trends.
Based on the aforementioned considerations, we have selected a
residual multiple of 8.5 (eight and one half) for the Somerset
system, (eight) for the Centreville system, 7.5
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(seven and one half) for the Burke County system, and 7 (seven) for
the Redmond and California City systems. The residual multiple is
applied to operating income in the final year of our operating
income analysis. As a result, the residual value of the property is
calculated to be $30,052,136 for the Burke County system, $3,800,438
for the California City system, $36,593,516 for the Centreville
system, $9,001,414 for the Redmond system and $48,434,673 for the
Somerset system, as shown in Exhibits E.
8. Analysis of Future Projections
A key factor in determining the fair market value of a cable
television property is the ability to accurately assess the Systems'
future operating characteristics and the resulting operating income
and cash flow. Operating income and cash flow are the primary
drivers of overall fair market value.
Operating analyses generally take into consideration a number of
system specific characteristics as well as industry characteristics.
System specific considerations include homes passed and homes
growth, subscriber penetration (all services) and system maturity,
economic and demographic composition of the market, marketing and
administration, and programming. We examine the historic growth and
composition of all these areas as well as management's forecast of
growth. Industry characteristics include subscriber trends for the
various programming services, program ratings and offerings,
marketing trends, and industry developed consumer mandates for
service and accessibility.
Additionally, a great deal of attention is given to the age,
condition and functionality of the Systems' physical plant as this
impacts the estimate of future capital expenditures. We rely on
management's best estimate of planned capital expenses for near term
projections (generally five years). We corroborate management's
forecast with our observations of the Systems' physical plant.
Adjustments are then made to management estimates, when deemed
necessary.
We considered all of these factors when analyzing the operational
and financial future of the Systems. The major items that we
analyzed included homes passed, miles of plant, basic subscribers,
pay service units (HBO, Showtime, etc.), additional outlets (more
than one television in a home with service), and remote control or
converter units.
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Additionally, we analyzed future rates (for all services) that might
be charged to the subscribers, revenue by specific category (basic,
pay, pay-per-view, advertising, etc.), expenses by category
(programming, operations, etc.) and capital expenditures. We
considered in our analyses regulations in effect at the time of the
valuation or likely to take effect soon after the valuation date. We
then used the results of our detailed analyses in determining the
value of the properties as a whole. Our calculations also were
based, in part, on the historical financial and operational
performance of the Systems and other systems of similar
configuration. The operating horizon period was determined by the
weighted average remaining life of the franchises.
The analysis pertaining to the Systems' future operations as
described above is presented in Exhibits A, B, C, and D.
9. Comparable Sales Methodology
We utilized a market approach, or comparable sales method, in
analyzing the subject properties. Under this method, sales of
properties of similar size and construction were compared to the
subject properties. It should be noted that the market approach is
the least reliable of the valuation methodologies considered.
Because detailed financial, technical and operating information is
not generally available regarding cable television transactions, it
is impossible to relate these prices to the operating performance of
any particular property or to make a direct comparison with the
subject properties. This method is used to generally validate the
overall market and to confirm the range of values developed with the
economic methods as reasonable.
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Recent Transactions/
Announced Sales Price Price/Subscriber Multiple(1)
--------------- ----- ---------------- ---------
Kern Valley, CA $11,000,000 $1,571 8.8
Loudon City, TN $1,700,000 $1,164 7.0
IL and IA $9,400,000 $1,237 7.5
Las Vegas, NV $7,100,000 $1,309 8.3
Genoa, NE $1,700,000 $1,296 8.9
Burke County $17,685,000 $1,682(2) 6.2
California City $2,791,000 $1,452(3) 7.2
Centreville $20,445,000 $1,659(4) 7.3
Redmond $5,882,000 $1,673(5) 7.1
Somerset $30,277,000 $1,569(6) 8.1
(1) Multiple of next year's projected operating income.
(2) $1,682 per beginning subscriber; $1,690 per
average year 1 subscriber.
(3) $1,452 per beginning subscriber; $1,433 per
average year 1 subscriber.
(4) $1,659 per beginning subscriber; $1,633 per
average year 1 subscriber.
(5) $1,673 per beginning subscriber; $1,514 per
average year 1 subscriber.
(6) $1,569 per beginning subscriber; $1,566 per
average year 1 subscriber.
Although the range of values presented above is too wide from which
to derive any conclusive supporting evidence, the values of Burke,
California City, Centreville, Redmond, and Somerset at $17,685,000,
$2,791,000, $20,455,000, $5,882,000 and $30,277,000, respectively,
appear to be reasonable.
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E. CONCLUSIONS
Based on our analysis and investigation of the Systems, and its service
areas, it is our opinion that the fair market value of the subject
properties, as a going concern, free and clear of all liens and
encumbrances, as of December 31, 1996, is $17,685,000 for Burke County,
$2,791,000 for California City, $20,455,000 for Centreville, $5,882,000
for Redmond and $30,277,000 for Somerset. Our opinion is based on
information and data supplied by the Systems' management, our on-site
inspection of the Systems and the areas served and cable television
industry information. This valuation is expressly subject to the General
Assumptions and Limiting Conditions as defined in this report.
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F. GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal report is subject to the following general assumptions and
limiting conditions:
1. No investigation has been made of, and no responsibility is
assumed for, the legal description of the properties being valued
or legal matters, including title or encumbrances. Title to the
properties is assumed to be good and marketable unless otherwise
stated. The properties are assumed to be free and clear of any
liens, easements or encumbrances unless otherwise stated.
2. Information furnished by others, upon which all or portions of
this report is based, is believed to be reliable, but has not
been verified in all cases. No warranty is given as to the
accuracy of such information.
3. This report has been made only for the purpose stated and shall
not be used for any other purpose. Neither this report nor any
portions thereof (including without limitation any conclusions as
to value, the identity of Arthur Andersen LLP or any individuals
signing or associated with this report, or the professional
associations or organizations with which they affiliated) shall
be disseminated to third parties except federal and state taxing
authorities by any means without the prior written consent and
approval of Arthur Andersen LLP.
4. Neither Arthur Andersen LLP nor any individuals signing or
associated with this report shall be required by reason of this
report to give further consultation, to provide testimony, or
appear in court or other legal proceedings unless specific
arrangements therefor have been made.
5. This appraisal has been made in conformance with, and is subject
to, the requirements of the Principles of Appraisal Practice and
Code of Ethics of the American Society of Appraisers and the
Uniform Standards of Professional Appraisal Practice of The
Appraisal Foundation.
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[LOGO - ARTHUR ANDERSEN]
6. No responsibility is taken for changes in market conditions and
no obligation is assumed to revise this report to reflect events
or conditions which occur subsequent to the valuation date
hereof.
7. The date of value to which the conclusions and opinions expressed
in this report apply is set forth in this opinion letter. Our
value opinion is based on the purchasing power of the United
States' dollar as of this date.
8. It is assumed that all required licenses, certificates of
occupancy, consents, or other legislative or administrative
authority from any local, state, or national government or
private entity or organization have been, or can readily be,
obtained or renewed for any use on which the value estimates
provided in this report are based.
9. Full compliance with all applicable federal, state and local
zoning use, environmental and similar laws and regulations is
assumed, unless otherwise stated.
10. Responsible ownership and competent property management are
assumed.
11. The opinion of value is predicated on the financial structure
prevailing as of the date of this valuation.
12. We were not engaged nor are we qualified to detect the existence
of toxic or hazardous material or the presence of radio frequency
radiation which may or may not be present on or near the
properties of the appraised entity (the "Company"). The presence
of radio frequency radiation or potentially toxic or hazardous
substances such as asbestos, urea-formaldehyde foam insulation,
industrial wastes, etc. may affect the value of the Company. The
value estimates herein are predicted on the assumption that there
is no such radiation or material on, in, or near the Company's
properties that would cause a loss in value. No responsibility is
assumed for any such conditions or for any expertise or
engineering knowledge required to discover them. Falcon Classic
Cable Income Properties, L.P., Falcon Cable TV, Falcon Holdings
Group, L.P. should retain an expert in this field if further
information is desired.
34
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[LOGO - ARTHUR ANDERSEN]
13.a. Falcon Classic Cable Income Properties, L.P., Falcon Cable TV,
Falcon Holdings Group, L.P. shall indemnify and hold harmless
Arthur Andersen LLP, its affiliates, partners, agents and
employees from and against any losses, claims, damages or
liabilities (or actions in respect thereof) that may be asserted
by Conflicts Committee of Falcon Classic Cable Income Properties,
L.P., or any person or entity who may receive our report, except
to the extent of any losses, claims, damages or liabilities (or
actions in respect thereof) arising by reason of gross negligence
or willful misconduct of Arthur Andersen LLP in preparing the
report, and will reimburse Arthur Andersen LLP for all expenses
(including counsel fees) as they are incurred by Arthur Andersen
LLP in connection with investigating, preparing or defending any
such action or claim.
b. In any circumstance in which the foregoing indemnification is
held by a court to be unavailable to Arthur Andersen LLP, Falcon
Classic Cable Income Properties, L.P., Falcon Cable TV, Falcon
Holdings Group, L.P. and Arthur Andersen LLP shall contribute to
any aggregate losses, claims, damages or liabilities (including
the related fees and expenses) to which Falcon Classic Cable
Income Properties, L.P., Falcon Cable TV, Falcon Holdings Group,
L.P. and Arthur Andersen LLP may be subject in such proportion
that Arthur Andersen LLP shall be responsible only for that
portion represented by the percentage that the fees paid to
Arthur Andersen LLP for the portion of its services or work
product giving rise to the liabilities bears to the value of the
transaction giving rise to such liability.
14. This report is not a fairness opinion.
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[LOGO - ARTHUR ANDERSEN]
G. CERTIFICATION
The undersigned hereby certifies that we have no present or contemplated
future interest in the properties that are the subject of this report and
have no personal interest or bias with respect to the parties involved;
neither our employment nor our compensation in connection with this report
is in any way contingent upon the conclusions reached or values estimated;
the values and conclusions contained herein, limited only by the reported
assumptions and limiting conditions, reflect our personal, unbiased
professional judgment; this appraisal has been prepared in conformance
with the "Uniform Standards of Professional Appraisal Practice"; no person
other than the undersigned or those acknowledged in this report prepared
the analysis, values or conclusions set forth in this report; and to the
best of our knowledge and belief, the statements of fact contained in this
report are true and correct.
/S/Anthony P. Kern
--------------------------
Anthony P. Kern
Contributing Analysts:
John F. Lisciandro
Vance L. Wilson
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[LOGO - ARTHUR ANDERSEN]
EXHIBITS
A. Cable Television Miles, Homes and Subscribers
B. Service Rates
C. Revenue, Expenses, Operating Income
D. Capital Expenditures
E. Discounted Cash Flow Valuation
F. Valuation Matrix
37
45
EXHIBIT A-1
- ---------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
BURKE COUNTY, NC
AS OF DECEMBER 31, 1996
- ---------------------------------------------------
- ---------------------------------------------------
CABLE TELEVISION MILES, HOMES PASSED, SUBSCRIBERS
- ---------------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ----
BEGINNING MILES 731.1
NEW MILES 8.0 8.0 8.0 8.0 8.0 8.0 8.0
TOTAL 739.1 747.1 755.1 763.1 771.1 779.1 787.1
PERCENT GROWTH 1.09% 1.08% 1.07% 1.06% 1.05% 1.04% 1.03%
BEGINNING HOMES 18,986
NEW HOMES 150 150 150 150 150 150 150
AVERAGE HOMES 19,061 19,211 19,361 19,511 19,661 19,811 19,961
TOTAL 19,136 19,286 19,436 19,586 19,736 19,886 20,036
PERCENT GROWTH 0.8% 0.8% 0.8% 0.8% 0.8% 0.8% 0.8%
NEW BUILD DENSITY 19 19 19 19 19 19 19
AVERAGE DENSITY 26 26 26 26 26 26 25
BEGINNING BASIC 10,516 10,408 10,393 10,377 10,750 11,030 11,213
NEW BASIC (108) (15) (16) 374 280 183 85
AVERAGE BASIC 10,462 10,400 10,385 10,563 10,890 11,122 11,256
TOTAL 10,408 10,393 10,377 10,750 11,030 11,213 11,298
PENETRATION 54.4% 53.9% 53.4% 54.9% 55.9% 56.4% 56.4%
EXPANDED BASIC 9,097 8,951 8,939 8,924 9,246 9,487 9,644
NEW EXPANDED (146) (13) (14) 322 241 158 73
AVERAGE EXPANDED 9,024 8,945 8,931 9,085 9,366 9,565 9,681
TOTAL 8,951 8,939 8,924 9,246 9,487 9,644 9,717
PENETRATION 86.0% 86.0% 86.0% 86.0% 86.0% 86.0% 86.0%
BEGINNING PAY 4,840 4,686 4,627 4,620 4,787 4,911 4,993
NEW PAY (154) (59) (7) 166 125 82 38
AVERAGE PAY 4,763 4,657 4,624 4,703 4,849 4,952 5,012
TOTAL 4,686 4,627 4,620 4,787 4,911 4,993 5,030
PENETRATION 45.0% 44.5% 44.5% 44.5% 44.5% 44.5% 44.5%
BEGINNING CONVERTERS 15,346 15,188 15,166 15,142 15,688 16,096 16,364
NEW CONVERTERS (158) (22) (24) 546 408 267 123
AVERAGE CONVERTERS 15,267 15,177 15,154 15,415 15,892 16,230 16,425
TOTAL 15,188 15,166 15,142 15,688 16,096 16,364 16,487
PENETRATION 145.9% 145.9% 145.9% 145.9% 145.9% 145.9% 145.9%
BEGINNING REMOTES 10,922 10,810 10,794 10,777 11,165 11,456 11,646
NEW REMOTES (112) (15) (17) 388 290 190 88
AVERAGE REMOTES 10,866 10,802 10,786 10,971 11,311 11,551 11,690
TOTAL 10,810 10,794 10,777 11,165 11,456 11,646 11,734
PENETRATION 103.9% 103.9% 103.9% 103.9% 103.9% 103.9% 103.9%
ARTHUR ANDERSEN LLP
46
EXHIBIT A-2
- -------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CALIFORNIA CITY, CALIFORNIA
AS OF DECEMBER 31, 1996
- -------------------------------------------------
- -------------------------------------------------
CABLE TELEVISION MILES, HOMES PASSED, SUBSCRIBERS
- -------------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ----
BEGINNING MILES 90.1
NEW MILES 2.0 1.0 1.0 1.0 1.0 1.0 1.0
TOTAL 92.1 93.1 94.1 95.1 96.1 97.1 98.1
PERCENT GROWTH 2.22% 1.09% 1.07% 1.06% 1.05% 1.04% 1.03%
BEGINNING HOMES 2,858
NEW HOMES 80 40 40 40 40 40 40
AVERAGE HOMES 2,898 2,958 2,998 3,038 3,078 3,118 3,158
TOTAL 2,938 2,978 3,018 3,058 3,098 3,138 3,178
PERCENT GROWTH 2.8% 1.4% 1.3% 1.3% 1.3% 1.3% 1.3%
NEW BUILD DENSITY 40 40 40 40 40 40 40
AVERAGE DENSITY 32 32 32 32 32 32 32
BEGINNING BASIC 1,922 1,973 2,000 2,027 2,053 2,080 2,107
NEW BASIC 51 27 27 27 27 27 27
AVERAGE BASIC 1,947 1,986 2,013 2,040 2,067 2,094 2,121
TOTAL 1,973 2,000 2,027 2,053 2,080 2,107 2,134
PENETRATION 67.1% 67.1% 67.1% 67.1% 67.1% 67.1% 67.1%
EXPANDED BASIC 1,820 1,866 1,892 1,917 1,942 1,968 1,993
NEW EXPANDED 46 25 25 25 25 25 25
AVERAGE EXPANDED 1,843 1,879 1,904 1,930 1,955 1,981 2,006
TOTAL 1,866 1,892 1,917 1,942 1,968 1,993 2,019
PENETRATION 94.6% 94.6% 94.6% 94.6% 94.6% 94.6% 94.6%
BEGINNING PAY 839 851 863 875 886 898 909
NEW PAY 12 12 12 12 12 12 12
AVERAGE PAY 845 857 869 880 892 903 915
TOTAL 851 863 875 886 898 909 921
PENETRATION 43.2% 43.2% 43.2% 43.2% 43.2% 43.2% 43.2%
BEGINNING CONVERTERS 931 956 969 982 995 1,008 1,021
NEW CONVERTERS 25 13 13 13 13 13 13
AVERAGE CONVERTERS 943 962 975 988 1,001 1,014 1,027
TOTAL 956 969 982 995 1,008 1,021 1,034
PENETRATION 48.4% 48.4% 48.4% 48.4% 48.4% 48.4% 48.4%
BEGINNING REMOTES 802 823 834 846 857 868 879
NEW REMOTES 21 11 11 11 11 11 11
AVERAGE REMOTES 813 829 840 851 862 874 885
TOTAL 823 834 846 857 868 879 890
PENETRATION 41.7% 41.7% 41.7% 41.7% 41.7% 41.7% 41.7%
ARTHUR ANDERSEN LLP
47
EXHIBIT A-3
- ---------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CENTREVILLE, MARYLAND
AS OF DECEMBER 31, 1996
- ---------------------------------------------
- ---------------------------------------------
CABLE TELEVISION MILES, HOMES PASSED, SUBSCRIBERS
- ---------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ----
BEGINNING MILES 649.8
NEW MILES 5.0 5.0 5.0 5.0 5.0 5.0 5.0
TOTAL 654.8 659.8 664.8 669.8 674.8 679.8 684.8
PERCENT GROWTH 0.77% 0.76% 0.76% 0.75% 0.75% 0.74% 0.74%
BEGINNING HOMES 23,857
NEW HOMES 300 300 300 300 300 300 300
AVERAGE HOMES 24,007 24,307 24,607 24,907 25,207 25,507 25,807
TOTAL 24,157 24,457 24,757 25,057 25,357 25,657 25,957
PERCENT GROWTH 1.3% 1.2% 1.2% 1.2% 1.2% 1.2% 1.2%
NEW BUILD DENSITY 60 60 60 60 60 60 60
AVERAGE DENSITY 37 37 37 37 38 38 38
BEGINNING BASIC 12,325 12,722 13,002 13,409 13,822 14,621 15,051
NEW BASIC 397 280 407 413 799 430 306
AVERAGE BASIC 12,523 12,862 13,205 13,615 14,222 14,836 15,204
TOTAL 12,722 13,002 13,409 13,822 14,621 15,051 15,357
PENETRATION 52.7% 53.2% 54.2% 55.2% 57.7% 58.7% 59.2%
EXPANDED BASIC 11,863 12,245 12,514 12,906 13,304 14,073 14,487
NEW EXPANDED 382 270 392 398 769 413 294
AVERAGE EXPANDED 12,054 12,380 12,710 13,105 13,689 14,280 14,634
TOTAL 12,245 12,514 12,906 13,304 14,073 14,487 14,781
PENETRATION 96.3% 96.3% 96.3% 96.3% 96.3% 96.3% 96.3%
BEGINNING PAY 7,440 7,552 7,719 7,960 8,205 8,680 8,935
NEW PAY 112 166 242 245 475 255 182
AVERAGE PAY 7,496 7,635 7,839 8,083 8,443 8,807 9,026
TOTAL 7,552 7,719 7,960 8,205 8,680 8,935 9,117
PENETRATION 59.4% 59.4% 59.4% 59.4% 59.4% 59.4% 59.4%
BEGINNING CONVERTERS 1,838 1,897 1,939 2,000 2,061 2,180 2,245
NEW CONVERTERS 59 42 61 62 119 64 46
AVERAGE CONVERTERS 1,868 1,918 1,969 2,030 2,121 2,212 2,267
TOTAL 1,897 1,939 2,000 2,061 2,180 2,245 2,290
PENETRATION 14.9% 14.9% 14.9% 14.9% 14.9% 14.9% 14.9%
BEGINNING REMOTES 681 703 718 741 764 808 832
NEW REMOTES 22 15 22 23 44 24 17
AVERAGE REMOTES 692 711 730 752 786 820 840
TOTAL 703 718 741 764 808 832 849
PENETRATION 5.5% 5.5% 5.5% 5.5% 5.5% 5.5% 5.5%
ARTHUR ANDERSEN LLP
48
EXHIBIT A-4
- --------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
REDMOND, OREGON
AS OF DECEMBER 31, 1996
- --------------------------------------
- --------------------------------------
CABLE TELEVISION MILES, HOMES PASSED, SUBSCRIBERS
- --------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ----
BEGINNING MILES 170.0
NEW MILES 29.0 6.0 6.0 6.0 6.0 6.0 6.0
TOTAL 199.0 205.0 211.0 217.0 223.0 229.0 235.0
PERCENT GROWTH 17.06% 3.02% 2.93% 2.84% 2.76% 2.69% 2.62%
BEGINNING HOMES 7,252
NEW HOMES 2,310 300 300 300 300 300 300
AVERAGE HOMES 8,407 9,712 10,012 10,312 10,612 10,912 11,212
TOTAL 9,562 9,862 10,162 10,462 10,762 11,062 11,362
PERCENT GROWTH 31.9% 3.1% 3.0% 3.0% 2.9% 2.8% 2.7%
NEW BUILD DENSITY 80 50 50 50 50 50 50
AVERAGE DENSITY 48 48 48 48 48 48 48
BEGINNING BASIC 3,516 4,253 4,190 4,216 4,288 4,411 4,534
NEW BASIC 737 (64) 26 72 123 123 123
AVERAGE BASIC 3,885 4,222 4,203 4,252 4,349 4,472 4,595
TOTAL 4,253 4,190 4,216 4,288 4,411 4,534 4,657
PENETRATION 44.5% 42.5% 41.5% 41.0% 41.0% 41.0% 41.0%
EXPANDED BASIC 2,847 3,380 3,288 3,287 3,343 3,439 3,535
NEW EXPANDED 533 (93) (1) 56 96 96 96
AVERAGE EXPANDED 3,114 3,334 3,287 3,315 3,391 3,487 3,583
TOTAL 3,380 3,288 3,287 3,343 3,439 3,535 3,631
PENETRATION 79.5% 78.5% 78.0% 78.0% 78.0% 78.0% 78.0%
BEGINNING PAY 777 897 863 868 883 909 934
NEW PAY 120 (34) 5 15 25 25 25
AVERAGE PAY 837 880 866 876 896 921 947
TOTAL 897 863 868 883 909 934 959
PENETRATION 21.1% 20.6% 20.6% 20.6% 20.6% 20.6% 20.6%
BEGINNING CONVERTERS 1,050 1,270 1,251 1,259 1,280 1,317 1,354
NEW CONVERTERS 220 (19) 8 22 37 37 37
AVERAGE CONVERTERS 1,160 1,261 1,255 1,270 1,299 1,336 1,372
TOTAL 1,270 1,251 1,259 1,280 1,317 1,354 1,391
PENETRATION 29.9% 29.9% 29.9% 29.9% 29.9% 29.9% 29.9%
BEGINNING REMOTES 870 1,052 1,037 1,043 1,061 1,091 1,122
NEW REMOTES 182 (16) 6 18 30 30 30
AVERAGE REMOTES 961 1,045 1,040 1,052 1,076 1,107 1,137
TOTAL 1,052 1,037 1,043 1,061 1,091 1,122 1,152
PENETRATION 24.7% 24.7% 24.7% 24.7% 24.7% 24.7% 24.7%
ARTHUR ANDERSEN LLP
49
EXHIBIT A-5
- ------------------------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SOMERSET, KY
AS OF DECEMBER 31, 1996
- ------------------------------------------------------------------
- ------------------------------------------------------------------
CABLE TELEVISION MILES, HOMES PASSED, SUBSCRIBERS
- ------------------------------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ----
BEGINNING MILES 834.5
NEW MILES 1.9 8.5 8.5 8.5 8.5 8.5 8.5
TOTAL 836.4 844.9 853.4 861.9 870.4 878.9 887.5
PERCENT GROWTH 0.23% 1.02% 1.01% 1.00% 0.99% 0.98% 0.97%
BEGINNING HOMES 22,060
NEW HOMES 50 225 225 225 225 225 225
AVERAGE HOMES 22,085 22,223 22,448 22,673 22,898 23,123 23,348
TOTAL 22,110 22,335 22,560 22,785 23,010 23,235 23,460
PERCENT GROWTH 0.2% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
NEW BUILD DENSITY 26 26 26 26 26 26 26
AVERAGE DENSITY 26 26 26 26 26 26 26
BEGINNING BASIC 19,296 19,384 19,626 19,869 20,135 20,449 20,696
NEW BASIC 88 242 243 267 314 246 200
AVERAGE BASIC 19,340 19,505 19,747 20,002 20,292 20,572 20,796
TOTAL 19,384 19,626 19,869 20,135 20,449 20,696 20,896
PENETRATION 87.7% 87.9% 88.1% 88.4% 88.9% 89.1% 89.1%
EXPANDED BASIC 18,823 18,870 19,106 19,342 19,601 19,907 20,147
NEW EXPANDED 47 236 236 259 306 240 195
AVERAGE EXPANDED 18,847 18,988 19,224 19,472 19,754 20,027 20,244
TOTAL 18,870 19,106 19,342 19,601 19,907 20,147 20,342
PENETRATION 97.3% 97.3% 97.3% 97.3% 97.3% 97.3% 97.3%
BEGINNING PAY 3,914 3,874 3,922 3,971 4,084 4,209 4,281
NEW PAY (40) 48 49 114 125 71 41
AVERAGE PAY 3,894 3,898 3,946 4,027 4,147 4,245 4,301
TOTAL 3,874 3,922 3,971 4,084 4,209 4,281 4,322
PENETRATION 20.0% 20.0% 20.0% 20.3% 20.6% 20.7% 20.7%
BEGINNING CONVERTERS 5,119 5,142 5,207 5,271 7,355 8,492 9,629
NEW CONVERTERS 23 64 64 2,084 1,137 1,137 1,138
AVERAGE CONVERTERS 5,131 5,174 5,239 6,313 7,924 9,061 10,198
TOTAL 5,142 5,207 5,271 7,355 8,492 9,629 10,767
PENETRATION 26.5% 26.5% 26.5% 36.5% 41.5% 46.5% 51.5%
BEGINNING REMOTES 4,622 4,643 4,701 4,759 6,837 7,966 9,096
NEW REMOTES 21 58 58 2077 1129 1131 1133
AVERAGE REMOTES 4,633 4,672 4,730 5,798 7,401 8,531 9,663
TOTAL 4,643 4,701 4,759 6,837 7,966 9,096 10,229
PENETRATION 24.0% 24.0% 24.0% 34.0% 39.0% 44.0% 49.0%
ARTHUR ANDERSEN LLP
50
EXHIBIT B-1
- ------------------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
BURKE COUNTY, NC
AS OF DECEMBER 31, 1996
- ------------------------------------------------------------
- ------------------------------------------------------------
SERVICE RATES
- ------------------------------------------------------------
CURRENT RATES
BASIC (AVG.) $16.96
EXPANDED BASIC (AVG.) $6.20
PAY (AVG) $7.51
CONVERTERS $2.50
REMOTES $0.03
INSTALLATION $45.00
RECONNECT $45.00
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ----
RATE INCREASES
BASIC 0.0% 4.0% 4.0% 4.0% 6.0% 4.0% 4.0%
EXPANDED BASIC 0.0% 4.0% 4.0% 4.0% 6.0% 4.0% 4.0%
PAY 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
CONVERTERS 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
REMOTES 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
INSTALLATION 0.0% 4.0% 0.0% 4.0% 0.0% 4.0% 0.0%
RECONNECT 0.0% 4.0% 0.0% 4.0% 0.0% 4.0% 0.0%
AVERAGE RATES
BASIC $16.96 $17.64 $18.35 $19.08 $20.23 $21.04 $21.88
EXPANDED BASIC $6.20 $6.45 $6.70 $6.97 $7.39 $7.69 $7.99
PAY $7.51 $7.51 $7.51 $7.51 $7.51 $7.51 $7.51
CONVERTERS $2.50 $2.60 $2.70 $2.81 $2.92 $3.04 $3.16
REMOTES $0.03 $0.03 $0.03 $0.04 $0.04 $0.04 $0.04
INSTALLATION $45.00 $46.80 $46.80 $48.67 $48.67 $50.62 $50.62
RECONNECT $45.00 $46.80 $46.80 $48.67 $48.67 $50.62 $50.62
BASIC CHURN RATE (EST) 36% 36% 36% 36% 36% 36% 36%
ARTHUR ANDERSEN LLP
51
EXHIBIT B-2
- -------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CALIFORNIA CITY, CALIFORNIA
AS OF DECEMBER 31, 1996
- -------------------------------------------
- -------------------------------------------
SERVICE RATES
- -------------------------------------------
CURRENT RATES
BASIC (AVG.) $15.77
EXPANDED BASIC (AVG.) $6.00
PAY (AVG.) $8.14
CONVERTERS $4.46
REMOTES $0.34
INSTALLATION $45.00
RECONNECT $45.00
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ----
RATE INCREASES
BASIC 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
EXPANDED BASIC 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
PAY 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
CONVERTERS 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
REMOTES 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
INSTALLATION 0.0% 4.0% 0.0% 4.0% 0.0% 4.0% 0.0%
RECONNECT 0.0% 4.0% 0.0% 4.0% 0.0% 4.0% 0.0%
AVERAGE RATES
BASIC $15.77 $16.40 $17.05 $17.74 $18.45 $19.18 $19.95
EXPANDED BASIC $6.00 $6.24 $6.49 $6.75 $7.02 $7.30 $7.60
PAY $8.14 $8.14 $8.14 $8.14 $8.14 $8.14 $8.14
CONVERTERS $4.46 $4.64 $4.83 $5.02 $5.22 $5.43 $5.65
REMOTES $0.34 $0.35 $0.37 $0.38 $0.40 $0.41 $0.43
INSTALLATION $45.00 $46.80 $46.80 $48.67 $48.67 $50.62 $50.62
RECONNECT $45.00 $46.80 $46.80 $48.67 $48.67 $50.62 $50.62
BASIC CHURN RATE (EST) 24% 24% 24% 24% 24% 24% 24%
ARTHUR ANDERSEN LLP
52
EXHIBIT B-3
- -------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CENTREVILLE, MARYLAND
AS OF DECEMBER 31, 1996
- -------------------------------------------
- -------------------------------------------
SERVICE RATES
- -------------------------------------------
CURRENT RATES
BASIC (AVG.) $20.60
EXPANDED BASIC (AVG.) $3.52
PAY (AVG.) $8.54
CONVERTERS $1.99
REMOTES $0.68
INSTALLATION $45.00
RECONNECT $45.00
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ----
RATE INCREASES
BASIC 0.0% 4.0% 4.0% 5.0% 7.0% 4.0% 4.0%
EXPANDED BASIC 0.0% 4.0% 4.0% 5.0% 7.0% 4.0% 4.0%
PAY 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
CONVERTERS 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
REMOTES 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
INSTALLATION 0.0% 4.0% 0.0% 4.0% 0.0% 4.0% 0.0%
RECONNECT 0.0% 4.0% 0.0% 4.0% 0.0% 4.0% 0.0%
AVERAGE RATES
BASIC $20.60 $21.43 $22.29 $23.40 $25.04 $26.04 $27.08
EXPANDED BASIC $3.52 $3.67 $3.81 $4.00 $4.28 $4.45 $4.63
PAY $8.54 $8.54 $8.54 $8.54 $8.54 $8.54 $8.54
CONVERTERS $1.99 $2.07 $2.16 $2.24 $2.33 $2.43 $2.52
REMOTES $0.68 $0.71 $0.73 $0.76 $0.79 $0.83 $0.86
INSTALLATION $45.00 $46.80 $46.80 $48.67 $48.67 $50.62 $50.62
RECONNECT $45.00 $46.80 $46.80 $48.67 $48.67 $50.62 $50.62
BASIC CHURN RATE (EST) 32% 32% 32% 32% 32% 32% 32%
ARTHUR ANDERSEN LLP
53
EXHIBIT B-4
- -------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
REDMOND, OREGON
AS OF DECEMBER 31, 1996
- -------------------------------------------
- -------------------------------------------
SERVICE RATES
- -------------------------------------------
CURRENT RATES
BASIC (AVG.) $22.23
EXPANDED BASIC (AVG.) $2.05
PAY (AVG.) $6.16
CONVERTERS $2.57
REMOTES $0.22
INSTALLATION $45.00
RECONNECT $45.00
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ----
RATE INCREASES
BASIC 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
EXPANDED BASIC 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
PAY 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
CONVERTERS 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
REMOTES 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
INSTALLATION 0.0% 4.0% 0.0% 4.0% 0.0% 4.0% 0.0%
RECONNECT 0.0% 4.0% 0.0% 4.0% 0.0% 4.0% 0.0%
AVERAGE RATES
BASIC $22.23 $23.12 $24.04 $25.00 $26.00 $27.04 $28.12
EXPANDED BASIC $2.05 $2.14 $2.22 $2.31 $2.40 $2.50 $2.60
PAY $6.16 $6.16 $6.16 $6.16 $6.16 $6.16 $6.16
CONVERTERS $2.57 $2.67 $2.78 $2.89 $3.00 $3.13 $3.25
REMOTES $0.22 $0.23 $0.24 $0.25 $0.26 $0.27 $0.28
INSTALLATION $45.00 $46.80 $46.80 $48.67 $48.67 $50.62 $50.62
RECONNECT $45.00 $46.80 $46.80 $48.67 $48.67 $50.62 $50.62
BASIC CHURN RATE (EST) 31% 31% 31% 31% 31% 31% 31%
ARTHUR ANDERSEN LLP
54
EXHIBIT B-5
- -------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SOMERSET, KY
AS OF DECEMBER 31, 1996
- -------------------------------------------
- -------------------------------------------
SERVICE RATES
- -------------------------------------------
CURRENT RATES
BASIC (AVG.) $19.24
EXPANDED BASIC (AVG.) $2.37
PAY (AVG.) $8.71
CONVERTERS $1.58
REMOTES $0.33
INSTALLATION $45.00
RECONNECT $45.00
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ----
RATE INCREASES
BASIC 0.0% 4.0% 4.0% 4.0% 7.0% 4.0% 4.0%
EXPANDED BASIC 0.0% 4.0% 4.0% 4.0% 7.0% 4.0% 4.0%
PAY 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
CONVERTERS 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
REMOTES 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
INSTALLATION 0.0% 4.0% 0.0% 4.0% 0.0% 4.0% 0.0%
RECONNECT 0.0% 4.0% 0.0% 4.0% 0.0% 4.0% 0.0%
AVERAGE RATES
BASIC $19.24 $20.01 $20.81 $21.64 $23.16 $24.08 $25.05
EXPANDED BASIC $2.37 $2.46 $2.56 $2.66 $2.85 $2.96 $3.08
PAY $8.71 $8.71 $8.71 $8.71 $8.71 $8.71 $8.71
CONVERTERS $1.58 $1.65 $1.71 $1.78 $1.85 $1.93 $2.00
REMOTES $0.33 $0.35 $0.36 $0.38 $0.39 $0.41 $0.42
INSTALLATION $45.00 $46.80 $46.80 $48.67 $48.67 $50.62 $50.62
RECONNECT $45.00 $46.80 $46.80 $48.67 $48.67 $50.62 $50.62
BASIC CHURN RATE (EST) 26% 26% 26% 26% 26% 26% 26%
ARTHUR ANDERSEN LLP
55
EXHIBIT C-1
- ------------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
BURKE COUNTY, NC
AS OF DECEMBER 31, 1996
- ------------------------------------------------------
- ------------------------------------------------------
REVENUE, EXPENSE, OPERATING INCOME
- ------------------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000
----------- ----------- ----------- -----------
REVENUE
BASIC $ 2,129,647 $ 2,201,800 $ 2,286,438 $ 2,418,828
EXPANDED BASIC 671,189 691,908 718,505 760,108
PAY 429,170 419,594 416,623 423,795
CONVERTERS 457,592 473,095 491,281 519,728
REMOTES 4,155 4,295 4,460 4,719
INSTALLATIONS 4,708 4,867 4,860 18,197
RECONNECT 84,741 87,612 87,481 92,546
ADDITIONAL TIER 988,460 1,027,999 1,069,119 1,111,883
ADVERTISING 175,000 201,250 231,438 277,725
PAY PER VIEW 110,000 115,500 121,275 133,403
MISCELLANEOUS 212,296 219,573 228,122 241,959
----------- ----------- ----------- -----------
TOTAL $ 5,266,958 $ 5,447,493 $ 5,659,602 $ 6,002,891
REVENUE GROWTH 0 3.31% 3.75% 5.72%
REVENUE PER SUB./MONTH $ 41.95 $ 43.65 $ 45.42 $ 47.36
EXPENSES
TECHNICAL & OPERATIONS 1,003,124 1,039,779 1,079,648 1,129,499
GENERAL & ADMINISTRATIVE 487,195 500,191 515,451 539,743
SALES & MARKETING 95,157 103,364 112,879 127,738
PROGRAMMING 841,520 852,083 869,333 907,390
----------- ----------- ----------- -----------
TOTAL EXPENSE $ 2,426,995 $ 2,495,417 $ 2,577,311 $ 2,704,371
OPERATING INCOME $ 2,839,963 $ 2,952,076 $ 3,082,291 $ 3,298,520
OPERATING MARGIN 53.9% 54.2% 54.5% 54.9 %
OPERTAING INCOME GROWTH 0 3.80% 4.22% 6.56%
OPERATING INCOME/SUB./MONTH $ 22.62 $ 23.65 $ 24.73 $ 26.02
YEAR ENDING DECEMBER 31, 2001 2002 2003 TOTAL
----------- ----------- ----------- -----------
REVENUE
BASIC $ 2,643,275 $ 2,807,437 $ 2,954,892 $17,442,318
EXPANDED BASIC 830,640 882,227 928,564 5,483,141
PAY 436,905 446,192 451,565 3,023,844
CONVERTERS 557,238 591,845 622,931 3,713,710
REMOTES 5,059 5,373 5,656 33,717
INSTALLATIONS 13,613 9,277 4,281 59,804
RECONNECT 95,409 101,334 102,555 651,678
ADDITIONAL TIER 1,156,359 1,202,613 1,250,717 7,807,150
ADVERTISING 347,156 373,193 391,853 1,997,614
PAY PER VIEW 146,743 157,748 165,636 950,305
MISCELLANEOUS 261,761 276,244 288,903 1,728,858
----------- ----------- ----------- -----------
TOTAL $ 6,494,157 $ 6,853,484 $ 7,167,554 $42,892,138
REVENUE GROWTH 7.56% 5.24% 4.38%
REVENUE PER SUB./MONTH $ 49.69 $ 51.35 $ 53.07
EXPENSES
TECHNICAL & OPERATIONS 1,189,540 1,244,034 1,296,342 $ 7,981,965
GENERAL & ADMINISTRATIVE 572,314 600,444 625,154 3,840,493
SALES & MARKETING 149,682 159,606 167,135 915,562
PROGRAMMING 989,323 1,035,074 1,071,970 6,566,693
----------- ----------- ----------- -----------
TOTAL EXPENSE $ 2,900,859 $ 3,039,158 $ 3,160,602 $19,304,713
OPERATING INCOME $ 3,593,298 $ 3,814,326 $ 4,006,951 $23,587,425
OPERATING MARGIN 55.3% 55.7% 55.9%
OPERTAING INCOME GROWTH 8.20% 5.79% 4.81%
OPERATING INCOME/SUB./MONTH $ 27.50 $ 28.58 $ 29.67
ARTHUR ANDERSEN LLP
56
EXHIBIT C-2
- --------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CALIFORNIA CITY, CALIFORNIA
AS OF DECEMBER 31, 1996
- --------------------------------------------
- --------------------------------------------
REVENUE, EXPENSE, OPERATING INCOME
- --------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000
---------- ---------- ---------- ----------
REVENUE
BASIC $ 368,460 $ 390,845 $ 411,975 $ 434,171
EXPANDED BASIC 132,776 140,769 148,379 156,373
PAY 82,514 83,682 84,814 85,946
CONVERTERS 50,520 53,589 56,486 59,529
REMOTES 3,307 3,508 3,698 3,897
INSTALLATIONS 2,289 1,257 1,257 1,307
RECONNECT 14,912 15,818 16,032 16,895
ADDITIONAL TIER 62,494 65,878 69,434 73,168
ADVERTISING 0 0 0 0
FCC USER FEE PASS THROUGH 995 1,055 1,112 1,172
MISCELLANEOUS 35,913 37,820 39,659 41,623
---------- ---------- ---------- ----------
TOTAL $ 754,179 $ 794,221 $ 832,846 $ 874,082
REVENUE GROWTH 0 5.04% 4.64% 4.72%
REVENUE PER SUB./MONTH $ 32.27 $ 33.32 $ 34.48 $ 35.71
EXPENSES
TECHNICAL & OPERATIONS 129,495 135,213 140,972 146,981
GENERAL & ADMINISTRATIVE 84,317 88,017 91,527 95,182
SALES & MARKETING 16,465 17,297 18,057 18,847
PROGRAMMING 138,272 143,761 148,803 154,023
---------- ---------- ---------- ----------
TOTAL EXPENSE $ 368,549 $ 384,288 $ 399,359 $ 415,034
OPERATING INCOME $ 385,630 $ 409,933 $ 433,487 $ 459,048
OPERATING MARGIN 51.1% 51.6% 52.0% 52.5%
OPERATING INCOME GROWTH 0 5.93% 5.43% 5.57%
OPERATING INCOME/SUB./MONTH $ 16.50 $ 17.20 $ 17.94 $ 18.75
YEAR ENDING DECEMBER 31, 2001 2002 2003 TOTAL
---------- ---------- ---------- ----------
REVENUE
BASIC $ 457,483 $ 481,965 $ 507,674 $3,052,572
EXPANDED BASIC 164,770 173,587 182,847 1,099,501
PAY 87,077 88,209 89,340 601,583
CONVERTERS 62,726 66,083 69,607 418,540
REMOTES 4,106 4,326 4,557 27,399
INSTALLATIONS 1,307 1,360 1,360 10,137
RECONNECT 17,118 18,034 18,265 117,073
ADDITIONAL TIER 77,090 81,209 85,534 514,807
ADVERTISING 0 0 0 0
FCC USER FEE PASS THROUGH 1,235 1,301 1,371 8,242
MISCELLANEOUS 43,646 45,804 48,028 292,493
---------- ---------- ---------- ----------
TOTAL $ 916,557 $ 961,877 $1,008,582 $6,142,345
REVENUE GROWTH 4.63% 4.71% 4.63%
REVENUE PER SUB./MONTH $ 36.95 $ 38.28 $ 39.63
EXPENSES
TECHNICAL & OPERATIONS 153,211 159,711 166,450 $1,032,031
GENERAL & ADMINISTRATIVE 98,968 102,911 106,993 667,915
SALES & MARKETING 19,668 20,521 21,408 132,264
PROGRAMMING 159,427 165,020 170,811 1,080,118
---------- ---------- ---------- ----------
TOTAL EXPENSE $ 431,273 $ 448,163 $ 465,663 $2,912,329
OPERATING INCOME $ 485,284 $ 513,714 $ 542,920 $3,230,016
OPERATING MARGIN 52.9% 53.4% 53.8%
OPERATING INCOME GROWTH 5.41% 5.53% 5.38%
OPERATING INCOME/SUB./MONTH $ 19.57 $ 20.45 $ 21.34
ARTHUR ANDERSEN LLP
57
EXHIBIT C-3
- --------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CENTREVILLE, MARYLAND
AS OF DECEMBER 31, 1996
- --------------------------------------------
- --------------------------------------------
REVENUE, EXPENSE, OPERATING INCOME
- --------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000
----------- ----------- ----------- -----------
REVENUE
BASIC $ 3,096,364 $ 3,307,238 $ 3,531,431 $ 3,823,145
EXPANDED BASIC 509,840 544,562 581,477 629,510
PAY 768,518 782,797 803,713 828,670
CONVERTERS 44,700 47,744 50,980 54,666
REMOTES 5,633 6,017 6,425 6,889
INSTALLATIONS 17,845 13,117 19,050 20,104
RECONNECT 53,966 57,642 59,182 63,460
ADDITIONAL TIER 771,011 811,809 854,638 908,244
ADVERTISING 140,000 154,000 169,400 186,340
FRANCHISE PASS THROUGH 117,662 125,675 134,194 145,279
MISCELLANEOUS 298,379 315,932 335,367 359,981
----------- ----------- ----------- -----------
TOTAL $ 5,823,918 $ 6,166,532 $ 6,545,857 $ 7,026,289
REVENUE GROWTH 0 5.56% 5.79% 6.84%
REVENUE PER SUB./MONTH $ 38.75 $ 39.95 $ 41.31 $ 43.00
EXPENSES
TECHNICAL & OPERATIONS 1,197,944 1,252,330 1,310,016 1,374,835
GENERAL & ADMINISTRATIVE 410,748 432,759 456,072 482,920
SALES & MARKETING 177,010 186,807 196,759 212,479
PROGRAMMING 1,231,498 1,287,019 1,348,501 1,447,919
----------- ----------- ----------- -----------
TOTAL EXPENSE $ 3,017,200 $ 3,158,916 $ 3,311,348 $ 3,518,153
OPERATING INCOME $ 2,806,718 $ 3,007,617 $ 3,234,510 $ 3,508,136
OPERATING MARGIN 48.2% 48.8% 49.4% 49.9%
OPERATING INCOME GROWTH 0 6.68% 7.01% 7.80%
OPERATING INCOME/SUB./MONTH $ 18.68 $ 19.49 $ 20.41 $ 21.47
YEAR ENDING DECEMBER 31, 2001 2002 2003 TOTAL
----------- ----------- ----------- -----------
REVENUE
BASIC $ 4,272,908 $ 4,635,832 $ 4,940,744 $27,607,661
EXPANDED BASIC 703,567 763,325 813,531 4,545,814
PAY 865,567 902,966 925,343 5,877,573
CONVERTERS 59,384 64,428 68,666 390,568
REMOTES 7,484 8,119 8,653 49,220
INSTALLATIONS 38,909 21,744 15,478 146,247
RECONNECT 66,286 71,916 73,698 446,150
ADDITIONAL TIER 992,648 1,044,568 1,099,053 6,481,971
ADVERTISING 204,974 225,471 242,382 1,322,567
FRANCHISE PASS THROUGH 162,371 176,162 187,748 1,049,091
MISCELLANEOUS 398,201 427,385 452,266 2,587,510
----------- ----------- ----------- -----------
TOTAL $ 7,772,298 $ 8,341,915 $ 8,827,562 $50,504,372
REVENUE GROWTH 9.60% 6.83% 5.50%
REVENUE PER SUB./MONTH $ 45.54 $ 46.86 $ 48.38
EXPENSES
TECHNICAL & OPERATIONS 1,456,425 1,532,216 1,601,974 $ 9,725,741
GENERAL & ADMINISTRATIVE 518,524 553,812 582,879 3,437,714
SALES & MARKETING 244,390 250,737 262,115 1,530,297
PROGRAMMING 1,618,577 1,725,068 1,806,404 10,464,988
----------- ----------- ----------- -----------
TOTAL EXPENSE $ 3,837,916 $ 4,061,834 $ 4,253,372 $25,158,739
OPERATING INCOME $ 3,934,382 $ 4,280,081 $ 4,574,189 $25,345,633
OPERATING MARGIN 50.6% 51.3% 51.8%
OPERATING INCOME GROWTH 10.83% 8.08% 6.43%
OPERATING INCOME/SUB./MONTH $ 23.05 $ 24.04 $ 25.07
ARTHUR ANDERSEN LLP
58
EXHIBIT C-4
- --------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
REDMOND, OREGON
AS OF DECEMBER 31, 1996
- --------------------------------------------
- --------------------------------------------
REVENUE, EXPENSE, OPERATING INCOME
- --------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000
REVENUE
BASIC $ 1,036,152 $ 1,171,036 $ 1,212,402 $ 1,275,595
EXPANDED BASIC 76,710 85,425 87,598 91,870
PAY 61,857 65,036 63,961 64,707
CONVERTERS 35,758 40,413 41,841 44,021
REMOTES 2,546 2,877 2,979 3,134
INSTALLATIONS 8,297 1,976 1,967 2,069
RECONNECT 8,038 9,085 9,044 9,515
ADDITIONAL TIER 301,290 324,739 348,002 372,607
ADVERTISING 70,000 73,500 77,175 81,034
FCC USER FEE PASS THROUGH 2,072 2,342 2,425 2,551
MISCELLANEOUS 80,136 88,821 92,370 97,355
----------- ----------- ----------- -----------
TOTAL $ 1,682,856 $ 1,865,250 $ 1,939,763 $ 2,044,458
REVENUE GROWTH 0 9.78% 3.84% 5.12%
REVENUE PER SUB./MONTH $ 36.10 $ 36.82 $ 38.46 $ 40.07
EXPENSES
TECHNICAL & OPERATIONS 296,082 321,208 336,230 354,236
GENERAL & ADMINISTRATIVE 224,348 245,971 252,943 263,286
SALES & MARKETING 125,315 135,900 140,977 147,454
PROGRAMMING 212,954 235,609 239,801 248,602
----------- ----------- ----------- -----------
TOTAL EXPENSE $ 858,699 $ 938,687 $ 969,951 $ 1,013,578
OPERATING INCOME $ 824,157 $ 926,563 $ 969,812 $ 1,030,880
OPERATING MARGIN 49.0% 49.7% 50.0% 50.4%
OPERTAING INCOME GROWTH 0 11.05% 4.46% 5.92%
OPERATING INCOME/SUB./MONTH $ 17.68 $ 18.29 $ 19.23 $ 20.21
YEAR ENDING DECEMBER 31, 2001 2002 2003 TOTAL
----------- ----------- -----------
REVENUE
BASIC $ 1,357,055 $ 1,451,236 $ 1,550,780 $ 9,054,256
EXPANDED BASIC 97,737 104,520 111,689 655,547
PAY 66,191 68,062 69,934 459,748
CONVERTERS 46,833 50,083 53,518 312,467
REMOTES 3,334 3,565 3,810 22,245
INSTALLATIONS 4,488 4,668 4,668 28,132
RECONNECT 9,733 10,409 10,695 66,520
ADDITIONAL TIER 398,623 426,125 455,188 2,626,575
ADVERTISING 85,085 89,340 93,807 569,941
FCC USER FEE PASS THROUGH 2,714 2,902 3,102 18,109
MISCELLANEOUS 103,590 110,545 117,859 690,677
----------- ----------- ----------- -----------
TOTAL $ 2,175,384 $ 2,321,455 $ 2,475,049 $14,504,216
REVENUE GROWTH 6.02% 6.29% 6.21%
REVENUE PER SUB./MONTH $ 41.68 $ 43.26 $ 44.89
EXPENSES
TECHNICAL & OPERATIONS 374,801 397,166 420,556 $ 2,500,279
GENERAL & ADMINISTRATIVE 276,384 291,258 306,789 1,860,979
SALES & MARKETING 155,097 163,568 172,438 1,040,749
PROGRAMMING 260,634 274,704 289,350 1,761,653
----------- ----------- ----------- -----------
TOTAL EXPENSE $ 1,066,915 $ 1,126,696 $ 1,189,133 $ 7,163,660
OPERATING INCOME $ 1,108,469 $ 1,194,759 $ 1,285,916 $ 7,340,556
OPERATING MARGIN 51.0% 51.5% 52.0%
OPERTAING INCOME GROWTH 7.00% 7.22% 7.09%
OPERATING INCOME/SUB./MONTH $ 21.24 $ 22.26 $ 23.32
ARTHUR ANDERSEN LLP
59
EXHIBIT C-5
- --------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SOMERSET, KY
AS OF DECEMBER 31, 1996
- --------------------------------------------
- --------------------------------------------
REVENUE, EXPENSE, OPERATING INCOME
- --------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000
----------- ----------- ----------- -----------
REVENUE
BASIC $ 4,465,358 $ 4,683,579 $ 4,931,450 $ 5,194,851
EXPANDED BASIC 534,919 560,486 590,149 621,671
PAY 406,842 407,262 412,323 420,796
CONVERTERS 97,518 102,283 107,697 134,974
REMOTES 18,570 19,478 20,509 26,144
INSTALLATIONS 3,958 11,322 11,364 12,972
RECONNECT 100,394 105,300 106,609 112,303
ADDITIONAL TIER 1,199,773 1,260,462 1,324,086 1,390,783
ADVERTISING 385,000 442,750 487,025 535,728
PAY PER VIEW 12,000 13,200 19,800 29,700
MISCELLANEOUS 270,912 285,230 300,413 317,997
----------- ----------- ----------- -----------
TOTAL $ 7,495,245 $ 7,891,352 $ 8,311,425 $ 8,797,917
REVENUE GROWTH 0 5.02% 5.05% 5.53%
REVENUE PER SUB./MONTH $ 32.30 $ 33.72 $ 35.07 $ 36.65
EXPENSES
TECHNICAL & OPERATIONS 1,672,516 1,743,696 1,819,082 1,899,684
GENERAL & ADMINISTRATIVE 637,808 663,156 691,353 721,641
SALES & MARKETING 264,171 291,758 314,502 339,302
PROGRAMMING 1,201,237 1,239,936 1,289,726 1,345,591
----------- ----------- ----------- -----------
TOTAL EXPENSE $ 3,775,732 $ 3,938,547 $ 4,114,663 $ 4,306,218
OPERATING INCOME $ 3,719,513 $ 3,952,805 $ 4,196,762 $ 4,491,700
OPERATING MARGIN 49.6% 50.1% 50.5% 51.1%
OPERATING INCOME GROWTH 0 5.90% 5.81% 6.57%
OPERATING INCOME/SUB./MONTH $ 16.03 $ 16.89 $ 17.71 $ 18.71
YEAR ENDING DECEMBER 31, 2001 2002 2003 TOTAL
----------- ----------- -----------
REVENUE
BASIC $ 5,639,136 $ 5,945,670 $ 6,250,651 $37,110,694
EXPANDED BASIC 674,838 711,522 748,019 4,441,604
PAY 433,265 443,527 449,424 2,973,439
CONVERTERS 176,186 209,529 245,269 1,073,456
REMOTES 34,708 41,607 49,012 210,026
INSTALLATIONS 15,277 12,474 10,144 77,512
RECONNECT 113,933 120,126 121,430 780,096
ADDITIONAL TIER 1,502,833 1,578,230 1,657,253 9,913,421
ADVERTISING 575,907 604,702 634,938 3,666,050
PAY PER VIEW 103,950 166,320 216,216 561,186
MISCELLANEOUS 347,626 368,764 389,338 2,280,281
----------- ----------- ----------- -----------
TOTAL $ 9,617,660 $10,202,471 $10,771,694 $63,087,764
REVENUE GROWTH 8.52% 5.73% 5.28%
REVENUE PER SUB./MONTH $ 39.50 $ 41.33 $ 43.16
EXPENSES
TECHNICAL & OPERATIONS 1,995,945 2,084,512 2,174,136 $13,389,572
GENERAL & ADMINISTRATIVE 758,533 792,716 826,171 5,091,378
SALES & MARKETING 361,073 378,387 396,130 2,345,324
PROGRAMMING 1,499,642 1,593,786 1,677,059 9,846,978
----------- ----------- ----------- -----------
TOTAL EXPENSE $ 4,615,192 $ 4,849,402 $ 5,073,497 $30,673,252
OPERATING INCOME $ 5,002,468 $ 5,353,069 $ 5,698,197 $32,414,512
OPERATING MARGIN 52.0% 52.5% 52.9%
OPERATING INCOME GROWTH 10.21% 6.55% 6.06%
OPERATING INCOME/SUB./MONTH $ 20.54 $ 21.68 $ 22.83
ARTHUR ANDERSEN LLP
60
EXHIBIT D-1
- ------------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
BURKE COUNTY, NC
AS OF DECEMBER 31, 1996
- ------------------------------------------------------
- ------------------------------------------------------
CAPITAL EXPENDITURES
- ------------------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
---------- ---------- ---------- ---------- -------- -------- --------
CAPITAL ASSUMPTIONS
NEW PLANT MILES 8.0 8.0 8.0 8.0 8.0 8.0 8.0
PLANT-AERIAL $16,000 $16,480 $16,974 $17,484 $18,008 $18,548 $19,105
PLANT-U/G $28,000 $28,840 $29,705 $30,596 $31,514 $32,460 $33,433
AERIAL PERCENTAGE 20% 20% 20% 20% 20% 20% 20%
UNDERGROUND PERCENTAGE 80% 80% 80% 80% 80% 80% 80%
AVERAGE COST PER CONVERTER $110 $113 $117 $120 $124 $128 $131
CONVERTER USE PERCENTAGE 89% 89% 89% 89% 89% 89% 89%
CONVERTER REPLACEMENT PERCENTAGE 3% 4% 5% 5% 6% 6% 6%
INSTALLATION COST/SUBSCRIBER $80 $82 $85 $87 $90 $93 $96
MISCELLANEOUS EXPENSE/SUBSCRIBER $40 $20 $21 $21 $22 $23 $23
INFLATION 0% 3% 3% 3% 3% 3% 3%
ANNUAL EXPENSE PROJECTION TOTAL
NEW PLANT - AERIAL $25,600 $26,368 $27,159 $27,974 $28,813 $29,677 $30,568 $196,159
NEW PLANT - UNDERGROUND 179,200 184,576 190,113 195,817 201,691 207,742 213,974 1,373,113
PLANT REBUILD AND UPGRADE 450,000 2,400,000 3,000,000 4,200,000 0 0 0 10,050,000
NEW CONVERTER EXPENSE 0 0 0 65,580 50,532 34,103 16,212 166,428
CONVERTER REPLACEMENT EXPENSE 50,642 68,832 88,495 91,006 116,537 123,155 128,958 667,624
INSTALLATION EXPENSE 8,369 8,570 8,814 32,683 25,184 16,996 8,080 108,696
MISCELLANEOUS CAPITAL EXPENSE 418,474 208,006 213,925 224,136 238,001 250,352 260,968 1,813,862
---------- ---------- ---------- ---------- -------- -------- -------- -----------
TOTAL $1,132,286 $2,896,352 $3,528,506 $4,837,196 $660,758 $662,026 $658,759 $14,375,882
PERCENT OF REVENUE 21.5% 53.2% 62.3% 80.6% 10.2% 9.7% 9.2%
ARTHUR ANDERSEN LLP
61
EXHIBIT D-2
- -----------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CALIFORNIA CITY, CALIFORNIA
AS OF DECEMBER 31, 1996
- -----------------------------------------------
- -----------------------------------------------
CAPITAL EXPENDITURES
- -----------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
-------- -------- -------- -------- -------- -------- --------
CAPITAL ASSUMPTIONS
NEW PLANT MILES 2.0 1.0 1.0 1.0 1.0 1.0 1.0
PLANT-AERIAL $ 16,000 $ 16,480 $ 16,974 $ 17,484 $ 18,008 $ 18,548 $ 19,105
PLANT-U/G $ 28,100 $ 28,943 $ 29,811 $ 30,706 $ 31,627 $ 32,576 $ 33,553
AERIAL PERCENTAGE 50% 50% 50% 50% 50% 50% 50%
UNDERGROUND PERCENTAGE 50% 50% 50% 50% 50% 50% 50%
AVERAGE COST PER CONVERTER $ 85 $ 88 $ 90 $ 93 $ 96 $ 99 $ 101
CONVERTER USE PERCENTAGE 26% 26% 26% 26% 26% 26% 26%
CONVERTER REPLACEMENT PERCENTAGE 10% 10% 10% 10% 10% 8% 6%
INSTALLATION COST/SUBSCRIBER $ 70 $ 72 $ 74 $ 76 $ 79 $ 81 $ 84
MISCELLANEOUS EXPENSE/SUBSCRIBER $ 50 $ 45 $ 46 $ 48 $ 49 $ 51 $ 52
INFLATION 0% 3% 3% 3% 3% 3% 3%
ANNUAL EXPENSE PROJECTION TOTAL
NEW PLANT - AERIAL $ 16,000 $ 8,240 $ 8,487 $ 8,742 $ 9,004 $ 9,274 $ 9,552 $ 69,300
NEW PLANT - UNDERGROUND 28,100 14,472 14,906 15,353 15,813 16,288 16,776 121,708
PLANT REBUILD AND UPGRADE 0 0 0 0 0 0 0 0
NEW CONVERTER EXPENSE 2,094 1,139 1,173 1,208 1,245 1,282 1,321 9,462
CONVERTER REPLACEMENT EXPENSE 7,914 8,367 8,735 9,118 9,516 7,944 6,216 57,808
INSTALLATION EXPENSE 3,560 1,937 1,995 2,055 2,116 2,180 2,245 16,087
MISCELLANEOUS CAPITAL EXPENSE 97,372 89,383 93,310 97,391 101,634 106,043 110,626 695,758
-------- -------- -------- -------- -------- -------- -------- --------
TOTAL $155,040 $123,537 $128,605 $133,867 $139,328 $143,010 $146,736 $970,122
PERCENT OF REVENUE 20.6% 15.6% 15.4% 15.3% 15.2% 14.9% 14.5%
ARTHUR ANDERSEN LLP
62
EXHIBIT D-3
- -----------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CENTREVILLE, MARYLAND
AS OF DECEMBER 31, 1996
- -----------------------------------------------
- -----------------------------------------------
CAPITAL EXPENDITURES
- -----------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
---------- ---------- ---------- ---------- --------- -------- --------
CAPITAL ASSUMPTIONS
NEW PLANT MILES 5.0 5.0 5.0 5.0 5.0 5.0 5.0
PLANT-AERIAL $ 16,000 $ 16,480 $ 16,974 $ 17,484 $ 18,008 $ 18,548 $ 19,105
PLANT-U/G $ 28,100 $ 28,943 $ 29,811 $ 30,706 $ 31,627 $ 32,576 $ 33,553
AERIAL PERCENTAGE 0% 0% 0% 0% 0% 0% 0%
UNDERGROUND PERCENTAGE 100% 100% 100% 100% 100% 100% 100%
AVERAGE COST PER CONVERTER $ 60 $ 62 $ 64 $ 65 $ 67 $ 69 $ 72
CONVERTER USE PERCENTAGE 9% 9% 9% 9% 9% 9% 9%
CONVERTER REPLACEMENT PERCENTAGE 10% 10% 10% 10% 10% 10% 10%
INSTALLATION COST/SUBSCRIBER $ 85 $ 88 $ 90 $ 93 $ 96 $ 99 $ 101
MISCELLANEOUS EXPENSE/SUBSCRIBER $ 25 $ 15 $ 15 $ 16 $ 16 $ 17 $ 17
INFLATION 0% 3% 3% 3% 3% 3% 3%
ANNUAL EXPENSE PROJECTION TOTAL
NEW PLANT - AERIAL $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
NEW PLANT - UNDERGROUND 140,500 144,715 149,056 153,528 158,134 162,878 167,764 1,076,576
PLANT REBUILD AND UPGRADE 1,375,000 2,500,000 4,500,000 3,000,000 0 0 0 11,375,000
NEW CONVERTER EXPENSE 3,542 2,578 3,857 4,031 8,036 4,448 3,261 29,753
CONVERTER REPLACEMENT EXPENSE 11,008 11,703 12,320 13,087 13,895 15,139 16,051 93,203
INSTALLATION EXPENSE 33,707 24,538 36,707 38,365 76,478 42,328 31,034 283,157
MISCELLANEOUS CAPITAL EXPENSE 313,082 192,925 204,023 216,669 233,106 250,473 264,380 1,674,658
---------- ---------- ---------- ---------- --------- -------- -------- -----------
TOTAL $1,876,839 $2,876,460 $4,905,963 $3,425,680 $ 489,649 $475,265 $482,491 $14,532,347
PERCENT OF REVENUE 32.2% 46.6% 74.9% 48.8% 6.3% 5.7% 5.5%
ARTHUR ANDERSEN LLP
63
EXHIBIT D-4
- -----------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
REDMOND, OREGON
AS OF DECEMBER 31, 1996
- -----------------------------------------------
- -----------------------------------------------
CAPITAL EXPENDITURES
- -----------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
-------- -------- -------- -------- -------- -------- --------
CAPITAL ASSUMPTIONS
NEW PLANT MILES 29.0 6.0 6.0 6.0 6.0 6.0 6.0
PLANT-AERIAL $16,000 $16,480 $16,974 $17,484 $18,008 $18,548 $19,105
PLANT-U/G $28,100 $28,943 $29,811 $30,706 $31,627 $32,576 $33,553
AERIAL PERCENTAGE 20% 20% 20% 20% 20% 20% 20%
UNDERGROUND PERCENTAGE 80% 80% 80% 80% 80% 80% 80%
AVERAGE COST PER CONVERTER $110 $113 $117 $120 $124 $128 $131
CONVERTER USE PERCENTAGE 16% 16% 16% 16% 16% 16% 16%
CONVERTER REPLACEMENT PERCENTAGE 15% 10% 10% 10% 10% 10% 10%
INSTALLATION COST/SUBSCRIBER $60 $62 $64 $66 $68 $70 $72
MISCELLANEOUS EXPENSE/SUBSCRIBER $40 $20 $21 $21 $22 $23 $23
INFLATION 0% 3% 3% 3% 3% 3% 3%
ANNUAL EXPENSE PROJECTION TOTAL
NEW PLANT - AERIAL $92,800 $19,776 $20,369 $20,980 $21,610 $22,258 $22,926 $220,719
NEW PLANT - UNDERGROUND 651,920 138,926 143,094 147,387 151,809 156,363 161,054 1,550,553
PLANT REBUILD AND UPGRADE 0 0 0 0 0 0 0 0
NEW CONVERTER EXPENSE 24,226 0 900 2,590 4,546 4,682 4,823 41,766
CONVERTER REPLACEMENT EXPENSE 17,325 14,392 14,601 15,132 15,853 16,796 17,783 111,882
INSTALLATION EXPENSE 44,249 2,609 1,644 4,730 8,303 8,552 8,808 78,895
MISCELLANEOUS CAPITAL EXPENSE 155,390 84,432 86,574 90,210 95,048 100,667 106,538 718,859
-------- -------- -------- -------- -------- -------- -------- ----------
TOTAL $985,910 $260,135 $267,183 $281,029 $297,168 $309,319 $321,931 $2,722,674
PERCENT OF REVENUE 58.6% 13.9% 13.8% 13.7% 13.7% 13.3% 13.0%
ARTHUR ANDERSEN LLP
64
EXHIBIT D-5
- -----------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SOMERSET, KY
AS OF DECEMBER 31, 1996
- -----------------------------------------------
- -----------------------------------------------
CAPITAL EXPENDITURES
- -----------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003
-------- ---------- ---------- ---------- -------- -------- --------
CAPITAL ASSUMPTIONS
NEW PLANT MILES 1.9 8.5 8.5 8.5 8.5 8.5 8.5
PLANT-AERIAL $18,500 $19,055 $19,627 $20,215 $20,822 $21,447 $22,090
PLANT-U/G $21,500 $22,145 $22,809 $23,494 $24,198 $24,924 $25,672
AERIAL PERCENTAGE 25% 25% 25% 25% 25% 25% 25%
UNDERGROUND PERCENTAGE 75% 75% 75% 75% 75% 75% 75%
AVERAGE COST PER CONVERTER $65 $67 $69 $90 $92 $95 $98
CONVERTER USE PERCENTAGE 21% 21% 21% 31% 36% 41% 46%
CONVERTER REPLACEMENT PERCENTAGE 8% 8% 8% 8% 8% 8% 8%
INSTALLATION COST/SUBSCRIBER $60 $62 $64 $66 $68 $70 $72
MISCELLANEOUS EXPENSE/SUBSCRIBER $15 $10 $10 $11 $11 $11 $12
INFLATION 0% 3% 3% 3% 3% 3% 3%
ANNUAL EXPENSE PROJECTION TOTAL
NEW PLANT - AERIAL $8,748 $40,546 $41,763 $43,016 $44,306 $45,635 $47,004 $271,019
NEW PLANT - UNDERGROUND 30,499 141,364 145,605 149,974 154,473 159,107 163,880 944,903
PLANT REBUILD AND UPGRADE 500,000 1,000,000 2,000,000 6,500,000 0 0 0 10,000,000
NEW CONVERTER EXPENSE 1,517 4,297 4,442 186,843 104,996 108,146 111,481 521,722
CONVERTER REPLACEMENT EXPENSE 26,619 27,542 28,723 37,801 54,331 64,613 75,463 315,092
INSTALLATION EXPENSE 5,277 14,951 15,457 17,474 21,197 17,141 14,358 105,854
MISCELLANEOUS CAPITAL EXPENSE 290,100 195,049 203,397 212,201 221,738 231,543 241,080 1,595,108
-------- ---------- ---------- ---------- -------- -------- -------- -----------
TOTAL $862,760 $1,423,751 $2,439,387 $7,147,308 $601,041 $626,185 $653,266 $13,753,698
PERCENT OF REVENUE 11.5% 18.0% 29.3% 81.2% 6.2% 6.1% 6.1%
ARTHUR ANDERSEN LLP
65
EXHIBIT E-1
- ----------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
BURKE COUNTY, NC
AS OF DECEMBER 31, 1996
- ----------------------------------------------
- ----------------------------------------------
DISCOUNTED CASH FLOW VALUATION
- ----------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003 TOTAL
--------- --------- --------- --------- --------- --------- --------- ----------
REVENUE $5,266,958 $5,447,493 $5,659,602 $6,002,891 $6,494,157 $6,853,484 $7,167,554 $42,892,138
EXPENSES 2,426,995 2,495,417 2,577,311 2,704,371 2,900,859 3,039,158 3,160,602 19,304,713
--------- --------- --------- --------- --------- --------- --------- ----------
OPERATING INCOME $2,839,963 $2,952,076 $3,082,291 $3,298,520 $3,593,298 $3,814,326 $4,006,951 $23,587,425
LESS:
CAPITAL EXPENDITURES 1,132,286 2,896,352 3,528,506 4,837,196 660,758 662,026 658,759 14,375,882
PLUS:
RESIDUAL VALUE 0 0 0 0 0 0 30,052,136 30,052,136
FREE CASH FLOW 1,707,677 55,724 (446,215) (1,538,676) 2,932,541 3,152,300 33,400,328 39,263,679
DISCOUNT RATE 15.03%
DISCOUNTED CASH FLOW VALUE $15,706,719
ARTHUR ANDERSEN LLP
66
EXHIBIT E-2
- --------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CALIFORNIA CITY, CALIFORNIA
AS OF DECEMBER 31, 1996
- --------------------------------------------------
- --------------------------------------------------
DISCOUNTED CASH FLOW VALUATION
- --------------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003 TOTAL
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
REVENUE $ 754,179 $ 794,221 $ 832,846 $ 874,082 $ 916,557 $ 961,877 $1,008,582 $6,142,345
EXPENSES 368,549 384,288 399,359 415,034 431,273 448,163 465,663 2,912,329
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
OPERATING INCOME $ 385,630 $ 409,933 $ 433,487 $ 459,048 $ 485,284 $ 513,714 $ 542,920 $3,230,016
LESS:
CAPITAL EXPENDITURES 155,040 123,537 128,605 133,867 139,328 143,010 146,736 970,122
PLUS:
RESIDUAL VALUE 0 0 0 0 0 0 3,800,438 3,800,438
FREE CASH FLOW 230,590 286,396 304,882 325,182 345,956 370,703 4,196,622 6,060,332
DISCOUNT RATE 15.03%
DISCOUNTED CASH FLOW VALUE $2,709,780
ARTHUR ANDERSEN LLP
67
EXHIBIT E-3
- -------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CENTREVILLE, MARYLAND
AS OF DECEMBER 31, 1996
- -------------------------------------------------
- -------------------------------------------------
DISCOUNTED CASH FLOW VALUATION
- -------------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003 TOTAL
---------- ---------- ---------- ---------- ---------- ---------- ---------- -----------
REVENUE $5,823,918 $6,166,532 $6,545,857 $7,026,289 $7,772,298 $8,341,915 $8,827,562 $50,504,372
EXPENSES 3,017,200 3,158,916 3,311,348 3,518,153 3,837,916 4,061,834 4,253,372 25,158,739
---------- ---------- ---------- ---------- ---------- ---------- ---------- -----------
OPERATING INCOME $2,806,718 $3,007,617 $3,234,510 $3,508,136 $3,934,382 $4,280,081 $4,574,189 $25,345,633
LESS:
CAPITAL EXPENDITURES 1,876,839 2,876,460 4,905,963 3,425,680 489,649 475,265 482,491 14,532,347
PLUS:
RESIDUAL VALUE 0 0 0 0 0 0 36,593,516 36,593,516
FREE CASH FLOW 929,878 131,157 (1,671,453) 82,455 3,444,733 3,804,816 40,685,214 47,406,801
DISCOUNT RATE 14.23%
DISCOUNTED CASH FLOW VALUE $19,359,143
ARTHUR ANDERSEN LLP
68
EXHIBIT E-4
- ------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
REDMOND, OREGON
AS OF DECEMBER 31, 1996
- ------------------------------------------------
- ------------------------------------------------
DISCOUNTED CASH FLOW VALUATION
- ------------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003 TOTAL
---------- ---------- ---------- ---------- ---------- ---------- ---------- -----------
REVENUE $1,682,856 $1,865,250 $1,939,763 $2,044,458 $2,175,384 $2,321,455 $2,475,049 $14,504,216
EXPENSES 858,699 938,687 969,951 1,013,578 1,066,915 1,126,696 1,189,133 7,163,660
---------- ---------- ---------- ---------- ---------- ---------- ---------- -----------
OPERATING INCOME $824,157 $926,563 $969,812 $1,030,880 $1,108,469 $1,194,759 $1,285,916 $7,340,556
LESS:
CAPITAL EXPENDITURES 985,910 260,135 267,183 281,029 297,168 309,319 321,931 2,722,674
PLUS:
RESIDUAL VALUE 0 0 0 0 0 0 9,001,414 9,001,414
FREE CASH FLOW (161,752) 666,428 702,629 749,851 811,301 885,440 9,965,398 13,619,295
DISCOUNT RATE 15.03%
DISCOUNTED CASH FLOW VALUE $5,778,109
ARTHUR ANDERSEN LLP
69
EXHIBIT E-5
- ------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SOMERSET, KY
AS OF DECEMBER 31, 1996
- ------------------------------------------------
- ------------------------------------------------
DISCOUNTED CASH FLOW VALUATION
- ------------------------------------------------
YEAR ENDING DECEMBER 31, 1997 1998 1999 2000 2001 2002 2003 TOTAL
---------- ---------- ---------- ---------- ---------- ----------- -----------
REVENUE $7,495,245 $7,891,352 $8,311,425 $8,797,917 $9,617,660 $10,202,471 $10,771,694 $63,087,764
EXPENSES 3,775,732 3,938,547 4,114,663 4,306,218 4,615,192 4,849,402 5,073,497 30,673,252
---------- ---------- ---------- ---------- ---------- ----------- ----------- -----------
OPERATING INCOME $3,719,513 $3,952,805 $4,196,762 $4,491,700 $5,002,468 $5,353,069 $5,698,197 $32,414,512
LESS:
CAPITAL EXPENDITURES 862,760 1,423,751 2,439,387 7,147,308 601,041 626,185 653,266 13,753,698
PLUS:
RESIDUAL VALUE 0 0 0 0 0 0 48,434,673 48,434,673
FREE CASH FLOW 2,856,753 2,529,055 1,757,374 (2,655,608) 4,401,427 4,726,883 53,479,604 67,095,488
DISCOUNT RATE 14.23%
DISCOUNTED CASH FLOW VALUE $29,525,152
ARTHUR ANDERSEN LLP
70
EXHIBIT F-1
- -------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
BURKE COUNTY, NC
AS OF DECEMBER 31, 1996
- -------------------------------------------
- -------------------------------------------
VALUATION MATRIX
- -------------------------------------------
VALUATION MATRIX
MULTIPLE OF PAST YEAR'S OPERATING INCOME
1996 ADJUSTED REVENUE $5,077,787
1996 ADJUSTED EXPENSES 2,260,515
1996 ADJUSTED OPERATING INCOME $2,817,272
VALUATION MULTIPLE 8.5
ESTIMATED FAIR MARKET VALUE - $23,946,812
===========
MULTIPLE OF CURRENT OPERATING INCOME
REVENUE $5,292,721
IMPUTED EXPENSES 2,419,832
---------
OPERATING INCOME 2,872,889
VALUATION MULTIPLE 8.00
ESTIMATED FAIR MARKET VALUE - $22,983,111
===========
MULTIPLE OF PROJECTED OPERATING INCOME
PROJECTED REVENUE $5,266,958
PROJECTED EXPENSES 2,426,995
-----------
PROJECTED OPERATING INCOME $2,839,963
VALUATION MULTIPLE 7.50
ESTIMATED FAIR MARKET VALUE - $21,299,720
===========
PRE-TAX DISCOUNTED CASH FLOW VALUATION
DISCOUNT RATE 15.0%
ESTIMATED FAIR MARKET VALUE - $15,706,719
===========
VALUE SUMMARY WEIGHTING
PAST YEAR'S METHOD $23,946,812 5%
CURRENT METHOD $22,983,111 10%
PROJECTED METHOD $21,299,720 15%
DISCOUNTED CASH FLOW METHOD $15,706,719 70%
------------ ---
ESTIMATED FAIR MARKET VALUE $17,685,000 100%
============ ====
INFORMATIONAL ITEMS
LOW HIGH
VALUE RANGE $15,706,719 $23,946,812
AVERAGE $19,826,766
PAST YEAR'S CURRENT YEAR'S NEXT YEAR'S
MULTIPLE OF CASH FLOW 6.28 6.16 6.23
VALUE PER BEGINNING YEAR 1 SUBSCRIBER $1,682
VALUE PER AVERAGE YEAR 1 SUBSCRIBER $1,690
ARTHUR ANDERSEN LLP
71
EXHIBIT F-2
- ----------------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CALIFORNIA CITY, CALIFORNIA
AS OF DECEMBER 31, 1996
- -------------------------------------------
- -------------------------------------------
VALUATION MATRIX
- -------------------------------------------
VALUATION MATRIX
MULTIPLE OF PAST YEAR'S OPERATING INCOME
1996 ADJUSTED REVENUE $753,244
1996 ADJUSTED EXPENSES 334,515
-------
1996 ADJUSTED OPERATING INCOME $418,729
VALUATION MULTIPLE 8.0
ESTIMATED FAIR MARKET VALUE - $3,349,832
==========
MULTIPLE OF CURRENT OPERATING INCOME
REVENUE $746,398
IMPUTED EXPENSES 317,145
-------
OPERATING INCOME 429,254
VALUATION MULTIPLE 7.50
ESTIMATED FAIR MARKET VALUE - $3,219,402
==========
MULTIPLE OF PROJECTED OPERATING INCOME
PROJECTED REVENUE $754,179
PROJECTED EXPENSES 368,549
-------
PROJECTED OPERATING INCOME $385,630
VALUATION MULTIPLE 7.00
ESTIMATED FAIR MARKET VALUE - $2,699,409
==========
PRE-TAX DISCOUNTED CASH FLOW VALUATION
DISCOUNT RATE 15.0%
ESTIMATED FAIR MARKET VALUE - $2,709,780
==========
VALUE SUMMARY WEIGHTING
PAST YEAR'S METHOD $3,349,832 5%
CURRENT METHOD $3,219,402 10%
PROJECTED METHOD $2,699,409 15%
DISCOUNTED CASH FLOW METHOD $2,709,780 70%
----------- ---
ESTIMATED FAIR MARKET VALUE $2,791,000 100%
=========== ====
INFORMATIONAL ITEMS
LOW HIGH
VALUE RANGE $2,699,409 $3,349,832
AVERAGE $3,024,620
PAST YEAR'S CURRENT YEAR'S NEXT YEAR'S
MULTIPLE OF CASH FLOW 6.67 6.50 7.24
VALUE PER BEGINNING YEAR 1 SUBSCRIBER $1,452
VALUE PER AVERAGE YEAR 1 SUBSCRIBER $1,433
ARTHUR ANDERSEN LLP
72
EXHIBIT F-3
- ----------------------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CENTREVILLE, MARYLAND
AS OF DECEMBER 31, 1996
- -------------------------------------------
- -------------------------------------------
VALUATION MATRIX
- -------------------------------------------
VALUATION MATRIX
MULTIPLE OF PAST YEAR'S OPERATING INCOME
1996 ADJUSTED REVENUE $5,342,637
1996 ADJUSTED EXPENSES 2,847,160
---------
1996 ADJUSTED OPERATING INCOME $2,495,477
VALUATION MULTIPLE 9.0
ESTIMATED FAIR MARKET VALUE - $22,459,293
===========
MULTIPLE OF CURRENT OPERATING INCOME
REVENUE $5,760,275
IMPUTED EXPENSES 2,933,132
---------
OPERATING INCOME 2,827,143
VALUATION MULTIPLE 8.50
ESTIMATED FAIR MARKET VALUE - $24,030,716
===========
MULTIPLE OF PROJECTED OPERATING INCOME
PROJECTED REVENUE $5,823,918
PROJECTED EXPENSES 3,017,200
-----------
PROJECTED OPERATING INCOME $2,806,718
VALUATION MULTIPLE 8.00
ESTIMATED FAIR MARKET VALUE - $22,453,742
===========
PRE-TAX DISCOUNTED CASH FLOW VALUATION
DISCOUNT RATE 14.2%
ESTIMATED FAIR MARKET VALUE - $19,359,143
===========
VALUE SUMMARY WEIGHTING
PAST YEAR'S METHOD $22,459,293 5%
CURRENT METHOD $24,030,716 10%
PROJECTED METHOD $22,453,742 15%
DISCOUNTED CASH FLOW METHOD $19,359,143 70%
------------ ---
ESTIMATED FAIR MARKET VALUE $20,445,000 100%
============ ====
INFORMATIONAL ITEMS
LOW HIGH
VALUE RANGE $19,359,143 $24,030,716
AVERAGE $21,694,930
PAST YEAR'S CURRENT YEAR'S NEXT YEAR'S
MULTIPLE OF CASH FLOW 8.19 7.23 7.28
VALUE PER BEGINNING YEAR 1 SUBSCRIBER $1,659
VALUE PER AVERAGE YEAR 1 SUBSCRIBER $1,633
ARTHUR ANDERSEN LLP
73
EXHIBIT F-4
- -------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
REDMOND, OREGON
AS OF DECEMBER 31, 1996
- -------------------------------------------
- -------------------------------------------
VALUATION MATRIX
- -------------------------------------------
VALUATION MATRIX
MULTIPLE OF PAST YEAR'S OPERATING INCOME
1996 ADJUSTED REVENUE $1,561,593
1996 ADJUSTED EXPENSES 721,472
----------
1996 ADJUSTED OPERATING INCOME $840,121
VALUATION MULTIPLE 8.0
ESTIMATED FAIR MARKET VALUE - $6,720,968
==========
MULTIPLE OF CURRENT OPERATING INCOME
REVENUE $1,569,849
IMPUTED EXPENSES 722,445
----------
OPERATING INCOME 847,405
VALUATION MULTIPLE 7.50
ESTIMATED FAIR MARKET VALUE - $6,355,535
==========
MULTIPLE OF PROJECTED OPERATING INCOME
PROJECTED REVENUE $1,682,856
PROJECTED EXPENSES 858,699
----------
PROJECTED OPERATING INCOME $824,157
VALUATION MULTIPLE 7.00
ESTIMATED FAIR MARKET VALUE - $5,769,101
==========
PRE-TAX DISCOUNTED CASH FLOW VALUATION
DISCOUNT RATE 15.0%
ESTIMATED FAIR MARKET VALUE - $5,778,109
==========
VALUE SUMMARY WEIGHTING
PAST YEAR'S METHOD $6,720,968 5%
CURRENT METHOD $6,355,535 10%
PROJECTED METHOD $5,769,101 15%
DISCOUNTED CASH FLOW METHOD $5,778,109 70%
---------- ---
ESTIMATED FAIR MARKET VALUE $5,882,000 100%
---------- ----
INFORMATIONAL ITEMS
LOW HIGH
VALUE RANGE $5,769,101 $6,720,968
AVERAGE $6,245,034
PAST YEAR'S CURRENT YEAR'S NEXT YEAR'S
MULTIPLE OF CASH FLOW 7.00 6.94 7.14
VALUE PER BEGINNING YEAR 1 SUBSCRIBER $1,673
VALUE PER AVERAGE YEAR 1 SUBSCRIBER $1,514
74
EXHIBIT F-5
- -------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SOMERSET, KY
AS OF DECEMBER 31, 1996
- -------------------------------------------
- -------------------------------------------
VALUATION MATRIX
- -------------------------------------------
VALUATION MATRIX
MULTIPLE OF PAST YEAR'S OPERATING INCOME
1996 ADJUSTED REVENUE $7,090,865
1996 ADJUSTED EXPENSES 3,401,985
----------
1996 ADJUSTED OPERATING INCOME $3,688,880
VALUATION MULTIPLE 9.5
ESTIMATED FAIR MARKET VALUE - $35,044,360
===========
MULTIPLE OF CURRENT OPERATING INCOME
REVENUE $7,486,266
IMPUTED EXPENSES 4,025,365
---------
OPERATING INCOME 3,460,901
VALUATION MULTIPLE 9.00
ESTIMATED FAIR MARKET VALUE - $31,148,107
===========
MULTIPLE OF PROJECTED OPERATING INCOME
PROJECTED REVENUE $7,495,245
PROJECTED EXPENSES 3,775,732
----------
PROJECTED OPERATING INCOME $3,719,513
VALUATION MULTIPLE 8.50
ESTIMATED FAIR MARKET VALUE - $31,615,860
===========
PRE-TAX DISCOUNTED CASH FLOW VALUATION
DISCOUNT RATE 14.2%
ESTIMATED FAIR MARKET VALUE - $29,525,152
===========
VALUE SUMMARY WEIGHTING
PAST YEAR'S METHOD $35,044,360 5%
CURRENT METHOD $31,148,107 10%
PROJECTED METHOD $31,615,860 15%
DISCOUNTED CASH FLOW METHOD $29,525,152 70%
------------ ---
ESTIMATED FAIR MARKET VALUE $30,277,000 100%
============ ====
INFORMATIONAL ITEMS
LOW HIGH
VALUE RANGE $29,525,152 $35,044,360
AVERAGE $32,284,756
PAST YEAR'S CURRENT YEAR'S NEXT YEAR'S
MULTIPLE OF CASH FLOW 8.21 8.75 8.14
VALUE PER BEGINNING YEAR 1 SUBSCRIBER $1,569
VALUE PER AVERAGE YEAR 1 SUBSCRIBER $1,566
ARTHUR ANDERSEN LLP
75
[LOGO - ARTHUR ANDERSEN LLP]
ADDENDUM 1 Channel Line-Ups and Rate Cards
76
FALCON CABLE TV - BURKE COUNTY, NC (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 LOCAL - COMMUNITY ACCESS/PEG
3 WBTV 3-CBS CHARLOTTE, NC
4 WYFF-TV 4-NBC GREENVILLE, SC
5 WUNE-TV 17-PBS LINVILLE, NC
6 WCNC-TV 36-NBC CHARLOTTE,NC
7 WSPA-TV 7-CBS SPARTANBURG, SC
8 QVC
9 WSOC-TV 9-ABC CHARLOTTE, NC
10 WCCB 18-FOX CHARLOTTE, NC
11 WHKY-TV 14-IND HICKORY, NC
12 MTV
13 WLOS 13-ABC ASHEVILLE, NC
14 WJZY 46-IND/UPN BELMONT, NC
15 C-SPAN
* 16 REQUEST - PAY PER VIEW
* 17 HBO
* 18 CINEMAX
* 19 THE MOVIE CHANNEL
* 20 SHOWTIME
* 21 ENCORE
+ 22 THE DISNEY CHANNEL
23 NICKELODEON
= 24 WTBS 17-IND ATLANTA, GA
+ 25 THE NASHVILLE NETWORK
+ 26 THE DISCOVERY CHANNEL
+ 27 THE FAMILY CHANNEL
+ 28 COUNTRY MUSIC TV
+ 29 THE WEATHER CHANNEL
+ 30 TNT
= 31 THE LEARNING CHANNEL
= 32 CNN
= 33 CNN HEADLINE NEWS
34 NOSTALGIA
= 35 ESPN
36 PREVUE GUIDE
37 CNBC
38 COMEDY CENTRAL
38 VH-1
39 LIFETIME
= 40 SPORTSOUTH NETWORK
41 NEW INSPIRATIONAL NETWORK
= 42 USA NETWORK
43 WHNS 21-FOX ASHEVILLE, NC
44 WFVT-TV 55-IND ROCK HILL, SC
RATES___________________________________________________________________________
BASIC $17.54
TIER (=) 6.36
SATELLITE PACKAGE 1 (+) 10.44
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.03
ADDRESSABLE CONVERTER 2.51
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 250.00
DAMAGED CONVERTER EQUIPMENT 105.00
DISCONNECT HOLD FEE 2.00
UPGRADE 2.00
NON PAY RECONNECT FEE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
ENCORE 5.95
PAY PER VIEW MOVIE 3.95
________________________________________________________________________________
All Broadcast TV stations can only be received via cable through a converter
box, which is available at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
77
FALCON CABLE TV - CHURCH HILL, MD (Effective: 10/1/96)
CHANNEL LINE-UP ---------------------------------------------------------------
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL-COMMUNITY ACCESS/PEG
4 QVC
5 WTTG 5-FOX WASHINGTON, DC
*6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
*15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV 24-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKLEODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E!-ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $20.44
TIER (=) 3.42
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments and do
not include franchise fees of 5% of your total bill. Any such amounts will be
itemized on your bill.
78
FALCON CABLE TV - Kent County, ND (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL - COMMUNITY ACCESS/PEG
4 QVC
5 WTTG 5-FOX WASHINGTON, DC
* 6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV 24-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKELODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E! - ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $20.63
TIER (=) 3.48
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments and do
not include franchise fees of 3% of your basic rate. Any such amounts will be
itemized on your bill.
79
FALCON CABLE TV - CONNELLY SPRINGS, NC (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 LOCAL - COMMUNITY ACCESS/PEG
3 WBTV 3-CBS CHARLOTTE, NC
4 WYFF-TV 4-NBC GREENVILLE, SC
5 WUNE-TV 17-PBS LINVILLE, NC
6 WCNC-TV 36-NBC CHARLOTTE, NC
7 WSPA-TV 7-CBS SPARTANBURG, SC
8 QVC
9 WSOC-TV 9-ABC CHARLOTTE, NC
10 WCCB 18-FOX CHARLOTTE, NC
11 WHKY-TV 14-IND HICKORY, NC
12 MTV
13 WLOS 13-ABC ASHEVILLE, NC
14 WJZY 46-IND/UPN BELMONT, NC
15 C-SPAN
* 16 REQUEST - PAY PER VIEW
* 17 HBO
* 18 CINEMAX
* 19 THE MOVIE CHANNEL
* 20 SHOWTIME
* 21 ENCORE
+ 22 THE DISNEY CHANNEL
23 NICKELODEON
= 24 WTBS 17-IND ATLANTA, GA
+ 25 THE NASHVILLE NETWORK
+ 26 THE DISCOVERY CHANNEL
+ 27 THE FAMILY CHANNEL
+ 28 COUNTRY MUSIC TV
+ 29 THE WEATHER CHANNEL
+ 30 TNT
= 31 THE LEARNING CHANNEL
= 32 CNN
= 33 CNN HEADLINE NEWS
34 NOSTALGIA
= 35 ESPN
36 PREVUE GUIDE
37 CNBC
38 COMEDY CENTRAL
38 VH-1
39 LIFETIME
= 40 SPORTSOUTH NETWORK
41 NEW INSPIRATIONAL NETWORK
= 42 USA NETWORK
43 WHNS 21-FOX ASHEVILLE, NC
44 WFVT-TV 55-IND ROCK HILL, SC
RATES___________________________________________________________________________
BASIC $17.37
TIER (=) 6.31
SATELLITE PACKAGE 1 (+) 10.44
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.03
ADDRESSABLE CONVERTER 2.51
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 250.00
DAMAGED CONVERTER EQUIPMENT 105.00
DISCONNECT HOLD FEE 2.00
UPGRADE 2.00
NON PAY RECONNECT FEE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
ENCORE 5.95
PAY PER VIEW MOVIE 3.95
________________________________________________________________________________
All Broadcast TV stations can only be received via cable through a
converter box, which is available at the low rate listed above.
The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
80
FALCON CABLE TV - DREXEL, NC (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 LOCAL - COMMUNITY ACCESS/PEG
3 WBTV 3-CBS CHARLOTTE, NC
4 WYFF-TV 4-NBC GREENVILLE, SC
5 WUNE-TV 17-PBS LINVILLE, NC
6 WCNC-TV 36-NBC CHARLOTTE, NC
7 WSPA-TV 7-CBS SPARTANBURG, SC
8 QVC
9 WSOC-TV 9-ABC CHARLOTTE, NC
10 WCCB 18-FOX CHARLOTTE, NC
11 WHKY-TV 14-IND HICKORY, NC
12 MTV
13 WLOS 13-ABC ASHEVILLE, NC
14 WJZY 46-IND/UPN BELMONT, NC
15 C-SPAN
* 16 REQUEST - PAY PER VIEW
* 17 HBO
* 18 CINEMAX
* 19 THE MOVIE CHANNEL
* 20 SHOWTIME
* 21 ENCORE
+ 22 THE DISNEY CHANNEL
23 NICKELODEON
= 24 WTBS 17-IND ATLANTA, GA
+ 25 THE NASHVILLE NETWORK
+ 26 THE DISCOVERY CHANNEL
+ 27 THE FAMILY CHANNEL
+ 28 COUNTRY MUSIC TV
+ 29 THE WEATHER CHANNEL
+ 30 TNT
= 31 THE LEARNING CHANNEL
= 32 CNN
= 33 CNN HEADLINE NEWS
34 NOSTALGIA
= 35 ESPN
36 PREVUE GUIDE
37 CNBC
38 COMEDY CENTRAL
38 VH-1
39 LIFETIME
= 40 SPORTSOUTH NETWORK
41 NEW INSPIRATIONAL NETWORK
= 42 USA NETWORK
43 WHNS 21-FOX ASHEVILLE, NC
44 WFVT-TV 55-IND ROCK HILL, SC
RATES___________________________________________________________________________
BASIC $17.26
TIER (=) 6.50
SATELLITE PACKAGE 1 (+) 10.45
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.03
ADDRESSABLE CONVERTER 2.51
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 250.00
DAMAGED CONVERTER EQUIPMENT 105.00
DISCONNECT HOLD FEE 2.00
UPGRADE 2.00
NON PAY RECONNECT FEE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
ENCORE 5.95
PAY PER VIEW MOVIE 3.95
________________________________________________________________________________
All Broadcast TV stations can only be received via cable through a
converter box, which is available at the low rate listed above.
The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
81
FALCON CABLE TV - GLEN ALPINE, NC (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 LOCAL - COMMUNITY ACCESS/PEG
3 WBTV 3-CBS CHARLOTTE, NC
4 WYFF-TV 4-NBC GREENVILLE, SC
5 WUNE-TV 17-PBS LINVILLE, NC
6 WCNC-TV 36-NBC CHARLOTTE,NC
7 WSPA-TV 7-CBS SPARTANBURG, SC
8 QVC
9 WSOC-TV 9-ABC CHARLOTTE, NC
10 WCCB 18-FOX CHARLOTTE, NC
11 WHKY-TV 14-IND HICKORY, NC
12 MTV
13 WLOS 13-ABC ASHEVILLE, NC
14 WJZY 46-IND/UPN BELMONT, NC
15 C-SPAN
* 16 REQUEST - PAY PER VIEW
* 17 HBO
* 18 CINEMAX
* 19 THE MOVIE CHANNEL
* 20 SHOWTIME
* 21 ENCORE
+ 22 THE DISNEY CHANNEL
23 NICKELODEON
= 24 WTBS 17-IN ATLANTA, GA
+ 25 THE NASHVILLE NETWORK
+ 26 THE DISCOVERY CHANNEL
+ 27 THE FAMILY CHANNEL
+ 28 COUNTRY MUSIC TV
+ 29 THE WEATHER CHANNEL
+ 30 TNT
= 31 THE LEARNING CHANNEL
= 32 CNN
= 33 CNN HEADLINE NEWS
34 NOSTALGIA
= 35 ESPN
36 PREVUE GUIDE
37 CNBC
38 COMEDY CENTRAL
38 VH-1
39 LIFETIME
= 40 SPORTSOUTH NETWORK
41 NEW INSPIRATIONAL NETWORK
= 42 USA NETWORK
43 WHNS 21-FOX ASHEVILLE, NC
44 WFVT-TV 55-IND ROCK HILL, SC
RATES___________________________________________________________________________
BASIC $17.18
TIER (=) 6.36
SATELLITE PACKAGE 1 (+) 10.44
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.03
ADDRESSABLE CONVERTER 2.51
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 250.00
DAMAGED CONVERTER EQUIPMENT 105.00
DISCONNECT HOLD FEE 2.00
UPGRADE 2.00
NON PAY RECONNECT FEE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
ENCORE 5.95
PAY PER VIEW MOVIE 3.95
________________________________________________________________________________
All Broadcast TV stations can only be received via cable through a converter
box, which is available at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
82
FALCON CABLE TV - RUTHERFORD COLLEGE, NC (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 LOCAL - COMMUNITY ACCESS/PEG
3 WBTV 3-CBS CHARLOTTE, NC
4 WYFF-TV 4-NBC GREENVILLE, SC
5 WUNE-TV 17-PBS LINVILLE, NC
6 WCNC-TV 36-NBC CHARLOTTE,NC
7 WSPA-TV 7-CBS SPARTANBURG, SC
8 QVC
9 WSOC-TV 9-ABC CHARLOTTE, NC
10 WCCB 18-FOX CHARLOTTE, NC
11 WHKY-TV 14-IND HICKORY, NC
12 MTV
13 WLOS 13-ABC ASHEVILLE, NC
14 WJZY 46-IND/UPN BELMONT, NC
15 C-SPAN
* 16 REQUEST - PAY PER VIEW
* 17 HBO
* 18 CINEMAX
* 19 THE MOVIE CHANNEL
* 20 SHOWTIME
* 21 ENCORE
+ 22 THE DISNEY CHANNEL
23 NICKELODEON
= 24 WTBS 17-IN ATLANTA, GA
+ 25 THE NASHVILLE NETWORK
+ 26 THE DISCOVERY CHANNEL
+ 27 THE FAMILY CHANNEL
+ 28 COUNTRY MUSIC TV
+ 29 THE WEATHER CHANNEL
+ 30 TNT
= 31 THE LEARNING CHANNEL
= 32 CNN
= 33 CNN HEADLINE NEWS
34 NOSTALGIA
= 35 ESPN
36 PREVUE GUIDE
37 CNBC
38 COMEDY CENTRAL
38 VH-1
39 LIFETIME
= 40 SPORTSOUTH NETWORK
41 NEW INSPIRATIONAL NETWORK
= 42 USA NETWORK
43 WHNS 21-FOX ASHEVILLE, NC
44 WFVT-TV 55-IND ROCK HILL, SC
RATES___________________________________________________________________________
BASIC $17.59
TIER (=) 6.52
SATELLITE PACKAGE 1 (+) 10.45
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.03
ADDRESSABLE CONVERTER 2.51
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 250.00
DAMAGED CONVERTER EQUIPMENT 105.00
DISCONNECT HOLD FEE 2.00
UPGRADE 2.00
NON PAY RECONNECT FEE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
ENCORE 5.95
PAY PER VIEW MOVIE 3.95
________________________________________________________________________________
All Broadcast TV stations can only be received via cable through a converter
box, which is available at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
83
FALCON CABLE TV - VALDESE COUNTY, NC (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 LOCAL - COMMUNITY ACCESS/PEG
3 WBTV 3-CBS CHARLOTTE, NC
4 WYFF-TV 4-NBC GREENVILLE, SC
5 WUNE-TV 17-PBS LINVILLE, NC
6 WCNC-TV 36-NBC CHARLOTTE, NC
7 WSPA-TV 7-CBS SPARTANBURG, SC
8 QVC
9 WSOC-TV 9-ABC CHARLOTTE, NC
10 WCCB 18-FOX CHARLOTTE, NC
11 WHKY-TV 14-IND HICKORY, NC
12 MTV
13 WLOS 13-ABC ASHEVILLE, NC
14 WJZY 46-IND/UPN BELMONT, NC
15 C-SPAN
* 16 REQUEST - PAY PER VIEW
* 17 HBO
* 18 CINEMAX
* 19 THE MOVIE CHANNEL
* 20 SHOWTIME
* 21 ENCORE
+ 22 THE DISNEY CHANNEL
23 NICKELODEON
= 24 WTBS 17-IND ATLANTA, GA
+ 25 THE NASHVILLE NETWORK
+ 26 THE DISCOVERY CHANNEL
+ 27 THE FAMILY CHANNEL
+ 28 COUNTRY MUSIC TV
+ 29 THE WEATHER CHANNEL
+ 30 TNT
= 31 THE LEARNING CHANNEL
= 32 CNN
= 33 CNN HEADLINE NEWS
34 NOSTALGIA
= 35 ESPN
36 PREVUE GUIDE
37 CNBC
38 COMEDY CENTRAL
38 VH-1
39 LIFETIME
= 40 SPORTSOUTH NETWORK
41 NEW INSPIRATIONAL NETWORK
= 42 USA NETWORK
43 WHNS 21-FOX ASHEVILLE, NC
44 WFVT-TV 55-IND ROCK HILL, SC
RATES___________________________________________________________________________
BASIC $17.14
TIER (=) 6.34
SATELLITE PACKAGE 1(+) 10.44
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.03
ADDRESSABLE CONVERTER 2.51
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 250.00
DAMAGED CONVERTER EQUIPMENT 105.00
DISCONNECT HOLD FEE 2.00
UPGRADE 2.00
NON PAY RECONNECT FEE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
ENCORE 5.95
PAY PER VIEW MOVIE 3.95
________________________________________________________________________________
All Broadcast TV stations can only be received via cable through a
converter box, which is available at the low rate listed above.
The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
84
FALCON CABLE TV - BARCLAY, MD (Effective: 10/1/96)
CHANNEL LINE-UP ---------------------------------------------------------------
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL-COMMUNITY ACCESS/PEG
4 QVC
5 WTTV 5-FOX WASHINGTON, DC
* 6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV 24-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKLEODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E!-ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $20.86
TIER (=) 3.55
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
85
FALCON CABLE TV - BETTERTON, MD (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL - COMMUNITY ACCESS/PEG
4 QVC
5 WTTG 5-FOX WASHINGTON, DC
* 6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV 24-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKELODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E! - ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $20.80
TIER (=) 3.89
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can
only be received via cable through a converter box, unless you have
a cable-ready TV set. Converter boxes are available for rent at the
low rate listed above.
The above rates may not include applicable taxes, fees and assessments
and do not include franchise fees of 3% of your total bill. Any
such amounts will be itemized on your bill.
86
FALCON CABLE TV - CENTREVILLE, MD (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL - COMMUNITY ACCESS/PEG
4 QVC
5 WTTG 5-FOX WASHINGTON, DC
* 6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV 24-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKELODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCASTING NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E! - ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $20.32
TIER (=) 3.77
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and
assessments and do not include franchise fees of 3% of your total bill. Any
such amounts will be itemized on your bill.
87
FALCON CABLE TV - CHESTERTOWN, MD (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL-COMMUNITY ACCESS/PEG
4 QVC
5 WTTG 5-FOX WASHINGTON, DC
* 6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL-COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV 24-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKELODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E!-ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $21.08
TIER (=) 2.91
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments and do
not include franchise fees of 4% of your total bill. Any such amounts will be
itemized on your bill.
88
FALCON CABLE TV - MILLINGTON, MD (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL-COMMUNITY ACCESS/PEG
4 QVC
5 WTTV 5-FOX WASHINGTON, DC
* 6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV 24-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKELODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E!-ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $20.90
TIER (=) 3.25
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments and do
not include franchise fees of 4% of your total bill. Any such amounts will be
itemized on your bill.
89
FALCON CABLE TV - TRAPPE, MD (Effective 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL-COMMUNITY ACCESS/PEG
4 QVC
5 WTTG 5-FOX WASHINGTON, DC
* 6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV 24-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKELODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E!-ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $20.08
TIER (=) 4.07
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) at cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
90
FALCON CABLE TV - OXFORD, MD (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL-COMMUNITY ACCESS/PEG
4 QVC
5 WTTG 5-FOX WASHINGTON, DC
* 6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKELODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E!-ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $20.12
TIER (=) 4.26
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 are available for
rent can only be received via cable through a converter box, unless you have a
cable-ready TV set converter boxes at the low rate listed above.
The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
91
FALCON CABLE TV - QUEEN ANNE'S COUNTY, MD (Effective: 10/1/96)
CHANNEL LINE-UP ---------------------------------------------------------------
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL-COMMUNITY ACCESS/PEG
4 QVC
5 WTTG 5-FOX WASHINGTON, DC
* 6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV 24-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKELODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E! - ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $20.31
TIER (=) 3.72
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and
assessments and do not include franchise fees of 3% of your total bill. Any
such amounts will be itemized on your bill.
92
FALCON CABLE TV - QUEENSTOWN, MD (Effective: 10/1/96)
CHANNEL LINE-UP ---------------------------------------------------------------
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL-COMMUNITY ACCESS/PEG
4 QVC
5 WTTG 5-FOX WASHINGTON, DC
* 6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV 24-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKELODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E! - ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $20.67
TIER (=) 3.33
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and
assessments and do not include franchise fees of 3% of your total bill. Any
such amounts will be itemized on your bill.
93
FALCON CABLE TV - ROCK HALL, MD (Effective: 10/1/96)
CHANNEL LINE-UP ---------------------------------------------------------------
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL-COMMUNITY ACCESS/PEG
4 QVC
5 WTTG 5-FOX WASHINGTON, DC
* 6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV 24-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKELODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E! - ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $20.35
TIER (=) 3.82
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and
assessments and do not include franchise fees of 5% of your basic rate. Any
such amounts will be itemized on your bill.
94
FALCON CABLE TV - ST. MICHAELS, MD (Effective: 10/1/96)
CHANNEL LINE-UP ---------------------------------------------------------------
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL-COMMUNITY ACCESS/PEG
4 QVC
5 WTTG 5-FOX WASHINGTON, DC
* 6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV 24-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKELODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E! - ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $20.84
TIER (=) 3.36
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and
assessments and do not include franchise fees of 3% of your total bill. Any
such amounts will be itemized on your bill.
95
FALCON CABLE TV - SUDLERSVILLE, MD (Effective: 10/1/96)
CHANNEL LINE-UP ---------------------------------------------------------------
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL-COMMUNITY ACCESS/PEG
4 QVC
5 WTTG 5-FOX WASHINGTON, DC
* 6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV 24-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKELODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E! - ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $20.66
TIER (=) 3.58
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments and do
not include franchise fees of 3% of your total bill. Any such amounts will be
itemized on your bill.
96
FALCON CABLE TV - TALBOT COUNTY, MD (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL-COMMUNITY ACCESS/PEG
4 QVC
5 WTTG 5-FOX WASHINGTON, DC
* 6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKELODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E!-ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $21.78
TIER (=) 3.66
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
97
FALCON CABLE TV - TEMPLEVILLE, MD (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WMAR-TV 2-ABC BALTIMORE, MD
3 LOCAL-COMMUNITY ACCESS/PEG
4 QVC
5 WTTV 5-FOX WASHINGTON, DC
6 CINEMAX
7 WJLA-TV 7-ABC WASHINGTON, DC
8 ESPN
9 WUSA 9-CBS WASHINGTON, DC
10 WBFF 45-FOX BALTIMORE, MD
11 WBAL-TV 11-NBC BALTIMORE, MD
12 WETA-TV 26-PBS WASHINGTON, DC
12 MOR MUSIC TV
13 WJZ-TV 13-CBS BALTIMORE, MD
14 WNUV-TV 54-IND/UPN BALTIMORE, MD
* 15 SHOWTIME
16 WBOC-TV 16-CBS SALISBURY, MD
17 HOME TEAM SPORTS
18 WDCA 20-IND/UPN WASHINGTON, DC
19 LOCAL - COMMUNITY ACCESS/PEG
* 20 HBO
* 21 THE MOVIE CHANNEL
22 WMPT 22-PBS ANNAPOLIS, MD
+ 23 THE DISCOVERY CHANNEL
+ 24 THE FAMILY CHANNEL
+ 25 WTBS 17-IND ATLANTA, GA
26 WHSW-TV-HSN BALTIMORE, MD
27 CNN
= 28 USA NETWORK
= 29 ARTS & ENTERTAINMENT
= 30 SCI-FI CHANNEL
= 31 THE WEATHER CHANNEL
= 32 THE NASHVILLE NETWORK
33 NICKELODEON
34 TNT
35 LIFETIME
36 FX
37 C-SPAN
38 CNN HEADLINE NEWS
39 AMERICAN MOVIE CLASSICS
40 TRINITY BROADCAST NETWORK
41 THE LEARNING CHANNEL
42 CNBC
43 COUNTRY MUSIC TV
+ 44 THE DISNEY CHANNEL
45 BLACK ENTERTAINMENT TV
46 BRAVO
47 E!-ENTERTAINMENT TV
48 MTV
49 HOME & GARDEN TV
50 VH-1
+ 51 ESPN 2
= 52 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $21.05
TIER (=) 3.04
SATELLITE PACKAGE 1 (+) 5.72
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.69
NON-ADDRESSABLE CONVERTER 2.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 20.00
LOST/STOLEN CONVERTER EQUIP 200.00
DAMAGED CONVERTER EQUIPMENT 200.00
LOST/STOLEN REMOTE 15.00
DAMAGED REMOTE 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
SEGA CHANNEL 12.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
98
FALCON CABLE TV - CALIFORNIA CITY, CA (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 KCBS-TV 2-CBS LOS ANGELES, CA
3 ARTS & ENTERTAINMENT
4 KNBC 4-NBC LOS ANGELES, CA
5 KTLA 5-IND/WBN LOS ANGELES, CA
6 KCET 28-PBS LOS ANGELES, CA
7 KABC-TV 7-ABC LOS ANGELES, CA
8 KHIZ 64-IND BARSTOW, CA
9 KCAL 9-IND LOS ANGELES, CA
10 THE LEARNING CHANNEL
11 FOX NETWORK
12 WGN-TV
13 KCOP 13-IND/UPN LOS ANGELES, CA
14 QVC
15 KERO-TV 23-CBS/ABC BAKERSFIELD, CA
16 WTBS 17-IND ATLANTA, GA
17 C-SPAN
+ 18 CNN
19 THE WEATHER CHANNEL
19 LOCAL - GOVERNMENT ACCESS
+ 20 NICKELODEON
+ 21 CNN HEADLINE NEWS
+ 22 THE DISCOVERY CHANNEL
= 23 AMERICAN MOVIE CLASSICS
= 24 THE FAMILY CHANNEL
= 25 LIFETIME
= 26 ESPN
= 27 SCI-FI CHANNEL
= 28 THE NASHVILLE NETWORK
= 29 COUNTRY MUSIC TV
30 COMEDY CENTRAL
30 VH-1
31 MTV
32 TNT
+ 33 PRIME SPORTS
* 34 HBO
* 35 CINEMAX
36 KBAK-TV 29-ABC/CBS BAKERSFIELD, CA
* 37 SHOWTIME
* 38 THE MOVIE CHANNEL
+ 39 THE DISNEY CHANNEL
+ 40 USA NETWORK
41 HOME SHOPPING NETWORK
+ 42 TV FOOD NETWORK
RATES___________________________________________________________________________
BASIC $15.80
TIER (=) 6.00
SATELLITE PACKAGE 1(+) 6.70
BASIC ON ADDITIONAL OUTLET 0.00
ADDL SATELLITE PACKAGE 50% of 1st
Outlet
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.34
ADDRESSABLE CONVERTER 4.49
NON-ADDRESSABLE CONVERTER 2.04
RADIO SERVICE 1.95
VIDEO CONTROL CENTER 0.89
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 25.00
CONVERTER EQUIPMENT DEPOSIT 25.00
LOST/STOLEN CONVERTER EQUIP 250.00
FIELD COLLECTION 15.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
PREMIUM ON ADDL OUTLET 5.20
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and
assessments. Any such amounts will be itemized on your bill.
99
FALCON CABLE TV - REDMOND, OR (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 KATU 2-ABC PORTLAND, OR
3 BLAZERCABLE
3 LOCAL - GOVERNMENT ACCESS
4 QVC
5 KTVZ 21-NBC BEND, OR
6 KOIN 6-CBS PORTLAND, OR
7 KOAB-TV 3-PBS BEND, OR
8 THE DISCOVERY CHANNEL
9 KEZI 9-ABC EUGENE, OR
10 ESPN
11 ARTS & ENTERTAINMENT
12 KPTV 12-IND/UPN PORTLAND, OR
13 KPDX 49-FOX VANCOUVER, WA
14 NOSTALGIA
15 THE WEATHER CHANNEL
16 LIFETIME
17 NICKELODEON
18 BRAVO
* 19 SHOWTIME
* 20 HBO
* 21 THE MOVIE CHANNEL
* 22 ENCORE
+ 23 THE NASHVILLE NETWORK
+ 24 WTBS 17-IND ATLANTA, GA
+ 25 TNT
+ 26 CNN
+ 27 THE FAMILY CHANNEL
+ 28 THE DISNEY CHANNEL
= 29 USA NETWORK
= 30 SCI-FI CHANNEL
= 31 VH-1
60 COMEDY CENTRAL
61 HOME & GARDEN TV
RATES___________________________________________________________________________
BASIC $22.66
TIER (=) 2.08
SATELLITE PACKAGE 1 (+) 7.83
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.22
ADDRESSABLE CONVERTER 3.72
NON-ADDRESSABLE CONVERTER 1.49
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
LOST/STOLEN CONVERTER EQUIP 150.00
PREMIUM SERVICES (*)------------------------------------------------------------
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
ENCORE 5.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
100
FALCON CABLE TV - DESCHUTES COUNTY, OR (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 KATU 2-ABC PORTLAND, OR
3 BLAZERCABLE
3 LOCAL - GOVERNMENT ACCESS
4 QVC
5 KTVZ 21-NBC BEND, OR
6 KOIN 6-CBS PORTLAND, OR
7 KOAB-TV 3-PBS BEND, OR
8 THE DISCOVERY CHANNEL
9 KEZI 9-ABC EUGENE, OR
10 ESPN
11 ARTS & ENTERTAINMENT
12 KPTV 12-IND/UPN PORTLAND, OR
13 KPDX 49-FOX VANCOUVER, WA
14 NOSTALGIA
15 THE WEATHER CHANNEL
16 LIFETIME
17 NICKELODEON
18 BRAVO
* 19 SHOWTIME
* 20 HBO
* 21 THE MOVIE CHANNEL
* 22 ENCORE
+ 23 THE NASHVILLE NETWORK
+ 24 WTBS 17-IND ATLANTA, GA
+ 25 TNT
+ 26 CNN
+ 27 THE FAMILY CHANNEL
+ 28 THE DISNEY CHANNEL
= 29 USA NETWORK
= 30 SCI-FI CHANNEL
= 31 VH-1
60 COMEDY CENTRAL
61 HOME & GARDEN TV
RATES___________________________________________________________________________
BASIC $22.97
TIER (=) 2.09
SATELLITE PACKAGE 1 (+) 7.83
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.22
ADDRESSABLE CONVERTER 3.72
NON-ADDRESSABLE CONVERTER 1.49
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
LOST/STOLEN CONVERTER EQUIP 150.00
PREMIUM SERVICES (*)------------------------------------------------------------
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
ENCORE 5.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can
only be received via cable through a converter box, unless you have
a cable-ready TV set. Converter boxes are available for rent at the
low rate listed above.
The above rates may not include applicable taxes, fees and assessments.
Any such amounts will be itemized on your bill.
101
FALCON CABLE TV - ADAIR COUNTY, KY (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WKSO-TV 29-PBS SOMERSET, KY
3 WTBS 17-IND ATLANTA, GA
4 ESPN
5 WLEX-TV 18-NBC LEXINGTON, KY
6 WKYT-TV 27-CBS LEXINGTON, KY
7 WDKY-TV 56-FOX DANVILLE, KY
8 LOCAL-COMMUNITY ACCESS/PEG
9 WDRB-TV 41-FOX LOUISVILLE, KY
10 WLKY-TV 32-CBS LOUISVILLE, KY
11 WHAS-TV 11-ABC LOUISVILLE, KY
12 WGRB 34-FOX CAMPBELLSVILLE, KY
13 WBKO 13-ABC BOWLING GREEN, KY
* 14 HBO
* 15 CINEMAX
16 WGN-TV
* 17 SHOWTIME
* 18 THE MOVIE CHANNEL
19 QVC
20 ARTS & ENTERTAINMENT
21 WNBC 4-NBC NEW YORK, NY
22 WWOR-TV
23 CNN
= 24 THE DISNEY CHANNEL
= 25 ESPN 2
= 26 USA NETWORK
= 27 THE FAMILY CHANNEL
= 28 THE WEATHER CHANNEL
= 29 TNT
= 30 THE NASHVILLE NETWORK
31 THE DISCOVERY CHANNEL
32 CNN HEADLINE NEWS
33 COUNTRY MUSIC TV
34 VH-1
35 SCI-FI CHANNEL
36 MTV
37 C-SPAN
38 FX
39 HOME SHOPPING NETWORK
40 NICKELODEON
RATES___________________________________________________________________________
BASIC $18.94
TIER (=) 5.48
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.87
NON-ADDRESSABLE CONVERTER 1.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 200.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready
TV set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
102
FALCON CABLE TV - COLUMBIA, KY (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WKSO-TV 29-PBS SOMERSET, KY
3 WTBS 17-IND ATLANTA, GA
4 ESPN
5 WLEX-TV 18-NBC LEXINGTON, KY
6 WKYT-TV 27-CBS LEXINGTON, KY
7 WDKY-TV 56-FOX DANVILLE, KY
8 LOCAL - COMMUNITY ACCESS/PEG
9 WDRB-TV 41-FOX LOUISVILLE, KY
10 WLKY-TV 32-CBS LOUISVILLE, KY
11 WHAS-TV 11-ABC LOUISVILLE, KY
12 WGRB 34-FOX CAMPBELLSVILLE, KY
13 WBKO 13-ABC BOWLING GREEN, KY
* 14 HBO
* 15 CINEMAX
16 WGN-TV
* 17 SHOWTIME
* 18 THE MOVIE CHANNEL
19 QVC
20 ARTS & ENTERTAINMENT
21 WNBC 4-NBC NEW YORK, NY
22 WWOR-TV
23 CNN
= 24 THE DISNEY CHANNEL
= 25 ESPN 2
= 26 USA NETWORK
= 27 THE FAMILY CHANNEL
= 28 THE WEATHER CHANNEL
= 29 TNT
= 30 THE NASHVILLE NETWORK
31 THE DISCOVERY CHANNEL
32 CNN HEADLINE NEWS
33 COUNTRY MUSIC TV
34 VH-1
35 SCI-FI CHANNEL
36 MTV
37 C-SPAN
38 FX
39 HOME SHOPPING NETWORK
40 NICKELODEON
RATES___________________________________________________________________________
BASIC $18.54
TIER (=) 5.85
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.87
NON-ADDRESSABLE CONVERTER 1.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 200.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
SHOWTIME 10.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
103
FALCON CABLE TV - EUBANK, KY (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WKSO-TV 29-PBS SOMERSET, KY
3 NICKELODEON
4 ARTS & ENTERTAINMENT
5 WLEX-TV 18-NBC LEXINGTON, KY
6 WTVQ-TV 36-ABC LEXINGTON, KY
7 WKYT-TV 27-CBS LEXINGTON, KY
8 WDKY-TV 56-FOX DANVILLE, KY
9 WGRB 34-FOX CAMPBELLSVILLE, KY
10 C-SPAN
11 CNN
12 TNT
+ 13 THE DISNEY CHANNEL
* 14 HBO
* 15 CINEMAX
* 16 THE MOVIE CHANNEL
17 ESPN
18 THE NASHVILLE NETWORK
19 QVC
20 NEW INSPIRATIONAL NETWORK
21 MTV
22 COUNTRY MUSIC TV
+ 23 WTBS 17-IND ATLANTA, GA
+ 24 WWOR-TV
+ 25 WGN-TV
+ 26 THE HISTORY CHANNEL
= 27 USA NETWORK
= 28 SCI-FI CHANNEL
= 29 THE FAMILY CHANNEL
= 30 THE WEATHER CHANNEL
31 CNN HEADLINE NEWS
32 E! - ENTERTAINMENT TV
33 TRINITY BROADCAST NETWORK
34 HOME SHOPPING NETWORK
35 VH-1
RATES___________________________________________________________________________
BASIC $20.49
TIER (=) 3.54
SATELLITE PACKAGE 1 (+) 5.88
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.87
NON-ADDRESSABLE CONVERTER 1.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 200.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
104
FALCON CABLE TV - LINCOLN COUNTY (EUBANK), KY (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WKSO-TV 29-PBS SOMERSET, KY
3 NICKELODEON
4 ARTS & ENTERTAINMENT
5 WLEX-TV 18-NBC LEXINGTON, KY
6 WTVQ-TV 36-ABC LEXINGTON, KY
7 WKYT-TV 27-CBS LEXINGTON, KY
8 WDKY-TV 56-FOX DANVILLE, KY
9 WGRB 34-FOX CAMPBELLSVILLE, KY
10 C-SPAN
11 CNN
12 TNT
+ 13 THE DISNEY CHANNEL
* 14 HBO
* 15 CINEMAX
* 16 THE MOVIE CHANNEL
17 ESPN
18 THE NASHVILLE NETWORK
19 QVC
20 NEW INSPIRATIONAL NETWORK
21 MTV
22 COUNTRY MUSIC TV
+ 23 WTBS 17-IND ATLANTA, GA
+ 24 WWOR-TV
+ 25 WGN-TV
+ 26 THE HISTORY CHANNEL
= 27 USA NETWORK
= 28 SCI-FI CHANNEL
= 29 THE FAMILY CHANNEL
= 30 THE WEATHER CHANNEL
31 CNN HEADLINE NEWS
32 E! - ENTERTAINMENT TV
33 TRINITY BROADCAST NETWORK
34 HOME SHOPPING NETWORK
35 VH-1
RATES___________________________________________________________________________
BASIC $20.38
TIER (=) 3.53
SATELLITE PACKAGE 1 (+) 5.88
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.87
NON-ADDRESSABLE CONVERTER 1.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 200.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
105
FALCON CABLE TV - PULASKI COUNTY (NORTH), KY (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WKSO-TV 29-PBS SOMERSET, KY
3 NICKELODEON
4 ARTS & ENTERTAINMENT
5 WLEX-TV 18-NBC LEXINGTON, KY
6 WTVQ-TV 36-ABC LEXINGTON, KY
7 WKYT-TV 27-CBS LEXINGTON, KY
8 WDKY-TV 56-FOX DANVILLE, KY
9 WGRB 34-FOX CAMPBELLSVILLE, KY
10 C-SPAN
11 CNN
12 TNT
+ 13 THE DISNEY CHANNEL
* 14 HBO
* 15 CINEMAX
* 16 THE MOVIE CHANNEL
17 ESPN
18 THE NASHVILLE NETWORK
19 QVC
20 NEW INSPIRATIONAL NETWORK
21 MTV
22 COUNTRY MUSIC TV
+ 23 WTBS 17-IND ATLANTA, GA
+ 24 WWOR-TV
+ 25 WGN-TV
+ 26 THE HISTORY CHANNEL
= 27 USA NETWORK
= 28 SCI-FI CHANNEL
= 29 THE FAMILY CHANNEL
= 30 THE WEATHER CHANNEL
31 CNN HEADLINE NEWS
32 E!-ENTERTAINMENT TV
33 TRINITY BROADCAST NETWORK
34 HOME SHOPPING NETWORK
35 VH-1
RATES___________________________________________________________________________
BASIC $20.28
TIER (=) 3.57
SATELLITE PACKAGE 1 (+) 5.88
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.87
NON-ADDRESSABLE CONVERTER 1.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 200.00
PREMIUM SERVICES (*)------------------------------------------------------------
CINEMAX 10.95
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
106
FALCON CABLE TV - LINCOLN COUNTY (MCKINNEY), KY (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WKSO-TV 29-PBS SOMERSET, KY
3 CNN HEADLINE NEWS
4 THE NASHVILLE NETWORK
5 WLEX-TV 18-NBC LEXINGTON, KY
6 WTVQ-TV 36-ABC LEXINGTON, KY
7 WKYT-TV 27-CBS LEXINGTON, KY
8 WDRB-TV 41-FOX LOUISVILLE, KY
9 WGRB 34-FOX CAMPBELLSVILLE, KY
10 WDKY-TV 56-FOX DANVILLE, KY
11 CNN
12 NEW INSPIRATIONAL NETWORK
13 ESPN
* 14 HBO
15 E! - ENTERTAINMENT TV
+ 16 THE DISNEY CHANNEL
+ 17 WTBS 17-IND ATLANTA, GA
+ 18 WGN-TV
+ 19 WWOR-TV
= 20 THE FAMILY CHANNEL
= 21 USA NETWORK
= 22 SCI-FI CHANNEL
23 NICKELODEON
24 COUNTRY MUSIC TV
25 C-SPAN
26 MTV
RATES___________________________________________________________________________
BASIC $20.05
TIER (=) 1.96
SATELLITE PACKAGE 1 (+) 4.88
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.87
NON-ADDRESSABLE CONVERTER 1.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 200.00
PREMIUM SERVICES (*)------------------------------------------------------------
THE DISNEY CHANNEL 10.95
HBO 11.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
107
FALCON CABLE TV - LAUREL COUNTY, KY (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WTVQ-TV 36-ABC LEXINGTON, KY
3 WLEX-TV 18-NBC LEXINGTON, KY
4 WTBS 17-IND ATLANTA, GA
5 WKYT-TV 27-CBS LEXINGTON, KY
6 WKSO-TV 29-PBS SOMERSET, KY
* 7 THE MOVIE CHANNEL
8 THE DISCOVERY CHANNEL
9 CNN
10 WYMT-TV 57-CBS HAZARD,KY
11 WWOR-TV
12 WDKY-TV 56-FOX DANVILLE, KY
13 WGN-TV
14 NICKELODEON
15 COUNTRY MUSIC TV
= 16 USA NETWORK
= 17 THE FAMILY CHANNEL
= 18 SCI-FI CHANNEL
= 20 THE NASHVILLE NETWORK
21 ESPN
22 MTV
23 VH-1
24 QVC
25 FX
RATES___________________________________________________________________________
BASIC $18.32
TIER (=) 3.45
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.87
NON-ADDRESSABLE CONVERTER 1.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 200.00
PREMIUM SERVICES (*)------------------------------------------------------------
THE MOVIE CHANNEL 10.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
108
FALCON CABLE TV - CLAY COUNTY, KY (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WTVQ-TV 36-ABC LEXINGTON, KY
3 WLEX-TV 18-NBC LEXINGTON, KY
4 WTBS 17-IND ATLANTA, GA
5 WKYT-TV 27-CBS LEXINGTON, KY
6 WKSO-TV 29-PBS SOMERSET, KY
* 7 THE MOVIE CHANNEL
8 THE DISCOVERY CHANNEL
9 CNN
10 WYMT-TV 57-CBS HAZARD,KY
11 WWOR-TV
12 WDKY-TV 56-FOX DANVILLE, KY
13 WGN-TV
14 NICKELODEON
15 COUNTRY MUSIC TV
= 16 USA NETWORK
= 17 THE FAMILY CHANNEL
= 18 SCI-FI CHANNEL
= 20 THE NASHVILLE NETWORK
21 ESPN
22 MTV
23 VH-1
24 QVC
25 FX
RATES___________________________________________________________________________
BASIC $18.20
TIER (=) 3.71
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.87
NON-ADDRESSABLE CONVERTER 1.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 200.00
PREMIUM SERVICES (*)------------------------------------------------------------
THE MOVIE CHANNEL 10.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
109
FALCON CABLE TV - PULASKI COUNTY (NORTH), KY (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WKSO-TV 29-PBS SOMERSET, KY
3 QVC
4 CNN
5 WLEX-TV 18-NBC LEXINGTON, KY
6 WTVQ-TV 36-ABC LEXINGTON, KY
7 WKYT-TV 27-CBS LEXINGTON, KY
8 LOCAL - COMMUNITY ACCES/PEG
9 WKXT-TV 8-CBS KNOXVILLE, TN
10 WBIR-TV 10-NBC KNOXVILLE, TN
11 ARTS & ENTERTAINMENT
12 WDKY-TV 56-FOX DANVILLE, KY
13 ESPN
* 14 HBO
* 15 PPV SPECIAL EVENTS
* 16 THE MOVIE CHANNEL
17 CNN HEADLINE NEWS
18 VH-1
= 19 SCI-FI CHANNEL
= 20 USA NETWORK
= 21 THE WEATHER CHANNEL
= 22 TNT
+ 23 NICKELODEON
+ 24 THE NASHVILLE NETWORK
+ 25 WTBS 17-IND ATLANTA, GA
+ 26 WGN-TV
+ 27 WWOR-TV
+ 28 THE FAMILY CHANNEL
+ 29 ESPN 2
+ 30 THE DISNEY CHANNEL
31 SPORTSCHANNEL CINCINNATTI
32 MTV
33 COUNTRY MUSIC TV
34 E! - ENTERTAINMENT TV
35 C-SPAN
36 FX
37 HOME SHOPPING NETWORK
38 TRINITY BROADCAST NETWORK
+ 39 NEWSTALK TELEVISION
RATES___________________________________________________________________________
BASIC $19.83
TIER (=) 1.72
SATELLITE PACKAGE 1 (+) 7.40
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.22
ADDRESSABLE CONVERTER 2.46
NON-ADDRESSABLE CONVERTER 1.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 200.00
PREMIUM SERVICES (*)------------------------------------------------------------
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
PAY PER VIEW MOVIE 3.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can
only be received via cable through a converter box, unless you have
a cable-ready TV set. Converter boxes are available for rent at the
low rate listed above.
The above rates may not include applicable taxes, fees and assessments.
Any such amounts will be itemized on your bill.
110
FALCON CABLE TV - SCIENCE HILL, KY (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WKSO-TV 29-PBS SOMERSET, KY
3 QVC
4 CNN
5 WLEX-TV 18-NBC LEXINGTON, KY
6 WTVQ-TV 36-ABC LEXINGTON, KY
7 WKYT-TV 27-CBS LEXINGTON, KY
8 LOCAL - COMMUNITY ACCESS/PEG
9 WKXT-TV 8-CBS KNOXVILLE, TN
10 WBIR-TV 10-NBC KNOXVILLE, TN
11 ARTS & ENTERTAINMENT
12 WDKY-TV 56-FOX DANVILLE, KY
13 ESPN
* 14 HBO
* 15 PPV SPECIAL EVENTS
* 16 THE MOVIE CHANNEL
17 CNN HEADLINE NEWS
18 VH-1
= 19 SCI-FI CHANNEL
= 20 USA NETWORK
= 21 THE WEATHER CHANNEL
= 22 TNT
+ 23 NICKELODEON
+ 24 THE NASHVILLE NETWORK
+ 25 WTBS 17-IND ATLANTA, GA
+ 26 WGN-TV
+ 27 WWOR-TV
+ 28 THE FAMILY CHANNEL
+ 29 ESPN 2
+ 30 THE DISNEY CHANNEL
31 SPORTSCHANNEL CINCINNATI
32 MTV
33 COUNTRY MUSIC TV
34 E! - ENTERTAINMENT TV
35 C-SPAN
36 FX
37 HOME SHOPPING NETWORK
38 TRINITY BROADCAST NETWORK
+ 39 NEWSTALK TELEVISION
RATES___________________________________________________________________________
BASIC $19.58
TIER (=) 1.76
SATELLITE PACKAGE 1 (+) 7.40
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.22
ADDRESSABLE CONVERTER 2.46
NON-ADDRESSABLE CONVERTER 1.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 200.00
PREMIUM SERVICES (*)------------------------------------------------------------
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
PAY PER VIEW MOVIE 3.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
111
FALCON CABLE TV - SOMERSET, KY (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WKSO-TV 29-PBS SOMERSET, KY
3 QVC
4 CNN
5 WLEX-TV 18-NBC LEXINGTON, KY
6 WTVQ-TV 36-ABC LEXINGTON, KY
7 WKYT-TV 27-CBS LEXINGTON, KY
8 LOCAL - COMMUNITY ACCESS/PEG
9 WKXT-TV 8-CBS KNOXVILLE, TN
10 WBIR-TV 10-NBC KNOXVILLE, TN
11 ARTS & ENTERTAINMENT
12 WDKY-TV 56-FOX DANVILLE, KY
13 ESPN
* 14 HBO
* 15 PPV SPECIAL EVENTS
* 16 THE MOVIE CHANNEL
17 CNN HEADLINE NEWS
18 VH-1
= 19 SCI-FI CHANNEL
= 20 USA NETWORK
= 21 THE WEATHER CHANNEL
= 22 TNT
+ 23 NICKELODEON
+ 24 THE NASHVILLE NETWORK
+ 25 WTBS 17-IND ATLANTA, GA
+ 26 WGN-TV
+ 27 WWOR-TV
+ 28 THE FAMILY CHANNEL
+ 29 ESPN 2
+ 30 THE DISNEY CHANNEL
31 SPORTSCHANNEL CINCINNATI
32 MTV
33 COUNTRY MUSIC TV
34 E! - ENTERTAINMENT TV
35 C-SPAN
36 FX
37 HOME SHOPPING NETWORK
38 TRINITY BROADCAST NETWORK
+ 39 NEWSTALK TELEVISION
RATES___________________________________________________________________________
BASIC $19.65
TIER (=) 1.72
SATELLITE PACKAGE 1 (+) 7.40
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.22
ADDRESSABLE CONVERTER 2.46
NON-ADDRESSABLE CONVERTER 1.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 200.00
PREMIUM SERVICES (*)------------------------------------------------------------
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
PAY PER VIEW MOVIE 3.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
112
FALCON CABLE TV - BURNSIDE, KY (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WKSO-TV 29-PBS SOMERSET, KY
3 QVC
4 CNN
5 WLEX-TV 18-NBC LEXINGTON, KY
6 WTVQ-TV 36-ABC LEXINGTON, KY
7 WKYT-TV 27-CBS LEXINGTON, KY
8 LOCAL - COMMUNITY ACCESS/PEG
9 WKXT-TV 8-CBS KNOXVILLE, TN
10 WBIR-TV 10-NBC KNOXVILLE, TN
11 ARTS & ENTERTAINMENT
12 WDKY-TV 56-FOX DANVILLE, KY
13 ESPN
* 14 HBO
* 15 PPV SPECIAL EVENTS
* 16 THE MOVIE CHANNEL
17 CNN HEADLINE NEWS
18 VH-1
= 19 SCI-FI CHANNEL
= 20 USA NETWORK
= 21 THE WEATHER CHANNEL
= 22 TNT
+ 23 NICKELODEON
+ 24 THE NASHVILLE NETWORK
+ 25 WTBS 17-IND ATLANTA, GA
+ 26 WGN-TV
+ 27 WWOR-TV
+ 28 THE FAMILY CHANNEL
+ 29 ESPN 2
+ 30 THE DISNEY CHANNEL
31 SPORTSCHANNEL CINCINNATI
32 MTV
33 COUNTRY MUSIC TV
34 E! - ENTERTAINMENT TV
35 C-SPAN
36 FX
37 HOME SHOPPING NETWORK
38 TRINITY BROADCAST NETWORK
+ 39 NEWSTALK TELEVISION
RATES___________________________________________________________________________
BASIC $19.70
TIER (=) 1.50
SATELLITE PACKAGE 1 (+) 7.40
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.22
ADDRESSABLE CONVERTER 2.46
NON-ADDRESSABLE CONVERTER 1.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 200.00
PREMIUM SERVICES (*)------------------------------------------------------------
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
PAY PER VIEW MOVIE 3.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments. Any
such amounts will be itemized on your bill.
113
FALCON CABLE TV - FERGUSON, KY (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WKSO-TV 29-PBS SOMERSET, KY
3 QVC
4 CNN
5 WLEX-TV 18-NBC LEXINGTON, KY
6 WTVQ-TV 36-ABC LEXINGTON, KY
7 WKYT-TV 27-CBS LEXINGTON, KY
8 LOCAL - COMMUNITY ACCESS/PEG
9 WKXT-TV 8-CBS KNOXVILLE, TN
10 WBIR-TV 10-NBC KNOXVILLE, TN
11 ARTS & ENTERTAINMENT
12 WDKY-TV 56-FOX DANVILLE, KY
13 ESPN
* 14 HBO
* 15 PPV SPECIAL EVENTS
* 16 THE MOVIE CHANNEL
17 CNN HEADLINE NEWS
18 VH-1
= 19 SCI-FI CHANNEL
= 20 USA NETWORK
= 21 THE WEATHER CHANNEL
= 22 TNT
+ 23 NICKELODEON
+ 24 THE NASHVILLE NETWORK
+ 25 WTBS 17-IND ATLANTA, GA
+ 26 WGN-TV
+ 27 WWOR-TV
+ 28 THE FAMILY CHANNEL
+ 29 ESPN 2
+ 30 THE DISNEY CHANNEL
31 SPORTSCHANNEL CINCINNATI
32 MTV
33 COUNTRY MUSIC TV
34 E! - ENTERTAINMENT TV
35 C-SPAN
36 FX
37 HOME SHOPPING NETWORK
38 TRINITY BROADCAST NETWORK
+ 39 NEWSTALK TELEVISION
RATES___________________________________________________________________________
BASIC $19.51
TIER (=) 1.41
SATELLITE PACKAGE 1 (+) 7.40
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.22
ADDRESSABLE CONVERTER 2.46
NON-ADDRESSABLE CONVERTER 1.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 200.00
PREMIUM SERVICES (*)------------------------------------------------------------
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
PAY PER VIEW MOVIE 3.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments and do
not include franchise fees of 3% of your total bill. Any such amounts will be
itemized on your bill.
114
FALCON CABLE TV - PULASKI COUNTY (BURNSIDE), KY (Effective: 10/1/96)
CHANNEL LINE-UP________________________________________________________________
2 WKSO-TV 29-PBS SOMERSET, KY
3 QVC
4 CNN
5 WLEX-TV 18-NBC LEXINGTON, KY
6 WTVQ-TV 36-ABC LEXINGTON, KY
7 WKYT-TV 27-CBS LEXINGTON, KY
8 LOCAL - COMMUNITY ACCESS/PEG
9 WKXT-TV 8-CBS KNOXVILLE, TN
10 WBIR-TV 10-NBC KNOXVILLE, TN
11 ARTS & ENTERTAINMENT
12 WDKY-TV 56-FOX DANVILLE, KY
13 ESPN
* 14 HBO
* 15 PPV SPECIAL EVENTS
* 16 THE MOVIE CHANNEL
17 CNN HEADLINE NEWS
18 VH-1
= 19 SCI-FI CHANNEL
= 20 USA NETWORK
= 21 THE WEATHER CHANNEL
= 22 TNT
+ 23 NICKELODEON
+ 24 THE NASHVILLE NETWORK
+ 25 WTBS 17-IND ATLANTA, GA
+ 26 WGN-TV
+ 27 WWOR-TV
+ 28 THE FAMILY CHANNEL
+ 29 ESPN 2
+ 30 THE DISNEY CHANNEL
31 SPORTSCHANNEL CINCINNATI
32 MTV
33 COUNTRY MUSIC TV
34 E! - ENTERTAINMENT TV
35 C-SPAN
36 FX
37 HOME SHOPPING NETWORK
38 TRINITY BROADCAST NETWORK
+ 39 NEWSTALK TELEVISION
RATES___________________________________________________________________________
BASIC $19.85
TIER (=) 1.41
SATELLITE PACKAGE 1 (+) 7.40
BASIC ON ADDITIONAL OUTLET 0.00
INSTALLATION/SERVICE (per hr.) 45.00
INSTALL MATERIALS (if any) At Cost
REMOTE 0.22
ADDRESSABLE CONVERTER 2.46
NON-ADDRESSABLE CONVERTER 1.00
RADIO SERVICE 1.95
WIRE MAINTENANCE AGREEMENT 1.50
CABLE PROGRAM GUIDE 1.75
LATE PAYMENT FEE 5.00
RETURNED CHECK FEE 10.00
LOST/STOLEN CONVERTER EQUIP 200.00
PREMIUM SERVICES (*)------------------------------------------------------------
THE DISNEY CHANNEL 10.95
HBO 11.95
THE MOVIE CHANNEL 10.95
PAY PER VIEW MOVIE 3.95
________________________________________________________________________________
All Broadcast TV stations carried on a channel higher than 13 can only be
received via cable through a converter box, unless you have a cable-ready TV
set. Converter boxes are available for rent at the low rate listed above.
The above rates may not include applicable taxes, fees and assessments and do
not include franchise fees of 3% of your total bill. Any such amounts will be
itemized on your bill.
115
[LOGO - ARTHUR ANDERSEN LLP]
ADDENDUM 2 Capital Asset Pricing Model & Weighted Average Cost of Capital
116
- --------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
BURKE COUNTY, NC
AS OF DECEMBER 31, 1996
- --------------------------------------------
- --------------------------------------------
DEVELOPMENT OF VALUATION DISCOUNT RATE
- --------------------------------------------
DEVELOPMENT OF EQUITY RATE DEVELOPMENT OF DEBT RATE
Risk Free Rate 6.85% Borrowing Rate 9.75%
Market Return 11.40% Tax Rate (NA - Pre-tax) 0.00%
Market Premium 4.55%
Beta 0.90
Co. Specific Risk 12.00%
Equity Return Rate 22.95% Debt Rate 9.75%
WEIGHTED AVERAGE COST OF CAPITAL CALCULATION
WEIGHTED
RATIO RATE RATE
Debt 60.00% 9.75% 5.85%
Equity 40.00% 22.95% 9.18%
100.00%
WEIGHTED AVERAGE COST OF CAPITAL 15.03%
-----
PRELIMINARY & TENTATIVE - FOR DISCUSSION PURPOSES ONLY ARTHUR ANDERSEN LLP
- ------------------------------------------------------
117
- --------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CALIFORNIA CITY, CALIFORNIA
AS OF DECEMBER 31, 1996
- --------------------------------------------
- --------------------------------------------
DEVELOPMENT OF VALUATION DISCOUNT RATE
- --------------------------------------------
DEVELOPMENT OF EQUITY RATE DEVELOPMENT OF DEBT RATE
Risk Free Rate 6.85% Borrowing Rate 9.75%
Market Return 11.40% Tax Rate (NA-Pre-tax) 0.00%
Market Premium 4.55%
Beta 0.90
Co. Specific Risk 12.00%
Equity Return Rate 22.95% Debt Rate 9.75%
WEIGHTED AVERAGE COST OF CAPITAL CALCULATION
WEIGHTED
RATIO RATE RATE
Debt 60.00% 9.75% 5.85%
Equity 40.00% 22.95% 9.18%
100.00%
WEIGHTED AVERAGE COST OF CAPITAL 15.03%
-----
PRELIMINARY & TENTATIVE - FOR DISCUSSION PURPOSES ONLY ARTHUR ANDERSEN LLP
- ------------------------------------------------------
118
- --------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
CENTREVILLE, MARYLAND
AS OF DECEMBER 31, 1996
- --------------------------------------------
- --------------------------------------------
DEVELOPMENT OF VALUATION DISCOUNT RATE
- --------------------------------------------
DEVELOPMENT OF EQUITY RATE DEVELOPMENT OF DEBT RATE
Risk Free Rate 6.85% Borrowing Rate 9.75%
Market Return 11.40% Tax Rate (NA-Pre-tax) 0.00%
Market Premium 4.55%
Beta 0.90
Co. Specific Risk 10.00%
Equity Return Rate 20.95% Debt Rate 9.75%
WEIGHTED AVERAGE COST OF CAPITAL CALCULATION
WEIGHTED
RATIO RATE RATE
Debt 60.00% 9.75% 5.85%
Equity 40.00% 20.95% 8.38%
100.00%
WEIGHTED AVERAGE COST OF CAPITAL 14.23%
-----
PRELIMINARY & TENTATIVE - FOR DISCUSSION PURPOSES ONLY ARTHUR ANDERSEN LLP
- ------------------------------------------------------
119
- --------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
REDMOND, OREGON
AS OF DECEMBER 31, 1996
- --------------------------------------------
- --------------------------------------------
DEVELOPMENT OF VALUATION DISCOUNT RATE
- --------------------------------------------
DEVELOPMENT OF EQUITY RATE DEVELOPMENT OF DEBT RATE
Risk Free Rate 6.85% Borrowing Rate 9.75%
Market Return 11.40% Tax Rate (NA-Pre-tax) 0.00%
Market Premium 4.55%
Beta 0.90
Co. Specific Risk 12.00%
Equity Return Rate 22.95% Debt Rate 9.75%
WEIGHTED AVERAGE COST OF CAPITAL CALCULATION
WEIGHTED
RATIO RATE RATE
Debt 60.00% 9.75% 5.85%
Equity 40.00% 22.95% 9.18%
100.00%
WEIGHTED AVERAGE COST OF CAPITAL 15.03%
-----
PRELIMINARY & TENTATIVE - FOR DISCUSSION PURPOSES ONLY ARTHUR ANDERSEN LLP
- ------------------------------------------------------
120
- --------------------------------------------
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SOMERSET, KY
AS OF DECEMBER 31, 1996
- --------------------------------------------
- --------------------------------------------
DEVELOPMENT OF VALUATION DISCOUNT RATE
- --------------------------------------------
DEVELOPMENT OF EQUITY RATE DEVELOPMENT OF DEBT RATE
Risk Free Rate 6.85% Borrowing Rate 9.75%
Market Return 11.40% Tax Rate (NA-Pre-tax) 0.00%
Market Premium 4.55%
Beta 0.90
Co. Specific Risk 10.00%
Equity Return Rate 20.95% Debt Rate 9.75%
WEIGHTED AVERAGE COST OF CAPITAL CALCULATION
WEIGHTED
RATIO RATE RATE
Debt 60.00% 9.75% 5.85%
Equity 40.00% 20.95% 8.38%
100.00%
WEIGHTED AVERAGE COST OF CAPITAL 14.23%
-----
PRELIMINARY & TENTATIVE - FOR DISCUSSION PURPOSES ONLY ARTHUR ANDERSEN LLP
- ------------------------------------------------------
121
[LOGO - ARTHUR ANDERSEN LLP]
ADDENDUM 3 Financial History
122
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: BURKE, NC
---------------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96 12/31/95
---------------------------------------------------------------------------------------
REVENUES
Primary - First Outlet $178,389 $2,140,668 $532,529 $2,130,116 $2,042,600 $2,040,107
Primary Commercial $710 $8,520 $2,130 $8,520 $8,520 $8,752
Expanded Tier $0 $0 $0 $0 $0 $0
AG Tier $0 $0 $0 $0 $0 $0
AJ Tier $0 $0 $0 $0 $0 $0
AL Tier $56,384 $676,608 $162,080 $648,320 $574,897 $406,998
Radio Services $2,883 $34,596 $8,871 $35,484 $39,156 $47,713
Pay Cable First Outlet $35,588 $427,056 $105,105 $420,420 $495,343 $583,725
Ala Carte $0 $0 $0 $0 $0 $0
New Product Tier 1 $81,726 $980,712 $246,567 $986,268 $892,061 $948,060
Mini Pay $754 $9,048 $2,349 $9,396 $10,339 $12,990
Pay Per View $7,256 $87,072 $27,881 $111,524 $103,952 $117,381
Primary Additional Outlet $0 $0 $0 $0 $0 $0
Remote Control $348 $4,176 $982 $3,928 $4,148 $4,049
Converter Rental $38,330 $459,960 $115,280 $461,120 $472,318 $488,851
Maintenance Contracts $5,705 $68,460 $17,374 $69,496 $68,243 $62,257
New Customer Pay Installs $0 $0 $0 $0 $0 $5
New Customer Basic Installs $992 $11,904 $5,602 $22,408 $17,625 $28,145
Installation Materials Charge $45 $540 $388 $1,552 $1,095 $400
Installs Non New Customers $3,314 $39,768 $11,168 $44,672 $68,262 $72,044
Classified Ads $157 $1,884 $1,780 $7,120 $4,631 $4,578
Ad Insertion Sales $16,008 $192,096 $44,506 $178,024 $130,958 $93,171
Ad Sales Other $0 $0 $0 $0 $0 $0
Production & Location Origination $297 $3,564 $773 $3,092 $773 $0
Other Late Charges $4,370 $52,440 $13,135 $52,540 $57,190 $63,319
Other Rent ($275) ($3,300) $275 $1,100 $2,695 $3,025
Other Copyright Pass Through $0 $0 $0 $0 $0 $0
Other Miscellaneous $0 $0 $0 $0 $5 $40
FCC User Fees Pass Through $429 $5,148 $1,288 $5,152 $5,259 $5,100
Other Programmers $35 $420 $15,970 $63,880 $16,482 $0
QVC Monthly Commission $943 $11,316 $4,453 $17,812 $16,730 $15,131
QVC Carriage Payment $0 $0 $3,138 $12,552 $12,150 $14,020
HSN Monthly Commission $240 $2,880 $683 $2,732 $9,597 $0
Guides $1,747 $20,964 $5,477 $21,908 $22,758 $26,072
-------- ---------- ---------- ---------- ---------- ----------
Total Revenues $436,375 $5,236,500 $1,329,784 $5,319,136 $5,077,787 $5,045,933
---------------
----------------------------- ADJUSTED
TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING 12/31/96
12/31/94 12/31/93 ANNUALIZED
----------------------------- ---------------
REVENUES
Primary - First Outlet $2,064,907 $2,092,282 $2,140,668
Primary Commercial $5,349 $4,275 $8,520
Expanded Tier $0 $0 $0
AG Tier $0 $471,849 $0
AJ Tier $0 $512,290 $0
Al Tier $159,998 $861 $676,608
Radio Services $58,903 $24,419 $34,596
Pay Cable First Outlet $589,479 $539,269 $427,056
Ala Carte $1,127,729 $292,192 $0
New Product Tier 1 $0 $0 $980,712
Mini Pay $18,230 $34,771 $9,048
Pay Per View $124,007 $99,986 $87,072
Primary Additional Outlet $0 $226,545 $0
Remote Control $4,158 $280,149 $4,176
Converter Rental $489,185 $119,585 $459,960
Maintenance Contracts $47,496 $0 $68,460
New Customer Pay Installs $5 $2,045 $0
New Customer Basic Installs $50,357 $63,122 $11,904
Installation Materials Charge $0 $0 $540
Installs Non New Customers $81,141 $91,838 $39,768
Classified Ads $6,560 $1,260 $1,884
Ad Insertion Sales $111,734 $54,651 $192,096
Ad Sales Other $0 $59 $0
Production & Location Origination $340 $1,013 $3,564
Other Late Charges $68,172 $51,488 $52,440
Other Rent $3,250 $1,300 $0
Other Copyright Pass Through $0 $54,187 $0
Other Miscellaneous $10 $1,770 $0
FCC User Fees Pass Through $120 $0 $5,148
Other Programmers $0 $0 $420
QVC Monthly Commission $19,432 $12,899 $11,316
QVC Carriage Payment $14,020 $14,018 $0
HSN Monthly Commission $0 $0 $2,880
Guides $35,416 $55,022 $20,964
---------- ---------- ----------
Total Revenues $5,079,998 $5,103,145 $5,239,800
123
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: BURKE, NC
---------------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96 12/31/95
---------------------------------------------------------------------------------------
EXPENSES
Technical Salary - Supervisor $0 $0 $0 $0 $0 $0
Technical Salary - Technician $10,403 $124,836 $31,038 $124,152 $117,953 $126,035
Technical Salary - Dispatcher $1,185 $14,220 $3,691 $14,764 $12,477 $14,695
Technical Salary - Installers $4,103 $49,236 $11,623 $46,492 $43,935 $38,074
Overtime/Standby $2,018 $24,216 $5,847 $23,388 $32,158 $47,599
Payroll Taxes $1,135 $13,620 $3,988 $15,952 $15,329 $17,992
Group Insurance $1,020 $12,240 $4,544 $18,176 $22,443 $18,424
Other Benefits ($7,906) ($94,872) ($6,214) ($24,856) $1,400 $11,514
Tech. Allocated Personnel Expense $1,451 $17,412 $3,504 $14,016 $17,104 $8,566
Tech. Allocated P/R Benefit $325 $3,900 $737 $2,948 $3,927 $2,080
Rent - Headend $0 $0 $0 $0 $0 $0
Rent - Poles and Ducts $14,014 $168,168 $42,042 $168,168 $133,373 $77,997
R & M Plant $0 $0 $15 $60 $445 $1,336
R & M Other $2,847 $34,164 $5,233 $20,932 $11,194 $3,062
Material and Reconnect $1,758 $21,096 $6,625 $26,500 $18,197 $8,006
Vehicle - Gas & Oil $3,569 $42,828 $7,866 $31,464 $21,596 $23,575
Vehicle - Service $726 $8,712 $2,182 $8,728 $8,676 $9,952
T & E System Travel $0 $0 $0 $0 $127 $222
T & E System Non-Travel $0 $0 $0 $0 $0 $0
Dues & Subscriptions $0 $0 $143 $572 $1,408 $1,659
Education $0 $0 $0 $0 $0 $223
System Power Costs $5,632 $67,584 $17,453 $69,812 $67,968 $64,859
Recruiting $0 $0 $0 $0 $50 $44
Loss on Converters $58 $696 $174 $696 $696 $1,200
Property Taxes ($6,569) ($78,828) ($329) ($1,316) $24,952 $35,328
Uniforms $1,063 $12,756 $1,847 $7,388 $5,735 $4,217
Small Tool and Safety $0 $0 $58 $232 $684 $1,131
Capital Labor & OH Construction ($7,386) ($88,632) ($27,202) ($108,808) ($185,451) ($99,477)
Capital Labor & OH Customer ($644) ($7,728) ($2,958) ($11,832) ($42,463) ($43,123)
Production & L.O. Personnel Costs $0 $0 $0 $0 $0 $0
Production & L.O. Other Expenses $0 $0 $0 $0 $0 $0
Ad Sales Payroll Taxes $0 $0 $0 $0 $19 $346
Ad Sales Group Insurance $0 $0 $0 $0 $0 ($142)
Ad Sales Alloc. Personnel Expense $1,264 $15,168 $3,523 $14,092 $14,251 $12,975
Ad Sales Alloc. P/R Benefit $437 $5,244 $1,407 $5,628 $5,660 $4,348
Employee Commissions $0 $0 $0 $0 $226 $3,941
Other Ad Sale Expenses $1,271 $15,252 $4,130 $16,520 $15,287 $16,625
---------------
----------------------------- ADJUSTED
TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING 12/31/96
12/31/94 12/31/93 ANNUALIZED
----------------------------- ---------------
EXPENSES
Technical Salary - Supervisor $31,691 $30,472 $0
Technical Salary - Technician $129,889 $124,671 $124,836
Technical Salary - Dispatcher $14,150 $13,374 $14,220
Technical Salary - Installers $39,774 $45,100 $49,236
Overtime/Standby $29,759 $26,787 $24,216
Payroll Taxes $22,200 $22,756 $13,620
Group Insurance $11,796 $28,523 $12,240
Other Benefits $16,443 $16,248 $0
Tech. Allocated Personnel Expense $0 $0 $17,412
Tech. Allocated P/R Benefit $0 $0 $3,900
Rent - Headend $0 $0 $0
Rent - Poles and Ducts $75,962 $69,918 $168,168
R & M Plant $1,879 $292 $0
R & M Other $4,274 $2,556 $34,164
Material and Reconnect $5,436 $3,000 $21,096
Vehicle - Gas & Oil $19,603 $19,713 $42,828
Vehicle - Service $11,954 $6,720 $8,712
T & E System Travel $1,150 $2,138 $0
T & E System Non-Travel $0 $194 $0
Dues & Subscriptions $1,148 $1,913 $0
Education $0 $217 $0
System Power Costs $67,552 $67,490 $67,584
Recruiting $149 $0 $0
Loss on Converters $1,200 $1,200 $696
Property Taxes $48,689 $45,600 $25,000
Uniforms $4,481 $4,238 $12,756
Small Tool and Safety $1,665 $1,342 $0
Capital Labor & OH Construction ($50,080) ($60,659) $0
Capital Labor & OH Customer ($55,017) ($43,436) $0
Production & L.O. Personnel Costs $17,224 $0 $0
Production & L.O. Other Expenses $911 $1,719 $0
Ad Sales Payroll Taxes $2,281 $2,760 $0
Ad Sales Group Insurance $484 $4,863 $0
Ad Sales Alloc. Personnel Expense $13,444 $7,918 $15,168
Ad Sales Alloc. P/R Benefit $4,844 $2,736 $5,244
Employee Commissions $28,252 $12,134 $0
Other Ad Sale Expenses $21,875 $31,647 $15,252
124
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: BURKE, NC
---------------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96 12/31/95
---------------------------------------------------------------------------------------
Marketing Salary & Benefits $0 $0 $0 $0 $0 $0
Marketing Employee Commissions $441 $5,292 $711 $2,844 $844 $221
Marketing Expenses $6,514 $78,168 $5,421 $21,684 $36,286 $46,009
Dues and Subscriptions $41 $492 $131 $524 $331 $1,333
Pay Per View Expenses $1,259 $15,108 $4,552 $18,208 $20,113 $24,242
Video Game Expenses $0 $0 $0 $0 $0 $0
Miscellaneous Marketing Expenses $3,240 $38,880 $7,322 $29,288 $12,144 $6,649
G & A Salary - Supervisor $0 $0 $0 $0 $0 $23,366
G & A Salary - CSR $6,917 $83,004 $20,771 $83,084 $84,179 $69,180
G & A Overtime/Standby $538 $6,456 $1,217 $4,868 $8,984 $5,390
G & A Payroll Taxes $530 $6,360 $1,768 $7,072 $8,051 $8,451
G & A Group Insurance $472 $5,664 $2,621 $10,484 $13,489 $15,133
G & A Other Benefits ($906) ($10,872) ($2,718) ($10,872) ($10,872) ($2,489)
Contract Labor $0 $0 $48 $192 $3,648 $224
G & A Allocated Personnel Expense $3,596 $43,152 $11,181 $44,724 $40,231 $15,263
G & A Allocated P/R Benefit $1,882 $22,584 $3,690 $14,760 $10,148 $3,400
Rent - Office $0 $0 $0 $0 $0 $0
R & M - Office $618 $7,416 $1,760 $7,040 $8,365 $6,080
Office Supplies $467 $5,604 $1,287 $5,148 $6,257 $5,979
Xerox & Printing $89 $1,068 $574 $2,296 $3,080 $1,938
Vehicle - Gas & Oil $0 $0 $36 $144 $208 $128
T & E System Travel $0 $0 $146 $584 $921 $373
T & E System Non-Travel $0 $0 $17 $68 $400 $13
Dues and Subscriptions $148 $1,776 $314 $1,256 $384 $635
Conventions - Travel $0 $0 $0 $0 $198 $13
Education $7 $84 $6 $24 $635 $2,254
Recruiting $0 $0 $0 $0 $27 $0
Insurance $7,511 $90,132 $14,973 $59,892 $113,877 $90,917
Legal $450 $5,400 $4,850 $19,400 $10,983 $8,858
Audit & Taxes $762 $9,144 $2,285 $9,140 $11,406 $15,709
Association - Dues $305 $3,660 $917 $3,668 $3,803 $4,691
Association - Lobbying $68 $816 $203 $812 $837 $886
Political Contribution $0 $0 $0 $0 $0 $0
Donations/Public Relations $261 $3,132 $499 $1,996 $1,186 $4,291
Customer Billing $4,896 $58,752 $15,069 $60,276 $62,072 $66,402
Postage & Messengers $3,995 $47,940 $12,592 $50,368 $52,083 $50,460
Utilities $357 $4,284 $1,187 $4,748 $5,901 $5,960
Telephone $1,705 $20,460 $4,073 $16,292 $16,787 $16,187
Tax & Licenses $94 $1,128 $303 $1,212 $1,838 $392
---------------
----------------------------- ADJUSTED
TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING 12/31/96
12/31/94 12/31/93 ANNUALIZED
----------------------------- ---------------
Marketing Salary & Benefits $0 $29 $0
Marketing Employee Commissions $2,619 $3,878 $5,292
Marketing Expenses $80,112 $38,090 $78,168
Dues and Subscriptions $573 $2,575 $492
Pay Per View Expenses $22,329 $15,732 $15,108
Video Game Expenses $0 $0 $0
Miscellaneous Marketing Expenses $5,592 $6,250 $38,880
G & A Salary - Supervisor $67,016 $64,061 $0
G & A Salary - CSR $63,316 $57,121 $83,004
G & A Overtime/Standby $5,032 $4,570 $6,456
G & A Payroll Taxes $12,962 $12,545 $6,360
G & A Group Insurance $11,280 $26,291 $5,664
G & A Other Benefits $3,057 $27,720 ($10,872)
Contract Labor $0 $0 $0
G & A Allocated Personnel Expense ($19,531) $0 $43,152
G & A Allocated P/R Benefit ($2,469) $0 $22,584
Rent - Office $0 $4,208 $0
R & M - Office $4,067 $5,858 $7,416
Office Supplies $6,935 $5,235 $5,604
Xerox & Printing $3,027 $3,855 $1,068
Vehicle - Gas & Oil $718 $524 $0
T & E System Travel $5,040 $801 $0
T & E System Non-Travel $0 $1,099 $0
Dues and Subscriptions $687 $508 $1,776
Conventions - Travel $75 $1,452 $0
Education $1,782 $715 $84
Recruiting $95 $0 $0
Insurance $95,757 $80,960 $90,132
Legal $9,400 $6,400 $5,400
Audit & Taxes $25,084 $31,758 $9,144
Association - Dues $5,375 $5,804 $3,660
Association - Lobbying $920 $0 $816
Political Contribution $100 $29 $0
Donations/Public Relations $4,826 $3,900 $3,132
Customer Billing $69,564 $66,873 $58,752
Postage & Messengers $52,996 $49,570 $47,940
Utilities $7,664 $6,535 $4,284
Telephone $16,972 $17,628 $20,460
Tax & Licenses $263 $1,169 $1,128
125
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: BURKE, NC
---------------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96 12/31/95
---------------------------------------------------------------------------------------
FCC User Fees $473 $5,676 $1,417 $5,668 $5,904 $5,491
Reregulation Costs $4 $48 $3,505 $14,020 $9,886 $16,240
CATV Franchise $6,894 $82,728 $15,692 $62,768 $45,484 $69,124
Copyright Fees $14,819 $177,828 $33,726 $134,904 $120,035 $91,053
BMI License Fees $0 $0 ($567) ($2,268) $3,917 $0
ASCAP License Fees $649 $7,788 $1,948 $7,792 $5,009 $0
Bad Debt Expense $4,368 $52,416 $8,625 $34,500 $54,212 $68,861
Cap. Labor & OH Other ($186) ($2,232) ($745) ($2,980) ($9,058) ($13,263)
G & A Miscellaneous Expense $602 $7,224 $1,723 $6,892 $2,501 $2,321
Primary Satellite Fees $44,245 $530,940 $133,476 $533,904 $533,833 $497,181
Program Guides $1,360 $16,320 $5,860 $23,440 $21,264 $20,904
Pay TV Fees $19,041 $228,492 $50,929 $203,716 $273,126 $370,035
Pay Per View Fees $4,557 $54,684 $16,038 $64,152 $59,250 $54,746
-------- ---------- -------- ---------- ---------- ----------
Total Expenses $174,857 $2,098,284 $510,400 $2,041,600 $2,023,543 $2,094,514
Operating Income $261,518 $3,138,216 $819,384 $3,277,536 $3,054,244 $2,951,419
Operating Margin 59.93% 59.93% 61.62% 61.62% 60.15% 58.49%
---------------
----------------------------- ADJUSTED
TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING 12/31/96
12/31/94 12/31/93 ANNUALIZED
----------------------------- ---------------
FCC User Fees $4,164 $0 $5,676
Reregulation Costs $17,935 $13,149 $48
CATV Franchise $73,527 $106,468 $82,728
Copyright Fees $40,746 $144,292 $177,828
BMI License Fees $0 $0 $0
ASCAP License Fees $0 $0 $7,788
Bad Debt Expense $72,445 $84,451 $52,416
Cap. Labor & OH Other ($16,753) ($14,562) $0
G & A Miscellaneous Expense $3,230 $2,921 $7,224
Primary Satellite Fees $436,931 $457,835 $530,940
Program Guides $22,404 $23,984 $16,320
Pay TV Fees $381,017 $354,187 $228,492
Pay Per View Fees $68,247 $60,329 $54,684
---------- ---------- ----------
Total Expenses $2,192,190 $2,280,941 $2,395,576
Operating Income $2,887,808 $2,822,204 $2,844,224
Operating Margin 56.85% 55.30% 54.28%
126
SYSTEM LOCATION: BURKE, NC
-------------------------------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
-------------------------------------------------------------------------
REVENUES
Primary - First Outlet $2,130,116 $2,042,600 $2,040,107 $2,064,907 $2,092,282
Primary Commercial $8,520 $8,520 $8,752 $5,349 $4,275
Expanded Tier $0 $0 $0 $0 $0
AG Tier $0 $0 $0 $0 $471,849
AJ Tier $0 $0 $0 $0 $512,290
AL Tier $648,320 $574,897 $406,998 $159,998 $861
Radio Services $35,484 $39,156 $47,713 $58,903 $24,419
Pay Cable First Outlet $420,420 $495,343 $583,725 $589,479 $539,269
Ala Carte $0 $0 $0 $1,127,729 $292,192
New Product Tier 1 $986,268 $892,061 $948,060 $0 $0
Mini Pay $9,396 $10,339 $12,990 $18,230 $34,771
Pay Per View $111,524 $103,952 $117,381 $124,007 $99,986
Primary Additional Outlet $0 $0 $0 $0 $226,545
Remote Control $3,928 $4,148 $4,049 $4,158 $280,149
Converter Rental $461,120 $472,318 $488,851 $489,185 $119,585
Maintenance Contracts $69,496 $68,243 $62,257 $47,496 $0
New Customer Pay Installs $0 $0 $5 $5 $2,045
New Customer Basic Installs $22,408 $17,625 $28,145 $50,357 $63,122
Installation Materials Charge $1,552 $1,095 $400 $0 $0
Installs Non New Customers $44,672 $68,262 $72,044 $81,141 $91,838
Classified Ads $7,120 $4,631 $4,578 $6,560 $1,260
Ad Insertion Sales $178,024 $130,958 $93,171 $111,734 $54,651
Ad Sales Other $0 $0 $0 $0 $59
Production & Location Origination $3,092 $773 $0 $340 $1,013
Other Late Charges $52,540 $57,190 $63,319 $68,172 $51,488
Other Rent $1,100 $2,695 $3,025 $3,250 $1,300
Other Copyright Pass Through $0 $0 $0 $0 $54,187
Other Miscellaneous $0 $5 $40 $10 $1,770
FCC User Fees Pass Through $5,152 $5,259 $5,100 $120 $0
Other Programmers $63,880 $16,482 $0 $0 $0
QVC Monthly Commission $17,812 $16,730 $15,131 $19,432 $12,899
QVC Carriage Payment $12,552 $12,150 $14,020 $14,020 $14,018
HSN Monthly Commission $2,732 $9,597 $0 $0 $0
Guides $21,908 $22,758 $26,072 $35,416 $55,022
---------- ---------- ---------- ---------- ----------
Total Revenues $5,319,136 $5,077,787 $5,045,933 $5,079,998 $5,103,145
127
SYSTEM LOCATION: BURKE, NC
-------------------------------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
-------------------------------------------------------------------------
EXPENSES
Technical Salary - Supervisor $0 $0 $0 $31,691 $30,472
Technical Salary - Technician $124,152 $117,953 $126,035 $129,889 $124,671
Technical Salary - Dispatcher $14,764 $12,477 $14,695 $14,150 $13,374
Technical Salary - Installers $46,492 $43,935 $38,074 $39,774 $45,100
Overtime/Standby $23,388 $32,158 $47,599 $29,759 $26,787
Payroll Taxes $15,952 $15,329 $17,992 $22,200 $22,756
Group Insurance $18,176 $22,443 $18,424 $11,796 $28,523
Other Benefits $0 $1,400 $11,514 $16,443 $16,248
Tech. Allocated Personnel Expense $14,016 $17,104 $8,566 $0 $0
Tech. Allocated P/R Benefit $2,948 $3,927 $2,080 $0 $0
Rent - Headend $0 $0 $0 $0 $0
Rent - Poles and Ducts $168,168 $133,373 $77,997 $75,962 $69,918
R & M Plant $60 $445 $1,336 $1,879 $292
R & M Other $20,932 $11,194 $3,062 $4,274 $2,556
Material and Reconnect $26,500 $18,197 $8,006 $5,436 $3,000
Vehicle - Gas & Oil $31,464 $21,596 $23,575 $19,603 $19,713
Vehicle - Service $8,728 $8,676 $9,952 $11,954 $6,720
T & E System Travel $0 $127 $222 $1,150 $2,138
T & E System Non-Travel $0 $0 $0 $0 $194
Dues & Subscriptions $572 $1,408 $1,659 $1,148 $1,913
Education $0 $0 $223 $0 $217
System Power Costs $69,812 $67,968 $64,859 $67,552 $67,490
Recruiting $0 $50 $44 $149 $0
Loss on Converters $696 $696 $1,200 $1,200 $1,200
Property Taxes $25,000 $24,952 $35,328 $48,689 $45,600
Uniforms $7,388 $5,735 $4,217 $4,481 $4,238
Small Tool and Safety $232 $684 $1,131 $1,665 $1,342
Capital Labor & OH Construction $0 $0 $0 $0 $0
Capital Labor & OH Customer $0 $0 $0 $0 $0
Production & L.O. Personnel Costs $0 $0 $0 $17,224 $0
Production & L.O. Other Expenses $0 $0 $0 $911 $1,719
Ad Sales Payroll Taxes $0 $19 $346 $2,281 $2,760
Ad Sales Group Insurance $0 $0 $0 $484 $4,863
Ad Sales Alloc. Personnel Expense $14,092 $14,251 $12,975 $13,444 $7,918
Ad Sales Alloc. P/R Benefit $5,628 $5,660 $4,348 $4,844 $2,736
Employee Commissions $0 $226 $3,941 $28,252 $12,134
Other Ad Sale Expenses $16,520 $15,287 $16,625 $21,875 $31,647
128
SYSTEM LOCATION: BURKE, NC
-------------------------------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
-------------------------------------------------------------------------
Marketing Salary & Benefits $0 $0 $0 $0 $29
Marketing Employee Commissions $2,844 $844 $221 $2,619 $3,878
Marketing Expenses $21,684 $36,286 $46,009 $80,112 $38,090
Dues and Subscriptions $524 $331 $1,333 $573 $2,575
Pay Per View Expenses $18,208 $20,113 $24,242 $22,329 $15,732
Video Game Expenses $0 $0 $0 $0 $0
Miscellaneous Marketing Expenses $29,288 $12,144 $6,649 $5,592 $6,250
G & A Salary - Supervisor $0 $0 $23,366 $67,016 $64,061
G & A Salary - CSR $83,084 $84,179 $69,180 $63,316 $57,121
G & A Overtime/Standby $4,868 $8,984 $5,390 $5,032 $4,570
G & A Payroll Taxes $7,072 $8,051 $8,451 $12,962 $12,545
G & A Group Insurance $10,484 $13,489 $15,133 $11,280 $26,291
G & A Other Benefits ($10,872) ($10,872) ($2,489) $3,057 $27,720
Contract Labor $192 $3,648 $224 $0 $0
G & A Allocated Personnel Expense $44,724 $40,231 $15,263 ($19,531) $0
G & A Allocated P/R Benefit $14,760 $10,148 $3,400 ($2,469) $0
Rent - Office $0 $0 $0 $0 $4,208
R & M - Office $7,040 $8,365 $6,080 $4,067 $5,858
Office Supplies $5,148 $6,257 $5,979 $6,935 $5,235
Xerox & Printing $2,296 $3,080 $1,938 $3,027 $3,855
Vehicle - Gas & Oil $144 $208 $128 $718 $524
T & E System Travel $584 $921 $373 $5,040 $801
T & E System Non-Travel $68 $400 $13 $0 $1,099
Dues and Subscriptions $1,256 $384 $635 $687 $508
Conventions - Travel $0 $198 $13 $75 $1,452
Education $24 $635 $2,254 $1,782 $715
Recruiting $0 $27 $0 $95 $0
Insurance $59,892 $113,877 $90,917 $95,757 $80,960
Legal $19,400 $10,983 $8,858 $9,400 $6,400
Audit & Taxes $9,140 $11,406 $15,709 $25,084 $31,758
Association - Dues $3,668 $3,803 $4,691 $5,375 $5,804
Association - Lobbying $812 $837 $886 $920 $0
Political Contribution $0 $0 $0 $100 $29
Donations/Public Relations $1,996 $1,186 $4,291 $4,826 $3,900
Customer Billing $60,276 $62,072 $66,402 $69,564 $66,873
Postage & Messengers $50,368 $52,083 $50,460 $52,996 $49,570
Utilities $4,748 $5,901 $5,960 $7,664 $6,535
Telephone $16,292 $16,787 $16,187 $16,972 $17,628
Tax & Licenses $1,212 $1,838 $392 $263 $1,169
129
SYSTEM LOCATION: BURKE, NC
-------------------------------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
-------------------------------------------------------------------------
FCC User Fees $5,668 $5,904 $5,491 $4,164 $0
Reregulation Costs $14,020 $9,886 $16,240 $17,935 $13,149
CATV Franchise $62,768 $45,484 $69,124 $73,527 $106,468
Copyright Fees $134,904 $120,035 $91,053 $40,746 $144,292
BMI License Fees $0 $3,917 $0 $0 $0
ASCAP License Fees $7,792 $5,009 $0 $0 $0
Bad Debt Expense $34,500 $54,212 $68,861 $72,445 $84,451
Cap. Labor & OH Other $0 $0 $0 $0 $0
G & A Miscellaneous Expense $6,892 $2,501 $2,321 $3,230 $2,921
Primary Satellite Fees $533,904 $533,833 $497,181 $436,931 $457,835
Program Guides $23,440 $21,264 $20,904 $22,404 $23,984
Pay TV Fees $203,716 $273,126 $370,035 $381,017 $354,187
Pay Per View Fees $64,152 $59,250 $54,746 $68,247 $60,329
-------- -------- -------- -------- -------
Total Expenses $2,218,660 $2,260,515 $2,250,519 $2,314,040 $2,399,598
Operating Income $3,100,476 $2,817,272 $2,795,414 $2,765,958 $2,703,547
Operating Margin 58.29% 55.48% 55.40% 54.45% 52.98%
130
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: CALIFORNIA CITY
----------------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96 12/31/95
----------------------------------------------------------------------------------------
REVENUES
Primary First Outlet $30,304 $363,648 $90,303 $361,212 $351,579 $361,745
Primary Commercial $1,082 $12,984 $3,246 $12,984 $12,984 $5,244
Expanded Tier $0 $0 $0 $0 $0 $0
AG Tier $0 $0 $0 $0 $0 $0
AL Tier $10,926 $131,112 $32,871 $131,484 $136,376 $145,695
Radio Services $501 $6,012 $1,509 $6,036 $6,423 $7,683
Pay Cable First Outlet $6,553 $78,636 $19,861 $79,444 $90,571 $103,443
Pay Cable Additional Outlet $273 $3,276 $827 $3,308 $3,889 $4,328
Ala Carte $0 $0 $0 $0 $0 $0
New Product Tier 1 $5,066 $60,792 $15,171 $60,684 $51,265 $40,814
Primary Additional Outlet $0 $0 $0 $0 $0 $0
Remote Control $272 $3,264 $817 $3,268 $3,515 $3,622
Converter Rental $4,155 $49,860 $12,570 $50,280 $54,098 $55,694
Maintenance Contracts $355 $4,260 $1,099 $4,396 $4,679 $4,286
New Customer Basic Installs $0 $0 $0 $0 $2,425 $14,401
Installation Materials Charge $7 $84 $7 $28 $12 $249
Installs - Non New Customers $1,445 $17,340 $3,730 $14,920 $14,443 $10,272
Guides $67 $804 $247 $988 $752 $0
Other Late Charges $575 $6,900 $2,065 $8,260 $8,695 $7,930
Other Miscellaneous $0 $0 $0 $0 $0 $0
FCC User Fees Pass Through $79 $948 $241 $964 $991 $985
Ad Sales Other $0 $0 $0 $0 $0 $0
Other Programmers $6 $72 $2,988 $11,952 $3,432 $0
QVC Monthly Commission $224 $2,688 $650 $2,600 $3,064 $6,129
HSN Monthly Commission $170 $2,040 $486 $1,944 $2,222 $1,933
HSN Carriage Payment $152 $1,824 $457 $1,828 $1,829 $1,829
------- -------- -------- -------- -------- --------
Total Revenues $62,212 $746,544 $189,145 $756,580 $753,244 $776,282
EXPENSES
Technical Allocated Personnel Expense $858 $10,296 $3,883 $15,532 $7,650 $10,773
Technical Allocated P/R Benefit $268 $3,216 $1,189 $4,756 $7,448 $6,757
Technical Allocated Department Expense $335 $4,020 $1,398 $5,592 $14,934 $22,749
Rent - Headend $494 $5,928 $2,928 $11,712 $5,928 $5,800
Rent - Poles and Ducts $1,169 $14,028 $3,401 $13,604 $10,495 $8,000
R & M Plant $0 $0 $0 $0 $1,735 $0
--------------
------------------------------ ADJUSTED
TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING 12/31/96
12/31/94 12/31/93 ANNUALIZED
------------------------------ ---------------
REVENUES
Primary First Outlet $417,802 $349,297 $363,648
Primary Commercial $5,244 $7,988 $12,984
Expanded Tier $0 $0 $0
AG Tier $0 $19,353 $0
AL Tier $80,045 ($27) $131,112
Radio Services $9,082 $3,756 $6,012
Pay Cable First Outlet $91,449 $83,463 $78,636
Pay Cable Additional Outlet $4,464 $4,066 $3,276
Ala Carte $35,580 $65,132 $0
New Product Tier 1 $0 $0 $60,792
Primary Additional Outlet $0 $21,440 $0
Remote Control $3,419 $17,133 $3,264
Converter Rental $57,579 $20,434 $49,860
Maintenance Contracts $1,788 $0 $4,260
New Customer Basic Installs $19,922 $11,333 $0
Installation Materials Charge $0 $0 $84
Installs - Non New Customers $6,687 $7,047 $17,340
Guides $0 $3 $804
Other Late Charges $7,110 $7,900 $6,900
Other Miscellaneous $0 $47 $0
FCC User Fees Pass Through $12 $0 $948
Ad Sales Other $0 $9 $0
Other Programmers $0 $0 $72
QVC Monthly Commission $0 $0 $2,688
HSN Monthly Commission $0 $0 $2,040
HSN Carriage Payment $0 $0 $1,824
-------- -------- --------
Total Revenues $740,183 $618,374 $746,544
EXPENSES
Technical Allocated Personnel Expense $37,783 $35,695 $10,296
Technical Allocated P/R Benefit $9,279 $9,378 $3,216
Technical Allocated Department Expense $12,079 $7,598 $4,020
Rent - Headend $5,800 $2,366 $5,928
Rent - Poles and Ducts $6,775 $5,794 $14,028
R & M Plant $0 $0 $0
131
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: CALIFORNIA CITY
----------------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96 12/31/95
----------------------------------------------------------------------------------------
R & M Other $175 $2,100 $174 $696 $829 $1,644
Material and Reconnect $1,011 $12,132 $2,137 $8,548 $10,030 $6,546
Vehicle - Gas & Oil $1 $12 $21 $84 $41 $68
Vehicle - Service $0 $0 $2 $8 $6 $159
T & E System Travel $0 $0 $0 $0 $39 $4
T & E System Non-Travel $58 $696 $258 $1,032 $321 $0
System Power Costs $1,256 $15,072 $3,590 $14,360 $14,559 $15,088
Property Taxes $1,113 $13,356 $3,340 $13,360 $13,980 $13,274
Small Tool and Safety $0 $0 $0 $0 $0 $359
Capital Labor & OH Construction ($1,126) ($13,512) ($7,098) ($28,392) ($15,030) ($15,418)
Capital Labor & OH Customer $0 $0 $0 $0 $0 ($3,091)
Production & LO Alloc. Personnel Benefit $0 $0 $0 $0 $76 $0
Production & LO Alloc. P/R Benefit $0 $0 $0 $0 $17 $0
Ad Sales $0 $0 $0 $0 $0 $0
Marketing Employee Commissions $0 $0 $0 $0 $0 $0
Marketing Expenses $838 $10,056 $1,528 $6,112 $5,131 $10,013
Dues and Subscriptions $8 $96 $26 $104 $91 $201
Pay Per View Expenses $11 $132 $35 $140 $136 $38
Miscellaneous Marketing Expenses ($210) ($2,520) $60 $240 $833 $1,425
G & A Allocated Personnel Expense $478 $5,736 $1,432 $5,728 $4,961 $9,255
G & A Allocated P/R Expense $532 $6,384 $802 $3,208 $2,355 $2,086
G & A Allocated Department Expense $1,221 $14,652 $3,844 $15,376 $19,852 $25,265
R & M - Office $0 $0 $2 $8 $319 $444
Office Supplies $0 $0 $0 $0 $99 $93
Xerox & Printing $0 $0 $0 $0 $0 $375
T & E System Travel $0 $0 $0 $0 $0 $70
T & E System Non-Travel $0 $0 $28 $112 $118 $0
Dues and Subscriptions $0 $0 $66 $264 $429 $189
Conventions - Travel $0 $0 $0 $0 $0 $0
Insurance $801 $9,612 $2,528 $10,112 $9,976 $9,381
Legal $131 $1,572 $393 $1,572 $1,572 $1,301
Audit & Taxes $762 $9,144 $2,285 $9,140 $14,539 $2,764
Association - Dues $115 $1,380 $213 $852 $804 $1,174
Association - Lobbying $11 $132 $33 $132 $158 $228
Political Contribution $63 $756 $62 $248 $125 $425
Donations/Public Relations ($24) ($288) $23 $92 $276 $274
Customer Billing $1,716 $20,592 $5,220 $20,880 $19,645 $21,873
Postage & Messengers $766 $9,192 $2,163 $8,652 $8,451 $9,423
Telephone $0 $0 $1 $4 $4 $5
---------------
------------------------------ ADJUSTED
TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING 12/31/96
12/31/94 12/31/93 ANNUALIZED
------------------------------ ---------------
R & M Other $845 $3,313 $2,100
Material and Reconnect $2,511 $0 $12,132
Vehicle - Gas & Oil $68 $96 $12
Vehicle - Service $151 $73 $0
T & E System Travel $0 $0 $0
T & E System Non-Travel $0 $0 $696
System Power Costs $11,654 $10,888 $15,072
Property Taxes $9,659 $6,980 $13,356
Small Tool and Safety $0 $102 $0
Capital Labor & OH Construction ($30,323) ($29,683) $0
Capital Labor & OH Customer ($13,116) ($16,816) $0
Production & LO Alloc. Personnel Benefit $0 $0 $0
Production & LO Alloc. P/R Benefit $0 $0 $0
Ad Sales $0 $0 $0
Marketing Employee Commissions $328 $0 $0
Marketing Expenses $12,919 ($772) $10,056
Dues and Subscriptions $144 $365 $96
Pay Per View Expenses $0 $0 $132
Miscellaneous Marketing Expenses $2,453 $5,716 $1,000
G & A Allocated Personnel Expense $22,790 $20,988 $5,736
G & A Allocated P/R Expense $7,705 $2,998 $6,384
G & A Allocated Department Expense $21,013 $23,533 $14,652
R & M - Office $154 $99 $0
Office Supplies $111 $378 $0
Xerox & Printing $0 $412 $0
T & E System Travel $10 $0 $0
T & E System Non-Travel $0 $40 $0
Dues and Subscriptions $123 $201 $0
Conventions - Travel $0 $0 $0
Insurance $8,071 $6,446 $9,612
Legal $1,573 $1,260 $1,572
Audit & Taxes $4,330 $1,079 $9,144
Association - Dues $1,234 $906 $1,380
Association - Lobbying $153 $0 $132
Political Contribution $278 $0 $756
Donations/Public Relations $227 $2,996 $0
Customer Billing $20,697 $19,485 $20,592
Postage & Messengers $8,187 $6,836 $9,192
Telephone $357 $749 $0
132
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: CALIFORNIA CITY
----------------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96 12/31/95
----------------------------------------------------------------------------------------
Tax & Licenses $0 $0 $0 $0 $340 $20
FCC User Fees $85 $1,020 $159 $636 $1,112 $1,007
Reregulation Costs $0 $0 $1,032 $4,128 $1,674 $520
CATV Franchise $30 $360 $208 $832 $1,596 $15,249
Copyright Fees $174 $2,088 $515 $2,060 $2,477 $1,630
ASCAP License Fees $103 $1,236 $309 $1,236 $795 $0
Bad Debt Expense $573 $6,876 ($2,648) ($10,592) $2,526 $10,706
Cap. Labor & OH Other $0 $0 ($399) ($1,596) ($1,197) ($12,534)
G & A Miscellaneous Expense $48 $576 $67 $268 $177 $171
Primary Satellite Fees $7,979 $95,748 $24,127 $96,508 $97,000 $110,042
Program Guides $254 $3,048 $580 $2,320 $2,199 $2,769
Pay TV Fees $2,914 $34,968 $7,489 $29,956 $46,657 $64,295
------- -------- -------- -------- -------- --------
Total Expenses $24,991 $299,892 $67,406 $269,624 $318,288 $362,889
Operating Income $37,221 $446,652 $121,739 $486,956 $434,956 $413,393
Operating Margin 59.83% 59.83% 64.36% 64.36% 57.74% 53.25%
--------------
------------------------------ ADJUSTED
TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING 12/31/96
12/31/94 12/31/93 ANNUALIZED
------------------------------ ---------------
Tax & Licenses $20 $111 $0
FCC User Fees $739 $0 $1,020
Reregulation Costs $2,932 $5,782 $0
CATV Franchise $14,627 $12,422 $360
Copyright Fees $3,365 $2,502 $2,088
ASCAP License Fees $0 $0 $1,236
Bad Debt Expense $6,658 $21,430 $6,876
Cap. Labor & OH Other ($12,204) ($33,161) $0
G & A Miscellaneous Expense $451 $130 $576
Primary Satellite Fees $100,086 $80,667 $95,748
Program Guides $2,618 $2,413 $3,048
Pay TV Fees $61,038 $52,887 $34,968
-------- -------- --------
Total Expenses $346,352 $274,682 $317,212
Operating Income $393,831 $343,692 $429,332
Operating Margin 53.21% 55.58% 57.51%
133
SYSTEM LOCATION: CALIFORNIA CITY
--------------------------------------------- -----------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
---------------------------------------------------------------------------
REVENUES
Primary First Outlet $361,212 $351,579 $361,745 $417,802 $349,297
Primary Commercial $12,984 $12,984 $5,244 $5,244 $7,988
Expanded Tier $0 $0 $0 $0 $0
AG Tier $0 $0 $0 $0 $19,353
AL Tier $131,484 $136,376 $145,695 $80,045 ($27)
Radio Services $6,036 $6,423 $7,683 $9,082 $3,756
Pay Cable First Outlet $79,444 $90,571 $103,443 $91,449 $83,463
Pay Cable Additional Outlet $3,308 $3,889 $4,328 $4,464 $4,066
Ala Carte $0 $0 $0 $35,580 $65,132
New Product Tier 1 $60,684 $51,265 $40,814 $0 $0
Primary Additional Outlet $0 $0 $0 $0 $21,440
Remote Control $3,268 $3,515 $3,622 $3,419 $17,133
Converter Rental $50,280 $54,098 $55,694 $57,579 $20,434
Maintenance Contracts $4,396 $4,679 $4,286 $1,788 $0
New Customer Basic Installs $0 $2,425 $14,401 $19,922 $11,333
Installation Materials Charge $28 $12 $249 $0 $0
Installs - Non New Customers $14,920 $14,443 $10,272 $6,687 $7,047
Guides $988 $752 $0 $0 $3
Other Late Charges $8,260 $8,695 $7,930 $7,110 $7,900
Other Miscellaneous $0 $0 $0 $0 $47
FCC User Fees Pass Through $964 $991 $985 $12 $0
Ad Sales Other $0 $0 $0 $0 $9
Other Programmers $11,952 $3,432 $0 $0 $0
QVC Monthly Commission $2,600 $3,064 $6,129 $0 $0
HSN Monthly Commission $1,944 $2,222 $1,933 $0 $0
HSN Carriage Payment $1,828 $1,829 $1,829 $0 $0
-------- -------- -------- -------- --------
Total Revenues $756,580 $753,244 $776,282 $740,183 $618,374
EXPENSES
Technical Allocated Personnel Expense $15,532 $7,650 $10,773 $37,783 $35,695
Technical Allocated P/R Benefit $4,756 $7,448 $6,757 $9,279 $9,378
Technical Allocated Department Expense $5,592 $14,934 $22,749 $12,079 $7,598
Rent - Headend $11,712 $5,928 $5,800 $5,800 $2,366
Rent - Poles and Ducts $13,604 $10,495 $8,000 $6,775 $5,794
R & M Plant $0 $1,735 $0 $0 $0
134
SYSTEM LOCATION: CALIFORNIA CITY
--------------------------------------------- -----------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
---------------------------------------------------------------------------
R & M Other $696 $829 $1,644 $845 $3,313
Material and Reconnect $8,548 $10,030 $6,546 $2,511 $0
Vehicle - Gas & Oil $84 $41 $68 $68 $96
Vehicle - Service $8 $6 $159 $151 $73
T & E System Travel $0 $39 $4 $0 $0
T & E System Non-Travel $1,032 $321 $0 $0 $0
System Power Costs $14,360 $14,559 $15,088 $11,654 $10,888
Property Taxes $13,360 $13,980 $13,274 $9,659 $6,980
Small Tool and Safety $0 $0 $359 $0 $102
Capital Labor & OH Construction $0 $0 $0 $0 $0
Capital Labor & OH Customer $0 $0 $0 $0 $0
Production & LO Alloc. Personnel Benefit $0 $76 $0 $0 $0
Production & LO Alloc. P/R Benefit $0 $17 $0 $0 $0
Ad Sales $0 $0 $0 $0 $0
Marketing Employee Commissions $0 $0 $0 $328 $0
Marketing Expenses $6,112 $5,131 $10,013 $12,919 $0
Dues and Subscriptions $104 $91 $201 $144 $365
Pay Per View Expenses $140 $136 $38 $0 $0
Miscellaneous Marketing Expenses $240 $833 $1,425 $2,453 $5,716
G & A Allocated Personnel Expense $5,728 $4,961 $9,255 $22,790 $20,988
G & A Allocated P/R Expense $3,208 $2,355 $2,086 $7,705 $2,998
G & A Allocated Department Expense $15,376 $19,852 $25,265 $21,013 $23,533
R & M - Office $8 $319 $444 $154 $99
Office Supplies $0 $99 $93 $111 $378
Xerox & Printing $0 $0 $375 $0 $412
T & E System Travel $0 $0 $70 $10 $0
T & E System Non-Travel $112 $118 $0 $0 $40
Dues and Subscriptions $264 $429 $189 $123 $201
Conventions - Travel $0 $0 $0 $0 $0
Insurance $10,112 $9,976 $9,381 $8,071 $6,446
Legal $1,572 $1,572 $1,301 $1,573 $1,260
Audit & Taxes $9,140 $14,539 $2,764 $4,330 $1,079
Association - Dues $852 $804 $1,174 $1,234 $906
Association - Lobbying $132 $158 $228 $153 $0
Political Contribution $248 $125 $425 $278 $0
Donations/Public Relations $92 $276 $274 $227 $2,996
Customer Billing $20,880 $19,645 $21,873 $20,697 $19,485
Postage & Messengers $8,652 $8,451 $9,423 $8,187 $6,836
Telephone $4 $4 $5 $357 $749
135
SYSTEM LOCATION: CALIFORNIA CITY
--------------------------------------------- -----------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
---------------------------------------------------------------------------
Tax & Licenses $0 $340 $20 $20 $111
FCC User Fees $636 $1,112 $1,007 $739 $0
Reregulation Costs $4,128 $1,674 $520 $2,932 $5,782
CATV Franchise $832 $1,596 $15,249 $14,627 $12,422
Copyright Fees $2,060 $2,477 $1,630 $3,365 $2,502
ASCAP License Fees $1,236 $795 $0 $0 $0
Bad Debt Expense $3,000 $2,526 $10,706 $6,658 $21,430
Cap. Labor & OH Other $0 $0 $0 $0 $0
G & A Miscellaneous Expense $268 $177 $171 $451 $130
Primary Satellite Fees $96,508 $97,000 $110,042 $100,086 $80,667
Program Guides $2,320 $2,199 $2,769 $2,618 $2,413
Pay TV Fees $29,956 $46,657 $64,295 $61,038 $52,887
-------- -------- -------- -------- --------
Total Expenses $313,204 $334,515 $393,932 $401,995 $355,114
Operating Income $443,376 $418,729 $382,350 $338,188 $263,260
Operating Margin 58.60% 55.59% 49.25% 45.69% 42.57%
136
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: CENTREVILLE, MD
----------------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96 12/31/95
----------------------------------------------------------------------------------------
REVENUES
Primary First Outlet $246,374 $2,956,488 $737,776 $2,951,104 $2,754,855 $2,478,829
Primary Commercial $7,571 $90,852 $22,580 $90,320 $79,007 $53,512
Expanded Tier $0 $0 $0 $0 $0 $0
AG Tier $0 $0 $0 $0 $0 $0
AJ Tier $0 $0 $0 $0 $0 $0
AL Tier $41,814 $501,768 $125,325 $501,300 $424,950 $340,506
Radio Services $2,088 $25,056 $6,408 $25,632 $28,104 $33,305
Pay Cable First Outlet $62,372 $748,464 $190,678 $762,712 $845,121 $931,201
Ala Carte $0 $0 $0 $0 $0 $0
New Product Tier 1 $63,453 $761,436 $192,101 $768,404 $580,639 $361,832
Commercial Pay $1,192 $14,304 $3,578 $14,312 $14,665 $13,779
Video $3,085 $37,020 $9,674 $38,696 $41,088 $5,414
Primary Additional Outlet $0 $0 $0 $0 $0 $0
Remote Control $462 $5,544 $1,391 $5,564 $5,704 $6,215
Converter Rental $3,666 $43,992 $11,197 $44,788 $34,794 $25,258
Maintenance Contracts $3,504 $42,048 $10,833 $43,332 $39,325 $31,186
New Customer Pay Installs $0 $0 $300 $1,200 $300 $0
New Customer Basic Installs $470 $5,640 $1,930 $7,720 $7,307 $15,003
Installation Materials Charge $0 $0 $0 $0 $8 $1
Installs - Non New Customers $2,020 $24,240 $9,258 $37,032 $47,807 $28,795
Other Late Charges $7,058 $84,696 $20,331 $81,324 $74,032 $64,609
Other Rent $1,922 $23,064 $5,758 $23,032 $23,455 $14,778
Other Franchise Pass Thru $9,090 $109,080 $27,707 $110,828 $104,885 $101,381
Other Miscellaneous $0 $0 $0 $0 $0 $25
FCC User Fees Pass Through $509 $6,108 $1,528 $6,112 $6,036 $5,454
Video Game Activation $0 $0 $0 $0 $0 $0
Other Programmers $42 $504 $18,419 $73,676 $24,709 $0
QVC Monthly Commission $1,133 $13,596 $3,642 $14,568 $13,209 $9,020
QVC Carriage Payment $0 $0 $5,478 $21,912 $31,486 $0
HSN Monthly Commission $1,601 $19,212 $5,407 $21,628 $22,193 $18,635
HSN Carriage Payment $173 $2,076 $519 $2,076 $2,076 $2,076
Ad Insertion Sales $13,313 $159,756 $35,084 $140,336 $122,640 $113,707
Ad Sales Other $0 $0 $0 $0 $0 $0
Interconnect Services $0 $0 $0 $0 $0 $0
Production & Local Origination $0 $0 $200 $800 $400 $675
Guides $1,851 $22,212 $5,254 $21,016 $13,842 $8,799
------- -------- ------- -------- -------- -------
Total Revenues $474,763 $5,697,156 $1,452,356 $5,809,424 $5,342,637 $4,663,995
---------------
----------------------------- ADJUSTED
TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING 12/31/96
12/31/94 12/31/93 ANNUALIZED
----------------------------- ---------------
REVENUES
Primary First Outlet $2,377,380 $1,913,174 $2,956,488
Primary Commercial $38,888 $36,739 $90,852
Expanded Tier $0 $0 $0
AG Tier $0 $306,438 $0
AJ Tier $0 $177,195 $0
AL Tier $129,308 $0 $501,768
Radio Services $39,699 $12,573 $25,056
Pay Cable First Outlet $805,144 $805,207 $748,464
Ala Carte $290,512 $70,058 $0
New Product Tier 1 $0 $0 $761,436
Commercial Pay $13,779 $13,008 $14,304
Video $0 $0 $37,020
Primary Additional Outlet ($52) $125,547 $0
Remote Control $5,173 $16,434 $5,544
Converter Rental $25,948 $7,688 $43,992
Maintenance Contracts $18,646 $0 $42,048
New Customer Pay Installs $0 $240 $0
New Customer Basic Installs $20,729 $41,595 $5,640
Installation Materials Charge $0
Installs - Non New Customers $16,487 $16,692 $24,240
Other Late Charges $72,245 $67,845 $84,696
Other Rent $12,784 $2,780 $23,064
Other Franchise Pass Thru $95,659 $93,775 $109,080
Other Miscellaneous $0 $0 $0
FCC User Fees Pass Through $155 $0 $6,108
Video Game Activation $0 $0 $0
Other Programmers $0 $0 $504
QVC Monthly Commission $8,406 $9,676 $13,596
QVC Carriage Payment ($10,190) $10,190 $0
HSN Monthly Commission $0 $0 $19,212
HSN Carriage Payment $867 $0 $2,076
Ad Insertion Sales $83,674 $31,494 $159,756
Ad Sales Other $0 $49 $0
Interconnect Services $3,150 $0 $0
Production & Local Origination $0 $0 $0
Guides $8,841 $8,623 $22,212
---------- ---------- ----------
Total Revenues $4,057,232 $3,767,020 $5,697,156
137
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: CENTREVILLE, MD
----------------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96 12/31/95
----------------------------------------------------------------------------------------
EXPENSES
Technical Salary - Supervisor $2,924 $35,088 $8,773 $35,092 $35,091 $33,746
Technical Salary - Technician $8,157 $97,884 $24,416 $97,664 $97,848 $94,041
Technical Salary - Dispatcher $0 $0 $1,259 $5,036 $9,221 $11,147
Technical Salary - Installers $1,962 $23,544 $4,302 $17,208 $20,736 $21,926
Overtime/Standby $5,097 $61,164 $12,764 $51,056 $50,078 $53,793
Payroll Taxes $1,339 $16,068 $4,311 $17,244 $19,034 $18,612
Group Insurance $3,581 $42,972 $6,089 $24,356 $20,855 $14,432
Other Benefits ($2,541) ($30,492) ($699) ($2,796) $7,590 $7,536
Rent - Headend $1,475 $17,700 $4,791 $19,164 $20,665 $19,894
Rent - Poles and Ducts $9,733 $116,796 $29,199 $116,796 $116,796 $107,707
R & M Plant $1,202 $14,424 $3,918 $15,672 $9,086 $4,383
R & M Other $1,391 $16,692 $2,582 $10,328 $13,569 $12,310
Material and Reconnect $3,951 $47,412 $10,000 $40,000 $35,973 $28,849
Vehicle - Gas & Oil $2,165 $25,980 $6,357 $25,428 $27,790 $25,169
Vehicle - Service $2,612 $31,344 $3,022 $12,088 $14,473 $12,420
T & E System Travel $0 $0 $0 $0 $38 $518
T & E System Non-Travel $0 $0 $0 $0 $0 $107
Dues & Subscriptions $331 $3,972 $668 $2,672 $3,532 $4,997
Education $0 $0 $0 $0 $109 $411
System Power Costs $7,760 $93,120 $27,322 $109,288 $96,548 $93,635
Recruiting $0 $0 $0 $0 $0 $399
Loss on Converters $100 $1,200 $300 $1,200 $1,200 $1,200
Property Taxes ($19,763) ($237,156) ($19,289) ($77,156) ($17,116) $504
Uniforms $180 $2,160 $825 $3,300 $3,475 $3,354
Small Tool and Safety $1,273 $15,276 $1,511 $6,044 $3,936 $4,635
Capital Labor & OH Construction ($15,198) ($182,376) ($38,708) ($154,832) ($143,194) ($103,364)
Capital Labor & OH Customer ($15,006) ($180,072) ($24,400) ($97,600) ($52,954) ($24,007)
Ad Sales Payroll Taxes $117 $1,404 $475 $1,900 $1,847 $1,584
Ad Sales Group Insurance $573 $6,876 $1,037 $4,148 $3,265 $3,956
Ad Sales Alloc. Personnel Benefit $1,484 $17,808 $4,137 $16,548 $16,021 $13,189
Ad Sales Alloc. P/R Benefit $513 $6,156 $1,653 $6,612 $6,364 $4,464
Employee Commissions $1,605 $19,260 $6,482 $25,928 $22,735 $18,879
Other Ad Sale Expenses $2,123 $25,476 $10,729 $42,916 $29,349 $22,107
Marketing Salary & Benefits ($1,211) ($14,532) ($87) ($348) $6,680 $6,801
Marketing Employee Commissions $1,215 $14,580 $2,006 $8,024 $18,612 $82,475
Marketing Expenses $5,322 $63,864 $25,790 $103,160 $56,104 $41,331
Dues and Subscriptions $46 $552 $149 $596 $508 $1,060
Pay Per View Expenses $0 $0 $9 $36 $13 $201
Video Game Expenses $0 $0 $0 $0 $5,914 $7,475
---------------
----------------------------- ADJUSTED
TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING 12/31/96
12/31/94 12/31/93 ANNUALIZED
----------------------------- ---------------
EXPENSES
Technical Salary - Supervisor $32,448 $31,200 $35,088
Technical Salary - Technician $77,899 $78,628 $97,884
Technical Salary - Dispatcher $10,645 $12,237 $0
Technical Salary - Installers $30,390 $25,459 $23,544
Overtime/Standby $64,383 $36,401 $61,164
Payroll Taxes $18,606 $16,313 $16,068
Group Insurance $12,160 $25,863 $42,972
Other Benefits $11,842 $12,660 $7,500
Rent - Headend $20,311 $20,487 $17,700
Rent - Poles and Ducts $76,445 $64,016 $116,796
R & M Plant $1,964 $1,247 $14,424
R & M Other $5,191 $3,057 $16,692
Material and Reconnect $9,122 $2,400 $47,412
Vehicle - Gas & Oil $21,566 $21,639 $25,980
Vehicle - Service $11,358 $6,024 $31,344
T & E System Travel $210 $566 $0
T & E System Non-Travel $347 $284 $0
Dues & Subscriptions $3,611 $2,563 $3,972
Education $225 $96 $0
System Power Costs $81,087 $74,920 $93,120
Recruiting $143 $274 $0
Loss on Converters $1,200 $1,200 $1,200
Property Taxes ($84,426) $49,901 $0
Uniforms $3,177 $2,933 $2,160
Small Tool and Safety $3,397 $2,485 $15,276
Capital Labor & OH Construction ($100,780) ($58,994) $0
Capital Labor & OH Customer ($8,868) ($18,371) $0
Ad Sales Payroll Taxes $1,603 $1,486 $1,404
Ad Sales Group Insurance $2,681 $2,675 $6,876
Ad Sales Alloc. Personnel Benefit $10,740 $5,958 $17,808
Ad Sales Alloc. P/R Benefit $3,855 $2,060 $6,156
Employee Commissions $17,641 $17,382 $19,260
Other Ad Sale Expenses $28,710 $20,338 $25,476
Marketing Salary & Benefits $554 $20 $7,000
Marketing Employee Commissions $7,814 $2,200 $14,580
Marketing Expenses $162,690 $140,606 $63,864
Dues and Subscriptions $545 $2,029 $552
Pay Per View Expenses $236 $0 $0
Video Game Expenses $0 $0 $0
138
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: CENTREVILLE, MD
----------------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96 12/31/95
----------------------------------------------------------------------------------------
Miscellaneous Marketing Expenses $2,250 $27,000 $8,130 $32,520 $13,956 $9,544
G & A Salary - Supervisor $3,562 $42,744 $10,686 $42,744 $53,014 $58,858
G & A Salary - CSR $3,348 $40,176 $9,880 $39,520 $48,667 $51,810
G & A Overtime/Standby $264 $3,168 $1,064 $4,256 $2,173 $3,877
G & A Payroll Taxes $563 $6,756 $1,985 $7,940 $9,251 $10,460
G & A Group Insurance $1,202 $14,424 $2,244 $8,976 $8,517 $9,155
G & A Other Benefits ($2,722) ($32,664) ($3,376) ($13,504) $429 $10,326
G & A Allocated Personnel Expense $0 $0 $0 $0 $1,834 $0
G & A Allocated P/R Expense $0 $0 $0 $0 $371 $0
Rent - Office $2,084 $25,008 $6,241 $24,964 $24,446 $18,607
R & M - Office $385 $4,620 $2,588 $10,352 $8,770 $8,339
Office Supplies $508 $6,096 $1,515 $6,060 $9,714 $9,103
Xerox & Printing $22 $264 $21 $84 $2,113 $3,385
Vehicle - Gas & Oil $50 $600 $119 $476 $1,046 $1,085
T & E System Travel $268 $3,216 $550 $2,200 $2,032 $873
T & E System Non-Travel $0 $0 $12 $48 $513 $618
Dues and Subscriptions $118 $1,416 $266 $1,064 $1,909 $717
Conventions - Travel $0 $0 $0 $0 $55 $13
Education $7 $84 $17 $68 $3,507 $2,693
Recruiting $0 $0 $0 $0 $941 $233
Insurance $6,811 $81,732 $21,726 $86,904 $155,888 $82,303
Legal $4,311 $51,732 $9,639 $38,556 $16,389 $7,599
Audit & Taxes $762 $9,144 $2,285 $9,140 $11,744 $14,311
Association - Dues $337 $4,044 $1,009 $4,036 $4,156 $4,467
Association - Lobbying $75 $900 $224 $896 $878 $794
Political Contribution $0 $0 $0 $0 $0 $0
Donations/Public Relations ($63) ($756) $301 $1,204 $1,967 $1,810
Customer Billing $4,093 $49,116 $13,411 $53,644 $63,687 $68,758
Postage & Messengers $5,543 $66,516 $15,356 $61,424 $59,685 $54,234
Utilities $897 $10,764 $2,712 $10,848 $9,580 $7,995
Telephone $2,132 $25,584 $11,736 $46,944 $47,138 $41,672
Tax & Licenses $73 $876 $221 $884 $1,219 $548
FCC User Fees $577 $6,924 $1,732 $6,928 $6,686 $5,709
Reregulation Costs $1 $12 $5,438 $21,752 $14,035 $3,876
CATV Franchise $15,157 $181,884 $33,549 $134,196 $112,159 $118,639
Copyright Fees $4,885 $58,620 $23,200 $92,800 $107,032 $85,156
BMI License Fees $0 $0 ($383) ($1,532) $3,254 $0
ASCAP License Fees $656 $7,872 $1,968 $7,872 $5,062 $0
Bad Debt Expense $6,877 $82,524 $8,569 $34,276 $33,754 $56,738
Cap. Labor & OH Other $0 $0 $0 $0 ($10,621) ($19,977)
G & A Miscellaneous Expense $1,456 $17,472 $2,111 $8,444 $3,792 $4,727
---------------
----------------------------- ADJUSTED
TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING 12/31/96
12/31/94 12/31/93 ANNUALIZED
----------------------------- ---------------
Miscellaneous Marketing Expenses $5,639 $4,203 $27,000
G & A Salary - Supervisor $59,683 $54,074 $42,744
G & A Salary - CSR $45,096 $41,565 $40,176
G & A Overtime/Standby $2,439 $898 $3,168
G & A Payroll Taxes $10,488 $8,513 $6,756
G & A Group Insurance $6,643 $8,242 $14,424
G & A Other Benefits ($38,690) $8,592 $0
G & A Allocated Personnel Expense $0 $0 $0
G & A Allocated P/R Expense $0 $0 $0
Rent - Office $16,800 $14,600 $25,008
R & M - Office $6,894 $5,955 $4,620
Office Supplies $6,420 $5,289 $6,096
Xerox & Printing $5,119 $6,327 $264
Vehicle - Gas & Oil $1,882 $839 $600
T & E System Travel $1,576 $1,841 $3,216
T & E System Non-Travel $550 $490 $0
Dues and Subscriptions $766 $686 $1,416
Conventions - Travel $600 $2,115 $0
Education $785 $905 $84
Recruiting $64 $0 $0
Insurance $56,394 $67,186 $81,732
Legal $9,000 $21,250 $51,732
Audit & Taxes $22,254 $24,001 $9,144
Association - Dues $4,867 $4,347 $4,044
Association - Lobbying $720 $0 $900
Political Contribution $50 $0 $0
Donations/Public Relations $2,672 $2,462 $0
Customer Billing $60,389 $55,869 $49,116
Postage & Messengers $51,889 $46,479 $66,516
Utilities $7,294 $7,245 $10,764
Telephone $45,588 $39,583 $25,584
Tax & Licenses $655 $66 $876
FCC User Fees $3,734 $0 $6,924
Reregulation Costs $16,274 $11,202 $12
CATV Franchise $102,244 $129,731 $181,884
Copyright Fees $88,307 $79,921 $58,620
BMI License Fees $0 $0 $0
ASCAP License Fees $0 $0 $7,872
Bad Debt Expense $76,907 $92,197 $82,524
Cap. Labor & OH Other ($13,367) ($18,934) $0
G & A Miscellaneous Expense $4,914 $3,834 $17,472
139
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: CENTREVILLE, MD
----------------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96 12/31/95
----------------------------------------------------------------------------------------
Primary Satellite Fees $68,195 $818,340 $205,446 $821,784 $775,456 $661,699
Program Guides $1,115 $13,380 $2,383 $9,532 $8,628 $9,484
Pay TV Fees $32,463 $389,556 $93,428 $373,712 $420,459 $524,646
Video Game Fees $1,243 $14,916 $3,854 $15,416 $16,199 $1,590
-------- ---------- -------- ---------- ---------- ----------
Total Expenses $184,017 $2,208,204 $623,550 $2,494,200 $2,623,275 $2,588,350
Operating Income $290,746 $3,488,952 $828,806 $3,315,224 $2,719,362 $2,075,645
Operating Margin 61.24% 61.24% 57.07% 57.07% 50.90% 44.50%
---------------
----------------------------- ADJUSTED
TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING 12/31/96
12/31/94 12/31/93 ANNUALIZED
----------------------------- ---------------
Primary Satellite Fees $478,562 $434,114 $818,340
Program Guides $10,392 $11,463 $13,380
Pay TV Fees $444,068 $455,873 $389,556
Video Game Fees $0 $0 $14,916
---------- ---------- ----------
Total Expenses $2,147,283 $2,243,265 $2,900,752
Operating Income $1,909,949 $1,523,755 $2,796,404
Operating Margin 47.08% 40.45% 49.08%
140
SYSTEM LOCATION: CENTREVILLE, MD
--------------------------------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
--------------------------------------------------------------------------
REVENUES
Primary First Outlet $2,951,104 $2,754,855 $2,478,829 $2,377,380 $1,913,174
Primary Commercial $90,320 $79,007 $53,512 $38,888 $36,739
Expanded Tier $0 $0 $0 $0 $0
AG Tier $0 $0 $0 $0 $306,438
AJ Tier $0 $0 $0 $0 $177,195
AL Tier $501,300 $424,950 $340,506 $129,308 $0
Radio Services $25,632 $28,104 $33,305 $39,699 $12,573
Pay Cable First Outlet $762,712 $845,121 $931,201 $805,144 $805,207
Ala Carte $0 $0 $0 $290,512 $70,058
New Product Tier 1 $768,404 $580,639 $361,832 $0 $0
Commercial Pay $14,312 $14,665 $13,779 $13,779 $13,008
Video $38,696 $41,088 $5,414 $0 $0
Primary Additional Outlet $0 $0 $0 ($52) $125,547
Remote Control $5,564 $5,704 $6,215 $5,173 $16,434
Converter Rental $44,788 $34,794 $25,258 $25,948 $7,688
Maintenance Contracts $43,332 $39,325 $31,186 $18,646 $0
New Customer Pay Installs $1,200 $300 $0 $0 $240
New Customer Basic Installs $7,720 $7,307 $15,003 $20,729 $41,595
Installation Materials Charge $0 $8 $1 $0 $0
Installs - Non New Customers $37,032 $47,807 $28,795 $16,487 $16,692
Other Late Charges $81,324 $74,032 $64,609 $72,245 $67,845
Other Rent $23,032 $23,455 $14,778 $12,784 $2,780
Other Franchise Pass Thru $110,828 $104,885 $101,381 $95,659 $93,775
Other Miscellaneous $0 $0 $25 $0 $0
FCC User Fees Pass Through $6,112 $6,036 $5,454 $155 $0
Video Game Activation $0 $0 $0 $0 $0
Other Programmers $73,676 $24,709 $0 $0 $0
QVC Monthly Commission $14,568 $13,209 $9,020 $8,406 $9,676
QVC Carriage Payment $21,912 $31,486 $0 $0 $0
HSN Monthly Commission $21,628 $22,193 $18,635 $0 $0
HSN Carriage Payment $2,076 $2,076 $2,076 $867 $0
Ad Insertion Sales $140,336 $122,640 $113,707 $83,674 $31,494
Ad Sales Other $0 $0 $0 $0 $49
Interconnect Services $0 $0 $0 $3,150 $0
Production & Local Origination $800 $400 $675 $0 $0
Guides $21,016 $13,842 $8,799 $8,841 $8,623
-------- -------- ------- ------- ------
Total Revenues $5,809,424 $5,342,637 $4,663,995 $4,067,422 $3,756,830
141
SYSTEM LOCATION: CENTREVILLE, MD
--------------------------------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
--------------------------------------------------------------------------
EXPENSES
Technical Salary - Supervisor $35,092 $35,091 $33,746 $32,448 $31,200
Technical Salary - Technician $97,664 $97,848 $94,041 $77,899 $78,628
Technical Salary - Dispatcher $5,036 $9,221 $11,147 $10,645 $12,237
Technical Salary - Installers $17,208 $20,736 $21,926 $30,390 $25,459
Overtime/Standby $51,056 $50,078 $53,793 $64,383 $36,401
Payroll Taxes $17,244 $19,034 $18,612 $18,606 $16,313
Group Insurance $24,356 $20,855 $14,432 $12,160 $25,863
Other Benefits $7,500 $7,590 $7,536 $11,842 $12,660
Rent - Headend $19,164 $20,665 $19,894 $20,311 $20,487
Rent - Poles and Ducts $116,796 $116,796 $107,707 $76,445 $64,016
R & M Plant $15,672 $9,086 $4,383 $1,964 $1,247
R & M Other $10,328 $13,569 $12,310 $5,191 $3,057
Material and Reconnect $40,000 $35,973 $28,849 $9,122 $2,400
Vehicle - Gas & Oil $25,428 $27,790 $25,169 $21,566 $21,639
Vehicle - Service $12,088 $14,473 $12,420 $11,358 $6,024
T & E System Travel $0 $38 $518 $210 $566
T & E System Non-Travel $0 $0 $107 $347 $284
Dues & Subscriptions $2,672 $3,532 $4,997 $3,611 $2,563
Education $0 $109 $411 $225 $96
System Power Costs $109,288 $96,548 $93,635 $81,087 $74,920
Recruiting $0 $0 $399 $143 $274
Loss on Converters $1,200 $1,200 $1,200 $1,200 $1,200
Property Taxes $0 $0 $504 $0 $49,901
Uniforms $3,300 $3,475 $3,354 $3,177 $2,933
Small Tool and Safety $6,044 $3,936 $4,635 $3,397 $2,485
Capital Labor & OH Construction $0 $0 $0 $0 $0
Capital Labor & OH Customer $0 $0 $0 $0 $0
Ad Sales Payroll Taxes $1,900 $1,847 $1,584 $1,603 $1,486
Ad Sales Group Insurance $4,148 $3,265 $3,956 $2,681 $2,675
Ad Sales Alloc. Personnel Benefit $16,548 $16,021 $13,189 $10,740 $5,958
Ad Sales Alloc. P/R Benefit $6,612 $6,364 $4,464 $3,855 $2,060
Employee Commissions $25,928 $22,735 $18,879 $17,641 $17,382
Other Ad Sale Expenses $42,916 $29,349 $22,107 $28,710 $20,338
Marketing Salary & Benefits $7,000 $6,680 $6,801 $554 $20
Marketing Employee Commissions $8,024 $18,612 $82,475 $7,814 $2,200
Marketing Expenses $103,160 $56,104 $41,331 $162,690 $140,606
Dues and Subscriptions $596 $508 $1,060 $545 $2,029
Pay Per View Expenses $36 $13 $201 $236 $0
Video Game Expenses $0 $5,914 $7,475 $0 $0
142
SYSTEM LOCATION: CENTREVILLE, MD
--------------------------------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
--------------------------------------------------------------------------
Miscellaneous Marketing Expenses $32,520 $13,956 $9,544 $5,639 $4,203
G & A Salary - Supervisor $42,744 $53,014 $58,858 $59,683 $54,074
G & A Salary - CSR $39,520 $48,667 $51,810 $45,096 $41,565
G & A Overtime/Standby $4,256 $2,173 $3,877 $2,439 $898
G & A Payroll Taxes $7,940 $9,251 $10,460 $10,488 $8,513
G & A Group Insurance $8,976 $8,517 $9,155 $6,643 $8,242
G & A Other Benefits $0 $429 $10,326 $0 $8,592
G & A Allocated Personnel Expense $0 $1,834 $0 $0 $0
G & A Allocated P/R Expense $0 $371 $0 $0 $0
Rent - Office $24,964 $24,446 $18,607 $16,800 $14,600
R & M - Office $10,352 $8,770 $8,339 $6,894 $5,955
Office Supplies $6,060 $9,714 $9,103 $6,420 $5,289
Xerox & Printing $84 $2,113 $3,385 $5,119 $6,327
Vehicle - Gas & Oil $476 $1,046 $1,085 $1,882 $839
T & E System Travel $2,200 $2,032 $873 $1,576 $1,841
T & E System Non-Travel $48 $513 $618 $550 $490
Dues and Subscriptions $1,064 $1,909 $717 $766 $686
Conventions - Travel $0 $55 $13 $600 $2,115
Education $68 $3,507 $2,693 $785 $905
Recruiting $0 $941 $233 $64 $0
Insurance $86,904 $155,888 $82,303 $56,394 $67,186
Legal $38,556 $16,389 $7,599 $9,000 $21,250
Audit & Taxes $9,140 $11,744 $14,311 $22,254 $24,001
Association - Dues $4,036 $4,156 $4,467 $4,867 $4,347
Association - Lobbying $896 $878 $794 $720 $0
Political Contribution $0 $0 $0 $50 $0
Donations/Public Relations $1,204 $1,967 $1,810 $2,672 $2,462
Customer Billing $53,644 $63,687 $68,758 $60,389 $55,869
Postage & Messengers $61,424 $59,685 $54,234 $51,889 $46,479
Utilities $10,848 $9,580 $7,995 $7,294 $7,245
Telephone $46,944 $47,138 $41,672 $45,588 $39,583
Tax & Licenses $884 $1,219 $548 $655 $66
FCC User Fees $6,928 $6,686 $5,709 $3,734 $0
Reregulation Costs $21,752 $14,035 $3,876 $16,274 $11,202
CATV Franchise $134,196 $112,159 $118,639 $102,244 $129,731
Copyright Fees $92,800 $107,032 $85,156 $88,307 $79,921
BMI License Fees $0 $3,254 $0 $0 $0
ASCAP License Fees $7,872 $5,062 $0 $0 $0
Bad Debt Expense $34,276 $33,754 $56,738 $76,907 $92,197
Cap. Labor & OH Other $0 $0 $0 $0 $0
G & A Miscellaneous Expense $8,444 $3,792 $4,727 $4,914 $3,834
143
SYSTEM LOCATION: CENTREVILLE, MD
--------------------------------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
--------------------------------------------------------------------------
Primary Satellite Fees $821,784 $775,456 $661,699 $478,562 $434,114
Program Guides $9,532 $8,628 $9,484 $10,392 $11,463
Pay TV Fees $373,712 $420,459 $524,646 $444,068 $455,873
Video Game Fees $15,416 $16,199 $1,590 $0 $0
-------- -------- ------- --- --
Total Expenses $2,856,468 $2,847,160 $2,735,698 $2,393,414 $2,339,564
Operating Income $2,952,956 $2,495,477 $1,928,297 $1,674,008 $1,417,266
Operating Margin 50.83% 46.71% 41.34% 41.16% 37.73%
144
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: REDMOND, OR
-----------------------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96 12/31/95
-----------------------------------------------------------------------------------------------
REVENUES
Primary-1st Outlet $78,150 $937,800 $233,216 $932,864 $922,548 $932,155
Primary Commercial $5,332 $63,984 $15,505 $62,020 $69,928 $74,523
AG Tier $0 $0 $0 $0 $0 $0
AJ Tier $0 $0 $0 $0 $0 $0
AL Tier $5,845 $70,140 $17,491 $69,964 $69,638 $74,131
Radio Services $627 $7,524 $1,919 $7,676 $8,730 $11,473
Pay Cable 1st Outlet $4,597 $55,164 $14,539 $58,156 $71,992 $99,639
New Product Tier 1 $22,825 $273,900 $68,678 $274,712 $245,465 $219,116
Pay Cable Add'l Outlet $0 $0 $0 $0 $0 $0
Ala Carte $0 $0 $0 $0 $0 $0
Commercial Pay $0 $0 $0 $0 $0 $0
Mini Pay $187 $2,244 $546 $2,184 $2,529 $2,371
Primary Additional Outlet $0 $0 $0 $0 $0 $0
Remote Control $192 $2,304 $588 $2,352 $2,535 $2,868
Converter Rental $2,697 $32,364 $8,066 $32,264 $35,576 $39,429
Maintenance Contracts $511 $6,132 $1,587 $6,348 $7,002 $7,842
New Customer Pay Installs $0 $0 $0 $0 $0 $9
New Customer Basic Installs $535 $6,420 $2,575 $10,300 $5,607 $5,334
Installs Non New Customers $152 $1,824 $448 $1,792 $8,008 $9,167
Classified Ads $10 $120 $15 $60 $150 $1,100
Ad Insertion Sales $11,803 $141,636 $20,378 $81,512 $66,601 $67,548
Ad Sales Other $0 $0 $0 $0 $0 $0
Production and Loc. Origination ($5,360) ($64,320) ($200) ($800) $489 $760
Other Late Charges $780 $9,360 $2,930 $11,720 $13,540 $13,990
Other Copyright Pass Thru $0 $0 $0 $0 $0 $0
Other Miscellaneous $525 $6,300 $1,575 $6,300 $6,300 $5,897
FCC User Fees Pass Through $147 $1,764 $436 $1,744 $1,822 $1,841
Other - Programmers $0 $0 $5,594 $22,376 $6,386 $0
QVC Monthly Commission $657 $7,884 $2,084 $8,336 $7,529 $6,633
QVC Carriage Payment $654 $7,848 $1,308 $5,232 $6,965 $1,204
Other Networks Monthly Comm. $0 $0 $0 $0 $0 $20
Guides $271 $3,252 $848 $3,392 $2,253 $3
-------- ---------- -------- ---------- ---------- ----------
Total Revenues $131,137 $1,573,644 $400,126 $1,600,504 $1,561,593 $1,577,053
-------------------------------
TWELVE MONTHS TWELVE MONTHS
ENDING ENDING
12/31/94 12/31/93
-------------------------------
REVENUES
Primary-1st Outlet $1,015,166 $924,178
Primary Commercial $65,937 $45,745
AG Tier $0 $159,727
AJ Tier $0 $166,375
AL Tier $32,963 $0
Radio Services $15,045 $11,067
Pay Cable 1st Outlet $92,242 $117,344
New Product Tier 1 $0 $0
Pay Cable Add'l Outlet ($19) $0
Ala Carte $212,349 $43,578
Commercial Pay $0 $17,545
Mini Pay $2,746 $4,336
Primary Additional Outlet $7 $44,916
Remote Control $2,995 $20,722
Converter Rental $45,270 $21,765
Maintenance Contracts $4,809 $0
New Customer Pay Installs $49 $139
New Customer Basic Installs $5,511 $6,837
Installs Non New Customers $13,227 $11,317
Classified Ads $912 $9,941
Ad Insertion Sales $73,634 $12,173
Ad Sales Other $0 $21
Production and Loc. Origination $4,320 $0
Other Late Charges $14,685 $14,925
Other Copyright Pass Thru $0 $12,451
Other Miscellaneous $6,300 $7,834
FCC User Fees Pass Through $98 $0
Other - Programmers $0 $0
QVC Monthly Commission $6,522 $7,028
QVC Carriage Payment $1,204 $1,204
Other Networks Monthly Comm. $0 $0
Guides $0 $0
---------- ----------
Total Revenues $1,615,972 $1,661,168
145
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: REDMOND, OR
------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96
------------------------------------------------------------------------------
EXPENSES
Technical Salary - Supervisor $2,721 $32,652 $8,162 $32,648 $32,971
Technical Salary - Technician $1,684 $20,208 $5,011 $20,044 $20,180
Technical Salary - Dispatcher $0 $0 $0 $0 $0
Technical Salary - Installers $1,560 $18,720 $4,680 $18,720 $17,658
Overtime/Standby $1,133 $13,596 $4,865 $19,460 $12,805
Payroll Taxes $495 $5,940 $2,526 $10,104 $8,129
Group Insurance $504 $6,048 $1,762 $7,048 $7,475
Other Benefits ($4,643) ($55,716) ($3,615) ($14,460) $1,011
Contract Labor $0 $0 $160 $640 $160
Allocated Department Expense $0 $0 $496 $1,984 $496
Rent - Headend $0 $0 ($160) ($640) $0
Rent - Poles and Ducts ($3,437) ($41,244) ($311) ($1,244) $13,566
R & M Plant $220 $2,640 $529 $2,116 $1,629
R & M Converter $0 $0 $0 $0 $0
R & M Other $55 $660 $55 $220 $671
Material and Reconnect $448 $5,376 $1,239 $4,956 $7,459
Vehicle - Gas & Oil $471 $5,652 $1,889 $7,556 $6,895
Vehicle - Service $200 $2,400 $473 $1,892 $2,176
T & E System Travel $0 $0 $0 $0 $41
T & E System Non-Travel $0 $0 $0 $0 $15
Dues & Subscriptions $0 $0 $0 $0 $42
Education $0 $0 $0 $0 $61
System Power Costs $1,253 $15,036 $3,132 $12,528 $12,085
Recruiting $0 $0 $0 $0 $42
Loss on Converters $75 $900 $225 $900 $900
Property Taxes ($8,294) ($99,528) ($6,300) ($25,200) $429
Uniforms $322 $3,864 $645 $2,580 $1,906
Small Tool and Safety $101 $1,212 $160 $640 $385
Capital Labor & OH Construction ($7,349) ($88,188) ($21,816) ($87,264) ($63,520)
Capital Labor & OH Customer ($1,093) ($13,116) ($4,695) ($18,780) ($18,795)
Production and Local Origination
Allocated $541 $6,492 $777 $3,108 $1,966
P and L Allocated P/R Benefit ($3) ($36) $79 $316 $450
P and L Other Expense $144 $1,728 $478 $1,912 $1,541
Ad Sales Payroll Taxes $136 $1,632 $687 $2,748 $2,250
Ad Sales Group Insurance ($215) ($2,580) $339 $1,356 $2,063
-------------------------------------------------
TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING ENDING
12/31/95 12/31/94 12/31/93
-------------------------------------------------
EXPENSES
Technical Salary - Supervisor $31,888 $0 $0
Technical Salary - Technician $20,563 $51,573 $48,776
Technical Salary - Dispatcher $0 $0 $0
Technical Salary - Installers $14,674 $17,424 $17,264
Overtime/Standby $6,535 $10,460 $14,538
Payroll Taxes $6,399 $6,689 $7,401
Group Insurance $6,999 $2,865 $8,152
Other Benefits $3,240 $4,116 $4,956
Contract Labor $260 $0 $0
Allocated Department Expense $27 $0 $0
Rent - Headend $0 $0 $0
Rent - Poles and Ducts $17,546 $8,902 $16,819
R & M Plant $916 $986 $2,234
R & M Converter $0 $0 $61
R & M Other $540 $561 $695
Material and Reconnect $5,898 $1,309 $0
Vehicle - Gas & Oil $6,606 $6,157 $6,874
Vehicle - Service $1,991 $3,461 $2,379
T & E System Travel $76 $203 $152
T & E System Non-Travel $0 $0 $83
Dues & Subscriptions $80 $0 $45
Education $234 $0 $0
System Power Costs $10,772 $11,245 $10,733
Recruiting $287 $0 $0
Loss on Converters $900 $900 $900
Property Taxes $13,710 $14,013 $14,081
Uniforms $1,280 $1,271 $1,336
Small Tool and Safety $522 $120 $723
Capital Labor & OH Construction ($12,184) ($12,346) ($15,878)
Capital Labor & OH Customer ($24,215) ($32,947) ($20,441)
Production and Local Origination
Allocated $947 $0 $654
P and L Allocated P/R Benefit $270 $0 $86
P and L Other Expense $292 $0 $0
Ad Sales Payroll Taxes $1,053 $1,089 $763
Ad Sales Group Insurance $1,291 $2,095 $299
146
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: REDMOND, OR
------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96
------------------------------------------------------------------------------
Ad Sales Alloc. Personnel Benefit $394 $4,728 $1,192 $4,768 $5,189
Ad Sales Alloc. P/R Benefit $63 $756 $258 $1,032 $1,351
Employee Commissions $1,800 $21,600 $6,300 $25,200 $23,451
Other Ad Sale Expenses $1,730 $20,760 $3,780 $15,120 $17,912
Marketing Payroll Taxes $84 $1,008 $181 $724 $181
Allocated P/R Benefit $0 $0 $0 $0 $0
Marketing Employee Commissions $949 $11,388 $1,933 $7,732 $2,127
Marketing Expenses $1,791 $21,492 $6,997 $27,988 $41,591
Dues and Subscriptions $14 $168 $30 $120 $154
Rebates $0 $0 $0 $0 $0
Pay Per View Expenses $0 $0 $2 $8 $9
Video Game Expenses $0 $0 $0 $0 $0
Miscellaneous Marketing Expenses $1,556 $18,672 $4,096 $16,384 $5,433
G & A Salary - Supervisor $2,947 $35,364 $8,842 $35,368 $35,368
G & A Salary - CSR $2,999 $35,988 $9,195 $36,780 $34,892
G & A Overtime/Standby $0 $0 $0 $0 $0
G & A Payroll Taxes $561 $6,732 $2,222 $8,888 $7,232
G & A Group Insurance $276 $3,312 $1,055 $4,220 $4,405
G & A Other Benefits ($3,414) ($40,968) ($2,658) ($10,632) $744
G & A Contract Labor $0 $0 $0 $0 $0
G & A Allocated Personnel Expense $0 $0 $0 $0 $0
G & A Allocated Department Expense $0 $0 $0 $0 $1,276
Rent - Office $0 $0 $0 $0 $0
R & M - Office $547 $6,564 $1,387 $5,548 $6,215
Office Supplies $48 $576 $917 $3,668 $3,477
Xerox & Printing $124 $1,488 $386 $1,544 $697
Vehicle - Gas & Oil $0 $0 $40 $160 $367
T & E System Travel $20 $240 $447 $1,788 $582
T & E System Non-Travel $0 $0 $0 $0 $22
Dues and Subscriptions $113 $1,356 $365 $1,460 $1,807
Conventions - Travel $0 $0 $0 $0 $200
Education $7 $84 $6 $24 $550
Recruiting $0 $0 $0 $0 $0
Insurance $3,170 $38,040 $8,379 $33,516 $7,860
Legal $500 $6,000 $1,519 $6,076 $6,019
Audit & Taxes $762 $9,144 $2,285 $9,140 $13,154
Association - Dues $184 $2,208 $551 $2,204 $2,299
-------------------------------------------------
TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING ENDING
12/31/95 12/31/94 12/31/93
-------------------------------------------------
Ad Sales Alloc. Personnel Benefit $4,895 $4,549 $3,161
Ad Sales Alloc. P/R Benefit $1,320 $1,240 $821
Employee Commissions $12,715 $13,072 $7,286
Other Ad Sale Expenses $12,671 $14,157 $10,449
Marketing Payroll Taxes $0 $0 $722
Allocated P/R Benefit $0 $0 $10
Marketing Employee Commissions $644 $503 $8,750
Marketing Expenses $31,634 $35,140 $16,153
Dues and Subscriptions $455 $226 $1,028
Rebates $0 ($603) $0
Pay Per View Expenses $84 $35 $0
Video Game Expenses $0 $0 $0
Miscellaneous Marketing Expenses $2,914 $4,463 $4,760
G & A Salary - Supervisor $34,008 $28,621 $51,916
G & A Salary - CSR $35,386 $25,245 $19,032
G & A Overtime/Standby $119 $0 $0
G & A Payroll Taxes $6,242 $5,019 $7,444
G & A Group Insurance $4,101 ($636) $7,340
G & A Other Benefits ($4,286) $11,892 $23,112
G & A Contract Labor $40 $9,448 $1,775
G & A Allocated Personnel Expense $0 $0 $0
G & A Allocated Department Expense $479 $0 $0
Rent - Office $0 $0 $0
R & M - Office $6,015 $5,578 $5,125
Office Supplies $2,416 $1,944 $2,072
Xerox & Printing $1,607 $1,671 $2,278
Vehicle - Gas & Oil $427 $515 $1,099
T & E System Travel $404 $335 $911
T & E System Non-Travel $1,674 $0 $208
Dues and Subscriptions $2,238 $1,470 $2,769
Conventions - Travel $676 $620 $2,221
Education $248 $851 $545
Recruiting $8 $0 $0
Insurance $26,414 $45,772 $32,315
Legal $3,266 $6,000 $5,304
Audit & Taxes $8,511 $8,954 $10,844
Association - Dues $1,961 $2,440 $3,327
147
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: REDMOND, OR
------------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96
------------------------------------------------------------------------------
Association - Lobbying $50 $600 $151 $604 $623
Political Contribution $0 $0 $0 $0 $0
Donations/Public Relations ($129) ($1,548) $663 $2,652 $3,754
Customer Billing $1,617 $19,404 $5,765 $23,060 $21,933
Postage & Messengers $1,533 $18,396 $4,608 $18,432 $18,757
Utilities $334 $4,008 $1,016 $4,064 $4,703
Telephone $664 $7,968 $2,197 $8,788 $8,582
Tax & Licenses $60 $720 $429 $1,716 $1,584
FCC User Fees $160 $1,920 $480 $1,920 $2,051
Reregulation Costs $0 $0 $1,931 $7,724 $4,167
CATV Franchise $1,295 $15,540 $3,757 $15,028 $15,186
Copyright Fees $1,996 $23,952 $5,872 $23,488 $24,743
BMI License Fees $0 $0 ($42) ($168) $1,216
ASCAP License Fees $291 $3,492 $873 $3,492 $2,244
Bad Debt Expense $2,031 $24,372 $5,627 $22,508 $20,654
Cap. Labor & OH Other ($380) ($4,560) ($1,267) ($5,068) ($6,525)
G & A Miscellaneous Expense $471 $5,652 $709 $2,836 $807
Primary Satellite Fees $13,005 $156,060 $37,226 $148,904 $147,138
Program Guides $659 $7,908 $2,306 $9,224 $6,777
Pay TV Fees $4,372 $52,464 $12,211 $48,844 $54,532
Video Game Fees $0 $0 $0 $0 $0
Pay Per View Fees $0 $0 $0 $0 $0
------- ---------- -------- ---------- --------
Total Expenses $32,283 $387,396 $145,691 $582,764 $632,632
Operating Income $98,854 $1,186,248 $254,435 $1,017,740 $928,961
Operating Margin 75.38% 75.38% 63.59% 63.59% 59.49%
-------------------------------------------------
TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING ENDING
12/31/95 12/31/94 12/31/93
-------------------------------------------------
Association - Lobbying $315 $429 $0
Political Contribution $0 $0 $0
Donations/Public Relations $3,215 $3,161 $2,786
Customer Billing $24,870 $25,987 $24,510
Postage & Messengers $19,538 $18,465 $19,239
Utilities $3,931 $4,275 $3,746
Telephone $8,653 $9,565 $7,412
Tax & Licenses $1,021 $375 $326
FCC User Fees $2,002 $1,820 $0
Reregulation Costs $1,321 $6,987 $8,026
CATV Franchise $19,447 $20,851 $25,970
Copyright Fees $20,334 $21,299 $22,096
BMI License Fees $0 $0 $0
ASCAP License Fees $0 $0 $0
Bad Debt Expense $21,437 $20,372 $19,263
Cap. Labor & OH Other ($4,704) ($1,142) ($3,152)
G & A Miscellaneous Expense $1,912 $684 $530
Primary Satellite Fees $166,294 $145,095 $152,834
Program Guides $4,829 $4,115 $4,312
Pay TV Fees $78,767 $72,138 $84,799
Video Game Fees $0 $0 $0
Pay Per View Fees $0 $0 $0
-------- -------- --------
Total Expenses $691,865 $683,143 $729,159
Operating Income $885,188 $932,829 $932,009
Operating Margin 56.13% 57.73% 56.11%
148
SYSTEM LOCATION: REDMOND, OR
------------------------------------------------------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
ONE MONTH THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
------------------------------------------------------------------------------------------------
REVENUES
Primary-1st Outlet $937,800 $932,864 $922,548 $932,155 $1,015,166 $924,178
Primary Commercial $63,984 $62,020 $69,928 $74,523 $65,937 $45,745
AG Tier $0 $0 $0 $0 $0 $159,727
AJ Tier $0 $0 $0 $0 $0 $166,375
AL Tier $70,140 $69,964 $69,638 $74,131 $32,963 $0
Radio Services $7,524 $7,676 $8,730 $11,473 $15,045 $11,067
Pay Cable 1st Outlet $55,164 $58,156 $71,992 $99,639 $92,242 $117,344
New Product Tier 1 $273,900 $274,712 $245,465 $219,116 $0 $0
Pay Cable Add'l Outlet $0 $0 $0 $0 ($19) $0
Ala Carte $0 $0 $0 $0 $212,349 $43,578
Commercial Pay $0 $0 $0 $0 $0 $17,545
Mini Pay $2,244 $2,184 $2,529 $2,371 $2,746 $4,336
Primary Additional Outlet $0 $0 $0 $0 $7 $44,916
Remote Control $2,304 $2,352 $2,535 $2,868 $2,995 $20,722
Converter Rental $32,364 $32,264 $35,576 $39,429 $45,270 $21,765
Maintenance Contracts $6,132 $6,348 $7,002 $7,842 $4,809 $0
New Customer Pay Installs $0 $0 $0 $9 $49 $139
New Customer Basic Installs $6,420 $10,300 $5,607 $5,334 $5,511 $6,837
Installs Non New Customers $1,824 $1,792 $8,008 $9,167 $13,227 $11,317
Classified Ads $120 $60 $150 $1,100 $912 $9,941
Ad Insertion Sales $141,636 $81,512 $66,601 $67,548 $73,634 $12,173
Ad Sales Other $0 $0 $0 $0 $0 $21
Production and Loc. Origination $0 $0 $489 $760 $4,320 $0
Other Late Charges $9,360 $11,720 $13,540 $13,990 $14,685 $14,925
Other Copyright Pass Thru $0 $0 $0 $0 $0 $12,451
Other Miscellaneous $6,300 $6,300 $6,300 $5,897 $6,300 $7,834
FCC User Fees Pass Through $1,764 $1,744 $1,822 $1,841 $98 $0
Other - Programmers $0 $22,376 $6,386 $0 $0 $0
QVC Monthly Commission $7,884 $8,336 $7,529 $6,633 $6,522 $7,028
QVC Carriage Payment $7,848 $5,232 $6,965 $1,204 $1,204 $1,204
Other Networks Monthly Comm. $0 $0 $0 $20 $0 $0
Guides $3,252 $3,392 $2,253 $3 $0 $0
---------- ---------- ---------- ---------- ---------- ----------
Total Revenues $1,637,964 $1,601,304 $1,561,593 $1,577,053 $1,615,972 $1,661,168
149
SYSTEM LOCATION: REDMOND, OR
------------------------------------------------------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
ONE MONTH THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
------------------------------------------------------------------------------------------------
EXPENSES
Technical Salary - Supervisor $32,652 $32,648 $32,971 $31,888 $0 $0
Technical Salary - Technician $20,208 $20,044 $20,180 $20,563 $51,573 $48,776
Technical Salary - Dispatcher $0 $0 $0 $0 $0 $0
Technical Salary - Installers $18,720 $18,720 $17,658 $14,674 $17,424 $17,264
Overtime/Standby $13,596 $19,460 $12,805 $6,535 $10,460 $14,538
Payroll Taxes $5,940 $10,104 $8,129 $6,399 $6,689 $7,401
Group Insurance $6,048 $7,048 $7,475 $6,999 $2,865 $8,152
Other Benefits $0 $0 $1,011 $3,240 $4,116 $4,956
Contract Labor $0 $640 $160 $260 $0 $0
Allocated Department Expense $0 $1,984 $496 $27 $0 $0
Rent - Headend $0 $0 $0 $0 $0 $0
Rent - Poles and Ducts $14,000 $14,000 $13,566 $17,546 $8,902 $16,819
R & M Plant $2,640 $2,116 $1,629 $916 $986 $2,234
R & M Converter $0 $0 $0 $0 $0 $61
R & M Other $660 $220 $671 $540 $561 $695
Material and Reconnect $5,376 $4,956 $7,459 $5,898 $1,309 $0
Vehicle - Gas & Oil $5,652 $7,556 $6,895 $6,606 $6,157 $6,874
Vehicle - Service $2,400 $1,892 $2,176 $1,991 $3,461 $2,379
T & E System Travel $0 $0 $41 $76 $203 $152
T & E System Non-Travel $0 $0 $15 $0 $0 $83
Dues & Subscriptions $0 $0 $42 $80 $0 $45
Education $0 $0 $61 $234 $0 $0
System Power Costs $15,036 $12,528 $12,085 $10,772 $11,245 $10,733
Recruiting $0 $0 $42 $287 $0 $0
Loss on Converters $900 $900 $900 $900 $900 $900
Property Taxes $0 $0 $429 $13,710 $14,013 $14,081
Uniforms $3,864 $2,580 $1,906 $1,280 $1,271 $1,336
Small Tool and Safety $1,212 $640 $385 $522 $120 $723
Capital Labor & OH Construction $0 $0 $0 $0 $0 $0
Capital Labor & OH Customer $0 $0 $0 $0 $0 $0
Production and Local Origination
Allocated $6,492 $3,108 $1,966 $947 $0 $654
P and L Allocated P/R Benefit ($36) $316 $450 $270 $0 $86
P and L Other Expense $1,728 $1,912 $1,541 $292 $0 $0
Ad Sales Payroll Taxes $1,632 $2,748 $2,250 $1,053 $1,089 $763
Ad Sales Group Insurance $2,000 $1,356 $2,063 $1,291 $2,095 $299
150
SYSTEM LOCATION: REDMOND, OR
------------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED
ONE MONTH THREE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING 12/31/96 ENDING
ANNUALIZED ANNUALIZED 12/31/96
------------------------------------------------------
Ad Sales Alloc. Personnel Benefit $4,728 $4,768 $5,189
Ad Sales Alloc. P/R Benefit $756 $1,032 $1,351
Employee Commissions $21,600 $25,200 $23,451
Other Ad Sale Expenses $20,760 $15,120 $17,912
Marketing Payroll Taxes $1,008 $724 $181
Allocated P/R Benefit $0 $0 $0
Marketing Employee Commissions $11,388 $7,732 $2,127
Marketing Expenses $21,492 $27,988 $41,591
Dues and Subscriptions $168 $120 $154
Rebates $0 $0 $0
Pay Per View Expenses $0 $8 $9
Video Game Expenses $0 $0 $0
Miscellaneous Marketing Expenses $18,672 $16,384 $5,433
G & A Salary - Supervisor $35,364 $35,368 $35,368
G & A Salary - CSR $35,988 $36,780 $34,892
G & A Overtime/Standby $0 $0 $0
G & A Payroll Taxes $6,732 $8,888 $7,232
G & A Group Insurance $3,312 $4,220 $4,405
G & A Other Benefits $0 $0 $744
G & A Contract Labor $0 $0 $0
G & A Allocated Personnel Expense $0 $0 $0
G & A Allocated Department Expense $0 $0 $1,276
Rent - Office $0 $0 $0
R & M - Office $6,564 $5,548 $6,215
Office Supplies $576 $3,668 $3,477
Xerox & Printing $1,488 $1,544 $697
Vehicle - Gas & Oil $0 $160 $367
T & E System Travel $240 $1,788 $582
T & E System Non-Travel $0 $0 $22
Dues and Subscriptions $1,356 $1,460 $1,807
Conventions - Travel $0 $0 $200
Education $84 $24 $550
Recruiting $0 $0 $0
Insurance $38,040 $33,516 $7,860
Legal $6,000 $6,076 $6,019
Audit & Taxes $9,144 $9,140 $13,154
Association - Dues $2,208 $2,204 $2,299
---------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED
TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING ENDING
12/31/95 12/31/94 12/31/93
---------------------------------------------------
Ad Sales Alloc. Personnel Benefit $4,895 $4,549 $3,161
Ad Sales Alloc. P/R Benefit $1,320 $1,240 $821
Employee Commissions $12,715 $13,072 $7,286
Other Ad Sale Expenses $12,671 $14,157 $10,449
Marketing Payroll Taxes $0 $0 $722
Allocated P/R Benefit $0 $0 $10
Marketing Employee Commissions $644 $503 $8,750
Marketing Expenses $31,634 $35,140 $16,153
Dues and Subscriptions $455 $226 $1,028
Rebates $0 ($603) $0
Pay Per View Expenses $84 $35 $0
Video Game Expenses $0 $0 $0
Miscellaneous Marketing Expenses $2,914 $4,463 $4,760
G & A Salary - Supervisor $34,008 $28,621 $51,916
G & A Salary - CSR $35,386 $25,245 $19,032
G & A Overtime/Standby $119 $0 $0
G & A Payroll Taxes $6,242 $5,019 $7,444
G & A Group Insurance $4,101 $0 $7,340
G & A Other Benefits $0 $11,892 $23,112
G & A Contract Labor $40 $9,448 $1,775
G & A Allocated Personnel Expense $0 $0 $0
G & A Allocated Department Expense $479 $0 $0
Rent - Office $0 $0 $0
R & M - Office $6,015 $5,578 $5,125
Office Supplies $2,416 $1,944 $2,072
Xerox & Printing $1,607 $1,671 $2,278
Vehicle - Gas & Oil $427 $515 $1,099
T & E System Travel $404 $335 $911
T & E System Non-Travel $1,674 $0 $208
Dues and Subscriptions $2,238 $1,470 $2,769
Conventions - Travel $676 $620 $2,221
Education $248 $851 $545
Recruiting $8 $0 $0
Insurance $26,414 $45,772 $32,315
Legal $3,266 $6,000 $5,304
Audit & Taxes $8,511 $8,954 $10,844
Association - Dues $1,961 $2,440 $3,327
151
SYSTEM LOCATION: REDMOND, OR
-----------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED
ONE MONTH THREE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING 12/31/96 ENDING
ANNUALIZED ANNUALIZED 12/31/96
-----------------------------------------------------
Association - Lobbying $600 $604 $623
Political Contribution $0 $0 $0
Donations/Public Relations $3,000 $2,652 $3,754
Customer Billing $19,404 $23,060 $21,933
Postage & Messengers $18,396 $18,432 $18,757
Utilities $4,008 $4,064 $4,703
Telephone $7,968 $8,788 $8,582
Tax & Licenses $720 $1,716 $1,584
FCC User Fees $1,920 $1,920 $2,051
Reregulation Costs $0 $7,724 $4,167
CATV Franchise $15,540 $15,028 $15,186
Copyright Fees $23,952 $23,488 $24,743
BMI License Fees $0 $0 $1,216
ASCAP License Fees $3,492 $3,492 $2,244
Bad Debt Expense $24,372 $22,508 $20,654
Cap. Labor & OH Other $0 $0 $0
G & A Miscellaneous Expense $5,652 $2,836 $807
Primary Satellite Fees $156,060 $148,904 $147,138
Program Guides $7,908 $9,224 $6,777
Pay TV Fees $52,464 $48,844 $54,532
Video Game Fees $0 $0 $0
Pay Per View Fees $0 $0 $0
--- --- ---
Total Expenses $753,844 $760,220 $721,472
Operating Income $884,120 $841,084 $840,121
Operating Margin 53.98% 52.52% 53.80%
----------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED
TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING ENDING ENDING
12/31/95 12/31/94 12/31/93
----------------------------------------------------
Association - Lobbying $315 $429 $0
Political Contribution $0 $0 $0
Donations/Public Relations $3,215 $3,161 $2,786
Customer Billing $24,870 $25,987 $24,510
Postage & Messengers $19,538 $18,465 $19,239
Utilities $3,931 $4,275 $3,746
Telephone $8,653 $9,565 $7,412
Tax & Licenses $1,021 $375 $326
FCC User Fees $2,002 $1,820 $0
Reregulation Costs $1,321 $6,987 $8,026
CATV Franchise $19,447 $20,851 $25,970
Copyright Fees $20,334 $21,299 $22,096
BMI License Fees $0 $0 $0
ASCAP License Fees $0 $0 $0
Bad Debt Expense $21,437 $20,372 $19,263
Cap. Labor & OH Other $0 $0 $0
G & A Miscellaneous Expense $1,912 $684 $530
Primary Satellite Fees $166,294 $145,095 $152,834
Program Guides $4,829 $4,115 $4,312
Pay TV Fees $78,767 $72,138 $84,799
Video Game Fees $0 $0 $0
Pay Per View Fees $0 $0 $0
--- --- --
Total Expenses $737,254 $730,214 $768,630
Operating Income $839,799 $885,758 $892,538
Operating Margin 53.25% 54.81% 53.73%
152
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: SOMERSET, KY
-------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96
-------------------------------------------------------------------------
REVENUES
Primary - First Outlet $365,957 $4,391,484 $1,081,892 $4,327,568 $4,085,262
Primary Commercial $5,310 $63,720 $17,526 $70,104 $73,145
Expanded Tier $0 $0 $0 $0 $0
A-G Tier $6 $72 $21 $84 $83
A-J Tier $15 $180 $48 $192 $149
A-L Tier $44,521 $534,252 $131,572 $526,288 $474,908
Radio Services $5 $60 $17 $68 $102
Pay Cable First Outlet $32,923 $395,076 $98,341 $393,364 $440,217
Pay Cable Additional Outlet $299 $3,588 $867 $3,468 $4,085
Ala Carte $0 $0 $0 $0 $0
New Product Tier 1 $99,755 $1,197,060 $296,279 $1,185,116 $1,005,944
Commercial Pay $857 $10,284 $4,080 $16,320 $20,604
Pay Per View $623 $7,476 $3,560 $14,240 $11,912
Primary Additional Outlet $0 $0 $0 $0 $0
Remote Control $1,544 $18,528 $4,624 $18,496 $28,564
Converter Rental $8,108 $97,296 $23,900 $95,600 $83,054
Maintenance Contracts $3,264 $39,168 $9,959 $39,836 $41,057
New Customer Pay Installs $0 $0 $0 $0 $0
New Customer Basic Installs $910 $10,920 $4,257 $17,028 $24,787
Installation Materials Charge $0 $0 ($10) ($40) $5
Installs - Non New Customers $4,083 $48,996 $15,801 $63,204 $88,319
Guide Revenue $406 $4,872 $1,263 $5,052 $3,762
Other - Late Charges $6,590 $79,080 $18,325 $73,300 $70,610
Other - Rent $1,164 $13,968 $2,400 $9,600 $9,600
Other - Franchise Pass Through $2,061 $24,732 $6,146 $24,584 $22,934
Other - Miscellaneous $0 $0 $660 $2,640 $905
FCC User Fees Pass Through $780 $9,360 $2,346 $9,384 $9,413
Other - Programmers $45,922 $551,064 $163,871 $655,484 $168,073
QVC Monthly Commission $1,943 $23,316 $6,898 $27,592 $26,495
QVC Carriage Payment $0 $0 $3,103 $12,412 $12,307
HSN Monthly Commission $707 $8,484 ($8,332) ($33,328) $10,667
HSN Carriage Payment $2,234 $26,808 $17,748 $70,992 $28,827
Classifed Ads $6,770 $81,240 $21,790 $87,160 $101,632
Ad Insertion Sales $28,650 $343,800 $72,005 $288,020 $198,116
Ad Sales Other $0 $0 $0 $0 $0
Production & Local Origination $8,453 $101,436 $17,325 $69,300 $45,327
------- --------- -------- -------- -------
Total Revenues $673,860 $8,086,320 $2,018,282 $8,073,128 $7,090,865
SYSTEM LOCATION: SOMERSET, KY
--------------
-------------------------------------------- ADJUSTED
TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING ENDING 12/31/96
12/31/95 12/31/94 12/31/93 ANNUALIZED
-------------------------------------------- --------------
REVENUES
Primary - First Outlet $3,780,392 $3,827,585 $3,171,423 $4,391,484
Primary Commercial $69,778 $68,505 $67,614 $63,720
Expanded Tier $0 $0 $0 $0
A-G Tier $60 $23,815 $457,868 $72
A-J Tier $74 $23,544 $815,239 $180
A-L Tier $412,199 $165,567 $0 $534,252
Radio Services $98 $0 $0 $60
Pay Cable First Outlet $466,915 $390,766 $354,268 $395,076
Pay Cable Additional Outlet $6,672 $8,484 $7,591 $3,588
Ala Carte $0 $717,997 $173,276 $0
New Product Tier 1 $813,889 $0 $0 $1,197,060
Commercial Pay $32,976 $12,816 $12,567 $10,284
Pay Per View $6,818 $7,417 $6,523 $7,476
Primary Additional Outlet $0 $1,470 $40,225 $0
Remote Control $44,680 $42,696 $50,444 $18,528
Converter Rental $49,650 $48,193 $14,060 $97,296
Maintenance Contracts $37,671 $21,269 $0 $39,168
New Customer Pay Installs $78 $78 $275 $0
New Customer Basic Installs $33,786 $53,663 $65,766 $10,920
Installation Materials Charge $301 $0 $0 $0
Installs - Non New Customers $92,532 $83,947 $78,466 $48,996
Guide Revenue $8 $0 $0 $4,872
Other - Late Charges $67,905 $85,715 $73,700 $79,080
Other - Rent $8,960 $9,498 $10,407 $13,968
Other - Franchise Pass Through $5,519 $0 $0 $24,732
Other - Miscellaneous $33 $382 $1,403 $0
FCC User Fees Pass Through $8,848 $455 $0 $9,360
Other - Programmers $0 $0 $0 $551,064
QVC Monthly Commission $25,290 $23,479 $23,297 $23,316
QVC Carriage Payment $14,516 $14,516 $14,515 $0
HSN Monthly Commission $7,489 $0 $0 $8,484
HSN Carriage Payment $14,772 $0 $0 $26,808
Classifed Ads $91,439 $71,510 $60,097 $81,240
Ad Insertion Sales $183,458 $171,423 $127,342 $343,800
Ad Sales Other $0 $0 $91 $0
Production & Local Origination $22,396 $13,511 $9,175 $101,436
-------- -------- ------- --------
Total Revenues $6,299,202 $5,888,301 $5,635,632 $8,086,320
153
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: SOMERSET, KY
-------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96
-------------------------------------------------------------------------
EXPENSES
Technical Salary - Supervisor $5,576 $66,912 $16,729 $66,916 $66,916
Technical Salary - Technician $35,569 $426,828 $109,714 $438,856 $428,056
Technical Salary - Dispatcher $0 $0 $0 $0 $0
Technical Salary - Installers $13,103 $157,236 $38,269 $153,076 $148,029
Overtime/Standby $18,599 $223,188 $60,220 $240,880 $158,241
Payroll Taxes $4,992 $59,904 $17,547 $70,188 $66,258
Group Insurance $5,467 $65,604 $16,982 $67,928 $69,287
Other Benefits ($23,842) ($286,104) ($17,070) ($68,280) $13,404
Allocated Personnel Expense ($41,600) ($499,200) ($122,898) ($491,592) ($449,977)
Allocated P/R Benefit $7,278 $87,336 ($10,058) ($40,232) ($87,450)
Allocated Department Expense $0 $0 $92 $368 $92
Rent - Headend $2,800 $33,600 $8,400 $33,600 $34,100
Rent - Poles and Ducts ($10,459) ($125,508) $3,603 $14,412 $67,017
R & M Plant $564 $6,768 $4,063 $16,252 $15,538
R & M Converter $867 $10,404 $4,351 $17,404 $18,647
R & M Other $484 $5,808 $3,354 $13,416 $6,072
Material and Reconnect $818 $9,816 $2,903 $11,612 $9,544
Vehicle - Gas & Oil $1,756 $21,072 $7,568 $30,272 $28,896
Vehicle - Service $652 $7,824 $2,743 $10,972 $14,128
Leased Vehicles $0 $0 $0 $0 $0
T & E System Travel $0 $0 $0 $0 $0
T & E System Non-Travel $141 $1,692 $483 $1,932 $578
Dues & Subscriptions $9 $108 $28 $112 $203
Education $0 $0 $0 $0 $409
System Power Costs $5,581 $66,972 $18,295 $73,180 $68,318
Recruiting $0 $0 $0 $0 $0
Loss on Converters $150 $1,800 $450 $1,800 $1,800
Property Taxes $87,028 $1,044,336 $137,789 $551,156 $364,690
Uniforms $738 $8,856 $1,915 $7,660 $7,304
Small Tool and Safety $0 $0 $0 $0 $800
Capital Labor & OH Construction ($24,618) ($295,416) ($94,369) ($377,476) ($206,921)
Capital Labor & OH Customer ($6,293) ($75,516) ($24,657) ($98,628) ($81,887)
P & L Salary - Producer Assistant $1,908 $22,896 $5,716 $22,864 $22,738
Payroll Taxes $159 $1,908 $544 $2,176 $1,899
Group Insurance $98 $1,176 $347 $1,388 $1,500
Other Benefits $190 $2,280 $664 $2,656 $1,744
Employee Commissions $0 $0 $0 $0 $0
P & L Other Expenses $808 $9,696 $2,860 $11,440 $6,113
Ad Sales Salary Supervisor $451 $5,412 $1,353 $5,412 $5,412
--------------
-------------------------------------------- ADJUSTED
TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING ENDING 12/31/96
12/31/95 12/31/94 12/31/93 ANNUALIZED
-------------------------------------------- --------------
EXPENSES
Technical Salary - Supervisor $64,342 $61,868 $59,488 $66,912
Technical Salary - Technician $405,137 $394,220 $395,567 $426,828
Technical Salary - Dispatcher $0 $0 $0 $0
Technical Salary - Installers $132,929 $114,762 $124,670 $157,236
Overtime/Standby $125,429 $133,982 $101,432 $223,188
Payroll Taxes $61,895 $59,987 $55,772 $59,904
Group Insurance $53,433 $30,569 $98,650 $65,604
Other Benefits $25,668 $37,410 $44,592 $15,000
Allocated Personnel Expense ($405,626) ($408,422) ($390,803) ($499,200)
Allocated P/R Benefit ($84,926) ($76,166) ($122,091) $87,336
Allocated Department Expense $0 $0 ($433) $0
Rent - Headend $34,900 $33,600 $33,600 $33,600
Rent - Poles and Ducts $78,490 $97,371 $53,318 $60,000
R & M Plant $10,113 $5,916 $4,751 $6,768
R & M Converter $14,051 $4,852 $1,581 $10,404
R & M Other $6,202 $4,084 $2,138 $5,808
Material and Reconnect $9,481 $7,208 $4,800 $9,816
Vehicle - Gas & Oil $22,128 $22,015 $21,404 $21,072
Vehicle - Service $17,710 $16,800 $7,986 $7,824
Leased Vehicles $0 $0 $13,384 $0
T & E System Travel $58 $0 $150 $0
T & E System Non-Travel $0 $63 $78 $1,692
Dues & Subscriptions $522 $925 $586 $108
Education $132 $497 $506 $0
System Power Costs $72,792 $77,598 $62,774 $66,972
Recruiting $0 $0 $0 $0
Loss on Converters $1,800 $1,800 $1,800 $1,800
Property Taxes $264,900 $184,185 $309,246 $1,044,336
Uniforms $6,791 $5,435 $6,621 $8,856
Small Tool and Safety $400 $156 $169 $0
Capital Labor & OH Construction ($156,243) ($95,119) ($68,332) $0
Capital Labor & OH Customer ($77,658) ($49,598) ($86,936) $0
P & L Salary - Producer Assistant $22,198 $20,016 $15,600 $22,896
Payroll Taxes $1,886 $1,669 $1,227 $1,908
Group Insurance $1,240 $1,571 $1,993 $1,176
Other Benefits $1,488 $1,512 $1,230 $2,280
Employee Commissions $2,320 $25 $0 $0
P & L Other Expenses $568 $0 $0 $9,696
Ad Sales Salary Supervisor $5,412 $20,810 $20,290 $5,412
154
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: SOMERSET, KY
-------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96
-------------------------------------------------------------------------
Ad Sales Payroll Taxes $535 $6,420 $1,845 $7,380 $7,630
Ad Sales Group Insurance $532 $6,384 $1,698 $6,792 $7,730
Ad Sales Other Benefits ($22) ($264) $34 $136 $286
Ad Sales Alloc. Personnel Benefit $958 $11,496 $3,023 $12,092 $11,163
Ad Sales Alloc. P/R Benefit $937 $11,244 ($485) ($1,940) ($6,535)
Employee Commissions $1,904 $22,848 $5,428 $21,712 $25,626
Other Ad Sale Expenses ($12,225) ($146,700) ($6,420) ($25,680) $13,751
Marketing Payroll Taxes $0 $0 $0 $0 $0
Marketing Salary & Benefits $0 $0 $0 $0 $0
Marketing Allocated P/R Benefit $0 $0 $0 $0 $0
Marketing Employee Commissions $526 $6,312 $526 $2,104 $978
Marketing Expenses $3,180 $38,160 $31,522 $126,088 $88,866
Dues and Subscriptions $73 $876 $238 $952 $727
Rebates $0 $0 $0 $0 $0
Pay Per View Expenses $30 $360 $158 $632 $3,346
Video Game Expenses $0 $0 $0 $0 $0
Miscellaneous Marketing Expenses $770 $9,240 $3,830 $15,320 $8,772
G & A Salary - Supervisor $5,319 $63,828 $9,414 $37,656 $42,579
G & A Salary - CSR $20,044 $240,528 $61,422 $245,688 $238,058
G & A Overtime/Standby $1,144 $13,728 $2,905 $11,620 $8,125
G & A Payroll Taxes $4,411 $52,932 $8,484 $33,936 $28,519
G & A Group Insurance $2,575 $30,900 $8,181 $32,724 $34,834
G & A Other Benefits ($8,930) ($107,160) ($6,790) ($27,160) $2,840
G & A Contract Labor $0 $0 $0 $0 $0
G & A Allocated Personnel Expense ($14,510) ($174,120) ($38,089) ($152,356) ($152,428)
G & A Allocated P/R Expense ($20) ($240) ($6,033) ($24,132) ($37,524)
Allocated Department Expense ($5,723) ($68,676) ($17,100) ($68,400) ($38,441)
Rent - Office $525 $6,300 $1,575 $6,300 $6,300
R & M - Office $755 $9,060 $2,573 $10,292 $11,845
Office Supplies $732 $8,784 $1,764 $7,056 $8,291
Xerox & Printing $0 $0 $1,113 $4,452 $5,224
Vehicle - Gas & Oil $299 $3,588 $498 $1,992 $2,322
T & E System Travel $1,318 $15,816 $2,154 $8,616 $5,803
T & E System Non-Travel $180 $2,160 $269 $1,076 $386
Dues and Subscriptions $21 $252 $81 $324 $1,442
Conventions - Travel $0 $0 $0 $0 $310
Conventions - Non Travel $0 $0 $0 $0 $0
Education $943 $11,316 $1,153 $4,612 $3,691
Recruiting $0 $0 $0 $0 $21
Insurance $18,028 $216,336 $51,355 $205,420 $137,803
Legal $1,050 $12,600 $6,421 $25,684 $15,871
--------------
-------------------------------------------- ADJUSTED
TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING ENDING 12/31/96
12/31/95 12/31/94 12/31/93 ANNUALIZED
-------------------------------------------- --------------
Ad Sales Payroll Taxes $7,577 $7,271 $4,587 $6,420
Ad Sales Group Insurance $5,863 $3,813 $7,225 $6,384
Ad Sales Other Benefits $336 $1,334 $1,824 $0
Ad Sales Alloc. Personnel Benefit $15,788 ($23,115) ($1,733) $11,496
Ad Sales Alloc. P/R Benefit ($666) ($1,626) $552 $11,244
Employee Commissions $44,203 $74,049 $37,482 $22,848
Other Ad Sale Expenses $21,732 $23,572 $16,294 $10,000
Marketing Payroll Taxes $0 $0 $0 $0
Marketing Salary & Benefits $0 $0 $0 $0
Marketing Allocated P/R Benefit $0 $0 $43 $0
Marketing Employee Commissions $314 $1,718 $8,039 $6,312
Marketing Expenses $48,533 $95,148 $44,100 $38,160
Dues and Subscriptions $2,002 $1,071 $4,022 $876
Rebates $0 ($2,316) $0 $0
Pay Per View Expenses $1,594 $1,259 $8,552 $360
Video Game Expenses $0 $0 $0 $0
Miscellaneous Marketing Expenses $7,778 $14,530 $9,203 $9,240
G & A Salary - Supervisor $76,266 $73,332 $70,512 $63,828
G & A Salary - CSR $219,595 $210,635 $219,528 $240,528
G & A Overtime/Standby $4,440 $4,369 $3,662 $13,728
G & A Payroll Taxes $26,888 $25,899 $24,930 $52,932
G & A Group Insurance $24,036 $13,087 $42,772 $30,900
G & A Other Benefits $6,897 ($172) $32,992 $0
G & A Contract Labor $1,538 $644 $0 $0
G & A Allocated Personnel Expense ($166,526) ($166,962) ($164,094) ($174,120)
G & A Allocated P/R Expense ($34,543) ($33,445) ($51,431) ($240)
Allocated Department Expense ($62,558) ($70,956) ($66,737) ($68,676)
Rent - Office $6,300 $6,200 $5,700 $6,300
R & M - Office $9,379 $10,703 $13,365 $9,060
Office Supplies $9,775 $10,288 $7,292 $8,784
Xerox & Printing $4,344 $4,396 $4,273 $0
Vehicle - Gas & Oil $1,613 $1,585 $1,209 $3,588
T & E System Travel $542 $251 $1,490 $15,816
T & E System Non-Travel $984 $951 $672 $2,160
Dues and Subscriptions $1,380 $890 $1,164 $252
Conventions - Travel $13 $650 $484 $0
Conventions - Non Travel $28 $0 $0 $0
Education $3,889 $2,096 $2,613 $11,316
Recruiting $0 $0 $0 $0
Insurance $165,149 $162,277 $175,848 $216,336
Legal $12,263 $12,000 $7,000 $12,600
155
FALCON CLASSIC CABLE INCOME PROPERTIES, L.P.
SYSTEM LOCATION: SOMERSET, KY
-------------------------------------------------------------------------
ONE MONTH ONE MONTH THREE MONTHS THREE MONTHS TWELVE MONTHS
ENDING ENDING 12/31/96 ENDING ENDING 12/31/96 ENDING
12/31/96 ANNUALIZED 12/31/96 ANNUALIZED 12/31/96
-------------------------------------------------------------------------
Audit & Taxes $762 $9,144 $2,285 $9,140 $9,010
Association - Dues $1,162 $13,944 $3,391 $13,564 $13,832
Association - Lobbying $186 $2,232 $651 $2,604 $2,271
Political Contribution $0 $0 $100 $400 $100
Donations/Public Relations $163 $1,956 $1,184 $4,736 $7,848
Customer Billing $7,148 $85,776 $21,250 $85,000 $85,197
Postage & Messengers $7,090 $85,080 $21,110 $84,440 $85,890
Utilities $988 $11,856 $3,375 $13,500 $13,060
Telephone $3,567 $42,804 $10,112 $40,448 $32,119
Tax & Licenses $97 $1,164 $291 $1,164 $1,563
FCC User Fees $886 $10,632 $2,658 $10,632 $10,619
Reregulation Costs $0 $0 $13,232 $52,928 $30,024
CATV Franchise $10,626 $127,512 $39,927 $159,708 $164,256
Copyright Fees $7,722 $92,664 $22,881 $91,524 $98,852
BMI License Fees $0 $0 ($448) ($1,792) $4,526
ASCAP License Fees $1,094 $13,128 $3,284 $13,136 $8,445
Bad Debt Expense $9,255 $111,060 $7,646 $30,584 $51,395
Cap. Labor & OH Other ($1,812) ($21,744) ($4,813) ($19,252) ($10,782)
G & A Miscellaneous Expense $3,287 $39,444 $6,623 $26,492 $10,069
Primary Satellite Fees $81,022 $972,264 $244,728 $978,912 $925,578
Program Guides $331 $3,972 $1,087 $4,348 $10,712
Pay TV Fees $18,758 $225,096 $55,151 $220,604 $251,372
Pay Per View Fees $384 $4,608 $2,067 $8,268 $6,730
Video Game Fees $0 $0 $0 $0 $0
--- --- --- --- --
Total Expenses $267,049 $3,204,588 $788,449 $3,153,796 $3,102,395
Operating Income $406,811 $4,881,732 $1,229,833 $4,919,332 $3,988,470
Operating Margin 60.37% 60.37% 60.93% 60.93% 56.25%
--------------
-------------------------------------------- ADJUSTED
TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS ONE MONTH
ENDING ENDING ENDING ENDING 12/31/96
12/31/95 12/31/94 12/31/93 ANNUALIZED
-------------------------------------------- --------------
Audit & Taxes $25,604 $39,812 $16,246 $9,144
Association - Dues $6,574 $7,318 $7,312 $13,944
Association - Lobbying $1,212 $1,202 $0 $2,232
Political Contribution $0 $0 $0 $0
Donations/Public Relations $6,135 $5,021 $4,256 $1,956
Customer Billing $95,517 $98,893 $88,898 $85,776
Postage & Messengers $83,629 $78,104 $77,033 $85,080
Utilities $12,222 $11,663 $11,281 $11,856
Telephone $27,776 $27,991 $28,860 $42,804
Tax & Licenses $1,437 $270 $753 $1,164
FCC User Fees $8,678 $7,257 $0 $10,632
Reregulation Costs $7,841 $25,519 $13,010 $0
CATV Franchise $179,949 $148,978 $160,945 $127,512
Copyright Fees $78,077 $73,468 $63,629 $92,664
BMI License Fees $0 $0 $0 $0
ASCAP License Fees $0 $0 $0 $13,128
Bad Debt Expense $65,460 $96,890 $69,142 $111,060
Cap. Labor & OH Other ($32,458) ($15,411) ($5,946) $0
G & A Miscellaneous Expense $9,182 $7,050 $7,250 $39,444
Primary Satellite Fees $803,806 $657,702 $649,739 $972,264
Program Guides $20,788 $16,367 $13,018 $3,972
Pay TV Fees $275,154 $234,780 $218,302 $225,096
Pay Per View Fees ($237) $4,149 $3,914 $4,608
Video Game Fees $0 $0 $0 $0
--- --- --- ---
Total Expenses $2,863,054 $2,704,050 $2,677,884 $4,348,000
Operating Income $3,436,148 $3,184,251 $2,957,748 $3,738,320
Operating Margin 54.55% 54.08% 52.48% 46.23%
156
SYSTEM LOCATION: SOMERSET, KY
-------------------------------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
-------------------------------------------------------------------------
REVENUES
Primary - First Outlet $4,327,568 $4,085,262 $3,780,392 $3,827,585 $3,171,423
Primary Commercial $70,104 $73,145 $69,778 $68,505 $67,614
Expanded Tier $0 $0 $0 $0 $0
A-G Tier $84 $83 $60 $23,815 $457,868
A-J Tier $192 $149 $74 $23,544 $815,239
A-L Tier $526,288 $474,908 $412,199 $165,567 $0
Radio Services $68 $102 $98 $0 $0
Pay Cable First Outlet $393,364 $440,217 $466,915 $390,766 $354,268
Pay Cable Additional Outlet $3,468 $4,085 $6,672 $8,484 $7,591
Ala Carte $0 $0 $0 $717,997 $173,276
New Product Tier 1 $1,185,116 $1,005,944 $813,889 $0 $0
Commercial Pay $16,320 $20,604 $32,976 $12,816 $12,567
Pay Per View $14,240 $11,912 $6,818 $7,417 $6,523
Primary Additional Outlet $0 $0 $0 $1,470 $40,225
Remote Control $18,496 $28,564 $44,680 $42,696 $50,444
Converter Rental $95,600 $83,054 $49,650 $48,193 $14,060
Maintenance Contracts $39,836 $41,057 $37,671 $21,269 $0
New Customer Pay Installs $0 $0 $78 $78 $275
New Customer Basic Installs $17,028 $24,787 $33,786 $53,663 $65,766
Installation Materials Charge ($40) $5 $301 $0 $0
Installs - Non New Customers $63,204 $88,319 $92,532 $83,947 $78,466
Guide Revenue $5,052 $3,762 $8 $0 $0
Other - Late Charges $73,300 $70,610 $67,905 $85,715 $73,700
Other - Rent $9,600 $9,600 $8,960 $9,498 $10,407
Other - Franchise Pass Through $24,584 $22,934 $5,519 $0 $0
Other - Miscellaneous $2,640 $905 $33 $382 $1,403
FCC User Fees Pass Through $9,384 $9,413 $8,848 $455 $0
Other - Programmers $655,484 $168,073 $0 $0 $0
QVC Monthly Commission $27,592 $26,495 $25,290 $23,479 $23,297
QVC Carriage Payment $12,412 $12,307 $14,516 $14,516 $14,515
HSN Monthly Commission $10,000 $10,667 $7,489 $0 $0
HSN Carriage Payment $70,992 $28,827 $14,772 $0 $0
Classifed Ads $87,160 $101,632 $91,439 $71,510 $60,097
Ad Insertion Sales $288,020 $198,116 $183,458 $171,423 $127,342
Ad Sales Other $0 $0 $0 $0 $91
Production & Local Origination $69,300 $45,327 $22,396 $13,511 $9,175
-------- -------- -------- -------- -------
Total Revenues $8,116,456 $7,090,865 $6,299,202 $5,888,301 $5,635,632
157
SYSTEM LOCATION: SOMERSET, KY
-------------------------------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
-------------------------------------------------------------------------
EXPENSES
Technical Salary - Supervisor $66,916 $66,916 $64,342 $61,868 $59,488
Technical Salary - Technician $438,856 $428,056 $405,137 $394,220 $395,567
Technical Salary - Dispatcher $0 $0 $0 $0 $0
Technical Salary - Installers $153,076 $148,029 $132,929 $114,762 $124,670
Overtime/Standby $240,880 $158,241 $125,429 $133,982 $101,432
Payroll Taxes $70,188 $66,258 $61,895 $59,987 $55,772
Group Insurance $67,928 $69,287 $53,433 $30,569 $98,650
Other Benefits $15,000 $13,404 $25,668 $37,410 $44,592
Allocated Personnel Expense ($491,592) ($449,977) ($405,626) ($408,422) ($390,803)
Allocated P/R Benefit ($40,232) ($87,450) ($84,926) ($76,166) ($122,091)
Allocated Department Expense $368 $92 $0 $0 ($433)
Rent - Headend $33,600 $34,100 $34,900 $33,600 $33,600
Rent - Poles and Ducts $14,412 $67,017 $78,490 $97,371 $53,318
R & M Plant $16,252 $15,538 $10,113 $5,916 $4,751
R & M Converter $17,404 $18,647 $14,051 $4,852 $1,581
R & M Other $13,416 $6,072 $6,202 $4,084 $2,138
Material and Reconnect $11,612 $9,544 $9,481 $7,208 $4,800
Vehicle - Gas & Oil $30,272 $28,896 $22,128 $22,015 $21,404
Vehicle - Service $10,972 $14,128 $17,710 $16,800 $7,986
Leased Vehicles $0 $0 $0 $0 $13,384
T & E System Travel $0 $0 $58 $0 $150
T & E System Non-Travel $1,932 $578 $0 $63 $78
Dues & Subscriptions $112 $203 $522 $925 $586
Education $0 $409 $132 $497 $506
System Power Costs $73,180 $68,318 $72,792 $77,598 $62,774
Recruiting $0 $0 $0 $0 $0
Loss on Converters $1,800 $1,800 $1,800 $1,800 $1,800
Property Taxes $551,156 $364,690 $264,900 $184,185 $309,246
Uniforms $7,660 $7,304 $6,791 $5,435 $6,621
Small Tool and Safety $0 $800 $400 $156 $169
Capital Labor & OH Construction $0 $0 $0 $0 $0
Capital Labor & OH Customer $0 $0 $0 $0 $0
P&L Salary - Producer Assistant $22,864 $22,738 $22,198 $20,016 $15,600
Payroll Taxes $2,176 $1,899 $1,886 $1,669 $1,227
Group Insurance $1,388 $1,500 $1,240 $1,571 $1,993
Other Benefits $2,656 $1,744 $1,488 $1,512 $1,230
Employee Commissions $0 $0 $2,320 $25 $0
P&L, Other expenses $11,440 $6,113 $568 $0 $0
Ad Sales Salary Supervisor $5,412 $5,412 $5,412 $20,810 $20,290
Ad Sales Payroll Taxes $7,380 $7,630 $7,577 $7,271 $4,587
Ad Sales Group Insurance $6,792 $7,730 $5,863 $3,813 $7,225
Ad Sales Other Benefits $136 $286 $336 $1,334 $1,824
Ad Sales Alloc. Personnel Benefit $12,092 $11,163 $15,788 ($23,115) ($1,733)
Ad Sales Alloc. P/R Benefit ($1,940) ($6,535) ($666) ($1,626) $552
Employee Commissions $21,712 $25,626 $44,203 $74,049 $37,482
Other Ad Sale Expenses $10,000 $13,751 $21,732 $23,572 $16,294
Marketing Payroll Taxes $0 $0 $0 $0 $0
Marketing Salary & Benefits $0 $0 $0 $0 $0
Marketing Allocated P/R Benefit $0 $0 $0 $0 $43
Marketing Employee Commissions $2,104 $978 $314 $1,718 $8,039
Marketing Expenses $126,088 $88,866 $48,533 $95,148 $44,100
Dues and Subscriptions $952 $727 $2,002 $1,071 $4,022
Rebates $0 $0 $0 ($2,316) $0
Pay Per View Expenses $632 $3,346 $1,594 $1,259 $8,552
Video Game Expenses $0 $0 $0 $0 $0
Miscellaneous Marketing Expenses $15,320 $8,772 $7,778 $14,530 $9,203
G&A Salary - Supervisor $37,656 $42,579 $76,266 $73,332 $70,512
G&A Salary - CSR $245,688 $238,058 $219,595 $210,635 $219,528
G&A Overtime/Standby $11,620 $8,125 $4,440 $4,369 $3,662
G&A Payroll Taxes $33,936 $28,519 $26,888 $25,899 $24,930
G&A Group Insurance $32,724 $34,834 $24,036 $13,087 $42,772
G&A Other Benefits $0 $2,840 $6,897 $0 $32,992
G&A Contract Labor $0 $0 $1,538 $644 $0
G&A Allocated Personnel Expense ($152,356) ($152,428) ($166,526) ($166,962) ($164,094)
G&A Allocated P/R Expense ($24,132) ($37,524) ($34,543) ($33,445) ($51,431)
Allocated Department Expense ($68,400) ($38,441) ($62,558) ($70,956) ($66,737)
Rent - Office $6,300 $6,300 $6,300 $6,200 $5,700
R&M - Office $10,292 $11,845 $9,379 $10,703 $13,365
Office Supplies $7,056 $8,291 $9,775 $10,288 $7,292
Xerox & Printing $4,452 $5,224 $4,344 $4,396 $4,273
Vehicle - Gas & Oil $1,992 $2,322 $1,613 $1,585 $1,209
T&E System Travel $8,616 $5,803 $542 $251 $1,490
T&E System Non-Travel $1,076 $386 $984 $951 $672
Dues and Subscriptions $324 $1,442 $1,380 $890 $1,164
Conventions - Travel $0 $310 $13 $650 $484
Conventions - Non Travel $0 $0 $28 $0 $0
Education $4,612 $3,691 $3,889 $2,096 $2,613
Recruiting $0 $21 $0 $0 $0
Insurance $205,420 $137,803 $165,149 $162,277 $175,848
Legal $25,684 $15,871 $12,263 $12,000 $7,000
158
SYSTEM LOCATION: SOMERSET, KY
-------------------------------------------------------------------------
ADJUSTED ADJUSTED ADJUSTED ADJUSTED ADJUSTED
THREE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS TWELVE MONTHS
ENDING 12/31/96 ENDING ENDING ENDING ENDING
ANNUALIZED 12/31/96 12/31/95 12/31/94 12/31/93
-------------------------------------------------------------------------
Audit & Taxes $9,140 $9,010 $25,604 $39,812 $16,246
Association - Dues $13,564 $13,832 $6,574 $7,318 $7,312
Association - Lobbying $2,604 $2,271 $1,212 $1,202 $0
Political Contribution $400 $100 $0 $0 $0
Donations/Public Relations $4,736 $7,848 $6,135 $5,021 $4,256
Customer Billing $85,000 $85,197 $95,517 $98,893 $88,898
Postage & Messengers $84,440 $85,890 $83,629 $78,104 $77,033
Utilities $13,500 $13,060 $12,222 $11,663 $11,281
Telephone $40,448 $32,119 $27,776 $27,991 $28,860
Tax & Licenses $1,164 $1,563 $1,437 $270 $753
FCC User Fees $10,632 $10,619 $8,678 $7,257 $0
Reregulation Costs $52,928 $30,024 $7,841 $25,519 $13,010
CATV Franchise $159,708 $164,256 $179,949 $148,978 $160,945
Copyright Fees $91,524 $98,852 $78,077 $73,468 $63,629
BMI License Fees $0 $4,526 $0 $0 $0
ASCAP License Fees $13,136 $8,445 $0 $0 $0
Bad Debt Expense $30,584 $51,395 $65,460 $96,890 $69,142
Cap. Labor & OH Other $0 $0 $0 $0 $0
G & A Miscellaneous Expense $26,492 $10,069 $9,182 $7,050 $7,250
Primary Satellite Fees $978,912 $925,578 $803,806 $657,702 $649,739
Program Guides $4,348 $10,712 $20,788 $16,367 $13,018
Pay TV Fees $220,604 $251,372 $275,154 $234,780 $218,302
Pay Per View Fees $8,268 $6,730 ($237) $4,149 $3,914
Video Game Fees $0 $0 $0 $0 $0
--- --- --- --- ---
Total Expenses $3,797,064 $3,401,985 $3,129,413 $2,864,350 $2,839,098
Operating Income $4,319,392 $3,688,880 $3,169,789 $3,023,951 $2,796,534
Operating Margin 53.22% 52.02% 50.32% 51.36% 49.62%
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ADDENDUM 4 Demographics
160
SERVICE AREA DEMOGRAPHICS
ANNUAL
1/1/96 1/1/01 CHANGE
------ ------ -------
BURKE COUNTY, NC
POPULATION 81,000 85,500 1.09%
HOUSEHOLDS 31,200 33,200 1.25%
MEDIAN AGE 37.1 N/A
AVERAGE HOUSEHOLD EBI $32,427 $38,191 3.33%
STATE OF NORTH CAROLINA
POPULATION 7,527,800 7,845,900 0.83%
HOUSEHOLDS 2,775,800 3,056,700 1.95%
MEDIAN AGE 33.5 N/A
AVERAGE HOUSEHOLD EBI $36,360 $43,414 3.61%
KERN COUNTY, CALIFORNIA
POPULATION 627,900 674,300 1.44%
HOUSEHOLDS 203,400 218,200 1.41%
MEDIAN AGE 30.9 N/A
AVERAGE HOUSEHOLD EBI $35,099 $38,197 1.71%
STATE OF CALIFORNIA
POPULATION 32,362,300 33,276,700 0.56%
HOUSEHOLDS 10,898,600 11,190,500 0.53%
MEDIAN AGE 32.9 N/A
AVERAGE HOUSEHOLD EBI $43,427 $46,677 1.45%
KENT COUNTY, MARYLAND
POPULATION 18,900 19,400 0.52%
HOUSEHOLDS 7,300 7,800 1.33%
MEDIAN AGE 38.5 N/A
AVERAGE HOUSEHOLD EBI $37,878 $40,407 1.30%
QUEEN ANNE'S COUNTY, MARYLAND
POPULATION 36,700 38,800 1.12%
HOUSEHOLDS 13,700 14,800 1.56%
MEDIAN AGE 37.1 N/A
AVERAGE HOUSEHOLD EBI $43,959 $47,376 1.51%
TALBOT COUNTY, MARYLAND
POPULATION 32,600 34,500 1.14%
HOUSEHOLDS 13,500 14,500 1.44%
MEDIAN AGE 41.1 N/A
AVERAGE HOUSEHOLD EBI $45,806 $54,151 3.40%
161
STATE OF MARYLAND
POPULATION 5,072,900 5,299,500 0.88%
HOUSEHOLDS 1,859,100 1,964,800 1.11%
MEDIAN AGE 35.0 N/A
AVERAGE HOUSEHOLD EBI $46,295 $51,496 2.15%
TOTAL SERVICE AREA -
STATE OF MARYLAND
POPULATION 88,200 92,700 1.00%
HOUSEHOLDS 34,500 37,100 1.46%
DESCHUTES COUNTY, OREGON
POPULATION 95,600 110,900 3.01%
HOUSEHOLDS 37,500 44,000 3.25%
MEDIAN AGE 37.3 N/A
AVERAGE HOUSEHOLD EBI $34,515 $39,764 2.87%
STATE OF OREGON
POPULATION 3,166,800 3,431,000 1.62%
HOUSEHOLDS 1,227,300 1,342,200 1.81%
MEDIAN AGE 38.7 N/A
AVERAGE HOUSEHOLD EBI $25,986 $31,884 4.18%
ADAIR COUNTY, KENTUCKY
POPULATION 16,300 17,300 1.20%
HOUSEHOLDS 6,300 6,800 1.54%
MEDIAN AGE 36.9 N/A
AVERAGE HOUSEHOLD EBI $25,986 $31,884 4.18%
PULASKI COUNTY, KENTUCKY
POPULATION 55,000 59,900 1.72%
HOUSEHOLDS 21,100 23,400 2.09%
MEDIAN AGE 37.0 N/A
AVERAGE HOUSEHOLD EBI $27,746 $34,345 4.36%
LAUREL COUNTY, KENTUCKY
POPULATION 48,600 53,000 1.75%
HOUSEHOLDS 17,600 19,600 2.18%
MEDIAN AGE 34.2 N/A
AVERAGE HOUSEHOLD EBI $27,345 $32,701 3.64%
162
LINCOLN COUNTY, KENTUCKY
POPULATION 21,700 23,200 1.35%
HOUSEHOLDS 8,100 8,600 1.21%
MEDIAN AGE 35.7 N/A
AVERAGE HOUSEHOLD EBI $27,595 $36,183 5.57%
TOTAL SERVICE AREA -
STATE OF KENTUCKY
POPULATION 141,600 153,400 1.61%
HOUSEHOLDS 53,100 58,400 1.92%
STATE OF KENTUCKY
POPULATION 3,876,100 4,020,000 0.73%
HOUSEHOLDS 1,457,000 1,537,200 1.08%
MEDIAN AGE 34.7 N/A
AVERAGE HOUSEHOLD EBI $33,594 $41,428 4.28%
UNITED STATES
POPULATION 264,900,090 276,107,000 0.83%
HOUSEHOLDS 97,647,400 102,813,100 1.04%
MEDIAN AGE 34.8 N/A
AVERAGE HOUSEHOLD EBI $40,598 $47,002 2.97%
TOTAL SERVICE AREA -
ENTIRE SYSTEM
POPULATION 40,924,400 42,239,400 0.63%
HOUSEHOLDS 14,034,100 14,638,100 0.85%