-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WOTa2gNqPDu309v5w6A5khAM89SApyP3pjG6b7ugI6nA4OW0PhcT/oO8OVMi54qc xzbfKm7ywusRsn5u05ZZ6A== 0000950123-99-005353.txt : 19990604 0000950123-99-005353.hdr.sgml : 19990604 ACCESSION NUMBER: 0000950123-99-005353 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990602 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990603 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NTL COMMUNICATIONS CORP CENTRAL INDEX KEY: 0000906347 STANDARD INDUSTRIAL CLASSIFICATION: CABLE & OTHER PAY TELEVISION SERVICES [4841] IRS NUMBER: 521822078 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-22616 FILM NUMBER: 99640009 BUSINESS ADDRESS: STREET 1: 110 E 59TH ST STREET 2: 26TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 2129068440 MAIL ADDRESS: STREET 1: 110 EAST 59TH STREET STREET 2: 26TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 FORMER COMPANY: FORMER CONFORMED NAME: NTL INC /DE/ DATE OF NAME CHANGE: 19970326 FORMER COMPANY: FORMER CONFORMED NAME: INTERNATIONAL CABLETEL INC DATE OF NAME CHANGE: 19930601 8-K 1 NTL COMMUNICATIONS CORP. 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): June 3, 1999 NTL COMMUNICATIONS CORP. (Exact name of Registrant as Specified in Charter) Delaware 0-22616 52-1822078 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 110 East 59th Street, New York, New York 10022 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (212) 906-8440 (Former Name or Former Address, if Changed Since Last Report) 2 ITEM 5. Other Events In conjunction with NTL Communication Corp's and NTL Incorporated's Registration Statement on Form S-3 relating to NTL Communications Corp's 7% Convertable Subordinated Notes due 2008, NTL Communications Corp. is incorporating by reference certain unaudited pro forma financial data. That data is attached hereto as Exhibit 99.1. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (c) Exhibits. Exhibit 99.1 Unaudited Pro Forma Financial Data 2 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NTL COMMUNICATIONS CORP. By: /s/ Richard J. Lubasch Name: Richard J. Lubasch Title: Senior Vice President, General Counsel and Secretary Dated: June 3, 1999 3 4 EXHIBIT INDEX Designation Description 99.1 Unaudited Pro Forma Financial Data 4 EX-99.1 2 UNAUDITED PRO FORMA FINANCIAL DATA 1 EXHIBIT 99.1 NTL INCORPORATED UNAUDITED PRO FORMA FINANCIAL DATA In March 1999, we acquired Diamond Cable Communications plc ("Diamond"), under the terms of the Diamond acquisition agreement in exchange for our common stock. In December 1998, we acquired Eastern Group Telecoms ("EGT") in exchange for cash and our preferred stock. In October 1998, we completed the acquisition of Comcast UK Cable Partners Limited ("Partners") in exchange for our common stock. In September 1998, we completed the acquisition of ComTel Limited and Telecential Communications (collectively "ComTel") in exchange for cash and our preferred stock. The cash portion of the purchase price of Comtel was financed using funds available under a bank credit facility. The amounts borrowed under the credit facility were repaid with most of the proceeds from the issuance of our 11 1/2% notes and our 12 3/8% notes in November 1998. The unaudited pro forma financial data presented herein give effect to the acquisitions of Partners, ComTel and EGT, which were completed in 1998, and give further effect to the subsequent acquisition of Diamond on March 8, 1999. The pro forma financial data is based on the historical financial statements of Partners, ComTel, EGT, Diamond and NTL. The statements of operations data reflects the translation of all Pound Sterling denominated amounts at the average rate for the three months ended March 31, 1999 of $1.6329 = L.1.00 and the average rate for the year ended December 31, 1998 of $1.6571 = L.1.00. The acquisitions have been accounted for in the pro forma financial data using the purchase method of accounting. Accordingly, the assets acquired and liabilities assumed have been recorded at their estimated fair values, which are subject to further adjustment based upon appraisals and other analyses. We do not currently expect future adjustments from these analyses, if any, to be material to the unaudited pro forma financial statements. The pro forma financial data do not give effect to (a) the sale in January 1999 of NTL 5 1/4% preferred stock and warrants to Microsoft for $500 million; (b) the issuance of L.330,000,000 aggregate principal amount at maturity of 9 3/4% Senior Deferred Coupon Notes due 2009 in April 1999 and (c) the acquisition of the Australian broadcast business in April 1999. In addition, no pro form effect has been given to the proposed acquisitions of Cablelink Limited and France Telecom's "1G Networks". The unaudited pro forma condensed combined statements of operations for the year ended December 31, 1998 and for the three months ended March 31, 1999 give effect to the acquisitions as if they had been consummated on January 1, 1998. Partners owned a 27.5% interest in Birmingham Cable Corporation Limited ("Birmingham)and owns a 50% interest in Cable London PLC ("Cable London"). Partners accounts for its equity interests using the equity method. The equity interest in Birmingham was sold by Partners, before its acquisition by the Company, to TeleWest Communications plc ("TeleWest"). The agreement with TeleWest also provides that at any time during the shoot-out period, Partners may give notice to TeleWest of an offer to sell to TeleWest the Cable London equity interest and related assets for the cash sum specified in the offer notice. If Partners fails to give the offer notice prior to the end of the shoot-out period, Partners will be deemed to have delivered an offer notice for a sum equal to L.100 million. TeleWest will have 30 days in which to accept or decline the offer. If TeleWest accepts the offer, Partners will sell to TeleWest the Cable London equity interest and related assets at the sum specified in the offer notice. If TeleWest declines the offer, TeleWest will sell to Partners all of the shares in the capital of Cable London owned by TeleWest at the sum specified in the offer notice. 2 The pro forma financial data do not give effect to the sale of the Cable London equity interest to TeleWest or Partners' purchase of TeleWest's shares in the capital of Cable London, as we are currently unable to determine the probable outcome of the "shoot-out" procedure. The effect of the sale of the Cable London equity interest by Partners would be to eliminate Partners' investment in Cable London and increase cash by the amount of the proceeds. The effect of Partners' purchase of all of TeleWest's shares in the capital of Cable London would be to reduce Partners' cash and increase the amount of Partners' investment in Cable London. The pro forma adjustments are based upon available information and assumptions that we believe are reasonable at the time made. The pro forma financial data do not purport to present the results of operations of NTL had the acquisitions occurred on the date specified, nor are they necessarily indicative of the results of operations that may be achieved in the future. 3 NTL INCORPORATED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS (UNAUDITED) FOR THE YEAR ENDED DECEMBER 31, 1998 (IN THOUSANDS, EXCEPT PER SHARE DATA)
PRO FORMA NTL COMTEL PARTNERS EGT FOR PRIOR DIAMOND (HISTORICAL) (HISTORICAL) (HISTORICAL) (HISTORICAL) ADJUSTMENT ACQUISITIONS (HISTORICAL) ------------ ------------ ------------ ------------ ---------- ------------ ------------ REVENUES..................... $ 747,015 $ 97,222 $105,348 $17,110 $ (789)(C) $ 965,906 $ 147,078 COSTS AND EXPENSES Operating expenses........... 372,134 62,393 33,965 7,893 -- 476,385 47,088 Selling, general and administrative expenses..... 299,494 32,285 48,448 -- -- 380,227 61,573 Franchise fees............... 25,036 -- -- -- -- 25,036 -- Corporate expenses........... 17,048 -- 3,977 -- -- 21,025 -- Non-recurring charges........ (4,194) -- -- -- -- (4,194) -- Depreciation and amortization................ 266,112 41,035 37,202 3,157 29,229(B) 376,735 71,650 --------- -------- -------- ------- -------- ---------- --------- 975,630 135,713 123,592 11,050 29,229 1,275,214 180,311 --------- -------- -------- ------- -------- ---------- --------- Operating loss............... (228,615) (38,491) (18,244) 6,060 (30,018) (309,308) (33,233) OTHER INCOME (EXPENSE) Interest and other income.... 46,024 476 14,983 -- -- 61,483 21,681 Interest expense............. (328,815) (7,459) (49,477) -- (62,417)(E) (448,168) (140,234) Other........................ 4,152 -- (3,326) -- 11,574 (D) 12,400 12,553 --------- -------- -------- ------- -------- ---------- --------- Loss before income taxes..... (507,254) (45,474) (56,064) 6,060 (80,861) (683,593) (139,233) Income tax benefit........... 3,327 -- -- -- 3,327 -- --------- -------- -------- ------- -------- ---------- --------- Loss before extraordinary item........................ (503,927) (45,474) (56,064) 6,060 (80,861) (680,266) (139,233) Loss from early extinguishment of debt...... (30,689) -- -- -- -- (30,689) -- --------- -------- -------- ------- -------- ---------- --------- Net loss..................... (534,616) (45,474) (56,064) 6,060 (80,861) (710,955) (139,233) Preferred stock dividends.... (18,761) -- -- -- (14,092)(F) (32,853) -- --------- -------- -------- ------- -------- ---------- --------- Net loss available to common shareholders................ $(553,377) $(45,474) $(56,064) $ 6,060 $(94,953) $ (743,808) $(139,233) ========= ======== ======== ======= ======== ========== ========= Net loss per common share -- basic and fully diluted..... $ (13.43) $ (13.00) ========= ========== Weighted average shares outstanding................. 41,202 16,004 57,206 ========= ======== ========== ADJUSTMENTS PRO FORMA ----------- ---------- REVENUES..................... $ -- $1,112,984 COSTS AND EXPENSES Operating expenses........... -- 523,473 Selling, general and administrative expenses..... -- 441,800 Franchise fees............... -- 25,036 Corporate expenses........... -- 21,025 Non-recurring charges........ -- (4,194) Depreciation and amortization................ 135,347(B) 583,732 --------- ----------- 135,347 1,590,872 --------- ----------- Operating loss............... (135,347) (477,888) OTHER INCOME (EXPENSE) Interest and other income.... -- 83,164 Interest expense............. -- (588,402) Other........................ -- 24,953 --------- ----------- Loss before income taxes..... (135,347) (958,173) Income tax benefit........... -- 3,327 ---------- ----------- Loss before extraordinary item........................ (135,347) (954,846) Loss from early extinguishment of debt...... -- (30,689) --------- ----------- Net loss..................... (135,347) (985,535) Preferred stock dividends.... -- (32,853) --------- ----------- Net loss available to common shareholders................ $(135,347) $(1,018,388) ========= =========== Net loss per common share -- basic and fully diluted..... $ (14.57) =========== Weighted average shares outstanding................. 12,705(A) 69,911 ========= ===========
4 NTL INCORPORATED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 1999 (IN THOUSANDS,EXCEPT PER SHARE DATA)
NTL DIAMOND* (HISTORICAL) (HISTORICAL) ADJUSTMENTS PRO FORMA ------------ ------------ ----------- --------- REVENUES................................. $ 313,381 $ 28,798 $ -- $ 342,179 COSTS AND EXPENSES Operating expenses....................... 161,544 10,046 171,590 Selling, general and administrative expenses............................... 119,270 11,924 131,194 Franchise fees........................... 6,848 -- 6,848 Corporate expenses....................... 5,252 -- 5,252 Merger Costs ............................ -- 13,934 (13,934) -- Depreciation and amortization............ 141,734 15,277 24,319(B) 181,330 --------- -------- -------- --------- 434,648 51,181 (10,385) 496,214 --------- -------- -------- --------- Operating loss........................... (121,267) (22,383) (10,385) (154,035) OTHER INCOME (EXPENSE) Interest and other income................ 11,013 2,144 13,157 Interest expense......................... (130,823) (25,561) -- (156,384) Other.................................... 10,658 (40,572) (29,914) --------- -------- -------- --------- Loss before income taxes................. (230,419) (86,372) (10,385) (327,176) Income tax benefit....................... -- -- -- -- --------- -------- -------- --------- Net Loss................................. (230,419) (86,372) (10,385) (327,176) Preferred stock dividends................ (13,092) -- -- (13,092) --------- -------- -------- --------- Net loss available to common stock....... $(243,511) $(86,372) $(10,385) $(340,268) ========= ======== ======== ========= Net loss per common stock -- basic and fully diluted.......................... $ (3.82) $ (4.64) ========= ========= Weighted average shares outstanding...... 63,784 9,503 73,287 ========= =========
- -------------- * For the period from January 1, 1999 to date of acquisition (March 8, 1999). 5 NTL INCORPORATED PRO FORMA ADJUSTMENTS (IN THOUSANDS)
DIAMOND ---------- A PURCHASE PRICE AND ALLOCATION PURCHASE PRICE NTL Shares issued........................................... 12,750 NTL stock price (prior to closing).......................... $ 76.19 ---------- Subtotal.................................................... 971,452 Fees and other costs........................................ 8,430 ---------- Purchase price.............................................. 979,882 Net tangible liabilities at date of acquisition............. 370,454 ---------- Excess of Purchase Price over net tangible assets acquired.................................................. $1,350,336 ========== ALLOCATED TO Fixed assets................................................ $ 60,077 Customer Lists.............................................. 78,511 LAC......................................................... 84,875 Goodwill.................................................... 1,126,873 ---------- $1,350,336 ==========
PRIOR ACQUISITIONS DIAMOND ------------ ------- B DEPRECIATION AND AMORTIZATION For the year ended December 31, 1998: Depreciation of fixed asset allocation (over 15 years).... $ (126) $ 4,005 Amortization of intangibles (over 2-15 years)............. 72,145 139,327 Historical amortization of intangibles.................... (42,790) (7,985) -------- -------- $ 29,229 $135,347 ======== ========
For the three months ended March 31, 1999: Depreciation of fixed asset allocation (over 15 years).... $ 735 Amortization of intangibles (over 2-15 years)............. 25,575 Historical amortization of intangibles.................... (1,991) ------- $24,319 =======
Year Ended December 31, 1998 ----------------- C CONSULTING REVENUE Partners' consulting fee income earned under consulting agreement with Birmingham which ceased upon the sale of Birmingham............................................... $ 789 ======= D EQUITY IN NET LOSS Partner's equity in the net loss of Birmingham that will no longer be recorded after the sale of Birmingham.......... $11,574 =======
6
Year Ended December 31, 1998 ----------------- E INTEREST EXPENSE Interest on ComTel debt not assumed......................... $(7,431) Interest on the borrowings utilized to acquire ComTel(1) For the year ended December 31, 1998...................... 77,567 Amortization of fees on borrowings recorded as deferred financing costs........................................... 2,015 Historical interest expense on Partners' Credit Facility(2). (9,734) ------- Net Statement of Operations Impact.......................... $62,417 ======= F PREFERRED STOCK DIVIDEND Dividends at 9.9% on the preferred stock issued in the ComTel and EGT acquisitions............................... $14,092 =======
- --------------- (1) On June 16, 1998, NTL agreed to acquire substantially all of the operations of ComTel in a two-part transaction in exchange for approximately L.550 million. A portion of the purchase price (L.475 million) was financed using funds available under our credit facility. The credit facility bore interest at LIBOR plus 3% per annum increasing by 0.25% per annum each month beginning three months after the first drawdown to a maximum of 4% per annum. In November 1998, the credit facility was repaid using most of the proceeds from the issuance of our 11 1/2% notes and the 12 3/8% notes. (2) This facility was repaid by Partners with the proceeds from the sale of the Birmingham Cable Equity Interest. -----END PRIVACY-ENHANCED MESSAGE-----