<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[x] Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1995
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
Commission File Number: 0-11911
CABLE TV FUND 11-B, LTD.
Exact name of registrant as specified in charter
Colorado 84-0908730
State of organization I.R.S. employer I.D. #
9697 East Mineral Avenue, P.O. Box 3309, Englewood, Colorado 80155-3309
Address of principal executive office
(303) 792-3111
Registrant's telephone number
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No _____
<PAGE> 2
CABLE TV FUND 11-B, LTD.
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
ASSETS 1995 1994
------ ------------ ------------
<S> <C> <C>
CASH $ 222,702 $ 139,532
TRADE RECEIVABLES, less allowance for doubtful
receivables of $69,553 and $72,936 at
June 30, 1995 and December 31, 1994, respectively 391,586 472,417
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 43,221,282 40,659,024
Less- accumulated depreciation (17,802,177) (16,361,119)
------------ ------------
25,419,105 24,297,905
Investment in cable television joint venture 561,556 550,483
------------ ------------
Total investment in cable television properties 25,980,661 24,848,388
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES 1,030,006 1,054,358
------------ ------------
Total assets $ 27,624,955 $ 26,514,695
============ ============
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
2
<PAGE> 3
CABLE TV FUND 11-B, LTD.
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
LIABILITIES AND PARTNERS' CAPITAL 1995 1994
--------------------------------- ------------ ------------
<S> <C> <C>
LIABILITIES:
Debt $ 23,728,157 $ 20,790,529
Accounts payable-
Trade 104,773 368,624
General Partner 109,264 1,305,421
Accrued liabilities 754,725 1,084,907
Subscriber prepayments 50,151 50,293
------------ ------------
Total liabilities 24,747,070 23,599,774
------------ ------------
PARTNERS' CAPITAL:
General Partner-
Contributed capital 1,000 1,000
Accumulated earnings 53,440 53,810
------------ ------------
54,440 54,810
------------ ------------
Limited Partners-
Net contributed capital
(38,026 units outstanding at June 30, 1995
and December 31, 1994) 15,661,049 15,661,049
Distributions (19,013,121) (19,013,121)
Accumulated earnings 6,175,517 6,212,183
------------ ------------
2,823,445 2,860,111
------------ ------------
Total liabilities and partners' capital $ 27,624,955 $ 26,514,695
============ ============
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
3
<PAGE> 4
CABLE TV FUND 11-B, LTD.
(A Limited Partnership)
UNAUDITED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Three Months Ended For the Six Months Ended
June 30, June 30,
--------------------------- --------------------------
1995 1994 1995 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUES $3,597,655 $3,139,034 $6,975,702 $6,229,515
COSTS AND EXPENSES:
Operating expenses 1,829,620 1,672,049 3,887,472 3,608,571
Management fees and
allocated overhead
from General Partner 417,128 401,690 852,826 799,801
Depreciation and
amortization 733,123 587,558 1,465,008 1,185,650
---------- ---------- ---------- ----------
OPERATING INCOME 617,784 477,737 770,396 635,493
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE):
Interest expense (479,421) (230,085) (887,699) (438,582)
Other, net 62,420 (22,231) 69,194 (14,299)
---------- ---------- ---------- ----------
Total other income
(expense) (417,001) (252,316) (818,505) (452,881)
---------- ---------- ----------- ----------
INCOME (LOSS) BEFORE EQUITY
IN NET INCOME OF CABLE
TELEVISION JOINT VENTURE 200,783 225,421 (48,109) 182,612
EQUITY IN NET INCOME OF
CABLE TELEVISION JOINT
VENTURE 7,457 7,112 11,073 14,961
---------- ---------- ---------- ----------
NET INCOME (LOSS) $ 208,240 $ 232,533 $ (37,036) $ 197,573
========== ========== =========== ==========
ALLOCATION OF NET
INCOME (LOSS):
General Partner $ 2,083 $ 2,326 $ (370) $ 1,976
========== ========== =========== ==========
Limited Partners $ 206,157 $ 230,207 $ (36,666) $ 195,597
========== ========== =========== ==========
NET INCOME (LOSS) PER LIMITED
PARTNERSHIP UNIT $ 5.43 $ 6.05 $ (.96) $ 5.14
========== ========== =========== ==========
WEIGHTED AVERAGE NUMBER
OF LIMITED PARTNERSHIP
UNITS OUTSTANDING 38,026 38,026 38,026 38,026
========== ========== =========== ==========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
4
<PAGE> 5
CABLE TV FUND 11-B, LTD.
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Six Months Ended
June 30,
--------------------------------
1995 1994
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (37,036) $ 197,573
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 1,465,008 1,185,650
Equity in net income of cable television joint
venture (11,073) (14,961)
Decrease in trade receivables 80,831 9,136
Decrease (increase) in deposits, prepaid expenses and
deferred charges 402 (536,000)
Decrease in trade accounts payable, accrued liabilities
and subscriber prepayments (594,175) (404,770)
Decrease in amount due General Partner (1,196,157) (42,288)
----------- -----------
Net cash provided by operating activities (292,200) 394,340
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (2,562,258) (2,391,476)
----------- -----------
Net cash used in investing activities (2,562,258) (2,391,476)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings 3,300,000 1,000,000
Repayment of debt (362,372) (52,318)
----------- -----------
Net cash provided by financing activities 2,937,628 947,682
Increase (decrease) in cash 83,170 (1,049,454)
Cash, beginning of period 139,532 1,171,764
----------- -----------
Cash, end of period $ 222,702 $ 122,310
=========== ===========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 968,126 $ 404,643
=========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
5
<PAGE> 6
CABLE TV FUND 11-B, LTD.
(A Limited Partnership)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(1) This Form 10-Q is being filed in conformity with the SEC requirements
for unaudited financial statements and does not contain all of the necessary
footnote disclosures required for a fair presentation of the Balance Sheets and
Statements of Operations and Cash Flows in conformity with generally accepted
accounting principles. However, in the opinion of management, this data
includes all adjustments, consisting only of normal recurring accruals,
necessary to present fairly the financial position of Cable TV Fund 11-B, Ltd.
(the "Partnership") at June 30, 1995 and December 31, 1994 and its Statements
of Operations for the three and six month periods ended June 30, 1995 and 1994,
and its Statements of Cash Flows for the six month periods ended June 30, 1995
and 1994. Results of operations for these periods are not necessarily
indicative of results to be expected for the full year.
(2) Jones Intercable, Inc. (the "General Partner"), a publicly held
Colorado corporation, manages the cable television system serving areas in and
around Lancaster, New York (the "New York Systems") owned directly by the
Partnership and the Manitowoc, Wisconsin cable television system (the
"Manitowoc System") owned by Cable TV Joint Fund 11 ("the Venture"), in which
the Partnership owns an approximate 8 percent interest, and receives a fee for
its services equal to 5 percent of the gross revenues of the Partnership and
the Venture, excluding revenues from the sale of cable television systems or
franchises. Management fees for the three and six month periods ended June
30, 1995 (excluding Fund 11-B's approximate 8 percent interest in the Venture)
were $179,883 and $348,785, respectively, as compared to $156,952 and
$311,476, respectively, for the similar 1994 periods.
The Partnership and the Venture reimburse the General Partner for
certain allocated overhead and administrative expenses. These expenses
represent the salaries and related benefits paid for corporate personnel, rent,
data processing services and other corporate facilities costs. Such personnel
provide engineering, marketing, administrative, accounting, legal and investor
relations services to the Partnership and the Venture. Allocations of
personnel costs are primarily based upon actual time spent by employees of the
General Partner with respect to each partnership managed. Remaining expenses
are allocated based on the pro rata relationship of the Partnership's revenues
to the total revenues of all systems owned or managed by the General Partner
and certain of its subsidiaries. Systems owned by the General Partner and all
other systems owned by partnerships for which Jones Intercable, Inc. is the
general partner are also allocated a proportionate share of these expenses.
The General Partner believes that the methodology used in allocating overhead
and administrative expenses is reasonable. Reimbursements by the Partnership
to the General Partner for allocated overhead and administrative expenses for
the three and six month periods ending June 30, 1995 (excluding Fund 11-B's
approximate 8 percent interest in the Venture) were $237,245 and $504,041,
respectively, as compared to $244,738 and $488,325, respectively, for the
similar 1994 periods.
(3) The Manitowoc System was submitted for public bid in the second
quarter of 1995. The bidding closed on July 7, 1995, with the General Partner
tendering the only bid. The price bid by the General Partner was $15,735,667,
which reflects the average of three separate, independent appraisals of the
fair market value of the Manitowoc System. The General Partner's bid for the
Manitowoc System has been accepted, and a purchase and sale agreement is being
negotiated. Closing of the sale is subject to (i) the negotiation of a
definitive purchase and sale agreement, (ii) approval by the holders of a
majority of the limited partnership interests in each of the four partnerships
that comprise the Venture in votes to be conducted in the autumn of 1995 and
(iii) the successful renewal and transfer of the system's franchise.
The franchise renewal negotiations are continuing, and the General
Partner expects that negotiations will be completed in 1995. The city has
agreed that the term of the renewal franchise will be 12 years and that the
applicable franchise fee will be 5 percent. The Venture paid the city
$1,850,000, which will be returned to the Venture, with interest, in the event
that the city does not renew the franchise. If the franchise is renewed, the
$1,850,000 will be accounted for as franchise costs.
6
<PAGE> 7
(4) Financial information regarding the Venture is presented below.
UNAUDITED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
ASSETS 1995 1994
------ ------------- -------------
<S> <C> <C>
Cash and accounts receivable $ 2,578,004 $ 2,521,713
Investment in cable television properties 2,612,053 2,724,042
Other assets 1,901,490 1,853,355
------------- -------------
Total assets $ 7,091,547 $ 7,099,110
============= =============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
Debt $ 15,823 $ 26,385
Payables and accrued liabilities 335,548 474,880
Partners' contributed capital 45,000,000 45,000,000
Distributions (118,914,493) (118,914,493)
Accumulated earnings 80,654,669 80,512,338
------------- -------------
Total liabilities and partners' capital $ 7,091,547 $ 7,099,110
============= =============
</TABLE>
7
<PAGE> 8
UNAUDITED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------------- -------------------------------
1995 1994 1995 1994
---------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
Revenues $ 900,622 $ 823,499 $ 1,754,350 $ 1,634,657
Operating expenses (590,962) (501,203) (1,174,698) (982,690)
Management fees and allocated overhead
from Jones Intercable, Inc. (107,805) (107,325) (224,127) (216,930)
Depreciation and amortization (139,564) (129,566) (279,129) (260,056)
--------- --------- ----------- -----------
Operating income 62,291 85,405 76,396 174,981
Interest expense (2,417) (6,169) (8,701) (10,466)
Interest income 35,775 20,087 73,821 35,562
Other, net 208 (7,909) 815 (7,776)
--------- --------- ----------- -----------
Net income $ 95,857 $ 91,414 $ 142,331 $ 192,301
========= ========= ============ ===========
</TABLE>
Management fees paid to Jones Intercable, Inc. by the Venture totaled
$45,032 and $87,718, respectively, for the three and six months ended June 30,
1995 and $41,175 and $81,733, respectively, for the three and six months ended
June 30, 1994. Reimbursements for overhead and administrative expenses paid to
Jones Intercable, Inc. by the Venture totaled $62,773 and $136,409 for the
three and six month periods ended June 30, 1995, respectively, and $66,150 and
$135,197 for the three and six month periods ended June 30, 1994, respectively.
Management fees paid by the Venture and attributable to the
Partnership totaled $3,503 and $3,203, respectively, for the three month
periods and $6,824 and $6,358, respectively, for the six month periods.
Reimbursements for overhead and administrative expense paid by the Venture and
attributable to the Partnership's interest totaled $4,884 and $5,147,
respectively, for the three month periods and $10,613 and $10,518,
respectively, for the six month periods.
5) Certain prior year amounts have been reclassified to conform to the
1995 presentation.
8
<PAGE> 9
CABLE TV FUND 11-B, LTD.
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FINANCIAL CONDITION
During the first six months of 1995, the Partnership expended
approximately $2,562,000 on capital improvements. The continuation of the
rebuild and upgrade of the New York Systems accounted for approximately 48
percent of the capital expenditures. Converters accounted for approximately 13
percent of the capital expenditures. Plant extensions and service drops to
subscriber homes accounted for approximately 11 percent of the capital
expenditures. The remainder of the capital expenditures were for various other
enhancements in the New York Systems. Funding for these expenditures was
provided primarily by cash generated from operations and borrowings under the
Partnership's credit facility. Budgeted capital additions for the remainder of
1995 are approximately $1,234,000. The rebuild and upgrade of the New York
Systems will account for approximately 30 percent of the expected capital
expenditures. Plant extensions and service drops to subscriber homes will
account for approximately 62 percent of the expected capital expenditures. The
remainder of the capital expenditures will be used for various other
enhancements in the New York Systems. Funding for these expenditures is
expected to be provided from cash generated from operations and available
borrowings from the Partnership's credit facility.
On February 28, 1995, the Partnership entered into a $25,000,000
revolving credit and term loan agreement. The revolving credit period expires
December 31, 1996, at which time the outstanding balance converts to a term
loan payable in 24 consecutive quarterly installments commencing March 31,
1997. Proceeds from this credit facility were used to repay amounts
outstanding under the Partnership's previous credit facility, repay amounts due
the General Partner and fund capital expenditures. As of June 30, 1995,
$23,000,000 was outstanding under this agreement, leaving $2,000,000 available
for future needs of the Partnership. Interest payable on outstanding amounts
is at the Partnership's option of the base rate plus 1/2 percent or the London
InterBank Offered Rate plus 1-3/8 percent. The Partnership paid a loan
facility fee of $75,000 upon closing of the credit facility renegotiations.
The effective interest rates on outstanding obligations as of June 30, 1995 and
1994 were 7.50 percent and 5.63 percent, respectively. This loan is expected
to be paid in full upon closing of the sales of the New York Systems and the
Manitowac System as discussed below.
The General Partner is negotiating a purchase and sale agreement with
the highest bidder for the New York Systems. The successful bidder is an
unaffiliated company. After a sale agreement is finalized, the General Partner
will prepare proxy materials in conjunction with a vote of the limited partners
to approve the transaction. The General Partner expects that a vote of the
limited partners will occur in the autumn of 1995 and the sale will not close
unless it is approved by the holders of a majority of the Partnership's limited
partnership interests. There is no certainty that a purchase and sale
agreement will be negotiated.
The Partnership has sufficient sources of capital available to meet
its presently anticipated needs from its ability to generate cash from
operations and from borrowings available under its credit facility.
In addition to the systems owned by it directly, the Partnership owns
an approximate 8 percent interest in Cable TV Joint Fund 11 (the "Venture").
The investment in this cable television joint venture is accounted for under
the equity method. When compared to the December 31, 1994 balance, this
investment increased by $11,073, from $550,483 at December 31, 1994 to $561,556
at June 30, 1995. This increase represents the Partnership's proportionate
share of income generated by the Venture during the first six months of 1995.
The Manitowoc System was submitted for public bid in the second
quarter of 1995. The bidding closed on July 7, 1995, with the General Partner
tendering the only bid. The price bid by the General Partner was $15,735,667,
which reflects the average of three separate, independent appraisals of the
fair market value of the Manitowoc System. The General Partner's bid for the
Manitowoc System has been accepted, and a purchase and sale agreement is being
negotiated. Closing of the sale is subject to (i) the negotiation of a
definitive purchase and sale agreement, (ii) approval by the holders of a
majority of the limited partnership interests in each of the four partnerships
that comprise the Venture in votes to be conducted in the autumn of 1995 and
(iii) the successful renewal and transfer of the system's franchise.
9
<PAGE> 10
The franchise renewal negotiations are continuing, and the General
Partner expects that negotiations will be completed in 1995. The city has
agreed that the term of the renewal franchise will be 12 years and that the
applicable franchise fee will be 5 percent. The Venture paid the city
$1,850,000, which will be returned to the Venture, with interest, in the event
that the city does not renew the franchise. If the franchise is renewed, the
$1,850,000 will be accounted for as franchise costs.
For the six months ended June 30, 1995, the Venture generated
operating income before depreciation and amortization of $355,525 and incurred
interest expense totaling $8,701, leaving $346,824 to fund capital expenditures
and non-operating costs. During the first six months of 1995, the Venture
expended approximately $140,000 for capital expenditures in the Manitowoc
System. These capital additions were used for various enhancements to maintain
the value of the system. These expenditures were funded from cash generated
from operations. Anticipated capital expenditures for the remainder of 1995
are approximately $133,000. These expenditures will be for various
enhancements to maintain the value of the system. It is expected that these
capital expenditures will be funded from cash on hand and cash generated from
operations.
The Venture had no bank debt outstanding at June 30, 1995.
The Venture has sufficient liquidity and capital resources, including
cash on hand and its ability to generate cash from operations, to meet its
anticipated future needs.
RESULTS OF OPERATIONS
The Partnership
Revenues of the New York Systems totaled $3,597,655 for the three
month period ended June 30, 1995 as compared to $3,139,034 for the comparable
1994 period, an increase of $458,621, or approximately 15 percent. Revenues
totaled $6,975,702 for the six months ended June 30, 1995 as compared to
$6,229,515 for the comparable 1994 period, an increase of $746,187, or
approximately 12 percent. Basic rate increases resulted in approximately 59
percent and 61 percent, respectively, of the increase in revenues for the three
and six month periods ended June 30, 1995. An increase in the subscriber base
in the New York Systems accounted for approximately 28 percent and 33 percent,
respectively, of the increase in revenues for the three and six month periods
ended June 30, 1995. The number of basic subscribers increased 1,659, or
approximately 5 percent, to 38,264 at June 30, 1995 from 36,605 at June 30,
1994. The number of premium subscribers increased 805, or approximately 4
percent, to 21,859 at June 30, 1995 from 21,054 at June 30, 1994. No other
factors individually were significant to the increase in revenues.
Operating expenses consist primarily of costs associated with the
administration of the Partnership's cable television systems. The principal
cost components are salaries paid to system personnel, programming expenses,
professional fees, subscriber billing costs, rent for leased facilities, cable
system maintenance expenses and consumer marketing expenses.
Operating expenses totaled $1,829,620 for the three month period ended
June 30, 1995 as compared to $1,672,049 for the comparable 1994 period, an
increase of $157,571, or approximately 9 percent. Operating expenses totaled
$3,887,472 for the six month period ended June 30, 1995 as compared to
$3,608,571 for the comparable 1994 period, an increase of $278,901, or
approximately 8 percent. Operating expenses represented approximately 51
percent and 56 percent, respectively, of revenues for the three and six month
periods of 1995 compared to approximately 53 percent and 58 percent,
respectively, of revenues for the comparable 1994 periods. The increases in
operating expenses for the three and six month periods were due to increases in
programming fees and system maintenance costs. These increases were offset, in
part, by decreases in personnel related expense and marketing related costs.
No other factors individually were significant to the increase in the
Partnership's operating expenses.
Management fees and allocated overhead from the General Partner
totaled $417,128 for the three month period ended June 30, 1995 as compared to
$401,690 for the comparable 1994 period, an increase of $15,438, or
approximately 4 percent. The increase for the three month period was due to
the increase in revenues, upon which such fees and allocations are based.
Management fees and allocated overhead from the General Partner totaled
$852,826 for the six months ended June 30, 1995 as compared to $799,801 for the
comparable 1994 period, an increase of $53,025, or
10
<PAGE> 11
approximately 7 percent. The increase for the six month period was due to the
increase in revenues, upon which such fees and allocations are based.
Depreciation and amortization expense totaled $733,123 for the three
month period ended June 30, 1995 as compared to $587,558 for the comparable
1994 period, an increase of $145,565, or approximately 25 percent.
Depreciation and amortization expense totaled $1,465,008 for the six months
ended June 30, 1995 as compared to $1,185,650 for the comparable 1994 period,
an increase of $279,358, or approximately 24 percent. The increases for the
three and six month periods were due to capital additions in 1994.
Operating income totaled $617,784 for the three month period ended June
30, 1995 as compared to $477,737 for the comparable 1994 period, an increase of
$140,047, or approximately 29 percent. Operating income totaled $770,396 for
the six months ended June 30, 1995 as compared to $635,493 for the comparable
1994 period, an increase of $134,903, or approximately 21 percent. The
increases for the three and six month periods were due to the increases in
revenues exceeding the increases in operating expenses, management fees and
allocated overhead from the General Partner and depreciation and amortization
expense.
Operating income before depreciation and amortization totaled
$1,350,907 for the three month period ended June 30, 1995 as compared to
$1,065,295 for the comparable 1994 period, an increase of $285,612, or
approximately 27 percent. Operating income before depreciation and
amortization totaled $2,235,404 for the six months ended June 30, 1995 as
compared to $1,821,143 for comparable 1994 period, an increase of $414,261, or
approximately 23 percent. The increases were due to the increase in revenues
exceeding the increases in operating expenses and management fees and allocated
overhead from the General Partner.
Interest expense totaled $479,421 for the three month period ended
June 30, 1995 as compared to $230,085 for the comparable 1994 period, an
increase of $249,336. Interest expense totaled $887,699 for the six months
ended June 30, 1995 as compared to $438,582 for the comparable 1994 period, an
increase of $449,117. These increases were due to higher balances on interest
bearing obligations and higher effective interest rates. Income before equity
in net income of cable television joint venture totaled $200,783 for the three
month period ended June 30, 1995 as compared to $225,421 for the comparable
1994 period, a decrease of $24,638, or approximately 11 percent. The
Partnership recognized net loss before equity in net income of cable television
joint venture of $48,109 for the six month periods ended June 30, 1995 as
compared to income before equity in net income of cable television joint
venture of $182,612 for the comparable 1994 period, a decrease of $230,721.
The decreases for the three and six month periods were due primarily to the
increases in interest expense.
The Venture-
In addition to the New York Systems owned by it directly, the Partnership
owns an approximate 8 percent interest in the Venture. Revenues of the Venture
totaled $900,622 for the three month period ended June 30, 1995 as compared to
$823,499 for the comparable 1994 period, an increase of $77,123, or
approximately 9 percent. Revenues of the Venture totaled $1,754,350 for the
six months ended June 30, 1995 as compared to $1,634,657 for the comparable
1994 period, an increase of $119,693, or approximately 7 percent. An increase
in the subscriber base primarily accounted for the increase in revenues for the
three and six month periods ended June 30, 1995. The number of basic
subscribers increased 1,000, or approximately 10 percent, from 10,123 at June
30, 1994 to 11,123 at June 30, 1995. The number of premium subscribers
increased 1,734, or approximately 31 percent, from 5,537 at June 30, 1994 to
7,271 at June 30, 1995. No other individual factor contributed significantly
to the increase in revenues.
Operating expenses consist primarily of costs associated with the
administration of the Partnership's cable television systems. The principal
cost components are salaries paid to system personnel, programming expenses,
professional fees, subscriber billing costs, rent for leased facilities, cable
system maintenance expenses and consumer marketing expenses.
Operating expenses in the Manitowoc system totaled $590,962 for the three
month period ended June 30, 1995 as compared to $501,203 for the comparable
1994 period, an increase of $89,759, or approximately 18 percent. Operating
expenses in the Manitowoc system totaled $1,174,698 for the six months ended
June 30, 1995 as compared to $982,690 for the comparable 1994 period, an
increase of $192,008, or approximately 20 percent. Operating expenses
represented 66 percent and 67 percent, respectively, of revenues for the three
and six months periods of 1995 and 61 percent and 60 percent, respectively, for
the comparable 1994 periods. The increases in operating expenses for the three
and six month
11
<PAGE> 12
periods were due to increases in programming fees, which were due, in part, to
the increase in the subscriber base and increases in property taxes. No other
individual factor significantly affected the increases in operating expenses.
Management fees and allocated overhead from the General Partner totaled
$107,805 for the three month period ended June 30, 1995 as compared to $107,325
for the comparable 1994 period, an increase of $480, or less than 1 percent.
Management fees and allocated overhead from the General Partner totaled
$224,127 for the six months ended June 30, 1995 as compared to $216,930 for the
comparable 1994 period, an increase of $7,197, or approximately 3 percent. The
increases for the three and six month periods were due to the increase in
revenues, upon which such fees and allocations are based.
Depreciation and amortization expense totaled $139,564 for the three
month period ended June 30, 1995 as compared to $129,566 for the comparable
1994 period, an increase of $9,998, or approximately 8 percent. Depreciation
and amortization expense totaled $279,129 for the six months ended June 30,
1995 as compared to $260,056 for the comparable 1994 period, an increase of
$19,073, or approximately 7 percent. The increases for the three and six month
periods were due to capital additions in 1994.
Operating income totaled $62,291 for the three month period ended June
30, 1995 as compared to $85,405 for the comparable 1994 period, a decrease of
$23,114, or approximately 27 percent. Operating income totaled $76,396 for the
six months ended June 30, 1995 as compared to $174,981 for the comparable 1994
period, a decrease of $98,585, or approximately 56 percent. The decreases for
the three and six month periods were due to the increases in operating
expenses, management fees and allocated overhead from the General Partner and
depreciation and amortization expense exceeding the increases in revenues.
Operating income before depreciation and amortization totaled $201,855 for the
three month period ended June 30, 1995 as compared to $214,971 for the
comparable 1994 period, a decrease of $13,116, or approximately 6 percent.
Operating income before depreciation and amortization totaled $355,525 for the
six months ended June 30, 1995 as compared to $435,037 for the comparable 1994
period, a decrease of $79,512, or approximately 18 percent. The decreases for
both periods were due to the increases in operating expenses and management
fees and allocated overhead from the General Partner exceeding the increase in
revenues.
Interest expense for the Venture totaled $2,417 for the three month
period ended June 30, 1995 as compared to $6,169 for the comparable 1994
period, a decrease of $3,752, or approximately 61 percent. Interest expense
for the Venture totaled $8,701 for the six months ended June 30, 1995 as
compared to $10,466 for the comparable 1994 period, a decrease of $1,765, or
approximately 17 percent. The decreases for the three and six month periods
were due to lower outstanding balances on capital lease obligations. Net
income of the Venture totaled $95,857 for the three month period ended June 30,
1995 as compared to $91,414 for the comparable 1994 period, an increase of
$4,443, or approximately 5 percent. The increase was due to the decrease in
interest expense. Net income of the Venture totaled $142,331 for the six
months ended June 30, 1995 as compared to $192,301 for the comparable 1994
period, a decrease of $49,970, or approximately 26 percent. The decrease was
due primarily to the decrease in operating income.
12
<PAGE> 13
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
a) Exhibits
27) Financial Data Schedule
b) Reports on Form 8-K
None
13
<PAGE> 14
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 thereunto duly authorized.
CABLE TV FUND 11-B, LTD.
BY: JONES INTERCABLE, INC.
General Partner
By: /S/ Kevin P. Coyle
-----------------------------
Kevin P. Coyle
Group Vice President/Finance
(Principal Financial Officer)
Dated: August 14, 1995
14
<PAGE> 15
EXHIBIT INDEX
Exhibit No. Exhibit Description Page
----------- ------------------- ----
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 522,702
<SECURITIES> 0
<RECEIVABLES> 391,586
<ALLOWANCES> (69,553)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 43,221,282
<DEPRECIATION> (17,802,177)
<TOTAL-ASSETS> 27,924,955
<CURRENT-LIABILITIES> 1,318,913
<BONDS> 23,728,157
<COMMON> 0
0
0
<OTHER-SE> 2,877,885
<TOTAL-LIABILITY-AND-EQUITY> 27,924,955
<SALES> 0
<TOTAL-REVENUES> 6,975,702
<CGS> 0
<TOTAL-COSTS> 6,205,306
<OTHER-EXPENSES> (69,194)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 887,699
<INCOME-PRETAX> (37,036)
<INCOME-TAX> 0
<INCOME-CONTINUING> (37,036)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (37,036)
<EPS-PRIMARY> (.96)
<EPS-DILUTED> (.96)
</TABLE>
