<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------------
FORM 10-Q
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
---------------------------------
OR
[ ] 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 0-13333
-------------------------------
Enstar Income Program 1984-1, L.P.
----------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Georgia 58-1581136
- ------------------------------- ---------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
10900 Wilshire Boulevard - 15th Floor
Los Angeles, California 90024
- ------------------------------------- ---------------------------------------
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code: (310) 824-9990
---------------------------
- ------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.
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>
PART I - FINANCIAL INFORMATION
ENSTAR INCOME PROGRAM 1984-1, L.P.
CONDENSED BALANCE SHEETS
--------------------------------------
--------------------------------------
<TABLE>
<CAPTION>
December 31, March 31,
1998* 1999
------------ ------------
(Unaudited)
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 1,036,000 $ 1,395,600
Accounts receivable, less allowance of
$5,500 and $3,700 for possible losses 27,800 13,400
Prepaid expenses and other assets 150,000 309,500
Property, plant and equipment, less accumulated
depreciation and amortization of $11,094,500
and $11,298,900 4,048,700 3,950,400
Franchise cost, net of accumulated
amortization of $114,500 and $117,700 66,000 62,700
Deferred loan costs and other deferred
charges, net 88,900 78,000
------------ ------------
$ 5,417,400 $ 5,809,600
------------ ------------
------------ ------------
LIABILITIES AND PARTNERSHIP CAPITAL
LIABILITIES:
Accounts payable $ 420,800 $ 270,700
Due to affiliates 894,900 1,153,900
------------ ------------
TOTAL LIABILITIES 1,315,700 1,424,600
------------ ------------
COMMITMENTS AND CONTINGENCIES
PARTNERSHIP CAPITAL (DEFICIT):
General partner (31,700) (28,900)
Limited partners 4,133,400 4,413,900
------------ ------------
TOTAL PARTNERSHIP CAPITAL 4,101,700 4,385,000
------------ ------------
$ 5,417,400 $ 5,809,600
------------ ------------
------------ ------------
</TABLE>
*As presented in the audited financial statements.
See accompanying notes to condensed financial statements.
-2-
<PAGE>
ENSTAR INCOME PROGRAM 1984-1, L.P.
CONDENSED STATEMENTS OF OPERATIONS
--------------------------------------
--------------------------------------
<TABLE>
<CAPTION>
Unaudited
---------------------------
Three months ended
March 31,
---------------------------
1998 1999
------------ ------------
<S> <C> <C>
REVENUES $ 1,330,000 $ 1,265,700
------------ ------------
OPERATING EXPENSES:
Service costs 480,000 446,500
General and administrative expenses 180,900 164,000
General Partner management fees
and reimbursed expenses 167,500 147,900
Depreciation and amortization 178,400 211,200
------------ ------------
1,006,800 969,600
------------ ------------
OPERATING INCOME 323,200 296,100
------------ ------------
OTHER INCOME (EXPENSE):
Interest income 4,500 10,900
Interest expense (27,600) (23,700)
------------ ------------
(23,100) (12,800)
------------ ------------
NET INCOME $ 300,100 $ 283,300
------------ ------------
------------ ------------
Net income allocated to General Partner $ 3,000 $ 2,800
------------ ------------
------------ ------------
Net income allocated to Limited Partners $ 297,100 $ 280,500
------------ ------------
------------ ------------
NET INCOME PER UNIT OF LIMITED
PARTNERSHIP INTEREST $ 9.92 $ 9.37
------------ ------------
------------ ------------
AVERAGE LIMITED PARTNERSHIP
UNITS OUTSTANDING DURING PERIOD 29,940 29,940
------------ ------------
------------ ------------
</TABLE>
See accompanying notes to condensed financial statements.
-3-
<PAGE>
ENSTAR INCOME PROGRAM 1984-1, L.P.
STATEMENTS OF CASH FLOWS
--------------------------------------
--------------------------------------
<TABLE>
<CAPTION>
Unaudited
-------------------------
Three months ended
March 31,
-------------------------
1998 1999
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 300,100 $ 283,300
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 178,400 211,200
Amortization of deferred loan costs 7,300 7,400
Increase (decrease) from changes in:
Receivables, prepaid expenses
and other assets 40,400 (145,100)
Accounts payable (53,700) (150,100)
---------- ----------
Net cash provided by operating
activities 472,500 206,700
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (352,200) (106,100)
Increase in intangible assets (1,900) -
---------- ----------
Net cash used in investing activities (354,100) (106,100)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Due to affiliates (9,200) 259,000
Deferred loan costs (1,400) -
---------- ----------
Net cash provided by (used in)
financing activities (10,600) 259,000
---------- ----------
INCREASE IN CASH 107,800 359,600
CASH AT BEGINNING OF PERIOD 462,900 1,036,000
---------- ----------
CASH AT END OF PERIOD $ 570,700 $ 1,395,600
---------- ----------
---------- ----------
</TABLE>
See accompanying notes to condensed financial statements.
-4-
<PAGE>
ENSTAR INCOME PROGRAM 1984-1, L.P.
CONDENSED STATEMENTS OF OPERATIONS
--------------------------------------
--------------------------------------
1. INTERIM FINANCIAL STATEMENTS
The accompanying condensed interim financial statements for the three
months ended March 31, 1999 and 1998 are unaudited. These condensed interim
financial statements should be read in conjunction with the audited financial
statements and notes thereto included in the Partnership's latest Annual
Report on Form 10-K. In the opinion of management, such statements reflect
all adjustments (consisting only of normal recurring adjustments) necessary
for a fair presentation of the results of such periods. The results of
operations for the three months ended March 31, 1999 are not necessarily
indicative of results for the entire year.
2. TRANSACTIONS WITH THE GENERAL PARTNER AND AFFILIATES
The Partnership has a management and service agreement with a wholly
owned subsidiary of the General Partner (the "Manager") for a monthly
management fee of 5% of revenues, excluding revenues from the sale of cable
television systems or franchises. Management fee expense approximated
$62,800 for the three months ended March 31, 1999.
In addition to the monthly management fee described above, the
Partnership reimburses the Manager for direct expenses incurred on behalf of
the Partnership and for the Partnership's allocable share of operational
costs associated with services provided by the Manager. All cable television
properties managed by the General Partner and its subsidiary are charged a
proportionate share of these expenses. The General Partner has contracted
with Falcon Communications, L.P. ("FCLP"), successor to Falcon Holding Group,
L.P. ("FHGLP"), an affiliated partnership, to provide corporate management
services for the Partnership. Corporate office allocations and district
office expenses are charged to the properties served based primarily on the
respective percentage of basic subscribers or homes passed (dwelling units
within a system) within the designated service areas. The total amount
charged to the Partnership for these services approximated $85,100 for the
three months ended March 31, 1999. Management fees and reimbursed expenses
due the General Partner are non-interest bearing.
Payments of management fees and reimbursed expenses were deferred in
prior years pursuant to restrictions in the Partnership's note payable
agreement. The cumulative amount deferred was approximately $1,081,300. On
September 30, 1997, the Partnership obtained new financing and subsequently
used such borrowings and other available cash to pay $619,000 of previously
deferred management fees and reimbursed expenses. The remainder of these
deferred amounts, $462,300, was contributed as an equity contribution by the
General Partner to Enstar Finance Company, LLC ("EFC"), a subsidiary of the
General Partner, and remains an outstanding obligation of the Partnership.
In the normal course of business, the Partnership pays a commitment fee to
EFC, its primary lender.
The Partnership also receives certain system operating management
services from affiliates of the General Partner in addition to the Manager
due to the fact that there are no such employees directly employed by the
Partnership. The Partnership reimburses the affiliates for its allocable
share of the affiliates' operational costs. The total amount charged to the
Partnership for these costs approximated $7,600
-5-
<PAGE>
ENSTAR INCOME PROGRAM 1984-1, L.P.
CONDENSED STATEMENTS OF OPERATIONS
--------------------------------------
--------------------------------------
2. TRANSACTIONS WITH THE GENERAL PARTNER AND AFFILIATES (Continued)
in the three months ended March 31, 1999. No management fee is payable to
the affiliates by the Partnership and there is no duplication of reimbursed
expenses and costs paid to the Manager.
Substantially all programming services have been purchased through FCLP.
FCLP, in the normal course of business, purchases cable programming services
from certain program suppliers owned in whole or in part by affiliates of an
entity that became a general partner of FCLP on September 30, 1998. Such
purchases of programming services are made on behalf of the Partnership and
the other partnerships managed by the General Partner as well as for FCLP's
own cable television operations. FCLP charges the Partnership for these
costs based on an estimate of what the General Partner could negotiate for
such programming services for the 15 partnerships managed by the General
Partner as a group. The Partnership recorded programming fee expense of
$290,000 for the three months ended March 31, 1999. Programming fees are
included in service costs in the statements of operations.
3. EARNINGS PER UNIT OF LIMITED PARTNERSHIP INTEREST
Earnings and losses per unit of limited partnership interest is based on
the average number of units outstanding during the periods presented. For
this purpose, earnings and losses have been allocated 99% to the Limited
Partners and 1% to the General Partner. The General Partner does not own
units of partnership interest in the Partnership, but rather holds a
participation interest in the income, losses and distributions of the
Partnership.
-6-
<PAGE>
ENSTAR INCOME PROGRAM 1984-1, L.P.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
INTRODUCTION
The Cable Television Consumer Protection and Competition Act of 1992
(the "1992 Cable Act") required the Federal Communications Commission ("FCC")
to, among other things, implement extensive regulation of the rates charged
by cable television systems for basic and programming service tiers,
installation, and customer premises equipment leasing. Compliance with those
rate regulations has had a negative impact on the Partnership's revenues and
cash flow. The Telecommunications Act of 1996 (the "1996 Telecom Act")
substantially changed the competitive and regulatory environment for cable
television and telecommunications service providers. Among other changes, the
1996 Telecom Act ended the regulation of cable programming service tier rates
on March 31, 1999. There can be no assurance as to what, if any, further
action may be taken by the FCC, Congress or any other regulatory authority or
court, or the effect thereof on the Partnership's business. Accordingly, the
Partnership's historical financial results as described below are not
necessarily indicative of future performance.
This Report includes certain forward looking statements regarding, among
other things, future results of operations, regulatory requirements,
competition, capital needs and general business conditions applicable to the
Partnership. Such forward looking statements involve risks and uncertainties
including, without limitation, the uncertainty of legislative and regulatory
changes and the rapid developments in the competitive environment facing
cable television operators such as the Partnership. In addition to the
information provided herein, reference is made to the Partnership's Annual
Report on Form 10-K for the year ended December 31, 1998 for additional
information regarding such matters and the effect thereof on the
Partnership's business.
RESULTS OF OPERATIONS
The Partnership's revenues decreased from $1,330,000 to $1,265,700, or
by 4.8%, for the three months ended March 31, 1999 as compared to the
corresponding period in 1998. Of the $64,300 decrease, $40,300 was due to
decreases in the number of subscriptions for basic, premium, tier and
equipment rental services and $24,000 was due to other revenue producing
items. As of March 31, 1999, the Partnership had approximately 10,900 basic
subscribers and 4,700 premium service units.
Service costs decreased from $480,000 to $446,500, or by 7.0%, for the
three months ended March 31, 1999 as compared to the corresponding period in
1998. Service costs represent costs directly attributable to providing cable
services to customers. The decrease was primarily due to a decrease in
copyright fees, principally attributable to previous estimates that were
reduced in the first three months of 1999.
General and administrative expenses decreased from $180,900 to $164,000,
or by 9.3%, for the three months ended March 31, 1999 as compared to the
corresponding period in 1998. The decrease was primarily due to reductions
in bad debt expense and was partially offset by an increase in insurance
premiums.
Management fees and reimbursed expenses decreased from $167,500 to
$147,900, or by 11.7%, for the three months ended March 31, 1999 as compared
to the corresponding period in 1998. Management fees decreased in direct
relation to decreased revenues as described above. Reimbursed expenses
decreased primarily as a result of lower allocated personnel costs due to
staff reductions.
-7-
<PAGE>
ENSTAR INCOME PROGRAM 1984-1, L.P.
RESULTS OF OPERATIONS (Continued)
Depreciation and amortization expense increased from $178,400 to
$211,200, or by 18.4%, for the three months ended March 31, 1999 as compared
to the corresponding period in 1998. The increase was primarily due to plant
asset additions.
Operating income decreased from $323,200 to $296,100, or by 8.4%, for
the three months ended March 31, 1999 as compared to the corresponding period
in 1998. The decrease was primarily due to increases in depreciation and
amortization.
Interest income increased from $4,500 to $10,900 for the three months
ended March 31, 1999 as compared to the corresponding period in 1998. The
increase was due to higher average cash balances available for investment.
Interest expense decreased from $27,600 to $23,700, or by 14.1%, for the
three months ended March 31, 1999 as compared to the corresponding period in
1998. The decrease was primarily due to lower average borrowings resulting
from the repayment of the Partnership's note payable in June 1998. The
Partnership pays interest in the form of a commitment fee on the unused
portion of its loan commitment.
Due to the factors described above, the Partnership's net income
decreased from $300,100 to $283,300, or by 5.6%, for the three months ended
March 31, 1999 as compared to the corresponding period in 1998.
Based on its experience in the cable television industry, the
Partnership believes that operating income before depreciation and
amortization ("EBITDA") and related measures of cash flow serve as important
financial analysis tools for measuring and comparing cable television
companies in several areas, such as liquidity, operating performance and
leverage. EBITDA is not a measurement determined under generally accepted
accounting principles ("GAAP") and does not represent cash generated from
operating activities in accordance with GAAP. EBITDA should not be considered
by the reader as an alternative to net income as an indicator of financial
performance or as an alternative to cash flows as a measure of liquidity. In
addition, the definition of EBITDA may not be identical to similarly titled
measures used by other companies. EBITDA as a percentage of revenues
increased from 37.7% to 40.1% during the three months ended March 31, 1999 as
compared to the corresponding period in 1998. The increase was primarily due
to decreases in copyright fees and bad debt expense as described above.
EBITDA increased from $501,600 to $507,300, or by 1.1%, during the three
months ended March 31, 1999 as compared to the corresponding period in 1998.
LIQUIDITY AND CAPITAL RESOURCES
The Partnership's primary objective, having invested its net offering
proceeds in cable systems, is to distribute to its partners all available
cash flow from operations and proceeds from the sale of cable systems, if
any, after providing for expenses, debt service and capital requirements. In
general, these capital requirements involve expansion, improvement and
upgrade of the Partnership's existing cable systems.
Based on its belief that the market for cable systems has generally
improved, the General Partner is evaluating strategies for liquidating the
Partnership. These strategies include the potential sale of substantially
all of the Partnership's assets to third parties and/or affiliates of the
General Partner, and the subsequent liquidation of the Partnership. The
General Partner expects to complete its evaluation within the
-8-
<PAGE>
ENSTAR INCOME PROGRAM 1984-1, L.P.
LIQUIDITY AND CAPITAL RESOURCES (Continued)
next several months and intends to advise unitholders promptly if it believes
that commencing a liquidating transaction would be in the best interests of
unitholders.
The Partnership relies upon the availability of cash generated from
operations and possible borrowings to fund its ongoing expenses, debt service
and capital requirements. The Partnership's capital expenditures were
$106,100 in the three months ended March 31, 1999. As of the date of this
Report, substantially all of the available channel capacity in the
Partnership's cable television systems is being utilized and each of such
systems requires an upgrade. The entire upgrade program is presently
estimated to require aggregate capital expenditures of approximately
$8,300,000 and covers 12 franchise areas. These upgrades are currently
required in six existing franchise agreements covering eight franchise areas.
The upgrades required by the six existing franchise agreements are estimated
to cost approximately $4,900,000 and must be completed by June 2000, December
2001 and February 2002. Capital expenditures budgeted for 1999 include
approximately $48,000 to begin three of the upgrades and $530,000 for the
replacement of other assets. The Partnership believes that possible
borrowings under its credit agreement together with cash flow from operations
will be adequate to fund capital expenditures and other liquidity
requirements.
The Partnership is party to a loan agreement with EFC. The loan
agreement provides for a revolving loan facility of $7,481,700 (the
"Facility"). The Partnership repaid its outstanding borrowings in 1998,
although the Partnership's management expects to reborrow under the Facility
in the future for the upgrade of the Partnership's systems.
The Partnership's Facility matures on August 31, 2001, at which time all
amounts then outstanding are due in full. Borrowings bear interest at the
lender's base rate (7.75% at March 31, 1999) plus 0.625%, or at an offshore
rate plus 1.875%. Under certain circumstances, the Partnership is required
to make mandatory prepayments, which permanently reduce the maximum
commitment under the Facility. The Facility contains certain financial tests
and other covenants including, among others, restrictions on incurrence of
indebtedness, investments, sales of assets, acquisitions and other covenants,
defaults and conditions. The Facility does not restrict the payment of
distributions to partners unless an event of default exists thereunder or the
Partnership's ratio of debt to cash flow is greater than 4 to 1. However,
due to the upgrade program discussed above, the General Partner believes it
is critical to conserve cash and borrowing capacity and, consequently, has
concluded that it would not be prudent for the Partnership to resume paying
distributions at this time.
Beginning in August 1997, the General Partner elected to self-insure the
Partnership's cable distribution plant and subscriber connections against
property damage as well as possible business interruptions caused by such
damage. The decision to self-insure was made due to significant increases in
the cost of insurance coverage and decreases in the amount of insurance
coverage available.
In October 1998, FCLP reinstated third party insurance coverage for all
of the cable television properties owned or managed by FCLP to cover damage
to cable distribution plant and subscriber connections and against business
interruptions resulting from such damage. This coverage is subject to a
significant annual deductible which applies to all of the cable television
properties owned or managed by FCLP.
Approximately 64% of the Partnership's subscribers are served by its
system in Brownsville, Tennessee and neighboring communities. Significant
damage to the system due to seasonal weather
-9-
<PAGE>
ENSTAR INCOME PROGRAM 1984-1, L.P.
LIQUIDITY AND CAPITAL RESOURCES (Continued)
conditions or other events could have a material adverse effect on the
Partnership's liquidity and cash flows. The Partnership continues to
purchase insurance coverage in amounts its management views as appropriate
for all other property, liability, automobile, workers' compensation and
other types of insurable risks.
During the first quarter of 1999, FCLP, on behalf of the General
Partner, continued its identification and evaluation of the Partnership's
Year 2000 business risks and its exposure to computer systems, to operating
equipment which is date sensitive and to the interface systems of its vendors
and service providers. The evaluation has focused on identification and
assessment of systems and equipment that may fail to distinguish between the
year 1900 and the year 2000 and, as a result, may cease to operate or may
operate improperly when dates after December 31, 1999 are introduced.
Based on a study conducted in 1997, FCLP concluded that certain of the
Partnership's information systems were not Year 2000 compliant and elected to
replace such software and hardware with applications and equipment certified
by the vendors as Year 2000 compliant. FCLP installed the new systems in the
first quarter of 1999. The total anticipated cost, including replacement
software and hardware, will be borne by FCLP. FCLP is continuing to utilize
internal and external resources to extend the functionality of the new
systems. FCLP does not believe that any other significant information
technology projects affecting the Partnership have been delayed due to
efforts to identify and address Year 2000 issues.
Additionally, FCLP has continued to inventory the Partnership's
operating and revenue generating equipment to identify items that need to be
upgraded or replaced and has surveyed cable equipment manufacturers to
determine which of their models require upgrade or replacement to become Year
2000 compliant. Identification and evaluation, while ongoing, are
substantially completed and a plan has been developed to remediate
non-compliant equipment prior to January 1, 2000. Upgrade or replacement,
testing and implementation will be performed over the remaining months of
1999. The cost of such replacement or remediation, currently estimated at
$11,600, is not expected to have a material effect on the Partnership's
financial position or results of operations. The Partnership had not incurred
any costs related to the Year 2000 project as of March 31, 1999. FCLP plans
to inventory, assess, replace and test equipment with embedded computer chips
in a separate segment of its project, presently scheduled for the second half
of 1999.
FCLP has continued to survey the Partnership's significant third party
vendors and service suppliers to determine the extent to which the
Partnership's interface systems are vulnerable should those third parties
fail to solve their own Year 2000 problems on a timely basis. Approximately
80% of the Partnership's most critical equipment vendors have responded to
the surveys regarding the Year 2000 compliance of their products. Additional
compliance information has been obtained for specific products from vendor
Web sites. Among the most significant service providers upon which the
Partnership relies are programming suppliers, power and telephone companies,
various banking institutions and the Partnership's customer billing service.
A majority of these service suppliers either have not responded to FCLP's
inquiries regarding their Year 2000 compliance programs or have responded
that they are unsure if they will become compliant on a timely basis.
Consequently, there can be no assurance that the systems of other companies
on which the Partnership must rely will be Year 2000 compliant on a timely
basis.
FCLP is developing a contingency plan in 1999 to address possible
situations in which various systems of the Partnership, or of third parties
with which the Partnership does business, are not compliant prior to January
1, 2000. Considerable effort has been directed toward distinguishing between
those
-10-
<PAGE>
ENSTAR INCOME PROGRAM 1984-1, L.P.
LIQUIDITY AND CAPITAL RESOURCES (Continued)
contingencies with a greater probability of occurring from those whose
occurrence is considered remote. Moreover, such a plan has focused on
systems whose failure poses a material risk to the Partnership's results of
operations and financial condition.
The Partnership's most significant Year 2000 risk is an interruption of
service to subscribers, resulting in a potentially material loss of revenues.
Other risks include impairment of the Partnership's ability to bill and/or
collect payment from its customers, which could negatively impact its
liquidity and cash flows. Such risks exist primarily due to technological
operations dependent upon third parties and to a much lesser extent to those
under the control of the Partnership. Failure to achieve Year 2000 readiness
in either area could have a material adverse impact on the Partnership. The
Partnership is unable to estimate the possible effect on its results of
operations, liquidity and financial condition should its significant service
suppliers fail to complete their readiness programs prior to the Year 2000.
Depending on the supplier, equipment malfunction or type of service provided,
as well as the location and duration of the problem, the effect could be
material. For example, if a cable programming supplier encounters an
interruption of its signal due to a Year 2000 satellite malfunction, the
Partnership will be unable to provide the signal to its cable subscribers,
which could result in a loss of revenues, although the Partnership would
attempt to provide its customers with alternative program services for the
period during which it could not provide the original signal. Due to the
number of individually owned and operated channels the Partnership carries
for its subscribers, and the packaging of those channels, the Partnership is
unable to estimate any reasonable dollar impact of such interruption.
THREE MONTHS ENDED MARCH 31, 1999 AND 1998
Operating activities provided $265,800 less cash in the three months
ended March 31, 1999 than in the corresponding period in 1998. Changes in
accounts receivable, prepaid expenses and other assets used $185,500 more
cash in the first three months of 1999 due to differences in the timing of
receivable collections and in the payment of prepaid expenses. The
Partnership used $96,400 more cash for accounts payable due to differences in
the timing of payments.
The Partnership used $248,000 less cash in investing activities in the
three months ended March 31, 1999 than in the corresponding period of 1998,
due to a $246,100 decrease in expenditures for tangible assets and a $1,900
decrease in spending for intangible assets. Financing activities provided
$269,600 more cash in the three months ended March 31, 1999 than in the
comparable 1998 period. The Partnership used $268,200 less cash for the
payment of liabilities owed to the General Partner and other affiliates due
to differences in the timing of payments.
INFLATION
Certain of the Partnership's expenses, such as those for wages and
benefits, equipment repair and replacement, and billing and marketing
generally increase with inflation. However, the Partnership does not believe
that its financial results have been, or will be, adversely affected by
inflation in a material way, provided that the Partnership is able to
increase its service rates periodically, of which there can be no assurance.
-11-
<PAGE>
ENSTAR INCOME PROGRAM 1984-1, L.P.
PART II. OTHER INFORMATION
ITEMS 1-5. Not applicable.
ITEM 6. Exhibits and Reports on Form 8-K
(a) None.
(b) No reports on Form 8-K were filed during the quarter for
which this report is filed.
<PAGE>
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.
ENSTAR INCOME PROGRAM 1984-1, L.P.
a GEORGIA LIMITED PARTNERSHIP
-----------------------------
(Registrant)
By: ENSTAR COMMUNICATIONS CORPORATION
General Partner
Date: May 14, 1999 By: /s/ Michael K. Menerey
--------------------------------
Michael K. Menerey,
Executive Vice President,
Chief Financial Officer and
Secretary
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AT MARCH 31, 1999, AND THE STATEMENTS OF OPERATIONS FOR THE THREE MONTHS
ENDED MARCH 31, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 1,395,600
<SECURITIES> 0
<RECEIVABLES> 17,100
<ALLOWANCES> 3,700
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 15,249,300
<DEPRECIATION> 11,298,900
<TOTAL-ASSETS> 5,809,600
<CURRENT-LIABILITIES> 1,424,600
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 5,809,600
<SALES> 0
<TOTAL-REVENUES> 1,265,700
<CGS> 0
<TOTAL-COSTS> 969,600
<OTHER-EXPENSES> (10,900)
<LOSS-PROVISION> 5,200
<INTEREST-EXPENSE> 23,700
<INCOME-PRETAX> 283,300
<INCOME-TAX> 0
<INCOME-CONTINUING> 283,300
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 283,300
<EPS-PRIMARY> 9.37
<EPS-DILUTED> 0
</TABLE>
