<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: 0-13807
CABLE TV FUND 12-B, LTD.
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Exact name of registrant as specified in charter
Colorado #84-0969999
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State of organization I.R.S. employer I.D. #
9697 East Mineral Avenue, P.O. Box 3309, Englewood, Colorado 80155-3309
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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_____
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CABLE TV FUND 12-B, LTD.
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
ASSETS 1995 1994
-------- ------------
<S> <C> <C>
CASH $ 3,065,467 $ 3,782,989
TRADE RECEIVABLES, less allowance for doubtful
receivables of $88,960 and $79,128 at June 30, 1995
and December 31, 1994, respectively 969,036 860,247
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 80,694,063 78,503,036
Less- accumulated depreciation (41,021,198) (37,429,022)
------------ ------------
39,672,865 41,074,014
Franchise costs, net of accumulated amortization
of $26,406,170 and $25,063,424 at June 30, 1995
and December 31, 1994, respectively 12,708,602 14,051,348
Loss in excess of investment in cable television
joint venture (2,379,084) (1,804,126)
------------ ------------
Total investment in cable television properties 50,002,383 53,321,236
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES 479,274 578,713
------------ ------------
Total assets $ 54,516,160 $ 58,543,185
============ ============
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these balance sheets.
2
<PAGE> 3
CABLE TV FUND 12-B, LTD.
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) 1995 1994
---------- ------------
<S> <C> <C>
LIABILITIES:
Debt $ 37,413,222 $ 39,959,041
Accounts payable-
Trade -- 63,438
General Partner 17,894 112,495
Accrued liabilities 1,197,467 924,648
Subscriber prepayments 132,507 113,843
------------ ------------
Total liabilities 38,761,090 41,173,465
------------ ------------
PARTNERS' CAPITAL (DEFICIT):
General Partner-
Contributed capital 1,000 1,000
Accumulated deficit (321,298) (305,152)
------------ ------------
(320,298) (304,152)
------------ ------------
Limited Partners-
Net contributed capital (111,035 units
outstanding at June 30, 1995 and
December 31, 1994) 47,645,060 47,645,060
Accumulated deficit (31,569,692) (29,971,188)
------------- ------------
16,075,368 17,673,872
------------ ------------
Total liabilities and partners' capital (deficit) $ 54,516,160 $ 58,543,185
============ ============
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these balance sheets.
3
<PAGE> 4
CABLE TV FUND 12-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 $7,371,663 $6,781,005 $14,363,321 $13,405,781
COSTS AND EXPENSES:
Operating expense 3,541,632 3,487,108 7,242,064 6,885,624
Management fees and allocated overhead
from General Partner 849,145 847,942 1,719,157 1,683,374
Depreciation and amortization 2,482,527 2,332,064 4,970,636 4,669,801
---------- ---------- ----------- -----------
OPERATING INCOME 498,359 113,891 431,464 166,982
---------- ---------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest expense (780,303) (599,986) (1,566,347) (1,158,600)
Other, net 41,391 (11,543) 95,191 22,705
---------- ---------- ----------- -----------
Total other income (expense), net (738,912) (611,529) (1,471,156) (1,135,895)
---------- ---------- ----------- -----------
LOSS BEFORE EQUITY IN NET LOSS OF
CABLE TELEVISION JOINT VENTURE (240,553) (497,638) (1,039,692) (968,913)
EQUITY IN NET LOSS OF CABLE TELEVISION
JOINT VENTURE (246,356) (290,983) (574,958) (582,690)
---------- ---------- ----------- -----------
NET LOSS $ (486,909) $ (788,621) $(1,614,650) $(1,551,603)
========== ========== =========== ===========
ALLOCATION OF NET LOSS:
General Partner $ (4,869) $ (7,886) $ (16,146) $ (15,516)
========== ========== =========== ===========
Limited Partners $ (482,040) $ (780,735) $(1,598,504) $(1,536,087)
========== ========== =========== ===========
NET LOSS PER LIMITED PARTNERSHIP UNIT $ (4.34) $ (7.03) $ (14.39) $ (13.83)
========== ========== =========== ===========
WEIGHTED AVERAGE NUMBER OF LIMITED
PARTNERSHIP UNITS OUTSTANDING 111,035 111,035 111,035 111,035
========== ========== =========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these statements.
4
<PAGE> 5
CABLE TV FUND 12-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 loss $(1,614,650) $(1,551,603)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 4,970,636 4,669,801
Decrease in amount due General Partner (94,601) (157,364)
Equity in net loss of cable television joint venture 574,958 582,690
Decrease (increase) in trade receivables (108,789) 143,392
Increase in prepaid expenses and other assets 63,725 (176,065)
Increase (decrease) in trade accounts payable,
accrued liabilities and subscriber prepayments 228,045 (39,852)
----------- -----------
Net cash provided by operating activities 4,019,324 3,470,999
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net (2,191,027) (1,628,416)
----------- -----------
Net cash used in investing activities (2,191,027) (1,628,416)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings -- 17,502
Repayment of debt (2,545,819) (1,998,438)
----------- -----------
Net cash used in financing activities (2,545,819) (1,980,936)
----------- -----------
Decrease in cash (717,522) (138,353)
Cash, beginning of period 3,782,989 4,856,992
----------- -----------
Cash, end of period $ 3,065,467 $ 4,718,639
=========== ===========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 1,258,707 $ 1,187,165
=========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these statements.
5
<PAGE> 6
CABLE TV FUND 12-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 12-B, Ltd.
("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.
The Partnership owns and operates the cable television system serving
certain areas in and around Augusta, Georgia (the "Augusta System"). In
addition, the Partnership owns an approximate 9 percent interest in Cable TV
Fund 12-BCD Venture (the "Venture"). The Venture owns and operates the cable
television systems serving certain areas in and around Albuquerque, New Mexico;
Palmdale, California; and Tampa, Florida.
(2) Jones Intercable, Inc. (the "General Partner"), a publicly held
Colorado corporation, manages the Partnership and receives a fee for its
services equal to 5 percent of the gross revenues of the Partnership, 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 the
Partnership's 9 percent interest in the Venture) were $368,583 and $718,166,
respectively, as compared to $339,050 and $670,289, respectively, for the
similar 1994 periods.
The Partnership reimburses 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. Allocations of personnel costs are
based primarily on actual time spent by employees of the General Partner with
respect to each partnership managed. Remaining overhead costs are allocated
based on revenues of the partnership as a percentage of the total revenues of
owned and managed systems of the General Partner. 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. Amounts charged the
Partnership by the General Partner for allocated overhead and administrative
expenses for the three and six month periods ended June 30, 1995 (excluding the
Partnership's 9 percent interest in the Venture) were $480,562 and $1,000,991,
respectively, as compared to $508,892 and $1,013,085, respectively, for the
similar 1994 periods.
(3) The Partnership has agreed to sell the Augusta System to the General
Partner for a sales price of $142,618,000, subject to working capital
adjustments. The sales price was determined by averaging three separate
independent appraisals of the fair market value of the Augusta System as of
December 31, 1994. Closing of the sale is subject to a number of conditions,
including the approval of the transaction by the holders of a majority of the
Partnership's limited partnership interests. The General Partner expects to
conduct a vote of the limited partners of the Partnership during August or
September 1995 to seek limited partner approval of the sale of the Augusta
System. Subject to the satisfaction of closing conditions, the transaction is
expected to close during 1995. This sale agreement pertains only to the
Augusta System, not to the Partnership's interest in the systems owned by the
Venture. The limited partners' portion of net proceeds from the sale
(approximately $95,134,890, or approximately $1,714 for each $1,000 invested
in the Partnership) will be distributed to the limited partners shortly after
closing. The Partnership will retain its interest in the Venture.
(4) In August 1995, the Venture entered into a purchase and sale agreement
pursuant to which it agreed to sell the Tampa, Florida system (the "Tampa
System") to the General Partner for a sales price of $110,395,667, subject to
working capital adjustments. This price is the
6
<PAGE> 7
average of three separate, independent appraisals of the fair market value of
the Tampa System. Closing of the sale is expected to occur before the end of
1995. The Venture's current debt arrangements do not allow the Venture to make
distributions. The General Partner will attempt to rengegotiate the Venture's
credit arrangements to allow for distributions. There is no assurance such
refinancing can be completed. If the refinancing is successfully completed,
the Venture expects to distribute approximately $3,800,000 to the Partnership,
which the Partnership in turn will distribute to its limited partners, giving
the Partnership's limited partners an approximate return of $68 for each $1,000
invested in the Partnership. This amount is in addition to the $1,714 for each
$1,000 invested in the Partnership to be returned to the limited partners from
the Augusta System sale. Because the Tampa System does not constitute all or
substantially all of the Venture's assets, no vote of the limited partners of
the Partnership is required in connection with this transaction.
7
<PAGE> 8
(5) Summarized financial information regarding the Venture is presented
below.
UNAUDITED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS June 30, 1995 December 31, 1994
------------- -----------------
<S> <C> <C>
Cash and accounts receivable $ 6,728,320 $ 8,358,010
Investment in cable television properties 156,687,451 160,282,700
Other assets 1,753,956 2,035,204
-------------- -------------
Total Assets $ 165,169,727 $ 170,675,914
============== =============
LIABILITIES AND PARTNERS' CAPITAL June 30, 1995 December 31, 1994
------------- -----------------
Debt $ 180,653,878 $ 180,402,748
Payables and accrued liabilities 1,838,460 2,911,778
Partners' contributed capital 102,198,175 102,198,175
Accumulated deficit (119,520,786) (114,836,787)
-------------- -------------
Total liabilities and partners' capital $ 165,169,727 $ 170,675,914
============== =============
</TABLE>
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 $ 25,395,190 $ 23,239,439 $ 49,553,282 $ 45,646,691
Operating expense (14,568,494) (13,998,347) (27,952,322) (27,357,147)
Management fees and allocated overhead
from General Partner (2,925,500) (2,859,308) (5,958,559) (5,696,307)
Depreciation and amortization (6,680,382) (6,106,215) (13,364,381) (12,533,322)
------------ ------------ ------------ ------------
Operating income 1,220,814 275,569 1,573,020 59,915
Interest expense (3,970,481) (3,294,996) (7,915,623) (6,316,338)
Other, net 66,046 (76,167) 79,449 (91,125)
------------ ------------ ------------ ------------
Net loss $ (2,683,621) $ (3,095,594) $ (6,263,154) $ (6,347,548)
============ ============ ============ ============
</TABLE>
8
<PAGE> 9
Management fees and reimbursements for overhead and administrative
expense paid to Jones Intercable, Inc. by the Venture totaled $1,269,759 and
$2,477,664, for the three and six months ended June 30, 1995, respectively, and
$1,161,972 and $2,282,335, for the three and six months ended June 30, 1994,
respectively. Reimbursements for overhead and administrative expenses paid to
the General Partner by the Venture totaled $1,655,741 and $3,480,895 for the
three and six months ended June 30, 1995, respectively, and $1,697,336 and
$3,413,972, for the three and six months ended June 30, 1994, respectively.
Management fees paid by the Venture and attributable to the Partnership totaled
$116,564 and $227,450 for the three and six month periods ended June 30, 1995,
respectively, and $106,668 and $209,518 for the three and six month periods
ended June 30, 1994, respectively. Reimbursements for overhead and
administrative expenses paid by the Venture and attributable to the Partnership
totaled $151,997 and $319,546 for the three and six month periods ended June
30, 1995, respectively, and $155,815 and $313,402 for the three and six month
periods ended June 30, 1994, respectively.
9
<PAGE> 10
CABLE TV FUND 12-B, LTD.
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FINANCIAL CONDITION
The Partnership
The Partnership has agreed to sell the Augusta System to the General
Partner for a sales price of $142,618,000, subject to working capital
adjustments. The sales price was determined by averaging three separate
independent appraisals of the fair market value of the Augusta System as of
December 31, 1994. Closing of the sale is subject to a number of conditions,
including the approval of the transaction by the holders of a majority of the
Partnership's limited partnership interests. The General Partner expects to
conduct a vote of the limited partners of the Partnership during August or
September 1995 to seek limited partner approval of the sale of the Augusta
System. Subject to the satisfaction of closing conditions, the transaction is
expected to close during 1995. This sale agreement pertains only to the
Augusta System, not to the Partnership's interest in the systems owned by the
Venture. The limited partners' portion of net proceeds from the sale
(approximately $95,134,890, or approximately $1,714 for each $1,000 invested
in the Partnership) will be distributed to the limited partners shortly after
closing. The Partnership will retain its interest in the Venture.
For the six months ended June 30, 1995, the Partnership generated net
cash from operating activities totaling $4,019,324, which was available to fund
capital expenditures and debt principal repayments. During the first six
months of 1995, capital expenditures totaled approximately $2,191,000 in the
Augusta System. Approximately 36 percent of these expenditures related to the
construction of service drops to subscribers' homes. Approximately 13 percent
of these expenditures related to the construction of new cable plant. The
remaining expenditures were used for various system enhancements. Such
expenditures were funded by cash generated from operations. Expected capital
additions for the remainder of 1995 total approximately $2,293,000.
Approximately 24 percent of the anticipated capital expenditures are for new
plant extensions. Approximately 22 percent will be for the construction of
service drops to subscriber's homes. The remainder of the anticipated capital
expenditures will be used for various enhancements in the Augusta System.
Funding for these expenditures is expected to be provided by cash on hand and
cash generated from operations. Depending upon the timing of the closing of the
sale of the Augusta System to the General Partner discussed above, the
Partnership will make only that portion of the budgeted capital expenditures
scheduled to be made until such closing.
The balance outstanding on the Partnership's credit facility as of
June 30, 1995 was $37,284,375. In December 1994, the General Partner
refinanced the Partnership's credit facility to extend the life of the term
loan to December 31, 1999. The term loan will continue to be payable in
consecutive quarterly installments. The Partnership repaid $2,485,625 during
the first six months of 1995. Installments due during the remainder of 1995
total $2,485,625 and will be paid from cash on hand and cash generated from
operations. Interest on this agreement is at the Partnership's option of the
base rate plus 1/2 percent, where base rate is defined as the greater of the
Prime Rate or the Federal Funds Rate plus 1/2 percent, or the CD rate plus
1-5/8 percent or the London Interbank Offered Rate plus 1-1/2 percent. The
effective interest rates on outstanding obligations as of June 30, 1995 and
1994 were 8.01 percent and 5.86 percent, respectively. This loan is expected
to be repaid in full upon closing of the sale of the Augusta System to the
General Partner.
The General Partner believes that cash flows from operations will be
sufficient to fund capital expenditures and other liquidity needs of the
Partnership.
The Venture
In addition to the Augusta System, which is 100 percent owned, the
Partnership owns an approximate 9 percent interest in Cable TV Fund 12-BCD
Venture (the "Venture"). The Partnership's investment in the Venture,
accounted for
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<PAGE> 11
under the equity method, decreased by $574,958 during the six months ended June
30, 1995. This decrease represents the Partnership's proportionate share of
losses generated by the Venture. These losses are expected to continue during
the remainder of 1995.
For the six months ended June 30, 1995, the Venture generated net cash
from operating activities totaling $8,458,494, which is available to fund
capital expenditures and non-operating costs. Capital expenditures for the
Venture totaled approximately $10,274,000 during the first six months of 1995.
These capital additions were funded by cash generated from operations,
borrowings from the Venture's credit facility, and advances from the General
Partner. Service drops to homes accounted for approximately 36 percent of the
first six months capital expenditures and approximately 25 percent were for the
upgrade of the Albuquerque system. The remaining expenditures related to
various system enhancements in all of the Venture's systems. Expected capital
expenditures for the remainder of 1995 are approximately $6,690,000. Service
drops to homes are anticipated to account for approximately 39 percent of the
expected expenditures. The upgrade of cable television plant in the
Albuquerque system is expected to account for approximately 27 percent of the
capital additions. The remainder of the expenditures relates to various system
enhancements in all of the Venture's systems. Funding for these expenditures
is expected to be provided by cash generated from operations and, if necessary,
in its discretion, advances from the General Partner.
In August 1995, the Venture entered into a purchase and sale agreement
pursuant to which it agreed to sell the Tampa, Florida system (the "Tampa
System") to the General Partner for a sales price of $110,395,667, subject to
working capital adjustments. This price is the average of three separate,
independent appraisals of the fair market value of the Tampa System. Closing
of the sale is expected to occur before the end of 1995. The Venture's
current debt arrangements do not allow the Venture to make distributions. The
General Partner will attempt to rengegotiate the Venture's credit arrangements
to allow for distributions. There is no assurance such refinancing can be
completed. If the refinancing is successfully completed, the Venture expects
to distribute approximately $3,800,000 to the Partnership, which the
Partnership in turn will distribute to its limited partners, giving the
Partnership's limited partners an approximate return of $68 for each $1,000
invested in the Partnership. This amount is in addition to the $1,714 for each
$1,000 invested in the Partnership to be returned to the limited partners from
the Augusta System sale. Because the Tampa System does not constitute all or
substantially all of the Venture's assets, no vote of the limited partners of
the Partnership is required in connection with this transaction.
The Venture's debt arrangements consist of $93,000,000 of Senior Notes
placed with a group of institutional lenders and an $87,000,000 credit
agreement with a group of commercial bank lenders. The Venture intends to
renegotiate its credit facilities to allow for distributions to the limited
partners of the Venture's constituent partners of a portion of the Tampa System
sales proceeds.
The Senior Notes have a fixed interest rate of 8.64 percent and a
maturity date of March 31, 2000. The Senior Notes call for interest only
payments through March 1996, with interest and accelerating amortization of
principal payments for the next four years. Interest is payable semi-annually.
The Senior Notes carry a "make-whole" premium, which is a prepayment penalty
that protects the lenders in the event that prepaid funds are reinvested at a
rate below 8.64 percent.
The balance outstanding on the credit agreement at June 30, 1995 was
the full $87,000,000. Under the terms of this credit facility, the loan will
convert to a term loan on March 31, 1996 with quarterly installments beginning
June 30, 1996 and a final payment due March 31, 2000. Interest is at the
Venture's option of LIBOR plus 1.25 percent to 1.75 percent, the CD rate plus
1.375 percent to 1.875 percent or the Base Rate plus 0 percent to .50 percent.
The effective interest rates on amounts outstanding on the Venture's term
credit facility as of June 30, 1995 and 1994 were 8.32 percent and 7.44
percent, respectively.
Both lending facilities are equal in standing with the other, and both
are equally secured by the assets of the Venture.
The General Partner presently believes that cash flows from operations
and, in its discretion, advances from the General Partner, will be sufficient
to fund capital expenditures and other liquidity needs of the Venture until the
refinancing of the debt arrangements and the closing of the sale of the Tampa
System.
11
<PAGE> 12
RESULTS OF OPERATIONS
The Partnership
Revenues in the Augusta system increased $590,658, or approximately 9
percent, to $7,371,663 in the three month period ended June 30, 1995 from
$6,781,005 for the similar 1994 period. Revenues increased $957,540, or
approximately 7 percent, to $14,363,321 in the first six months of 1995 from
$13,405,781 in the comparable period of 1994. Basic subscribers increased
1,733, or approximately 3 percent, to 66,972 at June 30, 1995 from 65,239 at
June 30, 1994. This increase in basic subscribers accounted for approximately
20 percent and 26 percent, respectively, of the three and six month increases
in revenue. Basic service rate adjustments accounted for approximately 43
percent of both the three and six month increases in revenue. No other
individual factor was 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 increased $54,524, or approximately 2 percent, to
$3,541,632 for the three month period ended June 30, 1995 to $3,487,108 for the
similar 1994 period. Operating expenses increased $356,440, or approximately 5
percent, to $7,242,064 for the six month period ended June 30, 1995 from
$6,885,624 for the comparable 1994 period. Operating expenses represented 48
and 51 percent, respectively, of revenue for the three month periods ended June
30, 1995 and 1994. For the six month periods ended June 30, 1995 and 1994,
operating expenses represented 50 percent and 51 percent, respectively, of
revenue. Increases in programming fees were primarily responsible for the
three and six month increases in operating expenses. No other individual
factors contributed significantly to the increases.
Management fees and allocated overhead from the General Partner
increased $1,203, or less than 1 percent, to $849,145 for the three month
period ended June 30, 1995 from $847,942 for the similar 1994 period.
Management fees and allocated overhead from the General Partner increased
$35,783, or approximately 2 percent, to $1,719,157 for the six month period
ended June 30, 1995 from $1,683,374 for the similar 1994 period. These
increases were due to an increase in revenues, upon which such fees and
allocations are based.
Depreciation and amortization expense for the three month periods
increased $150,463, or approximately 6 percent, to $2,482,527 in 1995 from
$2,332,064 in 1994. For the six month periods, depreciation and amortization
increased $300,835, or approximately 6 percent, to $4,970,636 in 1995 from
$4,669,801 in 1994. These increases were due to capital additions during 1994
and 1995.
Operating income increased $384,468, to $498,359 for the three month
period ended June 30, 1995 from $113,891 for the comparable 1994 period.
Operating income increased $264,482, to $431,464 for the six month period ended
June 30, 1995 from $166,982 for the comparable 1994 period. These increases
are 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 increased $534,931, or approximately 22 percent, to $2,980,886
for the three month period ended June 30, 1995 from $2,445,955 for the
comparable 1994 period. Operating income before depreciation and amortization
increased $565,317, or approximately 12 percent, to $5,402,100 for the six
month period ended June 30, 1995 from $4,836,783 for the comparable 1994
period. These increases for the three and six month periods were due to the
increases in revenue exceeding the increases in operating expenses and
management fees and allocated overhead from the General Partner.
Interest expense increased $180,317, or approximately 30 percent, to
$780,303 from $599,986 for the three month periods ended June 30, 1995 and
1994, respectively. This increase is due primarily to higher interest rates on
interest bearing obligations. Interest expense increased $407,747, or
approximately 35 percent, to $1,566,347 from $1,158,600 for the six month
periods ended June 30, 1995 as compared to 1994, due to higher interest rates
on interest bearing obligations. Loss before equity in net loss of cable
television joint venture decreased $257,085 to $240,553 for the three months
ended June 30, 1995 compared to 1994, due to the increase in operating income.
Loss before equity in net loss of cable television joint venture increased
$70,779, to $1,039,692 for the six month period ended June 30, 1995 from
$968,913 for the comparable 1994 period, due primarily to the increase in
interest expense.
12
<PAGE> 13
The Venture
In addition to the Augusta, Georgia system, which is 100 percent owned
by the Partnership, the Partnership owns an approximate 9 percent interest in
the Venture.
Revenues in the Venture's systems totaled $25,395,190 for the three
months ended June 30, 1995 compared to $23,239,439 for the three months ended
June 30, 1994, an increase of $2,155,751, or approximately 9 percent. For the
six month periods ended June 30, revenues totaled $49,553,282 in 1995 compared
to $45,646,691 in 1994, an increase of $3,906,591, or approximately 9 percent.
Since June 30, 1994, the Venture has added 13,418 basic subscribers
representing an increase of approximately 6 percent. Basic subscribers
increased to 232,766 at June 30, 1995 from 219,348 at June 30, 1994. This
increase in the subscriber base accounted for approximately 46 and 50 percent,
respectively, of the three and six month increases in revenues. Basic service
rate adjustments primarily accounted for the remainder of the increases for the
three and six month periods. No other single factor significantly affected the
increases 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 Venture's systems totaled $14,568,494 for
the three months ended June 30, 1995 compared to $13,998,347 for the similar
1994 period, an increase of $570,147, or approximately 4 percent. For the six
month periods ended June 30, operating expenses totaled $28,657,322 in 1995
compared to $27,357,147 in 1994, an increase of $1,300,175, or approximately 5
percent. Operating expenses represented 57 percent and 58 percent of revenues
for the three and six months ended June 30, 1995, respectively, compared to 60
percent for the three and six months ended June 30, 1994. Increased
programming costs primarily accounted for the increases in operating expenses
for the three and six month periods ended June 30, 1995. No other individual
factor contributed significantly to the increases in operating expenses.
Management fees and allocated overhead from the General Partner
totaled $2,925,500 for the three months ended June 30, 1995 compared to
$2,859,309 for the similar 1994 period, an increase of $66,191, or
approximately 2 percent. For the six month periods ended June 30, management
fees and allocated overhead from the General Partner totaled $5,958,559 in 1995
compared to $5,696,307 in 1994, an increase of $262,252, or approximately 5
percent. These increases were primarily due to the increases in revenues, upon
which such fees and allocations are based.
Depreciation and amortization expense totaled $6,680,382 for the
quarter ended June 30, 1995 compared to $6,106,215 for the quarter ended June
30, 1994, an increase of $574,167, or approximately 9 percent. For the six
month periods ended June 30, depreciation and amortization totaled $13,364,381
in 1995 compared to $12,533,322 in 1994, an increase of $831,059, or
approximately 7 percent. These increases were due primarily to capital
additions during 1994.
The Venture reported operating income of $1,220,814 for the three
month period ended June 30, 1995 compared to operating income of $275,569 for
the similar 1994 period, an increase of $945,245. For the six month periods
ended June 30, the Venture's operating income totaled $1,573,020 in 1995
compared to $59,915 in 1994, an increase of $1,513,105. These increases were
due to the increases in revenues exceeding the increases in operating expenses,
management fees and allocated overhead expenses from the General Partner and
depreciation and amortization expense. Operating income before depreciation
and amortization totaled $7,901,196 for the quarter ended June 30, 1995
compared to $6,381,784 for the similar 1994 period, an increase of $1,519,412,
or approximately 24 percent. For the six month periods ended June 30,
operating income before depreciation and amortization totaled $14,937,401 in
1995 compared to $12,593,237 in 1994, an increase of $2,344,164, or
approximately 19 percent. These increases were due to the increases in
revenues exceeding the increases in operating expenses and management fees and
allocated overhead from the General Partner.
Interest expense totaled $3,970,481 for the three months ended June
30, 1995 compared to $3,294,996 for the similar 1994 period, an increase of
$675,485, or approximately 21 percent . For the six month periods ended June
30, interest expense totaled $7,915,623 in 1995 compared to $6,316,338 in 1994,
an increase of $1,599,285, or approximately 25 percent. These increases were
due primarily to higher balances on interest bearing obligations and higher
effective interest rates.
13
<PAGE> 14
Net loss decreased $311,539, or approximately 13 percent to $2,026,975,
from $2,338,514 for the three months ended June 30, 1995 and 1994,
respectively. For the six month periods ended June 30, net loss totaled
$4,731,312 in 1995 compared to $4,795,105 in 1994, a decrease of $63,793, or
approximately 1 percent. These losses were due to the factors discussed above
and are expected to continue.
14
<PAGE> 15
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
15
<PAGE> 16
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 12-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
16
<PAGE> 17
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> 3,065,467
<SECURITIES> 0
<RECEIVABLES> 969,036
<ALLOWANCES> (88,960)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 80,694,063
<DEPRECIATION> (41,021,198)
<TOTAL-ASSETS> 54,516,160
<CURRENT-LIABILITIES> 1,347,868
<BONDS> 37,413,222
<COMMON> 0
0
0
<OTHER-SE> 16,075,368
<TOTAL-LIABILITY-AND-EQUITY> 54,516,160
<SALES> 0
<TOTAL-REVENUES> 14,363,321
<CGS> 0
<TOTAL-COSTS> 13,931,857
<OTHER-EXPENSES> 95,191
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,566,347
<INCOME-PRETAX> (1,614,650)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,614,650)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,614,650)
<EPS-PRIMARY> (14.39)
<EPS-DILUTED> (14.39)
</TABLE>